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: 7/31/23
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ITEM 1. REPORTS TO STOCKHOLDERS.
The Registrant prepared the following annual reports to shareholders for the period ended July 31, 2023:
•Fundamental All Cap Core Fund
•Multi-Asset Absolute Return Fund
United States and Europe
Manulife Investment Management
John Hancock Investment Management
ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL ALL CAP CORE FUND | 1 |
2 | JOHN HANCOCK FUNDAMENTAL ALL CAP CORE FUND | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL ALL CAP CORE FUND | 3 |
TOP 10 HOLDINGS AS OF 7/31/2023 (% of net assets) | |
Amazon.com, Inc. | 7.4 |
Alphabet, Inc., Class A | 5.8 |
Apple, Inc. | 4.5 |
Lennar Corp., A Shares | 4.1 |
Salesforce, Inc. | 4.0 |
NVIDIA Corp. | 3.8 |
KKR & Company, Inc. | 3.8 |
First Hawaiian, Inc. | 3.6 |
The Goldman Sachs Group, Inc. | 3.5 |
Analog Devices, Inc. | 3.5 |
TOTAL | 44.0 |
Cash and cash equivalents are not included. |
4 | JOHN HANCOCK FUNDAMENTAL ALL CAP CORE FUND | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL ALL CAP CORE 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 | 8.30 | 10.93 | 12.02 | 67.96 | 211.12 |
Class C1 | 12.19 | 11.29 | 11.89 | 70.73 | 207.47 |
Class I2 | 14.33 | 12.40 | 12.95 | 79.39 | 237.90 |
Class R21,2 | 13.89 | 11.96 | 12.58 | 75.92 | 227.09 |
Class R41,2 | 14.28 | 12.34 | 12.82 | 78.92 | 234.08 |
Class R61,2 | 14.44 | 12.52 | 12.98 | 80.37 | 238.87 |
Index† | 12.65 | 11.45 | 12.14 | 71.93 | 214.35 |
Class A | Class C | Class I | Class R2 | Class R4 | Class R6 | |
Gross (%) | 1.23 | 1.93 | 0.93 | 1.33 | 1.18 | 0.82 |
Net (%) | 1.12 | 1.82 | 0.83 | 1.22 | 0.97 | 0.72 |
6 | JOHN HANCOCK FUNDAMENTAL ALL CAP CORE FUND | ANNUAL REPORT |
Start date | With maximum sales charge ($) | Without sales charge ($) | Index ($) | |
Class C1,3 | 7-31-13 | 30,747 | 30,747 | 31,435 |
Class I2 | 7-31-13 | 33,790 | 33,790 | 31,435 |
Class R21,2 | 7-31-13 | 32,709 | 32,709 | 31,435 |
Class R41,2 | 7-31-13 | 33,408 | 33,408 | 31,435 |
Class R61,2 | 7-31-13 | 33,887 | 33,887 | 31,435 |
1 | 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 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 prospectus. |
3 | The contingent deferred sales charge is not applicable. |
ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL ALL CAP CORE FUND | 7 |
8 | JOHN HANCOCK FUNDAMENTAL ALL CAP CORE FUND | ANNUAL REPORT |
Account value on 2-1-2023 | Ending value on 7-31-2023 | Expenses paid during period ended 7-31-20231 | Annualized expense ratio | ||
Class A | Actual expenses/actual returns | $1,000.00 | $1,121.50 | $5.94 | 1.13% |
Hypothetical example | 1,000.00 | 1,019.20 | 5.66 | 1.13% | |
Class C | Actual expenses/actual returns | 1,000.00 | 1,117.50 | 9.61 | 1.83% |
Hypothetical example | 1,000.00 | 1,015.70 | 9.15 | 1.83% | |
Class I | Actual expenses/actual returns | 1,000.00 | 1,122.80 | 4.37 | 0.83% |
Hypothetical example | 1,000.00 | 1,020.70 | 4.16 | 0.83% | |
Class R2 | Actual expenses/actual returns | 1,000.00 | 1,120.60 | 6.36 | 1.21% |
Hypothetical example | 1,000.00 | 1,018.80 | 6.06 | 1.21% | |
Class R4 | Actual expenses/actual returns | 1,000.00 | 1,122.60 | 4.68 | 0.89% |
Hypothetical example | 1,000.00 | 1,020.40 | 4.46 | 0.89% | |
Class R6 | Actual expenses/actual returns | 1,000.00 | 1,123.60 | 3.79 | 0.72% |
Hypothetical example | 1,000.00 | 1,021.20 | 3.61 | 0.72% |
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 FUNDAMENTAL ALL CAP CORE FUND | 9 |
Shares | Value | ||||
Common stocks 98.5% | $314,134,179 | ||||
(Cost $250,271,179) | |||||
Communication services 10.9% | 34,743,240 | ||||
Entertainment 4.1% | |||||
Atlanta Braves Holdings, Inc., Series C (A) | 3,560 | 144,963 | |||
Liberty Media Corp.-Liberty Formula One, Series C (A) | 122,951 | 8,926,243 | |||
Warner Brothers Discovery, Inc. (A) | 317,155 | 4,145,216 | |||
Interactive media and services 6.8% | |||||
Alphabet, Inc., Class A (A) | 138,457 | 18,376,013 | |||
CarGurus, Inc. (A) | 139,047 | 3,150,805 | |||
Consumer discretionary 21.2% | 67,492,751 | ||||
Broadline retail 7.4% | |||||
Amazon.com, Inc. (A) | 176,051 | 23,534,498 | |||
Household durables 5.2% | |||||
Lennar Corp., A Shares | 103,970 | 13,186,515 | |||
NVR, Inc. (A) | 540 | 3,405,478 | |||
Leisure products 2.5% | |||||
Polaris, Inc. | 58,338 | 7,924,634 | |||
Specialty retail 4.1% | |||||
Dufry AG (A) | 102,058 | 5,273,179 | |||
Group 1 Automotive, Inc. | 30,097 | 7,780,977 | |||
Textiles, apparel and luxury goods 2.0% | |||||
Canada Goose Holdings, Inc. (A) | 246,069 | 4,488,299 | |||
Salvatore Ferragamo SpA | 116,617 | 1,899,171 | |||
Consumer staples 4.9% | 15,495,060 | ||||
Beverages 1.8% | |||||
Anheuser-Busch InBev SA/NV, ADR | 102,881 | 5,895,081 | |||
Consumer staples distribution and retail 1.2% | |||||
Walmart, Inc. | 24,061 | 3,846,391 | |||
Food products 0.8% | |||||
The Hain Celestial Group, Inc. (A) | 188,501 | 2,388,308 | |||
Personal care products 1.1% | |||||
BellRing Brands, Inc. (A) | 93,610 | 3,365,280 | |||
Energy 4.5% | 14,278,279 | ||||
Oil, gas and consumable fuels 4.5% | |||||
Cheniere Energy, Inc. | 58,970 | 9,544,884 | |||
Suncor Energy, Inc. | 151,275 | 4,733,395 |
10 | JOHN HANCOCK FUNDAMENTAL ALL CAP CORE FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Shares | Value | ||||
Financials 16.1% | $51,353,767 | ||||
Banks 3.6% | |||||
First Hawaiian, Inc. | 555,992 | 11,503,474 | |||
Capital markets 12.5% | |||||
KKR & Company, Inc. | 202,718 | 12,037,395 | |||
Morgan Stanley | 116,291 | 10,647,604 | |||
S&P Global, Inc. | 14,982 | 5,910,549 | |||
The Goldman Sachs Group, Inc. | 31,626 | 11,254,745 | |||
Health care 5.3% | 17,019,496 | ||||
Biotechnology 1.5% | |||||
Alnylam Pharmaceuticals, Inc. (A) | 9,081 | 1,774,427 | |||
Moderna, Inc. (A) | 27,140 | 3,193,292 | |||
Health care equipment and supplies 0.7% | |||||
Hologic, Inc. (A) | 28,008 | 2,224,395 | |||
Health care providers and services 1.8% | |||||
Elevance Health, Inc. | 12,154 | 5,732,191 | |||
Life sciences tools and services 0.8% | |||||
Thermo Fisher Scientific, Inc. | 4,420 | 2,425,077 | |||
Pharmaceuticals 0.5% | |||||
Elanco Animal Health, Inc. (A) | 138,369 | 1,670,114 | |||
Industrials 4.8% | 15,363,167 | ||||
Electrical equipment 1.3% | |||||
Regal Rexnord Corp. | 17,391 | 2,716,126 | |||
Sensata Technologies Holding PLC | 34,137 | 1,442,288 | |||
Machinery 1.6% | |||||
Parker-Hannifin Corp. | 12,292 | 5,039,843 | |||
Trading companies and distributors 1.9% | |||||
United Rentals, Inc. | 13,267 | 6,164,910 | |||
Information technology 25.7% | 81,870,014 | ||||
Electronic equipment, instruments and components 0.8% | |||||
CDW Corp. | 14,113 | 2,640,119 | |||
Semiconductors and semiconductor equipment 7.3% | |||||
Analog Devices, Inc. | 56,237 | 11,220,969 | |||
NVIDIA Corp. | 26,004 | 12,151,409 | |||
Software 13.1% | |||||
Autodesk, Inc. (A) | 19,772 | 4,191,466 | |||
Microsoft Corp. | 10,487 | 3,522,793 | |||
Oracle Corp. | 49,784 | 5,836,178 | |||
Roper Technologies, Inc. | 10,342 | 5,099,123 | |||
Salesforce, Inc. (A) | 56,722 | 12,763,017 | |||
Workday, Inc., Class A (A) | 42,822 | 10,154,381 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL ALL CAP CORE FUND | 11 |
Shares | Value | ||||
Information technology (continued) | |||||
Technology hardware, storage and peripherals 4.5% | |||||
Apple, Inc. | 72,744 | $14,290,559 | |||
Materials 1.2% | 3,893,504 | ||||
Chemicals 1.2% | |||||
Axalta Coating Systems, Ltd. (A) | 121,672 | 3,893,504 | |||
Real estate 3.9% | 12,624,901 | ||||
Real estate management and development 0.2% | |||||
Five Point Holdings LLC, Class A (A) | 255,587 | 881,775 | |||
Specialized REITs 3.7% | |||||
American Tower Corp. | 5,089 | 968,488 | |||
Crown Castle, Inc. | 99,498 | 10,774,638 | |||
Yield (%) | Shares | Value | |||
Short-term investments 1.5% | $4,811,553 | ||||
(Cost $4,811,410) | |||||
Short-term funds 1.5% | 4,811,553 | ||||
John Hancock Collateral Trust (B) | 5.2927(C) | 481,396 | 4,811,553 |
Total investments (Cost $255,082,589) 100.0% | $318,945,732 | ||||
Other assets and liabilities, net (0.0%) | (71,420) | ||||
Total net assets 100.0% | $318,874,312 |
The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund. | |
Security Abbreviations and Legend | |
ADR | American Depositary Receipt |
(A) | Non-income producing security. |
(B) | Investment is an affiliate of the fund, the advisor and/or subadvisor. |
(C) | The rate shown is the annualized seven-day yield as of 7-31-23. |
12 | JOHN HANCOCK FUNDAMENTAL ALL CAP CORE FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Assets | |
Unaffiliated investments, at value (Cost $250,271,179) | $314,134,179 |
Affiliated investments, at value (Cost $4,811,410) | 4,811,553 |
Total investments, at value (Cost $255,082,589) | 318,945,732 |
Dividends receivable | 114,392 |
Receivable for fund shares sold | 894,732 |
Receivable from affiliates | 25,106 |
Other assets | 65,274 |
Total assets | 320,045,236 |
Liabilities | |
Payable for investments purchased | 629,383 |
Payable for fund shares repurchased | 373,375 |
Payable to affiliates | |
Accounting and legal services fees | 21,402 |
Transfer agent fees | 24,710 |
Distribution and service fees | 32 |
Trustees’ fees | 376 |
Other liabilities and accrued expenses | 121,646 |
Total liabilities | 1,170,924 |
Net assets | $318,874,312 |
Net assets consist of | |
Paid-in capital | $271,310,021 |
Total distributable earnings (loss) | 47,564,291 |
Net assets | $318,874,312 |
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 ($111,549,305 ÷ 3,925,315 shares)1 | $28.42 |
Class C ($11,815,910 ÷ 445,274 shares)1 | $26.54 |
Class I ($123,290,593 ÷ 4,213,629 shares) | $29.26 |
Class R2 ($144,883 ÷ 5,080 shares) | $28.52 |
Class R4 ($93,255 ÷ 3,204 shares) | $29.11 |
Class R6 ($71,980,366 ÷ 2,444,144 shares) | $29.45 |
Maximum offering price per share | |
Class A (net asset value per share ÷ 95%)2 | $29.92 |
1 | Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. |
2 | On single retail sales of less than $50,000. On sales of $50,000 or more and on group sales the offering price is reduced. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL ALL CAP CORE FUND | 13 |
Investment income | |
Dividends | $2,795,148 |
Dividends from affiliated investments | 252,657 |
Less foreign taxes withheld | (46,320) |
Total investment income | 3,001,485 |
Expenses | |
Investment management fees | 1,798,819 |
Distribution and service fees | 383,990 |
Accounting and legal services fees | 56,774 |
Transfer agent fees | 244,774 |
Trustees’ fees | 6,362 |
Custodian fees | 56,011 |
State registration fees | 128,398 |
Printing and postage | 31,251 |
Professional fees | 101,857 |
Other | 22,156 |
Total expenses | 2,830,392 |
Less expense reductions | (309,393) |
Net expenses | 2,520,999 |
Net investment income | 480,486 |
Realized and unrealized gain (loss) | |
Net realized gain (loss) on | |
Unaffiliated investments and foreign currency transactions | (16,027,017) |
Affiliated investments | 4,927 |
(16,022,090) | |
Change in net unrealized appreciation (depreciation) of | |
Unaffiliated investments | 49,847,355 |
Affiliated investments | 143 |
49,847,498 | |
Net realized and unrealized gain | 33,825,408 |
Increase in net assets from operations | $34,305,894 |
14 | JOHN HANCOCK FUNDAMENTAL ALL CAP CORE FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Year ended 7-31-23 | Year ended 7-31-22 | |
Increase (decrease) in net assets | ||
From operations | ||
Net investment income (loss) | $480,486 | $(86,189) |
Net realized gain (loss) | (16,022,090) | 15,174,847 |
Change in net unrealized appreciation (depreciation) | 49,847,498 | (47,210,741) |
Increase (decrease) in net assets resulting from operations | 34,305,894 | (32,122,083) |
Distributions to shareholders | ||
From earnings | ||
Class A | (4,240,407) | (3,040,461) |
Class C | (479,220) | (345,989) |
Class I | (3,616,165) | (2,478,858) |
Class R2 | (5,547) | (4,751) |
Class R4 | (3,639) | (3,183) |
Class R6 | (2,682,185) | (1,440,091) |
Total distributions | (11,027,163) | (7,313,333) |
From fund share transactions | 14,058,030 | 177,119,763 |
Total increase | 37,336,761 | 137,684,347 |
Net assets | ||
Beginning of year | 281,537,551 | 143,853,204 |
End of year | $318,874,312 | $281,537,551 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL ALL CAP CORE FUND | 15 |
CLASS A SHARES Period ended | 7-31-23 | 7-31-22 | 7-31-21 | 7-31-20 | 7-31-19 |
Per share operating performance | |||||
Net asset value, beginning of period | $26.23 | $29.93 | $21.48 | $18.51 | $19.84 |
Net investment loss1 | —2 | (0.06) | (0.10) | (0.02) | —2 |
Net realized and unrealized gain (loss) on investments | 3.36 | (2.58) | 9.29 | 2.99 | 0.12 |
Total from investment operations | 3.36 | (2.64) | 9.19 | 2.97 | 0.12 |
Less distributions | |||||
From net investment income | — | — | — | —2 | — |
From net realized gain | (1.17) | (1.06) | (0.74) | — | (1.45) |
Total distributions | (1.17) | (1.06) | (0.74) | —2 | (1.45) |
Net asset value, end of period | $28.42 | $26.23 | $29.93 | $21.48 | $18.51 |
Total return (%)3,4 | 14.00 | (9.29) | 43.58 | 16.05 | 2.60 |
Ratios and supplemental data | |||||
Net assets, end of period (in millions) | $112 | $91 | $74 | $53 | $49 |
Ratios (as a percentage of average net assets): | |||||
Expenses before reductions | 1.24 | 1.23 | 1.31 | 1.40 | 1.36 |
Expenses including reductions | 1.13 | 1.12 | 1.24 | 1.27 | 1.28 |
Net investment income (loss) | —5 | (0.21) | (0.39) | (0.11) | 0.01 |
Portfolio turnover (%) | 36 | 25 | 18 | 22 | 21 |
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 | Less than 0.005%. |
16 | JOHN HANCOCK FUNDAMENTAL ALL CAP CORE FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS C SHARES Period ended | 7-31-23 | 7-31-22 | 7-31-21 | 7-31-20 | 7-31-19 |
Per share operating performance | |||||
Net asset value, beginning of period | $24.75 | $28.48 | $20.62 | $17.89 | $19.36 |
Net investment loss1 | (0.17) | (0.24) | (0.27) | (0.15) | (0.12) |
Net realized and unrealized gain (loss) on investments | 3.13 | (2.43) | 8.87 | 2.88 | 0.10 |
Total from investment operations | 2.96 | (2.67) | 8.60 | 2.73 | (0.02) |
Less distributions | |||||
From net realized gain | (1.17) | (1.06) | (0.74) | — | (1.45) |
Net asset value, end of period | $26.54 | $24.75 | $28.48 | $20.62 | $17.89 |
Total return (%)2,3 | 13.19 | (9.88) | 42.51 | 15.26 | 1.90 |
Ratios and supplemental data | |||||
Net assets, end of period (in millions) | $12 | $10 | $8 | $6 | $6 |
Ratios (as a percentage of average net assets): | |||||
Expenses before reductions | 1.94 | 1.93 | 2.01 | 2.10 | 2.06 |
Expenses including reductions | 1.83 | 1.82 | 1.94 | 1.97 | 1.98 |
Net investment loss | (0.71) | (0.91) | (1.09) | (0.81) | (0.69) |
Portfolio turnover (%) | 36 | 25 | 18 | 22 | 21 |
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. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL ALL CAP CORE FUND | 17 |
CLASS I SHARES Period ended | 7-31-23 | 7-31-22 | 7-31-21 | 7-31-20 | 7-31-19 |
Per share operating performance | |||||
Net asset value, beginning of period | $26.89 | $30.56 | $21.86 | $18.82 | $20.08 |
Net investment income (loss)1 | 0.08 | 0.03 | (0.03) | 0.04 | 0.06 |
Net realized and unrealized gain (loss) on investments | 3.46 | (2.64) | 9.47 | 3.03 | 0.13 |
Total from investment operations | 3.54 | (2.61) | 9.44 | 3.07 | 0.19 |
Less distributions | |||||
From net investment income | — | — | — | (0.03) | — |
From net realized gain | (1.17) | (1.06) | (0.74) | — | (1.45) |
Total distributions | (1.17) | (1.06) | (0.74) | (0.03) | (1.45) |
Net asset value, end of period | $29.26 | $26.89 | $30.56 | $21.86 | $18.82 |
Total return (%)2 | 14.33 | (9.00) | 43.97 | 16.34 | 2.94 |
Ratios and supplemental data | |||||
Net assets, end of period (in millions) | $123 | $120 | $38 | $18 | $20 |
Ratios (as a percentage of average net assets): | |||||
Expenses before reductions | 0.94 | 0.93 | 1.01 | 1.10 | 1.08 |
Expenses including reductions | 0.83 | 0.83 | 0.94 | 0.97 | 0.99 |
Net investment income (loss) | 0.31 | 0.10 | (0.10) | 0.19 | 0.31 |
Portfolio turnover (%) | 36 | 25 | 18 | 22 | 21 |
1 | Based on average daily shares outstanding. |
2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
18 | JOHN HANCOCK FUNDAMENTAL ALL CAP CORE FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS R2 SHARES Period ended | 7-31-23 | 7-31-22 | 7-31-21 | 7-31-20 | 7-31-19 |
Per share operating performance | |||||
Net asset value, beginning of period | $26.34 | $30.07 | $21.61 | $18.64 | $19.98 |
Net investment loss1 | (0.02) | (0.09) | (0.13) | (0.04) | — |
Net realized and unrealized gain (loss) on investments | 3.37 | (2.58) | 9.33 | 3.01 | 0.11 |
Total from investment operations | 3.35 | (2.67) | 9.20 | 2.97 | 0.11 |
Less distributions | |||||
From net realized gain | (1.17) | (1.06) | (0.74) | — | (1.45) |
Net asset value, end of period | $28.52 | $26.34 | $30.07 | $21.61 | $18.64 |
Total return (%)2 | 13.89 | (9.35) | 43.35 | 15.93 | 2.53 |
Ratios and supplemental data | |||||
Net assets, end of period (in millions) | $—3 | $—3 | $—3 | $—3 | $—3 |
Ratios (as a percentage of average net assets): | |||||
Expenses before reductions | 1.33 | 1.32 | 1.40 | 1.49 | 1.46 |
Expenses including reductions | 1.21 | 1.21 | 1.34 | 1.36 | 1.38 |
Net investment loss | (0.09) | (0.30) | (0.49) | (0.21) | — |
Portfolio turnover (%) | 36 | 25 | 18 | 22 | 21 |
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. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL ALL CAP CORE FUND | 19 |
CLASS R4 SHARES Period ended | 7-31-23 | 7-31-22 | 7-31-21 | 7-31-20 | 7-31-19 |
Per share operating performance | |||||
Net asset value, beginning of period | $26.77 | $30.45 | $21.79 | $18.75 | $20.03 |
Net investment income (loss)1 | 0.06 | 0.01 | (0.03) | 0.01 | 0.03 |
Net realized and unrealized gain (loss) on investments | 3.45 | (2.63) | 9.43 | 3.05 | 0.14 |
Total from investment operations | 3.51 | (2.62) | 9.40 | 3.06 | 0.17 |
Less distributions | |||||
From net investment income | — | — | — | (0.02) | — |
From net realized gain | (1.17) | (1.06) | (0.74) | — | (1.45) |
Total distributions | (1.17) | (1.06) | (0.74) | (0.02) | (1.45) |
Net asset value, end of period | $29.11 | $26.77 | $30.45 | $21.79 | $18.75 |
Total return (%)2 | 14.28 | (9.06) | 43.92 | 16.32 | 2.84 |
Ratios and supplemental data | |||||
Net assets, end of period (in millions) | $—3 | $—3 | $—3 | $—3 | $—3 |
Ratios (as a percentage of average net assets): | |||||
Expenses before reductions | 1.11 | 1.08 | 1.15 | 1.24 | 1.31 |
Expenses including reductions | 0.89 | 0.87 | 0.99 | 1.00 | 1.13 |
Net investment income (loss) | 0.23 | 0.04 | (0.13) | 0.06 | 0.15 |
Portfolio turnover (%) | 36 | 25 | 18 | 22 | 21 |
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. |
20 | JOHN HANCOCK FUNDAMENTAL ALL CAP CORE FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS R6 SHARES Period ended | 7-31-23 | 7-31-22 | 7-31-21 | 7-31-20 | 7-31-19 |
Per share operating performance | |||||
Net asset value, beginning of period | $27.03 | $30.68 | $21.92 | $18.86 | $20.10 |
Net investment income1 | 0.10 | 0.06 | —2 | 0.06 | 0.07 |
Net realized and unrealized gain (loss) on investments | 3.49 | (2.65) | 9.50 | 3.05 | 0.14 |
Total from investment operations | 3.59 | (2.59) | 9.50 | 3.11 | 0.21 |
Less distributions | |||||
From net investment income | — | — | — | (0.05) | — |
From net realized gain | (1.17) | (1.06) | (0.74) | — | (1.45) |
Total distributions | (1.17) | (1.06) | (0.74) | (0.05) | (1.45) |
Net asset value, end of period | $29.45 | $27.03 | $30.68 | $21.92 | $18.86 |
Total return (%)3 | 14.44 | (8.90) | 44.12 | 16.49 | 3.04 |
Ratios and supplemental data | |||||
Net assets, end of period (in millions) | $72 | $61 | $24 | $16 | $14 |
Ratios (as a percentage of average net assets): | |||||
Expenses before reductions | 0.83 | 0.82 | 0.90 | 0.99 | 0.96 |
Expenses including reductions | 0.72 | 0.72 | 0.84 | 0.85 | 0.88 |
Net investment income | 0.40 | 0.20 | 0.01 | 0.30 | 0.39 |
Portfolio turnover (%) | 36 | 25 | 18 | 22 | 21 |
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. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL ALL CAP CORE FUND | 21 |
22 | JOHN HANCOCK Fundamental All Cap Core Fund | ANNUAL REPORT |
Total value at 7-31-23 | Level 1 quoted price | Level 2 significant observable inputs | Level 3 significant unobservable inputs | |
Investments in securities: | ||||
Assets | ||||
Common stocks | ||||
Communication services | $34,743,240 | $34,743,240 | — | — |
Consumer discretionary | 67,492,751 | 60,320,401 | $7,172,350 | — |
Consumer staples | 15,495,060 | 15,495,060 | — | — |
Energy | 14,278,279 | 14,278,279 | — | — |
Financials | 51,353,767 | 51,353,767 | — | — |
Health care | 17,019,496 | 17,019,496 | — | — |
Industrials | 15,363,167 | 15,363,167 | — | — |
Information technology | 81,870,014 | 81,870,014 | — | — |
Materials | 3,893,504 | 3,893,504 | — | — |
Real estate | 12,624,901 | 12,624,901 | — | — |
Short-term investments | 4,811,553 | 4,811,553 | — | — |
Total investments in securities | $318,945,732 | $311,773,382 | $7,172,350 | — |
ANNUAL REPORT | JOHN HANCOCK Fundamental All Cap Core Fund | 23 |
24 | JOHN HANCOCK Fundamental All Cap Core Fund | ANNUAL REPORT |
July 31, 2023 | July 31, 2022 | |
Ordinary income | — | $602,000 |
Long-term capital gains | $11,027,163 | 6,711,333 |
Total | $11,027,163 | $7,313,333 |
ANNUAL REPORT | JOHN HANCOCK Fundamental All Cap Core Fund | 25 |
Class | Expense reduction |
Class A | $109,905 |
Class C | 11,750 |
Class I | 116,617 |
Class R2 | 145 |
Class | Expense reduction |
Class R4 | $95 |
Class R6 | 70,800 |
Total | $309,312 |
26 | JOHN HANCOCK Fundamental All Cap Core Fund | ANNUAL REPORT |
Class | Rule 12b-1 Fee | Service fee |
Class A | 0.30% | — |
Class C | 1.00% | — |
Class R2 | 0.25% | 0.25% |
Class R4 | 0.25% | 0.10% |
Class | Distribution and service fees | Transfer agent fees |
Class A | $282,511 | $109,873 |
Class C | 100,641 | 11,747 |
Class I | — | 118,215 |
Class R2 | 615 | 10 |
Class R4 | 223 | 7 |
Class R6 | — | 4,922 |
Total | $383,990 | $244,774 |
ANNUAL REPORT | JOHN HANCOCK Fundamental All Cap Core Fund | 27 |
Year Ended 7-31-23 | Year Ended 7-31-22 | |||
Shares | Amount | Shares | Amount | |
Class A shares | ||||
Sold | 1,315,971 | $33,452,680 | 1,552,833 | $44,868,746 |
Distributions reinvested | 189,351 | 4,239,568 | 100,486 | 3,039,709 |
Repurchased | (1,056,848) | (26,356,825) | (655,904) | (18,404,415) |
Net increase | 448,474 | $11,335,423 | 997,415 | $29,504,040 |
Class C shares | ||||
Sold | 153,627 | $3,617,670 | 183,897 | $5,103,585 |
Distributions reinvested | 22,820 | 479,220 | 12,072 | 345,989 |
Repurchased | (124,677) | (2,922,791) | (65,824) | (1,705,310) |
Net increase | 51,770 | $1,174,099 | 130,145 | $3,744,264 |
Class I shares | ||||
Sold | 3,396,943 | $87,900,603 | 5,130,075 | $153,123,650 |
Distributions reinvested | 157,054 | 3,615,390 | 80,059 | 2,477,841 |
Repurchased | (3,788,873) | (94,974,774) | (2,011,270) | (55,829,314) |
Net increase (decrease) | (234,876) | $(3,458,781) | 3,198,864 | $99,772,177 |
Class R2 shares | ||||
Sold | 231 | $5,604 | 1,674 | $52,476 |
Distributions reinvested | 191 | 4,303 | 120 | 3,660 |
Repurchased | (48) | (1,200) | (1,546) | (49,479) |
Net increase | 374 | $8,707 | 248 | $6,657 |
Class R4 shares | ||||
Sold | 114 | $2,910 | 414 | $13,101 |
Distributions reinvested | 29 | 659 | 16 | 478 |
Repurchased | (21) | (572) | (3) | (78) |
Net increase | 122 | $2,997 | 427 | $13,501 |
Class R6 shares | ||||
Sold | 894,840 | $23,215,674 | 1,939,804 | $57,491,361 |
Distributions reinvested | 115,861 | 2,682,185 | 46,320 | 1,440,091 |
Repurchased | (814,879) | (20,902,274) | (511,719) | (14,852,328) |
Net increase | 195,822 | $4,995,585 | 1,474,405 | $44,079,124 |
Total net increase | 461,686 | $14,058,030 | 5,801,504 | $177,119,763 |
28 | JOHN HANCOCK Fundamental All Cap Core Fund | ANNUAL REPORT |
Dividends and distributions | |||||||||
Affiliate | Ending share amount | Beginning value | Cost of purchases | Proceeds from shares sold | Realized gain (loss) | Change in unrealized appreciation (depreciation) | Income distributions received | Capital gain distributions received | Ending value |
John Hancock Collateral Trust | 481,396 | — | $107,335,225 | $(102,528,742) | $4,927 | $143 | $252,657 | — | $4,811,553 |
ANNUAL REPORT | JOHN HANCOCK Fundamental All Cap Core Fund | 29 |
30 | JOHN HANCOCK FUNDAMENTAL ALL CAP CORE FUND | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL ALL CAP CORE FUND | 31 |
32 | JOHN HANCOCK FUNDAMENTAL ALL CAP CORE 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; |
(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; |
ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL ALL CAP CORE FUND | 33 |
(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 FUNDAMENTAL ALL CAP CORE 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 fund’s Subadvisor is an affiliate of the Advisor; |
(i) | noted that the Advisor also derives reputational and other indirect benefits from providing advisory services to the fund; |
(j) | noted that the subadvisory fee for the fund is paid by the Advisor; |
(k) | 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 |
(l) | 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 |
ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL ALL CAP CORE FUND | 35 |
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; and |
(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. |
36 | JOHN HANCOCK FUNDAMENTAL ALL CAP CORE FUND | ANNUAL REPORT |
(1) | the Subadvisor has extensive experience and demonstrated skills as a manager; |
(2) | the fund’s performance has generally been in line with or outperformed the historical performance of comparable funds and 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. |
ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL ALL CAP CORE FUND | 37 |
• | 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; |
38 | JOHN HANCOCK FUNDAMENTAL ALL CAP CORE FUND | ANNUAL REPORT |
• | The Fund did not experience any breaches of the 15% limit on illiquid investments, or any applicable HLIM, that would require reporting to the Securities and Exchange Commission; |
• | 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. |
ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL ALL CAP CORE FUND | 39 |
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 | 186 |
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 | 183 |
Trustee | ||
Board Member, United of Omaha Life Insurance Company (since 2022). Board Member, Mutual of Omaha Investor Services, Inc. (since 2022). 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). | ||
William H. Cunningham,2 Born: 1944 | 2012 | 184 |
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). | ||
Noni L. Ellison,* Born: 1971 | 2022 | 183 |
Trustee | ||
Senior Vice President, General Counsel & Corporate Secretary, Tractor Supply Company (rural lifestyle retailer) (since 2021); General Counsel, Chief Compliance Officer & Corporate Secretary, Carestream Dental, L.L.C.(2017–2021); Associate General Counsel & Assistant Corporate Secretary, W.W. Grainger, Inc. (global industrial supplier) (2015–2017); Board Member, Goodwill of North Georgia, 2018 (FY2019)–2020 (FY2021); Board Member, Howard University School of Law Board of Visitors (since 2021); Board Member, University of Chicago Law School Board of Visitors (since 2016); Board member, Children’s Healthcare of Atlanta Foundation Board (2021–present). Trustee of various trusts within the John Hancock Fund Complex (since 2022). | ||
Grace K. Fey, Born: 1946 | 2008 | 186 |
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). | ||
Dean C. Garfield,* Born: 1968 | 2022 | 183 |
Trustee | ||
Vice President, Netflix, Inc. (since 2019); President & Chief Executive Officer, Information Technology Industry Council (2009–2019); NYU School of Law Board of Trustees (since 2021); Member, U.S. Department of Transportation, Advisory Committee on Automation (since 2021); President of the United States Trade Advisory Council (2010–2018); Board Member, College for Every Student (2017–2021); Board Member, The Seed School of Washington, D.C. (2012–2017). Trustee of various trusts within the John Hancock Fund Complex (since 2022). |
40 | JOHN HANCOCK FUNDAMENTAL ALL CAP CORE FUND | ANNUAL REPORT |
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 |
Deborah C. Jackson, Born: 1952 | 2012 | 185 |
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). | ||
Patricia Lizarraga,2,* Born: 1966 | 2022 | 183 |
Trustee | ||
Founder, Chief Executive Officer, Hypatia Capital Group (advisory and asset management company) (since 2007); Independent Director, Audit Committee Chair, and Risk Committee Member, Credicorp, Ltd. (since 2017); Independent Director, Audit Committee Chair, Banco De Credito Del Peru (since 2017); Trustee, Museum of Art of Lima (since 2009). Trustee of various trusts within the John Hancock Fund Complex (since 2022). | ||
Steven R. Pruchansky, Born: 1944 | 2012 | 183 |
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 | 183 |
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 | 183 |
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). |
ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL ALL CAP CORE FUND | 41 |
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 | 184 |
Non-Independent Trustee | ||
Global Head of Retail for Manulife (since 2022); Head of Wealth and Asset Management, United States and Europe, for John Hancock and Manulife (2018-2023); Director and Chairman, John Hancock Investment Management LLC (since 2005, including prior positions); Director and Chairman, John Hancock Variable Trust Advisers LLC (since 2006, including prior positions); Director and Chairman, John Hancock Investment Management Distributors LLC (since 2004, including prior positions); President of various trusts within the John Hancock Fund Complex (2007-2023, including prior positions). Trustee of various trusts within the John Hancock Fund Complex (since 2017). | ||
Paul Lorentz,† Born: 1968 | 2022 | 183 |
Non-Independent Trustee | ||
Global Head, Manulife Wealth and Asset Management (since 2017); General Manager, Manulife, Individual Wealth Management and Insurance (2013–2017); President, Manulife Investments (2010–2016). Trustee of various trusts within the John Hancock Fund Complex (since 2022). |
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 |
Kristie M. Feinberg, Born: 1975 | 2023 |
President | |
Head of Wealth & Asset Management, U.S. and Europe, for John Hancock and Manulife (since 2023); CFO and Global Head of Strategy, Manulife Investment Management (2021-2023, including prior positions); CFO Americas & Global Head of Treasury, Invesco, Ltd., Invesco US (2019-2020, including prior positions); Senior Vice President, Corporate Treasurer and Business Controller, Oppenheimer Funds (2001-2019, including prior positions); President of various trusts within the John Hancock Fund Complex (since 2023). | |
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). |
42 | JOHN HANCOCK FUNDAMENTAL ALL CAP CORE FUND | ANNUAL REPORT |
Principal officers who are not Trustees (continued) | |
Name, year of birth Position(s) held with Trust Principal occupation(s) during past 5 years | Current Position(s) with the Trust since |
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). |
1 | Each Trustee holds office until his or her successor is duly 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. |
* | Elected to serve as Independent Trustee effective as of September 9, 2022. |
† | Elected to serve as Non-Independent Trustee effective as of September 9, 2022. |
ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL ALL CAP CORE FUND | 43 |
Steven R. Pruchansky, Vice Chairperson
Andrew G. Arnott†
James R. Boyle
William H. Cunningham*
Grace K. Fey
Noni L. Ellison^
Dean C. Garfield^
Deborah C. Jackson
Patricia Lizarraga*,^
Paul Lorentz‡
Frances G. Rathke*
Gregory A. Russo
President
Chief Financial Officer
Treasurer
Secretary and Chief Legal Officer
Chief Compliance Officer
Jonathan T. White, CFA
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 |
44 | JOHN HANCOCK FUNDAMENTAL ALL CAP CORE FUND | ANNUAL REPORT |
GOVERNANCE FUNDS
with a heritage of financial stewardship dating back to 1862. Helping
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we do. It’s why we support the role of professional financial advice
and operate with the highest standards of conduct and integrity.
We search the world to find proven portfolio teams with specialized
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MF3049091 | 376A 7/23 |
United States and Europe
Manulife Investment Management
John Hancock Investment Management
ANNUAL REPORT | JOHN HANCOCK MULTI-ASSET ABSOLUTE RETURN FUND | 1 |
2 | JOHN HANCOCK MULTI-ASSET ABSOLUTE RETURN FUND | ANNUAL REPORT |
Common stocks | 87.8 |
Health care | 18.4 |
Information technology | 15.8 |
Consumer staples | 13.8 |
Financials | 11.5 |
Communication services | 10.3 |
Consumer discretionary | 8.6 |
Industrials | 7.1 |
Utilities | 1.9 |
Real estate | 0.2 |
Materials | 0.2 |
U.S. Government | 4.0 |
Corporate bonds | 3.3 |
ANNUAL REPORT | JOHN HANCOCK MULTI-ASSET ABSOLUTE RETURN FUND | 3 |
Foreign government obligations | 0.1 |
Other assets and liabilities, net | 4.8 |
TOTAL | 100.0 |
4 | JOHN HANCOCK MULTI-ASSET ABSOLUTE RETURN FUND | ANNUAL REPORT |
COUNTRY COMPOSITION AS OF 7/31/2023 (% of net assets) | |
United States | 71.1 |
Denmark | 5.8 |
United Kingdom | 3.2 |
Germany | 2.9 |
France | 2.8 |
Switzerland | 2.1 |
Ireland | 2.0 |
China | 1.9 |
Japan | 1.6 |
Taiwan | 1.3 |
Other countries | 5.3 |
TOTAL | 100.0 |
ANNUAL REPORT | JOHN HANCOCK MULTI-ASSET ABSOLUTE RETURN FUND | 5 |
6 | JOHN HANCOCK MULTI-ASSET ABSOLUTE RETURN FUND | ANNUAL REPORT |
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 | -3.70 | 2.19 | 1.64 | 11.47 | 17.69 |
Class C | -0.36 | 2.53 | 1.46 | 13.29 | 15.63 |
Class I1 | 1.73 | 3.56 | 2.49 | 19.09 | 27.86 |
Class R21 | 1.34 | 3.20 | 2.05 | 17.04 | 22.47 |
Class R61 | 1.74 | 3.65 | 2.59 | 19.65 | 29.12 |
Class NAV1 | 1.74 | 3.68 | 2.61 | 19.79 | 29.33 |
Index 1† | 4.07 | 1.59 | 1.00 | 8.21 | 10.45 |
Index 2† | 2.49 | 3.36 | 4.21 | 17.99 | 51.04 |
Class A | Class C | Class I | Class R2 | Class R6 | Class NAV | |
Gross (%) | 1.57 | 2.27 | 1.27 | 1.66 | 1.16 | 1.15 |
Net (%) | 1.56 | 2.26 | 1.26 | 1.65 | 1.15 | 1.14 |
ANNUAL REPORT | JOHN HANCOCK MULTI-ASSET ABSOLUTE RETURN FUND | 7 |
Start date | With maximum sales charge ($) | Without sales charge ($) | Index 1 ($) | Index 2 ($) | |
Class C2 | 7-31-13 | 11,563 | 11,563 | 11,045 | 15,104 |
Class I1 | 7-31-13 | 12,786 | 12,786 | 11,045 | 15,104 |
Class R21 | 7-31-13 | 12,247 | 12,247 | 11,045 | 15,104 |
Class R61 | 7-31-13 | 12,912 | 12,912 | 11,045 | 15,104 |
Class NAV1 | 7-31-13 | 12,933 | 12,933 | 11,045 | 15,104 |
1 | For certain types of investors, as described in the fund’s prospectuses. |
2 | The contingent deferred sales charge is not applicable. |
8 | JOHN HANCOCK MULTI-ASSET ABSOLUTE RETURN FUND | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK MULTI-ASSET ABSOLUTE RETURN FUND | 9 |
Account value on 2-1-2023 | Ending value on 7-31-2023 | Expenses paid during period ended 7-31-20231 | Annualized expense ratio | ||
Class A | Actual expenses/actual returns | $1,000.00 | $1,016.70 | $7.95 | 1.59% |
Hypothetical example | 1,000.00 | 1,016.90 | 7.95 | 1.59% | |
Class C | Actual expenses/actual returns | 1,000.00 | 1,012.90 | 11.38 | 2.28% |
Hypothetical example | 1,000.00 | 1,013.50 | 11.38 | 2.28% | |
Class I | Actual expenses/actual returns | 1,000.00 | 1,018.50 | 6.46 | 1.29% |
Hypothetical example | 1,000.00 | 1,018.40 | 6.46 | 1.29% | |
Class R2 | Actual expenses/actual returns | 1,000.00 | 1,015.70 | 8.00 | 1.60% |
Hypothetical example | 1,000.00 | 1,016.90 | 8.00 | 1.60% | |
Class R6 | Actual expenses/actual returns | 1,000.00 | 1,018.40 | 5.91 | 1.18% |
Hypothetical example | 1,000.00 | 1,018.90 | 5.91 | 1.18% | |
Class NAV | Actual expenses/actual returns | 1,000.00 | 1,018.40 | 5.86 | 1.17% |
Hypothetical example | 1,000.00 | 1,019.00 | 5.86 | 1.17% |
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). |
10 | JOHN HANCOCK MULTI-ASSET ABSOLUTE RETURN FUND | ANNUAL REPORT |
Shares | Value | ||||
Common stocks 87.8% | $423,277,126 | ||||
(Cost $324,791,213) | |||||
Brazil 0.3% | 1,552,013 | ||||
Cia de Saneamento Basico do Estado de Sao Paulo | 9,500 | 116,722 | |||
Cia de Saneamento Basico do Estado de Sao Paulo, ADR | 19,880 | 242,735 | |||
CPFL Energia SA | 36,700 | 277,690 | |||
Hypera SA | 59,200 | 541,579 | |||
M Dias Branco SA | 42,300 | 373,287 | |||
Canada 0.8% | 3,709,302 | ||||
Royal Bank of Canada | 14,200 | 1,407,778 | |||
The Toronto-Dominion Bank | 34,900 | 2,301,524 | |||
China 1.9% | 9,355,487 | ||||
Alibaba Group Holding, Ltd., ADR (A) | 12,489 | 1,275,876 | |||
Baidu, Inc., ADR (A) | 3,445 | 537,386 | |||
Chengdu Xingrong Environment Company, Ltd., Class A | 481,094 | 380,522 | |||
China Construction Bank Corp., H Shares | 1,170,000 | 681,945 | |||
China Longyuan Power Group Corp., Ltd., H Shares | 948,000 | 917,813 | |||
China Railway Group, Ltd., H Shares | 97,000 | 63,774 | |||
China Resources Sanjiu Medical & Pharmaceutical Company, Ltd., Class A | 26,679 | 187,187 | |||
Chinasoft International, Ltd. (A) | 822,000 | 514,895 | |||
Henan Shuanghui Investment & Development Company, Ltd., Class A | 75,798 | 267,980 | |||
Industrial & Commercial Bank of China, Ltd., H Shares | 1,391,000 | 679,264 | |||
Meituan, Class B (A)(B) | 850 | 16,227 | |||
Ming Yang Smart Energy Group, Ltd., Class A | 307,125 | 776,208 | |||
NetEase, Inc., ADR | 2,047 | 222,591 | |||
PICC Property & Casualty Company, Ltd., H Shares | 258,000 | 302,614 | |||
Ping An Insurance Group Company of China, Ltd., H Shares | 140,000 | 1,020,144 | |||
Shandong Weigao Group Medical Polymer Company, Ltd., H Shares | 46,800 | 60,440 | |||
Sinopharm Group Company, Ltd., H Shares | 184,400 | 580,711 | |||
Tencent Holdings, Ltd. | 7,800 | 358,497 | |||
Tianhe Chemicals Group, Ltd. (A)(B)(C) | 4,848,409 | 0 | |||
Titan Wind Energy Suzhou Company, Ltd., Class A (A) | 101,497 | 202,643 | |||
Zhejiang Chint Electrics Company, Ltd., Class A | 77,798 | 308,770 | |||
Denmark 3.2% | 15,433,613 | ||||
Novo Nordisk A/S, B Shares | 95,711 | 15,433,613 | |||
France 2.3% | 10,914,295 | ||||
Sanofi | 48,322 | 5,155,236 | |||
Vinci SA | 49,035 | 5,759,059 | |||
Germany 2.9% | 13,786,908 | ||||
Allianz SE | 28,370 | 6,780,444 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK MULTI-ASSET ABSOLUTE RETURN FUND | 11 |
Shares | Value | ||||
Germany (continued) | |||||
Deutsche Telekom AG | 50,382 | $1,098,395 | |||
DHL Group | 48,054 | 2,471,103 | |||
Muenchener Rueckversicherungs-Gesellschaft AG | 9,130 | 3,436,966 | |||
Hong Kong 0.2% | 856,926 | ||||
China Everbright Environment Group, Ltd. | 322,000 | 128,491 | |||
China Metal Recycling Holdings, Ltd. (A)(C) | 1,799,400 | 0 | |||
China Overseas Land & Investment, Ltd. | 102,500 | 243,147 | |||
China Resources Land, Ltd. | 104,000 | 485,288 | |||
India 0.3% | 1,701,500 | ||||
Power Grid Corp. of India, Ltd. | 260,504 | 843,445 | |||
UPL, Ltd. | 113,248 | 858,055 | |||
Indonesia 0.2% | 1,071,859 | ||||
Telkom Indonesia Persero Tbk PT | 4,350,500 | 1,071,859 | |||
Ireland 2.0% | 9,744,344 | ||||
Accenture PLC, Class A | 26,032 | 8,235,223 | |||
Medtronic PLC | 17,196 | 1,509,121 | |||
Israel 0.6% | 2,730,533 | ||||
Check Point Software Technologies, Ltd. (A) | 20,653 | 2,730,533 | |||
Japan 1.6% | 7,851,276 | ||||
Hoya Corp. | 17,100 | 1,991,456 | |||
KDDI Corp. | 88,700 | 2,610,592 | |||
Nippon Telegraph & Telephone Corp. | 2,833,500 | 3,249,228 | |||
Mexico 0.3% | 1,282,564 | ||||
Arca Continental SAB de CV | 39,100 | 392,308 | |||
Fomento Economico Mexicano SAB de CV | 41,500 | 470,193 | |||
Grupo Financiero Banorte SAB de CV, Series O | 44,300 | 420,063 | |||
Netherlands 0.2% | 809,431 | ||||
Prosus NV (A) | 10,232 | 809,431 | |||
Philippines 0.0% | 50,231 | ||||
PLDT, Inc. | 2,105 | 50,231 | |||
South Africa 0.3% | 1,250,461 | ||||
Naspers, Ltd., N Shares | 3,492 | 686,132 | |||
Sanlam, Ltd. | 72,198 | 266,220 | |||
Standard Bank Group, Ltd. | 27,937 | 298,109 | |||
South Korea 1.2% | 5,625,137 | ||||
BNK Financial Group, Inc. | 7,319 | 38,817 | |||
Cheil Worldwide, Inc. | 12,938 | 184,130 | |||
Hyundai Glovis Company, Ltd. | 3,476 | 475,302 |
12 | JOHN HANCOCK MULTI-ASSET ABSOLUTE RETURN FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Shares | Value | ||||
South Korea (continued) | |||||
Hyundai Mobis Company, Ltd. | 2,424 | $442,904 | |||
LG Corp. | 2,074 | 135,773 | |||
Samsung Electronics Company, Ltd. | 19,741 | 1,080,872 | |||
Samsung Fire & Marine Insurance Company, Ltd. | 6,406 | 1,224,486 | |||
SK Square Company, Ltd. (A) | 17,459 | 607,850 | |||
SK Telecom Company, Ltd. | 36,766 | 1,329,495 | |||
SK Telecom Company, Ltd., ADR | 5,257 | 105,508 | |||
Spain 0.5% | 2,658,691 | ||||
Iberdrola SA | 213,009 | 2,658,691 | |||
Sweden 0.1% | 466,462 | ||||
Svenska Handelsbanken AB, A Shares | 53,128 | 466,462 | |||
Switzerland 2.1% | 10,036,996 | ||||
Chubb, Ltd. | 12,524 | 2,560,031 | |||
Nestle SA | 23,059 | 2,825,171 | |||
Roche Holding AG | 13,982 | 4,335,140 | |||
Sonova Holding AG | 1,136 | 316,654 | |||
Taiwan 1.3% | 6,068,563 | ||||
Taiwan Semiconductor Manufacturing Company, Ltd. | 136,000 | 2,455,834 | |||
Taiwan Semiconductor Manufacturing Company, Ltd., ADR | 36,437 | 3,612,729 | |||
Thailand 0.1% | 736,986 | ||||
Advanced Info Service PCL | 13,400 | 88,536 | |||
Bangkok Bank PCL | 18,800 | 94,251 | |||
Thai Beverage PCL | 378,400 | 172,143 | |||
Thai Union Group PCL | 968,400 | 382,056 | |||
United Kingdom 3.1% | 15,163,047 | ||||
Diageo PLC | 67,036 | 2,925,607 | |||
Reckitt Benckiser Group PLC | 74,794 | 5,602,984 | |||
Rightmove PLC | 95,337 | 698,534 | |||
St. James’s Place PLC | 155,615 | 1,878,451 | |||
Unilever PLC | 29,245 | 1,571,421 | |||
Unilever PLC (Euronext Amsterdam Exchange) | 46,185 | 2,486,050 | |||
United States 62.3% | 300,420,501 | ||||
Adobe, Inc. (A) | 24,125 | 13,176,351 | |||
Advanced Micro Devices, Inc. (A) | 10,235 | 1,170,884 | |||
Akamai Technologies, Inc. (A) | 49,989 | 4,723,961 | |||
Alphabet, Inc., Class A (A) | 163,246 | 21,666,005 | |||
Amgen, Inc. | 6,694 | 1,567,400 | |||
Automatic Data Processing, Inc. | 41,674 | 10,304,313 | |||
AutoZone, Inc. (A) | 1,542 | 3,826,812 | |||
Baxter International, Inc. | 35,788 | 1,618,691 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK MULTI-ASSET ABSOLUTE RETURN FUND | 13 |
Shares | Value | ||||
United States (continued) | |||||
Booking Holdings, Inc. (A) | 478 | $1,420,042 | |||
Bristol-Myers Squibb Company | 89,672 | 5,576,702 | |||
Cadence Design Systems, Inc. (A) | 20,400 | 4,773,804 | |||
Centene Corp. (A) | 37,858 | 2,577,751 | |||
Cisco Systems, Inc. | 166,753 | 8,677,826 | |||
Colgate-Palmolive Company | 33,802 | 2,577,741 | |||
Comcast Corp., Class A | 164,105 | 7,427,392 | |||
Conagra Brands, Inc. | 123,456 | 4,050,591 | |||
CVS Health Corp. | 81,620 | 6,096,198 | |||
eBay, Inc. | 126,570 | 5,633,631 | |||
Edison International | 3,830 | 275,607 | |||
Elevance Health, Inc. | 14,309 | 6,748,554 | |||
Eversource Energy | 15,127 | 1,094,136 | |||
Expeditors International of Washington, Inc. | 30,285 | 3,855,281 | |||
Fiserv, Inc. (A) | 49,335 | 6,226,570 | |||
Fortrea Holdings, Inc. (A) | 7,285 | 232,829 | |||
Global Payments, Inc. | 42,201 | 4,652,660 | |||
Intuit, Inc. | 996 | 509,653 | |||
Johnson & Johnson | 91,991 | 15,411,252 | |||
Laboratory Corp. of America Holdings | 7,368 | 1,576,236 | |||
Marsh & McLennan Companies, Inc. | 17,409 | 3,280,204 | |||
Mastercard, Inc., Class A | 17,637 | 6,953,916 | |||
McDonald’s Corp. | 14,694 | 4,308,281 | |||
Merck & Company, Inc. | 18,368 | 1,958,947 | |||
Meta Platforms, Inc., Class A (A) | 20,215 | 6,440,499 | |||
Microsoft Corp. | 61,855 | 20,778,332 | |||
Mondelez International, Inc., Class A | 74,087 | 5,492,069 | |||
Monster Beverage Corp. (A) | 123,687 | 7,110,766 | |||
NIKE, Inc., Class B | 51,422 | 5,676,475 | |||
Oracle Corp. | 14,743 | 1,728,322 | |||
Paychex, Inc. | 10,500 | 1,317,435 | |||
PepsiCo, Inc. | 36,419 | 6,827,106 | |||
Pfizer, Inc. | 78,740 | 2,839,364 | |||
Public Service Enterprise Group, Inc. | 49,070 | 3,097,298 | |||
Ross Stores, Inc. | 25,245 | 2,894,087 | |||
Starbucks Corp. | 51,010 | 5,181,086 | |||
Stryker Corp. | 8,407 | 2,382,628 | |||
Sysco Corp. | 30,649 | 2,338,825 | |||
Texas Roadhouse, Inc. | 44,396 | 4,952,374 | |||
The Cigna Group | 26,041 | 7,684,699 | |||
The Coca-Cola Company | 203,240 | 12,586,653 | |||
The Estee Lauder Companies, Inc., Class A | 10,221 | 1,839,780 | |||
The Hershey Company | 9,134 | 2,112,786 | |||
The Procter & Gamble Company | 27,298 | 4,266,677 |
14 | JOHN HANCOCK MULTI-ASSET ABSOLUTE RETURN FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Shares | Value | ||||
United States (continued) | |||||
The TJX Companies, Inc. | 45,565 | $3,942,739 | |||
The Toro Company | 37,855 | 3,847,961 | |||
UnitedHealth Group, Inc. | 4,348 | 2,201,697 | |||
Verizon Communications, Inc. | 80,062 | 2,728,513 | |||
Visa, Inc., Class A | 43,094 | 10,244,737 | |||
VMware, Inc., Class A (A) | 11,081 | 1,746,698 | |||
W.W. Grainger, Inc. | 2,997 | 2,213,255 | |||
Waste Management, Inc. | 12,195 | 1,997,419 | |||
Preferred securities 0.0% | $140,929 | ||||
(Cost $131,741) | |||||
Brazil 0.0% | 140,929 | ||||
Banco Bradesco SA | 40,001 | 140,929 | |||
Rate (%) | Maturity date | Par value^ | Value | ||
U.S. Government and Agency obligations 4.0% | $19,380,674 | ||||
(Cost $19,509,270) | |||||
U.S. Government 4.0% | 19,380,674 | ||||
U.S. Treasury | |||||
Note (D) | 0.625 | 05-15-30 | 1,668,400 | 1,331,266 | |
Note (D) | 0.625 | 08-15-30 | 1,432,000 | 1,135,419 | |
Note (D) | 0.875 | 11-15-30 | 1,505,000 | 1,212,407 | |
Note | 1.250 | 08-15-31 | 1,368,100 | 1,114,360 | |
Note (D) | 1.625 | 05-15-31 | 1,641,100 | 1,385,383 | |
Note (D) | 1.750 | 11-15-29 | 1,078,400 | 942,378 | |
Note (D) | 1.875 | 02-15-32 | 2,674,400 | 2,271,255 | |
Note (D) | 2.375 | 05-15-29 | 2,636,100 | 2,397,512 | |
Note | 2.625 | 02-15-29 | 392,000 | 362,263 | |
Note (D) | 2.875 | 05-15-32 | 2,613,000 | 2,400,285 | |
Note (D) | 3.125 | 11-15-28 | 1,377,200 | 1,309,201 | |
Note | 3.375 | 05-15-33 | 919,400 | 877,021 | |
Note | 3.500 | 02-15-33 | 600,300 | 578,539 | |
Note (D) | 4.125 | 11-15-32 | 2,039,800 | 2,063,385 | |
Foreign government obligations 0.1% | $145,214 | ||||
(Cost $144,710) | |||||
France 0.1% | 145,214 | ||||
Caisse Francaise de Financement Local | |||||
Bond | 0.010 | 10-19-35 | EUR | 200,000 | 145,214 |
Corporate bonds 3.3% | $16,028,282 | ||||
(Cost $17,297,848) | |||||
Austria 0.0% | 179,395 | ||||
Erste Group Bank AG | 0.010 | 09-11-29 | EUR | 200,000 | 179,395 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK MULTI-ASSET ABSOLUTE RETURN FUND | 15 |
Rate (%) | Maturity date | Par value^ | Value | ||
Canada 0.1% | $283,928 | ||||
Federation des Caisses Desjardins | 0.050 | 11-26-27 | EUR | 300,000 | 283,928 |
Denmark 2.6% | 12,522,080 | ||||
Nykredit Realkredit A/S | 1.000 | 07-01-25 | DKK | 3,900,000 | 548,542 |
Nykredit Realkredit A/S | 2.500 | 10-01-47 | DKK | 2,382,344 | 311,201 |
Nykredit Realkredit A/S | 2.500 | 10-01-53 | DKK | 1,549,691 | 193,214 |
Nykredit Realkredit A/S | 4.000 | 10-01-53 | DKK | 14,166,689 | 1,982,216 |
Nykredit Realkredit A/S | 5.000 | 10-01-53 | DKK | 2,482,097 | 360,372 |
Nykredit Realkredit A/S | 5.000 | 10-01-53 | DKK | 12,969,446 | 1,892,773 |
Realkredit Danmark A/S | 1.000 | 04-01-24 | DKK | 8,700,000 | 1,261,007 |
Realkredit Danmark A/S | 1.000 | 04-01-26 | DKK | 7,300,000 | 1,009,623 |
Realkredit Danmark A/S | 1.500 | 10-01-53 | DKK | 44,370,305 | 4,963,132 |
France 0.4% | 1,944,525 | ||||
AXA Home Loan SFH SA | 0.010 | 10-16-29 | EUR | 900,000 | 807,358 |
BPCE SFH SA | 0.010 | 01-21-27 | EUR | 800,000 | 779,642 |
BPCE SFH SA | 0.625 | 05-29-31 | EUR | 400,000 | 357,525 |
Japan 0.0% | 89,847 | ||||
Sumitomo Mitsui Banking Corp. | 0.409 | 11-07-29 | EUR | 100,000 | 89,847 |
New Zealand 0.0% | 170,485 | ||||
ASB Bank, Ltd. | 0.250 | 05-21-31 | EUR | 200,000 | 170,485 |
Norway 0.1% | 419,434 | ||||
Sparebanken Vest Boligkreditt AS | 0.750 | 02-27-25 | EUR | 400,000 | 419,434 |
United Kingdom 0.1% | 418,588 | ||||
Santander UK PLC | 0.500 | 01-10-25 | EUR | 400,000 | 418,588 |
Total investments (Cost $361,874,782) 95.2% | $458,972,225 | ||||
Other assets and liabilities, net 4.8% | 23,303,224 | ||||
Total net assets 100.0% | $482,275,449 |
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 | |
DKK | Danish Krone |
EUR | Euro |
Security Abbreviations and Legend | |
ADR | American Depositary Receipt |
(A) | Non-income producing security. |
(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. |
(C) | Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. Refer to Note 2 to the financial statements. |
(D) | All or a portion of this security is segregated at the custodian as collateral for certain derivatives. |
16 | JOHN HANCOCK MULTI-ASSET ABSOLUTE RETURN FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Open contracts | Number of contracts | Position | Expiration date | Notional basis^ | Notional value^ | Unrealized appreciation (depreciation) |
10-Year U.S. Treasury Note Futures | 426 | Long | Sep 2023 | $48,452,153 | $47,492,344 | $(959,809) |
2-Year U.S. Treasury Note Futures | 219 | Long | Oct 2023 | 45,170,371 | 44,475,820 | (694,551) |
5-Year U.S. Treasury Note Futures | 1,389 | Long | Oct 2023 | 151,739,040 | 148,471,077 | (3,267,963) |
Canadian 10-Year Bond Futures | 53 | Long | Sep 2023 | 4,917,871 | 4,831,957 | (85,914) |
ASX SPI 200 Index Futures | 49 | Short | Sep 2023 | (5,836,419) | (6,069,212) | (232,793) |
Euro STOXX 50 Index Futures | 402 | Short | Sep 2023 | (19,273,989) | (19,863,529) | (589,540) |
Euro-Bund Futures | 169 | Short | Sep 2023 | (25,119,924) | (24,711,721) | 408,203 |
FTSE 100 Index Futures | 94 | Short | Sep 2023 | (9,154,597) | (9,270,800) | (116,203) |
Long Gilt Futures | 40 | Short | Sep 2023 | (4,776,335) | (4,935,255) | (158,920) |
Mini MSCI Emerging Markets Index Futures | 282 | Short | Sep 2023 | (14,227,869) | (14,862,810) | (634,941) |
Nikkei 225 Mini Index Futures | 421 | Short | Sep 2023 | (9,558,309) | (9,843,999) | (285,690) |
S&P 500 E-Mini Index Futures | 479 | Short | Sep 2023 | (104,863,509) | (110,517,275) | (5,653,766) |
$(12,271,887) |
Contract to buy | Contract to sell | Counterparty (OTC) | Contractual settlement date | Unrealized appreciation | Unrealized depreciation | ||
AUD | 1,116,000 | JPY | 104,390,749 | BOA | 8/15/2023 | $14,547 | — |
AUD | 313,000 | NZD | 339,749 | BOA | 8/15/2023 | — | $(675) |
AUD | 299,000 | SEK | 2,146,886 | BOA | 8/15/2023 | — | (3,157) |
AUD | 3,009,360 | USD | 2,046,911 | BOA | 8/15/2023 | — | (24,499) |
AUD | 128,321 | USD | 87,336 | BARC | 8/15/2023 | — | (1,099) |
AUD | 216,425 | USD | 146,362 | BNP | 8/15/2023 | — | (915) |
AUD | 658,302 | USD | 437,772 | GSI | 8/15/2023 | 4,633 | — |
CAD | 804,000 | CHF | 534,365 | GSI | 8/15/2023 | — | (3,876) |
CAD | 319,431 | EUR | 215,000 | BOA | 8/15/2023 | 5,726 | — |
CAD | 805,000 | JPY | 85,881,024 | BNP | 8/15/2023 | 5,540 | — |
CAD | 495,381 | NZD | 592,000 | BOA | 8/15/2023 | 8,042 | — |
CAD | 138,000 | SEK | 1,102,774 | BNP | 8/15/2023 | — | (165) |
CAD | 13,621,367 | USD | 10,222,971 | BOA | 8/15/2023 | 108,726 | — |
CAD | 493,954 | USD | 364,868 | BNP | 8/15/2023 | 9,792 | — |
CAD | 4,649,640 | USD | 3,492,261 | GSI | 8/15/2023 | 34,453 | — |
CHF | 849,256 | USD | 956,360 | BOA | 8/15/2023 | 18,987 | — |
CHF | 255,403 | USD | 285,314 | BARC | 8/15/2023 | 8,009 | — |
CHF | 779,927 | USD | 873,847 | BNP | 8/15/2023 | 21,878 | — |
CHF | 907,346 | USD | 1,020,748 | GSI | 8/15/2023 | 21,314 | — |
DKK | 14,992,909 | USD | 2,228,877 | BOA | 8/15/2023 | — | (14,749) |
DKK | 14,403,246 | USD | 2,098,405 | BNP | 8/15/2023 | 28,643 | — |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK MULTI-ASSET ABSOLUTE RETURN FUND | 17 |
Contract to buy | Contract to sell | Counterparty (OTC) | Contractual settlement date | Unrealized appreciation | Unrealized depreciation | ||
DKK | 3,287,752 | USD | 476,300 | GSI | 8/15/2023 | $9,230 | — |
EUR | 61,000 | AUD | 100,832 | BOA | 8/15/2023 | — | $(646) |
EUR | 230,000 | GBP | 197,317 | BARC | 8/15/2023 | — | (182) |
EUR | 1,624,000 | JPY | 246,714,825 | BOA | 8/15/2023 | 48,702 | — |
EUR | 562,000 | JPY | 87,047,365 | BARC | 8/15/2023 | 5,092 | — |
EUR | 21,786,188 | USD | 23,852,642 | BOA | 8/15/2023 | 118,190 | — |
EUR | 495,016 | USD | 545,597 | BARC | 8/15/2023 | — | (943) |
EUR | 9,211,294 | USD | 10,023,044 | BNP | 8/15/2023 | 111,927 | — |
EUR | 1,183,097 | USD | 1,323,169 | GSI | 8/15/2023 | — | (21,435) |
GBP | 2,000 | CHF | 2,225 | BNP | 8/15/2023 | 11 | — |
GBP | 366,617 | EUR | 421,000 | BNP | 8/15/2023 | 7,316 | — |
GBP | 532,434 | USD | 669,837 | BOA | 8/15/2023 | 13,512 | — |
GBP | 287,435 | USD | 359,227 | BARC | 8/15/2023 | 9,679 | — |
GBP | 1,299,699 | USD | 1,644,326 | BNP | 8/15/2023 | 23,765 | — |
GBP | 23,654 | USD | 29,380 | GSI | 8/15/2023 | 979 | — |
HKD | 677,956 | USD | 86,657 | BARC | 8/15/2023 | 282 | — |
HKD | 2,838,287 | USD | 363,274 | BNP | 8/15/2023 | 697 | — |
HKD | 2,507,839 | USD | 320,520 | GSI | 8/15/2023 | 1,076 | — |
JPY | 58,542,634 | AUD | 614,000 | GSI | 8/15/2023 | — | (190) |
JPY | 36,054,202 | CAD | 347,000 | BOA | 8/15/2023 | — | (9,189) |
JPY | 267,041,387 | EUR | 1,754,000 | BOA | 8/15/2023 | — | (48,534) |
JPY | 34,719,566 | EUR | 221,000 | BARC | 8/15/2023 | 1,444 | — |
JPY | 59,782,541 | EUR | 382,000 | BNP | 8/15/2023 | 872 | — |
JPY | 92,420,419 | GBP | 530,000 | GSI | 8/15/2023 | — | (29,108) |
JPY | 53,255,191 | NOK | 3,819,000 | BOA | 8/15/2023 | — | (1,812) |
JPY | 28,244,181 | NZD | 324,000 | BOA | 8/15/2023 | — | (2,256) |
JPY | 10,985,224,804 | USD | 83,027,167 | BOA | 8/15/2023 | — | (5,634,413) |
JPY | 150,667,033 | USD | 1,076,639 | BARC | 8/15/2023 | — | (15,165) |
JPY | 512,641,612 | USD | 3,663,192 | BNP | 8/15/2023 | — | (51,546) |
JPY | 125,444,272 | USD | 895,224 | GSI | 8/15/2023 | — | (11,448) |
NOK | 1,966,152 | GBP | 144,000 | BARC | 8/15/2023 | 9,278 | — |
NOK | 2,128,986 | NZD | 336,000 | BNP | 8/15/2023 | 1,474 | — |
NOK | 5,418,047 | USD | 511,000 | BOA | 8/15/2023 | 23,858 | — |
NOK | 25,207,513 | USD | 2,479,000 | BNP | 8/15/2023 | 9,432 | — |
NOK | 77,775,357 | USD | 7,364,000 | GSI | 8/15/2023 | 313,818 | — |
NZD | 374,000 | JPY | 32,813,226 | BOA | 8/15/2023 | 1,122 | — |
NZD | 637,000 | JPY | 53,863,102 | BNP | 8/15/2023 | 16,176 | — |
NZD | 937,000 | USD | 579,071 | BOA | 8/15/2023 | 2,914 | — |
SEK | 17,296,842 | AUD | 2,463,000 | BOA | 8/15/2023 | — | (10,882) |
SEK | 20,151,455 | AUD | 2,888,000 | GSI | 8/15/2023 | — | (25,120) |
SEK | 1,364,864 | CAD | 173,000 | BOA | 8/15/2023 | — | (1,466) |
SEK | 1,191,340 | GBP | 92,000 | BOA | 8/15/2023 | — | (4,820) |
18 | JOHN HANCOCK MULTI-ASSET ABSOLUTE RETURN FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Contract to buy | Contract to sell | Counterparty (OTC) | Contractual settlement date | Unrealized appreciation | Unrealized depreciation | ||
SEK | 4,332,354 | GBP | 316,000 | BARC | 8/15/2023 | $6,294 | — |
SEK | 5,460,094 | NOK | 5,443,000 | BNP | 8/15/2023 | — | $(18,248) |
SEK | 3,845,633 | NZD | 595,000 | BOA | 8/15/2023 | — | (3,972) |
SEK | 2,920,320 | NZD | 454,000 | BNP | 8/15/2023 | — | (4,361) |
SEK | 3,455,800 | NZD | 517,000 | GSI | 8/15/2023 | 7,415 | — |
SEK | 2,916,499 | USD | 272,398 | BOA | 8/15/2023 | 4,864 | — |
SEK | 119,577 | USD | 11,186 | BARC | 8/15/2023 | 182 | — |
SEK | 15,560,135 | USD | 1,514,588 | BNP | 8/15/2023 | — | (35,337) |
SEK | 4,822,939 | USD | 445,000 | GSI | 8/15/2023 | 13,501 | — |
USD | 2,026,218 | AUD | 3,024,751 | BOA | 8/15/2023 | — | (6,537) |
USD | 140,921 | AUD | 208,926 | BARC | 8/15/2023 | 514 | — |
USD | 30,894,622 | AUD | 45,684,725 | BNP | 8/15/2023 | 192,636 | — |
USD | 77,991 | AUD | 116,479 | GSI | 8/15/2023 | — | (288) |
USD | 35,307,679 | CAD | 47,534,273 | BOA | 8/15/2023 | — | (746,684) |
USD | 692,853 | CAD | 912,947 | BNP | 8/15/2023 | 391 | — |
USD | 2,187,346 | CAD | 2,931,726 | GSI | 8/15/2023 | — | (36,344) |
USD | 152,792 | CHF | 135,846 | BOA | 8/15/2023 | — | (3,223) |
USD | 93,260 | CHF | 80,756 | BARC | 8/15/2023 | 513 | — |
USD | 7,009 | CHF | 6,254 | BNP | 8/15/2023 | — | (174) |
USD | 9,721,692 | CHF | 8,607,242 | GSI | 8/15/2023 | — | (163,489) |
USD | 32,547,407 | DKK | 220,975,483 | BOA | 8/15/2023 | — | (85,891) |
USD | 186,153,102 | EUR | 169,792,387 | BOA | 8/15/2023 | — | (665,479) |
USD | 1,606,460 | EUR | 1,449,366 | BARC | 8/15/2023 | 11,760 | — |
USD | 4,149,972 | EUR | 3,780,213 | BNP | 8/15/2023 | — | (9,308) |
USD | 840,349 | EUR | 777,036 | GSI | 8/15/2023 | — | (14,605) |
USD | 18,140,237 | GBP | 14,422,056 | BOA | 8/15/2023 | — | (369,662) |
USD | 1,123,793 | GBP | 892,926 | BARC | 8/15/2023 | — | (22,228) |
USD | 819,230 | GBP | 632,813 | BNP | 8/15/2023 | 7,050 | — |
USD | 568,443 | GBP | 441,260 | GSI | 8/15/2023 | 2,110 | — |
USD | 42,119 | HKD | 329,457 | BARC | 8/15/2023 | — | (130) |
USD | 65,863 | HKD | 515,100 | BNP | 8/15/2023 | — | (191) |
USD | 662,498 | HKD | 5,179,525 | GSI | 8/15/2023 | — | (1,705) |
USD | 4,003,446 | JPY | 555,603,148 | BOA | 8/15/2023 | 89,129 | — |
USD | 1,042,373 | JPY | 146,855,478 | BARC | 8/15/2023 | 7,751 | — |
USD | 11,129,792 | JPY | 1,484,453,659 | BNP | 8/15/2023 | 671,568 | — |
USD | 79,966 | JPY | 10,980,827 | GSI | 8/15/2023 | 2,604 | — |
USD | 13,556,332 | NOK | 144,205,451 | BOA | 8/15/2023 | — | (679,326) |
USD | 181,000 | NOK | 1,909,628 | GSI | 8/15/2023 | — | (7,514) |
USD | 15,927,468 | NZD | 25,122,513 | BOA | 8/15/2023 | 323,488 | — |
USD | 1,644,184 | NZD | 2,638,000 | BARC | 8/15/2023 | 5,682 | — |
USD | 36,764 | SEK | 390,255 | BOA | 8/15/2023 | — | (336) |
USD | 9,834 | SEK | 104,358 | BARC | 8/15/2023 | — | (87) |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK MULTI-ASSET ABSOLUTE RETURN FUND | 19 |
Contract to buy | Contract to sell | Counterparty (OTC) | Contractual settlement date | Unrealized appreciation | Unrealized depreciation | ||
USD | 5,582,789 | SEK | 57,267,667 | BNP | 8/15/2023 | $138,539 | — |
USD | 28,636 | ZAR | 551,870 | BOA | 8/15/2023 | — | $(2,182) |
ZAR | 44,400 | USD | 2,285 | BNP | 8/15/2023 | 194 | — |
ZAR | 507,470 | USD | 26,088 | GSI | 8/15/2023 | 2,250 | — |
$2,509,571 | $(8,795,591) |
Derivatives Currency Abbreviations | |
AUD | Australian Dollar |
CAD | Canadian Dollar |
CHF | Swiss Franc |
DKK | Danish Krone |
EUR | Euro |
GBP | Pound Sterling |
HKD | Hong Kong Dollar |
JPY | Japanese Yen |
NOK | Norwegian Krone |
NZD | New Zealand Dollar |
SEK | Swedish Krona |
USD | U.S. Dollar |
ZAR | South African Rand |
Derivatives Abbreviations | |
BARC | Barclays Bank PLC |
BNP | BNP Paribas |
BOA | Bank of America, N.A. |
GSI | Goldman Sachs International |
OTC | Over-the-counter |
20 | JOHN HANCOCK MULTI-ASSET ABSOLUTE RETURN FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Assets | |
Unaffiliated investments, at value (Cost $361,874,782) | $458,972,225 |
Unrealized appreciation on forward foreign currency contracts | 2,509,571 |
Cash | 11,949,741 |
Foreign currency, at value (Cost $790,700) | 791,826 |
Collateral held at broker for futures contracts | 13,559,093 |
Dividends and interest receivable | 1,279,920 |
Receivable for fund shares sold | 573,306 |
Receivable for investments sold | 2,609,946 |
Other assets | 48,749 |
Total assets | 492,294,377 |
Liabilities | |
Unrealized depreciation on forward foreign currency contracts | 8,795,591 |
Payable for futures variation margin | 61,544 |
Payable for investments purchased | 545,863 |
Payable for fund shares repurchased | 298,843 |
Payable to affiliates | |
Accounting and legal services fees | 35,142 |
Transfer agent fees | 25,837 |
Distribution and service fees | 135 |
Trustees’ fees | 759 |
Other liabilities and accrued expenses | 255,214 |
Total liabilities | 10,018,928 |
Net assets | $482,275,449 |
Net assets consist of | |
Paid-in capital | $991,193,204 |
Total distributable earnings (loss) | (508,917,755) |
Net assets | $482,275,449 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK Multi-Asset Absolute Return Fund | 21 |
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 ($41,128,439 ÷ 4,219,827 shares)1 | $9.75 |
Class C ($5,981,899 ÷ 637,862 shares)1 | $9.38 |
Class I ($200,822,430 ÷ 20,239,059 shares) | $9.92 |
Class R2 ($915,991 ÷ 94,504 shares) | $9.69 |
Class R6 ($133,531,033 ÷ 13,382,274 shares) | $9.98 |
Class NAV ($99,895,657 ÷ 10,015,140 shares) | $9.97 |
Maximum offering price per share | |
Class A (net asset value per share ÷ 95%)2 | $10.26 |
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. |
22 | JOHN HANCOCK Multi-Asset Absolute Return Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Investment income | |
Dividends | $9,036,451 |
Interest | 1,873,746 |
Less foreign taxes withheld | (458,345) |
Total investment income | 10,451,852 |
Expenses | |
Investment management fees | 5,141,600 |
Distribution and service fees | 218,613 |
Accounting and legal services fees | 110,578 |
Transfer agent fees | 306,706 |
Trustees’ fees | 13,799 |
Custodian fees | 151,695 |
State registration fees | 108,498 |
Printing and postage | 38,854 |
Professional fees | 231,434 |
Other | 104,557 |
Total expenses | 6,426,334 |
Less expense reductions | (37,766) |
Net expenses | 6,388,568 |
Net investment income | 4,063,284 |
Realized and unrealized gain (loss) | |
Net realized gain (loss) on | |
Unaffiliated investments and foreign currency transactions | 12,398,021 |
Futures contracts | (29,931,065) |
Forward foreign currency contracts | (13,278,944) |
Swap contracts | (1,528,686) |
(32,340,674) | |
Change in net unrealized appreciation (depreciation) of | |
Unaffiliated investments and translation of assets and liabilities in foreign currencies | 49,255,568 |
Futures contracts | (4,121,171) |
Forward foreign currency contracts | (10,394,875) |
Swap contracts | 1,094,096 |
35,833,618 | |
Net realized and unrealized gain | 3,492,944 |
Increase in net assets from operations | $7,556,228 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK Multi-Asset Absolute Return Fund | 23 |
Year ended 7-31-23 | Year ended 7-31-22 | |
Increase (decrease) in net assets | ||
From operations | ||
Net investment income | $4,063,284 | $5,182,569 |
Net realized gain (loss) | (32,340,674) | 43,662,827 |
Change in net unrealized appreciation (depreciation) | 35,833,618 | (61,882,943) |
Increase (decrease) in net assets resulting from operations | 7,556,228 | (13,037,547) |
Distributions to shareholders | ||
From earnings | ||
Class A | (1,282,614) | — |
Class C | (237,194) | — |
Class I | (6,362,692) | — |
Class R2 | (30,090) | — |
Class R6 | (7,576,544) | — |
Class NAV | (3,272,596) | — |
Total distributions | (18,761,730) | — |
From fund share transactions | (87,852,566) | 124,932,928 |
Total increase (decrease) | (99,058,068) | 111,895,381 |
Net assets | ||
Beginning of year | 581,333,517 | 469,438,136 |
End of year | $482,275,449 | $581,333,517 |
24 | JOHN HANCOCK Multi-Asset Absolute Return Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS A SHARES Period ended | 7-31-23 | 7-31-22 | 7-31-21 | 7-31-20 | 7-31-19 |
Per share operating performance | |||||
Net asset value, beginning of period | $9.93 | $10.12 | $9.06 | $10.54 | $10.12 |
Net investment income1 | 0.05 | 0.06 | 0.02 | 0.06 | 0.20 |
Net realized and unrealized gain (loss) on investments | 0.07 | (0.25) | 1.09 | 0.02 | 0.22 |
Total from investment operations | 0.12 | (0.19) | 1.11 | 0.08 | 0.42 |
Less distributions | |||||
From net investment income | (0.30) | — | (0.05) | (1.56) | — |
Net asset value, end of period | $9.75 | $9.93 | $10.12 | $9.06 | $10.54 |
Total return (%)2,3 | 1.34 | (1.88) | 12.27 | 0.89 | 4.15 |
Ratios and supplemental data | |||||
Net assets, end of period (in millions) | $41 | $44 | $45 | $41 | $51 |
Ratios (as a percentage of average net assets): | |||||
Expenses before reductions | 1.55 | 1.57 | 1.59 | 1.53 | 1.69 |
Expenses including reductions | 1.54 | 1.56 | 1.58 | 1.52 | 1.69 |
Net investment income | 0.49 | 0.65 | 0.24 | 0.65 | 2.02 |
Portfolio turnover (%) | 59 | 59 | 57 | 2174 | 50 |
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 | Increase in portfolio turnover rate resulted from repositioning of the portfolio during the period in accordance with investment policy changes approved by the Board of Trustees. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK Multi-Asset Absolute Return Fund | 25 |
CLASS C SHARES Period ended | 7-31-23 | 7-31-22 | 7-31-21 | 7-31-20 | 7-31-19 |
Per share operating performance | |||||
Net asset value, beginning of period | $9.57 | $9.82 | $8.81 | $10.29 | $9.95 |
Net investment income (loss)1 | (0.03) | (0.01) | (0.05) | (0.01) | 0.13 |
Net realized and unrealized gain (loss) on investments | 0.07 | (0.24) | 1.06 | 0.01 | 0.21 |
Total from investment operations | 0.04 | (0.25) | 1.01 | — | 0.34 |
Less distributions | |||||
From net investment income | (0.23) | — | — | (1.48) | — |
Net asset value, end of period | $9.38 | $9.57 | $9.82 | $8.81 | $10.29 |
Total return (%)2,3 | 0.63 | (2.54) | 11.45 | 0.23 | 3.42 |
Ratios and supplemental data | |||||
Net assets, end of period (in millions) | $6 | $12 | $20 | $34 | $52 |
Ratios (as a percentage of average net assets): | |||||
Expenses before reductions | 2.25 | 2.27 | 2.29 | 2.23 | 2.39 |
Expenses including reductions | 2.24 | 2.26 | 2.28 | 2.22 | 2.39 |
Net investment income (loss) | (0.29) | (0.12) | (0.52) | (0.07) | 1.35 |
Portfolio turnover (%) | 59 | 59 | 57 | 2174 | 50 |
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 | Increase in portfolio turnover rate resulted from repositioning of the portfolio during the period in accordance with investment policy changes approved by the Board of Trustees. |
26 | JOHN HANCOCK Multi-Asset Absolute Return Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS I SHARES Period ended | 7-31-23 | 7-31-22 | 7-31-21 | 7-31-20 | 7-31-19 |
Per share operating performance | |||||
Net asset value, beginning of period | $10.10 | $10.27 | $9.19 | $10.67 | $10.22 |
Net investment income1 | 0.08 | 0.10 | 0.05 | 0.09 | 0.22 |
Net realized and unrealized gain (loss) on investments | 0.07 | (0.27) | 1.10 | 0.02 | 0.23 |
Total from investment operations | 0.15 | (0.17) | 1.15 | 0.11 | 0.45 |
Less distributions | |||||
From net investment income | (0.33) | — | (0.07) | (1.59) | — |
Net asset value, end of period | $9.92 | $10.10 | $10.27 | $9.19 | $10.67 |
Total return (%)2 | 1.73 | (1.66) | 12.64 | 1.22 | 4.40 |
Ratios and supplemental data | |||||
Net assets, end of period (in millions) | $201 | $215 | $215 | $274 | $535 |
Ratios (as a percentage of average net assets): | |||||
Expenses before reductions | 1.25 | 1.27 | 1.29 | 1.23 | 1.41 |
Expenses including reductions | 1.24 | 1.26 | 1.28 | 1.22 | 1.40 |
Net investment income | 0.79 | 0.94 | 0.52 | 0.95 | 2.21 |
Portfolio turnover (%) | 59 | 59 | 57 | 2173 | 50 |
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 | Increase in portfolio turnover rate resulted from repositioning of the portfolio during the period in accordance with investment policy changes approved by the Board of Trustees. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK Multi-Asset Absolute Return Fund | 27 |
CLASS R2 SHARES Period ended | 7-31-23 | 7-31-22 | 7-31-21 | 7-31-20 | 7-31-19 |
Per share operating performance | |||||
Net asset value, beginning of period | $9.87 | $10.07 | $9.01 | $10.49 | $10.08 |
Net investment income1 | 0.05 | 0.06 | 0.02 | 0.06 | 0.20 |
Net realized and unrealized gain (loss) on investments | 0.07 | (0.26) | 1.08 | 0.01 | 0.21 |
Total from investment operations | 0.12 | (0.20) | 1.10 | 0.07 | 0.41 |
Less distributions | |||||
From net investment income | (0.30) | — | (0.04) | (1.55) | — |
Net asset value, end of period | $9.69 | $9.87 | $10.07 | $9.01 | $10.49 |
Total return (%)2 | 1.34 | (1.99) | 12.31 | 0.82 | 4.07 |
Ratios and supplemental data | |||||
Net assets, end of period (in millions) | $1 | $1 | $1 | $1 | $1 |
Ratios (as a percentage of average net assets): | |||||
Expenses before reductions | 1.55 | 1.60 | 1.62 | 1.58 | 1.78 |
Expenses including reductions | 1.54 | 1.59 | 1.62 | 1.57 | 1.77 |
Net investment income | 0.47 | 0.58 | 0.21 | 0.62 | 1.99 |
Portfolio turnover (%) | 59 | 59 | 57 | 2173 | 50 |
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 | Increase in portfolio turnover rate resulted from repositioning of the portfolio during the period in accordance with investment policy changes approved by the Board of Trustees. |
28 | JOHN HANCOCK Multi-Asset Absolute Return Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS R6 SHARES Period ended | 7-31-23 | 7-31-22 | 7-31-21 | 7-31-20 | 7-31-19 |
Per share operating performance | |||||
Net asset value, beginning of period | $10.15 | $10.31 | $9.23 | $10.71 | $10.24 |
Net investment income1 | 0.08 | 0.12 | 0.06 | 0.10 | 0.24 |
Net realized and unrealized gain (loss) on investments | 0.09 | (0.28) | 1.10 | 0.02 | 0.23 |
Total from investment operations | 0.17 | (0.16) | 1.16 | 0.12 | 0.47 |
Less distributions | |||||
From net investment income | (0.34) | — | (0.08) | (1.60) | — |
Net asset value, end of period | $9.98 | $10.15 | $10.31 | $9.23 | $10.71 |
Total return (%)2 | 1.74 | (1.55) | 12.70 | 1.34 | 4.59 |
Ratios and supplemental data | |||||
Net assets, end of period (in millions) | $134 | $227 | $130 | $106 | $150 |
Ratios (as a percentage of average net assets): | |||||
Expenses before reductions | 1.14 | 1.16 | 1.19 | 1.12 | 1.29 |
Expenses including reductions | 1.13 | 1.15 | 1.18 | 1.11 | 1.29 |
Net investment income | 0.81 | 1.15 | 0.64 | 1.05 | 2.33 |
Portfolio turnover (%) | 59 | 59 | 57 | 2173 | 50 |
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 | Increase in portfolio turnover rate resulted from repositioning of the portfolio during the period in accordance with investment policy changes approved by the Board of Trustees. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK Multi-Asset Absolute Return Fund | 29 |
CLASS NAV SHARES Period ended | 7-31-23 | 7-31-22 | 7-31-21 | 7-31-20 | 7-31-19 |
Per share operating performance | |||||
Net asset value, beginning of period | $10.15 | $10.31 | $9.23 | $10.71 | $10.23 |
Net investment income1 | 0.09 | 0.11 | 0.06 | 0.10 | 0.21 |
Net realized and unrealized gain (loss) on investments | 0.07 | (0.27) | 1.11 | 0.02 | 0.27 |
Total from investment operations | 0.16 | (0.16) | 1.17 | 0.12 | 0.48 |
Less distributions | |||||
From net investment income | (0.34) | — | (0.09) | (1.60) | — |
Net asset value, end of period | $9.97 | $10.15 | $10.31 | $9.23 | $10.71 |
Total return (%)2 | 1.74 | (1.46) | 12.73 | 1.34 | 4.59 |
Ratios and supplemental data | |||||
Net assets, end of period (in millions) | $100 | $82 | $59 | $53 | $32 |
Ratios (as a percentage of average net assets): | |||||
Expenses before reductions | 1.13 | 1.15 | 1.17 | 1.11 | 1.28 |
Expenses including reductions | 1.12 | 1.14 | 1.17 | 1.10 | 1.27 |
Net investment income | 0.93 | 1.13 | 0.65 | 1.10 | 2.07 |
Portfolio turnover (%) | 59 | 59 | 57 | 2173 | 50 |
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 | Increase in portfolio turnover rate resulted from repositioning of the portfolio during the period in accordance with investment policy changes approved by the Board of Trustees. |
30 | JOHN HANCOCK Multi-Asset Absolute Return Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
ANNUAL REPORT | JOHN HANCOCK Multi-Asset Absolute Return Fund | 31 |
Total value at 7-31-23 | Level 1 quoted price | Level 2 significant observable inputs | Level 3 significant unobservable inputs | |
Investments in securities: | ||||
Assets | ||||
Common stocks | ||||
Brazil | $1,552,013 | $1,552,013 | — | — |
Canada | 3,709,302 | 3,709,302 | — | — |
China | 9,355,487 | 2,035,853 | $7,319,634 | — |
Denmark | 15,433,613 | — | 15,433,613 | — |
France | 10,914,295 | — | 10,914,295 | — |
Germany | 13,786,908 | — | 13,786,908 | — |
Hong Kong | 856,926 | — | 856,926 | — |
India | 1,701,500 | — | 1,701,500 | — |
Indonesia | 1,071,859 | — | 1,071,859 | — |
Ireland | 9,744,344 | 9,744,344 | — | — |
Israel | 2,730,533 | 2,730,533 | — | — |
32 | JOHN HANCOCK Multi-Asset Absolute Return Fund | ANNUAL REPORT |
Total value at 7-31-23 | Level 1 quoted price | Level 2 significant observable inputs | Level 3 significant unobservable inputs | |
Japan | $7,851,276 | — | $7,851,276 | — |
Mexico | 1,282,564 | $1,282,564 | — | — |
Netherlands | 809,431 | — | 809,431 | — |
Philippines | 50,231 | — | 50,231 | — |
South Africa | 1,250,461 | — | 1,250,461 | — |
South Korea | 5,625,137 | 105,508 | 5,519,629 | — |
Spain | 2,658,691 | — | 2,658,691 | — |
Sweden | 466,462 | — | 466,462 | — |
Switzerland | 10,036,996 | 2,560,031 | 7,476,965 | — |
Taiwan | 6,068,563 | 3,612,729 | 2,455,834 | — |
Thailand | 736,986 | — | 736,986 | — |
United Kingdom | 15,163,047 | — | 15,163,047 | — |
United States | 300,420,501 | 300,420,501 | — | — |
Preferred securities | 140,929 | 140,929 | — | — |
U.S. Government and Agency obligations | 19,380,674 | — | 19,380,674 | — |
Foreign government obligations | 145,214 | — | 145,214 | — |
Corporate bonds | 16,028,282 | — | 16,028,282 | — |
Total investments in securities | $458,972,225 | $327,894,307 | $131,077,918 | — |
Derivatives: | ||||
Assets | ||||
Futures | $408,203 | $408,203 | — | — |
Forward foreign currency contracts | 2,509,571 | — | $2,509,571 | — |
Liabilities | ||||
Futures | (12,680,090) | (12,680,090) | — | — |
Forward foreign currency contracts | (8,795,591) | — | (8,795,591) | — |
Level 3 includes securities valued at $0. Refer to Fund’s investments. |
ANNUAL REPORT | JOHN HANCOCK Multi-Asset Absolute Return Fund | 33 |
34 | JOHN HANCOCK Multi-Asset Absolute Return Fund | ANNUAL REPORT |
July 31, 2023 | July 31, 2022 | |
Ordinary income | $18,761,730 | — |
ANNUAL REPORT | JOHN HANCOCK Multi-Asset Absolute Return Fund | 35 |
36 | JOHN HANCOCK Multi-Asset Absolute Return Fund | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK Multi-Asset Absolute Return Fund | 37 |
Risk | Statement of assets and liabilities location | Financial instruments location | Assets derivatives fair value | Liabilities derivatives fair value |
Interest rate | Receivable/payable for futures variation margin1 | Futures | $408,203 | $(5,167,157) |
Equity | Receivable/payable for futures variation margin1 | Futures | — | (7,512,933) |
Currency | Unrealized appreciation (depreciation) on forward foreign currency contracts | Forward foreign currency contracts | 2,509,571 | (8,795,591) |
$2,917,774 | $(21,475,681) |
1 | Reflects cumulative appreciation/depreciation on open futures as disclosed in the Derivatives section of Fund’s investments. Only the year end variation margin receivable/payable is separately reported on the Statement of assets and liabilities. |
Statement of operations location - Net realized gain (loss) on: | ||||
Risk | Futures contracts | Forward foreign currency contracts | Swap contracts | Total |
Interest rate | $(19,269,137) | — | — | $(19,269,137) |
Currency | — | $(13,278,944) | — | (13,278,944) |
Credit | — | — | $(1,528,686) | (1,528,686) |
Equity | (10,661,928) | — | — | (10,661,928) |
Total | $(29,931,065) | $(13,278,944) | $(1,528,686) | $(44,738,695) |
Statement of operations location - Change in net unrealized appreciation (depreciation) of: | ||||
Risk | Futures contracts | Forward foreign currency contracts | Swap contracts | Total |
Interest rate | $(4,775,258) | — | — | $(4,775,258) |
Currency | — | $(10,394,875) | — | (10,394,875) |
Credit | — | — | $1,094,096 | 1,094,096 |
Equity | 654,087 | — | — | 654,087 |
Total | $(4,121,171) | $(10,394,875) | $1,094,096 | $(13,421,950) |
38 | JOHN HANCOCK Multi-Asset Absolute Return Fund | ANNUAL REPORT |
Class | Expense reduction |
Class A | $3,018 |
Class C | 645 |
Class I | 14,445 |
Class R2 | 70 |
Class | Expense reduction |
Class R6 | $12,876 |
Class NAV | 6,712 |
Total | $37,766 |
ANNUAL REPORT | JOHN HANCOCK Multi-Asset Absolute Return Fund | 39 |
Class | Rule 12b-1 Fee | Service fee |
Class A | 0.30% | — |
Class C | 1.00% | — |
Class R2 | 0.25% | 0.25% |
Class | Distribution and service fees | Transfer agent fees |
Class A | $125,143 | $48,604 |
Class C | 89,479 | 10,378 |
Class I | — | 232,489 |
Class R2 | 3,991 | 80 |
Class R6 | — | 15,155 |
Total | $218,613 | $306,706 |
40 | JOHN HANCOCK Multi-Asset Absolute Return Fund | ANNUAL REPORT |
Borrower or Lender | Weighted Average Loan Balance | Days Outstanding | Weighted Average Interest Rate | Interest Income (Expense) |
Borrower | $13,500,000 | 6 | 3.305% | ($7,436) |
Year Ended 7-31-23 | Year Ended 7-31-22 | |||
Shares | Amount | Shares | Amount | |
Class A shares | ||||
Sold | 772,654 | $7,493,368 | 1,163,249 | $11,625,746 |
Distributions reinvested | 132,149 | 1,243,521 | — | — |
Repurchased | (1,119,204) | (10,780,843) | (1,160,966) | (11,625,128) |
Net increase (decrease) | (214,401) | $(2,043,954) | 2,283 | $618 |
Class C shares | ||||
Sold | 70,374 | $650,520 | 107,580 | $1,028,212 |
Distributions reinvested | 25,990 | 236,767 | — | — |
Repurchased | (759,644) | (7,093,782) | (807,512) | (7,792,112) |
Net decrease | (663,280) | $(6,206,495) | (699,932) | $(6,763,900) |
Class I shares | ||||
Sold | 5,829,430 | $57,021,651 | 7,133,332 | $72,944,420 |
Distributions reinvested | 646,711 | 6,182,558 | — | — |
Repurchased | (7,551,040) | (74,086,872) | (6,776,442) | (67,888,122) |
Net increase (decrease) | (1,074,899) | $(10,882,663) | 356,890 | $5,056,298 |
Class R2 shares | ||||
Sold | 3,188 | $30,589 | 7,935 | $79,438 |
Distributions reinvested | 2,861 | 26,780 | — | — |
Repurchased | (23,249) | (220,992) | (28,173) | (279,289) |
Net decrease | (17,200) | $(163,623) | (20,238) | $(199,851) |
Class R6 shares | ||||
Sold | 3,160,079 | $31,166,141 | 13,504,285 | $140,755,616 |
Distributions reinvested | 718,413 | 6,896,761 | — | — |
Repurchased | (12,828,830) | (125,956,351) | (3,750,725) | (37,614,541) |
Net increase (decrease) | (8,950,338) | $(87,893,449) | 9,753,560 | $103,141,075 |
ANNUAL REPORT | JOHN HANCOCK Multi-Asset Absolute Return Fund | 41 |
Year Ended 7-31-23 | Year Ended 7-31-22 | |||
Shares | Amount | Shares | Amount | |
Class NAV shares | ||||
Sold | 2,881,850 | $28,434,493 | 2,661,925 | $26,944,677 |
Distributions reinvested | 340,895 | 3,272,596 | — | — |
Repurchased | (1,254,349) | (12,369,471) | (310,469) | (3,245,989) |
Net increase | 1,968,396 | $19,337,618 | 2,351,456 | $23,698,688 |
Total net increase (decrease) | (8,951,722) | $(87,852,566) | 11,744,019 | $124,932,928 |
Fund | Affiliated Concentration |
John Hancock Funds II Alternative Asset Allocation Fund | 20.7% |
42 | JOHN HANCOCK Multi-Asset Absolute Return Fund | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK MULTI-ASSET ABSOLUTE RETURN FUND | 43 |
44 | JOHN HANCOCK MULTI-ASSET ABSOLUTE RETURN FUND | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK MULTI-ASSET ABSOLUTE RETURN FUND | 45 |
(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; |
(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; |
46 | JOHN HANCOCK MULTI-ASSET ABSOLUTE RETURN FUND | ANNUAL REPORT |
(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. |
ANNUAL REPORT | JOHN HANCOCK MULTI-ASSET ABSOLUTE RETURN FUND | 47 |
(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 |
(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. |
48 | JOHN HANCOCK MULTI-ASSET ABSOLUTE RETURN FUND | ANNUAL REPORT |
(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. |
ANNUAL REPORT | JOHN HANCOCK MULTI-ASSET ABSOLUTE RETURN FUND | 49 |
(1) | the Subadvisor has extensive experience and demonstrated skills as a manager; |
(2) | the performance of the fund has generally been in line with or outperformed the historical performance of comparable funds and 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 |
50 | JOHN HANCOCK MULTI-ASSET ABSOLUTE RETURN FUND | ANNUAL REPORT |
(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. |
ANNUAL REPORT | JOHN HANCOCK MULTI-ASSET ABSOLUTE RETURN FUND | 51 |
• | 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; |
52 | JOHN HANCOCK MULTI-ASSET ABSOLUTE RETURN FUND | ANNUAL REPORT |
• | The Fund did not experience any breaches of the 15% limit on illiquid investments, or any applicable HLIM, that would require reporting to the Securities and Exchange Commission; |
• | 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. |
ANNUAL REPORT | JOHN HANCOCK MULTI-ASSET ABSOLUTE RETURN FUND | 53 |
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 | 186 |
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 | 183 |
Trustee | ||
Board Member, United of Omaha Life Insurance Company (since 2022). Board Member, Mutual of Omaha Investor Services, Inc. (since 2022). 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). | ||
William H. Cunningham,2 Born: 1944 | 2012 | 184 |
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). | ||
Noni L. Ellison,* Born: 1971 | 2022 | 183 |
Trustee | ||
Senior Vice President, General Counsel & Corporate Secretary, Tractor Supply Company (rural lifestyle retailer) (since 2021); General Counsel, Chief Compliance Officer & Corporate Secretary, Carestream Dental, L.L.C.(2017–2021); Associate General Counsel & Assistant Corporate Secretary, W.W. Grainger, Inc. (global industrial supplier) (2015–2017); Board Member, Goodwill of North Georgia, 2018 (FY2019)–2020 (FY2021); Board Member, Howard University School of Law Board of Visitors (since 2021); Board Member, University of Chicago Law School Board of Visitors (since 2016); Board member, Children’s Healthcare of Atlanta Foundation Board (2021–present). Trustee of various trusts within the John Hancock Fund Complex (since 2022). | ||
Grace K. Fey, Born: 1946 | 2008 | 186 |
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). | ||
Dean C. Garfield,* Born: 1968 | 2022 | 183 |
Trustee | ||
Vice President, Netflix, Inc. (since 2019); President & Chief Executive Officer, Information Technology Industry Council (2009–2019); NYU School of Law Board of Trustees (since 2021); Member, U.S. Department of Transportation, Advisory Committee on Automation (since 2021); President of the United States Trade Advisory Council (2010–2018); Board Member, College for Every Student (2017–2021); Board Member, The Seed School of Washington, D.C. (2012–2017). Trustee of various trusts within the John Hancock Fund Complex (since 2022). |
54 | JOHN HANCOCK MULTI-ASSET ABSOLUTE RETURN FUND | ANNUAL REPORT |
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 |
Deborah C. Jackson, Born: 1952 | 2012 | 185 |
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). | ||
Patricia Lizarraga,2,* Born: 1966 | 2022 | 183 |
Trustee | ||
Founder, Chief Executive Officer, Hypatia Capital Group (advisory and asset management company) (since 2007); Independent Director, Audit Committee Chair, and Risk Committee Member, Credicorp, Ltd. (since 2017); Independent Director, Audit Committee Chair, Banco De Credito Del Peru (since 2017); Trustee, Museum of Art of Lima (since 2009). Trustee of various trusts within the John Hancock Fund Complex (since 2022). | ||
Steven R. Pruchansky, Born: 1944 | 2012 | 183 |
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 | 183 |
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 | 183 |
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). |
ANNUAL REPORT | JOHN HANCOCK MULTI-ASSET ABSOLUTE RETURN FUND | 55 |
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 | 184 |
Non-Independent Trustee | ||
Global Head of Retail for Manulife (since 2022); Head of Wealth and Asset Management, United States and Europe, for John Hancock and Manulife (2018-2023); Director and Chairman, John Hancock Investment Management LLC (since 2005, including prior positions); Director and Chairman, John Hancock Variable Trust Advisers LLC (since 2006, including prior positions); Director and Chairman, John Hancock Investment Management Distributors LLC (since 2004, including prior positions); President of various trusts within the John Hancock Fund Complex (2007-2023, including prior positions). Trustee of various trusts within the John Hancock Fund Complex (since 2017). | ||
Paul Lorentz,† Born: 1968 | 2022 | 183 |
Non-Independent Trustee | ||
Global Head, Manulife Wealth and Asset Management (since 2017); General Manager, Manulife, Individual Wealth Management and Insurance (2013–2017); President, Manulife Investments (2010–2016). Trustee of various trusts within the John Hancock Fund Complex (since 2022). |
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 |
Kristie M. Feinberg, Born: 1975 | 2023 |
President | |
Head of Wealth & Asset Management, U.S. and Europe, for John Hancock and Manulife (since 2023); CFO and Global Head of Strategy, Manulife Investment Management (2021-2023, including prior positions); CFO Americas & Global Head of Treasury, Invesco, Ltd., Invesco US (2019-2020, including prior positions); Senior Vice President, Corporate Treasurer and Business Controller, Oppenheimer Funds (2001-2019, including prior positions); President of various trusts within the John Hancock Fund Complex (since 2023). | |
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). |
56 | JOHN HANCOCK MULTI-ASSET ABSOLUTE RETURN FUND | ANNUAL REPORT |
Principal officers who are not Trustees (continued) | |
Name, year of birth Position(s) held with Trust Principal occupation(s) during past 5 years | Current Position(s) with the Trust since |
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). |
1 | Each Trustee holds office until his or her successor is duly 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. |
* | Elected to serve as Independent Trustee effective as of September 9, 2022. |
† | Elected to serve as Non-Independent Trustee effective as of September 9, 2022. |
ANNUAL REPORT | JOHN HANCOCK MULTI-ASSET ABSOLUTE RETURN FUND | 57 |
Steven R. Pruchansky, Vice Chairperson
Andrew G. Arnott†
James R. Boyle
William H. Cunningham*
Grace K. Fey
Noni L. Ellison^
Dean C. Garfield^
Deborah C. Jackson
Patricia Lizarraga*,^
Paul Lorentz‡
Frances G. Rathke*
Gregory A. Russo
President
Chief Financial Officer
Treasurer
Secretary and Chief Legal Officer
Chief Compliance Officer
Kurt Kongsted
Dr. Claus Vorm
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 |
58 | JOHN HANCOCK MULTI-ASSET ABSOLUTE RETURN FUND | ANNUAL REPORT |
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200 Berkeley Street, Boston, MA 02116-5010, 800-225-5291, jhinvestments.com
MF3049094 | 395A 7/23 |
ITEM 2. CODE OF ETHICS.
(a)As of the end of the fiscal year July 31, 2023 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 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, 2023 and 2022. These fees were billed to the registrant and were approved by the registrant's audit committee.
Fund | July 31, 2023 |
| July 31, 2022 |
Fundamental All Cap Core Fund | $48,764 | $ | 47,702 |
Multi-Asset Absolute Return Fund | 107,529 |
| 110,490 |
Total | $156,293 | $ | 158,192 |
(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, 2023 |
| July 31, 2022 |
Fundamental All Cap Core Fund | $612 | $ | 776 |
Multi-Asset Absolute Return Fund | 612 |
| 776 |
Total | $1,224 | $ | 1,552 |
Amounts billed to control affiliates were $127,376 and $119,500 for the fiscal years ended July 31, 2023 and 2022, 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, 2023 and 2022. 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, 2023 |
| July 31, 2022 |
Fundamental All Cap Core Fund | $6,566 | $ | 4,110 |
Multi-Asset Absolute Return Fund | 10,047 |
| 4,220 |
Total | $16,613 | $ | 8,330 |
(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, 2023 and 2022:
Fund | July 31, 2023 |
| July 31, 2022 | |
Fundamental All Cap Core Fund | $ 0 | $ |
| 362 |
Multi-Asset Absolute Return Fund | 0 |
|
| 362 |
Total | $0 |
| $ | 724 |
(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, 2023, 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 $1,272,994 for the fiscal year ended July 31, 2023 and $962,138 for the fiscal year ended July 31, 2022.
(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.
(i)Not applicable
(j)Not applicable
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
Peter S. Burgess – retired effective December 31, 2022
William H. Cunningham
Patricia Lizarranga, effective September 20, 2022
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.
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/ Kristie M. Feinberg
Kristie M. Feinberg
President
Date: September 7, 2023
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/ Kristie M. Feinberg
Kristie M. Feinberg
President
Date: September 7, 2023
/s/ Charles A. Rizzo
Charles A. Rizzo
Chief Financial Officer
Date: September 7, 2023