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 811-23027
John Hancock Collateral Trust
(Exact name of registrant as specified in charter)
200 Berkeley Street, Boston, Massachusetts 02116 (Address of principal executive offices) (Zip code)
Salvatore Schiavone
Treasurer
200 Berkeley Street
Boston, Massachusetts 02116
(Name and address of agent for service) Registrant's telephone number, including area code: 617-543-9634
Date of fiscal year end: | December 31 |
Date of reporting period: | December 31, 2023 |
ITEM 1. REPORTS TO STOCKHOLDERS.
ANNUAL REPORT | JOHN HANCOCK COLLATERAL TRUST | 2 |
3 | JOHN HANCOCK COLLATERAL TRUST | ANNUAL REPORT |
TOP 10 ISSUERS AS OF 12/31/2023 (% of net assets) | |
Federal Farm Credit Bank, 5.468% to 5.670%, 1-22-24 to 3-20-25 | 7.3 |
Federal Home Loan Bank, 4.803% to 5.623%, 2-2-24 to 1-30-25 | 5.8 |
The Toronto-Dominion Bank, 5.204% to 6.325%, 2-2-24 to 7-31-24 | 5.7 |
Old Line Funding LLC, 5.091% to 5.952%, 1-18-24 to 5-6-24 | 4.5 |
Atlantic Asset Securitization LLC, 5.551% to 5.844%, 1-3-24 to 6-5-24 | 3.8 |
Canadian Imperial Bank of Commerce, 5.387% to 5.985%, 1-2-24 to 5-23-24 | 3.1 |
Toyota Motor Credit Corp., 5.408% to 5.939%, 1-11-24 to 10-16-24 | 2.4 |
Chariot Funding LLC, 5.456% to 5.552%, 1-5-24 to 1-17-24 | 2.4 |
Royal Bank of Canada, 5.798% to 6.176%, 1-19-24 to 10-16-24 | 2.3 |
Bank of America, 5.574% to 6.130%, 2-9-24 to 6-14-24 | 2.2 |
TOTAL | 39.5 |
ANNUAL REPORT | JOHN HANCOCK COLLATERAL TRUST | 4 |
5 | JOHN HANCOCK COLLATERAL TRUST | ANNUAL REPORT |
Account value on 7-1-2023 | Ending value on 12-31-2023 | Expenses paid during 12-31-20231 | Annualized expense ratio | ||
Actual expenses/actual returns | $1,000.00 | $1,028.00 | $0.46 | 0.09% | |
Hypothetical example | 1,000.00 | 1,024.80 | 0.46 | 0.09% |
1 | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
ANNUAL REPORT | JOHN HANCOCK COLLATERAL TRUST | 6 |
Maturity date | Yield (%) | Par value^ | Value | ||
Commercial paper 34.1% | $800,700,995 | ||||
(Cost $801,020,993) | |||||
Atlantic Asset Securitization LLC | 01-03-24 to 06-05-24 | 5.551 to 5.844 | 93,700,000 | 93,005,410 | |
Barclays Bank PLC | 09-03-24 | 5.811 | 1,250,000 | 1,199,583 | |
Barclays Capital, Inc. | 08-16-24 | 6.115 | 5,000,000 | 4,832,875 | |
BMW US Capital LLC | 01-16-24 | 5.429 | 20,000,000 | 19,946,505 | |
BofA Securities, Inc. | 03-07-24 | 5.574 | 15,000,000 | 14,843,226 | |
Canadian Imperial Bank of Commerce | 01-02-24 to 02-15-24 | 5.387 to 5.586 | 60,000,000 | 59,898,595 | |
Cargill, Inc. | 01-02-24 | 5.387 | 44,100,000 | 44,073,792 | |
Chariot Funding LLC | 01-05-24 to 01-17-24 | 5.456 to 5.552 | 56,500,000 | 56,407,016 | |
Gotham Funding Corp. | 01-05-24 to 01-31-24 | 5.602 to 5.675 | 25,000,000 | 24,935,136 | |
John Deere Financial, Inc. | 01-16-24 to 01-23-24 | 5.490 to 5.505 | 12,325,000 | 12,289,804 | |
JP Morgan Securities LLC | 03-25-24 | 5.702 | 450,000 | 444,104 | |
JP Morgan Securities LLC (Overnight SOFR + 0.700%) (A) | 06-05-24 | 6.175 | 25,000,000 | 25,000,000 | |
Jupiter Securitization Company LLC | 01-02-24 | 5.428 | 4,000,000 | 3,997,630 | |
Jupiter Securitization Company LLC (Overnight SOFR + 0.330%) (A) | 04-18-24 | 5.797 | 20,000,000 | 20,006,738 | |
Jupiter Securitization Company LLC (Overnight SOFR + 0.410%) (A) | 07-10-24 | 5.880 | 20,000,000 | 20,000,681 | |
Los Angeles County Metropolitan Transportation Authority | 01-22-24 | 5.430 | 12,500,000 | 12,500,591 | |
Macquarie Bank, Ltd. | 01-16-24 to 02-07-24 | 5.243 to 5.719 | 17,200,000 | 17,116,090 | |
Manhattan Asset Funding Company LLC | 01-05-24 to 04-10-24 | 5.485 to 5.819 | 20,196,000 | 20,073,478 | |
Microsoft Corp. | 01-26-24 | 5.406 | 10,000,000 | 9,958,869 | |
MUFG Bank, Ltd. | 09-09-24 | 5.480 | 20,000,000 | 19,277,925 | |
National Rural Utilities Cooperative Finance Corp. | 01-10-24 | 5.566 | 25,000,000 | 24,955,568 | |
NSTAR Electric Company | 01-02-24 | 5.448 | 28,000,000 | 27,983,444 | |
Old Line Funding LLC (Overnight SOFR + 0.310%) (A) | 03-15-24 | 5.779 | 25,000,000 | 25,000,000 | |
Old Line Funding LLC (Overnight SOFR + 0.420%) (A) | 05-06-24 | 5.888 | 10,000,000 | 10,005,184 | |
Old Line Funding LLC (Overnight SOFR + 0.480%) (A) | 02-16-24 | 5.952 | 25,000,000 | 25,000,000 | |
Old Line Funding LLC | 01-18-24 to 01-26-24 | 5.091 to 5.440 | 18,000,000 | 17,939,355 | |
Pfizer, Inc. | 06-26-24 to 08-30-24 | 5.488 to 5.567 | 35,800,000 | 34,615,449 |
7 | JOHN HANCOCK COLLATERAL TRUST | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Maturity date | Yield (%) | Par value^ | Value | ||
Philip Morris International, Inc. | 01-03-24 | 5.428 | 50,000,000 | $49,962,798 | |
Province of British Columbia | 02-07-24 | 5.610 | 5,000,000 | 4,970,426 | |
Province of Quebec | 01-19-24 to 02-02-24 | 5.411 to 5.452 | 4,620,000 | 4,600,157 | |
Royal Bank of Canada | 10-16-24 | 5.983 | 5,000,000 | 4,795,603 | |
Salt River Project Agricultural Improvement & Power District | 01-03-24 to 02-15-24 | 5.513 to 5.663 | 30,000,000 | 29,746,073 | |
The Trustees of Princeton University | 04-22-24 to 04-29-24 | 5.564 to 5.567 | 25,000,000 | 25,005,547 | |
Thunder Bay Funding LLC (Overnight SOFR + 0.250%) (A) | 02-09-24 | 5.718 | 25,000,000 | 25,000,000 | |
Thunder Bay Funding LLC | 01-23-24 to 02-27-24 | 5.597 to 5.647 | 3,335,000 | 3,321,303 | |
Trinity Health Corp. | 01-03-24 | 5.570 | 7,000,000 | 6,994,850 | |
Yale University | 01-17-24 | 5.572 | 1,000,000 | 997,190 | |
U.S. Government Agency 16.3% | $381,487,610 | ||||
(Cost $381,487,032) | |||||
Federal Agricultural Mortgage Corp. (Overnight SOFR + 0.200%) (A) | 04-04-25 | 5.670 | 10,000,000 | 10,014,519 | |
Federal Farm Credit Bank (Prime rate - 3.140%) (A) | 04-12-24 | 5.468 | 35,000,000 | 34,995,932 | |
Federal Farm Credit Bank (Prime rate - 3.080%) (A) | 06-13-24 | 5.505 | 25,000,000 | 25,000,709 | |
Federal Farm Credit Bank (Prime rate - 3.085%) (A) | 08-08-24 | 5.507 | 35,000,000 | 34,998,090 | |
Federal Farm Credit Bank (Overnight SOFR + 0.120%) (A) | 01-22-24 | 5.557 | 5,000,000 | 5,000,245 | |
Federal Farm Credit Bank (Overnight SOFR + 0.050%) (A) | 02-23-24 | 5.567 | 1,000,000 | 1,000,044 | |
Federal Farm Credit Bank (Overnight SOFR + 0.060%) (A) | 04-29-24 | 5.590 | 20,000,000 | 20,002,508 | |
Federal Farm Credit Bank (Prime rate - 2.980%) (A) | 01-09-25 | 5.593 | 7,000,000 | 7,005,210 | |
Federal Farm Credit Bank (Overnight SOFR + 0.140%) (A) | 11-07-24 | 5.612 | 4,000,000 | 4,003,177 | |
Federal Farm Credit Bank (Overnight SOFR + 0.180%) (A) | 03-20-25 | 5.651 | 5,000,000 | 5,005,800 | |
Federal Farm Credit Bank (Overnight SOFR + 0.200%) (A) | 12-05-24 | 5.670 | 3,000,000 | 3,004,274 | |
Federal Farm Credit Bank (U.S. Federal Funds Effective Rate + 0.070%) (A) | 09-16-24 to 10-04-24 | 5.476 to 5.544 | 27,975,000 | 27,970,786 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK COLLATERAL TRUST | 8 |
Maturity date | Yield (%) | Par value^ | Value | ||
Federal Farm Credit Bank (Overnight SOFR + 0.040%) (A) | 02-05-24 to 02-09-24 | 5.566 | 2,300,000 | $2,300,032 | |
Federal Home Loan Bank (Overnight SOFR + 0.045%) (A) | 02-02-24 | 5.521 | 25,000,000 | 25,000,344 | |
Federal Home Loan Bank (Overnight SOFR + 0.050%) (A) | 03-04-24 | 5.525 | 40,000,000 | 40,002,052 | |
Federal Home Loan Bank (Overnight SOFR + 0.120%) (A) | 03-06-24 | 5.596 | 6,555,000 | 6,556,181 | |
Federal Home Loan Bank (Overnight SOFR + 0.150%) (A) | 01-30-25 | 5.623 | 5,000,000 | 5,004,003 | |
Federal Home Loan Bank | 02-07-24 to 01-22-25 | 4.803 to 5.556 | 61,195,000 | 60,635,110 | |
Federal Home Loan Mortgage Corp. | 06-11-24 to 06-17-24 | 5.346 to 5.440 | 50,000,000 | 49,965,464 | |
Federal National Mortgage Association | 01-26-24 to 04-03-24 | 4.862 to 5.242 | 14,044,000 | 14,023,130 | |
Corporate interest-bearing obligations 13.3% | $310,801,988 | ||||
(Cost $310,690,998) | |||||
Apple, Inc. | 02-09-24 | 5.579 | 1,191,000 | 1,187,446 | |
Bank of America Corp. (Overnight SOFR + 0.410%) (A) | 06-14-24 | 6.130 | 10,939,000 | 10,923,532 | |
Bank of Montreal (SOFR Compounded Index + 0.320%) (A) | 07-09-24 | 6.068 | 827,000 | 826,367 | |
Bank of Montreal (SOFR Compounded Index + 0.710%) (A) | 03-08-24 | 6.310 | 3,460,000 | 3,462,023 | |
Bank of Montreal | 02-05-24 to 09-14-24 | 5.894 to 6.081 | 24,667,000 | 24,501,632 | |
Barclays Bank PLC | 03-28-24 | 5.478 | 5,000,000 | 4,975,020 | |
BNP Paribas SA (B) | 01-10-24 | 5.930 | 400,000 | 399,824 | |
Children’s Hospital Medical Center | 01-03-24 | 5.374 | 10,000,000 | 10,000,000 | |
Cooperatieve Rabobank UA (SOFR Compounded Index + 0.300%) (A) | 01-12-24 | 5.738 | 9,137,000 | 9,137,318 | |
Mitsubishi UFJ Financial Group, Inc. | 03-07-24 to 07-18-24 | 5.715 to 5.896 | 4,184,000 | 4,144,677 | |
MUFG Bank, Ltd. (B) | 03-10-24 | 5.611 | 6,000,000 | 5,978,222 | |
Old Line Funding LLC (Overnight SOFR + 0.400%) (A)(B) | 03-01-24 | 5.870 | 25,000,000 | 25,000,000 | |
PNC Bank NA | 08-27-24 | 5.480 | 1,350,000 | 1,323,226 | |
Private Export Funding Corp. | 01-15-24 to 11-15-24 | 5.289 to 5.585 | 11,806,000 | 11,505,410 | |
Royal Bank of Canada (SOFR Compounded Index + 0.300%) (A) | 01-19-24 | 5.798 | 6,912,000 | 6,912,000 |
9 | JOHN HANCOCK COLLATERAL TRUST | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Maturity date | Yield (%) | Par value^ | Value | ||
Royal Bank of Canada | 07-16-24 | 5.877 | 10,000,000 | $9,846,317 | |
Royal Bank of Canada (U.S. Federal Funds Effective Rate + 0.610%) (A)(B) | 03-19-24 | 6.017 | 10,000,000 | 10,009,317 | |
Royal Bank of Canada (SOFR Compounded Index + 0.360%) (A) | 07-29-24 | 6.078 | 3,393,000 | 3,390,085 | |
Royal Bank of Canada (Overnight SOFR + 0.700%) (A)(B) | 04-02-24 | 6.176 | 20,000,000 | 20,028,325 | |
The Bank of New York Mellon Corp. | 02-04-24 to 04-26-24 | 5.226 to 5.442 | 26,223,000 | 25,855,241 | |
The Bank of Nova Scotia (SOFR Compounded Index + 0.445%) (A) | 04-15-24 | 5.947 | 4,878,000 | 4,878,331 | |
The Bank of Nova Scotia | 02-11-24 to 07-31-24 | 5.886 to 5.947 | 9,982,000 | 9,904,903 | |
The Goldman Sachs Group, Inc. (Overnight SOFR + 0.505%) (A) | 09-10-24 | 6.342 | 24,884,000 | 24,844,141 | |
The Goldman Sachs Group, Inc. (Overnight SOFR + 0.486%) (A) | 10-21-24 | 6.379 | 15,491,000 | 15,471,481 | |
The Toronto-Dominion Bank (Overnight SOFR + 0.355%) (A) | 03-04-24 | 6.325 | 1,870,000 | 1,869,469 | |
Toyota Motor Credit Corp. | 04-17-24 | 5.408 | 1,000,000 | 992,491 | |
Toyota Motor Credit Corp. (Overnight SOFR + 0.620%) (A) | 03-22-24 | 5.661 | 4,965,000 | 4,969,168 | |
Toyota Motor Credit Corp. (Overnight SOFR + 0.380%) (A) | 02-22-24 | 5.747 | 4,425,000 | 4,425,488 | |
Toyota Motor Credit Corp. (SOFR Compounded Index + 0.330%) (A) | 01-11-24 | 5.820 | 15,026,000 | 15,025,744 | |
Toyota Motor Credit Corp. (SOFR Compounded Index + 0.260%) (A) | 06-18-24 | 5.880 | 2,663,000 | 2,661,003 | |
Toyota Motor Credit Corp. (Overnight SOFR + 0.520%) (A) | 08-22-24 | 5.918 | 8,161,000 | 8,168,693 | |
Toyota Motor Credit Corp. (Overnight SOFR + 0.290%) (A) | 09-13-24 | 5.921 | 345,000 | 345,019 | |
Toyota Motor Credit Corp. (Overnight SOFR + 0.550%) (A) | 10-16-24 | 5.939 | 19,845,000 | 19,868,740 | |
U.S. Bancorp | 02-05-24 | 5.300 | 6,891,000 | 6,874,650 | |
Westpac Banking Corp. | 02-26-24 | 5.904 | 1,100,000 | 1,096,685 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK COLLATERAL TRUST | 10 |
Maturity date | Yield (%) | Par value^ | Value | ||
Certificate of deposit 12.8% | $300,802,288 | ||||
(Cost $300,500,049) | |||||
Bank of America NA | 02-09-24 | 5.809 | 25,000,000 | 25,003,371 | |
Bank of Montreal (Overnight SOFR + 0.650%) (A) | 06-24-24 | 6.124 | 20,000,000 | 20,031,860 | |
Barclays Bank PLC | 06-18-24 to 08-16-24 | 5.625 to 6.075 | 25,000,000 | 25,062,327 | |
BNP Paribas SA | 03-04-24 to 10-17-24 | 5.146 to 6.051 | 35,000,000 | 35,008,459 | |
Canadian Imperial Bank of Commerce | 05-23-24 | 5.985 | 15,000,000 | 15,018,984 | |
Cooperatieve Rabobank UA | 02-27-24 | 5.617 | 10,000,000 | 10,000,000 | |
MUFG Bank, Ltd. | 05-20-24 | 5.786 | 10,000,000 | 10,005,641 | |
Swedbank AB | 02-26-24 | 5.572 | 500,000 | 500,120 | |
Swedbank AB (Overnight SOFR + 0.680%) (A) | 03-20-24 | 6.147 | 25,000,000 | 25,030,834 | |
The Bank of Nova Scotia | 10-18-24 | 6.050 | 5,000,000 | 5,027,348 | |
The Toronto-Dominion Bank (Overnight SOFR + 0.700%) (A) | 03-26-24 to 04-01-24 | 6.166 to 6.175 | 25,000,000 | 25,019,904 | |
The Toronto-Dominion Bank | 02-02-24 to 07-31-24 | 5.204 to 6.069 | 105,000,000 | 105,093,440 | |
Time deposits 2.1% | $50,000,000 | ||||
(Cost $50,000,000) | |||||
ANZ Banking Group | 01-02-24 | 5.404 | 50,000,000 | 50,000,000 | |
U.S. Government 1.7% | $39,976,146 | ||||
(Cost $39,996,938) | |||||
U.S. Treasury Note (3 month USBMMY - 0.075%) (A) | 04-30-24 | 5.327 | 20,000,000 | 19,988,625 | |
U.S. Treasury Note (3 month USBMMY + 0.037%) (A) | 07-31-24 | 5.475 | 20,000,000 | 19,987,521 | |
Par value^ | Value | ||||
Repurchase agreement 19.5% | $456,134,089 | ||||
(Cost $456,134,089) | |||||
Repurchase Agreement with State Street Corp. dated 12-29-23 at 2.630% to be repurchased at $7,136,174 on 1-2-24, collateralized by $6,039,000 U.S. Treasury Inflation Indexed Notes, 0.500% due 4-15-24 (valued at $7,276,805) | 7,134,089 | 7,134,089 | |||
Repurchase Agreement with State Street Corp. dated 12-29-23 at 4.950% to be repurchased at $50,027,500 on 1-2-24, collateralized by $42,324,800 U.S. Treasury Inflation Indexed Notes, 0.500% due 4-15-24 (valued at $51,000,052) | 50,000,000 | 50,000,000 | |||
Repurchase Agreement with State Street Corp. dated 12-29-23 at 5.310% to be repurchased at $399,235,410 on 1-2-24, collateralized by $332,186,200 U.S. Treasury Inflation Indexed Notes, 0.125% due 7-15-26 (valued at $406,980,076) | 399,000,000 | 399,000,000 |
11 | JOHN HANCOCK COLLATERAL TRUST | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Par value^ | Value | ||||
Total investments (Cost $2,339,830,099) 99.8% | $2,339,903,116 | ||||
Other assets and liabilities, net 0.2% | 5,049,506 | ||||
Total net assets 100.0% | $2,344,952,622 |
The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund. | |
^All par values are denominated in U.S. dollars unless otherwise indicated. | |
Security Abbreviations and Legend | |
SOFR | Secured Overnight Financing Rate |
USBMMY | U.S. Treasury Bill Money Market Yield |
(A) | Variable rate obligation. |
(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. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK COLLATERAL TRUST | 12 |
Assets | |
Unaffiliated investments, at value (Cost $1,883,696,010) | $1,883,769,027 |
Repurchase agreements, at value (Cost $456,134,089) | 456,134,089 |
Total investments, at value (Cost $2,339,830,099) | 2,339,903,116 |
Interest receivable | 14,845,347 |
Other assets | 177,892 |
Total assets | 2,354,926,355 |
Liabilities | |
Distributions payable | 4,807,062 |
Payable for investments purchased | 4,978,198 |
Payable to affiliates | |
Administrative services fees | 60,783 |
Transfer agent fees | 10,000 |
Trustees’ fees | 3,385 |
Other liabilities and accrued expenses | 114,305 |
Total liabilities | 9,973,733 |
Net assets | $2,344,952,622 |
Net assets consist of | |
Paid-in capital | $2,344,868,628 |
Total distributable earnings (loss) | 83,994 |
Net assets | $2,344,952,622 |
Net asset value per share | |
Based on 234,490,603 shares of beneficial interest outstanding - unlimited number of shares authorized with no par value | $10.00 |
13 | JOHN HANCOCK Collateral Trust | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Investment income | |
Interest | $146,963,221 |
Expenses | |
Investment management fees | 13,943,260 |
Administrative services fees | 584,111 |
Transfer agent fees | 60,000 |
Trustees’ fees | 56,426 |
Custodian fees | 198,711 |
Printing and postage | 36,762 |
Professional fees | 231,443 |
Other | 97,767 |
Total expenses | 15,208,480 |
Less expense reductions | (12,790,556) |
Net expenses | 2,417,924 |
Net investment income | 144,545,297 |
Realized and unrealized gain (loss) | |
Net realized gain (loss) on | |
Unaffiliated investments | (3,757) |
(3,757) | |
Change in net unrealized appreciation (depreciation) of | |
Unaffiliated investments | 1,269,489 |
1,269,489 | |
Net realized and unrealized gain | 1,265,732 |
Increase in net assets from operations | $145,811,029 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK Collateral Trust | 14 |
Year ended 12-31-23 | Year ended 12-31-22 | |
Increase (decrease) in net assets | ||
From operations | ||
Net investment income | $144,545,297 | $47,702,242 |
Net realized loss | (3,757) | (92,550) |
Change in net unrealized appreciation (depreciation) | 1,269,489 | (1,149,644) |
Increase in net assets resulting from operations | 145,811,029 | 46,460,048 |
Distributions to shareholders | ||
From earnings | (144,545,297) | (47,594,958) |
Total distributions | (144,545,297) | (47,594,958) |
Fund share transactions | ||
Shares issued | 41,736,059,851 | 30,223,838,270 |
Distributions reinvested | 94,927,864 | 31,375,123 |
Repurchased | (42,583,568,405) | (28,415,274,889) |
Total from fund share transactions | (752,580,690) | 1,839,938,504 |
Total increase (decrease) | (751,314,958) | 1,838,803,594 |
Net assets | ||
Beginning of year | 3,096,267,580 | 1,257,463,986 |
End of year | $2,344,952,622 | $3,096,267,580 |
Share activity | ||
Shares outstanding | ||
Beginning of year | 309,746,148 | 125,708,716 |
Shares issued | 4,174,925,111 | 3,023,826,612 |
Distributions reinvested | 9,496,015 | 3,139,592 |
Shares repurchased | (4,259,676,671) | (2,842,928,772) |
End of year | 234,490,603 | 309,746,148 |
15 | JOHN HANCOCK Collateral Trust | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Period ended | 12-31-23 | 12-31-22 | 12-31-21 | 12-31-20 | 12-31-19 |
Per share operating performance | |||||
Net asset value, beginning of period | $10.00 | $10.00 | $10.01 | $10.01 | $10.00 |
Net investment income1 | 0.51 | 0.21 | 0.01 | 0.06 | 0.23 |
Net realized and unrealized gain (loss) on investments | —2 | (0.04) | (0.01) | —2 | 0.01 |
Total from investment operations | 0.51 | 0.17 | 0.00 | 0.06 | 0.24 |
Less distributions | |||||
From net investment income | (0.51) | (0.17) | (0.01) | (0.06) | (0.23) |
From net realized gain | — | — | —2 | — | — |
Total distributions | (0.51) | (0.17) | (0.01) | (0.06) | (0.23) |
Net asset value, end of period | $10.00 | $10.00 | $10.00 | $10.01 | $10.01 |
Total return (%)3 | 5.26 | 1.64 | 0.04 | 0.64 | 2.43 |
Ratios and supplemental data | |||||
Net assets, end of period (in millions) | $2,345 | $3,096 | $1,257 | $1,152 | $2,270 |
Ratios (as a percentage of average net assets): | |||||
Expenses before reductions | 0.54 | 0.54 | 0.55 | 0.54 | 0.53 |
Expenses including reductions | 0.09 | 0.09 | 0.10 | 0.09 | 0.08 |
Net investment income | 5.09 | 2.11 | 0.05 | 0.64 | 2.28 |
Portfolio turnover (%) | —4 | —4 | 215 | 965 | 1065 |
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 | Effective November 19, 2021, the fund converted to an institutional prime money market fund, and therefore, portfolio turnover is no longer required. |
5 | The calculation of portfolio turnover excludes amounts from all securities whose maturities or expiration dates at the time of acquisition were one year or less, which represents a significant amount of the investments held by the fund. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK Collateral Trust | 16 |
17 | JOHN HANCOCK Collateral Trust | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK Collateral Trust | 18 |
December 31, 2023 | December 31, 2022 | |
Ordinary income | $144,545,297 | $47,594,958 |
19 | JOHN HANCOCK Collateral Trust | ANNUAL REPORT |
Borrower or Lender | Weighted Average Loan Balance | Days Outstanding | Weighted Average Interest Rate | Interest Income (Expense) |
Lender | $47,583,333 | 6 | 5.400% | $42,821 |
ANNUAL REPORT | JOHN HANCOCK Collateral Trust | 20 |
21 | JOHN HANCOCK COLLATERAL TRUST | ANNUAL REPORT |
Independent Trustees | ||
Name, year of birth Position(s) held with Trust Principal occupation(s) and other directorships during past 5 years | Trustee of the Trust since1 | Number of John Hancock funds overseen by Trustee |
Hassell H. McClellan,2 Born: 1945 | 2015 | 182 |
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 | 178 |
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,3 Born: 1944 | 2015 | 180 |
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 | 178 |
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 (2021–2023). Trustee of various trusts within the John Hancock Fund Complex (since 2022). | ||
Grace K. Fey, Born: 1946 | 2015 | 182 |
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 | 178 |
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); Advisory Board Member of the Block Center for Technology and Society (since 2019). Trustee of various trusts within the John Hancock Fund Complex (since 2022). |
ANNUAL REPORT | JOHN HANCOCK COLLATERAL TRUST | 22 |
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 | 2015 | 180 |
Trustee | ||
President, Cambridge College, Cambridge, Massachusetts (2011-2023); 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). | ||
Steven R. Pruchansky, Born: 1944 | 2015 | 178 |
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,3 Born: 1960 | 2020 | 178 |
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 | 2015 | 178 |
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). |
23 | JOHN HANCOCK COLLATERAL TRUST | ANNUAL REPORT |
Non-Independent Trustees4 | ||
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 | 180 |
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 (2005-2023, including prior positions); Director and Chairman, John Hancock Variable Trust Advisers LLC (2006-2023, including prior positions); Director and Chairman, John Hancock Investment Management Distributors LLC (2004-2023, 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 | 178 |
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 and Asset Management, United States and Europe, for John Hancock and Manulife (since 2023); Director and Chairman, John Hancock Investment Management LLC (since 2023); Director and Chairman, John Hancock Variable Trust Advisers LLC (since 2023); Director and Chairman, John Hancock Investment Management Distributors LLC (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 | 2015 |
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 | 2015 |
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). |
ANNUAL REPORT | JOHN HANCOCK COLLATERAL TRUST | 24 |
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 as of September 26, 2023. |
3 | Member of the Audit Committee. |
4 | The Trustee is a Non-Independent Trustee due to current or former positions with the Advisor and certain affiliates. |
25 | JOHN HANCOCK COLLATERAL TRUST | ANNUAL REPORT |
Steven R. Pruchansky, Vice Chairperson
Andrew G. Arnott†
James R. Boyle
William H. Cunningham*
Noni L. Ellison
Grace K. Fey
Dean C. Garfield
Deborah C. Jackson
Paul Lorentz†
Frances G. Rathke*
Gregory A. Russo
President
Chief Financial Officer
Treasurer
Secretary and Chief Legal Officer
Chief Compliance Officer
Bridget Bruce
Christopher Coccoluto
Michael Lorizio
James Madison
Connor Minnaar, 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 |
ANNUAL REPORT | JOHN HANCOCK COLLATERAL TRUST | 26 |
GOVERNANCE FUNDS
We search the world to find proven portfolio teams with specialized
expertise for every strategy we offer, then we apply robust investment
oversight to ensure they continue to meet our uncompromising
standards and serve the best interests of our shareholders.
a diverse set of investments backed by some of the world’s best
managers, along with strong risk-adjusted returns across asset classes.
200 Berkeley Street, Boston, MA 02116-5010, 800-225-5291, jhinvestments.com
315A 12/23 |
ITEM 2. CODE OF ETHICS.
As of the end of the year, December 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(s) for the audit of the registrant's annual financial statements or services that are normally provided by the accountant(s) in connection with statutory and regulatory filings or engagements amounted to $40,601 for the fiscal year ended December 31, 2023 and $38,909 for the fiscal year ended December 31, 2022. These fees were billed to the registrant and were approved by the registrant's audit committee.
(b) Audit-Related Services
Audit-related service fees amounted to $629 for the fiscal year ended December 31, 2023 and $586 for the fiscal year ended December 31, 2022. These fees were 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 that provides ongoing services to the registrant ("control affiliates"). The nature of the services provided was related to a software licensing fee and internal controls reviews. In addition, amounts billed to control affiliates for service provider internal controls reviews were $127,986 for the fiscal year ended December 31, 2023 and $121,890 for the fiscal year ended December 31, 2022.
(c) Tax Fees
The aggregate fees billed for professional services rendered by the principal accountant(s) for the tax compliance, tax advice and tax planning ("tax fees") amounted to $3,168 for the fiscal year ended December 31, 2023 and $3,061 for the fiscal year ended December 31, 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.
(d) All Other Fees
Other fees billed to the registrant or to the control affiliates amounted to $369 for the fiscal year ended December 31, 2023 and $163 for the fiscal year ended December 31, 2022. The nature of the services comprising all other fees is advisory services provided to the investment manager.
(e)(1) Audit Committee Pre-Approval Policies and Procedures:
The trust's Audit Committee must pre-approve all audit and non-audit services provided by the independent registered public accounting firm (the "Auditor") relating to the operations or financial reporting of the funds. Prior to the commencement of any audit or non-audit services to a fund, the Audit Committee reviews the services to determine whether they are appropriate and permissible under applicable law.
The Trust's Audit Committee has adopted policies and procedures to, among other purposes, provide a framework for the Committee's consideration of audit-related and non-audit services by
the Auditor. The policies and procedures require that any audit-related and non-audit service provided by the Auditor and any non-audit service provided by the Auditor to a fund service provider that relates directly to the operations and financial reporting of a fund are subject to approval by the Audit Committee before such service is provided. Audit-related services provided by the Auditor that are expected to exceed $25,000 per instance/per fund are subject to specific pre-approval by the Audit Committee. Tax services provided by the Auditor that are expected to exceed $30,000 per instance/per fund are subject to specific pre-approval by the Audit Committee.
All audit services, as well as the audit-related and non-audit services that are expected to exceed the amounts stated above, must be approved in advance of provision of the service by formal resolution of the Audit Committee. At the regularly scheduled Audit Committee meetings, the Committee reviews a report summarizing the services, including fees, provided by the Auditor.
(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 December 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 accountant(s) for services rendered to the registrant and rendered to the registrant's control affiliates of the registrant was $1,177,587 for the fiscal year ended December 31, 2023 and $1,145,066 for the fiscal year ended December 31, 2022.
(h)The audit committee of the registrant has considered the non-audit services provided by the registrant's principal accountant(s) to the control affiliates and has determined that the services that were not pre-approved are compatible with maintaining the principal accountant(s)' independence.
(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 William H. Cunningham
Hassell H. McClellan – Member of the Audit Committee as of September 26, 2023
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 and Governance 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 Collateral Trust
By: | /s/ Kristie M. Feinberg |
| ------------------------------ |
| Kristie M. Feinberg |
| President |
Date: | February 16, 2024 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ Kristie M. Feinberg |
| ------------------------------- |
| Kristie M. Feinberg |
| President |
Date: | February 16, 2024 |
By: | /s/ Charles A. Rizzo |
| ------------------------------- |
| Charles A. Rizzo |
| Chief Financial Officer |
Date: | February 16, 2024 |