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 811-00560
John Hancock Investment 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: | March 31 |
Date of reporting period: | September 30, 2022 |
ITEM 1. REPORTS TO STOCKHOLDERS
The Registrant prepared the following semiannual reports to shareholders for the period ended September 30, 2022:
•Diversified Real Assets Fund
•Mid Cap Growth Fund
•Fundamental Equity Income Fund
Manulife Investment Management
John Hancock Investment Management
Head of Wealth and Asset Management,
United States and Europe
SEMIANNUAL REPORT | JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND | 1 |
2 | JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND | SEMIANNUAL REPORT |
TOP 10 HOLDINGS AS OF 9/30/2022 (% of net assets) | |
Prologis, Inc. | 2.6 |
Exxon Mobil Corp. | 2.1 |
Shell PLC | 2.0 |
Chevron Corp. | 1.9 |
Freeport-McMoRan, Inc. | 1.7 |
AvalonBay Communities, Inc. | 1.7 |
Public Storage | 1.7 |
BHP Group, Ltd., ADR | 1.7 |
American Tower Corp. | 1.5 |
Welltower, Inc. | 1.5 |
TOTAL | 18.4 |
Cash and cash equivalents are not included. |
SEMIANNUAL REPORT | JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND | 3 |
COUNTRY COMPOSITION AS OF 9/30/2022 (% of net assets) | |
United States | 55.2 |
Canada | 20.0 |
United Kingdom | 5.8 |
Japan | 3.6 |
Australia | 3.3 |
France | 1.9 |
Hong Kong | 1.4 |
Norway | 1.4 |
Singapore | 1.1 |
Spain | 1.0 |
Other countries | 5.3 |
TOTAL | 100.0 |
4 | JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND | SEMIANNUAL REPORT |
SEMIANNUAL REPORT | JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND | 5 |
Account value on 4-1-2022 | Ending value on 9-30-2022 | Expenses paid during period ended 9-30-20221 | Annualized expense ratio | ||
Class NAV | Actual expenses/actual returns | $1,000.00 | $787.70 | $3.85 | 0.86% |
Hypothetical example | 1,000.00 | 1,020.80 | 4.36 | 0.86% |
1 | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period). |
6 | JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND | SEMIANNUAL REPORT |
Shares | Value | ||||
Common stocks 97.7% | $914,271,495 | ||||
(Cost $876,191,464) | |||||
Communication services 1.5% | 14,363,917 | ||||
Diversified telecommunication services 0.8% | |||||
Cellnex Telecom SA (A)(B) | 120,590 | 3,719,776 | |||
Nippon Telegraph & Telephone Corp. | 129,417 | 3,490,676 | |||
Media 0.0% | |||||
Charter Communications, Inc., Class A (B) | 1,042 | 316,091 | |||
Comcast Corp., Class A | 10,528 | 308,786 | |||
Wireless telecommunication services 0.7% | |||||
KDDI Corp. | 116,100 | 3,394,332 | |||
SK Telecom Company, Ltd. | 88,780 | 3,134,256 | |||
Consumer discretionary 1.0% | 9,028,216 | ||||
Hotels, restaurants and leisure 1.0% | |||||
Hyatt Hotels Corp., Class A (B) | 35,241 | 2,853,111 | |||
Kyoritsu Maintenance Company, Ltd. (C) | 59,000 | 2,437,743 | |||
Mandarin Oriental International, Ltd. (B) | 733,489 | 1,372,537 | |||
Oriental Land Company, Ltd. | 17,436 | 2,364,825 | |||
Energy 29.8% | 278,738,928 | ||||
Energy equipment and services 1.7% | |||||
Aker Solutions ASA | 174,016 | 605,015 | |||
Baker Hughes Company | 54,859 | 1,149,845 | |||
ChampionX Corp. | 74,763 | 1,463,112 | |||
Enerflex, Ltd. (C) | 136,409 | 585,590 | |||
Halliburton Company | 137,124 | 3,375,993 | |||
Helmerich & Payne, Inc. | 27,229 | 1,006,656 | |||
Patterson-UTI Energy, Inc. | 136,923 | 1,599,261 | |||
Schlumberger NV | 145,304 | 5,216,414 | |||
TechnipFMC PLC (B) | 83,901 | 709,802 | |||
Oil, gas and consumable fuels 28.1% | |||||
Advantage Energy, Ltd. (B) | 196,680 | 1,413,858 | |||
Aker BP ASA | 99,387 | 2,852,858 | |||
ARC Resources, Ltd. | 164,240 | 1,972,521 | |||
Arch Resources, Inc. (C) | 6,800 | 806,480 | |||
BP PLC | 2,423,451 | 11,580,144 | |||
Cameco Corp. | 228,929 | 6,075,605 | |||
Canadian Natural Resources, Ltd. | 254,500 | 11,846,636 | |||
Cenovus Energy, Inc. | 539,444 | 8,286,822 | |||
Cheniere Energy, Inc. | 12,253 | 2,032,895 | |||
Chevron Corp. | 123,709 | 17,773,272 | |||
ConocoPhillips | 133,329 | 13,644,890 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND | 7 |
Shares | Value | ||||
Energy (continued) | |||||
Oil, gas and consumable fuels (continued) | |||||
Coterra Energy, Inc. (C) | 205,005 | $5,354,731 | |||
Denbury, Inc. (B) | 9,119 | 786,605 | |||
Devon Energy Corp. | 114,098 | 6,860,713 | |||
DHT Holdings, Inc. | 80,230 | 606,539 | |||
Diamondback Energy, Inc. | 36,058 | 4,343,547 | |||
Enbridge, Inc. | 82,129 | 3,045,316 | |||
Enbridge, Inc. (New York Stock Exchange) (C) | 22,521 | 835,529 | |||
Energy Fuels, Inc. (B)(C) | 64,855 | 395,792 | |||
Enerplus Corp. | 221,348 | 3,134,301 | |||
EOG Resources, Inc. | 84,575 | 9,449,565 | |||
EQT Corp. | 149,001 | 6,071,791 | |||
Equinor ASA | 232,120 | 7,655,023 | |||
Exxon Mobil Corp. | 230,073 | 20,087,674 | |||
Galp Energia SGPS SA | 270,594 | 2,603,480 | |||
Hess Corp. | 36,865 | 4,017,916 | |||
Imperial Oil, Ltd. | 72,573 | 3,142,282 | |||
Kelt Exploration, Ltd. (B) | 327,070 | 1,233,601 | |||
Keyera Corp. (C) | 114,710 | 2,361,713 | |||
Marathon Petroleum Corp. | 70,835 | 7,036,041 | |||
MEG Energy Corp. (B) | 151,048 | 1,690,522 | |||
Neste OYJ | 24,687 | 1,076,090 | |||
NexGen Energy, Ltd. (B)(C) | 534,539 | 1,942,582 | |||
NuVista Energy, Ltd. (B) | 211,910 | 1,504,931 | |||
Occidental Petroleum Corp. | 88,278 | 5,424,683 | |||
PDC Energy, Inc. | 39,033 | 2,255,717 | |||
Pembina Pipeline Corp. | 155,532 | 4,724,453 | |||
Phillips 66 | 54,531 | 4,401,742 | |||
Pioneer Natural Resources Company | 50,219 | 10,873,920 | |||
Shell PLC | 740,304 | 18,365,328 | |||
Suncor Energy, Inc. | 437,037 | 12,307,337 | |||
TC Energy Corp. | 116,311 | 4,684,942 | |||
The Williams Companies, Inc. | 126,242 | 3,614,308 | |||
Tidewater Midstream and Infrastructure, Ltd. (C) | 855,027 | 612,789 | |||
Topaz Energy Corp. (C) | 55,985 | 843,818 | |||
TotalEnergies SE (C) | 143,014 | 6,709,417 | |||
Tourmaline Oil Corp. | 86,923 | 4,517,466 | |||
Valero Energy Corp. | 78,462 | 8,383,665 | |||
Woodside Energy Group, Ltd., ADR (C) | 88,561 | 1,785,390 | |||
Financials 0.3% | 2,780,746 | ||||
Diversified financial services 0.3% | |||||
Berkshire Hathaway, Inc., Class B (B) | 10,414 | 2,780,746 |
8 | JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Shares | Value | ||||
Industrials 2.3% | $21,209,262 | ||||
Commercial services and supplies 0.2% | |||||
Aker Carbon Capture ASA (B) | 120,561 | 154,145 | |||
Park24 Company, Ltd. (B) | 107,600 | 1,396,756 | |||
Construction and engineering 0.9% | |||||
JTOWER, Inc. (B) | 21,800 | 983,581 | |||
Vinci SA | 39,373 | 3,183,719 | |||
WillScot Mobile Mini Holdings Corp. (B) | 110,031 | 4,437,550 | |||
Electrical equipment 0.5% | |||||
Plug Power, Inc. (B) | 12,716 | 267,163 | |||
SunPower Corp. (B)(C) | 44,280 | 1,020,211 | |||
Sunrun, Inc. (B) | 49,944 | 1,377,955 | |||
Vestas Wind Systems A/S | 85,626 | 1,576,620 | |||
Road and rail 0.3% | |||||
Canadian National Railway Company | 29,814 | 3,219,787 | |||
Transportation infrastructure 0.4% | |||||
Shanghai International Airport Company, Ltd., Class A (B) | 442,800 | 3,591,775 | |||
Information technology 1.3% | 12,188,152 | ||||
Electronic equipment, instruments and components 0.1% | |||||
Advanced Energy Industries, Inc. | 11,712 | 906,626 | |||
Semiconductors and semiconductor equipment 1.2% | |||||
Analog Devices, Inc. | 8,926 | 1,243,749 | |||
Enphase Energy, Inc. (B) | 8,604 | 2,387,352 | |||
First Solar, Inc. (B) | 19,196 | 2,539,055 | |||
ON Semiconductor Corp. (B) | 9,120 | 568,450 | |||
Power Integrations, Inc. | 13,893 | 893,598 | |||
SolarEdge Technologies, Inc. (B) | 9,617 | 2,225,951 | |||
Wolfspeed, Inc. (B) | 13,771 | 1,423,371 | |||
Materials 19.1% | 179,170,608 | ||||
Chemicals 0.7% | |||||
Air Liquide SA | 4,230 | 483,483 | |||
Albemarle Corp. | 5,334 | 1,410,523 | |||
Dow, Inc. | 10,723 | 471,061 | |||
DuPont de Nemours, Inc. | 9,460 | 476,784 | |||
LyondellBasell Industries NV, Class A | 11,490 | 864,967 | |||
NanoXplore, Inc. (B) | 174,300 | 405,041 | |||
Nutrien, Ltd. | 20,010 | 1,668,768 | |||
Nutrien, Ltd. (New York Stock Exchange) | 8,025 | 669,125 | |||
Containers and packaging 0.1% | |||||
Smurfit Kappa Group PLC | 29,500 | 837,324 | |||
Metals and mining 17.8% | |||||
Agnico Eagle Mines, Ltd. (C) | 212,341 | 8,971,094 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND | 9 |
Shares | Value | ||||
Materials (continued) | |||||
Metals and mining (continued) | |||||
Agnico Eagle Mines, Ltd. (New York Stock Exchange) | 14,648 | $618,585 | |||
Alcoa Corp. | 131,596 | 4,429,521 | |||
Altius Minerals Corp. (C) | 43,126 | 604,423 | |||
Anglo American PLC | 58,272 | 1,749,657 | |||
AngloGold Ashanti, Ltd., ADR (C) | 37,529 | 518,651 | |||
Antofagasta PLC | 3,782 | 46,344 | |||
Artemis Gold, Inc. (B) | 126,854 | 392,128 | |||
Aya Gold & Silver, Inc. (B)(C) | 83,347 | 483,302 | |||
B2Gold Corp. | 317,259 | 1,019,749 | |||
Barrick Gold Corp. | 561,933 | 8,709,585 | |||
BHP Group, Ltd., ADR (C) | 310,250 | 15,524,910 | |||
Boliden AB | 36,798 | 1,136,908 | |||
Calibre Mining Corp. (B)(C) | 260,000 | 178,811 | |||
Canada Nickel Company, Inc. (B) | 680,000 | 718,717 | |||
Capstone Copper Corp. (B) | 1,417,467 | 3,345,236 | |||
Champion Iron, Ltd. (C) | 850,991 | 2,692,171 | |||
Constellium SE (B) | 138,500 | 1,404,390 | |||
Copper Mountain Mining Corp. (B)(C) | 1,179,926 | 1,315,442 | |||
Dundee Precious Metals, Inc. | 19,881 | 88,370 | |||
Eldorado Gold Corp. (B) | 28,164 | 170,246 | |||
Endeavour Mining PLC | 181,228 | 3,342,882 | |||
Equinox Gold Corp. (B)(C) | 48,661 | 176,488 | |||
ERO Copper Corp. (B) | 275,132 | 3,041,420 | |||
First Quantum Minerals, Ltd. | 333,945 | 5,669,099 | |||
Franco-Nevada Corp. | 34,120 | 4,075,578 | |||
Freeport-McMoRan, Inc. | 596,977 | 16,315,381 | |||
Glencore PLC | 179,499 | 943,266 | |||
Global Atomic Corp. (B)(C) | 131,500 | 331,285 | |||
Gold Fields, Ltd., ADR | 158,094 | 1,278,980 | |||
Hudbay Minerals, Inc. | 210,775 | 848,379 | |||
IGO, Ltd. | 195,000 | 1,715,325 | |||
Iluka Resources, Ltd. | 118,000 | 683,153 | |||
Ivanhoe Electric, Inc. (B)(C) | 115,000 | 948,750 | |||
Ivanhoe Mines, Ltd., Class A (B) | 624,335 | 4,018,053 | |||
K92 Mining, Inc. (B)(C) | 446,520 | 2,553,667 | |||
Karora Resources, Inc. (B)(C) | 808,345 | 1,667,777 | |||
Kinross Gold Corp. | 638,844 | 2,404,886 | |||
Lithium Americas Corp. (B) | 44,400 | 1,165,165 | |||
Lucara Diamond Corp. (B) | 460,070 | 183,182 | |||
Lundin Gold, Inc. | 74,297 | 516,344 | |||
Lundin Mining Corp. | 472,869 | 2,389,420 | |||
MAG Silver Corp. (B) | 62,775 | 785,738 | |||
Marathon Gold Corp. (B)(C) | 814,805 | 625,253 |
10 | JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Shares | Value | ||||
Materials (continued) | |||||
Metals and mining (continued) | |||||
Nevada Copper Corp. (B)(C) | 267,550 | $43,580 | |||
Newcrest Mining, Ltd. | 24,788 | 272,153 | |||
Newcrest Mining, Ltd. (Toronto Stock Exchange) | 5,513 | 60,504 | |||
Newmont Corp. | 187,480 | 7,879,784 | |||
Nickel 28 Capital Corp. (B) | 356,691 | 234,979 | |||
Norsk Hydro ASA | 412,164 | 2,211,641 | |||
Nouveau Monde Graphite, Inc. (B)(C) | 95,617 | 516,332 | |||
Nucor Corp. | 4,556 | 487,446 | |||
OceanaGold Corp. (B) | 345,606 | 562,937 | |||
Osisko Mining, Inc. (B) | 341,234 | 763,321 | |||
Pan American Silver Corp. | 79,760 | 1,267,984 | |||
Pan American Silver Corp., CVR (B) | 83,300 | 47,981 | |||
Piedmont Lithium, Inc. (B)(C) | 34,100 | 1,824,009 | |||
Rio Tinto PLC, ADR (C) | 167,477 | 9,221,284 | |||
Sandstorm Gold, Ltd. | 34,124 | 176,629 | |||
Seabridge Gold, Inc. (B) | 45,163 | 536,085 | |||
Sierra Rutile Holdings, Ltd. (B) | 98,000 | 13,164 | |||
SilverCrest Metals, Inc. (B) | 176,690 | 981,078 | |||
Skeena Resources, Ltd. (B)(C) | 258,000 | 1,206,559 | |||
SolGold PLC (B)(C) | 2,709,000 | 451,059 | |||
South32, Ltd. | 748,066 | 1,775,847 | |||
Southern Copper Corp. | 5,286 | 237,024 | |||
SSR Mining, Inc. | 109,541 | 1,610,582 | |||
Steel Dynamics, Inc. | 6,414 | 455,073 | |||
Stornoway Diamond Corp. (B)(D) | 3,062,000 | 0 | |||
Talon Metals Corp. (B) | 4,325,000 | 1,510,705 | |||
Teck Resources, Ltd., Class B | 268,115 | 8,153,988 | |||
Torex Gold Resources, Inc. (B) | 13,417 | 96,838 | |||
Trilogy Metals, Inc. (B)(C) | 781,452 | 458,230 | |||
Triple Flag Precious Metals Corp. | 167,456 | 2,118,318 | |||
Turquoise Hill Resources, Ltd. (B) | 40,892 | 1,210,760 | |||
U.S. Steel Corp. | 7,081 | 128,308 | |||
Vale SA, ADR | 46,952 | 625,401 | |||
Warrior Met Coal, Inc. | 36,379 | 1,034,619 | |||
Wesdome Gold Mines, Ltd. (B) | 160,939 | 1,088,189 | |||
Wheaton Precious Metals Corp. | 177,851 | 5,759,058 | |||
Yamana Gold, Inc. | 427,445 | 1,934,000 | |||
Paper and forest products 0.5% | |||||
Canfor Corp. (B) | 35,000 | 509,538 | |||
Interfor Corp. (B) | 117,319 | 2,053,624 | |||
West Fraser Timber Company, Ltd. | 35,487 | 2,567,210 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND | 11 |
Shares | Value | ||||
Real estate 36.2% | $338,444,718 | ||||
Equity real estate investment trusts 30.5% | |||||
Agree Realty Corp. | 102,798 | 6,947,089 | |||
Alexandria Real Estate Equities, Inc. | 17,700 | 2,481,363 | |||
American Homes 4 Rent, Class A | 146,624 | 4,810,733 | |||
American Tower Corp. | 67,109 | 14,408,302 | |||
Americold Realty Trust, Inc. | 108,534 | 2,669,936 | |||
AvalonBay Communities, Inc. | 88,506 | 16,301,920 | |||
Boardwalk Real Estate Investment Trust | 40,603 | 1,359,753 | |||
Boston Properties, Inc. | 40,272 | 3,019,192 | |||
Brixmor Property Group, Inc. | 346,667 | 6,402,939 | |||
CareTrust REIT, Inc. | 182,089 | 3,297,632 | |||
Carmila SA | 102,969 | 1,380,451 | |||
CDL Hospitality Trusts | 2,466,600 | 1,995,712 | |||
Comforia Residential REIT, Inc. | 917 | 2,089,831 | |||
Corporate Office Properties Trust | 176,829 | 4,107,738 | |||
CubeSmart | 78,014 | 3,125,241 | |||
Douglas Emmett, Inc. | 147,808 | 2,650,197 | |||
Equinix, Inc. | 20,359 | 11,581,014 | |||
Equity Residential | 191,770 | 12,890,779 | |||
First Industrial Realty Trust, Inc. | 59,030 | 2,645,134 | |||
Frontier Real Estate Investment Corp. | 803 | 2,961,497 | |||
Goodman Group | 154,296 | 1,559,446 | |||
H&R Real Estate Investment Trust | 104,558 | 787,203 | |||
Healthpeak Properties, Inc. | 194,346 | 4,454,410 | |||
Host Hotels & Resorts, Inc. | 343,536 | 5,455,352 | |||
Independence Realty Trust, Inc. | 183,553 | 3,070,842 | |||
Iron Mountain, Inc. | 91,224 | 4,011,119 | |||
Kimco Realty Corp. | 398,028 | 7,327,695 | |||
Klepierre SA (B) | 120,817 | 2,100,428 | |||
Life Storage, Inc. | 86,751 | 9,608,541 | |||
LondonMetric Property PLC | 529,760 | 1,029,452 | |||
LTC Properties, Inc. | 134,597 | 5,040,658 | |||
Merlin Properties Socimi SA | 197,513 | 1,524,037 | |||
National Storage REIT | 1,193,746 | 1,718,940 | |||
NewRiver REIT PLC | 1,392,316 | 1,165,767 | |||
Phillips Edison & Company, Inc. | 215,691 | 6,050,133 | |||
Plymouth Industrial REIT, Inc. | 222,050 | 3,732,661 | |||
Prologis Property Mexico SA de CV | 380,370 | 962,847 | |||
Prologis, Inc. | 240,643 | 24,449,329 | |||
Public Storage | 54,313 | 15,903,390 | |||
Rexford Industrial Realty, Inc. | 163,940 | 8,524,880 | |||
RioCan Real Estate Investment Trust | 83,095 | 1,120,085 | |||
Ryman Hospitality Properties, Inc. | 52,547 | 3,866,934 | |||
Safestore Holdings PLC | 80,549 | 749,645 |
12 | JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Shares | Value | ||||
Real estate (continued) | |||||
Equity real estate investment trusts (continued) | |||||
SBA Communications Corp. | 18,701 | $5,323,240 | |||
Sun Communities, Inc. | 90,498 | 12,247,094 | |||
Suntec Real Estate Investment Trust | 2,270,336 | 2,414,247 | |||
Tanger Factory Outlet Centers, Inc. | 157,240 | 2,151,043 | |||
The British Land Company PLC | 351,544 | 1,361,649 | |||
The UNITE Group PLC | 188,837 | 1,792,858 | |||
Veris Residential, Inc. (B) | 97,773 | 1,111,679 | |||
VICI Properties, Inc. | 369,561 | 11,031,396 | |||
Vicinity Centres | 2,125,343 | 2,369,727 | |||
Welltower, Inc. | 220,439 | 14,178,636 | |||
WP Carey, Inc. | 136,684 | 9,540,543 | |||
Real estate management and development 5.7% | |||||
Azrieli Group, Ltd. | 20,502 | 1,399,221 | |||
CapitaLand Investment, Ltd. | 1,518,200 | 3,652,584 | |||
Catena AB | 44,474 | 1,319,620 | |||
Central Pattana PCL | 1,154,000 | 1,984,914 | |||
City Developments, Ltd. | 352,000 | 1,855,085 | |||
CK Asset Holdings, Ltd. | 817,865 | 4,909,961 | |||
Colliers International Group, Inc. | 3,448 | 315,982 | |||
Colliers International Group, Inc. (Nasdaq Exchange) (C) | 15,075 | 1,381,775 | |||
CTP NV (A) | 59,532 | 612,860 | |||
Emaar Properties PJSC | 1,044,529 | 1,639,001 | |||
Grainger PLC | 287,176 | 731,490 | |||
Hongkong Land Holdings, Ltd. | 704,100 | 3,093,831 | |||
Hufvudstaden AB, A Shares | 100,296 | 1,099,076 | |||
LEG Immobilien SE | 24,399 | 1,456,362 | |||
Mitsubishi Estate Company, Ltd. | 77,400 | 1,019,836 | |||
Mitsui Fudosan Company, Ltd. | 277,108 | 5,278,903 | |||
Nomura Real Estate Holdings, Inc. | 136,500 | 3,082,748 | |||
Pandox AB (B) | 59,830 | 633,441 | |||
PSP Swiss Property AG | 31,060 | 3,104,831 | |||
Sino Land Company, Ltd. | 1,664,000 | 2,188,705 | |||
StorageVault Canada, Inc. | 288,163 | 1,159,870 | |||
Swire Pacific, Ltd., Class A | 163,500 | 1,222,087 | |||
TKP Corp. (B)(C) | 117,900 | 2,127,035 | |||
Tokyo Tatemono Company, Ltd. | 211,390 | 3,007,746 | |||
Tricon Residential, Inc. | 524,187 | 4,534,719 | |||
Wharf Real Estate Investment Company, Ltd. | 170,000 | 770,676 | |||
Utilities 6.2% | 58,346,948 | ||||
Electric utilities 3.1% | |||||
Acciona SA | 11,066 | 1,944,909 | |||
American Electric Power Company, Inc. | 40,837 | 3,530,359 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND | 13 |
Shares | Value | ||||
Utilities (continued) | |||||
Electric utilities (continued) | |||||
Constellation Energy Corp. | 31,943 | $2,657,338 | |||
Duke Energy Corp. | 33,880 | 3,151,518 | |||
Edison International | 53,359 | 3,019,052 | |||
EDP - Energias de Portugal SA | 184,492 | 800,695 | |||
Electricite de France SA | 54 | 626 | |||
Enel SpA | 403,537 | 1,654,990 | |||
Exelon Corp. | 89,145 | 3,339,372 | |||
FirstEnergy Corp. | 80,306 | 2,971,322 | |||
Iberdrola SA | 273,985 | 2,554,677 | |||
NextEra Energy, Inc. | 37,600 | 2,948,216 | |||
Gas utilities 0.5% | |||||
Atmos Energy Corp. | 25,245 | 2,571,203 | |||
ENN Energy Holdings, Ltd. | 154,500 | 2,059,977 | |||
Independent power and renewable electricity producers 1.4% | |||||
Brookfield Renewable Corp., Class A | 19,041 | 622,260 | |||
Brookfield Renewable Partners LP | 70,080 | 2,193,504 | |||
China Longyuan Power Group Corp., Ltd., H Shares | 2,695,081 | 3,367,765 | |||
Orron Energy AB | 102,833 | 183,487 | |||
RWE AG | 80,178 | 2,947,012 | |||
The AES Corp. | 176,519 | 3,989,329 | |||
Multi-utilities 1.0% | |||||
Engie SA | 262,203 | 3,017,916 | |||
National Grid PLC | 269,601 | 2,775,290 | |||
Sempra Energy | 25,741 | 3,859,606 | |||
Water utilities 0.2% | |||||
Cia de Saneamento Basico do Estado de Sao Paulo | 237,800 | 2,186,525 | |||
Warrants 0.1% | $647,074 | ||||
(Cost $0) | |||||
Occidental Petroleum Corp. (Expiration Date: 8-3-27; Strike Price: $22.00) (B) | 16,332 | 647,074 | |||
Yield* (%) | Maturity date | Par value^ | Value | ||
Short-term investments 6.5% | $61,122,325 | ||||
(Cost $61,126,880) | |||||
U.S. Government Agency 1.1% | 10,207,408 | ||||
Federal Home Loan Bank Discount Note | 2.700 | 10-19-22 | 1,150,000 | 1,148,475 | |
Federal Home Loan Bank Discount Note | 2.920 | 11-23-22 | 9,100,000 | 9,058,933 |
Yield (%) | Shares | Value | |||
Short-term funds 4.6% | 43,214,917 | ||||
John Hancock Collateral Trust (E) | 3.0556(F) | 4,324,952 | 43,214,917 |
14 | JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Par value^ | Value | ||||
Repurchase agreement 0.8% | 7,700,000 | ||||
Bank of America Corp. Tri-Party Repurchase Agreement dated 9-30-22 at 3.050% to be repurchased at $2,200,559 on 10-3-22, collateralized by $2,253,970 Government National Mortgage Association, 5.000% due 9-20-52 (valued at $2,244,000) | 2,200,000 | 2,200,000 | |||
Goldman Sachs Tri-Party Repurchase Agreement dated 9-30-22 at 2.980% to be repurchased at $5,501,366 on 10-3-22, collateralized by $2,742,061 Federal Home Loan Mortgage Corp., 3.000% - 6.000% due 4-1-35 to 12-1-50 (valued at $2,593,794), $1,407,609 Federal National Mortgage Association, 2.000% - 6.000% due 12-1-33 to 8-1-52 (valued at $1,243,021), $1,954,393 Government National Mortgage Association, 2.800% - 6.000% due 11-15-37 to 7-15-57 (valued at $1,771,373) and $1,800 U.S. Treasury Notes, 1.875% due 10-31-22 (valued at $1,813) | 5,500,000 | 5,500,000 |
Total investments (Cost $937,318,344) 104.3% | $976,040,894 | ||||
Other assets and liabilities, net (4.3%) | (40,034,745) | ||||
Total net assets 100.0% | $936,006,149 |
The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund. | |
^All par values are denominated in U.S. dollars unless otherwise indicated. | |
Security Abbreviations and Legend | |
ADR | American Depositary Receipt |
CVR | Contingent Value Right |
(A) | These securities are exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be resold, normally to qualified institutional buyers, in transactions exempt from registration. |
(B) | Non-income producing security. |
(C) | All or a portion of this security is on loan as of 9-30-22. |
(D) | 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. |
(E) | Investment is an affiliate of the fund, the advisor and/or subadvisor. This security represents the investment of cash collateral received for securities lending. |
(F) | The rate shown is the annualized seven-day yield as of 9-30-22. |
* | Yield represents either the annualized yield at the date of purchase, the stated coupon rate or, for floating rate securities, the rate at period end. |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND | 15 |
Assets | |
Unaffiliated investments, at value (Cost $894,100,792) including $43,089,472 of securities loaned | $932,825,977 |
Affiliated investments, at value (Cost $43,217,552) | 43,214,917 |
Total investments, at value (Cost $937,318,344) | 976,040,894 |
Foreign currency, at value (Cost $1,022,101) | 989,032 |
Dividends and interest receivable | 3,124,235 |
Receivable for fund shares sold | 842,539 |
Receivable for investments sold | 4,203,895 |
Other assets | 26,763 |
Total assets | 985,227,358 |
Liabilities | |
Due to custodian | 132,387 |
Payable for investments purchased | 5,681,801 |
Payable upon return of securities loaned | 43,230,011 |
Payable to affiliates | |
Accounting and legal services fees | 28,068 |
Trustees’ fees | 744 |
Other liabilities and accrued expenses | 148,198 |
Total liabilities | 49,221,209 |
Net assets | $936,006,149 |
Net assets consist of | |
Paid-in capital | $864,788,765 |
Total distributable earnings (loss) | 71,217,384 |
Net assets | $936,006,149 |
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 NAV ($936,006,149 ÷ 89,508,669 shares) | $10.46 |
16 | JOHN HANCOCK Diversified Real Assets Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Investment income | |
Dividends | $22,582,724 |
Interest | 140,659 |
Securities lending | 219,249 |
Less foreign taxes withheld | (963,391) |
Total investment income | 21,979,241 |
Expenses | |
Investment management fees | 4,419,618 |
Accounting and legal services fees | 77,020 |
Trustees’ fees | 8,926 |
Custodian fees | 188,939 |
Printing and postage | 10,282 |
Professional fees | 47,371 |
Other | 22,670 |
Total expenses | 4,774,826 |
Less expense reductions | (299,775) |
Net expenses | 4,475,051 |
Net investment income | 17,504,190 |
Realized and unrealized gain (loss) | |
Net realized gain (loss) on | |
Unaffiliated investments and foreign currency transactions | 14,696,715 |
Affiliated investments | (17,371) |
14,679,344 | |
Change in net unrealized appreciation (depreciation) of | |
Unaffiliated investments and translation of assets and liabilities in foreign currencies | (266,473,014) |
Affiliated investments | (7,185) |
(266,480,199) | |
Net realized and unrealized loss | (251,800,855) |
Decrease in net assets from operations | $(234,296,665) |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK Diversified Real Assets Fund | 17 |
Six months ended 9-30-22 (unaudited) | Year ended 3-31-22 | |
Increase (decrease) in net assets | ||
From operations | ||
Net investment income | $17,504,190 | $25,638,565 |
Net realized gain | 14,679,344 | 65,063,023 |
Change in net unrealized appreciation (depreciation) | (266,480,199) | 248,823,189 |
Increase (decrease) in net assets resulting from operations | (234,296,665) | 339,524,777 |
Distributions to shareholders | ||
From earnings | ||
Class NAV | — | (30,403,277) |
Total distributions | — | (30,403,277) |
From fund share transactions | 19,526,447 | (121,130,595) |
Total increase (decrease) | (214,770,218) | 187,990,905 |
Net assets | ||
Beginning of period | 1,150,776,367 | 962,785,462 |
End of period | $936,006,149 | $1,150,776,367 |
18 | JOHN HANCOCK Diversified Real Assets Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS NAV SHARES Period ended | 9-30-221 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-182 |
Per share operating performance | ||||||
Net asset value, beginning of period | $13.28 | $10.10 | $6.61 | $10.01 | $10.00 | $10.00 |
Net investment income3 | 0.20 | 0.25 | 0.18 | 0.20 | 0.21 | 0.03 |
Net realized and unrealized gain (loss) on investments | (3.02) | 3.23 | 3.54 | (3.16) | 0.07 | (0.03) |
Total from investment operations | (2.82) | 3.48 | 3.72 | (2.96) | 0.28 | —4 |
Less distributions | ||||||
From net investment income | — | (0.30) | (0.23) | (0.28) | (0.19) | — |
From net realized gain | — | — | — | (0.16) | (0.08) | — |
Total distributions | — | (0.30) | (0.23) | (0.44) | (0.27) | — |
Net asset value, end of period | $10.46 | $13.28 | $10.10 | $6.61 | $10.01 | $10.00 |
Total return (%)5 | (21.23)6 | 34.95 | 56.64 | (30.92) | 3.07 | 0.006 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $936 | $1,151 | $963 | $684 | $998 | $938 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 0.927 | 0.91 | 0.93 | 0.93 | 0.94 | 0.947,8 |
Expenses including reductions | 0.867 | 0.85 | 0.87 | 0.87 | 0.88 | 0.887,8 |
Net investment income | 3.377 | 2.20 | 2.07 | 2.05 | 2.07 | 3.847 |
Portfolio turnover (%) | 34 | 49 | 82 | 61 | 73 | 409 |
1 | Six months ended 9-30-22. Unaudited. |
2 | Period from 2-26-18 (commencement of operations) to 3-31-18. |
3 | Based on average daily shares outstanding. |
4 | Less than $0.005 per share. |
5 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
6 | Not annualized. |
7 | Annualized. |
8 | Certain expenses are presented unannualized due to the short reporting period. |
9 | Excludes in-kind transactions. |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK Diversified Real Assets Fund | 19 |
20 | JOHN HANCOCK Diversified Real Assets Fund | SEMIANNUAL REPORT |
Total value at 9-30-22 | Level 1 quoted price | Level 2 significant observable inputs | Level 3 significant unobservable inputs | |
Investments in securities: | ||||
Assets | ||||
Common stocks | ||||
Communication services | $14,363,917 | $624,877 | $13,739,040 | — |
Consumer discretionary | 9,028,216 | 2,853,111 | 6,175,105 | — |
Energy | 278,738,928 | 227,291,573 | 51,447,355 | — |
Financials | 2,780,746 | 2,780,746 | — | — |
Industrials | 21,209,262 | 10,322,666 | 10,886,596 | — |
Information technology | 12,188,152 | 12,188,152 | — | — |
Materials | 179,170,608 | 167,302,343 | 11,868,265 | — |
Real estate | 338,444,718 | 266,041,018 | 72,403,700 | — |
Utilities | 58,346,948 | 37,039,604 | 21,307,344 | — |
Warrants | 647,074 | 647,074 | — | — |
Short-term investments | 61,122,325 | 43,214,917 | 17,907,408 | — |
Total investments in securities | $976,040,894 | $770,306,081 | $205,734,813 | — |
Level 3 includes securities valued at $0. Refer to Fund’s investments. |
SEMIANNUAL REPORT | JOHN HANCOCK Diversified Real Assets Fund | 21 |
22 | JOHN HANCOCK Diversified Real Assets Fund | SEMIANNUAL REPORT |
SEMIANNUAL REPORT | JOHN HANCOCK Diversified Real Assets Fund | 23 |
24 | JOHN HANCOCK Diversified Real Assets Fund | SEMIANNUAL REPORT |
Borrower or Lender | Weighted Average Loan Balance | Days Outstanding | Weighted Average Interest Rate | Interest Income (Expense) |
Borrower | $4,880,000 | 5 | 0.665% | $(451) |
Lender | $7,000,000 | 1 | 1.890% | $368 |
Six Months Ended 9-30-22 | Year Ended 3-31-22 | |||
Shares | Amount | Shares | Amount | |
Class NAV shares | ||||
Sold | 9,643,139 | $107,504,469 | 15,250,197 | $170,297,846 |
Distributions reinvested | — | — | 2,657,629 | 30,403,277 |
Repurchased | (6,819,444) | (87,978,022) | (26,525,726) | (321,831,718) |
Net increase (decrease) | 2,823,695 | $19,526,447 | (8,617,900) | $(121,130,595) |
Total net increase (decrease) | 2,823,695 | $19,526,447 | (8,617,900) | $(121,130,595) |
SEMIANNUAL REPORT | JOHN HANCOCK Diversified Real Assets Fund | 25 |
Portfolio | Affiliated Concentration |
John Hancock Funds II Multimanager Lifestyle Growth Portfolio | 33.4% |
John Hancock Funds II Multimanager Lifestyle Balanced Portfolio | 23.5% |
John Hancock Funds II Multimanager Lifestyle Aggressive Portfolio | 13.6% |
John Hancock Funds II Multimanager 2025 Lifetime Portfolio | 6.6% |
John Hancock Funds II Multimanager 2030 Lifetime Portfolio | 5.9% |
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* | 4,324,952 | $43,836,586 | $141,326,526 | $(141,923,639) | $(17,371) | $(7,185) | $219,249 | — | $43,214,917 |
* | Refer to the Securities lending note within Note 2 for details regarding this investment. |
26 | JOHN HANCOCK Diversified Real Assets Fund | SEMIANNUAL REPORT |
Total votes for the nominee | Total votes withheld from the nominee | |
Independent Trustees | ||
James R. Boyle | 930,432,312.451 | 29,179,649.679 |
Frances G. Rathke | 931,340,368.276 | 28,271,593.854 |
Noni L. Ellison | 931,852,358.590 | 27,759,603.540 |
Dean Garfield | 931,587,791.505 | 28,024,170.625 |
Patricia Lizarraga | 931,662,411.746 | 27,949,550.384 |
Non-Independent Trustees | ||
Andrew G. Arnott | 931,573,268.898 | 28,038,693.232 |
Marianne Harrison | 932,138,670.225 | 27,473,291.905 |
Paul Lorentz | 931,257,810.391 | 28,354,151.739 |
SEMIANNUAL REPORT | JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND | 27 |
28 | JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND | SEMIANNUAL 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 Subadvisors’ investment |
SEMIANNUAL REPORT | JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND | 29 |
performance and compliance programs, such as the Subadvisors’ 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; |
(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. |
30 | JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND | SEMIANNUAL 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 Manulife IM (NA) 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; |
SEMIANNUAL REPORT | JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND | 31 |
(j) | noted that the subadvisory fee for the fund is paid by the Advisor and is negotiated at arm’s length with respect to the unaffiliated Subadvisor; |
(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 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 Subadvisors’ businesses, including current subadvisory services to the Trust (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 fees 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 significant to the Trust’s Advisor and the unaffiliated Subadvisor. |
32 | JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND | SEMIANNUAL REPORT |
SEMIANNUAL REPORT | JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND | 33 |
(1) | the Subadvisor has extensive experience and demonstrated skills as a manager; |
(2) | the performance of the fund is being monitored and reasonably addressed, where appropriate; |
(3) | the subadvisory fees are reasonable in relation to the level and quality of services being provided; 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. |
34 | JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND | SEMIANNUAL REPORT |
Steven R. Pruchansky, Vice Chairperson
Andrew G. Arnott†
James R. Boyle
Peter S. Burgess*
William H. Cunningham*
Grace K. Fey
Noni L. Ellison^
Dean C. Garfield^
Marianne Harrison†
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
Wellington Management Company LLP (Wellington)
Manulife IM (NA) and Wellington
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 |
SEMIANNUAL REPORT | JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND | 35 |
GOVERNANCE FUNDS
with a heritage of financial stewardship dating back to 1862. Helping
our shareholders pursue their financial goals is at the core of everything
we do. It’s why we support the role of professional financial advice
and operate with the highest standards of conduct and integrity.
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
DRASA 9/22 |
Manulife Investment Management
John Hancock Investment Management
Head of Wealth and Asset Management,
United States and Europe
SEMIANNUAL REPORT | JOHN HANCOCK MID CAP GROWTH FUND | 1 |
2 | JOHN HANCOCK MID CAP GROWTH FUND | SEMIANNUAL REPORT |
TOP 10 HOLDINGS AS OF 9/30/2022 (% of net assets) | |
iShares Russell Mid-Cap Growth ETF | 4.6 |
DexCom, Inc. | 4.0 |
Arista Networks, Inc. | 4.0 |
Lululemon Athletica, Inc. | 3.8 |
Paycom Software, Inc. | 3.7 |
Veeva Systems, Inc., Class A | 3.3 |
Insulet Corp. | 3.1 |
CoStar Group, Inc. | 3.1 |
Albemarle Corp. | 3.0 |
Agilent Technologies, Inc. | 3.0 |
TOTAL | 35.6 |
Cash and cash equivalents are not included. |
SEMIANNUAL REPORT | JOHN HANCOCK MID CAP GROWTH FUND | 3 |
4 | JOHN HANCOCK MID CAP GROWTH FUND | SEMIANNUAL REPORT |
Account value on 4-1-2022 | Ending value on 9-30-2022 | Expenses paid during period ended 9-30-20221 | Annualized expense ratio | ||
Class A | Actual expenses/actual returns | $1,000.00 | $710.30 | $5.06 | 1.18% |
Hypothetical example | 1,000.00 | 1,019.20 | 5.97 | 1.18% | |
Class C | Actual expenses/actual returns | 1,000.00 | 707.70 | 8.22 | 1.92% |
Hypothetical example | 1,000.00 | 1,015.40 | 9.70 | 1.92% | |
Class I | Actual expenses/actual returns | 1,000.00 | 711.20 | 3.99 | 0.93% |
Hypothetical example | 1,000.00 | 1,020.40 | 4.71 | 0.93% | |
Class R6 | Actual expenses/actual returns | 1,000.00 | 711.80 | 3.52 | 0.82% |
Hypothetical example | 1,000.00 | 1,021.00 | 4.15 | 0.82% | |
Class NAV | Actual expenses/actual returns | 1,000.00 | 711.40 | 3.48 | 0.81% |
Hypothetical example | 1,000.00 | 1,021.00 | 4.10 | 0.81% |
1 | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period). |
SEMIANNUAL REPORT | JOHN HANCOCK MID CAP GROWTH FUND | 5 |
Shares | Value | ||||
Common stocks 92.3% | $1,158,786,299 | ||||
(Cost $1,398,028,407) | |||||
Communication services 7.8% | 98,783,829 | ||||
Entertainment 4.3% | |||||
Live Nation Entertainment, Inc. (A) | 228,386 | 17,366,471 | |||
Spotify Technology SA (A) | 310,089 | 26,760,681 | |||
Take-Two Interactive Software, Inc. (A) | 99,245 | 10,817,705 | |||
Interactive media and services 3.5% | |||||
Match Group, Inc. (A) | 282,237 | 13,476,817 | |||
Snap, Inc., Class A (A) | 336,005 | 3,299,569 | |||
ZoomInfo Technologies, Inc. (A) | 649,606 | 27,062,586 | |||
Consumer discretionary 17.7% | 222,264,897 | ||||
Automobiles 1.9% | |||||
Thor Industries, Inc. | 338,358 | 23,678,293 | |||
Hotels, restaurants and leisure 4.4% | |||||
Domino’s Pizza, Inc. | 73,738 | 22,873,528 | |||
DraftKings, Inc., Class A (A)(B) | 1,277,227 | 19,337,217 | |||
Texas Roadhouse, Inc. | 149,036 | 13,004,881 | |||
Household durables 2.6% | |||||
Lennar Corp., A Shares | 436,573 | 32,546,517 | |||
Internet and direct marketing retail 1.9% | |||||
Etsy, Inc. (A) | 238,268 | 23,857,775 | |||
Specialty retail 3.1% | |||||
Ross Stores, Inc. | 150,503 | 12,682,888 | |||
Ulta Beauty, Inc. (A) | 67,328 | 27,011,320 | |||
Textiles, apparel and luxury goods 3.8% | |||||
Lululemon Athletica, Inc. (A) | 169,096 | 47,272,478 | |||
Consumer staples 1.0% | 12,241,800 | ||||
Beverages 1.0% | |||||
Celsius Holdings, Inc. (A) | 135,000 | 12,241,800 | |||
Energy 4.7% | 58,788,382 | ||||
Oil, gas and consumable fuels 4.7% | |||||
Cheniere Energy, Inc. | 103,420 | 17,158,412 | |||
Diamondback Energy, Inc. | 111,805 | 13,468,030 | |||
Pioneer Natural Resources Company | 66,260 | 14,347,278 | |||
Targa Resources Corp. | 228,947 | 13,814,662 | |||
Financials 3.3% | 41,223,569 | ||||
Capital markets 3.3% | |||||
Ares Management Corp., Class A | 269,839 | 16,716,526 |
6 | JOHN HANCOCK MID CAP GROWTH FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Shares | Value | ||||
Financials (continued) | |||||
Capital markets (continued) | |||||
Tradeweb Markets, Inc., Class A | 434,368 | $24,507,043 | |||
Health care 18.7% | 234,612,801 | ||||
Biotechnology 3.8% | |||||
Apellis Pharmaceuticals, Inc. (A) | 214,828 | 14,672,752 | |||
Ascendis Pharma A/S, ADR (A)(B) | 93,463 | 9,650,989 | |||
Exact Sciences Corp. (A)(B) | 726,929 | 23,617,923 | |||
Health care equipment and supplies 8.6% | |||||
DexCom, Inc. (A) | 621,723 | 50,073,571 | |||
Inspire Medical Systems, Inc. (A) | 102,687 | 18,213,593 | |||
Insulet Corp. (A) | 172,114 | 39,482,952 | |||
Health care technology 3.3% | |||||
Veeva Systems, Inc., Class A (A) | 253,973 | 41,875,068 | |||
Life sciences tools and services 3.0% | |||||
Agilent Technologies, Inc. | 304,615 | 37,025,953 | |||
Industrials 8.7% | 108,936,865 | ||||
Aerospace and defense 1.1% | |||||
Curtiss-Wright Corp. | 94,739 | 13,183,879 | |||
Building products 1.9% | |||||
Johnson Controls International PLC | 486,732 | 23,956,949 | |||
Machinery 1.3% | |||||
The Middleby Corp. (A) | 131,374 | 16,838,206 | |||
Professional services 3.1% | |||||
CoStar Group, Inc. (A) | 561,505 | 39,108,823 | |||
Trading companies and distributors 1.3% | |||||
WESCO International, Inc. (A) | 132,761 | 15,849,008 | |||
Information technology 25.3% | 317,414,504 | ||||
Communications equipment 4.0% | |||||
Arista Networks, Inc. (A) | 437,062 | 49,339,929 | |||
IT services 4.8% | |||||
Block, Inc. (A) | 179,498 | 9,870,595 | |||
ExlService Holdings, Inc. (A) | 81,980 | 12,080,573 | |||
MongoDB, Inc. (A) | 106,604 | 21,167,290 | |||
Okta, Inc. (A) | 304,246 | 17,302,470 | |||
Semiconductors and semiconductor equipment 4.8% | |||||
Ambarella, Inc. (A) | 10,100 | 567,418 | |||
First Solar, Inc. (A) | 86,257 | 11,409,213 | |||
MKS Instruments, Inc. | 158,051 | 13,061,335 | |||
SolarEdge Technologies, Inc. (A) | 98,224 | 22,734,927 | |||
Universal Display Corp. | 136,153 | 12,846,036 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK MID CAP GROWTH FUND | 7 |
Shares | Value | ||||
Information technology (continued) | |||||
Software 11.7% | |||||
Five9, Inc. (A) | 312,316 | $23,417,454 | |||
Palo Alto Networks, Inc. (A) | 202,629 | 33,188,604 | |||
Paycom Software, Inc. (A) | 139,808 | 46,135,242 | |||
RingCentral, Inc., Class A (A) | 261,044 | 10,431,318 | |||
Workday, Inc., Class A (A) | 222,455 | 33,862,100 | |||
Materials 4.1% | 51,385,616 | ||||
Chemicals 4.1% | |||||
Albemarle Corp. | 144,559 | 38,227,182 | |||
CF Industries Holdings, Inc. | 136,711 | 13,158,434 | |||
Real estate 1.0% | 13,134,036 | ||||
Equity real estate investment trusts 1.0% | |||||
AvalonBay Communities, Inc. | 71,307 | 13,134,036 | |||
Preferred securities 0.7% | $8,725,389 | ||||
(Cost $9,360,258) | |||||
Information technology 0.7% | 8,725,389 | ||||
Software 0.7% | |||||
Essence Group Holdings Corp. (A)(C)(D) | 2,958,957 | 5,296,533 | |||
Lookout, Inc., Series F (A)(C)(D) | 392,767 | 3,428,856 | |||
Exchange-traded funds 4.6% | $58,346,351 | ||||
(Cost $58,601,919) | |||||
iShares Russell Mid-Cap Growth ETF (B) | 743,929 | 58,346,351 | |||
Yield (%) | Shares | Value | |||
Short-term investments 5.8% | $72,380,661 | ||||
(Cost $72,380,759) | |||||
Short-term funds 5.8% | 72,380,661 | ||||
John Hancock Collateral Trust (E) | 3.0556(F) | 4,237,733 | 42,343,426 | ||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 2.9329(F) | 30,037,235 | 30,037,235 |
Total investments (Cost $1,538,371,343) 103.4% | $1,298,238,700 | ||||
Other assets and liabilities, net (3.4%) | (42,496,518) | ||||
Total net assets 100.0% | $1,255,742,182 |
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) | All or a portion of this security is on loan as of 9-30-22. |
(C) | Restricted security as to resale. For more information on this security refer to the Notes to financial statements. |
8 | JOHN HANCOCK MID CAP GROWTH FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
(D) | 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. |
(E) | Investment is an affiliate of the fund, the advisor and/or subadvisor. This security represents the investment of cash collateral received for securities lending. |
(F) | The rate shown is the annualized seven-day yield as of 9-30-22. |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK MID CAP GROWTH FUND | 9 |
Assets | |
Unaffiliated investments, at value (Cost $1,496,027,819) including $41,406,088 of securities loaned | $1,255,895,274 |
Affiliated investments, at value (Cost $42,343,524) | 42,343,426 |
Total investments, at value (Cost $1,538,371,343) | 1,298,238,700 |
Dividends and interest receivable | 412,553 |
Receivable for fund shares sold | 570,929 |
Receivable for securities lending income | 11,678 |
Other assets | 145,767 |
Total assets | 1,299,379,627 |
Liabilities | |
Payable for investments purchased | 49,785 |
Payable for fund shares repurchased | 968,150 |
Payable upon return of securities loaned | 42,360,317 |
Payable to affiliates | |
Accounting and legal services fees | 22,568 |
Transfer agent fees | 3,348 |
Trustees’ fees | 1,805 |
Other liabilities and accrued expenses | 231,472 |
Total liabilities | 43,637,445 |
Net assets | $1,255,742,182 |
Net assets consist of | |
Paid-in capital | $1,604,644,610 |
Total distributable earnings (loss) | (348,902,428) |
Net assets | $1,255,742,182 |
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 ($6,566,490 ÷ 535,521 shares)1 | $12.26 |
Class C ($86,690 ÷ 7,117 shares)1 | $12.18 |
Class I ($3,186,074 ÷ 259,252 shares) | $12.29 |
Class R6 ($274,576,047 ÷ 22,317,233 shares) | $12.30 |
Class NAV ($971,326,881 ÷ 78,950,879 shares) | $12.30 |
Maximum offering price per share | |
Class A (net asset value per share ÷ 95%)2 | $12.91 |
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. |
10 | JOHN HANCOCK Mid Cap Growth Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Investment income | |
Dividends | $3,294,883 |
Interest | 203,662 |
Securities lending | 55,741 |
Total investment income | 3,554,286 |
Expenses | |
Investment management fees | 5,889,290 |
Distribution and service fees | 7,520 |
Accounting and legal services fees | 104,873 |
Transfer agent fees | 20,166 |
Trustees’ fees | 15,866 |
Custodian fees | 75,523 |
State registration fees | 79,495 |
Printing and postage | 10,295 |
Professional fees | 65,786 |
Other | 36,617 |
Total expenses | 6,305,431 |
Less expense reductions | (548,595) |
Net expenses | 5,756,836 |
Net investment loss | (2,202,550) |
Realized and unrealized gain (loss) | |
Net realized gain (loss) on | |
Unaffiliated investments | (186,701,674) |
Affiliated investments | (11,706) |
(186,713,380) | |
Change in net unrealized appreciation (depreciation) of | |
Unaffiliated investments and translation of assets and liabilities in foreign currencies | (299,193,616) |
Affiliated investments | (2,314) |
(299,195,930) | |
Net realized and unrealized loss | (485,909,310) |
Decrease in net assets from operations | $(488,111,860) |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK Mid Cap Growth Fund | 11 |
Six months ended 9-30-22 (unaudited) | Period ended 3-31-221 | Year ended 8-31-21 | |
Increase (decrease) in net assets | |||
From operations | |||
Net investment loss | $(2,202,550) | $(7,164,970) | $(13,702,968) |
Net realized gain (loss) | (186,713,380) | 132,478,948 | 636,192,881 |
Change in net unrealized appreciation (depreciation) | (299,195,930) | (548,264,558) | (40,616,405) |
Increase (decrease) in net assets resulting from operations | (488,111,860) | (422,950,580) | 581,873,508 |
Distributions to shareholders | |||
From earnings | |||
Class R62 | — | (141,941,775) | — |
Class 13 | — | — | (149,685,105) |
Class NAV3 | — | (380,500,343) | (307,295,923) |
Total distributions | — | (522,442,118) | (456,981,028) |
From fund share transactions | 47,261,070 | 496,465,026 | 179,671,998 |
Total increase (decrease) | (440,850,790) | (448,927,672) | 304,564,478 |
Net assets | |||
Beginning of period | 1,696,592,972 | 2,145,520,644 | 1,840,956,166 |
End of period | $1,255,742,182 | $1,696,592,972 | $2,145,520,644 |
1 | For the seven-month period ended 3-31-22. The Accounting Survivor’s fiscal year end was August 31 and the fund’s fiscal year end is March 31. |
2 | The inception date for Class R6 shares is 10-18-21. |
3 | Activity presented prior to close of business on October 15, 2021 represents the historical operating results of the Accounting Survivor. At the close of business on October 15, 2021, the Accounting Survivor was reorganized into the fund. Refer to Note 11 for further details. |
12 | JOHN HANCOCK Mid Cap Growth Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS A SHARES Period ended | 9-30-221 | 3-31-222 |
Per share operating performance | ||
Net asset value, beginning of period | $17.26 | $22.29 |
Net investment loss3 | (0.04) | (0.07) |
Net realized and unrealized gain (loss) on investments | (4.96) | (4.96) |
Total from investment operations | (5.00) | (5.03) |
Less distributions | ||
From net realized gain | — | — |
Total distributions | — | — |
Net asset value, end of period | $12.26 | $17.26 |
Total return (%)4,5 | (28.97)6 | (22.57)6 |
Ratios and supplemental data | ||
Net assets, end of period (in millions) | $7 | $5 |
Ratios (as a percentage of average net assets): | ||
Expenses before reductions | 1.257 | 1.248 |
Expenses including reductions | 1.187 | 1.178 |
Net investment loss | (0.62)7 | (0.98)8 |
Portfolio turnover (%) | 46 | 699 |
1 | Six months ended 9-30-22. Unaudited. |
2 | The inception date for Class A shares is 11-5-21. |
3 | Based on average daily shares outstanding. |
4 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
5 | Does not reflect the effect of sales charges, if any. |
6 | Not annualized. |
7 | Annualized. |
8 | Annualized. Certain expenses are presented unannualized. |
9 | Portfolio turnover is shown for the period from 9-1-21 to 3-31-22. |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK Mid Cap Growth Fund | 13 |
CLASS C SHARES Period ended | 9-30-221 | 3-31-222 |
Per share operating performance | ||
Net asset value, beginning of period | $17.21 | $22.29 |
Net investment loss3 | (0.09) | (0.13) |
Net realized and unrealized gain (loss) on investments | (4.94) | (4.95) |
Total from investment operations | (5.03) | (5.08) |
Less distributions | ||
From net realized gain | — | — |
Total distributions | — | — |
Net asset value, end of period | $12.18 | $17.21 |
Total return (%)4,5 | (29.23)6 | (22.79)6 |
Ratios and supplemental data | ||
Net assets, end of period (in millions) | $—7 | $—7 |
Ratios (as a percentage of average net assets): | ||
Expenses before reductions | 2.008 | 1.989 |
Expenses including reductions | 1.928 | 1.929 |
Net investment loss | (1.30)8 | (1.77)9 |
Portfolio turnover (%) | 46 | 6910 |
1 | Six months ended 9-30-22. Unaudited. |
2 | The inception date for Class C shares is 11-5-21. |
3 | Based on average daily shares outstanding. |
4 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
5 | Does not reflect the effect of sales charges, if any. |
6 | Not annualized. |
7 | Less than $500,000. |
8 | Annualized. |
9 | Annualized. Certain expenses are presented unannualized. |
10 | Portfolio turnover is shown for the period from 9-1-21 to 3-31-22. |
14 | JOHN HANCOCK Mid Cap Growth Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS I SHARES Period ended | 9-30-221 | 3-31-222 |
Per share operating performance | ||
Net asset value, beginning of period | $17.28 | $22.29 |
Net investment loss3 | (0.03) | (0.05) |
Net realized and unrealized gain (loss) on investments | (4.96) | (4.96) |
Total from investment operations | (4.99) | (5.01) |
Less distributions | ||
From net realized gain | — | — |
Total distributions | — | — |
Net asset value, end of period | $12.29 | $17.28 |
Total return (%)4 | (28.88)5 | (22.48)5 |
Ratios and supplemental data | ||
Net assets, end of period (in millions) | $3 | $4 |
Ratios (as a percentage of average net assets): | ||
Expenses before reductions | 1.006 | 0.997 |
Expenses including reductions | 0.936 | 0.927 |
Net investment loss | (0.43)6 | (0.80)7 |
Portfolio turnover (%) | 46 | 698 |
1 | Six months ended 9-30-22. Unaudited. |
2 | The inception date for Class I shares is 11-5-21. |
3 | Based on average daily shares outstanding. |
4 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
5 | Not annualized. |
6 | Annualized. |
7 | Annualized. Certain expenses are presented unannualized. |
8 | Portfolio turnover is shown for the period from 9-1-21 to 3-31-22. |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK Mid Cap Growth Fund | 15 |
CLASS R6 SHARES Period ended | 9-30-221 | 3-31-222,3 | 8-31-213 | 8-31-203 | 8-31-193 | 8-31-183 | 8-31-173 |
Per share operating performance | |||||||
Net asset value, beginning of period | $17.29 | $28.81 | $27.74 | $22.24 | $25.90 | $22.14 | $18.86 |
Net investment loss4 | (0.02) | (0.08) | (0.20) | (0.11) | (0.12) | (0.10) | (0.03) |
Net realized and unrealized gain (loss) on investments | (4.97) | (4.17) | 8.88 | 8.38 | 0.28 | 6.01 | 3.40 |
Total from investment operations | (4.99) | (4.25) | 8.68 | 8.27 | 0.16 | 5.91 | 3.37 |
Less distributions | |||||||
From net realized gain | — | (7.27) | (7.61) | (2.77) | (3.82) | (2.15) | (0.09) |
Total distributions | — | (7.27) | (7.61) | (2.77) | (3.82) | (2.15) | (0.09) |
Net asset value, end of period | $12.30 | $17.29 | $28.81 | $27.74 | $22.24 | $25.90 | $22.14 |
Total return (%)5 | (28.82)6 | (20.41)6 | 33.87 | 41.40 | 5.71 | 28.68 | 17.86 |
Ratios and supplemental data | |||||||
Net assets, end of period (in millions) | $275 | $399 | $631 | $547 | $438 | $447 | $365 |
Ratios (as a percentage of average net assets): | |||||||
Expenses before reductions | 0.907 | 0.888 | 0.92 | 0.92 | 0.92 | 0.92 | 0.92 |
Expenses including reductions | 0.827 | 0.828 | 0.91 | 0.92 | 0.92 | 0.91 | 0.91 |
Net investment loss | (0.32)7 | (0.65)8 | (0.72) | (0.51) | (0.54) | (0.44) | (0.16) |
Portfolio turnover (%) | 46 | 69 | 91 | 86 | 619 | 67 | 89 |
1 | Six months ended 9-30-22. Unaudited. |
2 | For the seven-month period ended 3-31-22. The inception date for Class R6 shares is 10-18-21. The Accounting Survivor’s fiscal year end was August 31 and the fund’s fiscal year end is March 31. |
3 | Financial highlights presented prior to close of business on October 15, 2021 represents the historical operating results of the Accounting Survivor. At the close of business on October 15, 2021, the Accounting Survivor was reorganized into the fund. On the date of reorganization, the accounting and performance history of the Accounting Survivor was retained as that of the fund. Refer to Note 11 for further details. |
4 | Based on average daily shares outstanding. |
5 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
6 | Not annualized. |
7 | Annualized. |
8 | Annualized. Certain expenses are presented unannualized. |
9 | Excludes merger activity. |
16 | JOHN HANCOCK Mid Cap Growth Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS NAV SHARES Period ended | 9-30-221 | 3-31-222,3 | 8-31-213 | 8-31-203 | 8-31-193 | 8-31-183 | 8-31-173 |
Per share operating performance | |||||||
Net asset value, beginning of period | $17.29 | $28.81 | $27.61 | $22.09 | $25.66 | $21.90 | $18.64 |
Net investment loss4 | (0.02) | (0.08) | (0.19) | (0.10) | (0.11) | (0.09) | (0.02) |
Net realized and unrealized gain (loss) on investments | (4.97) | (4.17) | 8.86 | 8.34 | 0.29 | 5.95 | 3.36 |
Total from investment operations | (4.99) | (4.25) | 8.67 | 8.24 | 0.18 | 5.86 | 3.34 |
Less distributions | |||||||
From net realized gain | — | (7.27) | (7.47) | (2.72) | (3.75) | (2.10) | (0.08) |
Total distributions | — | (7.27) | (7.47) | (2.72) | (3.75) | (2.10) | (0.08) |
Net asset value, end of period | $12.30 | $17.29 | $28.81 | $27.61 | $22.09 | $25.66 | $21.90 |
Total return (%)5 | (28.86)6 | (20.37)6 | 33.91 | 41.47 | 5.74 | 28.75 | 17.99 |
Ratios and supplemental data | |||||||
Net assets, end of period (in millions) | $971 | $1,289 | $1,515 | $1,294 | $1,153 | $1,258 | $1,245 |
Ratios (as a percentage of average net assets): | |||||||
Expenses before reductions | 0.897 | 0.878 | 0.87 | 0.87 | 0.87 | 0.87 | 0.87 |
Expenses including reductions | 0.817 | 0.818 | 0.86 | 0.87 | 0.87 | 0.86 | 0.86 |
Net investment loss | (0.31)7 | (0.65)8 | (0.67) | (0.46) | (0.49) | (0.39) | (0.12) |
Portfolio turnover (%) | 46 | 69 | 91 | 86 | 619 | 67 | 89 |
1 | Six months ended 9-30-22. Unaudited. |
2 | For the seven-month period ended 3-31-22. The Accounting Survivor’s fiscal year end was August 31 and the fund’s fiscal year end is March 31. |
3 | Financial highlights presented prior to close of business on October 15, 2021 represents the historical operating results of the Accounting Survivor. At the close of business on October 15, 2021, the Accounting Survivor was reorganized into the fund . On the date of reorganization, the accounting and performance history of the Accounting Survivor was retained as that of the fund. As a result, the per share operating performance has been adjusted for the prior periods presented to reflect the transaction. The conversion ratio used was 0.98073, as the Accounting Survivor’s net asset value was $28.7711 while the fund’s net asset value was $28.2165 on the date of reorganization. Refer to Note 11 for further details. |
4 | Based on average daily shares outstanding. |
5 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
6 | Not annualized. |
7 | Annualized. |
8 | Annualized. Certain expenses are presented unannualized. |
9 | Excludes merger activity. |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK Mid Cap Growth Fund | 17 |
18 | JOHN HANCOCK Mid Cap Growth Fund | SEMIANNUAL REPORT |
Total value at 9-30-22 | Level 1 quoted price | Level 2 significant observable inputs | Level 3 significant unobservable inputs | |
Investments in securities: | ||||
Assets | ||||
Common stocks | $1,158,786,299 | $1,158,786,299 | — | — |
Preferred securities | 8,725,389 | — | — | $8,725,389 |
Exchange-traded funds | 58,346,351 | 58,346,351 | — | — |
Short-term investments | 72,380,661 | 72,380,661 | — | — |
Total investments in securities | $1,298,238,700 | $1,289,513,311 | — | $8,725,389 |
SEMIANNUAL REPORT | JOHN HANCOCK Mid Cap Growth Fund | 19 |
20 | JOHN HANCOCK Mid Cap Growth Fund | SEMIANNUAL REPORT |
SEMIANNUAL REPORT | JOHN HANCOCK Mid Cap Growth Fund | 21 |
Class | Expense reduction |
Class A | $2,258 |
Class C | 22 |
Class I | 1,310 |
Class | Expense reduction |
Class R6 | $122,001 |
Class NAV | 423,004 |
Total | $548,595 |
Class | Rule 12b-1 Fee |
Class A | 0.25% |
Class C | 1.00% |
22 | JOHN HANCOCK Mid Cap Growth Fund | SEMIANNUAL REPORT |
Class | Distribution and service fees | Transfer agent fees |
Class A | $7,246 | $3,328 |
Class C | 274 | 32 |
Class I | — | 1,944 |
Class R6 | — | 14,862 |
Total | $7,520 | $20,166 |
Six Months Ended 9-30-22 | Period Ended 3-31-221 | Year Ended 8-31-21 | ||||
Shares | Amount | Shares | Amount | Shares | Amount | |
Class A shares2 | ||||||
Sold | 373,787 | $5,233,020 | 328,326 | $6,027,881 | — | — |
Repurchased | (104,615) | (1,385,551) | (61,977) | (1,138,578) | — | — |
Net increase | 269,172 | $3,847,469 | 266,349 | $4,889,303 | — | — |
Class C shares2 | ||||||
Sold | 4,290 | $58,684 | 2,827 | $60,000 | — | — |
Net increase | 4,290 | $58,684 | 2,827 | $60,000 | — | — |
Class I shares2 | ||||||
Sold | 45,596 | $614,667 | 252,138 | $4,902,914 | — | — |
Repurchased | (33,879) | (449,292) | (4,603) | (74,643) | — | — |
Net increase | 11,717 | $165,375 | 247,535 | $4,828,271 | — | — |
Class R6 shares3 | ||||||
Sold | 692,319 | $9,599,717 | 162,552 | $3,079,089 | — | — |
Issued in reorganization | — | — | 19,705,096 | 556,008,842 | — | — |
Distributions reinvested | — | — | 6,370,816 | 141,941,775 | — | — |
Repurchased | (1,453,306) | (20,372,944) | (3,160,244) | (61,627,074) | — | — |
Net increase (decrease) | (760,987) | $(10,773,227) | 23,078,220 | $639,402,632 | — | — |
SEMIANNUAL REPORT | JOHN HANCOCK Mid Cap Growth Fund | 23 |
Six Months Ended 9-30-22 | Period Ended 3-31-221 | Year Ended 8-31-21 | ||||
Shares | Amount | Shares | Amount | Shares | Amount | |
Class 1 shares4 | ||||||
Sold | — | — | 34,008 | $964,219 | 1,286,989 | $36,936,063 |
Distributions reinvested | — | — | — | — | 5,689,286 | 149,685,105 |
Repurchased | — | — | (763,258) | (21,273,235) | (4,822,216) | (132,632,186) |
Redeemed in reorganization | — | — | (21,160,712) | (597,080,839) | — | — |
Net increase (decrease) | — | — | (21,889,962) | $(617,389,855) | 2,154,059 | $53,988,982 |
Class NAV shares4 | ||||||
Sold | 9,183,179 | $123,598,990 | 6,777,824 | $126,581,857 | 9,615,843 | $265,194,414 |
Issued in reorganization | — | — | 53,096,244 | 1,498,190,173 | — | — |
Distributions reinvested | — | — | 17,078,112 | 380,500,343 | 11,457,715 | 307,295,923 |
Repurchased | (4,771,003) | (69,636,221) | (3,329,866) | (83,479,522) | (15,469,646) | (446,807,321) |
Redeemed in reorganization | — | — | (50,645,278) | (1,457,118,176) | — | — |
Net increase | 4,412,176 | $53,962,769 | 22,977,036 | $464,674,675 | 5,603,912 | $125,683,016 |
Total net increase | 3,936,368 | $47,261,070 | 24,682,005 | $496,465,026 | 7,757,971 | $179,671,998 |
1 | For the seven-month period ended 3-31-22. The Accounting Survivor’s fiscal year end was August 31 and the fund’s fiscal year end is March 31. |
2 | The inception date for Class A, Class C and Class I shares is 11-5-21. |
3 | The inception date for Class R6 shares is 10-18-21. |
4 | Activity presented prior to close of business on October 15, 2021 represents the historical operating results of the Accounting Survivor. At the close of business on October 15, 2021, the Accounting Survivor was reorganized into the fund. Refer to Note 11 for further details. |
24 | JOHN HANCOCK Mid Cap Growth Fund | SEMIANNUAL REPORT |
Portfolio | Affiliated Concentration |
John Hancock Funds II Multimanager Lifestyle Growth Portfolio | 26.0% |
John Hancock Funds II Multimanager Lifestyle Balanced Portfolio | 16.8% |
John Hancock Funds II Multimanager Lifestyle Aggressive Portfolio | 11.7% |
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* | 4,237,733 | $15,826,228 | $187,150,358 | $(160,619,140) | $(11,706) | $(2,314) | $55,741 | — | $42,343,426 |
* | Refer to the Securities lending note within Note 2 for details regarding this investment. |
Issuer, Description | Original acquisition date | Acquisition cost | Beginning share amount | Shares purchased | Shares sold | Ending share amount | Value as a percentage of net assets | Ending value |
Essence Group Holdings Corp. | 5-1-141 | $5,083,384 | 2,958,957 | — | — | 2,958,957 | 0.4% | $5,296,533 |
Lookout, Inc., Series F | 7-31-141 | 4,276,874 | 392,767 | — | — | 392,767 | 0.3% | 3,428,856 |
$8,725,389 |
1 | Reflects original acquisition date of security transferred in a merger with John Hancock Funds II Mid Cap Growth Fund which took place after market close on 10-15-21. |
SEMIANNUAL REPORT | JOHN HANCOCK Mid Cap Growth Fund | 25 |
Acquiring Portfolio | Acquired Portfolio | Net Asset Value of the Acquired Portfolio | Appreciation of the Acquired Portfolio’s Investments | Shares Redeemed by the Acquired Portfolio | Shares Issued by the Acquiring Portfolio | Acquiring Portfolio Net Assets Prior to Combination | Acquiring Portfolio Total Net Assets After Combination |
Mid Cap Growth Fund | Mid Cap Stock Fund | $2,054,199,015 | $557,181,556 | 71,805,990 | 72,801,340 | — | $2,054,199,015 |
Accounting Survivor’s Share Class | Conversion Ratio | Fund’s Share Class |
Class 1 | 1.00000 | Class R6 |
Class 1 | 1.00000 | Class NAV |
Class NAV | 0.98073 | Class NAV |
See Note 5 for capital shares issued in connection with the above referenced reorganization. |
26 | JOHN HANCOCK Mid Cap Growth Fund | SEMIANNUAL REPORT |
Total votes for the nominee | Total votes withheld from the nominee | |
Independent Trustees | ||
James R. Boyle | 930,432,312.451 | 29,179,649.679 |
Frances G. Rathke | 931,340,368.276 | 28,271,593.854 |
Noni L. Ellison | 931,852,358.590 | 27,759,603.540 |
Dean Garfield | 931,587,791.505 | 28,024,170.625 |
Patricia Lizarraga | 931,662,411.746 | 27,949,550.384 |
Non-Independent Trustees | ||
Andrew G. Arnott | 931,573,268.898 | 28,038,693.232 |
Marianne Harrison | 932,138,670.225 | 27,473,291.905 |
Paul Lorentz | 931,257,810.391 | 28,354,151.739 |
SEMIANNUAL REPORT | JOHN HANCOCK MID CAP GROWTH FUND | 27 |
28 | JOHN HANCOCK <Fund Name - undefined> | SEMIANNUAL 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; |
SEMIANNUAL REPORT | JOHN HANCOCK <Fund Name - undefined> | 29 |
(d) | the Advisor’s administrative capabilities, including its ability to supervise the other service providers for the fund, as well as the Advisor’s oversight of any securities lending activity, its monitoring of class action litigation and collection of class action settlements on behalf of the fund, and bringing loss recovery actions on behalf of the fund; |
(e) | the financial condition of the Advisor and whether it has the financial wherewithal to provide a high level and quality of services to the fund; |
(f) | the Advisor’s initiatives intended to improve various aspects of the Trust’s operations and investor experience with the fund; and |
(g) | the Advisor’s reputation and experience in serving as an investment advisor to the Trust and the benefit to shareholders of investing in funds that are part of a family of funds offering a variety of investments. |
(a) | reviewed information prepared by management regarding the fund’s performance; |
(b) | considered the comparative performance of an applicable benchmark index; |
(c) | considered the performance of comparable funds, if any, as included in the report prepared by an independent third-party provider of fund data; and |
(d) | took into account the Advisor’s analysis of the fund’s performance and its plans and recommendations regarding the Trust’s subadvisory arrangements generally. |
30 | JOHN HANCOCK <Fund Name - undefined> | SEMIANNUAL 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 subadvisory fee for the fund is paid by the Advisor and is negotiated at arm’s length; |
(i) | 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 |
(j) | 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. |
SEMIANNUAL REPORT | JOHN HANCOCK <Fund Name - undefined> | 31 |
(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. |
(a) | information relating to the Subadvisor’s business, including current subadvisory services to the Trust (and other funds in the John Hancock Fund Complex); |
(b) | the historical and current performance of the fund and comparative performance information relating to an applicable benchmark index and comparable funds; |
(c) | 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 |
(d) | information relating to the nature and scope of any material relationships and their significance to the Trust’s Advisor and Subadvisor. |
32 | JOHN HANCOCK <Fund Name - undefined> | SEMIANNUAL REPORT |
(1) | the Subadvisor has extensive experience and demonstrated skills as a manager; |
SEMIANNUAL REPORT | JOHN HANCOCK <Fund Name - undefined> | 33 |
(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 |
(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. |
34 | JOHN HANCOCK <Fund Name - undefined> | SEMIANNUAL REPORT |
Steven R. Pruchansky, Vice Chairperson
Andrew G. Arnott†
James R. Boyle
Peter S. Burgess*
William H. Cunningham*
Grace K. Fey
Noni L. Ellison^
Dean C. Garfield^
Marianne Harrison†
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
Stephen Mortimer
You can also contact us: |
SEMIANNUAL REPORT | JOHN HANCOCK MID CAP GROWTH FUND | 35 |
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 |
36 | JOHN HANCOCK MID CAP GROWTH FUND | SEMIANNUAL REPORT |
GOVERNANCE FUNDS
with a heritage of financial stewardship dating back to 1862. Helping
our shareholders pursue their financial goals is at the core of everything
we do. It’s why we support the role of professional financial advice
and operate with the highest standards of conduct and integrity.
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
MF2460965 | 481SA 9/22 |
Manulife Investment Management
John Hancock Investment Management
Head of Wealth and Asset Management,
United States and Europe
SEMIANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL EQUITY INCOME FUND | 1 |
TOP 10 HOLDINGS AS OF 9/30/2022 (% of net assets) | |
Morgan Stanley | 3.9 |
State Street Corp. | 3.8 |
Citigroup, Inc. | 3.7 |
Lennar Corp., A Shares | 3.6 |
Crown Castle, Inc. | 3.2 |
Comcast Corp., Class A | 3.1 |
KKR & Company, Inc. | 3.1 |
Walmart, Inc. | 3.0 |
The Goldman Sachs Group, Inc. | 3.0 |
Texas Instruments, Inc. | 2.9 |
TOTAL | 33.3 |
Cash and cash equivalents are not included. |
2 | JOHN HANCOCK FUNDAMENTAL EQUITY INCOME FUND | SEMIANNUAL REPORT |
SEMIANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL EQUITY INCOME FUND | 3 |
Account value on 4-1-2022 | Ending value on 9-30-2022 | Expenses paid during period ended 9-30-20221 | Annualized expense ratio | ||
Class I | Actual expenses/actual returns2 | $1,000.00 | $913.30 | $2.04 | 0.82% |
Hypothetical example | 1,000.00 | 1,021.00 | 4.15 | 0.82% |
1 | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period). |
2 | The inception date for the fund is 06-28-22. Actual Expenses are equal to the fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 94/365 (to reflect the period). |
4 | JOHN HANCOCK FUNDAMENTAL EQUITY INCOME FUND | SEMIANNUAL REPORT |
Shares | Value | ||||
Common stocks 98.3% | $4,471,761 | ||||
(Cost $4,926,979) | |||||
Communication services 6.4% | 293,343 | ||||
Interactive media and services 3.3% | |||||
Alphabet, Inc., Class A (A) | 980 | 93,737 | |||
Meta Platforms, Inc., Class A (A) | 413 | 56,036 | |||
Media 3.1% | |||||
Comcast Corp., Class A | 4,895 | 143,570 | |||
Consumer discretionary 7.6% | 343,551 | ||||
Household durables 3.6% | |||||
Lennar Corp., A Shares | 2,187 | 163,041 | |||
Internet and direct marketing retail 2.7% | |||||
Amazon.com, Inc. (A) | 574 | 64,862 | |||
eBay, Inc. | 1,520 | 55,951 | |||
Specialty retail 1.3% | |||||
The TJX Companies, Inc. | 961 | 59,697 | |||
Consumer staples 8.1% | 368,707 | ||||
Beverages 1.8% | |||||
Anheuser-Busch InBev SA/NV, ADR | 1,802 | 81,378 | |||
Food and staples retailing 3.0% | |||||
Walmart, Inc. | 1,067 | 138,390 | |||
Household products 2.8% | |||||
Reynolds Consumer Products, Inc. | 4,829 | 125,602 | |||
Personal products 0.5% | |||||
Haleon PLC, ADR (A) | 3,832 | 23,337 | |||
Energy 8.4% | 383,463 | ||||
Oil, gas and consumable fuels 8.4% | |||||
Cheniere Energy, Inc. | 572 | 94,901 | |||
Kinder Morgan, Inc. | 7,724 | 128,527 | |||
Suncor Energy, Inc. | 3,996 | 112,487 | |||
Valero Energy Corp. | 445 | 47,548 | |||
Financials 23.1% | 1,049,999 | ||||
Banks 7.5% | |||||
Citigroup, Inc. | 4,076 | 169,850 | |||
JPMorgan Chase & Co. | 816 | 85,272 | |||
Wells Fargo & Company | 2,174 | 87,438 | |||
Capital markets 15.6% | |||||
KKR & Company, Inc. | 3,301 | 141,943 | |||
Morgan Stanley | 2,259 | 178,483 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL EQUITY INCOME FUND | 5 |
Shares | Value | ||||
Financials (continued) | |||||
Capital markets (continued) | |||||
Nasdaq, Inc. | 1,422 | $80,599 | |||
State Street Corp. | 2,798 | 170,146 | |||
The Goldman Sachs Group, Inc. | 465 | 136,268 | |||
Health care 12.4% | 564,032 | ||||
Biotechnology 3.0% | |||||
Amgen, Inc. | 224 | 50,490 | |||
Gilead Sciences, Inc. | 1,392 | 85,872 | |||
Health care providers and services 1.9% | |||||
UnitedHealth Group, Inc. | 168 | 84,847 | |||
Pharmaceuticals 7.5% | |||||
Bristol-Myers Squibb Company | 1,219 | 86,659 | |||
GSK PLC, ADR | 3,065 | 90,203 | |||
Merck & Company, Inc. | 582 | 50,122 | |||
Novartis AG, ADR | 1,524 | 115,839 | |||
Industrials 7.7% | 351,477 | ||||
Aerospace and defense 2.4% | |||||
Lockheed Martin Corp. | 131 | 50,604 | |||
Raytheon Technologies Corp. | 711 | 58,202 | |||
Air freight and logistics 1.8% | |||||
United Parcel Service, Inc., Class B | 508 | 82,062 | |||
Machinery 1.6% | |||||
Parker-Hannifin Corp. | 297 | 71,966 | |||
Road and rail 1.9% | |||||
Union Pacific Corp. | 455 | 88,643 | |||
Information technology 14.8% | 671,278 | ||||
IT services 1.7% | |||||
Visa, Inc., Class A | 442 | 78,521 | |||
Semiconductors and semiconductor equipment 7.5% | |||||
Analog Devices, Inc. | 597 | 83,186 | |||
Broadcom, Inc. | 281 | 124,767 | |||
Texas Instruments, Inc. | 851 | 131,718 | |||
Software 5.6% | |||||
Adobe, Inc. (A) | 183 | 50,362 | |||
Microsoft Corp. | 405 | 94,325 | |||
Oracle Corp. | 1,775 | 108,399 | |||
Materials 2.5% | 112,995 | ||||
Chemicals 2.5% | |||||
LyondellBasell Industries NV, Class A | 1,501 | 112,995 |
6 | JOHN HANCOCK FUNDAMENTAL EQUITY INCOME FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Shares | Value | ||||
Real estate 7.3% | $332,916 | ||||
Equity real estate investment trusts 7.3% | |||||
American Tower Corp. | 472 | 101,338 | |||
Crown Castle, Inc. | 1,008 | 145,706 | |||
Lamar Advertising Company, Class A | 1,041 | 85,872 | |||
Yield (%) | Shares | Value | |||
Short-term investments 1.0% | $44,074 | ||||
(Cost $44,074) | |||||
Short-term funds 1.0% | 44,074 | ||||
John Hancock Collateral Trust (B) | 3.0556(C) | 4,401 | 43,974 | ||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 2.9329(C) | 100 | 100 |
Total investments (Cost $4,971,053) 99.3% | $4,515,835 | ||||
Other assets and liabilities, net 0.7% | 30,756 | ||||
Total net assets 100.0% | $4,546,591 |
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 9-30-22. |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL EQUITY INCOME FUND | 7 |
Assets | |
Unaffiliated investments, at value (Cost $4,927,079) | $4,471,861 |
Affiliated investments, at value (Cost $43,974) | 43,974 |
Total investments, at value (Cost $4,971,053) | 4,515,835 |
Dividends and interest receivable | 3,463 |
Receivable from affiliates | 500 |
Other assets | 89,179 |
Total assets | 4,608,977 |
Liabilities | |
Payable for investments purchased | 100 |
Payable to affiliates | |
Accounting and legal services fees | 192 |
Transfer agent fees | 452 |
Trustees’ fees | 7 |
Other liabilities and accrued expenses | 61,635 |
Total liabilities | 62,386 |
Net assets | $4,546,591 |
Net assets consist of | |
Paid-in capital | $5,000,000 |
Total distributable earnings (loss) | (453,409) |
Net assets | $4,546,591 |
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 I ($4,546,591 ÷ 500,000 shares) | $9.09 |
8 | JOHN HANCOCK Fundamental Equity Income Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Investment income | |
Dividends | $33,864 |
Interest | 781 |
Less foreign taxes withheld | (214) |
Total investment income | 34,431 |
Expenses | |
Investment management fees | 7,867 |
Accounting and legal services fees | 192 |
Transfer agent fees | 1,473 |
Trustees’ fees | 20 |
Custodian fees | 6,242 |
Printing and postage | 3,950 |
Professional fees | 40,959 |
Other | 1,435 |
Total expenses | 62,138 |
Less expense reductions | (51,358) |
Net expenses | 10,780 |
Net investment income | 23,651 |
Realized and unrealized gain (loss) | |
Net realized gain (loss) on | |
Unaffiliated investments and foreign currency transactions | (57) |
(57) | |
Change in net unrealized appreciation (depreciation) of | |
Unaffiliated investments | (455,218) |
(455,218) | |
Net realized and unrealized loss | (455,275) |
Decrease in net assets from operations | $(431,624) |
1 Period from 6-28-22 (commencement of operations) to 9-30-22. |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK Fundamental Equity Income Fund | 9 |
Period ended 9-30-221 (unaudited) | |
Increase (decrease) in net assets | |
From operations | |
Net investment income | $23,651 |
Net realized loss | (57) |
Change in net unrealized appreciation (depreciation) | (455,218) |
Decrease in net assets resulting from operations | (431,624) |
Distributions to shareholders | |
From earnings | |
Class I | (21,785) |
Total distributions | (21,785) |
From fund share transactions | 5,000,000 |
Total increase | 4,546,591 |
Net assets | |
Beginning of period | — |
End of period | $4,546,591 |
1 | Period from 6-28-22 (commencement of operations) to 9-30-22. |
10 | JOHN HANCOCK Fundamental Equity Income Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS I SHARES Period ended | 9-30-221 |
Per share operating performance | |
Net asset value, beginning of period | $10.00 |
Net investment income2 | 0.05 |
Net realized and unrealized gain (loss) on investments | (0.92) |
Total from investment operations | (0.87) |
Less distributions | |
From net investment income | (0.04) |
Net asset value, end of period | $9.09 |
Total return (%)3 | (8.67)4 |
Ratios and supplemental data | |
Net assets, end of period (in millions) | $5 |
Ratios (as a percentage of average net assets): | |
Expenses before reductions | 4.205 |
Expenses including reductions | 0.825 |
Net investment income | 1.806 |
Portfolio turnover (%) | 0 |
1 | Period from 6-28-22 (commencement of operations) to 9-30-22. Unaudited. |
2 | Based on average daily shares outstanding. |
3 | Total returns would have been lower had certain expenses not been reduced during the period. |
4 | Not annualized. |
5 | Annualized. Certain expenses are presented unannualized. |
6 | Annualized. |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK Fundamental Equity Income Fund | 11 |
12 | JOHN HANCOCK Fundamental Equity Income Fund | SEMIANNUAL REPORT |
SEMIANNUAL REPORT | JOHN HANCOCK Fundamental Equity Income Fund | 13 |
14 | JOHN HANCOCK Fundamental Equity Income Fund | SEMIANNUAL REPORT |
Period ended 9-30-221 | ||
Shares | Amount | |
Class I shares | ||
Sold | 500,000 | $5,000,000 |
Net increase | 500,000 | $5,000,000 |
Total net increase | 500,000 | $5,000,000 |
1 | Period from 6-28-22 (commencement of operations) to 9-30-22. |
SEMIANNUAL REPORT | JOHN HANCOCK Fundamental Equity Income Fund | 15 |
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 | 4,401 | — | $43,974 | — | — | — | — | — | $43,974 |
16 | JOHN HANCOCK Fundamental Equity Income Fund | SEMIANNUAL REPORT |
Total votes for the nominee | Total votes withheld from the nominee | |
Independent Trustees | ||
James R. Boyle | 930,432,312.451 | 29,179,649.679 |
Frances G. Rathke | 931,340,368.276 | 28,271,593.854 |
Noni L. Ellison | 931,852,358.590 | 27,759,603.540 |
Dean Garfield | 931,587,791.505 | 28,024,170.625 |
Patricia Lizarraga | 931,662,411.746 | 27,949,550.384 |
Non-Independent Trustees | ||
Andrew G. Arnott | 931,573,268.898 | 28,038,693.232 |
Marianne Harrison | 932,138,670.225 | 27,473,291.905 |
Paul Lorentz | 931,257,810.391 | 28,354,151.739 |
SEMIANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL EQUITY INCOME FUND | 17 |
(a) | an amendment to the advisory agreement between the Trust and John Hancock Investment Management LLC (the Advisor) (the Advisory Agreement); and |
(b) | a subadvisory agreement between the Advisor and Manulife Investment Management (US) LLC (the Subadvisor) with respect to the New Fund (the Subadvisory Agreement). |
18 | JOHN HANCOCK FUNDAMENTAL EQUITY INCOME FUND | SEMIANNUAL REPORT |
(a) | the skills and competency with which the Advisor has in the past managed the Trust’s affairs and its subadvisory relationships, the Advisor’s oversight and monitoring of the subadvisors’ investment performance and compliance programs, such as the subadvisors’ 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 New 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 New Fund, and bringing loss recovery actions on behalf of the New Fund |
SEMIANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL EQUITY INCOME FUND | 19 |
(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 New Fund; |
(f) | the Advisor’s initiatives intended to improve various aspects of the Trust’s operations and investor experience with the New 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 financial information of the Advisor; |
(b) | noted that because the New Fund had not yet commenced operations, no actual revenue, cost or profitability data was available, although the Board received information from the Advisor on its projected profitability with respect to the New Fund; |
20 | JOHN HANCOCK FUNDAMENTAL EQUITY INCOME FUND | SEMIANNUAL REPORT |
(c) | received and reviewed profitability information with respect to the John Hancock Fund Complex as a whole; |
(d) | received information with respect to the Advisor’s allocation methodologies used in preparing the profitability data; |
(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 will also provide administrative services to the New Fund on a cost basis pursuant to an administrative services agreement; |
(g) | noted that affiliates of the Advisor will 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 will derive reputational and other indirect benefits from providing advisory services to the New Fund; |
(i) | noted that the subadvisory fee for the New Fund will be paid by Advisor; and |
(j) | considered that the Advisor should be entitled to earn a reasonable level of profits in exchange for the level of services it will provide to the New 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 New 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 proposed advisory fee structure for the New Fund and concluded that: (i) the New 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 New Fund; and (ii) although economies of scale cannot be measured with precision, these arrangements will permit shareholders of the New Fund to benefit from economies of scale if the New Fund grows. The Board also took into account management’s discussion of the New Fund’s advisory fee structure; and |
(c) | the Board also considered the potential effect of the New Fund’s future growth in size on its performance and fees. The Board also noted that if the New Fund’s assets increase over time, the New Fund may realize other economies of scale. |
(a) | information relating to the Subadvisor’s business; |
SEMIANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL EQUITY INCOME FUND | 21 |
(b) | the performance of comparable funds, as applicable, managed by the New Fund’s Subadvisor; |
(c) | the proposed subadvisory fee for the New Fund, including any breakpoints; and |
(d) | Information relating to the nature and scope of any material relationships and their significance to the Trust’s Advisor and Subadvisor. |
22 | JOHN HANCOCK FUNDAMENTAL EQUITY INCOME FUND | SEMIANNUAL REPORT |
(1) | the Subadvisor has extensive experience and demonstrated skills as a manager, and may reasonably be expected to provide a high quality of investment management services to the New Fund; |
(2) | the Subadvisor provided performance information for a composite of comparable accounts over various time periods; |
(3) | the proposed subadvisory fees are reasonable in relation to the level and quality of services to be provided under the Subadvisory Agreement; and |
(4) | that the subadvisory fees will be paid by the Advisor not the New Fund and that the subadvisory fee breakpoints are reflected as breakpoints in the advisory fees for the New Fund in order to permit shareholders to benefit from economies of scale if the New Fund grows. |
SEMIANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL EQUITY INCOME FUND | 23 |
Steven R. Pruchansky, Vice Chairperson
Andrew G. Arnott†
James R. Boyle
Peter S. Burgess*
William H. Cunningham*
Grace K. Fey
Noni L. Ellison^
Dean C. Garfield^
Marianne Harrison†
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
Nicholas P. Renart
Emory W. Sanders, Jr., CFA
Jonathan T. White, CFA
You can also contact us: |
24 | JOHN HANCOCK FUNDAMENTAL EQUITY INCOME FUND | SEMIANNUAL REPORT |
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 |
SEMIANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL EQUITY INCOME FUND | 25 |
GOVERNANCE FUNDS
with a heritage of financial stewardship dating back to 1862. Helping
our shareholders pursue their financial goals is at the core of everything
we do. It’s why we support the role of professional financial advice
and operate with the highest standards of conduct and integrity.
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
490SA 9/22 |
ITEM 2. CODE OF ETHICS.
(a)Not Applicable.
(b)Not Applicable.
(c)Not Applicable.
(d)Not Applicable.
(e)Not Applicable.
(f)Not Applicable.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not Applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a)Not Applicable.
(b)Not Applicable.
(c)Not Applicable.
(d)Not Applicable.
(e)Not Applicable.
(f)Not Applicable.
(g)Not Applicable.
(h)Not Applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
Not Applicable.
ITEM 6. SCHEDULE OF INVESTMENTS.
(a)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 MANGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 13. EXHIBITS.
(a)(1) Not applicable.
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 Investment Trust
By: | /s/ Andrew Arnott |
-------------------------------- | |
Andrew Arnott | |
President | |
Date: | November 2, 2022 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ Andrew Arnott |
-------------------------------- | |
Andrew Arnott | |
President | |
Date: | November 2, 2022 |
By: | /s/ Charles A. Rizzo |
-------------------------------- | |
Charles A. Rizzo | |
Chief Financial Officer | |
Date: | November 2, 2022 |