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 811-2402
John Hancock Sovereign Bond Fund
(Exact name of registrant as specified in charter)
601 Congress Street, Boston, Massachusetts 02210
(Address of principal executive offices) (Zip code)
Salvatore Schiavone
Treasurer
601 Congress Street
Boston, Massachusetts 02210
(Name and address of agent for service)
Registrant's telephone number, including area code: 617-663-4497
Date of fiscal year end: | May 31 | |
Date of reporting period: | November 30, 2017 |
ITEM 1. REPORTS TO STOCKHOLDERS.
John Hancock
Bond Fund
Semiannual report 11/30/17
A message to shareholders
Dear shareholder,
The divergent performance of bond markets over the latter half of 2017 highlights the need for a diversified approach to fixed income. Credit-sensitive sectors, including high-yield bonds and emerging-market debt, posted gains as investors grew increasingly optimistic about the economic outlook both in the United States and globally, particularly after the passage of sweeping tax reform in the U.S. Segments of the market more sensitive to interest-rate changes, meanwhile, posted muted gains or even losses, as was the case with certain U.S. Treasury securities. The pressures driving these markets could persist for some time: The U.S. Federal Reserve (Fed) continued to gradually normalize interest rates on the back of an improving economy, and that trend is expected to continue into 2018 under new Fed Chairman Jerome Powell.
Environments like these can be challenging for investors: The relative safety offered by high-quality bonds is often tested when rates rise, while the credit segments of the market can be more susceptible to economic volatility. Although there are no easy answers for income-seeking investors, your best resource, as always, is your financial advisor, who can help position your portfolio so that it is sufficiently diversified to meet your long-term objectives and to withstand the inevitable bumps along the road.
On behalf of everyone at John Hancock Investments, I'd like to take this opportunity to welcome new shareholders and to thank existing shareholders for the continued trust you've placed in us.
Sincerely,
Andrew G. Arnott
President and Chief Executive Officer
John Hancock Investments
This commentary reflects the CEO's views, which are subject to change at any time. Investing involves risks, including the potential loss of principal. Diversification does not guarantee a profit or eliminate the risk of a loss. It is not possible to invest directly into an index. For more up-to-date information, please visit our website at jhinvestments.com.
John Hancock
Bond Fund
INVESTMENT OBJECTIVE
The fund seeks a high level of current income consistent with prudent investment risk.
AVERAGE ANNUAL TOTAL RETURNS AS OF 11/30/17 (%)
The Bloomberg Barclays U.S. Aggregate Bond Index is an unmanaged index of dollar-denominated and non-convertible investment-grade debt issues.
It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns.
Figures from Morningstar, Inc. include reinvested distributions and do not take into account sales charges. Actual load-adjusted performance is lower.
The past performance shown here reflects reinvested distributions and the beneficial effect of any expense reductions, and does not guarantee future results. Returns for periods shorter than one year are cumulative. Performance of the other share classes will vary based on the difference in the fees and expenses of those classes. Shares will fluctuate in value and, when redeemed, may be worth more or less than their original cost. Current month-end performance may be lower or higher than the performance cited, and can be found at jhinvestments.com or by calling 800-225-5291. For further information on the fund's objectives, risks, and strategy, see the fund's prospectus.
PERFORMANCE HIGHLIGHTS OVER THE LAST SIX MONTHS
Longer-term yields were somewhat volatile though generally rangebound
Yields fluctuated during the period, while the U.S. Federal Reserve continued to take steps to normalize monetary policy.
Risk assets led the bond market's advance
Investors' outlook for improved economic conditions in the United States fueled gains in risk assets, such as high-yield bonds, while interest-rate-sensitive securities, such as U.S. Treasuries, struggled.
The fund generated a positive return
The fund notched gains during the period, outperforming its benchmark, the Bloomberg Barclays U.S. Aggregate Bond Index.
PORTFOLIO COMPOSITION AS OF 11/30/17 (%)
A note about risks
Fixed-income investments are subject to interest-rate and credit risk; their value will normally decline as interest rates rise or if a creditor, grantor, or counterparty is unable or unwilling to make principal, interest, or settlement payments. Investments in higher-yielding, lower-rated securities are subject to a higher risk of default. A fund concentrated in one sector or that holds a limited number of securities may fluctuate more than a fund that invests in a wider variety of sectors. Foreign investing has additional risks, such as currency and market volatility and political and social instability. Mortgage- and asset-backed securities may be sensitive to changes in interest rates, and may be subject to early repayment and the market's perception of issuer creditworthiness. Liquidity—the extent to which a security may be sold or a derivative position closed without negatively affecting its market value—may be impaired by reduced trading volume, heightened volatility, rising interest rates, and other market conditions. Derivatives transactions, such as hedging and other strategic transactions, may increase a fund's volatility and could produce disproportionate losses, potentially more than the fund's principal investment. Fund distributions generally depend on income from underlying investments and may vary or cease altogether in the future. Please see the fund's prospectus for additional risks.
An interview with Portfolio Managers Howard C. Greene, CFA, and Jeffrey N. Given, CFA, John Hancock Asset Management a division of Manulife Asset Management (US) LLC
Howard C. Greene, CFA
Portfolio Manager
John Hancock Asset Management
Jeffrey N. Given, CFA
Portfolio Manager
John Hancock Asset Management
The six months ended November 30, 2017, represented a relatively calm period for fixed-income investors. What were some of the factors moving markets?
A number of themes drove market performance during the past six months. Investor confidence was generally high, as data continued to reflect strengthening economies, both in the United States and abroad. Investors in the United States finally had some policy news to react to, as a sweeping tax reform bill was signed into law after period end.
Interest rates continued to be rangebound, with yields on 10-year U.S. Treasuries declining steadily through early September, then reversing direction to close out November slightly higher than where they began. The U.S. Federal Reserve (Fed) raised rates twice—once in June and again after the period ended in December—bringing the federal funds rate, the benchmark interest rate for short-term lending, to 1.25%-1.50%.
Against this backdrop, risk assets continued to notch gains, with high-yield bonds (generally those rated BB and below) and emerging-market debt both gaining ground, while more interest-rate-sensitive segments of the market, such as U.S. Treasuries, underperformed, and in some cases posted losses.
With Jerome Powell likely to become the next Fed chair in early 2018, what is your outlook for interest rates and monetary policy?
The consensus is that Powell, once confirmed, will seek to continue the moderate, data-driven approach the Fed has been pursuing since the financial crisis in 2007-2008. Powell has been a governor on the Federal Reserve since 2012 and has firsthand experience navigating the balancing act that is accommodating economic growth on one hand and normalizing policy on the other. As for interest rates, the Fed's own projections call for two to three rate increases in 2018, which sounds like a reasonable estimate to us.
QUALITY COMPOSITION AS OF 11/30/17 (%)
What positions helped the fund's performance versus its benchmark, the Bloomberg Barclays U.S. Aggregate Bond Index?
One of the biggest positive contributions to performance came from the fund's limited exposure to U.S. Treasuries and its slightly below-benchmark exposure to duration, which measures a portfolio's sensitivity to interest rates. The fund's duration at period end was 5.75 years, compared with 6.00 years for the benchmark. Treasuries generally lagged the rest of the bond market and sold off toward the end of the period; the fund's underweight position contributed positively to relative returns. Likewise, the fund's lower duration profile meant it was less susceptible to price declines as interest rates rose.
Another big contributor was the fund's modest position in high-yield debt, which gained during the period. Investment-grade corporate debt also had a positive effect on returns, and strong security selection in the corporate bond space was beneficial to relative results. Finally, the fund's overweight exposure to commercial mortgage-backed securities (CMBS) boosted relative returns. Fundamentals in commercial real estate, which tend to be correlated with the health of the overall economy, continued to strengthen during the period and CMBS benefited.
What positions detracted from relative performance?
The fund's position in investment-grade U.S. utilities was a slight drag on returns, as were allocations to certain asset-backed securities, including securities backed by auto loans and credit
COUNTRY COMPOSITION AS OF 11/30/17 (%)
United States | 89.0 |
United Kingdom | 2.1 |
Netherlands | 1.4 |
France | 1.3 |
Ireland | 1.0 |
Other countries | 5.2 |
TOTAL | 100.0 |
As a percentage of net assets. |
card receivables. Altogether, these were relatively small positions for the fund and were only a minor factor in the fund's relative results versus the benchmark.
How are you positioning the fund heading into 2018?
We're continuing to take a fairly conservative stance in general as we head into the new year. While the economy has been showing some encouraging signs, we still don't believe now is the time to be making big bets on either interest rates or credit. To that end, we held a modestly defensive stance with respect to the fund's duration; however, sector weighting and individual security selection remain our primary strategic emphasis. With that said, the fund holds some floating-rate securities, primarily MBS that hold adjustable rate loans. These investments can benefit should interest rates continue to move higher, and we believe they provide an element of diversification to the fund.
With regard to credit, we have been focused on high-quality securities within both the investment-grade space and the high-yield area. While our primary goal is to offer investors a well-diversified portfolio, in general we prefer credit-driven holdings over rate-sensitive securities, given the incremental yields offered and the strength of underlying fundamentals.
The reality for investors, however, is that for the foreseeable future, we are likely to remain in an environment of coupon-driven returns. There are not a lot of opportunities in the market for meaningful price appreciation, and as the Fed continues to normalize monetary policy, individual security selection will become increasingly important. While the markets seem to have already priced in stronger economic growth under a Trump administration, we believe our slightly more conservative stance is warranted until policy changes become realities and that growth manifests itself in economic data.
MANAGED BY
Howard C. Greene, CFA On the fund since 2002 Investing since 1979 | |
Jeffrey N. Given, CFA On the fund since 2006 Investing since 1993 |
TOTAL RETURNS FOR THE PERIOD ENDED NOVEMBER 30, 2017
Average annual total returns (%) with maximum sales charge | Cumulative total returns (%) with maximum sales charge | SEC 30-day yield (%) subsidized | SEC 30-day yield (%) unsubsidized1 | ||||||||
1-year | 5-year | 10-year | 6-month | 5-year | 10-year | as of 11-30-17 | as of 11-30-17 | ||||
Class A | 0.75 | 2.37 | 5.27 | -2.67 | 12.43 | 67.19 | 2.56 | 2.55 | |||
Class B | -0.85 | 2.12 | 5.12 | -4.04 | 11.07 | 64.72 | 1.97 | 1.96 | |||
Class C | 3.21 | 2.49 | 4.97 | 0.01 | 13.07 | 62.45 | 1.97 | 1.96 | |||
Class I2 | 5.26 | 3.53 | 6.10 | 1.52 | 18.97 | 80.77 | 2.97 | 2.96 | |||
Class R22,3 | 4.78 | 3.16 | 5.70 | 1.26 | 16.81 | 74.05 | 2.59 | 2.58 | |||
Class R42,3 | 5.10 | 3.31 | 5.76 | 1.44 | 17.70 | 75.10 | 2.82 | 2.71 | |||
Class R62,3 | 5.37 | 3.66 | 6.01 | 1.51 | 19.68 | 79.20 | 3.07 | 3.06 | |||
Class NAV2,3 | 5.37 | 3.41 | 5.81 | 1.58 | 18.23 | 75.89 | 3.08 | 3.07 | |||
Index† | 3.21 | 1.98 | 3.99 | 0.68 | 10.29 | 47.84 | — | — |
Performance figures assume all distributions have been reinvested. Figures reflect maximum sales charges on Class A shares of 4.0% and the applicable contingent deferred sales charge (CDSC) on Class B and Class C shares. The returns for Class A shares have been adjusted to reflect the reduction in the maximum sales charge from 4.5% to 4.0%, effective 2-3-14. The Class B shares' CDSC declines annually between years 1 to 6 according to the following schedule: 5%, 4%, 3%, 3%, 2%, 1%. No sales charge will be assessed after the sixth year. Class C shares sold within one year of purchase are subject to a 1% CDSC. Sales charges are not applicable to Class I, Class R2, Class R4, Class R6, and Class NAV shares.
The expense ratios of the fund, both net (including any fee waivers and/or expense limitations) and gross (excluding any fee waivers and/or expense limitations), are set forth according to the most recent publicly available prospectuses for the fund and may differ from those disclosed in the Financial highlights tables in this report. Had the fee waivers and expense limitations not been in place, gross expenses would apply. The expense ratios are as follows:
Class A | Class B | Class C | Class I | Class R2 | Class R4 | Class R6 | Class NAV | |
Gross (%) | 0.84 | 1.54 | 1.54 | 0.52 | 0.93 | 0.78 | 0.43 | 0.41 |
Net (%) | 0.84 | 1.54 | 1.54 | 0.52 | 0.93 | 0.68 | 0.43 | 0.41 |
Please refer to the most recent prospectus and annual or semiannual report for more information on expenses and any expense limitation arrangements for each class.
The returns reflect past results and should not be considered indicative of future performance. The return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility and other factors, the fund's current performance may be higher or lower than the performance shown. For current to the most recent month-end performance data, please call 800-225-5291 or visit the fund's website at jhinvestments.com.
The performance table above and the chart on the next page do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The fund's performance results reflect any applicable fee waivers or expense reductions, without which the expenses would increase and results would have been less favorable.
† | Index is the Bloomberg Barclays U.S. Aggregate Bond Index. |
See the following page for footnotes.
This chart and table show what happened to a hypothetical $10,000 investment in John Hancock Bond Fund for the share classes and periods indicated, assuming all distributions were reinvested. For comparison, we've shown the same investment in the Bloomberg Barclays U.S. Aggregate Bond Index.
The values shown in the chart for Class A shares with maximum sales charge have been adjusted to reflect the reduction in the Class A shares' maximum sales charge from 4.5% to 4.0%, which became effective on 2-3-14.
The Bloomberg Barclays U.S. Aggregate Bond Index is an unmanaged index of dollar-denominated and non-convertible investment-grade debt issues.
It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns.
Footnotes related to performance pages
1 | Unsubsidized yield reflects what the yield would have been without the effect of reimbursements and waivers. |
2 | For certain types of investors, as described in the fund's prospectuses. |
3 | Class R2 shares were first offered 3-1-12; Class R4 shares were first offered 3-27-15; Class R6 shares were first offered 9-1-11; Class NAV shares were first offered 8-31-15. Returns prior to these dates are those of Class A shares except they do not include sales charges, and have not been adjusted for class-specific expenses; otherwise returns would vary. |
4 | The contingent deferred sales charge is not applicable. |
These examples are intended to help you understand your ongoing operating expenses of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds.
Understanding fund expenses
As a shareholder of the fund, you incur two types of costs:
• | Transaction costs, which include sales charges (loads) on purchases or redemptions (varies by share class), minimum account fee charge, etc. |
• | Ongoing operating expenses, including management fees, distribution and service fees (if applicable), and other fund expenses. |
We are presenting only your ongoing operating expenses here.
Actual expenses/actual returns
The first line of each share class in the table on the following page is intended to provide information about the fund's actual ongoing operating expenses, and is based on the fund's actual return. It assumes an account value of $1,000.00 on June 1, 2017, with the same investment held until November 30, 2017.
Together with the value of your account, you may use this information to estimate the operating expenses that you paid over the period. Simply divide your account value at November 30, 2017, by $1,000.00, then multiply it by the "expenses paid" for your share class from the table. For example, for an account value of $8,600.00, the operating expenses should be calculated as follows:
Hypothetical example for comparison purposes
The second line of each share class in the table on the following page allows you to compare the fund's ongoing operating expenses with those of any other fund. It provides an example of the fund's hypothetical account values and hypothetical expenses based on each class's actual expense ratio and an assumed 5% annualized return before expenses (which is not the fund's actual return). It assumes an account value of $1,000.00 on June 1, 2017, with the same investment held until November 30, 2017. Look in any other fund shareholder report to find its hypothetical example and you will be able to compare these expenses. Please remember that these hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period.
Remember, these examples do not include any transaction costs, therefore, these examples will not help you to determine the relative total costs of owning different funds. If transaction costs were included, your expenses would have been higher. See the prospectuses for details regarding transaction costs.
SHAREHOLDER EXPENSE EXAMPLE CHART
Account value on 6-1-2017 | Ending value on 11-30-2017 | Expenses paid during period ended 11-30-20171 | Annualized expense ratio | ||
Class A | Actual expenses/actual returns | $1,000.00 | $1,013.70 | $3.99 | 0.79% |
Hypothetical example for comparison purposes | 1,000.00 | 1,021.10 | 4.00 | 0.79% | |
Class B | Actual expenses/actual returns | 1,000.00 | 1,009.50 | 7.51 | 1.49% |
Hypothetical example for comparison purposes | 1,000.00 | 1,017.60 | 7.54 | 1.49% | |
Class C | Actual expenses/actual returns | 1,000.00 | 1,010.10 | 7.51 | 1.49% |
Hypothetical example for comparison purposes | 1,000.00 | 1,017.60 | 7.54 | 1.49% | |
Class I | Actual expenses/actual returns | 1,000.00 | 1,015.20 | 2.42 | 0.48% |
Hypothetical example for comparison purposes | 1,000.00 | 1,022.70 | 2.43 | 0.48% | |
Class R2 | Actual expenses/actual returns | 1,000.00 | 1,012.60 | 4.44 | 0.88% |
Hypothetical example for comparison purposes | 1,000.00 | 1,020.70 | 4.46 | 0.88% | |
Class R4 | Actual expenses/actual returns | 1,000.00 | 1,014.40 | 3.23 | 0.64% |
Hypothetical example for comparison purposes | 1,000.00 | 1,021.90 | 3.24 | 0.64% | |
Class R6 | Actual expenses/actual returns | 1,000.00 | 1,015.10 | 1.97 | 0.39% |
Hypothetical example for comparison purposes | 1,000.00 | 1,023.10 | 1.98 | 0.39% | |
Class NAV | Actual expenses/actual returns | 1,000.00 | 1,015.80 | 1.92 | 0.38% |
Hypothetical example for comparison purposes | 1,000.00 | 1,023.20 | 1.93 | 0.38% |
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). |
Fund’s investments |
AS OF 11-30-17 (unaudited) | ||||||||
Rate (%) | Maturity date | Par value^ | Value | |||||
U.S. Government and Agency obligations 34.2% | $3,888,161,350 | |||||||
(Cost $3,865,308,219) | ||||||||
U.S. Government 14.6% | 1,664,442,273 | |||||||
U.S. Treasury | ||||||||
Bond | 2.750 | 11-15-42 | 369,130,000 | 365,034,964 | ||||
Bond | 2.750 | 08-15-47 | 308,127,000 | 302,482,018 | ||||
Bond | 3.000 | 02-15-47 | 166,770,000 | 172,046,706 | ||||
Note | 1.375 | 09-15-20 | 141,265,000 | 139,355,716 | ||||
Note | 1.500 | 08-15-20 | 101,610,000 | 100,609,777 | ||||
Note | 1.625 | 10-15-20 | 47,270,000 | 46,906,243 | ||||
Note | 2.000 | 11-30-20 | 265,375,000 | 265,996,973 | ||||
Note | 2.250 | 11-15-27 | 236,559,000 | 233,029,095 | ||||
Treasury Inflation Protected Security | 0.375 | 07-15-25 | 39,236,577 | 38,980,781 | ||||
U.S. Government Agency 19.6% | 2,223,719,077 | |||||||
Federal Home Loan Mortgage Corp. | ||||||||
30 Yr Pass Thru | 3.000 | 03-01-43 | 7,246,850 | 7,296,060 | ||||
30 Yr Pass Thru | 3.000 | 04-01-43 | 8,039,682 | 8,069,151 | ||||
30 Yr Pass Thru | 3.000 | 06-01-43 | 2,934,084 | 2,947,590 | ||||
30 Yr Pass Thru | 3.000 | 05-01-46 | 5,287,031 | 5,297,324 | ||||
30 Yr Pass Thru | 3.000 | 10-01-46 | 21,444,570 | 21,480,429 | ||||
30 Yr Pass Thru | 3.000 | 11-01-46 | 20,328,459 | 20,333,094 | ||||
30 Yr Pass Thru | 3.000 | 12-01-46 | 90,645,153 | 90,609,167 | ||||
30 Yr Pass Thru | 3.000 | 04-01-47 | 59,491,305 | 59,504,869 | ||||
30 Yr Pass Thru | 3.500 | 02-01-41 | 19,075,369 | 19,658,317 | ||||
30 Yr Pass Thru | 3.500 | 01-01-42 | 1,898,460 | 1,962,113 | ||||
30 Yr Pass Thru | 3.500 | 05-01-42 | 1,711,417 | 1,765,858 | ||||
30 Yr Pass Thru | 3.500 | 06-01-42 | 7,418,222 | 7,654,198 | ||||
30 Yr Pass Thru | 3.500 | 08-01-42 | 2,009,423 | 2,073,343 | ||||
30 Yr Pass Thru | 3.500 | 09-01-42 | 2,350,571 | 2,423,874 | ||||
30 Yr Pass Thru | 3.500 | 04-01-44 | 8,487,562 | 8,788,056 | ||||
30 Yr Pass Thru | 3.500 | 05-01-45 | 20,374,578 | 21,003,598 | ||||
30 Yr Pass Thru | 3.500 | 01-01-46 | 2,466,934 | 2,541,553 | ||||
30 Yr Pass Thru | 3.500 | 08-01-46 | 102,181,038 | 105,399,516 | ||||
30 Yr Pass Thru | 3.500 | 09-01-46 | 43,283,282 | 44,533,726 | ||||
30 Yr Pass Thru | 3.500 | 10-01-46 | 6,807,957 | 7,023,457 | ||||
30 Yr Pass Thru | 3.500 | 10-01-46 | 33,298,375 | 34,368,012 | ||||
30 Yr Pass Thru | 3.500 | 12-01-46 | 21,441,992 | 22,083,864 | ||||
30 Yr Pass Thru | 3.500 | 01-01-47 | 12,091,470 | 12,468,547 | ||||
30 Yr Pass Thru | 3.500 | 02-01-47 | 21,364,062 | 22,040,323 | ||||
30 Yr Pass Thru | 3.500 | 04-01-47 | 22,186,491 | 22,878,383 | ||||
30 Yr Pass Thru | 3.500 | 11-01-47 | 56,385,000 | 58,213,864 | ||||
30 Yr Pass Thru | 4.000 | 01-01-41 | 20,497,785 | 21,592,996 | ||||
30 Yr Pass Thru | 4.000 | 03-01-42 | 10,046,812 | 10,582,051 | ||||
30 Yr Pass Thru | 4.000 | 11-01-43 | 5,979,406 | 6,369,895 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK BOND FUND 12 |
Rate (%) | Maturity date | Par value^ | Value | |||||
U.S. Government Agency (continued) | ||||||||
30 Yr Pass Thru | 4.000 | 02-01-44 | 2,700,654 | $2,839,044 | ||||
30 Yr Pass Thru | 4.000 | 07-01-45 | 30,304,732 | 31,985,493 | ||||
30 Yr Pass Thru | 4.000 | 01-01-47 | 18,910,079 | 19,961,824 | ||||
30 Yr Pass Thru | 4.000 | 03-01-47 | 101,902,967 | 107,177,364 | ||||
30 Yr Pass Thru | 4.000 | 04-01-47 | 32,478,563 | 34,371,235 | ||||
30 Yr Pass Thru | 4.000 | 05-01-47 | 24,457,798 | 25,890,707 | ||||
30 Yr Pass Thru | 4.000 | 10-01-47 | 41,508,791 | 43,895,264 | ||||
30 Yr Pass Thru | 4.500 | 11-01-39 | 2,971,496 | 3,189,982 | ||||
30 Yr Pass Thru | 4.500 | 02-01-41 | 4,761,691 | 5,108,828 | ||||
30 Yr Pass Thru | 4.500 | 03-01-41 | 3,052,371 | 3,307,804 | ||||
30 Yr Pass Thru | 4.500 | 09-01-41 | 1,984,755 | 2,127,587 | ||||
30 Yr Pass Thru | 4.500 | 10-01-41 | 2,200,213 | 2,358,551 | ||||
30 Yr Pass Thru | 4.500 | 06-01-47 | 27,904,891 | 30,144,147 | ||||
30 Yr Pass Thru | 5.000 | 03-01-41 | 1,541,328 | 1,673,784 | ||||
30 Yr Pass Thru | 5.500 | 05-01-38 | 309,133 | 346,356 | ||||
30 Yr Pass Thru | 5.500 | 11-01-39 | 6,323,912 | 7,085,375 | ||||
Federal National Mortgage Association | ||||||||
15 Yr Pass Thru | 3.000 | 09-01-27 | 5,435,245 | 5,549,257 | ||||
15 Yr Pass Thru | 3.500 | 02-01-26 | 860,854 | 889,874 | ||||
15 Yr Pass Thru | 3.500 | 03-01-26 | 6,617,060 | 6,840,127 | ||||
15 Yr Pass Thru | 4.000 | 12-01-24 | 2,719,797 | 2,831,348 | ||||
15 Yr Pass Thru | 5.000 | 05-01-18 | 78 | 79 | ||||
15 Yr Pass Thru | 5.000 | 06-01-18 | 246 | 247 | ||||
15 Yr Pass Thru | 5.000 | 07-01-19 | 966 | 982 | ||||
15 Yr Pass Thru | 5.500 | 02-01-18 | 240 | 241 | ||||
30 Yr Pass Thru | 3.000 | 07-01-42 | 5,579,903 | 5,598,177 | ||||
30 Yr Pass Thru | 3.000 | 10-01-42 | 15,881,698 | 15,933,709 | ||||
30 Yr Pass Thru | 3.000 | 12-01-42 | 2,575,043 | 2,583,476 | ||||
30 Yr Pass Thru | 3.000 | 01-01-43 | 1,875,824 | 1,881,967 | ||||
30 Yr Pass Thru | 3.000 | 03-01-43 | 2,016,374 | 2,026,758 | ||||
30 Yr Pass Thru | 3.000 | 04-01-43 | 3,216,916 | 3,227,451 | ||||
30 Yr Pass Thru | 3.000 | 05-01-43 | 2,807,302 | 2,822,636 | ||||
30 Yr Pass Thru | 3.000 | 06-01-43 | 2,727,214 | 2,736,146 | ||||
30 Yr Pass Thru | 3.000 | 07-01-43 | 33,998,068 | 34,120,033 | ||||
30 Yr Pass Thru | 3.000 | 08-01-46 | 68,805,396 | 68,826,457 | ||||
30 Yr Pass Thru | 3.000 | 09-01-46 | 7,459,423 | 7,471,030 | ||||
30 Yr Pass Thru | 3.000 | 10-01-46 | 5,135,520 | 5,143,511 | ||||
30 Yr Pass Thru | 3.000 | 01-01-47 | 39,193,554 | 39,211,677 | ||||
30 Yr Pass Thru | 3.000 | 10-01-47 | 47,417,271 | 47,424,379 | ||||
30 Yr Pass Thru | 3.500 | 11-01-40 | 4,038,234 | 4,162,906 | ||||
30 Yr Pass Thru | 3.500 | 06-01-42 | 4,392,524 | 4,531,565 | ||||
30 Yr Pass Thru | 3.500 | 08-01-42 | 7,127,810 | 7,353,434 | ||||
30 Yr Pass Thru | 3.500 | 01-01-43 | 3,316,350 | 3,418,735 | ||||
30 Yr Pass Thru | 3.500 | 02-01-43 | 1,022,812 | 1,058,544 | ||||
30 Yr Pass Thru | 3.500 | 05-01-43 | 1,931,777 | 1,999,264 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK BOND FUND 13 |
Rate (%) | Maturity date | Par value^ | Value | |||||
U.S. Government Agency (continued) | ||||||||
30 Yr Pass Thru | 3.500 | 06-01-43 | 26,898,473 | $27,817,166 | ||||
30 Yr Pass Thru | 3.500 | 07-01-43 | 16,707,181 | 17,272,257 | ||||
30 Yr Pass Thru | 3.500 | 01-01-45 | 5,846,455 | 6,046,136 | ||||
30 Yr Pass Thru | 3.500 | 04-01-45 | 19,677,939 | 20,297,751 | ||||
30 Yr Pass Thru | 3.500 | 04-01-45 | 5,338,061 | 5,506,199 | ||||
30 Yr Pass Thru | 3.500 | 04-01-45 | 22,671,857 | 23,385,971 | ||||
30 Yr Pass Thru | 3.500 | 02-01-46 | 37,933,081 | 38,938,224 | ||||
30 Yr Pass Thru | 3.500 | 07-01-46 | 61,174,690 | 62,784,117 | ||||
30 Yr Pass Thru | 3.500 | 02-01-47 | 57,889,395 | 59,640,422 | ||||
30 Yr Pass Thru | 3.500 | 03-01-47 | 49,213,238 | 50,763,347 | ||||
30 Yr Pass Thru | 3.500 | 07-01-47 | 79,643,814 | 82,152,419 | ||||
30 Yr Pass Thru | 3.500 | 11-01-47 | 71,903,481 | 74,123,343 | ||||
30 Yr Pass Thru | 4.000 | 09-01-40 | 24,605,294 | 25,932,469 | ||||
30 Yr Pass Thru | 4.000 | 11-01-40 | 3,442,843 | 3,675,884 | ||||
30 Yr Pass Thru | 4.000 | 12-01-40 | 7,780,542 | 8,193,405 | ||||
30 Yr Pass Thru | 4.000 | 01-01-41 | 8,195,421 | 8,631,257 | ||||
30 Yr Pass Thru | 4.000 | 02-01-41 | 2,616,820 | 2,756,741 | ||||
30 Yr Pass Thru | 4.000 | 09-01-41 | 19,097,434 | 20,150,978 | ||||
30 Yr Pass Thru | 4.000 | 10-01-41 | 8,239,663 | 8,680,762 | ||||
30 Yr Pass Thru | 4.000 | 01-01-42 | 4,461,512 | 4,702,159 | ||||
30 Yr Pass Thru | 4.000 | 03-01-42 | 2,248,971 | 2,369,223 | ||||
30 Yr Pass Thru | 4.000 | 05-01-42 | 8,843,514 | 9,316,375 | ||||
30 Yr Pass Thru | 4.000 | 07-01-42 | 574,232 | 605,205 | ||||
30 Yr Pass Thru | 4.000 | 09-01-43 | 10,372,163 | 11,006,173 | ||||
30 Yr Pass Thru | 4.000 | 10-01-43 | 16,916,174 | 17,899,326 | ||||
30 Yr Pass Thru | 4.000 | 01-01-44 | 8,204,028 | 8,691,407 | ||||
30 Yr Pass Thru | 4.000 | 12-01-45 | 28,186,351 | 29,640,620 | ||||
30 Yr Pass Thru | 4.000 | 02-01-46 | 19,606,814 | 20,508,136 | ||||
30 Yr Pass Thru | 4.000 | 04-01-46 | 19,993,789 | 20,912,900 | ||||
30 Yr Pass Thru | 4.000 | 06-01-46 | 13,173,900 | 13,779,501 | ||||
30 Yr Pass Thru | 4.000 | 07-01-46 | 32,733,421 | 34,238,170 | ||||
30 Yr Pass Thru | 4.000 | 10-01-46 | 7,738,626 | 8,089,532 | ||||
30 Yr Pass Thru | 4.000 | 01-01-47 | 23,536,925 | 24,964,612 | ||||
30 Yr Pass Thru | 4.000 | 03-01-47 | 36,266,785 | 38,137,963 | ||||
30 Yr Pass Thru | 4.000 | 04-01-47 | 33,523,687 | 35,567,620 | ||||
30 Yr Pass Thru | 4.500 | 11-01-39 | 5,682,817 | 6,102,213 | ||||
30 Yr Pass Thru | 4.500 | 08-01-40 | 3,999,847 | 4,293,164 | ||||
30 Yr Pass Thru | 4.500 | 08-01-40 | 2,637,379 | 2,830,783 | ||||
30 Yr Pass Thru | 4.500 | 02-01-41 | 10,018,300 | 10,748,265 | ||||
30 Yr Pass Thru | 4.500 | 05-01-41 | 11,909,596 | 12,784,888 | ||||
30 Yr Pass Thru | 4.500 | 06-01-41 | 8,600,252 | 9,236,301 | ||||
30 Yr Pass Thru | 4.500 | 07-01-41 | 6,011,181 | 6,455,750 | ||||
30 Yr Pass Thru | 4.500 | 08-01-41 | 4,382,192 | 4,706,286 | ||||
30 Yr Pass Thru | 4.500 | 05-01-42 | 9,202,390 | 9,882,971 | ||||
30 Yr Pass Thru | 4.500 | 11-01-42 | 6,363,040 | 6,857,492 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK BOND FUND 14 |
Rate (%) | Maturity date | Par value^ | Value | |||||
U.S. Government Agency (continued) | ||||||||
30 Yr Pass Thru | 4.500 | 01-01-43 | 1,864,637 | $1,999,627 | ||||
30 Yr Pass Thru | 4.500 | 10-01-45 | 21,693,067 | 23,178,787 | ||||
30 Yr Pass Thru | 4.500 | 05-01-46 | 15,135,279 | 16,183,692 | ||||
30 Yr Pass Thru | 5.000 | 03-01-34 | 1,541,408 | 1,675,492 | ||||
30 Yr Pass Thru | 5.000 | 12-01-34 | 6,780 | 7,378 | ||||
30 Yr Pass Thru | 5.000 | 02-01-36 | 2,045,774 | 2,227,615 | ||||
30 Yr Pass Thru | 5.000 | 11-01-36 | 384,161 | 418,411 | ||||
30 Yr Pass Thru | 5.000 | 08-01-40 | 4,245,183 | 4,617,626 | ||||
30 Yr Pass Thru | 5.000 | 09-01-40 | 4,617,824 | 5,027,522 | ||||
30 Yr Pass Thru | 5.000 | 02-01-41 | 2,868,700 | 3,120,380 | ||||
30 Yr Pass Thru | 5.000 | 03-01-41 | 3,439,300 | 3,741,040 | ||||
30 Yr Pass Thru | 5.000 | 04-01-41 | 2,078,793 | 2,293,653 | ||||
30 Yr Pass Thru | 5.000 | 07-01-42 | 2,465,036 | 2,681,302 | ||||
30 Yr Pass Thru | 5.500 | 12-01-34 | 85,650 | 95,120 | ||||
30 Yr Pass Thru | 6.500 | 01-01-39 | 2,063,374 | 2,371,240 | ||||
30 Yr Pass Thru | 7.000 | 09-01-31 | 3,148 | 3,674 | ||||
30 Yr Pass Thru | 7.000 | 01-01-32 | 155 | 181 | ||||
30 Yr Pass Thru | 7.000 | 05-01-32 | 129 | 151 | ||||
30 Yr Pass Thru | 7.000 | 06-01-32 | 153 | 178 | ||||
30 Yr Pass Thru | 7.500 | 09-01-29 | 94 | 110 | ||||
30 Yr Pass Thru | 7.500 | 12-01-29 | 95 | 111 | ||||
30 Yr Pass Thru | 7.500 | 12-01-30 | 31 | 36 | ||||
30 Yr Pass Thru | 7.500 | 01-01-31 | 47 | 55 | ||||
30 Yr Pass Thru | 7.500 | 05-01-31 | 388 | 458 | ||||
30 Yr Pass Thru | 7.500 | 08-01-31 | 177 | 205 | ||||
Note (6 month LIBOR + 2.122%) (A) | 3.497 | 07-01-33 | 439 | 455 | ||||
Government National | ||||||||
Mortgage Association | ||||||||
30 Yr Pass Thru | 4.000 | 02-15-41 | 2,750,258 | 2,904,189 | ||||
30 Yr Pass Thru | 5.000 | 04-15-35 | 7,860 | 8,609 | ||||
30 Yr Pass Thru | 5.500 | 03-15-35 | 6,473 | 7,253 | ||||
30 Yr Pass Thru | 6.000 | 03-15-33 | 3,309 | 3,794 | ||||
30 Yr Pass Thru | 6.000 | 06-15-33 | 1,224 | 1,418 | ||||
30 Yr Pass Thru | 6.500 | 09-15-28 | 491 | 560 | ||||
30 Yr Pass Thru | 6.500 | 09-15-29 | 245 | 280 | ||||
30 Yr Pass Thru | 6.500 | 08-15-31 | 334 | 386 | ||||
30 Yr Pass Thru | 7.000 | 04-15-29 | 943 | 1,092 | ||||
30 Yr Pass Thru | 8.000 | 10-15-26 | 457 | 531 | ||||
Foreign government obligations 0.5% | $56,863,173 | |||||||
(Cost $53,719,926) | ||||||||
Argentina 0.3% | 31,170,518 | |||||||
City of Buenos Aires | ||||||||
Bond (B) | 7.500 | 06-01-27 | 3,650,000 | 4,075,225 | ||||
Provincia de Buenos Aires | ||||||||
Bond (B) | 7.875 | 06-15-27 | 7,380,000 | 8,239,032 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK BOND FUND 15 |
Rate (%) | Maturity date | Par value^ | Value | |||||||
Argentina (continued) | ||||||||||
Republic of Argentina | ||||||||||
Bond | 6.875 | 01-26-27 | 3,848,000 | $4,205,864 | ||||||
Bond | 7.500 | 04-22-26 | 8,800,000 | 9,948,400 | ||||||
Bond | 8.280 | 12-31-33 | 4,030,859 | 4,701,997 | ||||||
Brazil 0.2% | 25,692,655 | |||||||||
Federative Republic of Brazil | ||||||||||
Note | 10.000 | 01-01-23 | BRL | 80,575,000 | 25,692,655 | |||||
Corporate bonds 44.2% | $5,027,736,316 | |||||||||
(Cost $4,954,039,154) | ||||||||||
Consumer discretionary 5.9% | 670,125,086 | |||||||||
Auto components 0.2% | ||||||||||
Lear Corp. | 5.250 | 01-15-25 | 10,309,000 | 11,004,736 | ||||||
Nemak SAB de CV (B) | 5.500 | 02-28-23 | 7,496,000 | 7,702,140 | ||||||
ZF North America Capital, Inc. (B) | 4.750 | 04-29-25 | 5,990,000 | 6,381,626 | ||||||
Automobiles 1.2% | ||||||||||
American Honda Finance Corp. | 2.000 | 02-14-20 | 20,220,000 | 20,143,230 | ||||||
Daimler Finance North America LLC (B) | 2.200 | 05-05-20 | 9,875,000 | 9,826,264 | ||||||
Ford Motor Company | 4.750 | 01-15-43 | 7,510,000 | 7,433,024 | ||||||
Ford Motor Credit Company LLC | 2.375 | 03-12-19 | 7,838,000 | 7,841,275 | ||||||
Ford Motor Credit Company LLC | 5.875 | 08-02-21 | 24,785,000 | 27,390,915 | ||||||
General Motors Company | 4.875 | 10-02-23 | 18,239,000 | 19,714,800 | ||||||
General Motors Financial Company, Inc. | 4.000 | 01-15-25 | 18,144,000 | 18,485,362 | ||||||
General Motors Financial Company, Inc. | 4.300 | 07-13-25 | 15,411,000 | 15,934,041 | ||||||
Mclaren Finance PLC (B) | 5.750 | 08-01-22 | 2,925,000 | 2,983,500 | ||||||
Diversified consumer services 0.1% | ||||||||||
Laureate Education, Inc. (B) | 8.250 | 05-01-25 | 5,620,000 | 5,946,634 | ||||||
Service Corp. International | 5.375 | 05-15-24 | 8,665,000 | 9,119,913 | ||||||
Hotels, restaurants and leisure 0.5% | ||||||||||
CCM Merger, Inc. (B) | 6.000 | 03-15-22 | 8,000,000 | 8,220,000 | ||||||
Chester Downs & Marina LLC (B) | 9.250 | 02-01-20 | 9,575,000 | 9,808,630 | ||||||
Eldorado Resorts, Inc. | 7.000 | 08-01-23 | 3,770,000 | 4,048,038 | ||||||
GLP Capital LP | 5.375 | 04-15-26 | 8,100,000 | 8,742,897 | ||||||
Hilton Grand Vacations Borrower LLC (B) | 6.125 | 12-01-24 | 3,245,000 | 3,537,050 | ||||||
International Game Technology PLC (B) | 6.500 | 02-15-25 | 7,015,000 | 7,900,644 | ||||||
Jacobs Entertainment, Inc. (B) | 7.875 | 02-01-24 | 4,748,000 | 5,104,100 | ||||||
Mohegan Gaming & Entertainment (B) | 7.875 | 10-15-24 | 7,565,000 | 7,971,619 | ||||||
Waterford Gaming LLC (B)(C)(D) | 8.625 | 09-15-14 | 440,015 | 0 | ||||||
Internet and direct marketing retail 1.3% | ||||||||||
Amazon.com, Inc. (B) | 3.150 | 08-22-27 | 25,010,000 | 25,018,168 | ||||||
Amazon.com, Inc. (B) | 4.050 | 08-22-47 | 25,587,000 | 26,627,003 | ||||||
Expedia, Inc. (B) | 3.800 | 02-15-28 | 23,520,000 | 22,595,478 | ||||||
Expedia, Inc. | 5.000 | 02-15-26 | 24,972,000 | 26,782,058 | ||||||
Netflix, Inc. (B) | 4.875 | 04-15-28 | 11,555,000 | 11,396,119 | ||||||
QVC, Inc. | 4.375 | 03-15-23 | 10,252,000 | 10,546,689 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK BOND FUND 16 |
Rate (%) | Maturity date | Par value^ | Value | |||||
Consumer discretionary (continued) | ||||||||
Internet and direct marketing retail (continued) | ||||||||
QVC, Inc. | 5.125 | 07-02-22 | 6,569,000 | $6,977,347 | ||||
QVC, Inc. | 5.450 | 08-15-34 | 7,449,000 | 7,389,740 | ||||
The Priceline Group, Inc. | 2.750 | 03-15-23 | 10,570,000 | 10,449,443 | ||||
Leisure products 0.1% | ||||||||
Vista Outdoor, Inc. | 5.875 | 10-01-23 | 9,997,000 | 9,797,060 | ||||
Media 2.3% | ||||||||
Altice Financing SA (B) | 6.625 | 02-15-23 | 9,120,000 | 9,348,000 | ||||
AMC Entertainment Holdings, Inc. | 6.125 | 05-15-27 | 11,936,000 | 11,831,560 | ||||
Cengage Learning, Inc. (B) | 9.500 | 06-15-24 | 9,555,000 | 8,551,725 | ||||
Charter Communications Operating LLC | 4.200 | 03-15-28 | 22,295,000 | 21,920,912 | ||||
Charter Communications Operating LLC | 6.484 | 10-23-45 | 22,415,000 | 25,771,613 | ||||
Clear Channel Worldwide Holdings, Inc. | 6.500 | 11-15-22 | 10,227,000 | 10,342,054 | ||||
Lions Gate Entertainment Corp. (B) | 5.875 | 11-01-24 | 6,805,000 | 7,187,781 | ||||
McGraw-Hill Global Education | ||||||||
Holdings LLC (B) | 7.875 | 05-15-24 | 7,975,000 | 7,955,063 | ||||
MDC Partners, Inc. (B) | 6.500 | 05-01-24 | 10,687,000 | 10,740,435 | ||||
Midcontinent Communications (B) | 6.875 | 08-15-23 | 8,738,000 | 9,284,125 | ||||
Myriad International Holdings BV (B) | 4.850 | 07-06-27 | 3,875,000 | 4,009,463 | ||||
Myriad International Holdings BV (B) | 5.500 | 07-21-25 | 15,235,000 | 16,546,734 | ||||
National CineMedia LLC | 6.000 | 04-15-22 | 4,186,000 | 4,238,325 | ||||
Sinclair Television Group, Inc. (B) | 5.625 | 08-01-24 | 6,970,000 | 7,161,675 | ||||
Sirius XM Radio, Inc. (B) | 3.875 | 08-01-22 | 3,780,000 | 3,809,106 | ||||
Sirius XM Radio, Inc. (B) | 5.000 | 08-01-27 | 8,472,000 | 8,567,310 | ||||
Sirius XM Radio, Inc. (B) | 5.375 | 04-15-25 | 9,070,000 | 9,537,559 | ||||
Sirius XM Radio, Inc. (B) | 5.375 | 07-15-26 | 11,600,000 | 12,151,000 | ||||
Time Warner Cable LLC | 8.250 | 04-01-19 | 8,430,000 | 9,065,188 | ||||
Time Warner, Inc. | 3.800 | 02-15-27 | 13,465,000 | 13,423,537 | ||||
Viacom, Inc. | 4.375 | 03-15-43 | 9,200,000 | 7,685,142 | ||||
Viacom, Inc. | 5.850 | 09-01-43 | 14,236,000 | 14,246,735 | ||||
Viacom, Inc. (6.250% to 2-28-27, then 3 | ||||||||
month LIBOR + 3.899%) | 6.250 | 02-28-57 | 9,758,000 | 9,514,050 | ||||
WMG Acquisition Corp. (B) | 4.875 | 11-01-24 | 5,456,000 | 5,646,960 | ||||
WMG Acquisition Corp. (B) | 6.750 | 04-15-22 | 8,437,000 | 8,832,442 | ||||
Multiline retail 0.1% | ||||||||
Macy’s Retail Holdings, Inc. | 3.625 | 06-01-24 | 15,870,000 | 14,619,354 | ||||
Specialty retail 0.1% | ||||||||
L Brands, Inc. | 6.625 | 04-01-21 | 9,225,000 | 10,148,515 | ||||
L Brands, Inc. | 6.875 | 11-01-35 | 5,118,000 | 5,169,180 | ||||
Consumer staples 1.3% | 144,236,824 | |||||||
Beverages 0.5% | ||||||||
Anheuser-Busch InBev Finance, Inc. | 4.900 | 02-01-46 | 32,285,000 | 36,382,922 | ||||
Molson Coors Brewing Company | 1.450 | 07-15-19 | 12,995,000 | 12,847,528 | ||||
Molson Coors Brewing Company | 3.000 | 07-15-26 | 9,826,000 | 9,530,379 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK BOND FUND 17 |
Rate (%) | Maturity date | Par value^ | Value | |||||
Consumer staples (continued) | ||||||||
Food and staples retailing 0.2% | ||||||||
Alimentation Couche-Tard, Inc. (B) | 2.700 | 07-26-22 | 8,695,000 | $8,594,469 | ||||
CVS Health Corp. | 2.875 | 06-01-26 | 11,960,000 | 11,325,402 | ||||
Simmons Foods, Inc. (B) | 5.750 | 11-01-24 | 4,945,000 | 4,906,429 | ||||
Food products 0.3% | ||||||||
Bunge, Ltd. Finance Corp. | 8.500 | 06-15-19 | 6,016,000 | 6,555,778 | ||||
Kraft Heinz Foods Company (B) | 4.875 | 02-15-25 | 8,702,000 | 9,250,557 | ||||
Kraft Heinz Foods Company | 5.200 | 07-15-45 | 6,280,000 | 6,795,026 | ||||
Mondelez International Holdings | ||||||||
Netherlands BV (B) | 1.625 | 10-28-19 | 11,410,000 | 11,254,501 | ||||
Post Holdings, Inc. (B) | 5.625 | 01-15-28 | 2,645,000 | 2,664,838 | ||||
Household products 0.1% | ||||||||
Kronos Acquisition Holdings, Inc. (B) | 9.000 | 08-15-23 | 9,085,000 | 8,539,900 | ||||
Personal products 0.1% | ||||||||
Revlon Consumer Products Corp. | 5.750 | 02-15-21 | 6,992,000 | 5,576,120 | ||||
Revlon Consumer Products Corp. | 6.250 | 08-01-24 | 8,555,000 | 5,175,775 | ||||
Tobacco 0.1% | ||||||||
Vector Group, Ltd. (B) | 6.125 | 02-01-25 | 4,640,000 | 4,837,200 | ||||
Energy 4.9% | 555,074,138 | |||||||
Energy equipment and services 0.1% | ||||||||
Antero Midstream Partners LP | 5.375 | 09-15-24 | 10,787,000 | 11,137,578 | ||||
Oil, gas and consumable fuels 4.8% | ||||||||
Andeavor Logistics LP | 4.250 | 12-01-27 | 6,728,000 | 6,716,136 | ||||
Andeavor Logistics LP | 5.250 | 01-15-25 | 4,197,000 | 4,427,835 | ||||
Andeavor Logistics LP | 6.125 | 10-15-21 | 12,235,000 | 12,609,758 | ||||
Andeavor Logistics LP | 6.375 | 05-01-24 | 10,614,000 | 11,558,646 | ||||
Boardwalk Pipelines LP | 4.450 | 07-15-27 | 7,492,000 | 7,625,640 | ||||
Cenovus Energy, Inc. | 4.450 | 09-15-42 | 15,029,000 | 13,626,691 | ||||
Cheniere Corpus Christi Holdings LLC (B) | 5.125 | 06-30-27 | 4,925,000 | 5,091,219 | ||||
Cheniere Corpus Christi Holdings LLC | 5.875 | 03-31-25 | 6,605,000 | 7,158,169 | ||||
Cimarex Energy Company | 4.375 | 06-01-24 | 7,374,000 | 7,810,143 | ||||
Colorado Interstate Gas | ||||||||
Company LLC (B) | 4.150 | 08-15-26 | 7,955,000 | 7,949,128 | ||||
Columbia Pipeline Group, Inc. | 4.500 | 06-01-25 | 17,995,000 | 19,126,733 | ||||
Continental Resources, Inc. | 5.000 | 09-15-22 | 20,320,000 | 20,701,000 | ||||
DCP Midstream Operating LP | 2.700 | 04-01-19 | 10,889,000 | 10,820,944 | ||||
DCP Midstream Operating LP (5.850% | ||||||||
to 5-21-23, then 3 month LIBOR + | ||||||||
3.850%) (B) | 5.850 | 05-21-43 | 10,855,000 | 10,095,150 | ||||
DCP Midstream Operating LP (B) | 9.750 | 03-15-19 | 6,950,000 | 7,540,750 | ||||
Enbridge Energy Partners LP | 4.375 | 10-15-20 | 14,902,000 | 15,545,246 | ||||
Enbridge Energy Partners LP (3 month | ||||||||
LIBOR + 3.798%) (A) | 5.133 | 10-01-77 | 9,783,000 | 9,685,170 | ||||
Energy Transfer Equity LP | 5.875 | 01-15-24 | 7,500,000 | 8,025,000 | ||||
Energy Transfer LP | 4.200 | 04-15-27 | 4,462,000 | 4,455,600 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK BOND FUND 18 |
Rate (%) | Maturity date | Par value^ | Value | |||||
Energy (continued) | ||||||||
Oil, gas and consumable fuels (continued) | ||||||||
Energy Transfer LP | 5.000 | 10-01-22 | 1,834,000 | $1,963,153 | ||||
Energy Transfer LP | 5.150 | 03-15-45 | 12,120,000 | 11,586,454 | ||||
Energy Transfer LP | 5.875 | 03-01-22 | 1,250,000 | 1,368,201 | ||||
Energy Transfer LP | 9.700 | 03-15-19 | 4,468,000 | 4,855,995 | ||||
EnLink Midstream Partners LP | 4.850 | 07-15-26 | 12,953,000 | 13,523,549 | ||||
Enterprise Products Operating LLC (3 | ||||||||
month LIBOR + 3.708%) (A) | 5.084 | 08-01-66 | 12,865,000 | 12,865,000 | ||||
Enterprise Products Operating LLC | ||||||||
(5.250% to 8-16-27, then 3 month | ||||||||
LIBOR + 3.033%) | 5.250 | 08-16-77 | 19,325,000 | 19,335,242 | ||||
Gulfport Energy Corp. | 6.000 | 10-15-24 | 2,040,000 | 2,047,650 | ||||
KCA Deutag UK Finance PLC (B) | 9.875 | 04-01-22 | 1,455,000 | 1,531,388 | ||||
Kinder Morgan Energy Partners LP | 7.750 | 03-15-32 | 7,890,000 | 9,884,020 | ||||
Lukoil International Finance BV (B) | 3.416 | 04-24-18 | 7,360,000 | 7,384,406 | ||||
Murphy Oil Corp. | 5.750 | 08-15-25 | 5,895,000 | 6,086,588 | ||||
Newfield Exploration Company | 5.625 | 07-01-24 | 5,072,000 | 5,477,760 | ||||
Newfield Exploration Company | 5.750 | 01-30-22 | 3,895,000 | 4,162,781 | ||||
ONEOK Partners LP | 5.000 | 09-15-23 | 5,423,000 | 5,818,090 | ||||
Petrobras Global Finance BV | 5.625 | 05-20-43 | 18,598,000 | 16,668,458 | ||||
Petrobras Global Finance BV | 7.375 | 01-17-27 | 19,303,000 | 21,271,906 | ||||
Petroleos Mexicanos | 4.875 | 01-24-22 | 12,393,000 | 12,956,758 | ||||
Petroleos Mexicanos (B) | 5.375 | 03-13-22 | 3,420,000 | 3,655,980 | ||||
Plains All American Pipeline LP (6.125% | ||||||||
to 11-15-22, then 3 month LIBOR + | ||||||||
4.110%) (E) | 6.125 | 11-15-22 | 8,975,000 | 8,874,031 | ||||
Sabine Pass Liquefaction LLC | 4.200 | 03-15-28 | 10,090,000 | 10,162,410 | ||||
Sabine Pass Liquefaction LLC | 5.000 | 03-15-27 | 9,596,000 | 10,220,642 | ||||
Sabine Pass Liquefaction LLC | 5.750 | 05-15-24 | 17,050,000 | 18,913,475 | ||||
Sunoco Logistics Partners Operations LP | 3.900 | 07-15-26 | 16,794,000 | 16,468,682 | ||||
Sunoco Logistics Partners Operations LP | 4.400 | 04-01-21 | 11,329,000 | 11,849,047 | ||||
Tallgrass Energy Partners LP (B) | 5.500 | 09-15-24 | 5,985,000 | 6,209,438 | ||||
Tapstone Energy LLC (B) | 9.750 | 06-01-22 | 3,710,000 | 3,283,350 | ||||
Teekay Offshore Partners LP | 6.000 | 07-30-19 | 11,613,000 | 11,554,935 | ||||
The Williams Companies, Inc. | 4.550 | 06-24-24 | 18,600,000 | 19,274,250 | ||||
The Williams Companies, Inc. | 5.750 | 06-24-44 | 11,435,000 | 12,049,631 | ||||
Williams Partners LP | 3.750 | 06-15-27 | 12,535,000 | 12,436,941 | ||||
Williams Partners LP | 4.875 | 03-15-24 | 20,753,000 | 21,608,231 | ||||
WPX Energy, Inc. | 5.250 | 09-15-24 | 3,760,000 | 3,694,200 | ||||
WPX Energy, Inc. | 6.000 | 01-15-22 | 7,625,000 | 7,853,750 | ||||
YPF SA (B) | 8.500 | 07-28-25 | 14,090,000 | 16,471,210 | ||||
Financials 13.8% | 1,570,657,798 | |||||||
Banks 7.7% | ||||||||
Australia & New Zealand Banking | ||||||||
Group, Ltd. | 2.125 | 08-19-20 | 17,735,000 | 17,613,249 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK BOND FUND 19 |
Rate (%) | Maturity date | Par value^ | Value | |||||
Financials (continued) | ||||||||
Banks (continued) | ||||||||
Australia & New Zealand Banking | ||||||||
Group, Ltd. (6.750% to 6-15-26, then | ||||||||
5 Year U.S. ISDAFIX + 5.168%) (B)(E) | 6.750 | 06-15-26 | 8,790,000 | $10,009,613 | ||||
Bank of America Corp. | 3.950 | 04-21-25 | 15,946,000 | 16,393,158 | ||||
Bank of America Corp. | 4.200 | 08-26-24 | 6,327,000 | 6,644,206 | ||||
Bank of America Corp. | 4.250 | 10-22-26 | 12,091,000 | 12,685,263 | ||||
Bank of America Corp. | 4.450 | 03-03-26 | 20,583,000 | 21,848,149 | ||||
Bank of America Corp. (6.300% to | ||||||||
3-10-26, then 3 month LIBOR + | ||||||||
4.553%) (E) | 6.300 | 03-10-26 | 21,910,000 | 24,986,164 | ||||
BankUnited, Inc. | 4.875 | 11-17-25 | 1,595,000 | 1,698,024 | ||||
Banque Federative du Credit Mutuel | ||||||||
SA (B) | 2.200 | 07-20-20 | 16,950,000 | 16,858,231 | ||||
Barclays Bank PLC (B) | 10.179 | 06-12-21 | 6,780,000 | 8,293,215 | ||||
Barclays PLC | 4.375 | 01-12-26 | 10,590,000 | 11,003,518 | ||||
BPCE SA (B) | 4.500 | 03-15-25 | 14,390,000 | 14,990,511 | ||||
BPCE SA (B) | 5.700 | 10-22-23 | 14,625,000 | 16,220,705 | ||||
Citigroup, Inc. | 2.350 | 08-02-21 | 17,590,000 | 17,400,478 | ||||
Citigroup, Inc. | 4.600 | 03-09-26 | 17,385,000 | 18,453,876 | ||||
Citigroup, Inc. (5.875% to 3-27-20, then | ||||||||
3 month LIBOR + 4.059%) (E) | 5.875 | 03-27-20 | 23,515,000 | 24,631,963 | ||||
Citigroup, Inc. (6.250% to 8-15-26, then | ||||||||
3 month LIBOR + 4.517%) (E) | 6.250 | 08-15-26 | 18,095,000 | 20,246,134 | ||||
Citizens Bank NA | 2.200 | 05-26-20 | 16,310,000 | 16,211,949 | ||||
Commerzbank AG (B) | 8.125 | 09-19-23 | 11,495,000 | 13,849,878 | ||||
Cooperatieve Rabobank UA (11.000% | ||||||||
to 6-30-19, then 3 month LIBOR + | ||||||||
10.868%) (B)(E) | 11.000 | 06-30-19 | 9,524,000 | 10,714,500 | ||||
Credit Agricole SA (7.875% to 1-23-24, | ||||||||
then 5 Year U.S. Swap Rate + | ||||||||
4.898%) (B)(E) | 7.875 | 01-23-24 | 10,770,000 | 12,213,503 | ||||
Credit Agricole SA (8.125% to 9-19-18, | ||||||||
then 5 Year U.S. Swap Rate + | ||||||||
6.283%) (B) | 8.125 | 09-19-33 | 10,680,000 | 11,133,900 | ||||
Fifth Third Bancorp (5.100% to 6-30-23, | ||||||||
then 3 month LIBOR + 3.033%) (E) | 5.100 | 06-30-23 | 11,664,000 | 11,868,120 | ||||
Freedom Mortgage Corp. (B) | 8.125 | 11-15-24 | 8,345,000 | 8,678,800 | ||||
HBOS PLC (B) | 6.750 | 05-21-18 | 12,520,000 | 12,788,402 | ||||
HSBC Holdings PLC (6.375% to | ||||||||
9-17-24, then 5 Year U.S. ISDAFIX + | ||||||||
3.705%) (E) | 6.375 | 09-17-24 | 5,770,000 | 6,191,210 | ||||
HSBC Holdings PLC (6.875% to 6-1-21, | ||||||||
then 5 Year U.S. ISDAFIX + | ||||||||
5.514%) (E) | 6.875 | 06-01-21 | 14,155,000 | 15,322,788 | ||||
ING Bank NV (B) | 5.800 | 09-25-23 | 12,399,000 | 14,002,741 | ||||
ING Groep NV (6.500% to 4-16-25, | ||||||||
then 5 Year U.S. Swap Rate + | ||||||||
4.446%) (E) | 6.500 | 04-16-25 | 6,080,000 | 6,618,080 | ||||
JPMorgan Chase & Co. | 3.200 | 06-15-26 | 14,987,000 | 14,891,390 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK BOND FUND 20 |
Rate (%) | Maturity date | Par value^ | Value | |||||
Financials (continued) | ||||||||
Banks (continued) | ||||||||
JPMorgan Chase & Co. | 4.625 | 05-10-21 | 19,999,000 | $21,361,583 | ||||
JPMorgan Chase & Co. (5.300% to | ||||||||
5-1-20, then 3 month LIBOR + | ||||||||
3.800%) (E) | 5.300 | 05-01-20 | 15,183,000 | 15,828,278 | ||||
JPMorgan Chase & Co. (6.750% to | ||||||||
2-1-24, then 3 month LIBOR + | ||||||||
3.780%) (E) | 6.750 | 02-01-24 | 17,198,000 | 19,666,945 | ||||
Lloyds Banking Group PLC | 4.650 | 03-24-26 | 28,420,000 | 29,961,038 | ||||
Lloyds Banking Group PLC (7.500% to | ||||||||
6-27-24, then 5 Year U.S. Swap Rate | ||||||||
+ 4.760%) (E) | 7.500 | 06-27-24 | 12,925,000 | 14,637,563 | ||||
M&T Bank Corp. (5.125% to 11-1-26, | ||||||||
then 3 month LIBOR + 3.520%) (E) | 5.125 | 11-01-26 | 9,257,000 | 9,835,563 | ||||
Manufacturers & Traders Trust Company | ||||||||
(3 month LIBOR + 0.640%) (A) | 1.956 | 12-01-21 | 7,480,000 | 7,423,129 | ||||
PNC Bank NA | 2.450 | 07-28-22 | 21,130,000 | 20,979,862 | ||||
Popular, Inc. | 7.000 | 07-01-19 | 9,055,000 | 9,281,375 | ||||
Regions Financial Corp. | 2.750 | 08-14-22 | 20,875,000 | 20,769,536 | ||||
Santander Holdings USA, Inc. | 2.700 | 05-24-19 | 7,938,000 | 7,967,840 | ||||
Santander Holdings USA, Inc. (B) | 3.700 | 03-28-22 | 15,110,000 | 15,354,074 | ||||
Santander UK Group Holdings PLC (B) | 4.750 | 09-15-25 | 11,895,000 | 12,443,490 | ||||
Societe Generale SA (7.375% to | ||||||||
9-13-21, then 5 Year U.S. Swap Rate | ||||||||
+ 6.238%) (B)(E) | 7.375 | 09-13-21 | 13,725,000 | 14,874,469 | ||||
Societe Generale SA (8.000% to | ||||||||
9-29-25, then 5 Year U.S. ISDAFIX + | ||||||||
5.873%) (B)(E) | 8.000 | 09-29-25 | 12,350,000 | 14,403,188 | ||||
Societe Generale SA (8.250% to | ||||||||
11-29-18, then 5 Year U.S. Swap Rate | ||||||||
+ 6.394%) (E) | 8.250 | 11-29-18 | 9,440,000 | 9,913,397 | ||||
Standard Chartered PLC (B) | 2.100 | 08-19-19 | 17,260,000 | 17,160,463 | ||||
Sumitomo Mitsui Trust Bank, Ltd. (B) | 2.050 | 03-06-19 | 20,240,000 | 20,199,065 | ||||
SunTrust Bank | 2.450 | 08-01-22 | 16,820,000 | 16,651,197 | ||||
The PNC Financial Services Group, Inc. | ||||||||
(4.850% to 6-1-23, then 3 month | ||||||||
LIBOR + 3.040%) (E) | 4.850 | 06-01-23 | 10,034,000 | 10,335,020 | ||||
The PNC Financial Services Group, Inc. | ||||||||
(6.750% to 8-1-21, then 3 month | ||||||||
LIBOR + 3.678%) (E) | 6.750 | 08-01-21 | 9,583,000 | 10,680,254 | ||||
The Royal Bank of Scotland Group PLC | 3.875 | 09-12-23 | 19,400,000 | 19,718,072 | ||||
The Royal Bank of Scotland Group PLC | ||||||||
(8.000% to 8-10-25, then 5 Year | ||||||||
U.S. Swap Rate + 5.720%) (E) | 8.000 | 08-10-25 | 10,630,000 | 12,092,475 | ||||
The Royal Bank of Scotland Group PLC | ||||||||
(8.625% to 8-15-21, then 5 Year | ||||||||
U.S. Swap Rate + 7.598%) (E) | 8.625 | 08-15-21 | 8,450,000 | 9,527,375 | ||||
US Bank NA | 2.000 | 01-24-20 | 15,570,000 | 15,515,289 | ||||
Wells Fargo & Company, Series K | ||||||||
(7.980% to 3-15-18, then 3 month | ||||||||
LIBOR + 3.770%) (E) | 7.980 | 03-15-18 | 11,687,000 | 11,869,317 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK BOND FUND 21 |
Rate (%) | Maturity date | Par value^ | Value | |||||
Financials (continued) | ||||||||
Banks (continued) | ||||||||
Wells Fargo & Company, Series MTN | 4.650 | 11-04-44 | 9,825,000 | $10,528,214 | ||||
Wells Fargo & Company, Series U | ||||||||
(5.875% to 6-15-25, then 3 month | ||||||||
LIBOR + 3.990%) (E) | 5.875 | 06-15-25 | 31,336,000 | 34,782,960 | ||||
Westpac Banking Corp. | 2.150 | 03-06-20 | 24,628,000 | 24,586,616 | ||||
Capital markets 2.0% | ||||||||
Ares Capital Corp. | 3.875 | 01-15-20 | 7,325,000 | 7,462,903 | ||||
Credit Suisse Group AG (7.500% to | ||||||||
12-11-23, then 5 Year U.S. Swap Rate | ||||||||
+ 4.598%) (B)(E) | 7.500 | 12-11-23 | 8,155,000 | 9,347,016 | ||||
FS Investment Corp. | 4.000 | 07-15-19 | 6,870,000 | 6,967,266 | ||||
FS Investment Corp. | 4.250 | 01-15-20 | 6,905,000 | 7,032,576 | ||||
Jefferies Group LLC | 4.850 | 01-15-27 | 15,250,000 | 16,053,171 | ||||
Jefferies Group LLC | 8.500 | 07-15-19 | 4,720,000 | 5,162,455 | ||||
Macquarie Bank, Ltd. (B) | 4.875 | 06-10-25 | 14,265,000 | 15,060,164 | ||||
Morgan Stanley | 3.875 | 01-27-26 | 11,403,000 | 11,814,941 | ||||
Morgan Stanley | 5.500 | 01-26-20 | 13,922,000 | 14,804,780 | ||||
Morgan Stanley | 7.300 | 05-13-19 | 19,611,000 | 20,997,516 | ||||
Stifel Financial Corp. | 4.250 | 07-18-24 | 13,425,000 | 13,774,464 | ||||
The Goldman Sachs Group, Inc. | 2.000 | 04-25-19 | 9,594,000 | 9,564,946 | ||||
The Goldman Sachs Group, Inc. | 2.300 | 12-13-19 | 26,988,000 | 26,948,686 | ||||
The Goldman Sachs Group, Inc. | 3.850 | 01-26-27 | 24,480,000 | 24,983,471 | ||||
UBS AG (B) | 2.450 | 12-01-20 | 22,420,000 | 22,395,966 | ||||
UBS Group Funding Switzerland AG | ||||||||
(2.859% to 8-15-22, then 3 month | ||||||||
LIBOR + 0.954%) (B) | 2.859 | 08-15-23 | 20,715,000 | 20,506,206 | ||||
Consumer finance 1.5% | ||||||||
Ally Financial, Inc. | 3.250 | 11-05-18 | 8,410,000 | 8,453,732 | ||||
Ally Financial, Inc. | 5.125 | 09-30-24 | 20,968,000 | 22,855,120 | ||||
American Express Company | 2.500 | 08-01-22 | 18,970,000 | 18,718,669 | ||||
Capital One Financial Corp. | 2.400 | 10-30-20 | 8,895,000 | 8,851,627 | ||||
Capital One Financial Corp. | 2.450 | 04-24-19 | 10,065,000 | 10,091,704 | ||||
Capital One Financial Corp. | 3.750 | 07-28-26 | 22,858,000 | 22,647,511 | ||||
Capital One Financial Corp. | 4.200 | 10-29-25 | 15,419,000 | 15,778,225 | ||||
Credit Acceptance Corp. | 6.125 | 02-15-21 | 9,659,000 | 9,791,811 | ||||
Credito Real SAB de CV (B) | 7.250 | 07-20-23 | 5,700,000 | 6,013,500 | ||||
Credito Real SAB de CV (9.125% to | ||||||||
11-29-22, then 10 Year CMT + | ||||||||
7.026%) (B)(E) | 9.125 | 11-29-22 | 9,270,000 | 9,548,100 | ||||
Discover Financial Services | 3.950 | 11-06-24 | 18,348,000 | 18,795,632 | ||||
Discover Financial Services | 4.100 | 02-09-27 | 6,700,000 | 6,832,487 | ||||
Discover Financial Services | 5.200 | 04-27-22 | 2,350,000 | 2,541,001 | ||||
Enova International, Inc. | 9.750 | 06-01-21 | 7,520,000 | 7,971,200 | ||||
Diversified financial services 0.5% | ||||||||
ASP AMC Merger Sub, Inc. (B) | 8.000 | 05-15-25 | 9,996,000 | 9,771,090 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK BOND FUND 22 |
Rate (%) | Maturity date | Par value^ | Value | |||||
Financials (continued) | ||||||||
Diversified financial services (continued) | ||||||||
Doric Nimrod Air Alpha 2013-1 Class B | ||||||||
Pass Through Trust (B) | 6.125 | 11-30-21 | 998,824 | $1,030,087 | ||||
Exela Intermediate LLC (B) | 10.000 | 07-15-23 | 4,955,000 | 4,651,506 | ||||
Leucadia National Corp. | 5.500 | 10-18-23 | 13,246,000 | 14,146,815 | ||||
NewStar Financial, Inc. | 7.250 | 05-01-20 | 9,060,000 | 9,399,750 | ||||
Trident Merger Sub, Inc. (B) | 6.625 | 11-01-25 | 3,432,000 | 3,419,130 | ||||
Voya Financial, Inc. (5.650% to 5-15-23, | ||||||||
then 3 month LIBOR + 3.580%) | 5.650 | 05-15-53 | 13,317,000 | 14,062,752 | ||||
Insurance 1.6% | ||||||||
Aquarius & Investments PLC (6.375% to | ||||||||
9-1-19, then 5 Year U.S. Swap Rate + | ||||||||
5.210%) | 6.375 | 09-01-24 | 12,250,000 | 12,913,460 | ||||
AXA SA (6.379% to 12-14-36, then 3 | ||||||||
month LIBOR + 2.256%) (B)(E) | 6.379 | 12-14-36 | 2,930,000 | 3,398,800 | ||||
AXA SA | 8.600 | 12-15-30 | 6,874,000 | 9,898,560 | ||||
Brighthouse Financial, Inc. (B) | 3.700 | 06-22-27 | 21,345,000 | 20,746,775 | ||||
CNO Financial Group, Inc. | 5.250 | 05-30-25 | 13,153,000 | 13,942,180 | ||||
Liberty Mutual Group, Inc. (7.800% to | ||||||||
3-15-37, then 3 month LIBOR | ||||||||
+3.576%) (B) | 7.800 | 03-07-87 | 16,926,000 | 21,496,020 | ||||
MetLife, Inc. | 6.400 | 12-15-66 | 9,858,000 | 11,361,345 | ||||
MetLife, Inc. (B) | 9.250 | 04-08-38 | 5,470,000 | 8,095,600 | ||||
Nippon Life Insurance Company | ||||||||
(5.100% to 10-16-24, then 5 Year | ||||||||
U.S. ISDAFIX + 3.650%) (B) | 5.100 | 10-16-44 | 11,795,000 | 12,528,649 | ||||
Prudential Financial, Inc. (5.875% to | ||||||||
9-15-22, then 3 month LIBOR + | ||||||||
4.175%) | 5.875 | 09-15-42 | 25,578,000 | 28,040,394 | ||||
Teachers Insurance & Annuity | ||||||||
Association of America (B) | 4.270 | 05-15-47 | 15,725,000 | 16,262,976 | ||||
The Hartford Financial Services Group, | ||||||||
Inc. (8.125% to 6-15-18, then 3 | ||||||||
month LIBOR + 4.603%) | 8.125 | 06-15-68 | 20,224,000 | 20,780,160 | ||||
Thrifts and mortgage finance 0.5% | ||||||||
Flagstar Bancorp, Inc. | 6.125 | 07-15-21 | 6,440,000 | 6,865,136 | ||||
Ladder Capital Finance Holdings LLLP (B) | 5.250 | 03-15-22 | 2,850,000 | 2,942,625 | ||||
Ladder Capital Finance Holdings LLLP (B) | 5.250 | 10-01-25 | 5,810,000 | 5,795,475 | ||||
MGIC Investment Corp. | 5.750 | 08-15-23 | 2,676,000 | 2,923,530 | ||||
Nationstar Mortgage LLC | 6.500 | 07-01-21 | 7,564,000 | 7,658,550 | ||||
Nationstar Mortgage LLC | 7.875 | 10-01-20 | 5,833,000 | 5,955,493 | ||||
Quicken Loans, Inc. (B) | 5.750 | 05-01-25 | 13,820,000 | 14,528,275 | ||||
Radian Group, Inc. | 5.250 | 06-15-20 | 4,391,000 | 4,632,505 | ||||
Radian Group, Inc. | 7.000 | 03-15-21 | 5,591,000 | 6,282,886 | ||||
Stearns Holdings LLC (B) | 9.375 | 08-15-20 | 2,450,000 | 2,551,063 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK BOND FUND 23 |
Rate (%) | Maturity date | Par value^ | Value | |||||
Health care 2.5% | $287,503,107 | |||||||
Biotechnology 0.5% | ||||||||
AbbVie, Inc. | 3.600 | 05-14-25 | 15,283,000 | 15,613,173 | ||||
Shire Acquisitions Investments Ireland | ||||||||
DAC | 1.900 | 09-23-19 | 21,570,000 | 21,362,497 | ||||
Shire Acquisitions Investments Ireland | ||||||||
DAC | 3.200 | 09-23-26 | 23,720,000 | 22,788,404 | ||||
Health care equipment and supplies 0.2% | ||||||||
Becton, Dickinson and Company | 2.133 | 06-06-19 | 15,810,000 | 15,759,893 | ||||
Zimmer Biomet Holdings, Inc. | 3.550 | 04-01-25 | 8,858,000 | 8,858,426 | ||||
Health care providers and services 1.3% | ||||||||
Cardinal Health, Inc. | 1.948 | 06-14-19 | 13,785,000 | 13,711,158 | ||||
Community Health Systems, Inc. | 5.125 | 08-01-21 | 11,009,000 | 10,293,415 | ||||
Community Health Systems, Inc. | 8.000 | 11-15-19 | 8,576,000 | 7,686,240 | ||||
DaVita, Inc. | 5.000 | 05-01-25 | 11,776,000 | 11,790,720 | ||||
Express Scripts Holding Company | 2.600 | 11-30-20 | 21,450,000 | 21,450,674 | ||||
HCA, Inc. | 5.250 | 04-15-25 | 11,324,000 | 12,060,060 | ||||
HCA, Inc. | 5.250 | 06-15-26 | 10,413,000 | 11,037,780 | ||||
HCA, Inc. | 7.500 | 02-15-22 | 8,940,000 | 10,092,366 | ||||
MEDNAX, Inc. (B) | 5.250 | 12-01-23 | 11,971,000 | 12,270,275 | ||||
Select Medical Corp. | 6.375 | 06-01-21 | 11,653,000 | 11,958,891 | ||||
Team Health Holdings, Inc. (B) | 6.375 | 02-01-25 | 2,697,000 | 2,440,785 | ||||
Universal Health Services, Inc. (B) | 4.750 | 08-01-22 | 9,675,000 | 9,916,875 | ||||
Universal Health Services, Inc. (B) | 5.000 | 06-01-26 | 11,076,000 | 11,546,730 | ||||
Life sciences tools and services 0.1% | ||||||||
Quintiles IMS, Inc. (B) | 4.875 | 05-15-23 | 6,245,000 | 6,463,575 | ||||
Pharmaceuticals 0.4% | ||||||||
Allergan Funding SCS | 3.800 | 03-15-25 | 13,845,000 | 13,933,423 | ||||
Mylan NV | 2.500 | 06-07-19 | 8,513,000 | 8,506,505 | ||||
Mylan NV | 3.950 | 06-15-26 | 16,336,000 | 16,286,379 | ||||
Valeant Pharmaceuticals International, | ||||||||
Inc. (B) | 6.125 | 04-15-25 | 13,615,000 | 11,674,863 | ||||
Industrials 4.3% | 485,144,493 | |||||||
Aerospace and defense 0.4% | ||||||||
Huntington Ingalls Industries, Inc. (B) | 5.000 | 12-15-21 | 10,440,000 | 10,711,440 | ||||
Huntington Ingalls Industries, Inc. (B) | 5.000 | 11-15-25 | 7,575,000 | 8,152,594 | ||||
Kratos Defense & Security Solutions, | ||||||||
Inc. (B) | 6.500 | 11-30-25 | 8,875,000 | 9,119,063 | ||||
Lockheed Martin Corp. | 4.700 | 05-15-46 | 11,743,000 | 13,345,930 | ||||
Textron, Inc. | 7.250 | 10-01-19 | 2,950,000 | 3,201,310 | ||||
Air freight and logistics 0.1% | ||||||||
XPO Logistics, Inc. (B) | 6.500 | 06-15-22 | 11,464,000 | 11,979,880 | ||||
Airlines 1.6% | ||||||||
Air Canada 2013-1 Class C Pass Through | ||||||||
Trust (B) | 6.625 | 05-15-18 | 6,110,000 | 6,209,288 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK BOND FUND 24 |
Rate (%) | Maturity date | Par value^ | Value | |||||
Industrials (continued) | ||||||||
Airlines (continued) | ||||||||
America West Airlines 2000-1 Pass | ||||||||
Through Trust | 8.057 | 01-02-22 | 482,857 | $543,214 | ||||
American Airlines 2001-1 Class A-1 Pass | ||||||||
Through Trust | 6.977 | 11-23-22 | 4,530,142 | 4,779,300 | ||||
American Airlines 2011-1 Class B Pass | ||||||||
Through Trust (B) | 7.000 | 07-31-19 | 6,922,655 | 6,995,342 | ||||
American Airlines 2013-2 Class A Pass | ||||||||
Through Trust | 4.950 | 07-15-24 | 12,401,157 | 13,176,229 | ||||
American Airlines 2015-1 Class B Pass | ||||||||
Through Trust | 3.700 | 11-01-24 | 6,572,343 | 6,588,774 | ||||
American Airlines 2016-1 Class A Pass | ||||||||
Through Trust | 4.100 | 07-15-29 | 4,099,996 | 4,292,183 | ||||
American Airlines 2017-1 Class A Pass | ||||||||
Through Trust | 4.000 | 08-15-30 | 7,420,000 | 7,759,836 | ||||
American Airlines 2017-1 Class AA Pass | ||||||||
Through Trust | 3.650 | 02-15-29 | 11,515,000 | 11,932,188 | ||||
American Airlines 2017-2 Class A Pass | ||||||||
Through Trust | 3.600 | 04-15-31 | 6,355,000 | 6,475,745 | ||||
Azul Investments LLP (B) | 5.875 | 10-26-24 | 11,560,000 | 11,502,200 | ||||
British Airways 2013-1 Class A Pass | ||||||||
Through Trust (B) | 4.625 | 06-20-24 | 11,083,518 | 11,803,947 | ||||
British Airways 2013-1 Class B Pass | ||||||||
Through Trust (B) | 5.625 | 12-20-21 | 2,110,957 | 2,189,907 | ||||
Continental Airlines 1997-4 Class A Pass | ||||||||
Through Trust | 6.900 | 07-02-19 | 150,897 | 151,079 | ||||
Continental Airlines 1999-1 Class A Pass | ||||||||
Through Trust | 6.545 | 08-02-20 | 711,875 | 736,791 | ||||
Continental Airlines 2000-2 Class B Pass | ||||||||
Through Trust | 8.307 | 10-02-19 | 80,771 | 82,387 | ||||
Continental Airlines 2007-1 Class A Pass | ||||||||
Through Trust | 5.983 | 10-19-23 | 6,265,608 | 6,875,252 | ||||
Continental Airlines 2012-1 Class B Pass | ||||||||
Through Trust | 6.250 | 10-11-21 | 1,177,571 | 1,240,218 | ||||
Delta Air Lines 2002-1 Class G-1 Pass | ||||||||
Through Trust | 6.718 | 07-02-24 | 5,135,576 | 5,713,329 | ||||
Delta Air Lines 2010-1 Class A Pass | ||||||||
Through Trust | 6.200 | 01-02-20 | 2,728,058 | 2,793,531 | ||||
Delta Air Lines 2011-1 Class A Pass | ||||||||
Through Trust | 5.300 | 10-15-20 | 838,994 | 871,313 | ||||
Delta Air Lines, Inc. | 3.625 | 03-15-22 | 18,290,000 | 18,660,679 | ||||
Northwest Airlines 2007-1 Class A Pass | ||||||||
Through Trust | 7.027 | 05-01-21 | 3,190,453 | 3,445,689 | ||||
United Airlines 2014-2 Class A Pass | ||||||||
Through Trust | 3.750 | 03-03-28 | 15,286,434 | 15,706,811 | ||||
United Airlines 2014-2 Class B Pass | ||||||||
Through Trust | 4.625 | 03-03-24 | 6,039,018 | 6,252,196 | ||||
United Airlines 2016-1 Class A Pass | ||||||||
Through Trust | 3.450 | 01-07-30 | 10,724,000 | 10,911,670 | ||||
United Airlines 2016-1 Class B Pass | ||||||||
Through Trust | 3.650 | 07-07-27 | 6,095,000 | 6,057,211 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK BOND FUND 25 |
Rate (%) | Maturity date | Par value^ | Value | |||||
Industrials (continued) | ||||||||
Airlines (continued) | ||||||||
US Airways 2010-1 Class A Pass Through | ||||||||
Trust | 6.250 | 10-22-24 | 3,992,919 | $4,449,309 | ||||
US Airways 2012-1 Class A Pass Through | ||||||||
Trust | 5.900 | 04-01-26 | 4,499,248 | 5,050,406 | ||||
Building products 0.3% | ||||||||
Builders FirstSource, Inc. (B) | 10.750 | 08-15-23 | 4,355,000 | 4,910,263 | ||||
Masco Corp. | 4.375 | 04-01-26 | 10,022,000 | 10,567,197 | ||||
Masco Corp. | 4.450 | 04-01-25 | 6,570,000 | 6,965,514 | ||||
Owens Corning | 4.200 | 12-15-22 | 8,508,000 | 8,927,580 | ||||
Commercial services and supplies 0.2% | ||||||||
LSC Communications, Inc. (B) | 8.750 | 10-15-23 | 11,118,000 | 11,423,745 | ||||
Prime Security Services Borrower LLC (B) | 9.250 | 05-15-23 | 7,030,000 | 7,759,363 | ||||
Tervita Escrow Corp. (B) | 7.625 | 12-01-21 | 1,415,000 | 1,432,688 | ||||
Construction and engineering 0.2% | ||||||||
AECOM | 5.125 | 03-15-27 | 16,240,000 | 16,553,432 | ||||
Tutor Perini Corp. (B) | 6.875 | 05-01-25 | 2,682,000 | 2,850,698 | ||||
Electrical equipment 0.0% | ||||||||
EnerSys (B) | 5.000 | 04-30-23 | 4,723,000 | 4,965,054 | ||||
Industrial conglomerates 0.0% | ||||||||
General Electric Company (3 month | ||||||||
LIBOR + 0.480%) (A) | 1.896 | 08-15-36 | 4,270,000 | 3,772,197 | ||||
Machinery 0.0% | ||||||||
Neovia Logistics Services LLC (B) | 8.875 | 08-01-20 | 2,830,000 | 2,348,900 | ||||
Professional services 0.4% | ||||||||
Equifax, Inc. | 3.250 | 06-01-26 | 3,750,000 | 3,536,366 | ||||
Equifax, Inc. | 7.000 | 07-01-37 | 3,045,000 | 3,741,202 | ||||
IHS Markit, Ltd. (B) | 4.000 | 03-01-26 | 5,450,000 | 5,511,313 | ||||
IHS Markit, Ltd. (B) | 4.750 | 02-15-25 | 3,267,000 | 3,460,733 | ||||
IHS Markit, Ltd. (B) | 5.000 | 11-01-22 | 4,986,000 | 5,310,090 | ||||
Verisk Analytics, Inc. | 4.000 | 06-15-25 | 20,295,000 | 21,052,500 | ||||
Trading companies and distributors 1.1% | ||||||||
AerCap Global Aviation Trust (6.500% to | ||||||||
6-15-25, then 3 month LIBOR + | ||||||||
4.300%) (B) | 6.500 | 06-15-45 | 9,410,000 | 10,256,900 | ||||
AerCap Ireland Capital DAC | 4.625 | 10-30-20 | 14,020,000 | 14,745,539 | ||||
AerCap Ireland Capital DAC | 5.000 | 10-01-21 | 13,885,000 | 14,848,212 | ||||
Ahern Rentals, Inc. (B) | 7.375 | 05-15-23 | 15,413,000 | 14,584,551 | ||||
Air Lease Corp. | 3.375 | 01-15-19 | 4,099,000 | 4,147,057 | ||||
Aircastle, Ltd. | 5.500 | 02-15-22 | 8,752,000 | 9,419,340 | ||||
Aircastle, Ltd. | 6.250 | 12-01-19 | 3,625,000 | 3,856,094 | ||||
Aircastle, Ltd. | 7.625 | 04-15-20 | 1,950,000 | 2,140,125 | ||||
H&E Equipment Services, Inc. (B) | 5.625 | 09-01-25 | 5,370,000 | 5,625,075 | ||||
International Lease Finance Corp. | 5.875 | 04-01-19 | 5,390,000 | 5,629,575 | ||||
International Lease Finance Corp. (B) | 7.125 | 09-01-18 | 4,790,000 | 4,963,286 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK BOND FUND 26 |
Rate (%) | Maturity date | Par value^ | Value | |||||
Industrials (continued) | ||||||||
Trading companies and distributors (continued) | ||||||||
United Rentals North America, Inc. | 4.875 | 01-15-28 | 12,690,000 | $12,832,763 | ||||
United Rentals North America, Inc. | 5.500 | 07-15-25 | 11,040,000 | 11,743,800 | ||||
United Rentals North America, Inc. | 5.750 | 11-15-24 | 5,220,000 | 5,507,100 | ||||
Information technology 3.5% | 398,297,162 | |||||||
Communications equipment 0.2% | ||||||||
Nokia OYJ | 4.375 | 06-12-27 | 5,445,000 | 5,401,440 | ||||
Telefonaktiebolaget LM Ericsson | 4.125 | 05-15-22 | 21,585,000 | 21,757,973 | ||||
Electronic equipment, instruments and components 0.6% | ||||||||
CDW LLC | 5.000 | 09-01-25 | 1,242,000 | 1,297,890 | ||||
Ingram Micro, Inc. | 5.450 | 12-15-24 | 14,099,000 | 14,298,083 | ||||
Jabil, Inc. | 4.700 | 09-15-22 | 19,701,000 | 20,646,648 | ||||
Keysight Technologies, Inc. | 4.600 | 04-06-27 | 9,955,000 | 10,572,937 | ||||
Tech Data Corp. | 4.950 | 02-15-27 | 21,698,000 | 22,736,816 | ||||
Zebra Technologies Corp. | 7.250 | 10-15-22 | 1,579,000 | 1,665,056 | ||||
Internet software and services 0.3% | ||||||||
eBay, Inc. | 2.150 | 06-05-20 | 9,665,000 | 9,602,958 | ||||
Match Group, Inc. (B) | 5.000 | 12-15-27 | 2,900,000 | 2,921,750 | ||||
Match Group, Inc. | 6.375 | 06-01-24 | 9,080,000 | 9,795,050 | ||||
VeriSign, Inc. | 4.750 | 07-15-27 | 5,304,000 | 5,469,750 | ||||
VeriSign, Inc. | 5.250 | 04-01-25 | 6,750,000 | 7,349,063 | ||||
IT services 0.1% | ||||||||
Sixsigma Networks Mexico SA de CV (B) | 8.250 | 11-07-21 | 5,080,000 | 5,359,400 | ||||
Semiconductors and semiconductor equipment 0.2% | ||||||||
NXP BV (B) | 4.625 | 06-01-23 | 20,560,000 | 21,719,790 | ||||
Software 1.4% | ||||||||
Activision Blizzard, Inc. | 3.400 | 09-15-26 | 15,060,000 | 15,136,154 | ||||
Activision Blizzard, Inc. (B) | 6.125 | 09-15-23 | 14,300,000 | 15,099,648 | ||||
Autodesk, Inc. | 3.500 | 06-15-27 | 16,335,000 | 16,173,137 | ||||
CA, Inc. | 3.600 | 08-15-22 | 13,715,000 | 13,861,114 | ||||
CA, Inc. | 4.700 | 03-15-27 | 10,913,000 | 11,360,545 | ||||
Citrix Systems, Inc. | 4.500 | 12-01-27 | 17,521,000 | 17,698,795 | ||||
Electronic Arts, Inc. | 4.800 | 03-01-26 | 20,397,000 | 22,384,225 | ||||
j2 Cloud Services LLC (B) | 6.000 | 07-15-25 | 4,333,000 | 4,506,320 | ||||
Microsoft Corp. | 4.450 | 11-03-45 | 19,609,000 | 22,362,269 | ||||
Open Text Corp. (B) | 5.875 | 06-01-26 | 5,685,000 | 6,168,225 | ||||
VMware, Inc. | 2.950 | 08-21-22 | 12,160,000 | 12,088,934 | ||||
Technology hardware, storage and peripherals 0.7% | ||||||||
Dell International LLC (B) | 6.020 | 06-15-26 | 28,340,000 | 31,131,610 | ||||
Dell International LLC (B) | 7.125 | 06-15-24 | 4,080,000 | 4,426,915 | ||||
Dell International LLC (B) | 8.350 | 07-15-46 | 10,318,000 | 12,946,563 | ||||
Hewlett Packard Enterprise Company (B) | 2.100 | 10-04-19 | 17,848,000 | 17,724,108 | ||||
NetApp, Inc. | 2.000 | 09-27-19 | 14,745,000 | 14,633,996 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK BOND FUND 27 |
Rate (%) | Maturity date | Par value^ | Value | |||||
Materials 1.8% | $204,233,093 | |||||||
Chemicals 0.9% | ||||||||
Braskem Finance, Ltd. (B) | 7.000 | 05-07-20 | 9,835,000 | 10,695,563 | ||||
Braskem Netherlands Finance BV (B) | 4.500 | 01-10-28 | 13,320,000 | 13,256,730 | ||||
Cydsa SAB de CV (B) | 6.250 | 10-04-27 | 9,175,000 | 9,117,656 | ||||
Mexichem SAB de CV (B) | 4.000 | 10-04-27 | 7,150,000 | 7,114,250 | ||||
NOVA Chemicals Corp. (B) | 5.000 | 05-01-25 | 15,210,000 | 15,324,075 | ||||
Platform Specialty Products Corp. (B) | 6.500 | 02-01-22 | 16,379,000 | 16,931,791 | ||||
Rain CII Carbon LLC (B) | 8.250 | 01-15-21 | 4,187,000 | 4,302,143 | ||||
The Chemours Company | 6.625 | 05-15-23 | 17,181,000 | 18,168,908 | ||||
The Sherwin-Williams Company | 2.250 | 05-15-20 | 10,570,000 | 10,522,809 | ||||
Construction materials 0.1% | ||||||||
Cemex SAB de CV (B) | 6.125 | 05-05-25 | 12,190,000 | 12,921,400 | ||||
U.S. Concrete, Inc. | 6.375 | 06-01-24 | 4,130,000 | 4,429,425 | ||||
Containers and packaging 0.1% | ||||||||
Ardagh Packaging Finance PLC (B) | 6.000 | 02-15-25 | 5,795,000 | 6,157,767 | ||||
Klabin Finance SA (B) | 4.875 | 09-19-27 | 4,785,000 | 4,740,500 | ||||
Metals and mining 0.6% | ||||||||
Anglo American Capital PLC (B) | 4.750 | 04-10-27 | 10,725,000 | 11,140,781 | ||||
Arconic, Inc. | 5.125 | 10-01-24 | 14,478,000 | 15,400,973 | ||||
Commercial Metals Company | 5.375 | 07-15-27 | 3,005,000 | 3,072,613 | ||||
First Quantum Minerals, Ltd. (B) | 7.500 | 04-01-25 | 4,200,000 | 4,457,250 | ||||
Novelis Corp. (B) | 5.875 | 09-30-26 | 2,302,000 | 2,405,590 | ||||
Vale Overseas, Ltd. | 6.250 | 08-10-26 | 9,040,000 | 10,485,406 | ||||
Vedanta Resources PLC (B) | 6.125 | 08-09-24 | 8,140,000 | 8,329,312 | ||||
Vedanta Resources PLC (B) | 6.375 | 07-30-22 | 8,415,000 | 8,814,713 | ||||
Paper and forest products 0.1% | ||||||||
Norbord, Inc. (B) | 6.250 | 04-15-23 | 5,925,000 | 6,443,438 | ||||
Real estate 1.4% | 162,789,938 | |||||||
Equity real estate investment trusts 1.4% | ||||||||
American Tower Corp. | 3.400 | 02-15-19 | 9,975,000 | 10,091,355 | ||||
American Tower Corp. | 3.550 | 07-15-27 | 20,880,000 | 20,681,436 | ||||
American Tower Corp. | 4.700 | 03-15-22 | 9,849,000 | 10,615,442 | ||||
Crown Castle Towers LLC (B) | 4.883 | 08-15-40 | 13,064,000 | 13,744,769 | ||||
Crown Castle Towers LLC (B) | 6.113 | 01-15-40 | 10,870,000 | 11,509,572 | ||||
Equinix, Inc. | 5.375 | 05-15-27 | 5,896,000 | 6,366,501 | ||||
Iron Mountain, Inc. (B) | 4.875 | 09-15-27 | 6,395,000 | 6,538,888 | ||||
Iron Mountain, Inc. | 5.750 | 08-15-24 | 14,217,000 | 14,554,654 | ||||
Iron Mountain, Inc. | 6.000 | 08-15-23 | 14,147,000 | 14,823,227 | ||||
Omega Healthcare Investors, Inc. | 4.500 | 01-15-25 | 7,740,000 | 7,707,297 | ||||
Omega Healthcare Investors, Inc. | 4.950 | 04-01-24 | 8,758,000 | 9,145,345 | ||||
Omega Healthcare Investors, Inc. | 5.250 | 01-15-26 | 5,414,000 | 5,644,636 | ||||
Ventas Realty LP | 3.500 | 02-01-25 | 17,542,000 | 17,662,011 | ||||
VEREIT Operating Partnership LP | 4.600 | 02-06-24 | 13,092,000 | 13,704,805 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK BOND FUND 28 |
Rate (%) | Maturity date | Par value^ | Value | |||||
Telecommunication services 2.6% | $292,681,828 | |||||||
Diversified telecommunication services 1.9% | ||||||||
AT&T, Inc. | 3.900 | 08-14-27 | 16,943,000 | 16,824,869 | ||||
AT&T, Inc. | 4.750 | 05-15-46 | 11,532,000 | 11,024,522 | ||||
AT&T, Inc. | 5.450 | 03-01-47 | 27,570,000 | 29,043,210 | ||||
Cincinnati Bell, Inc. (B) | 7.000 | 07-15-24 | 9,744,000 | 9,451,680 | ||||
CSC Holdings LLC (B) | 5.500 | 04-15-27 | 7,825,000 | 7,932,594 | ||||
GCI, Inc. | 6.875 | 04-15-25 | 8,133,000 | 8,722,643 | ||||
Liquid Telecommunications Financing | ||||||||
PLC (B) | 8.500 | 07-13-22 | 9,930,000 | 10,438,773 | ||||
Radiate Holdco LLC (B) | 6.625 | 02-15-25 | 9,365,000 | 8,966,988 | ||||
Sprint Spectrum Company LLC (B) | 3.360 | 03-20-23 | 10,155,000 | 10,234,209 | ||||
Telecom Italia Capital SA | 7.200 | 07-18-36 | 13,385,000 | 16,614,131 | ||||
UPC Holding BV (B) | 5.500 | 01-15-28 | 7,190,000 | 7,154,050 | ||||
Verizon Communications, Inc. | 4.400 | 11-01-34 | 10,484,000 | 10,532,960 | ||||
Verizon Communications, Inc. | 4.672 | 03-15-55 | 8,905,000 | 8,460,181 | ||||
Verizon Communications, Inc. | 4.862 | 08-21-46 | 28,164,000 | 28,740,955 | ||||
Verizon Communications, Inc. | 5.012 | 08-21-54 | 8,591,000 | 8,663,777 | ||||
West Corp. (B) | 8.500 | 10-15-25 | 4,950,000 | 4,820,063 | ||||
Windstream Services LLC | 7.750 | 10-15-20 | 9,029,000 | 7,810,085 | ||||
Zayo Group LLC (B) | 5.750 | 01-15-27 | 3,700,000 | 3,811,000 | ||||
Wireless telecommunication services 0.7% | ||||||||
C&W Senior Financing Designated | ||||||||
Activity Company (B) | 6.875 | 09-15-27 | 10,415,000 | 10,935,750 | ||||
CC Holdings GS V LLC | 3.849 | 04-15-23 | 10,471,000 | 10,816,330 | ||||
Comunicaciones Celulares SA (B) | 6.875 | 02-06-24 | 4,730,000 | 4,910,166 | ||||
Digicel Group, Ltd. (B) | 8.250 | 09-30-20 | 6,965,000 | 6,710,847 | ||||
Digicel, Ltd. (B) | 6.750 | 03-01-23 | 10,750,000 | 10,427,500 | ||||
Millicom International Cellular SA (B) | 5.125 | 01-15-28 | 3,500,000 | 3,455,900 | ||||
MTN Mauritius Investment, Ltd. (B) | 4.755 | 11-11-24 | 9,500,000 | 9,400,250 | ||||
SBA Tower Trust (B) | 3.598 | 04-09-43 | 5,435,000 | 5,436,151 | ||||
Sprint Capital Corp. | 6.875 | 11-15-28 | 11,175,000 | 11,468,344 | ||||
T-Mobile USA, Inc. | 6.125 | 01-15-22 | 9,540,000 | 9,873,900 | ||||
Utilities 2.2% | 256,992,849 | |||||||
Electric utilities 1.3% | ||||||||
Abengoa Transmision Sur SA (B) | 6.875 | 04-30-43 | 9,549,457 | 10,516,340 | ||||
Broadcom Corp. (B) | 2.375 | 01-15-20 | 19,151,000 | 18,989,131 | ||||
Broadcom Corp. (B) | 3.875 | 01-15-27 | 21,826,000 | 21,408,905 | ||||
Electricite de France SA (B) | 3.625 | 10-13-25 | 8,860,000 | 9,056,837 | ||||
Electricite de France SA (5.250% to | ||||||||
1-29-23, then 10 Year U.S. Swap Rate | ||||||||
+ 3.709%) (B)(E) | 5.250 | 01-29-23 | 9,465,000 | 9,659,033 | ||||
Emera US Finance LP | 3.550 | 06-15-26 | 7,381,000 | 7,398,478 | ||||
Empresa Electrica Angamos SA (B) | 4.875 | 05-25-29 | 9,480,000 | 9,386,295 | ||||
Israel Electric Corp., Ltd. (B) | 5.625 | 06-21-18 | 8,070,000 | 8,215,260 | ||||
Israel Electric Corp., Ltd. (B) | 6.875 | 06-21-23 | 5,430,000 | 6,362,331 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK BOND FUND 29 |
Rate (%) | Maturity date | Par value^ | Value | |||||
Utilities (continued) | ||||||||
Electric utilities (continued) | ||||||||
Israel Electric Corp., Ltd. (B) | 7.250 | 01-15-19 | 6,960,000 | $7,309,489 | ||||
NextEra Energy Capital Holdings, Inc. | 2.300 | 04-01-19 | 6,656,000 | 6,659,184 | ||||
NextEra Energy Capital Holdings, Inc. | 3.550 | 05-01-27 | 17,450,000 | 17,796,232 | ||||
Southern California Edison Company | ||||||||
(6.250% to 2-1-22, then 3 month | ||||||||
LIBOR + 4.199%) (E) | 6.250 | 02-01-22 | 4,930,000 | 5,523,128 | ||||
Southern Power Company | 1.950 | 12-15-19 | 10,236,000 | 10,169,851 | ||||
Gas utilities 0.1% | ||||||||
AmeriGas Partners LP | 5.500 | 05-20-25 | 7,791,000 | 7,898,126 | ||||
Independent power and renewable electricity producers 0.7% | ||||||||
Greenko Dutch BV (B) | 4.875 | 07-24-22 | 11,745,000 | 11,923,994 | ||||
Greenko Dutch BV (B) | 5.250 | 07-24-24 | 5,935,000 | 6,018,090 | ||||
IPALCO Enterprises, Inc. (B) | 3.700 | 09-01-24 | 2,267,000 | 2,257,092 | ||||
NextEra Energy Operating Partners LP (B) | 4.500 | 09-15-27 | 4,300,000 | 4,310,750 | ||||
NRG Energy, Inc. | 6.250 | 05-01-24 | 19,623,000 | 20,800,380 | ||||
NRG Energy, Inc. | 6.625 | 01-15-27 | 13,445,000 | 14,486,988 | ||||
NRG Yield Operating LLC | 5.375 | 08-15-24 | 22,051,000 | 22,877,913 | ||||
Multi-utilities 0.1% | ||||||||
CenterPoint Energy, Inc. | 2.500 | 09-01-22 | 8,700,000 | 8,593,172 | ||||
Dominion Energy, Inc. | 2.579 | 07-01-20 | 9,370,000 | 9,375,850 | ||||
Convertible bonds 0.1% | $9,206,141 | |||||||
(Cost $9,125,697) | ||||||||
Utilities 0.1% | 9,206,141 | |||||||
Independent power and renewable electricity producers 0.1% | ||||||||
NRG Yield, Inc. (B) | 3.250 | 06-01-20 | 9,235,000 | 9,206,141 | ||||
Capital preferred securities 0.1% | $19,359,926 | |||||||
(Cost $17,165,931) | ||||||||
Financials 0.1% | 19,359,926 | |||||||
Banks 0.0% | ||||||||
BAC Capital Trust XIV, Series G (Greater | ||||||||
of 3 month LIBOR + 0.400% or | ||||||||
4.000%) (A)(E) | 4.000 | 12-18-17 | 8,562,000 | 7,759,313 | ||||
Capital markets 0.1% | ||||||||
State Street Corp. (3 month LIBOR + | ||||||||
1.000%) (A) | 2.320 | 06-01-77 | 12,713,000 | 11,600,613 | ||||
Term loans (F) 0.1% | $10,461,481 | |||||||
(Cost $10,418,632) | ||||||||
Financials 0.1% | 4,729,187 | |||||||
Capital markets 0.1% | ||||||||
LSF9 Atlantis Holdings LLC (1 month | ||||||||
LIBOR + 6.000%) | 7.242 | 05-01-23 | 4,720,313 | 4,729,187 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK BOND FUND 30 |
Rate (%) | Maturity date | Par value^ | Value | |||||
Industrials 0.0% | $3,862,365 | |||||||
Aerospace and defense 0.0% | ||||||||
WP CPP Holdings LLC (1 and 3 month | ||||||||
LIBOR + 3.500%) | 4.881 | 12-28-19 | 1,627,188 | 1,610,916 | ||||
Airlines 0.0% | ||||||||
Delta Air Lines, Inc. (1 month LIBOR + | ||||||||
2.500%) | 3.764 | 10-18-18 | 2,243,306 | 2,251,449 | ||||
Information technology 0.0% | 1,869,929 | |||||||
Internet software and services 0.0% | ||||||||
Ancestry.com Operations, Inc. (3 month | ||||||||
LIBOR + 3.250%) | 4.500 | 10-19-23 | 1,861,200 | 1,869,929 | ||||
Collateralized mortgage obligations 8.2% | $932,781,490 | |||||||
(Cost $929,168,583) | ||||||||
Commercial and residential 6.7% | 766,971,658 | |||||||
American Home Mortgage Investment Trust | ||||||||
Series 2005-1, Class 1A1 (1 month | ||||||||
LIBOR + 0.440%) (A) | 1.678 | 06-25-45 | 4,603,019 | 4,532,246 | ||||
Series 2005-1, Class AHM (6 month | ||||||||
LIBOR + 2.000%) (A) | 3.561 | 06-25-45 | 1,646,933 | 1,645,942 | ||||
Americold LLC | ||||||||
Series 2010-ARTA, Class C (B) | 6.811 | 01-14-29 | 2,150,000 | 2,358,250 | ||||
Series 2010-ARTA, Class D (B) | 7.443 | 01-14-29 | 9,682,000 | 10,651,688 | ||||
AOA Mortgage Trust | ||||||||
Series 2015-1177, Class C (A)(B) | 3.110 | 12-13-29 | 6,501,000 | 6,465,726 | ||||
BAMLL Commercial Mortgage Securities Trust | ||||||||
Series 2013-DSNY, Class E (1 month | ||||||||
LIBOR + 2.600%) (A)(B) | 3.839 | 09-15-26 | 3,650,000 | 3,652,092 | ||||
Series 2015-200P, Class F (A)(B) | 3.716 | 04-14-33 | 6,165,000 | 5,929,749 | ||||
Banc of America Merrill Lynch | ||||||||
Commercial Mortgage, Inc. | ||||||||
Series 2005-5, Class XC IO (B) | 0.090 | 10-10-45 | 3,398,831 | 7 | ||||
BBCMS Trust | ||||||||
Series 2015-MSQ, Class D (A)(B) | 4.123 | 09-15-32 | 7,060,000 | 7,021,262 | ||||
Series 2015-SRCH, Class D (A)(B) | 5.122 | 08-10-35 | 15,205,000 | 16,055,492 | ||||
Bear Stearns Adjustable Rate Mortgage Trust | ||||||||
Series 2005-2, Class A1 (1 Year CMT | ||||||||
+ 2.450%) (A) | 3.260 | 03-25-35 | 3,119,724 | 3,151,968 | ||||
Series 2005-5, Class A2 (1 Year CMT | ||||||||
+ 2.150%) (A) | 3.580 | 08-25-35 | 3,222,729 | 3,209,333 | ||||
Bear Stearns ALT-A Trust | ||||||||
Series 2005-5, Class 1A4 (1 month | ||||||||
LIBOR + 0.560%) (A) | 1.889 | 07-25-35 | 2,509,511 | 2,476,717 | ||||
Series 2005-7, Class 11A1 (1 month | ||||||||
LIBOR + 0.540%) (A) | 1.869 | 08-25-35 | 4,538,275 | 4,456,739 | ||||
Bear Stearns Asset Backed Securities | ||||||||
Trust | ||||||||
Series 2004-AC5, Class A1 | 5.750 | 10-25-34 | 3,926,145 | 3,916,521 | ||||
Bear Stearns Commercial Mortgage | ||||||||
Securities Trust | ||||||||
Series 2005-PWR8, Class X1 IO (B) | 0.520 | 06-11-41 | 534,193 | 4,876 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK BOND FUND 31 |
Rate (%) | Maturity date | Par value^ | Value | ||||
Commercial and residential (continued) | |||||||
BHMS Mortgage Trust | |||||||
Series 2014-ATLS, Class CFX (A)(B) | 4.847 | 07-05-33 | 1,000,000 | $1,006,371 | |||
Series 2014-ATLS, Class DFL (1 month | |||||||
LIBOR + 3.000%) (A)(B) | 4.243 | 07-05-33 | 7,830,000 | 7,898,619 | |||
BWAY Mortgage Trust | |||||||
Series 2013-1515, Class F (A)(B) | 4.058 | 03-10-33 | 9,196,000 | 9,019,795 | |||
Series 2013-1515, Class XB IO (B) | 0.534 | 03-10-33 | 46,410,000 | 1,267,267 | |||
Series 2015-1740, Class D (A)(B) | 3.787 | 01-10-35 | 5,400,000 | 5,307,097 | |||
Series 2015-1740, Class XA IO (B) | 1.023 | 01-10-35 | 123,773,000 | 4,496,401 | |||
BXP Trust | |||||||
Series 2017-GM, Class D (A)(B) | 3.539 | 06-13-39 | 14,320,000 | 13,693,069 | |||
CD Commercial Mortgage Trust | |||||||
Series 2017-CD3, Class C (A) | 4.715 | 02-10-50 | 12,137,000 | 12,636,660 | |||
CGBAM Commercial Mortgage Trust | |||||||
Series 2015-SMRT, Class F (A)(B) | 3.912 | 04-10-28 | 4,975,000 | 4,923,003 | |||
CGDB Commercial Mortgage Trust | |||||||
Series 2017-BIO, Class E (1 month | |||||||
LIBOR + 2.500%) (A)(B) | 3.750 | 05-15-30 | 2,110,000 | 2,113,792 | |||
CGDBB Commercial Mortgage Trust | |||||||
Series 2017-BIOC, Class E (1 month | |||||||
LIBOR + 2.150%) (A)(B) | 3.400 | 07-15-28 | 9,920,000 | 9,919,980 | |||
CGGS Commercial Mortgage Trust | |||||||
Series 2016-RNDA, Class DFX (B) | 4.387 | 02-10-33 | 12,982,334 | 13,007,875 | |||
Citigroup Commercial Mortgage Trust | |||||||
Series 2017-1500, Class E (1 month | |||||||
LIBOR + 2.500%) (A)(B) | 3.750 | 07-15-32 | 4,600,000 | 4,590,295 | |||
CLNS Trust | |||||||
Series 2017-IKPR, Class C (1 month | |||||||
LIBOR + 1.100%) (A)(B) | 2.345 | 06-11-32 | 5,645,000 | 5,643,220 | |||
Cold Storage Trust | |||||||
Series 2017-ICE3, Class D (1 month | |||||||
LIBOR + 2.100%) (A)(B) | 3.600 | 04-15-36 | 14,575,000 | 14,647,629 | |||
Commercial Mortgage Trust (Bank of | |||||||
America Merrill Lynch/Deutsche Bank | |||||||
AG) | |||||||
Series 2013-WWP, Class A2 (B) | 3.424 | 03-10-31 | 3,955,000 | 4,111,215 | |||
Commercial Mortgage Trust (Cantor Fitzgerald/Deutsche Bank AG) | |||||||
Series 2012-CR2, Class XA IO | 1.824 | 08-15-45 | 71,047,587 | 4,514,477 | |||
Series 2012-CR3 Class XA IO | 1.883 | 10-15-45 | 100,731,284 | 7,584,693 | |||
Series 2013-CR6, Class XA IO | 1.415 | 03-10-46 | 40,493,283 | 1,463,816 | |||
Series 2013-CR8, Class XA IO | 0.739 | 06-10-46 | 42,082,533 | 810,194 | |||
Series 2014-CR15, Class C (A) | 4.911 | 02-10-47 | 2,200,000 | 2,292,864 | |||
Series 2014-CR15, Class XA IO | 1.417 | 02-10-47 | 94,838,403 | 3,679,483 | |||
Series 2014-CR16, Class C (A) | 5.065 | 04-10-47 | 12,185,000 | 12,842,150 | |||
Series 2014-CR21, Class A2 | 3.095 | 12-10-47 | 3,000,000 | 3,044,036 | |||
Series 2015-CR27, Class B (A) | 4.510 | 10-10-48 | 6,445,000 | 6,746,244 | |||
Commercial Mortgage Trust (Deutsche Bank AG) | |||||||
Series 2012-LC4, Class B (A) | 4.934 | 12-10-44 | 3,919,000 | 4,106,146 | |||
Series 2013-300P, Class D (A)(B) | 4.540 | 08-10-30 | 17,960,000 | 18,747,693 | |||
Series 2013-300P, Class E (A)(B) | 4.540 | 08-10-30 | 800,000 | 752,258 | |||
Series 2013-CR11, Class B (A) | 5.327 | 08-10-50 | 13,560,000 | 14,623,274 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK BOND FUND 32 |
Rate (%) | Maturity date | Par value^ | Value | ||||
Commercial and residential (continued) | |||||||
Series 2013-CR13, Class C (A) | 4.904 | 11-12-46 | 4,890,000 | $5,087,172 | |||
Series 2013-LC13, Class B (A)(B) | 5.009 | 08-10-46 | 5,820,000 | 6,288,208 | |||
Series 2014-FL4, Class D (1 month | |||||||
LIBOR + 2.450%) (A)(B) | 3.689 | 07-13-31 | 10,550,000 | 10,491,548 | |||
Series 2014-LC15, Class C (A) | 5.109 | 04-10-47 | 1,300,000 | 1,342,896 | |||
Series 2014-TWC, Class D (1 month | |||||||
LIBOR + 2.250%) (A)(B) | 3.588 | 02-13-32 | 7,630,000 | 7,660,386 | |||
Commercial Mortgage Trust (Deutsche | |||||||
Bank AG/Morgan Stanley) | |||||||
Series 2014-PAT, Class D (1 month | |||||||
LIBOR + 2.150%) (A)(B) | 3.385 | 08-13-27 | 9,885,000 | 9,897,030 | |||
Core Industrial Trust | |||||||
Series 2015-CALW, Class F (A)(B) | 3.979 | 02-10-34 | 8,295,000 | 8,249,372 | |||
Credit Suisse First Boston Mortgage | |||||||
Securities Corp. | |||||||
Series 2005-C1, Class AX IO (B) | 0.914 | 02-15-38 | 501,740 | 10 | |||
DBJPM Mortgage Trust | |||||||
Series 2016-C3, Class C (A) | 3.635 | 09-10-49 | 4,863,000 | 4,700,996 | |||
Series 2017-C6, Class C (A) | 4.174 | 06-10-50 | 8,885,000 | 9,031,324 | |||
Deutsche Mortgage Securities, Inc. | |||||||
Mortgage Loan Trust | |||||||
Series 2004-4, Class 2AR1 (1 month | |||||||
LIBOR + 0.540%) (A) | 1.869 | 06-25-34 | 2,009,926 | 1,983,731 | |||
GAHR Commercial Mortgage Trust | |||||||
Series 2015-NRF, Class BFX (A)(B) | 3.495 | 12-15-34 | 2,250,000 | 2,277,689 | |||
Series 2015-NRF, Class DFX (A)(B) | 3.495 | 12-15-34 | 13,055,000 | 13,133,468 | |||
Series 2015-NRF, Class EFX (A)(B) | 3.495 | 12-15-34 | 7,560,000 | 7,524,516 | |||
GE Capital Commercial Mortgage Corp. | |||||||
Series 2005-C1, Class XC IO (B) | 0.010 | 06-10-48 | 77,220 | 0 | |||
GMAC Mortgage Loan Trust | |||||||
Series 2004-AR2, Class 3A (A) | 4.085 | 08-19-34 | 1,442,866 | 1,395,172 | |||
GS Mortgage Securities Trust | |||||||
Series 2011-GC5, Class XA IO (B) | 1.520 | 08-10-44 | 14,756,857 | 587,977 | |||
Series 2012-GC17, Class XA IO | 2.419 | 05-10-45 | 103,455,813 | 6,531,134 | |||
Series 2013-GC10, Class C (A)(B) | 4.285 | 02-10-46 | 1,140,200 | 1,154,067 | |||
Series 2014-NEW, Class C (B) | 3.790 | 01-10-31 | 3,075,000 | 3,061,138 | |||
Series 2015-590M, Class C (A)(B) | 3.932 | 10-10-35 | 6,950,000 | 6,941,844 | |||
Series 2016-RENT, Class D (A)(B) | 4.202 | 02-10-29 | 12,595,000 | 12,766,137 | |||
Series 2017-485L, Class C (A)(B) | 4.115 | 02-10-37 | 6,250,000 | 6,422,019 | |||
Series 2017-500K, Class F (1 month | |||||||
LIBOR + 1.800%) (A)(B) | 3.050 | 07-15-32 | 3,420,000 | 3,425,058 | |||
Series 2017-500K, Class G (1 month | |||||||
LIBOR + 2.500%) (A)(B) | 3.750 | 07-15-32 | 1,730,000 | 1,730,507 | |||
Series 2017-GS5, Class C (A) | 4.299 | 03-10-50 | 5,125,000 | 5,190,731 | |||
Series 2017-GS6, Class C (A) | 4.322 | 05-10-50 | 6,940,000 | 7,108,551 | |||
Series 2005-GG4, Class XC IO (B) | 1.594 | 07-10-39 | 10,645 | 0 | |||
HarborView Mortgage Loan Trust | |||||||
Series 2005-2, Class X IO | 1.337 | 05-19-35 | 23,675,839 | 1,074,871 | |||
Series 2005-9, Class 2A1C (1 month | |||||||
LIBOR + 0.450%) (A) | 1.733 | 06-20-35 | 5,507,767 | 5,474,019 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK BOND FUND 33 |
Rate (%) | Maturity date | Par value^ | Value | ||||
Commercial and residential (continued) | |||||||
Series 2007-3, Class ES IO (B) | 0.350 | 05-19-47 | 41,842,787 | $646,764 | |||
Series 2007-4, Class ES IO | 0.350 | 07-19-47 | 44,212,366 | 638,913 | |||
Series 2007-6, Class ES IO (B) | 0.343 | 08-19-37 | 36,037,859 | 458,546 | |||
HILT Mortgage Trust | |||||||
Series 2014-ORL, Class D (1 month | |||||||
LIBOR + 2.150%) (A)(B) | 3.400 | 07-15-29 | 7,325,000 | 7,336,271 | |||
Hilton USA Trust | |||||||
Series 2016-HHV, Class D (A)(B) | 4.333 | 11-05-38 | 6,630,000 | 6,540,531 | |||
Hudsons Bay Simon JV Trust | |||||||
Series 2015-HBFL, Class DFL (1 month | |||||||
LIBOR + 3.650%) (A)(B) | 4.892 | 08-05-34 | 4,620,000 | 4,616,961 | |||
Impac Secured Assets Corp. | |||||||
Series 2004-4, Class M2 (1 month | |||||||
LIBOR + 0.810%) (A) | 2.139 | 02-25-35 | 4,765,000 | 4,760,435 | |||
IMT Trust | |||||||
Series 2017-APTS, Class CFX (A)(B) | 3.613 | 06-15-34 | 6,800,000 | 6,749,709 | |||
IndyMac Index Mortgage Loan Trust | |||||||
Series 2005-AR12, Class AX2 IO | 1.710 | 07-25-35 | 59,624,907 | 2,320,512 | |||
Series 2005-AR8, Class AX2 IO | 1.416 | 05-25-35 | 52,756,055 | 2,202,549 | |||
Series 2005-AR18, Class 1X IO | 1.564 | 10-25-36 | 23,997,734 | 1,455,124 | |||
Series 2005-AR18, Class 2X IO | 1.291 | 10-25-36 | 41,141,322 | 997,225 | |||
Irvine Core Office Trust | |||||||
Series 2013-IRV, Class XA IO (B) | 1.211 | 05-15-48 | 18,531,828 | 554,294 | |||
JPMBB Commercial Mortgage Securities Trust | |||||||
Series 2013-C14, Class XA IO | 0.916 | 08-15-46 | 16,506,229 | 377,365 | |||
Series 2014-C19, Class C (A) | 4.816 | 04-15-47 | 11,255,000 | 11,521,333 | |||
JPMorgan Chase Commercial Mortgage Securities Trust | |||||||
Series 2011-C3A, Class XA IO (B) | 1.183 | 02-15-46 | 14,306,968 | 309,431 | |||
Series 2011-C4, Class XA IO (B) | 1.539 | 07-15-46 | 21,723,339 | 315,903 | |||
Series 2012-C14, Class XA IO (B) | 1.582 | 07-05-32 | 85,774,444 | 4,928,548 | |||
Series 2014-FL5, Class C (1 month | |||||||
LIBOR + 2.100%) (A)(B) | 3.350 | 07-15-31 | 11,982,000 | 11,889,559 | |||
Series 2014-PHH, Class C (1 month | |||||||
LIBOR + 2.350%) (A)(B) | 3.589 | 08-15-27 | 10,888,000 | 10,888,003 | |||
Series 2015-MAR7, Class C (B) | 4.490 | 06-05-32 | 9,155,000 | 9,318,607 | |||
Series 2015-SGP, Class B (1 month | |||||||
LIBOR + 2.750%) (A)(B) | 3.989 | 07-15-36 | 7,241,000 | 7,302,060 | |||
Series 2016-JP2, Class XA IO | 2.009 | 08-15-49 | 14,261,195 | 1,745,669 | |||
Series 2016-JP3, Class C (A) | 3.622 | 08-15-49 | 4,010,000 | 3,844,467 | |||
MAD Mortgage Trust | |||||||
Series 2017-330M, Class D (A)(B) | 4.108 | 08-15-34 | 9,283,000 | 9,311,784 | |||
MASTR Adjustable Rate Mortgages Trust | |||||||
Series 2004-11, Class M2 (1 month | |||||||
LIBOR + 1.100%) (A) | 2.429 | 11-25-34 | 5,779,963 | 5,869,895 | |||
MASTR Alternative Loan Trust | |||||||
Series 2005-2, Class 4A3 (1 month | |||||||
LIBOR + 0.400%) (A) | 1.729 | 03-25-35 | 2,801,289 | 2,696,107 | |||
Merrill Lynch Mortgage Investors Trust | |||||||
Series 2005-2, Class 1A (6 month | |||||||
LIBOR + 1.250%) (A) | 2.665 | 10-25-35 | 3,589,314 | 3,593,994 | |||
Merrill Lynch Mortgage Trust |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK BOND FUND 34 |
Rate (%) | Maturity date | Par value^ | Value | ||||
Commercial and residential (continued) | |||||||
Series 2005-CIP1, Class XC IO (B) | 0.010 | 07-12-38 | 3,152,723 | $495 | |||
Series 2006-C2, Class X IO (B) | 0.337 | 08-12-43 | 427,672 | 126 | |||
Morgan Stanley Bank of America Merrill Lynch Trust | |||||||
Series 2012-C5, Class XA IO (B) | 1.637 | 08-15-45 | 13,686,991 | 743,852 | |||
Series 2012-C6, Class XA IO (B) | 1.789 | 11-15-45 | 9,386,822 | 591,286 | |||
Series 2013-C7, Class C (A) | 4.281 | 02-15-46 | 4,107,000 | 4,043,439 | |||
Series 2014-C18, Class 300D | 5.279 | 08-15-31 | 4,175,000 | 4,338,522 | |||
Series 2014-C19, Class A2 | 3.101 | 12-15-47 | 3,200,000 | 3,252,482 | |||
Morgan Stanley Capital I Trust | |||||||
Series 2011-C3, Class XA IO (B) | 0.920 | 07-15-49 | 11,746,403 | 252,538 | |||
Series 2012-C4, Class AS | 3.773 | 03-15-45 | 2,371,500 | 2,438,686 | |||
Series 2014-150E, Class D (A)(B) | 4.438 | 09-09-32 | 18,800,000 | 19,251,572 | |||
Series 2015, Class XLF1 C (1 month | |||||||
LIBOR + 2.200%) (A)(B) | 3.446 | 08-14-31 | 8,420,000 | 8,454,339 | |||
Series 2017-CLS, Class D (1 month | |||||||
LIBOR + 1.400%) (A)(B) | 2.650 | 11-15-34 | 4,850,000 | 4,850,000 | |||
Morgan Stanley Mortgage Loan Trust | |||||||
Series 2004-6AR, Class 2A2 (A) | 3.761 | 08-25-34 | 2,900,029 | 2,889,310 | |||
MortgageIT Trust | |||||||
Series 2005-2, Class 1A2 (1 month | |||||||
LIBOR + 0.660%) (A) | 1.989 | 05-25-35 | 2,150,102 | 2,131,983 | |||
MSCG Trust | |||||||
Series 2016-SNR, Class D (B) | 6.550 | 11-15-34 | 11,115,000 | 11,235,080 | |||
MSDB Trust | |||||||
Series 2017-712F, Class C (A)(B) | 3.749 | 07-11-39 | 2,245,000 | 2,260,425 | |||
MSSG Trust | |||||||
Series 2017-237P, Class D (B) | 3.864 | 09-13-39 | 5,235,000 | 5,068,877 | |||
Series 2017-237P, Class E (B) | 3.864 | 09-13-39 | 7,655,000 | 6,914,657 | |||
Olympic Tower Mortgage Trust | |||||||
Series 2017-OT, Class D (A)(B) | 4.077 | 05-10-39 | 10,850,000 | 10,790,786 | |||
One Market Plaza Trust | |||||||
Series 2017-1MKT, Class D (B) | 4.146 | 02-10-32 | 4,755,000 | 4,819,396 | |||
Opteum Mortgage Acceptance Corp. | |||||||
Asset Backed Pass Through | |||||||
Certificates | |||||||
Series 2005-2, Class M2 (1 month | |||||||
LIBOR + 6.750%) (A) | 2.004 | 04-25-35 | 5,937,672 | 5,934,631 | |||
Residential Accredit Loans, Inc. | |||||||
Series 2005-QO4, Class XIO IO | 1.970 | 12-25-45 | 21,137,680 | 2,128,964 | |||
Sequoia Mortgage Trust | |||||||
Series 2005-3, Class A1 (1 month | |||||||
LIBOR + 0.200%) (A) | 1.483 | 05-20-35 | 2,129 | 2,081 | |||
Thornburg Mortgage Securities Trust | |||||||
Series 2004-1, Class II2A (A) | 2.389 | 03-25-44 | 2,497,320 | 2,447,853 | |||
TMSQ Mortgage Trust | |||||||
Series 2011-1500, Class D (A)(B) | 3.963 | 10-10-36 | 7,755,000 | 7,507,947 | |||
UBS Commercial Mortgage Trust | |||||||
Series 2012-C1, Class B | 4.822 | 05-10-45 | 3,455,000 | 3,719,321 | |||
UBS-Barclays Commercial Mortgage | |||||||
Trust | |||||||
Series 2012-C2, Class XA IO (B) | 1.527 | 05-10-63 | 47,556,624 | 2,360,749 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK BOND FUND 35 |
Rate (%) | Maturity date | Par value^ | Value | ||||
Commercial and residential (continued) | |||||||
VNDO Mortgage Trust | |||||||
Series 2013-PENN, Class D (A)(B) | 4.079 | 12-13-29 | 16,737,000 | $17,027,014 | |||
VNDO Trust | |||||||
Series 2016-350P, Class D (A)(B) | 4.033 | 01-10-35 | 11,190,000 | 10,932,557 | |||
WaMu Mortgage Pass Through Certificates | |||||||
Series 2005-AR19, Class A1A2 (1 | |||||||
month LIBOR + 0.290%) (A) | 1.619 | 12-25-45 | 4,189,588 | 4,104,425 | |||
Series 2005-AR2, Class 2A1B (1 | |||||||
month LIBOR + 0.370%) (A) | 1.699 | 01-25-45 | 2,815,001 | 2,761,341 | |||
Series 2005-AR2, Class 2A3 (1 month | |||||||
LIBOR + 0.350%) (A) | 1.679 | 01-25-45 | 3,011,121 | 2,947,304 | |||
Series 2005-AR8, Class 2AB2 (1 | |||||||
month LIBOR + 0.420%) (A) | 1.749 | 07-25-45 | 5,144,075 | 5,102,938 | |||
Series 2005-AR8, Class 2AB3 (1 | |||||||
month LIBOR + 0.360%) (A) | 1.689 | 07-25-45 | 543,203 | 535,506 | |||
Wells Fargo Commercial Mortgage Trust | |||||||
Series 2013-120B, Class C (A)(B) | 2.800 | 03-18-28 | 14,320,000 | 14,250,356 | |||
Series 2013-BTC, Class E (A)(B) | 3.668 | 04-16-35 | 7,270,000 | 6,966,309 | |||
Series 2015-LC22, Class B (A) | 4.693 | 09-15-58 | 9,004,000 | 9,571,081 | |||
Series 2017-RB1, Class C (A) | 4.311 | 03-15-50 | 6,605,000 | 6,700,805 | |||
WFCG Commercial Mortgage Trust | |||||||
Series 2015-BXRP, Class D (1 month | |||||||
LIBOR + 2.571%) (A)(B) | 3.821 | 11-15-29 | 775,307 | 775,307 | |||
WF-RBS Commercial Mortgage Trust | |||||||
Series 2011-C2, Class XA IO (B) | 1.003 | 02-15-44 | 40,758,219 | 826,927 | |||
Series 2011-C3, Class XA IO (B) | 1.533 | 03-15-44 | 28,136,905 | 876,580 | |||
Series 2012-C10, Class XA IO (B) | 1.730 | 12-15-45 | 9,582,795 | 601,180 | |||
Series 2012-C9, Class B XA IO (B) | 2.124 | 11-15-45 | 68,807,711 | 4,945,995 | |||
Series 2013-C15, Class B (A) | 4.631 | 08-15-46 | 2,637,000 | 2,774,848 | |||
Series 2013-C15, Class C (A) | 4.631 | 08-15-46 | 1,000,000 | 1,011,296 | |||
Series 2013-C16, Class B (A) | 5.145 | 09-15-46 | 2,970,000 | 3,201,660 | |||
Series 2013-C16, Class XA IO | 1.090 | 09-15-46 | 13,031,265 | 429,130 | |||
Worldwide Plaza Trust | |||||||
Series 2017-WWP, Class D (A)(B) | 3.596 | 11-10-36 | 7,675,000 | 7,459,348 | |||
U.S. Government Agency 1.5% | 165,809,832 | ||||||
Federal Home Loan Mortgage Corp. | |||||||
Series 2015-DNA1, Class M2 (1 | |||||||
month LIBOR + 1.850%) (A) | 3.179 | 10-25-27 | 6,265,000 | 6,409,092 | |||
Series 2016-DNA3, Class M2 (1 | |||||||
month LIBOR + 2.000%) (A) | 3.328 | 12-25-28 | 3,225,000 | 3,288,282 | |||
Series K005, Class AX IO | 1.538 | 11-25-19 | 91,091,293 | 2,144,653 | |||
Series K006, Class BX1 IO | 5.542 | 02-25-20 | 4,478,800 | 476,691 | |||
Series K010, Class X1 IO | 0.331 | 10-25-20 | 29,469,436 | 139,877 | |||
Series K011, Class X1 IO | 0.397 | 11-25-20 | 50,698,123 | 338,207 | |||
Series K014, Class X1 IO | 1.187 | 04-25-21 | 40,273,420 | 1,367,045 | |||
Series K015, Class X1 IO | 1.764 | 07-25-21 | 40,930,942 | 1,985,855 | |||
Series K017, Class X1 IO | 1.500 | 12-25-21 | 162,844,815 | 7,298,265 | |||
Series K018, Class X1 IO | 1.519 | 01-25-22 | 146,721,688 | 4,773,850 | |||
Series K021, Class X1 IO | 1.600 | 06-25-22 | 35,347,028 | 1,940,025 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK BOND FUND 36 |
Rate (%) | Maturity date | Par value^ | Value | ||||
U.S. Government Agency (continued) | |||||||
Series K022, Class X1 IO | 1.379 | 07-25-22 | 137,633,909 | $6,577,855 | |||
Series K024, Class X1 IO | 0.984 | 09-25-22 | 10,565,164 | 356,048 | |||
Series K026, Class X1 IO | 1.140 | 11-25-22 | 13,094,026 | 535,352 | |||
Series K705, Class X1 IO | 1.849 | 09-25-18 | 14,745,551 | 176,084 | |||
Series K707, Class X1 IO | 1.653 | 12-25-18 | 10,816,847 | 119,315 | |||
Series K709, Class X1 IO | 1.638 | 03-25-19 | 47,373,692 | 706,725 | |||
Series K710, Class X1 IO | 1.864 | 05-25-19 | 72,078,297 | 1,364,947 | |||
Series K711, Class X1 IO | 1.806 | 07-25-19 | 59,315,262 | 1,157,769 | |||
Series KAIV, Class X1 IO | 1.299 | 06-25-21 | 24,197,625 | 842,796 | |||
Series KS01, Class X1 IO | 1.469 | 01-25-23 | 13,783,049 | 646,819 | |||
Series KS03, Class X IO | 0.429 | 08-25-25 | 38,837,906 | 556,303 | |||
Series T-41, Class 3A (A) | 5.662 | 07-25-32 | 1,344 | 1,439 | |||
Federal National Mortgage Association | |||||||
Series 2001-50, Class BA | 7.000 | 10-25-41 | 254 | 288 | |||
Series 2012-M5, Class X IO | 0.662 | 02-25-22 | 26,331,145 | 501,816 | |||
Series 2012-MB, Class X1 IO | 2.167 | 12-25-19 | 5,982,853 | 89,919 | |||
Government National Mortgage Association | |||||||
Series 2008-90, Class IO | 1.757 | 12-16-50 | 3,049,051 | 541,344 | |||
Series 2012-114, Class IO | 0.809 | 01-16-53 | 27,378,869 | 1,394,214 | |||
Series 2012-120, Class IO | 0.791 | 02-16-53 | 11,851,764 | 532,797 | |||
Series 2012-125, Class IO | 0.414 | 02-16-53 | 14,909,800 | 456,671 | |||
Series 2012-70, Class IO | 0.497 | 08-16-52 | 7,316,543 | 160,104 | |||
Series 2013-63, Class IO | 0.787 | 09-16-51 | 15,799,075 | 849,704 | |||
Series 2016-142, Class IO | 0.998 | 09-16-58 | 32,266,843 | 2,592,270 | |||
Series 2016-162, Class IO | 0.996 | 09-16-58 | 77,550,729 | 6,154,728 | |||
Series 2016-174, Class IO | 0.899 | 11-16-56 | 49,573,383 | 3,920,288 | |||
Series 2016-87, Class IO | 1.007 | 08-16-58 | 37,928,607 | 2,919,467 | |||
Series 2016-94, Class IO | 1.170 | 12-16-57 | 143,725,357 | 12,396,312 | |||
Series 2017-109, Class IO | 0.612 | 04-16-57 | 97,830,467 | 6,068,502 | |||
Series 2017-124, Class IO | 0.705 | 01-16-59 | 124,493,008 | 8,812,200 | |||
Series 2017-135, Class IO | 0.840 | 10-16-58 | 86,681,101 | 6,549,711 | |||
Series 2017-140, Class IO | 0.609 | 02-16-59 | 74,392,641 | 5,198,558 | |||
Series 2017-159, Class IO | 0.545 | 06-16-59 | 99,955,363 | 6,158,790 | |||
Series 2017-169, Class IO | 0.744 | 01-16-60 | 161,315,000 | 11,245,317 | |||
Series 2017-20, Class IO | 0.749 | 12-16-58 | 107,933,441 | 7,218,999 | |||
Series 2017-22, Class IO | 1.047 | 12-16-57 | 40,047,475 | 3,702,317 | |||
Series 2017-3, Class IO | 0.907 | 09-16-58 | 95,449,116 | 7,132,712 | |||
Series 2017-46, Class IO | 0.619 | 11-16-57 | 85,525,783 | 5,526,197 | |||
Series 2017-61, Class IO | 0.766 | 05-16-59 | 54,929,193 | 4,518,756 | |||
Series 2017-74, Class IO | 0.781 | 09-16-58 | 123,616,525 | 8,067,239 | |||
Series 2017-89, Class IO | 0.764 | 07-16-59 | 123,173,897 | 9,897,318 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK BOND FUND 37 |
Rate (%) | Maturity date | Par value^ | Value | |||||
Asset backed securities 10.4% | $1,180,013,939 | |||||||
(Cost $1,179,035,868) | ||||||||
Asset backed securities 10.4% | 1,180,013,939 | |||||||
Aegis Asset Backed Securities Trust | ||||||||
Series 2005-4, Class M1 (1 month | ||||||||
LIBOR + 0.450%) (A) | 1.779 | 10-25-35 | 13,940,000 | 13,917,756 | ||||
Ally Auto Receivables Trust | ||||||||
Series 2017-3, Class A3 | 1.740 | 09-15-21 | 17,200,000 | 17,125,175 | ||||
Series 2017-4, Class A4 | 1.960 | 07-15-22 | 12,120,000 | 12,016,149 | ||||
American Express Credit Account Master | ||||||||
Trust | ||||||||
Series 2017-1, Class A | 1.930 | 09-15-22 | 34,930,000 | 34,841,641 | ||||
Amresco Residential Securities Mortgage | ||||||||
Loan Trust | ||||||||
Series 1998-1, Class A6 | 6.510 | 08-25-27 | 17 | 18 | ||||
Applebee’s Funding LLC | ||||||||
Series 2014-1, Class A2 (B) | 4.277 | 09-05-44 | 22,805,000 | 22,243,283 | ||||
Arby’s Funding LLC | ||||||||
Series 2015-1A, Class A2 (B) | 4.969 | 10-30-45 | 17,316,600 | 17,660,508 | ||||
Argent Securities, Inc. | ||||||||
Series 2003-W10, Class M1 (1 month | ||||||||
LIBOR + 1.080%) (A) | 2.409 | 01-25-34 | 1,918,232 | 1,877,696 | ||||
Series 2004-W6, Class M1 (1 month | ||||||||
LIBOR + 0.825%) (A) | 2.154 | 05-25-34 | 1,146,407 | 1,143,282 | ||||
BA Credit Card Trust | ||||||||
Series 2017-A1, Class A1 | 1.950 | 08-15-22 | 43,385,000 | 43,292,980 | ||||
BMW Vehicle Owner Trust | ||||||||
Series 2016-A, Class A4 | 1.370 | 12-27-22 | 6,460,000 | 6,365,012 | ||||
Cabela’s Credit Card Master Note Trust | ||||||||
Series 2016-1, Class A1 | 1.780 | 06-15-22 | 34,888,500 | 34,727,926 | ||||
California Republic Auto | ||||||||
Receivables Trust | ||||||||
Series 2015-2, Class A4 | 1.750 | 01-15-21 | 14,957,000 | 14,934,588 | ||||
Series 2016-2, Class A4 | 1.830 | 12-15-21 | 18,702,000 | 18,595,107 | ||||
Capital One Multi-Asset Execution Trust | ||||||||
Series 2016-A3, Class A3 | 1.340 | 04-15-22 | 22,279,000 | 22,064,513 | ||||
Series 2017-A1, Class A1 | 2.000 | 01-17-23 | 37,680,000 | 37,600,488 | ||||
CarMax Auto Owner Trust | ||||||||
Series 2015-2, Class A4 | 1.800 | 03-15-21 | 6,490,000 | 6,470,358 | ||||
Series 2016-1, Class A4 | 1.880 | 06-15-21 | 5,015,000 | 4,986,343 | ||||
Series 2016-2, Class A4 | 1.680 | 09-15-21 | 6,310,000 | 6,246,159 | ||||
Series 2016-3, Class A3 | 1.390 | 05-17-21 | 11,815,000 | 11,725,182 | ||||
Chase Issuance Trust | ||||||||
Series 2016-A2, Class A | 1.370 | 06-15-21 | 26,430,000 | 26,191,538 | ||||
Series 2016-A5, Class A5 | 1.270 | 07-15-21 | 46,556,000 | 46,005,457 | ||||
Chrysler Capital Auto Receivables Trust | ||||||||
Series 2016-BA, Class A4 (B) | 1.870 | 02-15-22 | 5,620,000 | 5,564,956 | ||||
Citibank Credit Card Issuance Trust | ||||||||
Series 2016-A1, Class A1 | 1.750 | 11-19-21 | 37,590,000 | 37,375,955 | ||||
CKE Restaurant Holdings, Inc. | ||||||||
Series 2013-1A, Class A2 (B) | 4.474 | 03-20-43 | 14,464,032 | 14,524,713 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK BOND FUND 38 |
Rate (%) | Maturity date | Par value^ | Value | |||||
Asset backed securities (continued) | ||||||||
CNH Equipment Trust | ||||||||
Series 2016-B, Class A3 | 1.630 | 08-15-21 | 5,240,000 | $5,216,572 | ||||
Series 2017-C, Class A3 | 2.080 | 02-15-23 | 11,870,000 | 11,869,717 | ||||
Coinstar Funding LLC | ||||||||
Series 2017-1A, Class A2 (B) | 5.216 | 04-25-47 | 12,954,900 | 13,475,467 | ||||
ContiMortgage Home Equity Loan Trust | ||||||||
Series 1995-2, Class A5 | 8.100 | 08-15-25 | 96,598 | 65,336 | ||||
Countrywide Asset-Backed Certificates | ||||||||
Trust | ||||||||
Series 2004-10, Class AF5B | 4.820 | 02-25-35 | 2,135,035 | 2,129,937 | ||||
DB Master Finance LLC | ||||||||
Series 2015-1A, Class A2II (B) | 3.980 | 02-20-45 | 17,261,875 | 17,567,755 | ||||
Series 2017-1A, Class A2I (B) | 3.629 | 11-20-47 | 4,570,000 | 4,611,418 | ||||
Series 2017-1A, Class A2II (B) | 4.030 | 11-20-47 | 5,360,000 | 5,400,629 | ||||
Discover Card Execution Note Trust | ||||||||
Series 2017-A6, Class A6 | 1.880 | 02-15-23 | 44,970,000 | 44,676,229 | ||||
Domino’s Pizza Master Issuer LLC | ||||||||
Series 2017-1A, Class A23 (B) | 4.118 | 07-25-47 | 20,748,000 | 21,278,319 | ||||
Driven Brands Funding LLC | ||||||||
Series 2015-1A, Class A2 (B) | 5.216 | 07-20-45 | 19,869,500 | 20,592,750 | ||||
EquiFirst Mortgage Loan Trust | ||||||||
Series 2004-3, Class M3 (1 month | ||||||||
LIBOR + 0.975%) (A) | 2.304 | 12-25-34 | 4,170,018 | 4,164,596 | ||||
FOCUS Brands Funding LLC | ||||||||
Series 2017-1A, Class A2I (B) | 3.857 | 04-30-47 | 4,064,575 | 4,123,877 | ||||
Ford Credit Auto Owner Trust | ||||||||
Series 2014-1, Class B (B) | 2.410 | 11-15-25 | 5,380,000 | 5,398,007 | ||||
Series 2016-B, Class A4 | 1.520 | 08-15-21 | 3,125,000 | 3,090,401 | ||||
Series 2016-C, Class A4 | 1.400 | 02-15-22 | 10,305,000 | 10,131,954 | ||||
Series 2017-A, Class A3 | 1.670 | 06-15-21 | 7,926,000 | 7,893,548 | ||||
Series 2017-B, Class A4 | 1.870 | 09-15-22 | 4,580,000 | 4,537,080 | ||||
Series 2017-C, Class A4 | 2.160 | 03-15-23 | 12,420,000 | 12,417,987 | ||||
Ford Credit Floorplan Master Owner | ||||||||
Trust | ||||||||
Series 2017-2, Class A1 | 2.160 | 09-15-22 | 19,895,000 | 19,870,241 | ||||
GM Financial Consumer Automobile | ||||||||
Receivables Trust | ||||||||
Series 2017-2A, Class A3 (B) | 1.860 | 12-16-21 | 17,780,000 | 17,708,014 | ||||
GSAA Trust | ||||||||
Series 2005-10, Class M3 (1 month | ||||||||
LIBOR + 0.550%) (A) | 1.879 | 06-25-35 | 2,394,781 | 2,382,504 | ||||
Hertz Vehicle Financing II LP | ||||||||
Series 2016-3A, Class A (B) | 2.270 | 07-25-20 | 7,265,000 | 7,228,613 | ||||
Hilton Grand Vacations Trust | ||||||||
Series 2017-AA, Class A (B) | 2.660 | 12-26-28 | 8,652,650 | 8,611,397 | ||||
Honda Auto Receivables Owner Trust | ||||||||
Series 2016-2, Class A4 | 1.620 | 08-15-22 | 20,625,000 | 20,488,743 | ||||
Series 2016-3, Class A4 | 1.330 | 11-18-22 | 19,450,000 | 19,195,964 | ||||
Series 2016-4, Class A4 | 1.360 | 01-18-23 | 11,550,000 | 11,380,585 | ||||
Series 2017-1, Class A3 | 1.720 | 07-21-21 | 18,540,000 | 18,472,761 | ||||
Series 2017-2, Class A4 | 1.870 | 09-15-23 | 5,000,000 | 4,953,058 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK BOND FUND 39 |
Rate (%) | Maturity date | Par value^ | Value | |||||
Asset backed securities (continued) | ||||||||
Series 2017-3, Class A4 | 1.980 | 11-20-23 | 6,475,000 | $6,444,647 | ||||
Huntington Auto Trust | ||||||||
Series 2016-1, Class A4 | 1.930 | 04-15-22 | 21,380,000 | 21,279,215 | ||||
Hyundai Auto Receivables Trust | ||||||||
Series 2017-A, Class A3 | 1.760 | 08-16-21 | 15,555,000 | 15,493,110 | ||||
Mercedes-Benz Auto Receivables Trust | ||||||||
Series 2015-1, Class A4 | 1.750 | 12-15-21 | 20,360,000 | 20,312,077 | ||||
Merrill Lynch Mortgage Investors Trust | ||||||||
Series 2004-OPT1, Class A1A (1 | ||||||||
month LIBOR + 0.520%) (A) | 1.849 | 06-25-35 | 3,210,212 | 3,114,297 | ||||
Series 2005-WMC1, Class M1 (1 | ||||||||
month LIBOR + 0.750%) (A) | 2.078 | 09-25-35 | 2,594,359 | 2,516,503 | ||||
MMAF Equipment Finance LLC | ||||||||
Series 2017-B, Class A3 (B) | 2.210 | 10-17-22 | 15,903,000 | 15,861,126 | ||||
MVW Owner Trust | ||||||||
Series 2014-1A, Class A (B) | 2.250 | 09-22-31 | 878,280 | 867,615 | ||||
Series 2015-1A, Class A (B) | 2.520 | 12-20-32 | 2,975,836 | 2,967,217 | ||||
Nissan Auto Receivables Owner Trust | ||||||||
Series 2015-B, Class A4 | 1.790 | 01-17-22 | 1,900,000 | 1,893,234 | ||||
Series 2016-B, Class A4 | 1.540 | 10-17-22 | 4,480,000 | 4,424,693 | ||||
Series 2017-A, Class A3 | 1.740 | 08-16-21 | 12,155,000 | 12,101,714 | ||||
Series 2017-B, Class A4 | 1.950 | 10-16-23 | 13,955,000 | 13,849,169 | ||||
RAAC Series Trust | ||||||||
Series 2006-SP4, Class M1 (1 month | ||||||||
LIBOR + 0.340%) (A) | 1.669 | 11-25-36 | 3,795,000 | 3,763,938 | ||||
Renaissance Home Equity Loan Trust | ||||||||
Series 2005-2, Class AF4 | 4.934 | 08-25-35 | 8,404,788 | 8,561,434 | ||||
Sierra Timeshare Receivables | ||||||||
Funding LLC | ||||||||
Series 2014-2A, Class A (A)(B) | 2.050 | 06-20-31 | 1,385,078 | 1,382,097 | ||||
SoFi Professional Loan Program LLC | ||||||||
Series 2017-E, Class A2A (B) | 1.860 | 11-26-40 | 11,185,775 | 11,146,645 | ||||
Sonic Capital LLC | ||||||||
Series 2016-1A, Class A2 (B) | 4.472 | 05-20-46 | 3,673,446 | 3,681,270 | ||||
Structured Asset Investment Loan Trust | ||||||||
Series 2005-1, Class M2 (1 month | ||||||||
LIBOR + 0.720%) (A)(B) | 2.049 | 02-25-35 | 5,559,605 | 5,547,175 | ||||
Structured Asset Securities Corp. | ||||||||
Mortgage Loan Trust | ||||||||
Series 2005-2XS, Class 2A2 (1 month | ||||||||
LIBOR + 1.500%) (A) | 2.742 | 02-25-35 | 2,767,199 | 2,723,178 | ||||
SunTrust Auto Receivables Trust | ||||||||
Series 2015-1A, Class A4 (B) | 1.780 | 01-15-21 | 9,485,000 | 9,467,015 | ||||
Synchrony Credit Card Master Note Trust | ||||||||
Series 2016-1, Class A | 2.040 | 03-15-22 | 16,539,000 | 16,558,920 | ||||
Taco Bell Funding LLC | ||||||||
Series 2016-1A, Class A2I (B) | 3.832 | 05-25-46 | 9,336,813 | 9,480,226 | ||||
Series 2016-1A, Class A2II (B) | 4.377 | 05-25-46 | 1,975,000 | 2,036,087 | ||||
TAL Advantage V LLC | ||||||||
Series 2014-1A, Class A (B) | 3.510 | 02-22-39 | 3,028,125 | 3,022,633 | ||||
Towd Point Mortgage Trust | ||||||||
Series 2015-1, Class A5 (A)(B) | 3.518 | 10-25-53 | 4,885,000 | 5,033,428 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK BOND FUND 40 |
Yield* (%) | Maturity date | Par value^ | Value | |||||
Asset backed securities (continued) | ||||||||
Series 2015-2, Class 1M2 (A)(B) | 3.488 | 11-25-60 | 10,695,000 | $11,104,456 | ||||
Series 2016-5, Class A1 (A)(B) | 2.500 | 10-25-56 | 12,514,207 | 12,455,691 | ||||
Series 2017-1, Class A1 (A)(B) | 2.750 | 10-25-56 | 4,348,671 | 4,357,785 | ||||
Series 2017-2, Class A1 (A)(B) | 2.750 | 04-25-57 | 4,788,341 | 4,794,296 | ||||
Toyota Auto Receivables Owner Trust | ||||||||
Series 2016-B, Class A4 | 1.520 | 08-16-21 | 5,615,000 | 5,566,160 | ||||
Series 2016-C, Class A4 | 1.320 | 11-15-21 | 5,597,000 | 5,518,280 | ||||
Series 2017-A, Class A3 | 1.730 | 02-16-21 | 16,000,000 | 15,959,142 | ||||
Series 2017-B, Class A3 | 1.760 | 07-15-21 | 22,590,000 | 22,476,686 | ||||
Series 2017-C, Class A4 | 1.980 | 12-15-22 | 12,680,000 | 12,591,227 | ||||
VSE VOI Mortgage LLC | ||||||||
Series 2017-A, Class A (B) | 2.330 | 03-20-35 | 11,256,705 | 11,127,122 | ||||
Wendys Funding LLC | ||||||||
Series 2015-1A, Class A2I (B) | 3.371 | 06-15-45 | 32,228,280 | 32,382,653 | ||||
Series 2015-1A, Class A2II (B) | 4.080 | 06-15-45 | 2,058,000 | 2,102,803 | ||||
Westgate Resorts LLC | ||||||||
Series 2014-1A, Class A (B) | 2.150 | 12-20-26 | 3,994,563 | 3,979,083 | ||||
Series 2014-1A, Class B (B) | 3.250 | 12-20-26 | 1,996,543 | 1,997,789 | ||||
Series 2015-1A, Class A (B) | 2.750 | 05-20-27 | 1,581,143 | 1,581,931 | ||||
Series 2015-2A, Class B (B) | 4.000 | 07-20-28 | 3,463,333 | 3,477,747 | ||||
Series 2016-1A, Class A (B) | 3.500 | 12-20-28 | 2,560,847 | 2,574,340 | ||||
Series 2017-1A, Class A (B) | 3.050 | 12-20-30 | 7,347,699 | 7,339,504 | ||||
World Omni Auto Receivables Trust | ||||||||
Series 2016-A, Class A3 | 1.770 | 09-15-21 | 22,740,000 | 22,688,896 | ||||
Series 2017-B, Class A3 | 1.950 | 02-15-23 | 6,020,000 | 5,979,443 | ||||
Shares | Value | |||||||
Preferred securities 0.3% | $37,911,285 | |||||||
(Cost $36,485,277) | ||||||||
Consumer staples 0.0% | 2,565,005 | |||||||
Food and staples retailing 0.0% | ||||||||
Ocean Spray Cranberries, Inc., 6.250% (B) | 28,284 | 2,565,005 | ||||||
Financials 0.1% | 16,162,823 | |||||||
Banks 0.1% | ||||||||
GMAC Capital Trust I (3 month LIBOR + 5.785%), 7.201% (A) | 374,059 | 9,770,421 | ||||||
Regions Financial Corp., 6.375% | 139,454 | 3,524,003 | ||||||
Wells Fargo & Company, Series L, 7.500% | 2,139 | 2,868,399 | ||||||
Utilities 0.2% | 19,183,457 | |||||||
Multi-utilities 0.2% | ||||||||
Dominion Energy, Inc., 6.750% | 258,872 | 13,691,740 | ||||||
DTE Energy Company, 6.500% | 97,700 | 5,491,717 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK BOND FUND 41 |
Rate (%) | Maturity date | Par value^ | Value | |||||
Short-term investments 3.1% | $346,325,000 | |||||||
(Cost $346,325,000) | ||||||||
U.S. Government Agency 2.2% | 249,682,000 | |||||||
Federal Agricultural Mortgage Corp. | ||||||||
Discount Note | 0.950 | 12-01-17 | 12,828,000 | 12,828,000 | ||||
Federal Farm Credit Bank Discount Note | 0.950 | 12-01-17 | 19,720,000 | 19,720,000 | ||||
Federal Home Loan Bank Discount Note | 0.700 | 12-01-17 | 39,852,000 | 39,852,000 | ||||
Federal Home Loan Bank Discount Note | 0.750 | 12-01-17 | 19,715,000 | 19,715,000 | ||||
Federal Home Loan Bank Discount Note | 0.900 | 12-01-17 | 157,567,000 | 157,567,000 | ||||
Par value^ | Value | |||||||
Repurchase agreement 0.9% | 96,643,000 | |||||||
Barclays Tri-Party Repurchase Agreement | ||||||||
dated 11-30-17 at 1.020% to be | ||||||||
repurchased at $88,521,508 on | ||||||||
12-1-17, collateralized by | ||||||||
$11,333,000 U.S. Treasury Bonds, | ||||||||
2.500% due 5-15-46 (valued at | ||||||||
$10,628,494, including interest), | ||||||||
$71,348,500 U.S. Treasury Notes, | ||||||||
2.250% due 2-15-27 (valued at | ||||||||
$71,040,426, including interest), | ||||||||
$1,963,600 U.S. Treasury Inflation | ||||||||
Indexed Bonds, 1.000% - 2.125% | ||||||||
due 2-15-41 to 2-15-46 (valued at | ||||||||
$2,104,924, including interest) and | ||||||||
$6,475,100 U.S. Treasury Inflation | ||||||||
Indexed Notes, 0.375% - 1.375% due | ||||||||
1-15-20 to 1-15-27 (valued at | ||||||||
$6,518,159, including interest) | 88,519,000 | 88,519,000 | ||||||
Repurchase Agreement with State Street | ||||||||
Corp. dated 11-30-17 at 0.340% to | ||||||||
be repurchased at $8,124,077 on | ||||||||
12-1-17, collateralized by $7,890,000 | ||||||||
U.S. Treasury Notes, 3.625% due | ||||||||
2-15-20 (valued at $8,287,388, | ||||||||
including interest) | 8,124,000 | 8,124,000 | ||||||
Total investments (Cost $11,400,792,287) 101.2% | $11,508,820,101 | |||||||
Other assets and liabilities, net (1.2%) | (137,417,022) | |||||||
Total net assets 100.0% | $11,371,403,079 |
The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund. | ||
^All par values are denominated in U.S. dollars unless otherwise indicated. | ||
Currency Abbreviations | ||
BRL | Brazilian Real | |
Security Abbreviations and Legend | ||
CMT | Constant Maturity Treasury | |
IO | Interest-Only Security - (Interest Tranche of Stripped Mortgage Pool). Rate shown is the annualized yield at the end of the period. | |
ISDAFIX | International Swaps and Derivatives Association Fixed Interest Rate Swap Rate | |
LIBOR | London Interbank Offered Rate | |
(A) | Variable rate obligation. The coupon rate shown represents the rate at period end. |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK BOND FUND 42 |
(B) | These securities are exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be resold, normally to qualified institutional buyers, in transactions exempt from registration. Rule 144A securities amounted to $2,503,384,652 or 22.0% of the fund’s net assets as of 11-30-17. | |
(C) | Non-income producing - Issuer is in default. | |
(D) | Security is valued using significant unobservable inputs. | |
(E) | Perpetual bonds have no stated maturity date. Date shown as maturity date is next call date. | |
(F) | Term loans are variable rate obligations. The coupon rate shown represents the rate at period end. | |
* | 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. | |
At 11-30-17, the aggregate cost of investments for federal income tax purposes was $11,426,934,111. Net unrealized appreciation aggregated to $81,885,990, of which $161,421,416 related to gross unrealized appreciation and $79,535,426 related to gross unrealized depreciation. |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK BOND FUND 43 |
Financial statements
STATEMENT OF ASSETS AND LIABILITIES 11-30-17 (unaudited)
Assets | ||||||||||||||||||||||||||||||
Investments, at value (Cost $11,400,792,287) | $11,508,820,101 | |||||||||||||||||||||||||||||
Cash | 204,207 | |||||||||||||||||||||||||||||
Receivable for investments sold | 11,946,708 | |||||||||||||||||||||||||||||
Receivable for delayed delivery securities sold | 235,895,016 | |||||||||||||||||||||||||||||
Receivable for fund shares sold | 44,213,727 | |||||||||||||||||||||||||||||
Dividends and interest receivable | 81,694,435 | |||||||||||||||||||||||||||||
Other receivables and prepaid expenses | 1,070,105 | |||||||||||||||||||||||||||||
Total assets | 11,883,844,299 | |||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||
Payable for investments purchased | 25,243,787 | |||||||||||||||||||||||||||||
Payable for delayed delivery securities purchased | 473,369,646 | |||||||||||||||||||||||||||||
Payable for fund shares repurchased | 11,121,593 | |||||||||||||||||||||||||||||
Distributions payable | 670,298 | |||||||||||||||||||||||||||||
Payable to affiliates | ||||||||||||||||||||||||||||||
Accounting and legal services fees | 450,801 | |||||||||||||||||||||||||||||
Transfer agent fees | 414,058 | |||||||||||||||||||||||||||||
Distribution and service fees | 259,057 | |||||||||||||||||||||||||||||
Trustees' fees | 4,728 | |||||||||||||||||||||||||||||
Other liabilities and accrued expenses | 907,252 | |||||||||||||||||||||||||||||
Total liabilities | 512,441,220 | |||||||||||||||||||||||||||||
Net assets | $11,371,403,079 | |||||||||||||||||||||||||||||
Net assets consist of | ||||||||||||||||||||||||||||||
Paid-in capital | $11,326,561,188 | |||||||||||||||||||||||||||||
Accumulated distributions in excess of net investment income | (6,123,996 | ) | ||||||||||||||||||||||||||||
Accumulated net realized gain (loss) on investments and foreign currency transactions | (57,093,077 | ) | ||||||||||||||||||||||||||||
Net unrealized appreciation (depreciation) on investments and translation of assets and liabilities in foreign currencies | 108,058,964 | |||||||||||||||||||||||||||||
Net assets | $11,371,403,079 | |||||||||||||||||||||||||||||
Net asset value per share | ||||||||||||||||||||||||||||||
Based on net asset values and shares outstanding-the fund has an unlimited number of shares authorized with no par value | ||||||||||||||||||||||||||||||
Class A ($1,537,810,009 ÷ 96,745,434 shares)1 | $15.90 | |||||||||||||||||||||||||||||
Class B ($13,537,835 ÷ 851,770 shares)1 | $15.89 | |||||||||||||||||||||||||||||
Class C ($294,555,566 ÷ 18,529,748 shares)1 | $15.90 | |||||||||||||||||||||||||||||
Class I ($2,075,239,410 ÷ 130,540,773 shares) | $15.90 | |||||||||||||||||||||||||||||
Class R2 ($71,983,920 ÷ 4,523,583 shares) | $15.91 | |||||||||||||||||||||||||||||
Class R4 ($31,485,839 ÷ 1,977,986 shares) | $15.92 | |||||||||||||||||||||||||||||
Class R6 ($5,246,213,598 ÷ 329,458,873 shares) | $15.92 | |||||||||||||||||||||||||||||
Class NAV ($2,100,576,902 ÷ 131,975,157 shares) | $15.92 | |||||||||||||||||||||||||||||
Maximum offering price per share | ||||||||||||||||||||||||||||||
Class A (net asset value per share ÷ 96%)2 | $16.56 |
1 | Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. | ||||||||||||||||
2 | On single retail sales of less than $100,000. On sales of $100,000 or more and on group sales the offering price is reduced. |
STATEMENT OF OPERATIONS For the six months ended 11-30-17 (unaudited)
Investment income | ||||||||||||||||||||||||
Interest | $190,566,020 | |||||||||||||||||||||||
Dividends | 1,201,711 | |||||||||||||||||||||||
Less foreign taxes withheld | (9,730 | ) | ||||||||||||||||||||||
Total investment income | 191,758,001 | |||||||||||||||||||||||
Expenses | ||||||||||||||||||||||||
Investment management fees | 18,853,813 | |||||||||||||||||||||||
Distribution and service fees | 4,051,490 | |||||||||||||||||||||||
Accounting and legal services fees | 1,247,847 | |||||||||||||||||||||||
Transfer agent fees | 3,769,234 | |||||||||||||||||||||||
Trustees' fees | 74,034 | |||||||||||||||||||||||
State registration fees | 337,616 | |||||||||||||||||||||||
Printing and postage | 333,361 | |||||||||||||||||||||||
Professional fees | 95,572 | |||||||||||||||||||||||
Custodian fees | 703,145 | |||||||||||||||||||||||
Other | 356,139 | |||||||||||||||||||||||
Total expenses | 29,822,251 | |||||||||||||||||||||||
Less expense reductions | (2,185,451 | ) | ||||||||||||||||||||||
Net expenses | 27,636,800 | |||||||||||||||||||||||
Net investment income | 164,121,201 | |||||||||||||||||||||||
Realized and unrealized gain (loss) | ||||||||||||||||||||||||
Net realized gain (loss) on | ||||||||||||||||||||||||
Investments and foreign currency transactions | 27,454,209 | |||||||||||||||||||||||
27,454,209 | ||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) of | ||||||||||||||||||||||||
Investments and translation of assets and liabilities in foreign currencies | (43,030,122 | ) | ||||||||||||||||||||||
(43,030,122 | ) | |||||||||||||||||||||||
Net realized and unrealized loss | (15,575,913 | ) | ||||||||||||||||||||||
Increase in net assets from operations | $148,545,288 |
STATEMENTS OF CHANGES IN NET ASSETS
Six months ended 11-30-17 | Year ended 5-31-17 | ||||||||||||||||||||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||||||||||||||||||
Increase (decrease) in net assets | |||||||||||||||||||||||||||||||||||||||||||||
From operations | |||||||||||||||||||||||||||||||||||||||||||||
Net investment income | $164,121,201 | $165,268,873 | |||||||||||||||||||||||||||||||||||||||||||
Net realized gain | 27,454,209 | 1,285,991 | |||||||||||||||||||||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) | (43,030,122 | ) | 74,918,915 | ||||||||||||||||||||||||||||||||||||||||||
Increase in net assets resulting from operations | 148,545,288 | 241,473,779 | |||||||||||||||||||||||||||||||||||||||||||
Distributions to shareholders | |||||||||||||||||||||||||||||||||||||||||||||
From net investment income | |||||||||||||||||||||||||||||||||||||||||||||
Class A | (23,338,902 | ) | (56,573,672 | ) | |||||||||||||||||||||||||||||||||||||||||
Class B | (178,483 | ) | (466,887 | ) | |||||||||||||||||||||||||||||||||||||||||
Class C | (3,547,511 | ) | (7,535,610 | ) | |||||||||||||||||||||||||||||||||||||||||
Class I | (82,654,276 | ) | (99,600,806 | ) | |||||||||||||||||||||||||||||||||||||||||
Class R2 | (1,008,904 | ) | (1,593,207 | ) | |||||||||||||||||||||||||||||||||||||||||
Class R4 | (489,632 | ) | (400,617 | ) | |||||||||||||||||||||||||||||||||||||||||
Class R6 | (30,733,465 | ) | (6,314,425 | ) | |||||||||||||||||||||||||||||||||||||||||
Class NAV | (34,350,100 | ) | (6,871,857 | ) | |||||||||||||||||||||||||||||||||||||||||
Total distributions | (176,301,273 | ) | (179,357,081 | ) | |||||||||||||||||||||||||||||||||||||||||
From fund share transactions | 1,730,800,830 | 3,651,788,840 | |||||||||||||||||||||||||||||||||||||||||||
Issued in reorganization | — | 2,175,087,127 | |||||||||||||||||||||||||||||||||||||||||||
Total from fund share transactions | 1,730,800,830 | 5,826,875,967 | |||||||||||||||||||||||||||||||||||||||||||
Total increase | 1,703,044,845 | 5,888,992,665 | |||||||||||||||||||||||||||||||||||||||||||
Net assets | |||||||||||||||||||||||||||||||||||||||||||||
Beginning of period | 9,668,358,234 | 3,779,365,569 | |||||||||||||||||||||||||||||||||||||||||||
End of period | $11,371,403,079 | $9,668,358,234 | |||||||||||||||||||||||||||||||||||||||||||
Undistributed (accumulated distributions in excess of) net investment income | ($6,123,996 | ) | $6,056,076 |
Financial highlights
Class A Shares Period ended | 11-30-17 | 1 | 5-31-17 | 5-31-16 | 5-31-15 | 5-31-14 | 5-31-13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per share operating performance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | $15.93 | $15.79 | $16.06 | $16.26 | $16.37 | $15.86 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income2 | 0.23 | 0.45 | 0.47 | 0.53 | 0.61 | 0.63 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.01 | ) | 0.18 | (0.23 | ) | (0.05 | ) | 0.02 | 0.61 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total from investment operations | 0.22 | 0.63 | 0.24 | 0.48 | 0.63 | 1.24 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less distributions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net investment income | (0.25 | ) | (0.49 | ) | (0.51 | ) | (0.63 | ) | (0.67 | ) | (0.70 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net realized gain | — | — | — | (0.05 | ) | (0.07 | ) | (0.03 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total distributions | (0.25 | ) | (0.49 | ) | (0.51 | ) | (0.68 | ) | (0.74 | ) | (0.73 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, end of period | $15.90 | $15.93 | $15.79 | $16.06 | $16.26 | $16.37 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total return (%)3,4 | 1.37 | 5 | 4.07 | 1.59 | 3.02 | 4.06 | 7.93 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (in millions) | $1,538 | $1,492 | $1,904 | $1,740 | $1,411 | $1,434 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses before reductions | 0.83 | 6 | 0.89 | 0.93 | 0.94 | 0.98 | 1.03 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses including reductions | 0.79 | 6 | 0.83 | 0.87 | 0.89 | 0.92 | 0.98 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income | 2.85 | 6 | 2.83 | 3.01 | 3.25 | 3.80 | 3.84 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio turnover (%) | 37 | 98 | 7 | 56 | 66 | 77 | 72 |
1 | Six months ended 11-30-17. Unaudited. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | Based on average daily shares outstanding. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | Does not reflect the effect of sales charges, if any. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | Not annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | Annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7 | Excludes merger activity. |
Class B Shares Period ended | 11-30-17 | 1 | 5-31-17 | 5-31-16 | 5-31-15 | 5-31-14 | 5-31-13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per share operating performance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | $15.93 | $15.79 | $16.06 | $16.26 | $16.37 | $15.86 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income2 | 0.17 | 0.34 | 0.36 | 0.42 | 0.50 | 0.51 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.02 | ) | 0.18 | (0.23 | ) | (0.05 | ) | 0.02 | 0.61 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total from investment operations | 0.15 | 0.52 | 0.13 | 0.37 | 0.52 | 1.12 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less distributions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net investment income | (0.19 | ) | (0.38 | ) | (0.40 | ) | (0.52 | ) | (0.56 | ) | (0.58 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net realized gain | — | — | — | (0.05 | ) | (0.07 | ) | (0.03 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total distributions | (0.19 | ) | (0.38 | ) | (0.40 | ) | (0.57 | ) | (0.63 | ) | (0.61 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, end of period | $15.89 | $15.93 | $15.79 | $16.06 | $16.26 | $16.37 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total return (%)3,4 | 0.95 | 5 | 3.35 | 0.88 | 2.31 | 3.34 | 7.18 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (in millions) | $14 | $16 | $23 | $28 | $33 | $44 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses before reductions | 1.53 | 6 | 1.59 | 1.63 | 1.64 | 1.68 | 1.73 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses including reductions | 1.49 | 6 | 1.53 | 1.57 | 1.59 | 1.62 | 1.68 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income | 2.16 | 6 | 2.14 | 2.32 | 2.57 | 3.11 | 3.15 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio turnover (%) | 37 | 98 | 7 | 56 | 66 | 77 | 72 |
1 | Six months ended 11-30-17. Unaudited. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | Based on average daily shares outstanding. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | Does not reflect the effect of sales charges, if any. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | Not annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | Annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7 | Excludes merger activity. |
Class C Shares Period ended | 11-30-17 | 1 | 5-31-17 | 5-31-16 | 5-31-15 | 5-31-14 | 5-31-13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per share operating performance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | $15.93 | $15.79 | $16.06 | $16.26 | $16.37 | $15.87 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income2 | 0.17 | 0.34 | 0.36 | 0.41 | 0.49 | 0.51 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.01 | ) | 0.18 | (0.23 | ) | (0.04 | ) | 0.03 | 0.60 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total from investment operations | 0.16 | 0.52 | 0.13 | 0.37 | 0.52 | 1.11 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less distributions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net investment income | (0.19 | ) | (0.38 | ) | (0.40 | ) | (0.52 | ) | (0.56 | ) | (0.58 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net realized gain | — | — | — | (0.05 | ) | (0.07 | ) | (0.03 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total distributions | (0.19 | ) | (0.38 | ) | (0.40 | ) | (0.57 | ) | (0.63 | ) | (0.61 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, end of period | $15.90 | $15.93 | $15.79 | $16.06 | $16.26 | $16.37 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total return (%)3,4 | 1.01 | 5 | 3.35 | 0.88 | 2.31 | 3.34 | 7.11 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (in millions) | $295 | $299 | $310 | $250 | $162 | $195 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses before reductions | 1.53 | 6 | 1.59 | 1.63 | 1.64 | 1.68 | 1.72 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses including reductions | 1.49 | 6 | 1.53 | 1.57 | 1.59 | 1.62 | 1.67 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income | 2.15 | 6 | 2.14 | 2.31 | 2.53 | 3.10 | 3.12 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio turnover (%) | 37 | 98 | 7 | 56 | 66 | 77 | 72 |
1 | Six months ended 11-30-17. Unaudited. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | Based on average daily shares outstanding. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | Does not reflect the effect of sales charges, if any. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | Not annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | Annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7 | Excludes merger activity. |
Class I Shares Period ended | 11-30-17 | 1 | 5-31-17 | 5-31-16 | 5-31-15 | 5-31-14 | 5-31-13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per share operating performance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | $15.93 | $15.80 | $16.06 | $16.26 | $16.37 | $15.87 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income2 | 0.25 | 0.50 | 0.52 | 0.57 | 0.66 | 0.68 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.01 | ) | 0.17 | (0.22 | ) | (0.04 | ) | 0.02 | 0.61 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total from investment operations | 0.24 | 0.67 | 0.30 | 0.53 | 0.68 | 1.29 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less distributions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net investment income | (0.27 | ) | (0.54 | ) | (0.56 | ) | (0.68 | ) | (0.72 | ) | (0.76 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net realized gain | — | — | — | (0.05 | ) | (0.07 | ) | (0.03 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total distributions | (0.27 | ) | (0.54 | ) | (0.56 | ) | (0.73 | ) | (0.79 | ) | (0.79 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, end of period | $15.90 | $15.93 | $15.80 | $16.06 | $16.26 | $16.37 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total return (%)3 | 1.52 | 4 | 4.33 | 1.97 | 3.35 | 4.40 | 8.27 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (in millions) | $2,075 | $5,385 | $1,367 | $793 | $302 | $277 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses before reductions | 0.52 | 5 | 0.57 | 0.61 | 0.63 | 0.66 | 0.65 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses including reductions | 0.48 | 5 | 0.51 | 0.56 | 0.57 | 0.60 | 0.60 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income | 3.13 | 5 | 3.15 | 3.32 | 3.53 | 4.11 | 4.19 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio turnover (%) | 37 | 98 | 6 | 56 | 66 | 77 | 72 |
1 | Six months ended 11-30-17. Unaudited. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | Based on average daily shares outstanding. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | Not annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | Annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | Excludes merger activity. |
Class R2 Shares Period ended | 11-30-17 | 1 | 5-31-17 | 5-31-16 | 5-31-15 | 5-31-14 | 5-31-13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per share operating performance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | $15.95 | $15.81 | $16.08 | $16.27 | $16.38 | $15.87 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income2 | 0.22 | 0.44 | 0.46 | 0.51 | 0.60 | 0.62 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.02 | ) | 0.18 | (0.23 | ) | (0.02 | ) | 0.02 | 0.64 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total from investment operations | 0.20 | 0.62 | 0.23 | 0.49 | 0.62 | 1.26 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less distributions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net investment income | (0.24 | ) | (0.48 | ) | (0.50 | ) | (0.63 | ) | (0.66 | ) | (0.72 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net realized gain | — | — | — | (0.05 | ) | (0.07 | ) | (0.03 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total distributions | (0.24 | ) | (0.48 | ) | (0.50 | ) | (0.68 | ) | (0.73 | ) | (0.75 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, end of period | $15.91 | $15.95 | $15.81 | $16.08 | $16.27 | $16.38 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total return (%)3 | 1.26 | 4 | 3.97 | 1.55 | 2.97 | 4.01 | 8.09 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (in millions) | $72 | $56 | $56 | $39 | $7 | $2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses before reductions | 0.92 | 5 | 0.98 | 1.03 | 0.98 | 1.05 | 1.03 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses including reductions | 0.88 | 5 | 0.92 | 0.97 | 0.93 | 0.99 | 0.98 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income | 2.77 | 5 | 2.75 | 2.92 | 3.16 | 3.76 | 3.88 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio turnover (%) | 37 | 98 | 6 | 56 | 66 | 77 | 72 |
1 | Six months ended 11-30-17. Unaudited. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | Based on average daily shares outstanding. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | Not annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | Annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | Excludes merger activity. |
Class R4 Shares Period ended | 11-30-17 | 1 | 5-31-17 | 5-31-16 | 5-31-15 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per share operating performance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | $15.95 | $15.81 | $16.08 | $16.15 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income3 | 0.24 | 0.49 | 0.51 | 0.06 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.01 | ) | 0.17 | (0.22 | ) | (0.03 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total from investment operations | 0.23 | 0.66 | 0.29 | 0.03 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less distributions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net investment income | (0.26 | ) | (0.52 | ) | (0.56 | ) | (0.10 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total distributions | (0.26 | ) | (0.52 | ) | (0.56 | ) | (0.10 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, end of period | $15.92 | $15.95 | $15.81 | $16.08 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total return (%)4 | 1.44 | 5 | 4.25 | 1.86 | 0.18 | 5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (in millions) | $31 | $29 | — | 6 | — | 6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses before reductions | 0.78 | 7 | 0.82 | 0.82 | 0.80 | 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses including reductions | 0.64 | 7 | 0.66 | 0.66 | 0.64 | 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income | 3.01 | 7 | 3.09 | 3.24 | 2.21 | 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio turnover (%) | 37 | 98 | 9 | 56 | 66 | 8 |
1 | Six months ended 11-30-17. Unaudited. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | The inception date for Class R4 shares is 3-27-15. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | Based on average daily shares outstanding. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | Total returns would have been lower had certain expenses not been reduced during the period. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | Not annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | Less than $500,000. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7 | Annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
8 | The portfolio turnover is shown for the period from 6-1-14 to 5-31-15. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
9 | Excludes merger activity. |
Class R6 Shares Period ended | 11-30-17 | 1 | 5-31-17 | 5-31-16 | 5-31-15 | 5-31-14 | 5-31-13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per share operating performance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | $15.96 | $15.81 | $16.08 | $16.28 | $16.38 | $15.87 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income2 | 0.26 | 0.52 | 0.54 | 0.59 | 0.68 | 0.70 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.02 | ) | 0.19 | (0.23 | ) | (0.04 | ) | 0.03 | 0.61 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total from investment operations | 0.24 | 0.71 | 0.31 | 0.55 | 0.71 | 1.31 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less distributions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net investment income | (0.28 | ) | (0.56 | ) | (0.58 | ) | (0.70 | ) | (0.74 | ) | (0.77 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net realized gain | — | — | — | (0.05 | ) | (0.07 | ) | (0.03 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total distributions | (0.28 | ) | (0.56 | ) | (0.58 | ) | (0.75 | ) | (0.81 | ) | (0.80 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, end of period | $15.92 | $15.96 | $15.81 | $16.08 | $16.28 | $16.38 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total return (%)3 | 1.51 | 4 | 4.58 | 2.02 | 3.45 | 4.58 | 8.42 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (in millions) | $5,246 | $529 | $118 | $93 | $43 | $3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses before reductions | 0.43 | 5 | 0.48 | 0.52 | 0.54 | 0.56 | 0.57 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses including reductions | 0.39 | 5 | 0.41 | 0.44 | 0.46 | 0.50 | 0.52 | �� | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income | 3.31 | 5 | 3.27 | 3.45 | 3.66 | 4.26 | 4.30 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio turnover (%) | 37 | 98 | 6 | 56 | 66 | 77 | 72 |
1 | Six months ended 11-30-17. Unaudited. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | Based on average daily shares outstanding. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | Not annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | Annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | Excludes merger activity. |
Class NAV Shares Period ended | 11-30-17 | 1 | 5-31-17 | 5-31-16 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per share operating performance | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | $15.95 | $15.81 | $15.78 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income3 | 0.26 | 0.51 | 0.41 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.01 | ) | 0.19 | 0.06 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total from investment operations | 0.25 | 0.70 | 0.47 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less distributions | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net investment income | (0.28 | ) | (0.56 | ) | (0.44 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total distributions | (0.28 | ) | (0.56 | ) | (0.44 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, end of period | $15.92 | $15.95 | $15.81 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total return (%)4 | 1.58 | 5 | 4.51 | 3.03 | 5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios and supplemental data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (in millions) | $2,101 | $1,862 | $2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios (as a percentage of average net assets): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses before reductions | 0.42 | 6 | 0.46 | 0.50 | 6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses including reductions | 0.38 | 6 | 0.41 | 0.44 | 6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income | 3.27 | 6 | 3.28 | 3.44 | 6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio turnover (%) | 37 | 98 | 8 | 56 | 7 |
1 | Six months ended 11-30-17. Unaudited. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | The inception date for Class NAV shares is 8-31-15. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | Based on average daily shares outstanding. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | Not annualized. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | Annualized. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7 | The portfolio turnover is shown for the period from 6-1-15 to 5-31-16. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
8 | Excludes merger activity. |
Note 1 — Organization
John Hancock Bond Fund (the fund) is a series of John Hancock Sovereign Bond Fund (the Trust), an open-end management investment company organized as a Massachusetts business trust and registered under the Investment Company Act of 1940, as amended (the 1940 Act). The investment objective of the fund is to seek a high level of current income consistent with prudent investment risk.
The fund may offer multiple classes of shares. The shares currently offered are detailed in the Statement of assets and liabilities. Class A and Class C shares are offered to all investors. Class B shares are closed to new investors. Class I shares are offered to institutions and certain investors. Class R2 and Class R4 shares are available only to certain retirement plans. Class R6 shares are available only to certain retirement plans, institutions and other investors. Class NAV shares are offered to John Hancock affiliated funds of funds and certain 529 plans. Shareholders of each class have exclusive voting rights to matters that affect that class. The distribution and service fees, if any, and transfer agent fees for each class may differ. Class B shares convert to Class A shares eight years after purchase.
Note 2 — Significant accounting policies
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (US GAAP), which require management to make certain estimates and assumptions as of the date of the financial statements. Actual results could differ from those estimates and those differences could be significant. The fund qualifies as an investment company under Topic 946 of Accounting Standards Codification of US GAAP.
Events or transactions occurring after the end of the fiscal period through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the fund:
Security valuation. Investments are stated at value as of the scheduled close of regular trading on the New York Stock Exchange (NYSE), normally at 4:00 p.m., Eastern Time. In case of emergency or other disruption resulting in the NYSE not opening for trading or the NYSE closing at a time other than the regularly scheduled close, the net asset value (NAV) may be determined as of the regularly scheduled close of the NYSE pursuant to the fund's Valuation Policies and Procedures.
In order to value the securities, the fund uses the following valuation techniques: Debt obligations are valued based on the evaluated prices provided by an independent pricing vendor or from broker-dealers. Independent pricing vendors utilize matrix pricing which takes into account factors such as institutional-size trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics and other market data, as well as broker supplied prices. Equity securities held by the fund are typically valued at the last sale price or official closing price on the exchange or principal market where the security trades. In the event there were no sales during the day or closing prices are not available, the securities are valued using the last available bid price.
In certain instances, the Pricing Committee may determine to value equity securities using prices obtained from another exchange or market if trading on the exchange or market on which prices are typically obtained did not open for trading as scheduled, or if trading closed earlier than scheduled, and trading occurred as normal on another exchange or market.
Other portfolio securities and assets, for which reliable market quotations are not readily available, are valued at fair value as determined in good faith by the fund's Pricing Committee following procedures established by the Board of Trustees. The frequency with which these fair valuation procedures are used cannot be predicted and fair value of securities may differ significantly from the value that would have been used had a ready market for such securities existed.
The fund uses a three-tier hierarchy to prioritize the pricing assumptions, referred to as inputs, used in valuation techniques to measure fair value. Level 1 includes securities valued using quoted prices in active markets for identical securities. Level 2 includes securities valued using other significant observable inputs. Observable inputs may include quoted prices for similar securities, interest rates, prepayment speeds and credit risk. Prices for securities valued using these inputs are received from independent pricing vendors and brokers and are based on an evaluation of the inputs described. Level 3 includes securities valued using significant unobservable inputs when market prices are not readily available or reliable, including the fund's
own assumptions in determining the fair value of investments. Factors used in determining value may include market or issuer specific events or trends, changes in interest rates and credit quality. The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Changes in valuation techniques and related inputs may result in transfers into or out of an assigned level within the disclosure hierarchy.
The following is a summary of the values by input classification of the fund's investments as of November 30, 2017, by major security category or type:
Total value at 11-30-17 | Level 1 quoted price | Level 2 significant observable inputs | Level 3 significant unobservable inputs | |
Investments in securities: | ||||
Assets | ||||
U.S. Government and Agency obligations | $3,888,161,350 | — | $3,888,161,350 | — |
Foreign government obligations | 56,863,173 | — | 56,863,173 | — |
Corporate bonds | 5,027,736,316 | — | 5,027,736,316 | — |
Convertible bonds | 9,206,141 | — | 9,206,141 | — |
Capital preferred securities | 19,359,926 | — | 19,359,926 | — |
Term loans | 10,461,481 | — | 10,461,481 | — |
Collateralized mortgage obligations | 932,781,490 | — | 932,781,490 | — |
Asset backed securities | 1,180,013,939 | — | 1,180,013,939 | — |
Preferred securities | 37,911,285 | $35,346,280 | 2,565,005 | — |
Short-term investments | 346,325,000 | — | 346,325,000 | — |
Total investments in securities | $11,508,820,101 | $35,346,280 | $11,473,473,821 | — |
Repurchase agreements. The fund may enter into repurchase agreements. When the fund enters into a repurchase agreement, it receives collateral that is held in a segregated account by the fund's custodian, or for tri-party repurchase agreements, collateral is held at a third-party custodian bank in a segregated account for the benefit of the fund. The collateral amount is marked-to-market and monitored on a daily basis to ensure that the collateral held is in an amount not less than the principal amount of the repurchase agreement plus any accrued interest. Collateral received by the fund for repurchase agreements is disclosed in the Fund's investments as part of the caption related to the repurchase agreement.
Repurchase agreements are typically governed by the terms and conditions of the Master Repurchase Agreement and/or Global Master Repurchase Agreement (collectively, MRA). Upon an event of default, the non-defaulting party may close out all transactions traded under the MRA and net amounts owed. Absent an event of default, assets and liabilities resulting from repurchase agreements are not offset in the Statement of assets and liabilities. In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the collateral value may decline or the counterparty may have insufficient assets to pay back claims resulting from close-out of the transactions.
Stripped securities. Stripped securities are financial instruments structured to separate principal and interest cash flows so that one class receives principal payments from the underlying assets (PO or principal only), while the other class receives the interest cash flows (IO or interest only). Both PO and IO investments represent an interest in the cash flows of an underlying stripped security. If the underlying assets experience greater than anticipated prepayments of principal, the fund may fail to fully recover its initial investment in an IO security. The market value of these securities can be extremely volatile in response to changes in interest rates or prepayments on the underlying securities. In addition, these securities present additional credit risk such that the fund may not receive all or part of its principal or interest payments because the borrower or issuer has defaulted on its obligation.
Security transactions and related investment income. Investment security transactions are accounted for on a trade date plus one basis for daily NAV calculations. However, for financial reporting purposes, investment transactions are reported on trade date. Interest income is accrued as earned. Interest income includes coupon interest and amortization/
accretion of premiums/discounts on debt securities. Debt obligations may be placed in a non-accrual status and related interest income may be reduced by stopping current accruals and writing off interest receivable when the collection of all or a portion of interest has become doubtful. Dividend income is recorded on the ex-date, except for dividends of foreign securities where the dividend may not be known until after the ex-date. In those cases, dividend income, net of withholding taxes, is recorded when the fund becomes aware of the dividends. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds from litigation.
When-issued/delayed-delivery securities. The fund may purchase or sell debt securities on a when-issued or delayed-delivery basis, or in a "To Be Announced" (TBA) or "forward commitment" transaction, with delivery or payment to occur at a later date beyond the normal settlement period. At the time a fund enters into a commitment to purchase or sell a security, the transaction is recorded and the value of the security is reflected in the fund's NAV. The price of such security and the date that the security will be delivered and paid for are fixed at the time the transaction is negotiated. The value of the security may vary with market fluctuations. No interest accrues to the portfolio until settlement takes place. At the time that the fund enters into this type of transaction, the fund is required to have sufficient cash and/or liquid securities to cover its commitments.
Foreign currency translation. Assets, including investments and liabilities denominated in foreign currencies, are translated into U.S. dollar values each day at the prevailing exchange rate. Purchases and sales of securities, income and expenses are translated into U.S. dollars at the prevailing exchange rate on the date of the transaction. The effect of changes in foreign currency exchange rates on the value of securities is reflected as a component of the realized and unrealized gains (losses) on investments.
Funds that invest internationally generally carry more risk than funds that invest strictly in U.S. securities. Risks can result from differences in economic and political conditions, regulations, market practices (including higher transaction costs), accounting standards and other factors. Foreign investments are also subject to a decline in the value of a foreign currency versus the U.S. dollar, which reduces the dollar value of securities denominated in that currency.
Foreign taxes. The fund may be subject to withholding tax on income and/or capital gains or repatriation taxes imposed by certain countries in which the fund invests. Taxes are accrued based upon investment income, realized gains or unrealized appreciation.
Line of credit. The fund may have the ability to borrow from banks for temporary or emergency purposes, including meeting redemption requests that otherwise might require the untimely sale of securities. Pursuant to the fund's custodian agreement, the custodian may loan money to the fund to make properly authorized payments. The fund is obligated to repay the custodian for any overdraft, including any related costs or expenses. The custodian may have a lien, security interest or security entitlement in any fund property that is not otherwise segregated or pledged, to the extent of any overdraft, and to the maximum extent permitted by law.
Effective June 29, 2017, the fund and other affiliated funds have entered into a syndicated line of credit agreement with Citibank, N.A. as the administrative agent that enables them to participate in a $750 million unsecured committed line of credit. Excluding commitments designated for a certain fund and subject to the needs of all other affiliated funds, the fund can borrow up to an aggregate commitment amount of $500 million, subject to asset coverage and other limitations as specified in the agreement. A commitment fee payable at the end of each calendar quarter, based on the average daily unused portion of the line of credit, is charged to each participating fund based on a combination of fixed and asset based allocations and is reflected in Other expenses on the Statement of operations. Prior to June 29, 2017, the fund had a similar agreement that enabled it to participate in a $1 billion unsecured committed line of credit. For the six months ended November 30, 2017 the fund had no borrowings under either line of credit. Commitment fees for the six months ended November 30, 2017 were $16,105.
Expenses. Within the John Hancock group of funds complex, expenses that are directly attributable to an individual fund are allocated to such fund. Expenses that are not readily attributable to a specific fund are allocated among all funds in an equitable manner, taking into consideration, among other things, the nature and type of expense and the fund's relative net
assets. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Class allocations. Income, common expenses and realized and unrealized gains (losses) are determined at the fund level and allocated daily to each class of shares based on the net assets of the class. Class-specific expenses, such as distribution and service fees, if any, and transfer agent fees, for all classes, are charged daily at the class level based on the net assets of each class and the specific expense rates applicable to each class.
Federal income taxes. The fund intends to continue to qualify as a regulated investment company by complying with the applicable provisions of the Internal Revenue Code and will not be subject to federal income tax on taxable income that is distributed to shareholders. Therefore, no federal income tax provision is required.
For federal income tax purposes, as of May 31, 2017, the fund has a short-term capital loss carryforward of $18,104,019 and a long-term capital loss carryforward of $21,103,377 available to offset future net realized capital gains. These carryforwards do not expire. Due to certain Internal Revenue Code rules, utilization of the capital loss carryforwards may be limited in future years.
As of May 31, 2017, the fund had no uncertain tax positions that would require financial statement recognition, derecognition or disclosure. The fund's federal tax returns are subject to examination by the Internal Revenue Service for a period of three years.
Distribution of income and gains. Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-date. The fund generally declares dividends daily and pays them monthly. Capital gain distributions, if any, are typically distributed annually.
Distributions paid by the fund with respect to each class of shares are calculated in the same manner, at the same time and in the same amount, except for the effect of class level expenses that may be applied differently to each class.
Such distributions, on a tax basis, are determined in conformity with income tax regulations, which may differ from US GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences, if any, will reverse in a subsequent period. Book-tax differences are primarily attributable to amortization and accretion on debt securities and merger related transactions.
Note 3 — Guarantees and indemnifications
Under the Trust's organizational documents, its Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust, including the fund. Additionally, in the normal course of business, the fund enters into contracts with service providers that contain general indemnification clauses. The fund's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the fund that have not yet occurred. The risk of material loss from such claims is considered remote.
Note 4 — Fees and transactions with affiliates
John Hancock Advisers, LLC (the Advisor) serves as investment advisor for the fund. John Hancock Funds, LLC (the Distributor), an affiliate of the Advisor, serves as principal underwriter of the fund. The Advisor and the Distributor are indirect, wholly owned subsidiaries of Manulife Financial Corporation (MFC).
Management fee. The fund has an investment management agreement with the Advisor under which the fund pays a daily management fee to the Advisor, equivalent on an annual basis, to the sum of: (a) 0.450% of the first $500 million of the fund's aggregate daily net assets, (b) 0.425% of the next $500 million of the fund's aggregate daily net assets, (c) 0.400% of the next $1 billion of the fund's aggregate daily net assets, (d) 0.350% of the next $500 million of the fund's aggregate daily net assets, (e) 0.300% of the fund's aggregate daily net assets in excess of $2.5 billion. Prior to October 1, 2017, the fund had an investment management agreement with the Advisor under which the fund paid a daily management fee to the Advisor, equivalent on an annual basis, to the sum of: (a) 0.500% of the first $500 million of the fund's aggregate daily net
assets, (b) 0.475% of the next $500 million of the fund's aggregate daily net assets, (c) 0.450% of the next $500 million of the fund's aggregate daily net assets, (d) 0.450% of the next $500 million of the fund's aggregate daily net assets, (e) 0.400% of the next $500 million of the fund's aggregate daily net assets; and (f) 0.350% of the fund's aggregate daily net assets in excess of $2.5 billion. Aggregate net assets include the net assets of the fund and certain assets of Income Allocation Fund, a series of John Hancock Funds II, as defined in the advisory agreement. The Advisor has a subadvisory agreement with John Hancock Asset Management a division of Manulife Asset Management (US) LLC, an indirectly owned subsidiary of MFC and an affiliate of the Advisor. The fund is not responsible for payment of the subadvisory fees.
The Advisor has contractually agreed to waive a portion of its management fee and/or reimburse expenses for certain funds of the John Hancock group of funds complex, including the fund (the participating portfolios). This waiver is based upon aggregate net assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund. During the six months ended November 30, 2017, this waiver amounted to 0.01% of the fund's average net assets. This arrangement may be amended or terminated at any time by the Advisor upon notice to the fund and with the approval of the Board of Trustees.
Prior to October 1, 2017, the Advisor had contractually agreed to waive a portion of its management fee and/or reimburse or pay operating expenses of the fund in order to reduce the total annual fund operating expenses by 0.05% of the fund's average daily net assets. On October 1, 2017, the advisory agreement was reduced by 0.05% to replace this waiver.
Prior to October 1, 2017 the Advisor had contractually agreed to waive and/or reimburse all class-specific expenses for Class R6 shares of the fund to the extent they exceeded 0.00% of average net assets.
For the six months ended November 30, 2017, the expense reductions amounted to the following:
Class | Expense reduction | Class | Expense reduction | |
Class A | $313,462 | Class R4 | $6,199 | |
Class B | 3,193 | Class R6 | 189,794 | |
Class C | 62,008 | Class NAV | 401,300 | |
Class I | 1,180,596 | Total | $2,170,307 | |
Class R2 | 13,755 |
Expenses waived or reimbursed in the current fiscal period are not subject to recapture in future fiscal periods.
The investment management fees, including the impact of the waivers and reimbursements as described above, incurred for the six months ended November 30, 2017 were equivalent to a net annual effective rate of 0.32% of the fund's average daily net assets.
Accounting and legal services. Pursuant to a service agreement, the fund reimburses the Advisor for all expenses associated with providing the administrative, financial, legal, accounting and recordkeeping services to the fund, including the preparation of all tax returns, periodic reports to shareholders and regulatory reports, among other services. These expenses are allocated to each share class based on its relative net assets at the time the expense was incurred. These accounting and legal services fees incurred for the six months ended November 30, 2017 amounted to an annual rate of 0.02% of the fund's average daily net assets.
Distribution and service plans. The fund has a distribution agreement with the Distributor. The fund has adopted distribution and service plans with respect to Class A, Class B, Class C, Class R2 and Class R4 shares pursuant to Rule 12b-1 under the 1940 Act, to pay the Distributor for services provided as the distributor of shares of the fund. The fund may pay up
to the following contractual rates of distribution and service fees under these arrangements, expressed as an annual percentage of average daily net assets for each class of the fund's shares:
Class | Rule 12b-1 fee | Service fee | Class | Rule 12b-1 fee | Service fee | |
Class A | 0.30% | — | Class R2 | 0.25% | 0.25% | |
Class B | 1.00% | — | Class R4 | 0.25% | 0.10% | |
Class C | 1.00% | — |
The fund's Distributor has contractually agreed to waive 0.10% of Rule12b-1 fees for Class R4 shares. The current waiver agreement expires on September 30, 2018, unless renewed by mutual agreement of the fund and the Distributor based upon a determination that this is appropriate under the circumstances at the time. This contractual waiver amounted to $15,144 for Class R4 shares for the six months ended November 30, 2017.
Sales charges. Class A shares are assessed up-front sales charges, which resulted in payments to the Distributor amounting to $3,557,247 for the six months ended November 30, 2017. Of this amount, $490,404 was retained and used for printing prospectuses, advertising, sales literature and other purposes, $2,990,246 was paid as sales commissions to broker-dealers and $76,597 was paid as sales commissions to sales personnel of Signator Investors, Inc., a broker-dealer affiliate of the Advisor.
Class A, Class B and Class C shares may be subject to contingent deferred sales charges (CDSCs). Certain Class A shares that are acquired through purchases of $1 million or more and are redeemed within one year of purchase are subject to a 1.00% sales charge. Class B shares that are redeemed within six years of purchase are subject to CDSCs, at declining rates, beginning at 5.00%. Class C shares that are redeemed within one year of purchase are subject to a 1.00% CDSC. CDSCs are applied to the lesser of the current market value at the time of redemption or the original purchase cost of the shares being redeemed. Proceeds from CDSCs are used to compensate the Distributor for providing distribution-related services in connection with the sale of these shares. During the six months ended November 30, 2017, CDSCs received by the Distributor amounted to $6.833, $9,634 and $26,328 for Class A, Class B and Class C shares, respectively.
Transfer agent fees. The John Hancock Group of Funds has a complex-wide transfer agent agreement with John Hancock Signature Services, Inc. (Signature Services), an affiliate of the Advisor. The transfer agent fees paid to Signature Services are determined based on the cost to Signature Services (Signature Services Cost) of providing recordkeeping services. It also includes out-of-pocket expenses, including payments made to third-parties for recordkeeping services provided to their clients who invest in one or more John Hancock funds. In addition, Signature Services Cost may be reduced by certain fees that Signature Services receives in connection with retirement and small accounts. Signature Services Cost is calculated monthly and allocated, as applicable, to five categories of share classes: Retail Share and Institutional Share Classes of Non-Municipal Bond Funds, Class R6 Shares, Retirement Share Classes and Municipal Bond Share Classes. Within each of these categories, the applicable costs are allocated to the affected John Hancock affiliated funds and/or classes, based on the relative average daily net assets.
Class level expenses. Class level expenses for the six months ended November 30, 2017 were:
Class | Distribution and service fees | Transfer agent fees |
Class A | $2,270,613 | $843,645 |
Class B | 74,793 | 8,343 |
Class C | 1,489,021 | 165,982 |
Class I | — | 2,635,362 |
Class R2 | 164,312 | 4,126 |
Class R4 | 52,751 | 1,842 |
Class R6 | — | 109,934 |
Total | $4,051,490 | $3,769,234 |
Trustee expenses. The fund compensates each Trustee who is not an employee of the Advisor or its affiliates. The costs of paying Trustee compensation and expenses are allocated to the fund based on its net assets relative to other funds within the John Hancock group of funds complex.
Note 5 — Fund share transactions
Transactions in fund shares for the six months ended November 30, 2017 and for the year ended May 31, 2017 were as follows:
Six months ended 11-30-17 | Year ended 5-31-17 | |||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||
Class A shares | ||||||||||||||||||||||||||
Sold | 11,286,679 | $180,155,173 | 34,092,817 | $541,956,959 | ||||||||||||||||||||||
Distributions reinvested | 1,384,549 | 22,090,017 | 3,379,141 | 53,729,834 | ||||||||||||||||||||||
Repurchased | (9,560,426 | ) | (152,590,017 | ) | (64,381,575 | ) | (1,018,201,732 | ) | ||||||||||||||||||
Net increase (decrease) | 3,110,802 | $49,655,173 | (26,909,617 | ) | ($422,514,939 | ) | ||||||||||||||||||||
Class B shares | ||||||||||||||||||||||||||
Sold | 9,116 | $145,510 | 52,907 | $841,349 | ||||||||||||||||||||||
Distributions reinvested | 10,283 | 164,057 | 25,942 | 412,599 | ||||||||||||||||||||||
Repurchased | (190,235 | ) | (3,036,884 | ) | (481,926 | ) | (7,658,790 | ) | ||||||||||||||||||
Net decrease | (170,836 | ) | ($2,727,317 | ) | (403,077 | ) | ($6,404,842 | ) | ||||||||||||||||||
Class C shares | ||||||||||||||||||||||||||
Sold | 1,915,413 | $30,581,326 | 5,313,071 | $84,561,671 | ||||||||||||||||||||||
Distributions reinvested | 212,529 | 3,390,831 | 441,776 | 7,023,679 | ||||||||||||||||||||||
Repurchased | (2,369,081 | ) | (37,816,141 | ) | (6,605,907 | ) | (104,723,743 | ) | ||||||||||||||||||
Net decrease | (241,139 | ) | ($3,843,984 | ) | (851,060 | ) | ($13,138,393 | ) | ||||||||||||||||||
Class I shares | ||||||||||||||||||||||||||
Sold | 97,996,985 | $1,564,860,492 | 287,716,488 | $4,554,434,157 | ||||||||||||||||||||||
Distributions reinvested | 5,034,683 | 80,372,931 | 6,047,097 | 95,884,815 | ||||||||||||||||||||||
Repurchased | (310,470,391 | ) | (4,962,044,354 | ) | (42,354,138 | ) | (670,004,434 | ) | ||||||||||||||||||
Net increase (decrease) | (207,438,723 | ) | ($3,316,810,931 | ) | 251,409,447 | $3,980,314,538 | ||||||||||||||||||||
Class R2 shares | ||||||||||||||||||||||||||
Sold | 1,750,046 | $27,961,503 | 1,694,679 | $26,908,315 | ||||||||||||||||||||||
Distributions reinvested | 57,163 | 913,127 | 94,466 | 1,504,103 | ||||||||||||||||||||||
Repurchased | (803,573 | ) | (12,846,567 | ) | (1,813,840 | ) | (28,798,157 | ) | ||||||||||||||||||
Net increase (decrease) | 1,003,636 | $16,028,063 | (24,695 | ) | ($385,739 | ) | ||||||||||||||||||||
Class R4 shares | ||||||||||||||||||||||||||
Sold | 239,038 | $3,824,857 | 1,944,292 | $30,402,882 | ||||||||||||||||||||||
Distributions reinvested | 30,613 | 489,033 | 25,093 | 397,094 | ||||||||||||||||||||||
Repurchased | (130,946 | ) | (2,091,605 | ) | (149,518 | ) | (2,363,031 | ) | ||||||||||||||||||
Net increase | 138,705 | $2,222,285 | 1,819,867 | $28,436,945 | ||||||||||||||||||||||
Class R6 shares | ||||||||||||||||||||||||||
Sold | 300,977,713 | $4,817,815,714 | 7,249,897 | $114,511,357 | ||||||||||||||||||||||
Issued in reorganization (Note 9) | — | — | 21,559,231 | 342,414,487 | ||||||||||||||||||||||
Distributions reinvested | 1,919,815 | 30,631,480 | 388,087 | 6,177,491 | ||||||||||||||||||||||
Repurchased | (6,588,252 | ) | (105,282,181 | ) | (3,497,257 | ) | (55,036,889 | ) | ||||||||||||||||||
Net increase | 296,309,276 | $4,743,165,013 | 25,699,958 | $408,066,446 |
Six months ended 11-30-17 | Year ended 5-31-17 | |||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||
Class NAV shares | ||||||||||||||||||||||||||
Sold | 17,059,899 | $272,794,117 | 1,517,213 | $24,106,036 | ||||||||||||||||||||||
Issued in reorganization (Note 9) | — | — | 115,422,599 | 1,832,672,640 | ||||||||||||||||||||||
Distributions reinvested | 2,150,320 | 34,350,099 | 430,922 | 6,865,378 | ||||||||||||||||||||||
Repurchased | (4,001,016 | ) | (64,031,688 | ) | (700,907 | ) | (11,142,103 | ) | ||||||||||||||||||
Net increase | 15,209,203 | $243,112,528 | 116,669,827 | $1,852,501,951 | ||||||||||||||||||||||
Total net increase | 107,920,924 | $1,730,800,830 | 367,410,650 | $5,826,875,967 |
Affiliates of the fund owned 100% of Class NAV shares on November 30, 2017. Such concentration of shareholders' capital could have a material effect on the fund if such shareholders redeem from the fund.
Note 6 — Purchase and sale of securities
Purchases and sales of securities, other than short-term securities and U.S. Treasury obligations, amounted to $3,093,053,876 and $1,611,664,478, respectively, for the six months ended November 30, 2017. Purchases and sales of U.S. Treasury obligations aggregated $2,530,551,617 and $2,073,507,002, respectively, for the six months ended November 30, 2017.
Note 7 — Investment by affiliated funds
Certain investors in the fund are affiliated funds that are managed by the Advisor and its affiliates. The affiliated funds do not invest in the fund for the purpose of exercising management or control; however, this investment may represent a significant portion of the fund's net assets. At November 30, 2017, funds within the John Hancock group of funds complex held 18.5% of the fund's net assets. The following affiliated fund owned 5% or more of the fund's net assets:
Fund | Affiliated concentration |
John Hancock Funds II Multimanager Lifestyle Balanced Portfolio | 7.1% |
Note 8 — Interfund trading
The fund is permitted to purchase or sell securities from or to certain other affiliated funds, as set forth in Rule 17a-7 of the 1940 Act, under specified conditions outlined in procedures adopted by the Board of Trustees of the Trust. The procedures have been designed to ensure that any purchase or sale of securities by the fund from or to another fund that is or could be considered an affiliate complies with Rule 17a-7 of the 1940 Act. Further, as defined under the procedures, each transaction is effected at the current market price. Pursuant to these procedures, for the six months ended November 30, 2017, the fund engaged in purchases amounting to $51,327,886.
Note 9 — Reorganization
On April 6, 2017, the shareholders of John Hancock Funds II Active Bond Fund (the Acquired Fund) voted to approve an Agreement and Plan of Reorganization (the Agreement) which provided for an exchange of shares of the John Hancock Bond Fund (the Acquiring Fund) with a value equal to the net assets transferred.
The Agreement provided for (a) the acquisition of all the assets, subject to all of the liabilities, of the Acquired Fund in exchange for shares of the Acquiring Fund with a value equal to the net assets transferred; (b) the liquidation of the Acquired Fund; and (c) the distribution to the Acquired Fund's shareholders of such Acquiring Fund's shares. The reorganization was intended to consolidate the Acquired Fund with a fund with a similar investment objective and achieve economies of scale. As a result of the reorganization, the Acquiring Fund is the legal and accounting survivor.
Based on the opinion of tax counsel, the reorganization qualified as a tax-free reorganization for federal income tax purposes with no gain or loss recognized by the Acquired Fund or its shareholders. Thus, the investments were transferred to
the Acquiring Fund at the Acquired Fund's identified cost. All distributable amounts of net income and realized gains from the Acquired Fund were distributed prior to the reorganization. In addition, the expenses of the reorganization were borne by the Acquired Fund. The effective time of the reorganization occurred immediately after the close of regularly scheduled trading on the New York Stock Exchange (NYSE) on April 21, 2017. The following outlines the reorganization:
Acquiring Fund | Acquired Fund | Net asset value of the Acquired Fund | Appreciation of the Acquired Fund's investment | Shares redeemed by the Acquired Fund | Shares issued by the Acquiring Fund | Acquiring Fund net assets prior to combination | Acquiring Fund total net assets after combination |
JHF Bond Fund | JHF II Active Bond Fund | $2,175,087,127 | $44,407,828 | 216,660,147 | 136,981,830 | $7,008,919,409 | $9,184,006,536 |
See Note 5 for capital shares issued in connection with the above referenced reorganizations.
Continuation of Investment Advisory and Subadvisory Agreements
Evaluation of Advisory and Subadvisory Agreements by the Board of Trustees
This section describes the evaluation by the Board of Trustees (the Board) of John Hancock Sovereign Bond Fund (the Trust) of the Advisory Agreement (the Advisory Agreement) with John Hancock Advisers, LLC (the Advisor) and the Subadvisory Agreement (the Subadvisory Agreement) with John Hancock Asset Management a division of Manulife Asset Management (US) LLC (the Subadvisor), for John Hancock Bond Fund. The Advisory Agreement and Subadvisory Agreement are collectively referred to as the Agreements. Prior to the June 19-22, 2017 in-person meeting at which the Agreements were approved, the Board also discussed and considered information regarding the proposed continuation of the Agreements at an in-person meeting held on May 22-24, 2017.
Approval of Advisory and Subadvisory Agreements
At in-person meetings held on June 19-22, 2017, the Board, including the Trustees who are not parties to any Agreement or considered to be interested persons of the Trust under the Investment Company Act of 1940, as amended (the 1940 Act) (the Independent Trustees), reapproved for an annual period the continuation of the Advisory Agreement between the Trust and the Advisor and the Subadvisory Agreement between the Advisor and the Subadvisor with respect to the fund.
In considering the Advisory Agreement and the Subadvisory Agreement, the Board received in advance of the meetings a variety of materials relating to the fund, the Advisor and the Subadvisor, including comparative performance, fee and expense information for a peer group of similar funds prepared by an independent third-party provider of fund data, performance information for an applicable benchmark index; and, with respect to the Subadvisor, comparative performance information for comparably managed accounts, as applicable, and other information provided by the Advisor and the Subadvisor regarding the nature, extent and quality of services provided by the Advisor and the Subadvisor under their respective Agreements, as well as information regarding the Advisor's revenues and costs of providing services to the fund and any compensation paid to affiliates of the Advisor. At the meetings at which the renewal of the Advisory Agreement and Subadvisory Agreement are considered, particular focus is given to information concerning fund performance, comparability of fees and total expenses, and profitability. However, the Board notes that the evaluation process with respect to the Advisor and the Subadvisor is an ongoing one. In this regard, the Board also took into account discussions with management and information provided to the Board (including its various committees) at prior meetings with respect to the services provided by the Advisor and the Subadvisor to the fund, including quarterly performance reports prepared by management containing reviews of investment results and prior presentations from the Subadvisor with respect to the fund. The information received and considered by the Board in connection with the May and June meetings and throughout the year was both written and oral. The Board noted the affiliation of the Subadvisor with the Advisor, noting any potential conflicts of interest. The Board also considered the nature, quality, and extent of non-advisory services, if any, to be provided to the fund by the Advisor's affiliates, including distribution services. The Board considered the Advisory Agreement and Subadvisory Agreement separately in the course of its review. In doing so, the Board noted the respective roles of the Advisor and Subadvisor in providing services to the fund.
Throughout the process, the Board asked questions of and requested additional information from management. The Board is assisted by counsel for the Trust and the Independent Trustees are also separately assisted by independent legal counsel throughout the process. The Independent Trustees also received a memorandum from their independent legal counsel discussing the legal standards for their consideration of the proposed continuation of the Agreements and discussed the proposed continuation of the Agreements in private sessions with their independent legal counsel at which no representatives of management were present.
Approval of Advisory Agreement
In approving the Advisory Agreement with respect to the fund, the Board, including the Independent Trustees, considered a variety of factors, including those discussed below. The Board also considered other factors (including conditions and trends prevailing generally in the economy, the securities markets, and the industry) and did not treat any single factor as
determinative, and each Trustee may have attributed different weights to different factors. The Board's conclusions may be based in part on its consideration of the advisory and subadvisory arrangements in prior years and on the Board's ongoing regular review of fund performance and operations throughout the year.
Nature, extent, and quality of services . Among the information received by the Board from the Advisor relating to the nature, extent, and quality of services provided to the fund, the Board reviewed information provided by the Advisor relating to its operations and personnel, descriptions of its organizational and management structure, and information regarding the Advisor's compliance and regulatory history, including its Form ADV. The Board also noted that on a regular basis it receives and reviews information from the Trust's Chief Compliance Officer (CCO) regarding the fund's compliance policies and procedures established pursuant to Rule 38a-1 under the 1940 Act. The Board observed that the scope of services provided by the Advisor, and of the undertakings required of the Advisor in connection with those services, including maintaining and monitoring its own and the fund's compliance programs, risk management programs, liquidity management programs and cybersecurity programs, had expanded over time as a result of regulatory, market and other developments. The Board considered that the Advisor is responsible for the management of the day-to-day operations of the fund, including, but not limited to, general supervision of and coordination of the services provided by the Subadvisor, and is also responsible for monitoring and reviewing the activities of the Subadvisor and third-party service providers. The Board also considered the significant risks assumed by the Advisor in connection with the services provided to the fund including entrepreneurial risk in sponsoring new funds and ongoing risks including investment, operational, enterprise, litigation, regulatory and compliance risk with respect to all funds.
In considering the nature, extent, and quality of the services provided by the Advisor, the Trustees also took into account their knowledge of the Advisor's management and the quality of the performance of the Advisor's duties, through Board meetings, discussions and reports during the preceding year and through each Trustee's experience as a Trustee of the Trust and of the other trusts in the John Hancock group of funds complex (the John Hancock Fund Complex).
In the course of their deliberations regarding the Advisory Agreement, the Board considered, among other things:
(a) | the skills and competency with which the Advisor has in the past managed the Trust's affairs and its subadvisory relationship, the Advisor's oversight and monitoring of the Subadvisor's investment performance and compliance programs, such as the Subadvisor's compliance with fund policies and objectives, review of brokerage matters, including with respect to trade allocation and best execution and the Advisor's timeliness in responding to performance issues; |
(b) | the background, qualifications and skills of the Advisor's personnel; |
(c) | the Advisor's compliance policies and procedures and its responsiveness to regulatory changes and fund industry developments; |
(d) | the Advisor's administrative capabilities, including its ability to supervise the other service providers for the fund; |
(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 intitiatives 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. |
The Board concluded that the Advisor may reasonably be expected to continue to provide a high quality of services under the Advisory Agreement with respect to the fund.
Investment performance . In considering the fund's performance, the Board noted that it reviews at its regularly scheduled meetings information about the fund's performance results. In connection with the consideration of the Advisory Agreement, the Board:
(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. |
The Board noted that while it found the data provided by the independent third-party generally useful it recognized its limitations, including in particular that the data may vary depending on the end date selected and the results of the performance comparisons may vary depending on the selection of the peer group. The Board noted that the fund outperformed its benchmark index and peer group average for the one-, three-, five- and ten-year periods ended December 31, 2016. The Board took into account management's discussion of the fund's performance, including the favorable performance relative to the benchmark index and peer group for the one-, three-, five- and ten-year periods. The Board concluded that the fund's performance has generally been in line with or generally outperformed the historical performance of comparable funds and the fund's benchmark index.
Fees and expenses . The Board reviewed comparative information prepared by an independent third-party provider of fund data, including, among other data, the fund's contractual and net management fees (and subadvisory fees, to the extent available) and total expenses as compared to similarly situated investment companies deemed to be comparable to the fund in light of the nature, extent and quality of the management and advisory and subadvisory services provided by the Advisor and the Subadvisor. The Board considered the fund's ranking within a smaller group of peer funds chosen by the independent third-party provider, as well as the fund's ranking within a broader group of funds. In comparing the fund's contractual and net management fees to those of comparable funds, the Board noted that such fees include both advisory and administrative costs. The Board noted that net management fees and net total expenses for the fund are higher than the peer group median.
The Board took into account management's discussion of the fund's expenses. The Board also took into account management's discussion with respect to the overall management fee, the fees of the Subadvisor, including the amount of the advisory fee retained by the Advisor after payment of the subadvisory fee, in each case in light of the services for those amounts and the risks undertaken by the Advisor. The Board also noted that the Advisor pays the subadvisory fee. In addition, the Board took into account that management had agreed to implement an overall fee waiver across the complex, which is discussed further below. The Board also noted actions taken over the past several years to reduce the fund's operating expenses. The Board also noted that, in addition, the Advisor is currently waiving fees and/or reimbursing expenses with respect to the fund and that the fund has breakpoints in its contractual management fee schedule that reduces management fees as assets increase. The Board reviewed information provided by the Advisor concerning the investment advisory fee charged by the Advisor or one of its advisory affiliates to other clients (including other funds in the John Hancock Fund Complex) having similar investment mandates, if any. The Board considered any differences between the Advisor's and Subadvisor's services to the fund and the services they provide to other comparable clients or funds. The Board concluded that the advisory fee paid with respect to the fund is reasonable in light of the nature, extent and quality of the services provided to the fund under the Advisory Agreement.
Profitability/Fall out benefits . In considering the costs of the services to be provided and the profits to be realized by the Advisor and its affiliates from the Advisor's relationship with the Trust, the Board:
(a) | reviewed financial information of the Advisor; |
(b) | reviewed and considered information presented by the Advisor regarding the net profitability to the Advisor and its affiliates with respect to the fund; |
(c) | received and reviewed profitability information with respect to the John Hancock Fund Complex as a whole and with respect to the fund; |
(d) | received information with respect to the Advisor's allocation methodologies used in preparing the profitability data and considered that the Advisor hired an independent third-party consultant to provide an analysis of the Advisor's allocation methodologies; |
(e) | considered that the John Hancock insurance companies that are affiliates of the Advisor, as shareholders of the Trust directly or through their separate accounts, receive certain tax credits or deductions relating to foreign taxes paid and dividends received by certain funds of the Trust and noted that these tax benefits, which are not available to participants in qualified retirement plans under applicable income tax law, are reflected in the profitability information reviewed by the Board; |
(f) | considered that the Advisor also provides administrative services to the fund on a cost basis pursuant to an administrative services agreement; |
(g) | noted that affiliates of the Advisor provide transfer agency services and distribution services to the fund, and that the fund's distributor also receives Rule 12b-1 payments to support distribution of the fund; |
(h) | noted that the fund's Subadvisor is an affiliate of the Advisor; |
(i) | noted that the Advisor also derives reputational and other indirect benefits from providing advisory services to the fund; |
(j) | noted that the subadvisory fee for the fund is paid by the Advisor; |
(k) | considered the Advisor's ongoing costs and expenditures necessary to improve services, meet new regulatory and compliance requirements, and adapt to other challenges impacting the fund industry; and |
(l) | considered that the Advisor should be entitled to earn a reasonable level of profits in exchange for the level of services it provides to the fund and the risks that it assumes as Advisor, including entrepreneurial, operational, reputational, litigation and regulatory risk. |
Based upon its review, the Board concluded that the level of profitability, if any, of the Advisor and its affiliates from their relationship with the fund was reasonable and not excessive.
Economies of scale . In considering the extent to which economies of scale would be realized as the fund grows and whether fee levels reflect these economies of scale for the benefit of fund shareholders, the Board:
(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. |
Approval of Subadvisory Agreement
In making its determination with respect to approval of the Subadvisory Agreement, the Board reviewed:
(1) | information relating to the Subadvisor's business, 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; and |
(3) | the subadvisory fee for the fund, including any breakpoints, and to the extent available, comparable fee information prepared by an independent third party provider of fund data. |
Nature, extent, and quality of services . With respect to the services provided by the Subadvisor, the Board received information provided to the Board by the Subadvisor, including the Subadvisor's Form ADV, as well as took into account information presented throughout the past year. The Board considered the Subadvisor's current level of staffing and its overall resources, as well as received information relating to the Subadvisor's compensation program. The Board reviewed the Subadvisor's history and investment experience, as well as information regarding the qualifications, background, and responsibilities of the Subadvisor's investment and compliance personnel who provide services to the fund. The Board also considered, among other things, the Subadvisor's compliance program and any disciplinary history. The Board also considered the Subadvisor's risk assessment and monitoring process. The Board reviewed the Subadvisor's regulatory history, including whether it was involved in any regulatory actions or investigations as well as material litigation, and any settlements and amelioratory actions undertaken, as appropriate. The Board noted that the Advisor conducts regular, periodic reviews of the Subadvisor and its operations, including regarding investment processes and organizational and staffing matters. The Board also noted that the Trust's CCO and his staff conduct regular, periodic compliance reviews with the Subadvisor and present reports to the Independent Trustees regarding the same, which includes evaluating the regulatory compliance systems of the Subadvisor and procedures reasonably designed to assure compliance with the federal securities laws. The Board also took into account the financial condition of the Subadvisor.
The Board considered the Subadvisor's investment process and philosophy. The Board took into account that the Subadvisor's responsibilities include the development and maintenance of an investment program for the fund that is consistent with the fund's investment objective, the selection of investment securities and the placement of orders for the purchase and sale of such securities, as well as the implementation of compliance controls related to performance of these services. The Board also received information with respect to the Subadvisor's brokerage policies and practices, including with respect to best execution and soft dollars.
Subadvisor compensation . In considering the cost of services to be provided by the Subadvisor and the profitability to the Subadvisor of its relationship with the fund, the Board noted that the fees under the Subadvisory Agreement are paid by the Advisor and not the fund. The Board also received information and took into account any other potential conflicts of interest the Advisor might have in connection with the Subadvisory Agreement.
In addition, the Board considered other potential indirect benefits that the Subadvisor and its affiliates may receive from the Subadvisor's relationship with the fund, such as the opportunity to provide advisory services to additional funds in the John Hancock Fund Complex and reputational benefits.
Subadvisory fees . The Board considered that the fund pays an advisory fee to the Advisor and that, in turn, the Advisor pays a subadvisory fee to the Subadvisor. As noted above, the Board also considered the fund's subadvisory fees as compared to similarly situated investment companies deemed to be comparable to the fund as included in the report prepared by the independent third party provider of fund data, to the extent available. The Board noted that the limited size of the Lipper peer group was not sufficient for comparative purposes. The Board also took into account the subadvisory fees paid by the Advisor to the Subadvisor with respect to the fund and compared them to fees charged by the Subadvisor to manage other subadvised portfolios and portfolios not subject to regulation under the 1940 Act, as applicable.
Subadvisor performance . As noted above, the Board considered the fund's performance as compared to the fund's peer group and the benchmark index and noted that the Board reviews information about the fund's performance results at its regularly scheduled meetings. The Board noted the Advisor's expertise and resources in monitoring the performance, investment style and risk-adjusted performance of the Subadvisor. The Board was mindful of the Advisor's focus on the Subadvisor's performance. The Board also noted the Subadvisor's long-term performance record for similar accounts, as applicable.
The Board's decision to approve the Subadvisory Agreement was based on a number of determinations, including the following:
(1) | the Subadvisor has extensive experience and demonstrated skills as a manager; |
(2) | the performance of the fund has generally been in line with or generally 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. |
* * *
Based on the Board's evaluation of all factors that the Board deemed to be material, including those factors described above, the Board, including the Independent Trustees, concluded that renewal of the Advisory Agreement and the Subadvisory Agreement would be in the best interest of the fund and its shareholders. Accordingly, the Board, and the Independent Trustees voting separately, approved the Advisory Agreement and Subadvisory Agreement for an additional one-year period.
Trustees Hassell H. McClellan, Chairperson Officers Andrew G. Arnott John J. Danello Francis V. Knox, Jr. Charles A. Rizzo Salvatore Schiavone | Investment advisor John Hancock Advisers, LLC Subadvisor John Hancock Asset Management a division of Manulife Asset Management (US) LLC Principal distributor John Hancock Funds, LLC Custodian State Street Bank and Trust Company Transfer agent John Hancock Signature Services, Inc. Legal counsel K&L Gates LLP |
*Member of the Audit Committee
†Non-Independent Trustee
#Effective 6-20-17
The fund's proxy voting policies and procedures, as well as the fund proxy voting record for the most recent twelve-month period ended June 30, are available free of charge on the Securities and Exchange Commission (SEC) website at sec.gov or on our website.
The fund's complete list of portfolio holdings, for the first and third fiscal quarters, is filed with the SEC on Form N-Q. The fund's Form N-Q is available on our website and the SEC's website, sec.gov, and can be reviewed and copied (for a fee) at the SEC's Public Reference Room in Washington, DC. Call 800-SEC-0330 to receive information on the operation of the SEC's Public Reference Room.
We make this information on your fund, as well as monthly portfolio holdings, and other fund details available on our website at jhinvestments.com or by calling 800-225-5291.
You can also contact us: | |||
800-225-5291 jhinvestments.com | Regular mail: John Hancock Signature Services, Inc. | Express mail: John Hancock Signature Services, Inc. |
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ASSET ALLOCATION Income Allocation Fund Multi-Index Lifetime Portfolios Multi-Index Preservation Portfolios Multimanager Lifestyle Portfolios Multimanager Lifetime Portfolios EXCHANGE-TRADED FUNDS John Hancock Multifactor Consumer Discretionary ETF John Hancock Multifactor Consumer Staples ETF John Hancock Multifactor Developed International ETF John Hancock Multifactor Energy ETF John Hancock Multifactor Financials ETF John Hancock Multifactor Healthcare ETF John Hancock Multifactor Industrials ETF John Hancock Multifactor Large Cap ETF John Hancock Multifactor Materials ETF John Hancock Multifactor Mid Cap ETF John Hancock Multifactor Small Cap ETF John Hancock Multifactor Technology ETF John Hancock Multifactor Utilities ETF | ENVIRONMENTAL, SOCIAL, AND GOVERNANCE FUNDS ESG All Cap Core ESG Core Bond ESG International Equity ESG Large Cap Core CLOSED-END FUNDS Financial Opportunities Hedged Equity & Income Income Securities Trust Investors Trust Preferred Income Preferred Income II Preferred Income III Premium Dividend Tax-Advantaged Dividend Income Tax-Advantaged Global Shareholder Yield |
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John Hancock ETFs are distributed by Foreside Fund Services, LLC, and are subadvised by Dimensional Fund Advisors LP.
Foreside is not affiliated with John Hancock Funds, LLC or Dimensional Fund Advisors LP.
Dimensional Fund Advisors LP receives compensation from John Hancock in connection with licensing rights to the
John Hancock Dimensional indexes. Dimensional Fund Advisors LP does not sponsor, endorse, or sell, and makes no
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back to 1862. Helping our shareholders pursue their financial goals is at the
core of everything we do. It's why we support the role of professional financial
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| John Hancock Funds, LLC n Member FINRA, SIPC 601 Congress Street n Boston, MA 02210-2805 800-225-5291 n jhinvestments.com | |
This report is for the information of the shareholders of John Hancock Bond Fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by a prospectus. | ||
MF418650 | 21SA 11/17 1/18 |
ITEM 2. CODE OF ETHICS.
Not applicable at this time.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable at this time.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable at this time.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable at this time.
ITEM 6. SCHEDULE OF INVESTMENTS.
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.
(a) 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) EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES. The registrant maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in this Form N-CSR is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission. Such disclosure and procedures include controls and procedures designed to ensure that such information is accumulated and communicated to the registrant’s management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.
Within 90 days prior to the filing date of this Form N-CSR, the registrant had carried out an evaluation, under the supervision and with the participation of the registrant’s management, including the registrant’s principal executive officer and the registrant’s principal financial officer, of the effectiveness of the design and operation of the registrant’s disclosure controls and
procedures relating to information required to be disclosed on Form N-CSR. Based on such evaluation, the registrant’s principal executive officer and principal financial officer concluded that the registrant’s disclosure controls and procedures are operating effectively to ensure that:
(i) information required to be disclosed in this Form N-CSR is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission, and
(ii) information is accumulated and communicated to the registrant’s management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.
(b) CHANGE IN REGISTRANT’S INTERNAL CONTROL: Not applicable.
ITEM 12. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 13. EXHIBITS.
(a)(1) Separate certifications for the registrant's principal executive officer and principal financial officer, as required by Section 302 of the Sarbanes-Oxley Act of 2002 and Rule 30a-2(a) under the Investment Company Act of 1940, are attached.
(b)(1) Separate certifications for the registrant's principal executive officer and principal financial officer, as required by 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and Rule 30a-2(b) under the Investment Company Act of 1940, are attached. The certifications furnished pursuant to this paragraph are not deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section. Such certifications are not deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, except to the extent that the Registrant specifically incorporates them by reference.
(c)(1) Submission of Matters to a Vote of Security Holders is attached. See attached “John Hancock Funds – Nominating and Governance Committee Charter”.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
John Hancock Sovereign Bond Fund | |||
By: | /s/ Andrew Arnott | ||
Andrew Arnott | |||
President | |||
Date: | January 17, 2018 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ Andrew Arnott | ||
Andrew Arnott | |||
President | |||
Date: | January 17, 2018 |
By: | /s/ Charles A. Rizzo | ||
Charles A. Rizzo | |||
Chief Financial Officer | |||
Date: | January 17, 2018 |