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 number811- 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, 2018 |
ITEM 1. REPORTS TO STOCKHOLDERS.
John Hancock
Bond Fund
Semiannual report 11/30/18
Beginning January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the fund's shareholder reports such as this one will no longer be sent by mail unless you specifically request paper copies of the reports of the fund or you receive them from your financial intermediary. Instead, the reports will be made available on our website, and you will be notified by mail each time a report is posted and be provided with a website link to access the report.
If you have already elected to receive shareholder reports electronically, you will not be affected by this change, and you do not need to take any action. You may elect to receive shareholder reports and other communications electronically by calling John Hancock Investments at 800-225-5291 (Class A, Class B and Class C shares) or 888-972-8696 (Class I, Class R2, Class R4 and Class R6 shares) or by contacting your financial intermediary.
You may elect to receive all reports in paper, free of charge, at any time. You can inform John Hancock Investments or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by following the instructions listed above. Your election to receive reports in paper will apply to all funds held with John Hancock Investments or your financial intermediary.
A message to shareholders
Dear shareholder,
It's been a challenging period for fixed-income investors, as both short- and long-term yields rose steadily higher. A solid and stable economy led the U.S. Federal Reserve to continue normalizing monetary policy, raising interest rates in June and September and once again after period end in December. However, concerns about the strength of the broader global economy and the durability of the now decade-old bull market led investors to dial back risk exposures. Against this backdrop, both interest-rate-sensitive and credit-sensitive securities posted declines.
Diversification in a fixed-income portfolio remains a time-tested strategy, but periods such as the last half of 2018—when a number of typically uncorrelated markets moved in the same direction—do sometimes occur. They also tend to be relatively short-lived, and eventually fundamentals—including credit risk, the direction of interest rates, and foreign exchange rates—reassert themselves to drive performance.
Your best resource in unpredictable and volatile markets is your financial advisor, who can help position your portfolio so that it's sufficiently diversified to meet your long-term objectives and to withstand the inevitable turbulence along the way.
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 CEO,
John Hancock Investments
Head of Wealth and Asset Management,
United States and Europe
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 in 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 11/30/18 (%)
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
Interest rates rose as the economy remained on solid footing
Both short- and longer-term yields rose during the period, as the U.S. Federal Reserve continued its campaign to normalize monetary policy.
A flatter yield curve sparked investor jitters
Short-term rates rose more dramatically than longer-term raises, leading to concern over the possibility of an inverted yield curve—historically, a precursor of a recession.
The fund lagged its benchmark
Against this backdrop, both credit-sensitive and rate-sensitive securities declined and the fund posted a decline, underperforming its benchmark, the Bloomberg Barclays U.S. Aggregate Bond Index.
PORTFOLIO COMPOSITION AS OF 11/30/18 (%)
A note about risks
The fund is subject to various risks as described in the fund's prospectus. For more information, please refer to the "Principal risks" section of the prospectus.
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
It's been a volatile stretch recently in the fixed-income markets. What were the main drivers of performance during the six months ended November 30, 2018?
There's been a palpable tension in the capital markets in recent months. On one hand, economic data in the United States continues to appear quite solid with low unemployment, strong GDP growth, and stable inflation. On the other hand, however, investors are growing increasingly concerned that the decade-long bull market is finally running out of steam. Investors' concerns aren't without cause: The U.S. Federal Reserve (Fed) has continued to raise short-term interest rates as it seeks to normalize monetary policy. Yields on the long end of the curve, meanwhile, have been fairly volatile; while the general trend is higher, the pace of rising rates has been slower on the longer end of the curve. The result is a very flat yield curve to the point where many investors are worried that the curve could invert—one measure being when 3-month U.S. Treasuries offer higher yields than 10-year Treasury bonds. At the end of November, that spread was only 64 basis points—100 basis points equals 1%—and any material increase in short-term rates could shrink that gap even further.
An inverted yield curve has historically been a reliable harbinger of a recession, although there are reasons to be more skeptical of the accuracy of the signals the curve is currently sending. Both in the United States and abroad, we're still working our way out of an unprecedented period of monetary intervention by central banks. Yields around the world are still quite low by historical standards in the wake of quantitative easing; investors' demand for income has certainly been adding to the downward pressures on longer-dated debt and that is likely distorting whatever signals the shape of the yield curve might be sending about the health of the economy.
Given those concerns, what might the Fed's next move be?
After raising rates again right after period end in December, the Fed has indicated that it'll scale back in 2019, possibly only raising rates two times during the year. Core inflation has recently been
What detracted from fund performance during the reporting period?
While both interest rate- and credit-sensitive segments of the market sold off, credit markets were hit harder. This was particularly the case in October and November, when investors looked for less risky options. As a result, the fund's exposure to corporate bonds—both high yield and investment grade—weighed on results relative to the benchmark index. The fund had a sizable overweight in both segments versus the index.
The fund's overweight in corporate debt was funded in large part by a corresponding underweight in U.S. Treasuries. Although Treasuries also declined during the past six months, those losses were
QUALITY COMPOSITION AS OF 11/30/18 (%)
What decisions helped relative results?
Securitized debt held up relatively well during the period. The fund had an overweight exposure versus the benchmark to asset-backed securities, including those backed by auto loans and credit card receivables. With the economy and the labor market both as strong as they are, the consumer has been one of the reliably bright spots in the macroeconomic picture. Delinquencies and defaults on consumer debt have been low and asset-backed securities tied to consumer debt fared relatively well. The fund's overweight exposure contributed positively to relative results.
How are you positioning the fund heading into 2019?
We're taking a fairly conservative stance in general as we head into the new year. As we've said before, despite encouraging signs from the domestic economy, we don't believe now is the time to make big bets on either interest rates or credit. To that end, we anticipate continuing to take a more neutral stance with respect to the fund's duration; however, sector weighting and individual security selection remain our primary strategic emphasis. While our goal is to offer investors a well-diversified portfolio, in general we prefer credit-driven holdings over interest-rate-sensitive securities, given the higher yields offered, the current strength of underlying fundamentals, and the upward pressures on interest rates.
With regard to credit, we continue to focus on higher-quality securities within both the investment-grade space and the high-yield area. We've also become more focused on shorter-maturity debt; the
COUNTRY COMPOSITION AS OF 11/30/18 (%)
United States | 88.3 |
United Kingdom | 2.4 |
Canada | 1.5 |
Netherlands | 1.3 |
France | 1.1 |
Other countries | 5.4 |
TOTAL | 100.0 |
As a percentage of net assets. |
small additional yield for longer-dated corporate bonds doesn't adequately compensate investors for the risk of rising rates, in our view.
As we've said before, however, the reality for investors is that for the foreseeable future we're likely to remain in an environment of coupon-driven returns. Rising valuations aren't likely to be the main driver of returns over the near term. We're more than nine years into the economic expansion cycle, and it wouldn't surprise us if investors become increasingly prone to selling out of riskier assets in the face of any negative headlines. Although more frequent bouts of volatility seem likely, we believe the fund is well positioned for such an environment, and that investors' best defense against market turbulence remains a well-diversified portfolio and a focus on the long term.
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, 2018
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 11-30-18 | as of 11-30-18 | ||||
Class A | -5.83 | 1.73 | 6.57 | -4.44 | 8.97 | 88.90 | 3.46 | 3.45 | |||
Class B | -7.29 | 1.50 | 6.40 | -5.65 | 7.71 | 86.03 | 2.90 | 2.90 | |||
Class C | -3.55 | 1.85 | 6.26 | -1.80 | 9.60 | 83.46 | 2.91 | 2.90 | |||
Class I2 | -1.64 | 2.87 | 7.38 | -0.34 | 15.17 | 103.85 | 3.88 | 3.88 | |||
Class R22,3 | -1.96 | 2.48 | 6.99 | -0.46 | 13.05 | 96.48 | 3.51 | 3.50 | |||
Class R42,3 | -1.77 | 2.70 | 7.07 | -0.40 | 14.27 | 98.04 | 3.76 | 3.65 | |||
Class R62,3 | -1.46 | 3.01 | 7.35 | -0.21 | 15.96 | 103.32 | 4.01 | 4.00 | |||
Class NAV2,3 | -1.51 | 2.85 | 7.15 | -0.27 | 15.08 | 99.45 | 4.03 | 4.02 | |||
Index† | -1.34 | 2.03 | 3.67 | -0.30 | 10.58 | 43.36 | — | — |
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. Net expenses reflect contractual expense limitations in effect until September 30, 2019 and are subject to change. Had the contractual 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 (%) | 0.80 | 1.50 | 1.50 | 0.50 | 0.90 | 0.75 | 0.40 | 0.39 |
Net (%) | 0.79 | 1.49 | 1.49 | 0.49 | 0.89 | 0.64 | 0.39 | 0.38 |
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 $10,000 investment in John Hancock Bond Fund for the share classes and periods indicated, assuming all distributions were reinvested. For comparison, we've shown the same investment in the Bloomberg Barclays U.S. Aggregate Bond Index.
Start date | With maximum sales charge ($) | Without sales charge ($) | Index ($) | |
Class B4 | 11-30-08 | 18,603 | 18,603 | 14,336 |
Class C4 | 11-30-08 | 18,346 | 18,346 | 14,336 |
Class I2,3 | 11-30-08 | 20,385 | 20,385 | 14,336 |
Class R22,3 | 11-30-08 | 19,648 | 19,648 | 14,336 |
Class R42,3 | 11-30-08 | 19,804 | 19,804 | 14,336 |
Class R62,3 | 11-30-08 | 20,332 | 20,332 | 14,336 |
Class NAV2,3 | 11-30-08 | 19,945 | 19,945 | 14,336 |
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 that have not been adjusted for class-specific expenses; otherwise, returns would vary. |
4 | The contingent deferred sales charge is not applicable. |
Your expenses |
10 | JOHN HANCOCK BOND FUND | SEMIANNUAL REPORT |
Account value on 6-1-2018 | Ending value on 11-30-2018 | Expenses paid during period ended 11-30-20181 | Annualized expense ratio | ||
Class A | Actual expenses/actual returns | $1,000.00 | $995.30 | $3.90 | 0.78% |
Hypothetical example | 1,000.00 | 1,021.20 | 3.95 | 0.78% | |
Class B | Actual expenses/actual returns | 1,000.00 | 992.40 | 7.39 | 1.48% |
Hypothetical example | 1,000.00 | 1,017.60 | 7.49 | 1.48% | |
Class C | Actual expenses/actual returns | 1,000.00 | 991.80 | 7.39 | 1.48% |
Hypothetical example | 1,000.00 | 1,017.60 | 7.49 | 1.48% | |
Class I | Actual expenses/actual returns | 1,000.00 | 996.60 | 2.50 | 0.50% |
Hypothetical example | 1,000.00 | 1,022.60 | 2.54 | 0.50% | |
Class R2 | Actual expenses/actual returns | 1,000.00 | 995.40 | 4.35 | 0.87% |
Hypothetical example | 1,000.00 | 1,020.70 | 4.41 | 0.87% | |
Class R4 | Actual expenses/actual returns | 1,000.00 | 996.00 | 3.15 | 0.63% |
Hypothetical example | 1,000.00 | 1,021.90 | 3.19 | 0.63% | |
Class R6 | Actual expenses/actual returns | 1,000.00 | 997.90 | 1.90 | 0.38% |
Hypothetical example | 1,000.00 | 1,023.20 | 1.93 | 0.38% | |
Class NAV | Actual expenses/actual returns | 1,000.00 | 997.30 | 1.85 | 0.37% |
Hypothetical example | 1,000.00 | 1,023.20 | 1.88 | 0.37% |
1 | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period). |
SEMIANNUAL REPORT | JOHN HANCOCK BOND FUND | 11 |
Fund’s investments |
Rate (%) | Maturity date | Par value^ | Value | ||
U.S. Government and Agency obligations 34.7% | $4,776,424,697 | ||||
(Cost $4,893,103,296) | |||||
U.S. Government 13.4% | 1,847,738,348 | ||||
U.S. Treasury | |||||
Bond | 2.750 | 11-15-42 | 343,385,000 | 312,185,252 | |
Bond | 3.000 | 02-15-47 | 208,395,000 | 196,762,327 | |
Bond | 3.000 | 08-15-48 | 692,410,000 | 652,298,903 | |
Note | 2.875 | 10-31-20 | 129,500,000 | 129,626,465 | |
Note | 3.125 | 11-15-28 | 513,046,000 | 518,236,584 | |
Treasury Inflation Protected Security | 0.375 | 07-15-25 | 40,135,464 | 38,628,817 | |
U.S. Government Agency 21.3% | 2,928,686,349 | ||||
Federal Home Loan Mortgage Corp. | |||||
30 Yr Pass Thru | 3.000 | 03-01-43 | 6,305,116 | 6,060,300 | |
30 Yr Pass Thru | 3.000 | 04-01-43 | 7,370,756 | 7,079,957 | |
30 Yr Pass Thru | 3.000 | 06-01-43 | 2,604,363 | 2,499,985 | |
30 Yr Pass Thru | 3.000 | 12-01-45 | 26,508,169 | 25,354,650 | |
30 Yr Pass Thru | 3.000 | 05-01-46 | 4,826,838 | 4,615,287 | |
30 Yr Pass Thru | 3.000 | 10-01-46 | 9,052,026 | 8,646,807 | |
30 Yr Pass Thru | 3.000 | 10-01-46 | 9,830,710 | 9,399,849 | |
30 Yr Pass Thru | 3.000 | 10-01-46 | 15,888,467 | 15,177,210 | |
30 Yr Pass Thru | 3.000 | 10-01-46 | 108,673,728 | 103,876,805 | |
30 Yr Pass Thru | 3.000 | 11-01-46 | 18,837,242 | 17,988,095 | |
30 Yr Pass Thru | 3.000 | 12-01-46 | 93,377,080 | 89,211,584 | |
30 Yr Pass Thru | 3.000 | 12-01-46 | 18,974,301 | 18,130,834 | |
30 Yr Pass Thru | 3.000 | 04-01-47 | 54,429,452 | 51,975,876 | |
30 Yr Pass Thru | 3.500 | 02-01-41 | 16,933,923 | 16,757,307 | |
30 Yr Pass Thru | 3.500 | 01-01-42 | 1,786,827 | 1,769,866 | |
30 Yr Pass Thru | 3.500 | 05-01-42 | 1,541,328 | 1,526,216 | |
30 Yr Pass Thru | 3.500 | 06-01-42 | 6,450,658 | 6,387,411 | |
30 Yr Pass Thru | 3.500 | 08-01-42 | 1,756,053 | 1,738,835 | |
30 Yr Pass Thru | 3.500 | 09-01-42 | 2,116,204 | 2,093,472 | |
30 Yr Pass Thru | 3.500 | 04-01-44 | 7,459,952 | 7,382,147 | |
30 Yr Pass Thru | 3.500 | 05-01-45 | 17,512,974 | 17,256,436 | |
30 Yr Pass Thru | 3.500 | 01-01-46 | 2,154,233 | 2,122,676 | |
30 Yr Pass Thru | 3.500 | 08-01-46 | 90,339,260 | 89,058,277 | |
30 Yr Pass Thru | 3.500 | 09-01-46 | 24,665,369 | 24,280,937 | |
30 Yr Pass Thru | 3.500 | 09-01-46 | 12,987,671 | 12,769,012 | |
30 Yr Pass Thru | 3.500 | 10-01-46 | 5,630,540 | 5,548,941 | |
30 Yr Pass Thru | 3.500 | 10-01-46 | 31,263,373 | 30,771,219 | |
30 Yr Pass Thru | 3.500 | 11-01-46 | 10,932,171 | 10,751,534 | |
30 Yr Pass Thru | 3.500 | 11-01-46 | 11,762,305 | 11,582,655 | |
30 Yr Pass Thru | 3.500 | 12-01-46 | 19,002,449 | 18,724,093 | |
30 Yr Pass Thru | 3.500 | 01-01-47 | 10,717,580 | 10,558,909 | |
30 Yr Pass Thru | 3.500 | 02-01-47 | 19,035,348 | 18,759,484 |
12 | JOHN HANCOCK BOND FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
U.S. Government Agency (continued) | |||||
30 Yr Pass Thru | 3.500 | 04-01-47 | 19,763,550 | $19,470,956 | |
30 Yr Pass Thru | 3.500 | 11-01-47 | 51,666,629 | 50,837,137 | |
30 Yr Pass Thru | 3.500 | 11-01-47 | 17,467,293 | 17,181,403 | |
30 Yr Pass Thru | 4.000 | 01-01-41 | 17,273,212 | 17,531,634 | |
30 Yr Pass Thru | 4.000 | 03-01-42 | 8,407,757 | 8,541,427 | |
30 Yr Pass Thru | 4.000 | 11-01-43 | 5,377,262 | 5,472,835 | |
30 Yr Pass Thru | 4.000 | 02-01-44 | 2,241,087 | 2,272,514 | |
30 Yr Pass Thru | 4.000 | 07-01-45 | 25,331,159 | 25,694,304 | |
30 Yr Pass Thru | 4.000 | 01-01-47 | 16,305,156 | 16,528,714 | |
30 Yr Pass Thru | 4.000 | 03-01-47 | 67,818,241 | 68,419,593 | |
30 Yr Pass Thru | 4.000 | 03-01-47 | 20,897,704 | 21,128,719 | |
30 Yr Pass Thru | 4.000 | 04-01-47 | 28,985,137 | 29,373,491 | |
30 Yr Pass Thru | 4.000 | 05-01-47 | 22,034,814 | 22,330,045 | |
30 Yr Pass Thru | 4.000 | 10-01-47 | 38,711,400 | 39,199,826 | |
30 Yr Pass Thru | 4.000 | 03-01-48 | 15,437,371 | 15,595,965 | |
30 Yr Pass Thru | 4.000 | 08-01-48 | 40,361,095 | 40,693,755 | |
30 Yr Pass Thru | 4.500 | 11-01-39 | 2,425,700 | 2,521,780 | |
30 Yr Pass Thru | 4.500 | 02-01-41 | 4,030,462 | 4,192,625 | |
30 Yr Pass Thru | 4.500 | 03-01-41 | 2,375,559 | 2,468,169 | |
30 Yr Pass Thru | 4.500 | 09-01-41 | 1,601,535 | 1,664,471 | |
30 Yr Pass Thru | 4.500 | 10-01-41 | 1,838,470 | 1,910,716 | |
30 Yr Pass Thru | 4.500 | 06-01-47 | 24,598,596 | 25,503,748 | |
30 Yr Pass Thru | 5.000 | 03-01-41 | 1,200,397 | 1,268,721 | |
30 Yr Pass Thru | 5.500 | 05-01-38 | 242,336 | 262,039 | |
30 Yr Pass Thru | 5.500 | 11-01-39 | 5,196,285 | 5,618,778 | |
Federal National Mortgage Association | |||||
15 Yr Pass Thru | 3.000 | 09-01-27 | 4,493,979 | 4,459,046 | |
15 Yr Pass Thru | 3.500 | 02-01-26 | 654,675 | 659,637 | |
15 Yr Pass Thru | 3.500 | 03-01-26 | 5,260,725 | 5,300,578 | |
15 Yr Pass Thru | 4.000 | 12-01-24 | 1,998,615 | 2,035,804 | |
15 Yr Pass Thru | 5.000 | 07-01-19 | 149 | 149 | |
30 Yr Pass Thru | 3.000 | 07-01-42 | 4,916,313 | 4,724,845 | |
30 Yr Pass Thru | 3.000 | 10-01-42 | 9,529,462 | 9,158,334 | |
30 Yr Pass Thru | 3.000 | 10-01-42 | 4,759,833 | 4,574,460 | |
30 Yr Pass Thru | 3.000 | 12-01-42 | 2,258,658 | 2,170,694 | |
30 Yr Pass Thru | 3.000 | 01-01-43 | 1,659,339 | 1,594,715 | |
30 Yr Pass Thru | 3.000 | 03-01-43 | 1,796,728 | 1,727,315 | |
30 Yr Pass Thru | 3.000 | 04-01-43 | 2,878,158 | 2,765,168 | |
30 Yr Pass Thru | 3.000 | 05-01-43 | 2,492,311 | 2,396,026 | |
30 Yr Pass Thru | 3.000 | 06-01-43 | 2,538,484 | 2,438,829 | |
30 Yr Pass Thru | 3.000 | 07-01-43 | 29,607,248 | 28,426,425 | |
30 Yr Pass Thru | 3.000 | 08-01-46 | 62,722,846 | 59,927,264 | |
30 Yr Pass Thru | 3.000 | 08-01-46 | 45,837,030 | 43,794,055 | |
30 Yr Pass Thru | 3.000 | 09-01-46 | 6,356,172 | 6,080,820 | |
30 Yr Pass Thru | 3.000 | 10-01-46 | 4,623,978 | 4,422,220 | |
30 Yr Pass Thru | 3.000 | 01-01-47 | 36,240,610 | 34,608,362 |
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 | 3.000 | 02-01-47 | 19,339,165 | $18,489,298 | |
30 Yr Pass Thru | 3.000 | 10-01-47 | 43,249,352 | 41,308,196 | |
30 Yr Pass Thru | 3.000 | 11-01-47 | 50,715,920 | 48,455,492 | |
30 Yr Pass Thru | 3.500 | 11-01-40 | 3,613,585 | 3,572,509 | |
30 Yr Pass Thru | 3.500 | 06-01-42 | 3,436,467 | 3,402,774 | |
30 Yr Pass Thru | 3.500 | 06-01-42 | 312,464 | 309,401 | |
30 Yr Pass Thru | 3.500 | 08-01-42 | 6,285,357 | 6,223,731 | |
30 Yr Pass Thru | 3.500 | 01-01-43 | 2,911,065 | 2,879,794 | |
30 Yr Pass Thru | 3.500 | 02-01-43 | 918,145 | 908,569 | |
30 Yr Pass Thru | 3.500 | 05-01-43 | 1,681,520 | 1,663,457 | |
30 Yr Pass Thru | 3.500 | 06-01-43 | 22,085,940 | 21,848,688 | |
30 Yr Pass Thru | 3.500 | 07-01-43 | 1,706,665 | 1,688,865 | |
30 Yr Pass Thru | 3.500 | 07-01-43 | 6,207,475 | 6,136,913 | |
30 Yr Pass Thru | 3.500 | 07-01-43 | 6,600,036 | 6,529,137 | |
30 Yr Pass Thru | 3.500 | 01-01-45 | 5,058,933 | 4,992,733 | |
30 Yr Pass Thru | 3.500 | 04-01-45 | 17,280,129 | 17,027,003 | |
30 Yr Pass Thru | 3.500 | 04-01-45 | 4,632,569 | 4,564,710 | |
30 Yr Pass Thru | 3.500 | 04-01-45 | 19,204,825 | 18,923,505 | |
30 Yr Pass Thru | 3.500 | 08-01-45 | 23,348,333 | 23,006,318 | |
30 Yr Pass Thru | 3.500 | 01-01-46 | 45,316,122 | 44,687,715 | |
30 Yr Pass Thru | 3.500 | 02-01-46 | 33,646,794 | 33,127,634 | |
30 Yr Pass Thru | 3.500 | 07-01-46 | 41,187,903 | 40,526,644 | |
30 Yr Pass Thru | 3.500 | 07-01-46 | 12,714,825 | 12,510,692 | |
30 Yr Pass Thru | 3.500 | 08-01-46 | 45,757,819 | 45,073,241 | |
30 Yr Pass Thru | 3.500 | 02-01-47 | 51,624,894 | 50,836,407 | |
30 Yr Pass Thru | 3.500 | 03-01-47 | 56,209,477 | 55,377,313 | |
30 Yr Pass Thru | 3.500 | 05-01-47 | 38,324,081 | 37,780,657 | |
30 Yr Pass Thru | 3.500 | 07-01-47 | 71,477,565 | 70,419,361 | |
30 Yr Pass Thru | 3.500 | 09-01-47 | 14,407,361 | 14,149,041 | |
30 Yr Pass Thru | 3.500 | 11-01-47 | 67,356,236 | 66,243,282 | |
30 Yr Pass Thru | 3.500 | 11-01-47 | 10,136,423 | 9,954,680 | |
30 Yr Pass Thru | 4.000 | 09-01-40 | 8,298,657 | 8,422,164 | |
30 Yr Pass Thru | 4.000 | 09-01-40 | 12,625,855 | 12,813,763 | |
30 Yr Pass Thru | 4.000 | 11-01-40 | 2,959,740 | 3,013,963 | |
30 Yr Pass Thru | 4.000 | 12-01-40 | 1,740,059 | 1,765,956 | |
30 Yr Pass Thru | 4.000 | 12-01-40 | 4,839,063 | 4,911,082 | |
30 Yr Pass Thru | 4.000 | 01-01-41 | 5,157,641 | 5,234,401 | |
30 Yr Pass Thru | 4.000 | 01-01-41 | 2,042,321 | 2,075,270 | |
30 Yr Pass Thru | 4.000 | 02-01-41 | 2,235,304 | 2,271,366 | |
30 Yr Pass Thru | 4.000 | 09-01-41 | 9,821,824 | 9,974,139 | |
30 Yr Pass Thru | 4.000 | 09-01-41 | 2,557,307 | 2,599,362 | |
30 Yr Pass Thru | 4.000 | 09-01-41 | 4,301,865 | 4,376,644 | |
30 Yr Pass Thru | 4.000 | 10-01-41 | 2,457,490 | 2,497,904 | |
30 Yr Pass Thru | 4.000 | 10-01-41 | 1,747,340 | 1,773,346 | |
30 Yr Pass Thru | 4.000 | 10-01-41 | 2,965,844 | 3,013,691 | |
30 Yr Pass Thru | 4.000 | 01-01-42 | 3,830,123 | 3,893,111 |
14 | JOHN HANCOCK BOND FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
U.S. Government Agency (continued) | |||||
30 Yr Pass Thru | 4.000 | 03-01-42 | 1,957,684 | $1,989,266 | |
30 Yr Pass Thru | 4.000 | 05-01-42 | 7,710,523 | 7,832,506 | |
30 Yr Pass Thru | 4.000 | 07-01-42 | 492,068 | 500,007 | |
30 Yr Pass Thru | 4.000 | 09-01-43 | 9,233,405 | 9,402,564 | |
30 Yr Pass Thru | 4.000 | 10-01-43 | 10,308,423 | 10,484,390 | |
30 Yr Pass Thru | 4.000 | 10-01-43 | 4,375,526 | 4,446,116 | |
30 Yr Pass Thru | 4.000 | 01-01-44 | 6,994,224 | 7,111,432 | |
30 Yr Pass Thru | 4.000 | 12-01-45 | 23,746,395 | 24,040,441 | |
30 Yr Pass Thru | 4.000 | 02-01-46 | 15,901,892 | 16,044,139 | |
30 Yr Pass Thru | 4.000 | 04-01-46 | 16,063,450 | 16,207,142 | |
30 Yr Pass Thru | 4.000 | 06-01-46 | 10,962,968 | 11,061,035 | |
30 Yr Pass Thru | 4.000 | 07-01-46 | 28,000,592 | 28,242,316 | |
30 Yr Pass Thru | 4.000 | 10-01-46 | 6,705,238 | 6,763,123 | |
30 Yr Pass Thru | 4.000 | 01-01-47 | 20,514,560 | 20,819,874 | |
30 Yr Pass Thru | 4.000 | 03-01-47 | 31,886,612 | 32,166,866 | |
30 Yr Pass Thru | 4.000 | 04-01-47 | 29,019,008 | 29,441,823 | |
30 Yr Pass Thru | 4.000 | 11-01-47 | 10,567,491 | 10,678,532 | |
30 Yr Pass Thru | 4.000 | 12-01-47 | 17,082,762 | 17,267,602 | |
30 Yr Pass Thru | 4.000 | 04-01-48 | 88,328,012 | 89,228,542 | |
30 Yr Pass Thru | 4.000 | 07-01-48 | 34,126,948 | 34,373,570 | |
30 Yr Pass Thru | 4.000 | 09-01-48 | 54,596,247 | 55,135,811 | |
30 Yr Pass Thru | 4.000 | 10-01-48 | 55,778,674 | 56,155,615 | |
30 Yr Pass Thru | 4.000 | 10-01-48 | 32,837,345 | 33,059,253 | |
30 Yr Pass Thru | 4.500 | 11-01-39 | 4,805,226 | 4,995,746 | |
30 Yr Pass Thru | 4.500 | 08-01-40 | 3,551,556 | 3,694,589 | |
30 Yr Pass Thru | 4.500 | 08-01-40 | 2,220,353 | 2,309,774 | |
30 Yr Pass Thru | 4.500 | 02-01-41 | 8,288,270 | 8,622,067 | |
30 Yr Pass Thru | 4.500 | 05-01-41 | 4,807,498 | 5,001,112 | |
30 Yr Pass Thru | 4.500 | 05-01-41 | 5,571,989 | 5,792,909 | |
30 Yr Pass Thru | 4.500 | 06-01-41 | 7,206,416 | 7,489,887 | |
30 Yr Pass Thru | 4.500 | 07-01-41 | 5,169,457 | 5,372,802 | |
30 Yr Pass Thru | 4.500 | 08-01-41 | 3,561,123 | 3,701,203 | |
30 Yr Pass Thru | 4.500 | 05-01-42 | 7,855,997 | 8,172,385 | |
30 Yr Pass Thru | 4.500 | 11-01-42 | 5,326,266 | 5,540,773 | |
30 Yr Pass Thru | 4.500 | 01-01-43 | 1,586,804 | 1,649,222 | |
30 Yr Pass Thru | 4.500 | 10-01-45 | 18,008,641 | 18,660,750 | |
30 Yr Pass Thru | 4.500 | 05-01-46 | 11,626,496 | 12,000,269 | |
30 Yr Pass Thru | 4.500 | 04-01-48 | 1,938,222 | 2,002,955 | |
30 Yr Pass Thru | 4.500 | 04-01-48 | 19,114,516 | 19,681,230 | |
30 Yr Pass Thru | 4.500 | 05-01-48 | 55,234,956 | 57,105,604 | |
30 Yr Pass Thru | 4.500 | 06-01-48 | 59,530,188 | 61,537,004 | |
30 Yr Pass Thru | 4.500 | 06-01-48 | 48,726,619 | 50,506,281 | |
30 Yr Pass Thru (6 month LIBOR + 2.122%) (A) | 4.622 | 07-01-33 | 413 | 431 | |
30 Yr Pass Thru | 5.000 | 03-01-34 | 1,267,784 | 1,338,716 | |
30 Yr Pass Thru | 5.000 | 12-01-34 | 5,259 | 5,559 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK BOND FUND | 15 |
Rate (%) | Maturity date | Par value^ | Value | ||
U.S. Government Agency (continued) | |||||
30 Yr Pass Thru | 5.000 | 02-01-36 | 1,663,168 | $1,762,567 | |
30 Yr Pass Thru | 5.000 | 11-01-36 | 315,441 | 334,381 | |
30 Yr Pass Thru | 5.000 | 08-01-40 | 3,538,731 | 3,741,529 | |
30 Yr Pass Thru | 5.000 | 09-01-40 | 948,892 | 1,003,124 | |
30 Yr Pass Thru | 5.000 | 09-01-40 | 2,734,602 | 2,892,172 | |
30 Yr Pass Thru | 5.000 | 02-01-41 | 2,328,506 | 2,460,493 | |
30 Yr Pass Thru | 5.000 | 03-01-41 | 2,444,186 | 2,582,730 | |
30 Yr Pass Thru | 5.000 | 04-01-41 | 1,684,218 | 1,788,632 | |
30 Yr Pass Thru | 5.000 | 07-01-42 | 2,040,773 | 2,157,088 | |
30 Yr Pass Thru | 5.500 | 12-01-34 | 70,670 | 76,477 | |
30 Yr Pass Thru | 6.500 | 01-01-39 | 1,657,780 | 1,859,655 | |
30 Yr Pass Thru | 7.000 | 09-01-31 | 138 | 156 | |
30 Yr Pass Thru | 7.000 | 09-01-31 | 138 | 156 | |
30 Yr Pass Thru | 7.000 | 09-01-31 | 2,385 | 2,690 | |
30 Yr Pass Thru | 7.000 | 01-01-32 | 112 | 126 | |
30 Yr Pass Thru | 7.000 | 05-01-32 | 124 | 140 | |
30 Yr Pass Thru | 7.000 | 06-01-32 | 144 | 161 | |
30 Yr Pass Thru | 7.500 | 09-01-29 | 77 | 87 | |
30 Yr Pass Thru | 7.500 | 12-01-29 | 80 | 90 | |
30 Yr Pass Thru | 7.500 | 12-01-30 | 29 | 33 | |
30 Yr Pass Thru | 7.500 | 01-01-31 | 35 | 39 | |
30 Yr Pass Thru | 7.500 | 05-01-31 | 363 | 412 | |
30 Yr Pass Thru | 7.500 | 08-01-31 | 162 | 181 | |
Government National Mortgage Association | |||||
30 Yr Pass Thru | 4.000 | 02-15-41 | 2,264,392 | 2,312,245 | |
30 Yr Pass Thru | 5.000 | 04-15-35 | 4,000 | 4,240 | |
30 Yr Pass Thru | 5.000 | 04-15-35 | 2,203 | 2,334 | |
30 Yr Pass Thru | 5.500 | 03-15-35 | 5,349 | 5,791 | |
30 Yr Pass Thru | 6.000 | 03-15-33 | 2,807 | 3,089 | |
30 Yr Pass Thru | 6.000 | 06-15-33 | 1,053 | 1,155 | |
30 Yr Pass Thru | 6.500 | 09-15-28 | 406 | 446 | |
30 Yr Pass Thru | 6.500 | 09-15-29 | 200 | 220 | |
30 Yr Pass Thru | 6.500 | 08-15-31 | 313 | 348 | |
30 Yr Pass Thru | 7.000 | 04-15-29 | 870 | 971 | |
30 Yr Pass Thru | 8.000 | 10-15-26 | 411 | 459 | |
Foreign government obligations 0.3% | $42,881,490 | ||||
(Cost $50,438,772) | |||||
Argentina 0.1% | 18,397,802 | ||||
Provincia de Buenos Aires Bond (B) | 7.875 | 06-15-27 | 7,380,000 | 5,664,150 | |
Republic of Argentina Bond | 5.875 | 01-11-28 | 17,012,000 | 12,733,652 | |
Brazil 0.1% | 13,154,808 | ||||
Federative Republic of Brazil Note | 10.000 | 01-01-23 | BRL | 47,405,000 | 13,154,808 |
16 | JOHN HANCOCK BOND FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Qatar 0.1% | $11,328,880 | ||||
Government of Qatar Bond (B) | 5.103 | 04-23-48 | 11,175,000 | 11,328,880 | |
Corporate bonds 43.1% | $5,935,673,633 | ||||
(Cost $6,165,862,715) | |||||
Communication services 5.4% | 737,528,462 | ||||
Diversified telecommunication services 1.5% | |||||
C&W Senior Financing DAC (B) | 6.875 | 09-15-27 | 12,315,000 | 11,422,163 | |
C&W Senior Financing DAC (B) | 7.500 | 10-15-26 | 5,236,000 | 5,062,584 | |
Cablevision SA (B) | 6.500 | 06-15-21 | 9,120,000 | 8,860,171 | |
Cincinnati Bell, Inc. (B)(C) | 7.000 | 07-15-24 | 19,305,000 | 16,928,072 | |
GCI LLC | 6.875 | 04-15-25 | 9,728,000 | 9,703,680 | |
Liquid Telecommunications Financing PLC (B) | 8.500 | 07-13-22 | 11,730,000 | 11,758,328 | |
Radiate Holdco LLC (B)(C) | 6.625 | 02-15-25 | 12,650,000 | 11,385,000 | |
Radiate Holdco LLC (B) | 6.875 | 02-15-23 | 4,594,000 | 4,295,390 | |
Sprint Spectrum Company LLC (B) | 3.360 | 03-20-23 | 9,041,250 | 8,939,536 | |
Telecom Italia Capital SA | 7.200 | 07-18-36 | 18,705,000 | 17,788,455 | |
Telecom Italia SpA (B) | 5.303 | 05-30-24 | 13,015,000 | 12,217,831 | |
UPC Holding BV (B) | 5.500 | 01-15-28 | 11,040,000 | 10,046,400 | |
Verizon Communications, Inc. | 4.400 | 11-01-34 | 13,949,000 | 13,233,979 | |
Verizon Communications, Inc. | 4.672 | 03-15-55 | 12,740,000 | 11,461,128 | |
Verizon Communications, Inc. | 4.862 | 08-21-46 | 34,604,000 | 33,016,726 | |
Verizon Communications, Inc. | 5.012 | 08-21-54 | 11,559,000 | 10,926,522 | |
West Corp. (B) | 8.500 | 10-15-25 | 5,850,000 | 4,826,250 | |
Windstream Services LLC (B)(C) | 10.500 | 06-30-24 | 10,729,000 | 8,797,780 | |
Entertainment 0.6% | |||||
Activision Blizzard, Inc. | 3.400 | 09-15-26 | 14,358,000 | 13,324,378 | |
Electronic Arts, Inc. | 4.800 | 03-01-26 | 20,973,000 | 21,662,535 | |
Lions Gate Capital Holdings LLC (B) | 5.875 | 11-01-24 | 8,795,000 | 8,860,963 | |
Netflix, Inc. | 4.875 | 04-15-28 | 13,385,000 | 12,347,663 | |
Netflix, Inc. (B) | 5.875 | 11-15-28 | 21,990,000 | 21,770,100 | |
Interactive media and services 0.1% | |||||
Rackspace Hosting, Inc. (B)(C) | 8.625 | 11-15-24 | 13,786,000 | 11,683,635 | |
Media 2.7% | |||||
Altice Financing SA (B)(C) | 6.625 | 02-15-23 | 10,820,000 | 10,684,750 | |
Cablevision Systems Corp. | 5.875 | 09-15-22 | 10,805,000 | 10,805,000 | |
CBS Corp. | 3.375 | 03-01-22 | 7,360,000 | 7,270,036 | |
CBS Corp. | 3.700 | 08-15-24 | 11,475,000 | 11,077,830 | |
Cengage Learning, Inc. (B)(C) | 9.500 | 06-15-24 | 15,355,000 | 11,554,638 | |
Charter Communications Operating LLC | 4.200 | 03-15-28 | 29,265,000 | 27,239,702 | |
Charter Communications Operating LLC | 5.750 | 04-01-48 | 26,490,000 | 24,693,428 | |
Charter Communications Operating LLC | 6.484 | 10-23-45 | 27,615,000 | 27,629,307 | |
Clear Channel Worldwide Holdings, Inc. | 6.500 | 11-15-22 | 11,972,000 | 12,155,172 | |
CSC Holdings LLC (B) | 5.375 | 02-01-28 | 7,545,000 | 7,092,300 | |
CSC Holdings LLC (B) | 5.500 | 04-15-27 | 9,225,000 | 8,856,000 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK BOND FUND | 17 |
Rate (%) | Maturity date | Par value^ | Value | ||
Communication services (continued) | |||||
Media (continued) | |||||
CSC Holdings LLC (B) | 7.500 | 04-01-28 | 11,010,000 | $11,340,080 | |
McGraw-Hill Global Education Holdings LLC (B)(C) | 7.875 | 05-15-24 | 10,220,000 | 8,354,850 | |
MDC Partners, Inc. (B)(C) | 6.500 | 05-01-24 | 13,462,000 | 11,442,700 | |
Meredith Corp. (B) | 6.875 | 02-01-26 | 21,445,000 | 21,927,513 | |
Myriad International Holdings BV (B) | 4.850 | 07-06-27 | 4,575,000 | 4,333,756 | |
Myriad International Holdings BV (B) | 5.500 | 07-21-25 | 18,235,000 | 18,184,562 | |
National CineMedia LLC | 6.000 | 04-15-22 | 5,671,000 | 5,692,266 | |
Sinclair Television Group, Inc. (B) | 5.125 | 02-15-27 | 9,535,000 | 8,486,150 | |
Sirius XM Radio, Inc. (B) | 5.000 | 08-01-27 | 27,169,000 | 25,538,860 | |
Sirius XM Radio, Inc. (B) | 5.375 | 07-15-26 | 14,590,000 | 14,207,013 | |
Tribune Media Company | 5.875 | 07-15-22 | 14,200,000 | 14,377,500 | |
Viacom, Inc. | 4.375 | 03-15-43 | 8,275,000 | 6,713,867 | |
Viacom, Inc. | 5.850 | 09-01-43 | 11,477,000 | 11,390,355 | |
Viacom, Inc. (6.250% to 2-28-27, then 3 month LIBOR + 3.899%) | 6.250 | 02-28-57 | 13,438,000 | 12,874,331 | |
Warner Media LLC | 3.800 | 02-15-27 | 15,321,000 | 14,277,481 | |
WMG Acquisition Corp. (B) | 4.875 | 11-01-24 | 6,456,000 | 6,246,180 | |
WMG Acquisition Corp. (B) | 5.500 | 04-15-26 | 9,627,000 | 9,338,190 | |
Wireless telecommunication services 0.5% | |||||
CC Holdings GS V LLC | 3.849 | 04-15-23 | 13,076,000 | 12,854,265 | |
Comunicaciones Celulares SA (B)(C) | 6.875 | 02-06-24 | 8,530,000 | 8,703,799 | |
Millicom International Cellular SA (B) | 5.125 | 01-15-28 | 4,100,000 | 3,618,250 | |
MTN Mauritius Investments, Ltd. (B) | 4.755 | 11-11-24 | 11,810,000 | 10,609,726 | |
Oztel Holdings SPC, Ltd. (B) | 6.625 | 04-24-28 | 12,450,000 | 11,852,886 | |
Sprint Capital Corp. | 6.875 | 11-15-28 | 13,120,000 | 12,677,200 | |
Sprint Corp. | 7.875 | 09-15-23 | 12,485,000 | 13,109,250 | |
Consumer discretionary 3.9% | 542,804,729 | ||||
Auto components 0.2% | |||||
Lear Corp. | 5.250 | 01-15-25 | 13,462,000 | 13,782,622 | |
Nemak SAB de CV (B) | 4.750 | 01-23-25 | 9,775,000 | 9,139,625 | |
Automobiles 1.9% | |||||
BMW US Capital LLC (B) | 3.250 | 08-14-20 | 26,540,000 | 26,483,874 | |
Daimler Finance North America LLC (B) | 2.200 | 05-05-20 | 11,745,000 | 11,538,662 | |
Daimler Finance North America LLC (B) | 3.100 | 05-04-20 | 24,480,000 | 24,319,072 | |
Daimler Finance North America LLC (B) | 3.750 | 11-05-21 | 21,991,000 | 21,891,807 | |
Ford Motor Company | 4.750 | 01-15-43 | 10,094,000 | 7,622,655 | |
Ford Motor Credit Company LLC | 3.336 | 03-18-21 | 13,505,000 | 13,048,345 | |
Ford Motor Credit Company LLC | 3.813 | 10-12-21 | 32,300,000 | 31,302,574 | |
Ford Motor Credit Company LLC | 5.875 | 08-02-21 | 31,340,000 | 31,930,713 | |
General Motors Company | 4.875 | 10-02-23 | 25,399,000 | 25,422,486 | |
General Motors Financial Company, Inc. | 3.550 | 04-09-21 | 13,360,000 | 13,121,123 | |
General Motors Financial Company, Inc. | 4.000 | 01-15-25 | 21,879,000 | 20,552,692 | |
General Motors Financial Company, Inc. | 4.300 | 07-13-25 | 18,022,000 | 16,959,724 |
18 | JOHN HANCOCK BOND FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Consumer discretionary (continued) | |||||
Automobiles (continued) | |||||
JB Poindexter & Company, Inc. (B) | 7.125 | 04-15-26 | 4,032,000 | $3,840,480 | |
Mclaren Finance PLC (B) | 5.750 | 08-01-22 | 3,425,000 | 3,139,968 | |
Nissan Motor Acceptance Corp. (B) | 3.650 | 09-21-21 | 10,915,000 | 10,810,194 | |
Diversified consumer services 0.1% | |||||
Graham Holdings Company (B) | 5.750 | 06-01-26 | 4,640,000 | 4,698,000 | |
Laureate Education, Inc. (B) | 8.250 | 05-01-25 | 8,575,000 | 9,153,813 | |
Hotels, restaurants and leisure 0.4% | |||||
CCM Merger, Inc. (B) | 6.000 | 03-15-22 | 10,190,000 | 10,317,375 | |
Eldorado Resorts, Inc. (B) | 6.000 | 09-15-26 | 6,670,000 | 6,453,225 | |
Eldorado Resorts, Inc. | 7.000 | 08-01-23 | 4,535,000 | 4,739,075 | |
GLP Capital LP | 5.375 | 04-15-26 | 12,342,000 | 12,324,351 | |
Hilton Domestic Operating Company, Inc. (B) | 5.125 | 05-01-26 | 7,593,000 | 7,441,140 | |
Hilton Grand Vacations Borrower LLC | 6.125 | 12-01-24 | 6,962,000 | 6,953,298 | |
International Game Technology PLC (B) | 6.500 | 02-15-25 | 8,315,000 | 8,483,795 | |
Jacobs Entertainment, Inc. (B) | 7.875 | 02-01-24 | 6,564,000 | 6,890,231 | |
Waterford Gaming LLC (B)(D)(E) | 8.625 | 09-15-14 | 440,015 | 0 | |
Internet and direct marketing retail 1.0% | |||||
Amazon.com, Inc. | 3.150 | 08-22-27 | 30,440,000 | 28,919,055 | |
Amazon.com, Inc. | 4.050 | 08-22-47 | 16,802,000 | 15,813,530 | |
Expedia Group, Inc. | 3.800 | 02-15-28 | 31,110,000 | 28,281,548 | |
Expedia Group, Inc. | 5.000 | 02-15-26 | 31,037,000 | 31,145,927 | |
QVC, Inc. | 4.375 | 03-15-23 | 12,777,000 | 12,405,793 | |
QVC, Inc. | 5.125 | 07-02-22 | 8,809,000 | 8,924,163 | |
QVC, Inc. | 5.450 | 08-15-34 | 10,129,000 | 9,011,135 | |
Leisure products 0.1% | |||||
Vista Outdoor, Inc. | 5.875 | 10-01-23 | 10,612,000 | 10,054,870 | |
Multiline retail 0.2% | |||||
Dollar Tree, Inc. | 4.200 | 05-15-28 | 34,820,000 | 32,476,339 | |
Textiles, apparel and luxury goods 0.0% | |||||
Eagle Intermediate Global Holding BV (B) | 7.500 | 05-01-25 | 3,610,000 | 3,411,450 | |
Consumer staples 0.9% | 123,732,957 | ||||
Beverages 0.4% | |||||
Anheuser-Busch InBev Worldwide, Inc. | 4.600 | 04-15-48 | 13,365,000 | 12,003,602 | |
Constellation Brands, Inc. | 3.200 | 02-15-23 | 13,513,000 | 13,064,784 | |
Keurig Dr. Pepper, Inc. (B) | 3.551 | 05-25-21 | 27,287,000 | 27,039,637 | |
Food and staples retailing 0.1% | |||||
Alimentation Couche-Tard, Inc. (B) | 2.700 | 07-26-22 | 12,455,000 | 11,935,910 | |
Simmons Foods, Inc. (B) | 5.750 | 11-01-24 | 9,570,000 | 7,177,500 | |
Food products 0.2% | |||||
Conagra Brands, Inc. | 3.800 | 10-22-21 | 8,938,000 | 8,919,193 | |
Kraft Heinz Foods Company (B) | 4.875 | 02-15-25 | 11,657,000 | 11,696,251 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK BOND FUND | 19 |
Rate (%) | Maturity date | Par value^ | Value | ||
Consumer staples (continued) | |||||
Household products 0.1% | |||||
Kronos Acquisition Holdings, Inc. (B) | 9.000 | 08-15-23 | 10,785,000 | $9,275,100 | |
Personal products 0.1% | |||||
Natura Cosmeticos SA (B)(C) | 5.375 | 02-01-23 | 18,000,000 | 17,662,680 | |
Tobacco 0.0% | |||||
Vector Group, Ltd. (B) | 6.125 | 02-01-25 | 5,540,000 | 4,958,300 | |
Energy 5.4% | 737,242,648 | ||||
Energy equipment and services 0.5% | |||||
Antero Midstream Partners LP | 5.375 | 09-15-24 | 12,787,000 | 12,469,882 | |
Archrock Partners LP | 6.000 | 04-01-21 | 12,648,000 | 12,395,040 | |
Archrock Partners LP | 6.000 | 10-01-22 | 10,999,000 | 10,724,025 | |
CSI Compressco LP | 7.250 | 08-15-22 | 19,421,000 | 17,818,768 | |
CSI Compressco LP (B) | 7.500 | 04-01-25 | 11,120,000 | 10,869,800 | |
Inkia Energy, Ltd. (B)(C) | 5.875 | 11-09-27 | 4,600,000 | 4,283,796 | |
Oil, gas and consumable fuels 4.9% | |||||
Andeavor Logistics LP | 4.250 | 12-01-27 | 7,928,000 | 7,400,416 | |
Andeavor Logistics LP | 5.250 | 01-15-25 | 4,997,000 | 5,074,453 | |
Andeavor Logistics LP | 6.375 | 05-01-24 | 12,514,000 | 13,092,773 | |
Antero Resources Corp. | 5.125 | 12-01-22 | 16,595,000 | 16,263,100 | |
Cenovus Energy, Inc. | 4.450 | 09-15-42 | 15,104,000 | 11,182,947 | |
Cheniere Corpus Christi Holdings LLC | 5.125 | 06-30-27 | 22,002,000 | 21,314,438 | |
Cheniere Corpus Christi Holdings LLC | 5.875 | 03-31-25 | 7,805,000 | 8,039,150 | |
Chesapeake Energy Corp. | 7.500 | 10-01-26 | 8,772,000 | 8,136,030 | |
Cimarex Energy Company (C) | 4.375 | 06-01-24 | 9,814,000 | 9,589,076 | |
Colorado Interstate Gas Company LLC (B) | 4.150 | 08-15-26 | 9,455,000 | 9,012,495 | |
Columbia Pipeline Group, Inc. | 4.500 | 06-01-25 | 10,745,000 | 10,829,353 | |
Continental Resources, Inc. | 5.000 | 09-15-22 | 28,866,000 | 28,869,375 | |
DCP Midstream LP (7.375% to 12-15-22, then 3 month LIBOR + 5.148%) (F) | 7.375 | 12-15-22 | 17,017,000 | 15,676,911 | |
DCP Midstream Operating LP | 2.700 | 04-01-19 | 10,889,000 | 10,834,555 | |
DCP Midstream Operating LP (5.850% to 5-21-23, then 3 month LIBOR + 3.850%) (B) | 5.850 | 05-21-43 | 24,880,000 | 20,899,200 | |
Diamondback Energy, Inc. (B) | 4.750 | 11-01-24 | 10,392,000 | 10,080,240 | |
Enbridge Energy Partners LP | 4.375 | 10-15-20 | 18,997,000 | 19,162,375 | |
Enbridge Energy Partners LP (3 month LIBOR + 3.798%) (A)(C) | 6.194 | 10-01-77 | 13,728,000 | 13,744,893 | |
Enbridge, Inc. (5.500% to 7-15-27, then 3 month LIBOR + 3.418%) | 5.500 | 07-15-77 | 18,480,000 | 15,859,814 | |
Enbridge, Inc. (6.250% to 3-1-28, then 3 month LIBOR + 3.641%) | 6.250 | 03-01-78 | 14,073,000 | 12,507,780 | |
Energy Transfer LP | 5.875 | 01-15-24 | 9,565,000 | 9,863,906 | |
Energy Transfer Operating LP | 4.200 | 04-15-27 | 5,262,000 | 4,853,505 | |
Energy Transfer Operating LP | 5.150 | 03-15-45 | 14,320,000 | 12,310,536 |
20 | JOHN HANCOCK BOND FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Energy (continued) | |||||
Oil, gas and consumable fuels (continued) | |||||
Energy Transfer Partners LP | 5.000 | 10-01-22 | 2,134,000 | $2,171,724 | |
Energy Transfer Partners LP | 5.875 | 03-01-22 | 1,450,000 | 1,512,679 | |
Enterprise Products Operating LLC (5.250% to 8-16-27, then 3 month LIBOR + 3.033%) | 5.250 | 08-16-77 | 28,369,000 | 24,159,750 | |
Kinder Morgan Energy Partners LP | 7.750 | 03-15-32 | 9,445,000 | 11,147,983 | |
MPLX LP | 4.000 | 03-15-28 | 14,260,000 | 13,208,787 | |
MPLX LP | 4.800 | 02-15-29 | 8,470,000 | 8,334,729 | |
Murphy Oil Corp. | 5.750 | 08-15-25 | 9,531,000 | 9,195,123 | |
Newfield Exploration Company | 5.625 | 07-01-24 | 7,612,000 | 7,783,270 | |
Newfield Exploration Company | 5.750 | 01-30-22 | 9,097,000 | 9,278,940 | |
Nostrum Oil & Gas Finance BV (B) | 7.000 | 02-16-25 | 7,218,000 | 4,897,341 | |
ONEOK Partners LP | 5.000 | 09-15-23 | 6,423,000 | 6,554,651 | |
Parsley Energy LLC (B) | 5.625 | 10-15-27 | 12,760,000 | 12,122,000 | |
Petrobras Global Finance BV | 7.375 | 01-17-27 | 22,803,000 | 23,580,582 | |
Petroleos Mexicanos | 4.875 | 01-24-22 | 16,153,000 | 15,636,104 | |
Petroleos Mexicanos | 5.375 | 03-13-22 | 4,020,000 | 3,935,178 | |
Sabine Pass Liquefaction LLC | 4.200 | 03-15-28 | 12,705,000 | 11,943,640 | |
Sabine Pass Liquefaction LLC | 5.000 | 03-15-27 | 12,756,000 | 12,723,171 | |
Sabine Pass Liquefaction LLC | 5.750 | 05-15-24 | 22,120,000 | 23,298,394 | |
Sabine Pass Liquefaction LLC | 5.875 | 06-30-26 | 8,155,000 | 8,587,844 | |
SM Energy Company | 6.625 | 01-15-27 | 3,205,000 | 3,060,775 | |
Sunoco Logistics Partners Operations LP | 3.900 | 07-15-26 | 22,944,000 | 20,910,503 | |
Sunoco Logistics Partners Operations LP | 4.400 | 04-01-21 | 13,429,000 | 13,516,195 | |
Sunoco Logistics Partners Operations LP | 5.400 | 10-01-47 | 12,886,000 | 11,456,608 | |
Tallgrass Energy Partners LP (B) | 4.750 | 10-01-23 | 12,040,000 | 11,904,550 | |
Tapstone Energy LLC (B) | 9.750 | 06-01-22 | 4,410,000 | 3,599,663 | |
Targa Resources Partners LP (B) | 5.875 | 04-15-26 | 12,625,000 | 12,561,875 | |
Teekay Offshore Partners LP (B) | 8.500 | 07-15-23 | 12,755,000 | 12,436,125 | |
The Williams Companies, Inc. | 3.750 | 06-15-27 | 17,260,000 | 15,963,062 | |
The Williams Companies, Inc. | 4.550 | 06-24-24 | 23,390,000 | 23,418,275 | |
The Williams Companies, Inc. | 5.750 | 06-24-44 | 17,370,000 | 17,092,012 | |
WPX Energy, Inc. | 5.250 | 09-15-24 | 5,040,000 | 4,788,000 | |
YPF SA (B)(C) | 8.500 | 07-28-25 | 14,090,000 | 13,304,483 | |
Financials 13.7% | 1,880,579,011 | ||||
Banks 8.6% | |||||
Australia & New Zealand Banking Group, Ltd. | 2.125 | 08-19-20 | 17,985,000 | 17,582,392 | |
Australia & New Zealand Banking Group, Ltd. (6.750% to 6-15-26, then 5 Year U.S. ISDAFIX + 5.168%) (B)(F) | 6.750 | 06-15-26 | 10,390,000 | 10,364,025 | |
Banco Santander SA | 4.379 | 04-12-28 | 16,800,000 | 15,494,299 | |
Bank of America Corp. | 3.950 | 04-21-25 | 19,001,000 | 18,363,618 | |
Bank of America Corp. | 4.200 | 08-26-24 | 9,262,000 | 9,143,621 | |
Bank of America Corp. | 4.250 | 10-22-26 | 7,196,000 | 6,972,917 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK BOND FUND | 21 |
Rate (%) | Maturity date | Par value^ | Value | ||
Financials (continued) | |||||
Banks (continued) | |||||
Bank of America Corp. | 4.450 | 03-03-26 | 26,853,000 | $26,376,480 | |
Bank of America Corp. (6.300% to 3-10-26, then 3 month LIBOR + 4.553%) (F) | 6.300 | 03-10-26 | 27,285,000 | 28,444,613 | |
Banque Federative du Credit Mutuel SA (B) | 2.200 | 07-20-20 | 17,150,000 | 16,779,390 | |
Barclays Bank PLC | 2.650 | 01-11-21 | 36,340,000 | 35,367,376 | |
Barclays Bank PLC (B) | 10.179 | 06-12-21 | 7,980,000 | 9,012,071 | |
Barclays PLC | 4.375 | 01-12-26 | 12,490,000 | 11,816,764 | |
Barclays PLC (7.750% to 9-15-23, then 5 Year U.S. Swap Rate + 4.842%) (F) | 7.750 | 09-15-23 | 15,049,000 | 14,008,813 | |
BNP Paribas SA (7.000% to 8-16-28, then 5 Year U.S. Swap Rate + 3.980%) (B)(F) | 7.000 | 08-16-28 | 14,170,000 | 13,655,771 | |
BPCE SA (B) | 4.500 | 03-15-25 | 16,990,000 | 16,314,697 | |
BPCE SA (B) | 5.700 | 10-22-23 | 14,625,000 | 15,045,630 | |
Canadian Imperial Bank of Commerce | 2.700 | 02-02-21 | 40,985,000 | 40,269,430 | |
Citigroup, Inc. | 2.350 | 08-02-21 | 25,725,000 | 24,811,108 | |
Citigroup, Inc. | 4.600 | 03-09-26 | 30,298,000 | 29,784,627 | |
Citigroup, Inc. | 5.500 | 09-13-25 | 9,079,000 | 9,458,506 | |
Citigroup, Inc. (6.250% to 8-15-26, then 3 month LIBOR + 4.517%) (F) | 6.250 | 08-15-26 | 18,095,000 | 18,230,713 | |
Citizens Bank NA | 2.200 | 05-26-20 | 16,310,000 | 15,994,724 | |
Cooperatieve Rabobank UA (11.000% to 6-30-19, then 3 month LIBOR + 10.868%) (B)(F) | 11.000 | 06-30-19 | 11,224,000 | 11,672,960 | |
Credit Agricole SA (7.875% to 1-23-24, then 5 Year U.S. Swap Rate + 4.898%) (B)(F) | 7.875 | 01-23-24 | 14,420,000 | 14,559,023 | |
Fifth Third Bancorp (5.100% to 6-30-23, then 3 month LIBOR + 3.033%) (F) | 5.100 | 06-30-23 | 11,664,000 | 10,730,880 | |
Freedom Mortgage Corp. (B) | 8.125 | 11-15-24 | 13,759,000 | 12,211,113 | |
Freedom Mortgage Corp. (B) | 8.250 | 04-15-25 | 5,630,000 | 5,017,738 | |
HSBC Holdings PLC (6.375% to 9-17-24, then 5 Year U.S. ISDAFIX + 3.705%) (F) | 6.375 | 09-17-24 | 6,870,000 | 6,541,064 | |
HSBC Holdings PLC (6.875% to 6-1-21, then 5 Year U.S. ISDAFIX + 5.514%) (F) | 6.875 | 06-01-21 | 16,755,000 | 17,152,931 | |
HSBC Holdings PLC (3.950% to 5-18-23, then 3 month LIBOR + 0.987%) | 3.950 | 05-18-24 | 26,830,000 | 26,456,144 | |
ING Bank NV (B) | 5.800 | 09-25-23 | 14,899,000 | 15,475,430 | |
ING Groep NV (6.500% to 4-16-25, then 5 Year U.S. Swap Rate + 4.446%) (C)(F) | 6.500 | 04-16-25 | 7,180,000 | 6,741,302 | |
JPMorgan Chase & Co. | 2.400 | 06-07-21 | 29,495,000 | 28,652,159 | |
JPMorgan Chase & Co. | 3.200 | 06-15-26 | 17,787,000 | 16,556,160 |
22 | JOHN HANCOCK BOND FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Financials (continued) | |||||
Banks (continued) | |||||
JPMorgan Chase & Co. (3.514% to 6-18-21, then 3 month LIBOR + 0.610%) | 3.514 | 06-18-22 | 39,330,000 | $39,180,613 | |
JPMorgan Chase & Co. (6.750% to 2-1-24, then 3 month LIBOR + 3.780%) (F) | 6.750 | 02-01-24 | 17,898,000 | 18,931,610 | |
Lloyds Banking Group PLC | 4.450 | 05-08-25 | 40,395,000 | 39,611,625 | |
Lloyds Banking Group PLC (7.500% to 6-27-24, then 5 Year U.S. Swap Rate + 4.760%) (F) | 7.500 | 06-27-24 | 16,295,000 | 15,435,928 | |
M&T Bank Corp. (5.125% to 11-1-26, then 3 month LIBOR + 3.520%) (F) | 5.125 | 11-01-26 | 12,207,000 | 11,947,601 | |
Manufacturers & Traders Trust Company (3 month LIBOR + 0.640%) (A) | 2.961 | 12-01-21 | 9,230,000 | 9,162,270 | |
PNC Bank NA | 2.450 | 07-28-22 | 25,280,000 | 24,221,931 | |
PNC Bank NA | 2.500 | 01-22-21 | 32,345,000 | 31,688,432 | |
Regions Bank (3.374% to 8-13-20, then 3 month LIBOR + 0.500%) | 3.374 | 08-13-21 | 27,330,000 | 27,139,668 | |
Regions Financial Corp. | 2.750 | 08-14-22 | 25,595,000 | 24,559,741 | |
Santander Holdings USA, Inc. | 3.400 | 01-18-23 | 14,092,000 | 13,352,274 | |
Santander Holdings USA, Inc. | 3.700 | 03-28-22 | 23,915,000 | 23,352,789 | |
Santander Holdings USA, Inc. | 4.450 | 12-03-21 | 16,949,000 | 16,980,128 | |
Santander UK Group Holdings PLC (B) | 4.750 | 09-15-25 | 14,195,000 | 13,311,688 | |
Societe Generale SA (7.375% to 9-13-21, then 5 Year U.S. Swap Rate + 6.238%) (B)(F) | 7.375 | 09-13-21 | 16,225,000 | 15,981,625 | |
Societe Generale SA (8.000% to 9-29-25, then 5 Year U.S. ISDAFIX + 5.873%) (B)(C)(F) | 8.000 | 09-29-25 | 14,770,000 | 14,806,925 | |
SunTrust Bank | 2.450 | 08-01-22 | 17,865,000 | 17,136,535 | |
SunTrust Bank (2.590% to 1-29-20, then 3 month LIBOR + 0.298%) | 2.590 | 01-29-21 | 28,390,000 | 28,077,263 | |
The PNC Financial Services Group, Inc. (4.850% to 6-1-23, then 3 month LIBOR + 3.040%) (F) | 4.850 | 06-01-23 | 12,334,000 | 11,826,209 | |
The PNC Financial Services Group, Inc. (6.750% to 8-1-21, then 3 month LIBOR + 3.678%) (F) | 6.750 | 08-01-21 | 28,793,000 | 30,160,668 | |
The Royal Bank of Scotland Group PLC | 3.875 | 09-12-23 | 19,400,000 | 18,373,890 | |
The Royal Bank of Scotland Group PLC (8.000% to 8-10-25, then 5 Year U.S. Swap Rate + 5.720%) (F) | 8.000 | 08-10-25 | 12,630,000 | 12,440,550 | |
The Royal Bank of Scotland Group PLC (8.625% to 8-15-21, then 5 Year U.S. Swap Rate + 7.598%) (F) | 8.625 | 08-15-21 | 20,880,000 | 21,506,400 | |
Wells Fargo & Company (3 month LIBOR + 3.770%) (A)(F) | 6.104 | 03-15-19 | 13,787,000 | 13,849,042 | |
Wells Fargo & Company (5.875% to 6-15-25, then 3 month LIBOR + 3.990%) (F) | 5.875 | 06-15-25 | 41,771,000 | 42,544,599 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK BOND FUND | 23 |
Rate (%) | Maturity date | Par value^ | Value | ||
Financials (continued) | |||||
Banks (continued) | |||||
Wells Fargo Bank N.A. (3.325% to 7-23-20, then 3 month LIBOR + 0.490%) | 3.325 | 07-23-21 | 40,450,000 | $40,237,689 | |
Westpac Banking Corp. | 2.150 | 03-06-20 | 32,868,000 | 32,413,812 | |
Capital markets 1.4% | |||||
Ares Capital Corp. | 3.625 | 01-19-22 | 14,776,000 | 14,432,034 | |
Credit Suisse Group AG (7.500% to 12-11-23, then 5 Year U.S. Swap Rate + 4.598%) (B)(F) | 7.500 | 12-11-23 | 9,655,000 | 9,823,963 | |
Credit Suisse Group AG (7.500% to 7-17-23, then 5 Year U.S. Swap Rate + 4.600%) (B)(F) | 7.500 | 07-17-23 | 15,725,000 | 15,469,469 | |
FS Investment Corp. | 4.000 | 07-15-19 | 6,995,000 | 6,993,318 | |
FS Investment Corp. | 4.250 | 01-15-20 | 8,205,000 | 8,206,825 | |
Macquarie Bank, Ltd. (B) | 4.875 | 06-10-25 | 16,865,000 | 16,613,344 | |
Morgan Stanley | 3.875 | 01-27-26 | 14,048,000 | 13,543,549 | |
Morgan Stanley | 5.500 | 01-26-20 | 17,482,000 | 17,886,121 | |
Stifel Financial Corp. | 4.250 | 07-18-24 | 11,763,000 | 11,722,388 | |
The Goldman Sachs Group, Inc. | 3.850 | 01-26-27 | 32,665,000 | 30,739,763 | |
UBS AG (B) | 2.450 | 12-01-20 | 27,610,000 | 26,993,717 | |
UBS Group Funding Switzerland AG (2.859% to 8-15-22, then 3 month LIBOR + 0.954%) (B) | 2.859 | 08-15-23 | 24,715,000 | 23,610,741 | |
Consumer finance 1.2% | |||||
Ally Financial, Inc. | 5.125 | 09-30-24 | 24,868,000 | 25,186,310 | |
American Express Company | 2.500 | 08-01-22 | 25,570,000 | 24,394,265 | |
Capital One Financial Corp. | 3.450 | 04-30-21 | 25,600,000 | 25,413,197 | |
Capital One Financial Corp. | 3.500 | 06-15-23 | 13,510,000 | 13,138,167 | |
Credit Acceptance Corp. | 6.125 | 02-15-21 | 11,459,000 | 11,473,324 | |
Credito Real SAB de CV (B) | 7.250 | 07-20-23 | 6,865,000 | 6,521,750 | |
Credito Real SAB de CV (9.125% to 11-29-22, then 10 Year CMT + 7.026%) (B)(F) | 9.125 | 11-29-22 | 9,270,000 | 8,584,020 | |
Discover Financial Services | 3.950 | 11-06-24 | 23,893,000 | 23,322,413 | |
Discover Financial Services | 4.100 | 02-09-27 | 6,489,000 | 6,033,099 | |
Discover Financial Services | 5.200 | 04-27-22 | 2,750,000 | 2,827,804 | |
Enova International, Inc. (B) | 8.500 | 09-01-24 | 3,051,000 | 2,799,293 | |
Enova International, Inc. (B) | 8.500 | 09-15-25 | 14,087,000 | 12,783,953 | |
Springleaf Finance Corp. | 6.875 | 03-15-25 | 5,750,000 | 5,412,188 | |
Diversified financial services 0.7% | |||||
ASP AMC Merger Sub, Inc. (B) | 8.000 | 05-15-25 | 11,796,000 | 7,460,970 | |
Doric Nimrod Air Alpha 2013-1 Class B Pass Through Trust (B) | 6.125 | 11-30-21 | 512,653 | 523,675 | |
Jefferies Financial Group, Inc. | 5.500 | 10-18-23 | 13,886,000 | 14,248,523 | |
Jefferies Group LLC | 4.150 | 01-23-30 | 17,220,000 | 14,934,785 | |
Jefferies Group LLC | 4.850 | 01-15-27 | 16,145,000 | 15,377,675 |
24 | JOHN HANCOCK BOND FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Financials (continued) | |||||
Diversified financial services (continued) | |||||
Refinitiv US Holdings, Inc. (B) | 6.250 | 05-15-26 | 2,370,000 | $2,338,894 | |
Refinitiv US Holdings, Inc. (B) | 8.250 | 11-15-26 | 3,750,000 | 3,571,875 | |
Trident Merger Sub, Inc. (B) | 6.625 | 11-01-25 | 4,032,000 | 3,618,720 | |
Voya Financial, Inc. (5.650% to 5-15-23, then 3 month LIBOR + 3.580%) | 5.650 | 05-15-53 | 25,267,000 | 24,319,488 | |
Insurance 1.4% | |||||
Aquarius & Investments PLC (6.375% to 9-1-19, then 5 Year U.S. Swap Rate + 5.210%) | 6.375 | 09-01-24 | 14,550,000 | 14,670,940 | |
AXA SA | 8.600 | 12-15-30 | 6,874,000 | 8,644,055 | |
Brighthouse Financial, Inc. | 3.700 | 06-22-27 | 27,010,000 | 23,004,677 | |
CNO Financial Group, Inc. | 5.250 | 05-30-25 | 15,550,000 | 15,190,406 | |
Liberty Mutual Group, Inc. (7.800% to 3-15-37, then 3 month LIBOR + 3.576%) (B) | 7.800 | 03-07-87 | 22,486,000 | 25,184,320 | |
MetLife, Inc. (6.400% to 12-15-36, then 3 month LIBOR + 2.205%) | 6.400 | 12-15-66 | 11,718,000 | 11,835,180 | |
MetLife, Inc. (9.250% to 4-8-38, then 3 month LIBOR + 5.540%) (B) | 9.250 | 04-08-68 | 5,470,000 | 7,097,325 | |
Nationstar Mortgage Holdings, Inc. (B) | 8.125 | 07-15-23 | 8,821,000 | 8,909,210 | |
Nationstar Mortgage Holdings, Inc. (B) | 9.125 | 07-15-26 | 7,037,000 | 7,120,564 | |
Nippon Life Insurance Company (5.100% to 10-16-24, then 5 Year U.S. ISDAFIX + 3.650%) (B) | 5.100 | 10-16-44 | 14,480,000 | 14,516,200 | |
Prudential Financial, Inc. (5.875% to 9-15-22, then 3 month LIBOR + 4.175%) | 5.875 | 09-15-42 | 39,573,000 | 40,537,790 | |
Teachers Insurance & Annuity Association of America (B) | 4.270 | 05-15-47 | 16,955,000 | 15,921,888 | |
Thrifts and mortgage finance 0.4% | |||||
Ladder Capital Finance Holdings LLLP (B) | 5.250 | 03-15-22 | 3,350,000 | 3,316,500 | |
Ladder Capital Finance Holdings LLLP (B) | 5.250 | 10-01-25 | 7,640,000 | 6,971,500 | |
MGIC Investment Corp. | 5.750 | 08-15-23 | 3,176,000 | 3,231,580 | |
Quicken Loans, Inc. (B) | 5.250 | 01-15-28 | 12,835,000 | 11,423,150 | |
Quicken Loans, Inc. (B) | 5.750 | 05-01-25 | 15,125,000 | 14,330,938 | |
Radian Group, Inc. | 4.500 | 10-01-24 | 7,901,000 | 7,466,445 | |
Radian Group, Inc. | 5.250 | 06-15-20 | 5,191,000 | 5,275,354 | |
Stearns Holdings LLC (B) | 9.375 | 08-15-20 | 2,450,000 | 2,321,375 | |
Health care 2.3% | 323,205,845 | ||||
Biotechnology 0.3% | |||||
Celgene Corp. | 2.875 | 02-19-21 | 14,305,000 | 14,042,558 | |
Shire Acquisitions Investments Ireland DAC | 3.200 | 09-23-26 | 23,894,000 | 21,511,573 | |
Health care providers and services 1.7% | |||||
Centene Corp. (B) | 5.375 | 06-01-26 | 13,992,000 | 14,079,450 | |
CVS Health Corp. | 3.350 | 03-09-21 | 37,990,000 | 37,633,630 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK BOND FUND | 25 |
Rate (%) | Maturity date | Par value^ | Value | ||
Health care (continued) | |||||
Health care providers and services (continued) | |||||
CVS Health Corp. | 5.050 | 03-25-48 | 34,945,000 | $33,850,476 | |
DaVita, Inc. | 5.000 | 05-01-25 | 22,056,000 | 20,732,640 | |
Express Scripts Holding Company | 2.600 | 11-30-20 | 26,466,000 | 25,926,387 | |
HCA, Inc. | 5.250 | 04-15-25 | 14,114,000 | 14,255,140 | |
HCA, Inc. | 5.250 | 06-15-26 | 15,953,000 | 16,052,706 | |
HCA, Inc. | 7.500 | 02-15-22 | 11,870,000 | 12,819,600 | |
MEDNAX, Inc. (B) | 5.250 | 12-01-23 | 13,036,000 | 12,873,050 | |
MEDNAX, Inc. (B) | 6.250 | 01-15-27 | 7,730,000 | 7,701,013 | |
Select Medical Corp. | 6.375 | 06-01-21 | 14,438,000 | 14,541,954 | |
Team Health Holdings, Inc. (B)(C) | 6.375 | 02-01-25 | 3,197,000 | 2,637,525 | |
Universal Health Services, Inc. (B) | 4.750 | 08-01-22 | 12,840,000 | 12,952,350 | |
Universal Health Services, Inc. (B) | 5.000 | 06-01-26 | 12,296,000 | 12,126,930 | |
Life sciences tools and services 0.0% | |||||
IQVIA, Inc. (B) | 4.875 | 05-15-23 | 7,345,000 | 7,299,094 | |
Pharmaceuticals 0.3% | |||||
Bausch Health Companies, Inc. (B) | 6.125 | 04-15-25 | 19,900,000 | 18,680,130 | |
Bayer US Finance II LLC (B) | 3.500 | 06-25-21 | 11,080,000 | 10,967,684 | |
Teva Pharmaceutical Finance Netherlands III BV | 6.750 | 03-01-28 | 12,280,000 | 12,521,955 | |
Industrials 4.6% | 629,505,033 | ||||
Aerospace and defense 0.4% | |||||
Arconic, Inc. (C) | 5.125 | 10-01-24 | 14,478,000 | 14,043,660 | |
Huntington Ingalls Industries, Inc. (B) | 5.000 | 11-15-25 | 24,370,000 | 24,930,510 | |
Kratos Defense & Security Solutions, Inc. (B) | 6.500 | 11-30-25 | 11,415,000 | 11,757,450 | |
Textron, Inc. | 7.250 | 10-01-19 | 3,080,000 | 3,180,209 | |
Air freight and logistics 0.1% | |||||
XPO Logistics, Inc. (B) | 6.500 | 06-15-22 | 10,878,000 | 11,068,365 | |
Airlines 2.1% | |||||
Air Canada 2013-1 Class A Pass Through Trust (B) | 4.125 | 11-15-26 | 11,426,733 | 11,347,888 | |
Air Canada 2017-1 Class B Pass Through Trust (B) | 3.700 | 07-15-27 | 15,000,000 | 14,425,500 | |
America West Airlines 2000-1 Pass Through Trust | 8.057 | 01-02-22 | 482,857 | 509,462 | |
American Airlines 2000-1 Pass Through Trust | 6.977 | 11-23-22 | 3,766,015 | 3,902,721 | |
American Airlines 2013-2 Class A Pass Through Trust | 4.950 | 07-15-24 | 19,643,433 | 19,985,229 | |
American Airlines 2015-1 Class A Pass Through Trust | 3.375 | 11-01-28 | 14,481,524 | 13,700,970 | |
American Airlines 2015-1 Class B Pass Through Trust | 3.700 | 11-01-24 | 7,041,903 | 6,849,659 | |
American Airlines 2016-1 Class A Pass Through Trust | 4.100 | 07-15-29 | 19,774,574 | 19,523,437 |
26 | JOHN HANCOCK BOND FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Industrials (continued) | |||||
Airlines (continued) | |||||
American Airlines 2017-1 Class A Pass Through Trust | 4.000 | 08-15-30 | 8,147,475 | $7,956,824 | |
American Airlines 2017-1 Class AA Pass Through Trust | 3.650 | 08-15-30 | 14,082,569 | 13,644,601 | |
American Airlines 2017-2 Class A Pass Through Trust | 3.600 | 04-15-31 | 7,350,552 | 7,005,811 | |
Azul Investments LLP (B)(C) | 5.875 | 10-26-24 | 13,025,000 | 12,054,638 | |
British Airways 2013-1 Class A Pass Through Trust (B) | 4.625 | 06-20-24 | 12,267,710 | 12,543,734 | |
British Airways 2013-1 Class B Pass Through Trust (B) | 5.625 | 12-20-21 | 1,343,336 | 1,361,068 | |
British Airways 2018-1 Class A Pass Through Trust (B) | 4.125 | 03-20-33 | 7,989,488 | 7,876,836 | |
Continental Airlines 1999-1 Class A Pass Through Trust | 6.545 | 08-02-20 | 366,501 | 367,564 | |
Continental Airlines 2007-1 Class A Pass Through Trust | 5.983 | 10-19-23 | 8,260,486 | 8,624,773 | |
Continental Airlines 2012-1 Class B Pass Through Trust | 6.250 | 10-11-21 | 958,142 | 979,413 | |
Delta Air Lines 2002-1 Class G-1 Pass Through Trust | 6.718 | 07-02-24 | 5,739,527 | 6,048,887 | |
Delta Air Lines 2011-1 Class A Pass Through Trust | 5.300 | 10-15-20 | 697,338 | 700,964 | |
Delta Air Lines, Inc. | 3.625 | 03-15-22 | 21,690,000 | 21,260,658 | |
Delta Air Lines, Inc. | 4.375 | 04-19-28 | 19,535,000 | 18,652,640 | |
Northwest Airlines 2007-1 Class A Pass Through Trust | 7.027 | 05-01-21 | 3,609,673 | 3,719,407 | |
United Airlines 2014-2 Class A Pass Through Trust | 3.750 | 03-03-28 | 20,254,159 | 19,911,864 | |
United Airlines 2014-2 Class B Pass Through Trust | 4.625 | 03-03-24 | 11,363,928 | 11,379,837 | |
United Airlines 2016-1 Class A Pass Through Trust | 3.450 | 01-07-30 | 13,819,232 | 13,070,229 | |
United Airlines 2016-1 Class B Pass Through Trust | 3.650 | 01-07-26 | 24,431,916 | 23,332,479 | |
United Airlines 2018-1 Class B Pass Through Trust | 4.600 | 03-01-26 | 5,258,000 | 5,215,410 | |
US Airways 2010-1 Class A Pass Through Trust | 6.250 | 10-22-24 | 4,219,298 | 4,482,161 | |
US Airways 2012-1 Class A Pass Through Trust | 5.900 | 04-01-26 | 4,775,128 | 5,068,799 | |
Building products 0.1% | |||||
Masco Corp. | 4.450 | 04-01-25 | 7,870,000 | 7,832,494 | |
Owens Corning | 4.200 | 12-15-22 | 8,243,000 | 8,174,436 | |
Commercial services and supplies 0.2% | |||||
LSC Communications, Inc. (B)(C) | 8.750 | 10-15-23 | 9,168,000 | 9,626,400 | |
Prime Security Services Borrower LLC (B) | 9.250 | 05-15-23 | 7,355,000 | 7,796,300 | |
Tervita Escrow Corp. (B) | 7.625 | 12-01-21 | 8,285,000 | 8,119,300 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK BOND FUND | 27 |
Rate (%) | Maturity date | Par value^ | Value | ||
Industrials (continued) | |||||
Construction and engineering 0.2% | |||||
AECOM | 5.125 | 03-15-27 | 21,181,000 | $19,264,120 | |
Tutor Perini Corp. (B) | 6.875 | 05-01-25 | 3,182,000 | 3,054,720 | |
Electrical equipment 0.0% | |||||
EnerSys (B) | 5.000 | 04-30-23 | 3,523,000 | 3,434,925 | |
Industrial conglomerates 0.0% | |||||
General Electric Company (3 month LIBOR + 0.480%) (A) | 3.096 | 08-15-36 | 4,395,000 | 2,886,194 | |
Professional services 0.5% | |||||
Equifax, Inc. | 7.000 | 07-01-37 | 3,645,000 | 4,050,120 | |
IHS Markit, Ltd. (B) | 4.000 | 03-01-26 | 15,244,000 | 14,299,634 | |
IHS Markit, Ltd. (B) | 4.750 | 02-15-25 | 6,967,000 | 6,918,579 | |
IHS Markit, Ltd. | 4.750 | 08-01-28 | 16,800,000 | 16,385,880 | |
IHS Markit, Ltd. (B) | 5.000 | 11-01-22 | 5,886,000 | 5,992,537 | |
Verisk Analytics, Inc. | 4.000 | 06-15-25 | 15,771,000 | 15,593,946 | |
Trading companies and distributors 1.0% | |||||
AerCap Ireland Capital DAC | 4.625 | 10-30-20 | 16,685,000 | 16,781,670 | |
AerCap Ireland Capital DAC | 5.000 | 10-01-21 | 15,905,000 | 16,230,631 | |
Ahern Rentals, Inc. (B) | 7.375 | 05-15-23 | 18,213,000 | 16,300,635 | |
Aircastle, Ltd. | 4.400 | 09-25-23 | 9,561,000 | 9,435,428 | |
Aircastle, Ltd. (C) | 5.500 | 02-15-22 | 11,687,000 | 11,990,637 | |
Aircastle, Ltd. | 6.250 | 12-01-19 | 4,390,000 | 4,488,094 | |
Ashtead Capital, Inc. (B) | 4.375 | 08-15-27 | 13,870,000 | 12,552,350 | |
Avolon Holdings Funding, Ltd. (B) | 5.125 | 10-01-23 | 12,157,000 | 12,111,411 | |
H&E Equipment Services, Inc. | 5.625 | 09-01-25 | 7,015,000 | 6,541,488 | |
United Rentals North America, Inc. | 4.875 | 01-15-28 | 17,505,000 | 15,787,322 | |
United Rentals North America, Inc. | 5.500 | 07-15-25 | 13,715,000 | 13,372,125 | |
Information technology 2.7% | 373,484,018 | ||||
Communications equipment 0.4% | |||||
Motorola Solutions, Inc. | 4.600 | 02-23-28 | 27,034,000 | 26,046,110 | |
Telefonaktiebolaget LM Ericsson | 4.125 | 05-15-22 | 25,690,000 | 25,189,100 | |
Electronic equipment, instruments and components 0.2% | |||||
Tech Data Corp. | 4.950 | 02-15-27 | 25,798,000 | 24,319,854 | |
Trimble, Inc. | 4.900 | 06-15-28 | 12,985,000 | 12,787,349 | |
IT services 0.2% | |||||
Banff Merger Sub, Inc. (B) | 9.750 | 09-01-26 | 11,741,000 | 11,051,216 | |
VeriSign, Inc. | 4.750 | 07-15-27 | 7,792,000 | 7,431,620 | |
VeriSign, Inc. | 5.250 | 04-01-25 | 9,210,000 | 9,256,050 | |
Semiconductors and semiconductor equipment 1.0% | |||||
Advanced Micro Devices, Inc. (C) | 7.000 | 07-01-24 | 9,054,000 | 9,518,018 | |
Broadcom Corp. | 2.375 | 01-15-20 | 22,761,000 | 22,461,270 | |
Marvell Technology Group, Ltd. | 4.875 | 06-22-28 | 21,320,000 | 20,683,692 | |
Microchip Technology, Inc. (B) | 3.922 | 06-01-21 | 14,290,000 | 14,091,161 | |
Microchip Technology, Inc. (B) | 4.333 | 06-01-23 | 32,091,000 | 31,239,891 |
28 | JOHN HANCOCK BOND FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Information technology (continued) | |||||
Semiconductors and semiconductor equipment (continued) | |||||
NXP BV (B) | 4.625 | 06-01-23 | 30,960,000 | $30,359,995 | |
Qorvo, Inc. (B) | 5.500 | 07-15-26 | 6,239,000 | 6,051,830 | |
Software 0.3% | |||||
Citrix Systems, Inc. | 4.500 | 12-01-27 | 18,086,000 | 16,985,423 | |
j2 Cloud Services LLC (B) | 6.000 | 07-15-25 | 6,303,000 | 6,303,000 | |
Microsoft Corp. | 4.450 | 11-03-45 | 16,379,000 | 16,946,493 | |
Technology hardware, storage and peripherals 0.6% | |||||
Dell International LLC (B) | 6.020 | 06-15-26 | 34,300,000 | 34,688,436 | |
Dell International LLC (B) | 8.350 | 07-15-46 | 30,853,000 | 33,961,465 | |
Western Digital Corp. | 4.750 | 02-15-26 | 15,423,000 | 14,112,045 | |
Materials 1.7% | 241,336,193 | ||||
Chemicals 0.9% | |||||
Braskem Finance, Ltd. (B) | 7.000 | 05-07-20 | 14,225,000 | 14,758,438 | |
Braskem Netherlands Finance BV (B) | 4.500 | 01-10-28 | 15,890,000 | 14,618,800 | |
Cydsa SAB de CV (B) | 6.250 | 10-04-27 | 13,280,000 | 11,985,333 | |
Mexichem SAB de CV (B) | 4.000 | 10-04-27 | 8,450,000 | 7,277,563 | |
Mexichem SAB de CV (B) | 5.500 | 01-15-48 | 18,060,000 | 15,034,950 | |
Syngenta Finance NV (B) | 4.441 | 04-24-23 | 25,935,000 | 24,949,104 | |
Syngenta Finance NV (B) | 5.676 | 04-24-48 | 8,210,000 | 6,618,024 | |
The Chemours Company (C) | 6.625 | 05-15-23 | 20,381,000 | 20,686,715 | |
The Sherwin-Williams Company | 2.250 | 05-15-20 | 12,378,000 | 12,127,383 | |
Construction materials 0.1% | |||||
Cemex SAB de CV (B) | 6.125 | 05-05-25 | 14,390,000 | 13,810,083 | |
U.S. Concrete, Inc. | 6.375 | 06-01-24 | 4,930,000 | 4,671,175 | |
Containers and packaging 0.2% | |||||
Ardagh Packaging Finance PLC (B) | 6.000 | 02-15-25 | 14,710,000 | 13,698,688 | |
Klabin Finance SA (B) | 4.875 | 09-19-27 | 14,094,000 | 12,631,748 | |
Metals and mining 0.4% | |||||
Anglo American Capital PLC (B) | 4.750 | 04-10-27 | 12,725,000 | 12,210,021 | |
Commercial Metals Company | 5.375 | 07-15-27 | 5,017,000 | 4,578,013 | |
First Quantum Minerals, Ltd. (B) | 6.875 | 03-01-26 | 8,250,000 | 7,074,375 | |
First Quantum Minerals, Ltd. (B) | 7.500 | 04-01-25 | 5,000,000 | 4,500,000 | |
Vale Overseas, Ltd. | 6.250 | 08-10-26 | 10,740,000 | 11,464,950 | |
Vedanta Resources PLC (B) | 6.125 | 08-09-24 | 8,640,000 | 7,382,724 | |
Vedanta Resources PLC (B) | 6.375 | 07-30-22 | 8,415,000 | 7,699,725 | |
Paper and forest products 0.1% | |||||
Norbord, Inc. (B) | 6.250 | 04-15-23 | 7,025,000 | 7,033,781 | |
Suzano Austria GmbH (B) | 6.000 | 01-15-29 | 6,460,000 | 6,524,600 | |
Real estate 0.8% | 114,891,117 | ||||
Equity real estate investment trusts 0.8% | |||||
American Homes 4 Rent LP | 4.250 | 02-15-28 | 17,230,000 | 16,273,903 | |
American Tower Corp. | 3.550 | 07-15-27 | 25,750,000 | 23,660,050 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK BOND FUND | 29 |
Rate (%) | Maturity date | Par value^ | Value | ||
Real estate (continued) | |||||
Equity real estate investment trusts (continued) | |||||
American Tower Corp. | 4.700 | 03-15-22 | 11,649,000 | $11,927,454 | |
Equinix, Inc. | 5.375 | 05-15-27 | 11,766,000 | 11,589,510 | |
Iron Mountain, Inc. | 5.750 | 08-15-24 | 15,477,000 | 14,799,881 | |
Omega Healthcare Investors, Inc. | 4.500 | 01-15-25 | 8,455,000 | 8,211,078 | |
Ventas Realty LP | 3.500 | 02-01-25 | 13,534,000 | 12,872,222 | |
VEREIT Operating Partnership LP | 4.600 | 02-06-24 | 15,592,000 | 15,557,019 | |
Utilities 1.7% | 231,363,620 | ||||
Electric utilities 0.6% | |||||
ABY Transmision Sur SA (B) | 6.875 | 04-30-43 | 9,550,092 | 10,505,101 | |
Electricite de France SA (B) | 3.625 | 10-13-25 | 6,905,000 | 6,533,379 | |
Electricite de France SA (5.250% to 1-29-23, then 10 Year U.S. Swap Rate + 3.709%) (B)(F) | 5.250 | 01-29-23 | 24,220,000 | 23,208,815 | |
Emera US Finance LP | 3.550 | 06-15-26 | 9,516,000 | 8,893,821 | |
Empresa Electrica Angamos SA (B) | 4.875 | 05-25-29 | 10,207,340 | 9,722,593 | |
Instituto Costarricense de Electricidad (B) | 6.375 | 05-15-43 | 9,730,000 | 7,200,297 | |
Israel Electric Corp., Ltd. (B) | 6.875 | 06-21-23 | 6,630,000 | 7,203,316 | |
Southern California Edison Company (6.250% to 2-1-22, then 3 month LIBOR + 4.199%) (F) | 6.250 | 02-01-22 | 5,830,000 | 5,669,675 | |
Gas utilities 0.1% | |||||
AmeriGas Partners LP | 5.500 | 05-20-25 | 9,191,000 | 8,513,164 | |
Independent power and renewable electricity producers 0.7% | |||||
Clearway Energy Operating LLC | 5.375 | 08-15-24 | 12,429,000 | 11,776,478 | |
Greenko Dutch BV (B) | 4.875 | 07-24-22 | 11,745,000 | 10,987,448 | |
Greenko Dutch BV (B) | 5.250 | 07-24-24 | 7,035,000 | 6,287,180 | |
NextEra Energy Capital Holdings, Inc. | 3.550 | 05-01-27 | 25,890,000 | 24,426,974 | |
NextEra Energy Operating Partners LP (B) | 4.500 | 09-15-27 | 5,100,000 | 4,679,250 | |
NRG Energy, Inc. | 6.250 | 05-01-24 | 23,998,000 | 24,537,955 | |
NRG Energy, Inc. | 6.625 | 01-15-27 | 16,610,000 | 16,920,109 | |
Multi-utilities 0.3% | |||||
CenterPoint Energy, Inc. | 2.500 | 09-01-22 | 10,300,000 | 9,740,714 | |
Dominion Energy, Inc. | 2.579 | 07-01-20 | 14,875,000 | 14,628,325 | |
Enable Midstream Partners LP | 4.950 | 05-15-28 | 21,160,000 | 19,929,026 | |
Convertible bonds 0.1% | $8,750,163 | ||||
(Cost $9,167,966) | |||||
Utilities 0.1% | 8,750,163 | ||||
Independent power and renewable electricity producers 0.1% | |||||
Clearway Energy, Inc. (B) | 3.250 | 06-01-20 | 9,235,000 | 8,750,163 |
30 | JOHN HANCOCK BOND FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Capital preferred securities 0.2% | $18,090,167 | ||||
(Cost $17,800,135) | |||||
Financials 0.2% | 18,090,167 | ||||
Banks 0.1% | |||||
BAC Capital Trust XIV, Series G (Greater of 3 month LIBOR + 0.400% or 4.000%) (A)(F) | 4.000 | 12-17-18 | 8,562,000 | 6,710,468 | |
Capital markets 0.1% | |||||
State Street Corp. (3 month LIBOR + 1.000%) (A) | 3.334 | 06-01-77 | 13,383,000 | 11,379,699 | |
Term loans (G) 0.3% | $35,282,917 | ||||
(Cost $35,677,633) | |||||
Communication services 0.1% | 12,639,879 | ||||
Entertainment 0.1% | |||||
Metro-Goldwyn-Mayer, Inc., 2018 2nd Lien Term Loan (1 month LIBOR + 4.500%) | 6.850 | 07-03-26 | 10,990,000 | 10,825,150 | |
Interactive media and services 0.0% | |||||
Ancestry.com Operations, Inc., 2017 1st Lien Term Loan (1 month LIBOR + 3.250%) | 5.600 | 10-19-23 | 1,837,700 | 1,814,729 | |
Energy 0.1% | 4,417,639 | ||||
Oil, gas and consumable fuels 0.1% | |||||
FTS International, Inc., New Term Loan B (1 month LIBOR + 4.750%) | 7.095 | 04-16-21 | 4,439,838 | 4,417,639 | |
Financials 0.0% | 4,403,143 | ||||
Capital markets 0.0% | |||||
LSF9 Atlantis Holdings LLC, 2017 Term Loan (1 month LIBOR + 6.000%) | 8.318 | 05-01-23 | 4,601,563 | 4,403,143 | |
Health care 0.1% | 13,822,256 | ||||
Health care providers and services 0.1% | |||||
Concentra, Inc., 2018 2nd Lien Term Loan (H) | TBD | 06-01-23 | 13,805,000 | 13,822,256 | |
Collateralized mortgage obligations 5.5% | $761,398,029 | ||||
(Cost $780,146,649) | |||||
Commercial and residential 4.3% | 592,287,074 | ||||
Americold LLC | |||||
Series 2010-ARTA, Class C (B) | 6.811 | 01-14-29 | 2,150,000 | 2,271,389 | |
Series 2010-ARTA, Class D (B) | 7.443 | 01-14-29 | 9,682,000 | 10,292,464 | |
Angel Oak Mortgage Trust I LLC | |||||
Series 2018-1, Class A1 (B)(I) | 3.258 | 04-27-48 | 4,117,428 | 4,102,098 | |
Series 2018-3, Class A1 (B)(I) | 3.649 | 09-25-48 | 10,153,418 | 10,165,028 | |
AOA Mortgage Trust Series 2015-1177, Class C (B)(I) | 3.110 | 12-13-29 | 6,611,000 | 6,426,482 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK BOND FUND | 31 |
Rate (%) | Maturity date | Par value^ | Value | ||
Commercial and residential (continued) | |||||
Arroyo Mortgage Trust Series 2018-1, Class A1 (B)(I) | 3.763 | 04-25-48 | 34,171,889 | $34,021,909 | |
Banc of America Merrill Lynch Commercial Mortgage, Inc. Series 2005-5, Class XC IO (B) | 0.035 | 10-10-45 | 2,664,152 | 2 | |
BBCMS Mortgage Trust | |||||
Series 2018-TALL, Class B (1 month LIBOR + 0.971%) (A)(B) | 3.278 | 03-15-37 | 13,854,000 | 13,814,908 | |
Series 2018-TALL, Class E (1 month LIBOR + 2.437%) (A)(B) | 4.744 | 03-15-37 | 9,525,000 | 9,498,076 | |
BBCMS Trust | |||||
Series 2015-MSQ, Class D (B)(I) | 4.123 | 09-15-32 | 7,060,000 | 6,972,326 | |
Series 2015-SRCH, Class D (B)(I) | 5.122 | 08-10-35 | 15,205,000 | 15,523,470 | |
Bear Stearns Commercial Mortgage Securities Trust Series 2005-PWR8, Class X1 IO (B) | 0.516 | 06-11-41 | 515,482 | 2,833 | |
BHMS Mortgage Trust Series 2018-ATLS, Class A (1 month LIBOR + 1.250%) (A)(B) | 3.557 | 07-15-35 | 14,230,000 | 14,212,050 | |
BWAY Mortgage Trust | |||||
Series 2013-1515, Class XB IO (B) | 0.534 | 03-10-33 | 46,410,000 | 1,084,398 | |
Series 2015-1740, Class XA IO (B) | 1.023 | 01-10-35 | 123,773,000 | 3,409,736 | |
BX Commercial Mortgage Trust | |||||
Series 2018-BIOA, Class D (1 month LIBOR + 1.321%) (A)(B) | 3.628 | 03-15-37 | 12,620,000 | 12,596,158 | |
Series 2018-IND, Class A (1 month LIBOR + 0.750%) (A)(B) | 3.057 | 11-15-35 | 29,267,000 | 29,211,993 | |
CGBAM Commercial Mortgage Trust Series 2015-SMRT, Class F (B)(I) | 3.912 | 04-10-28 | 4,975,000 | 4,923,335 | |
CGDBB Commercial Mortgage Trust Series 2017-BIOC, Class E (1 month LIBOR + 2.150%) (A)(B) | 4.457 | 07-15-32 | 9,920,000 | 9,913,918 | |
CHT Mortgage Trust Series 2017-CSMO, Class D (1 month LIBOR + 2.250%) (A)(B) | 4.557 | 11-15-36 | 17,587,000 | 17,638,635 | |
Citigroup Commercial Mortgage Trust Series 2017-1500, Class E (1 month LIBOR + 2.500%) (A)(B) | 4.807 | 07-15-32 | 4,600,000 | 4,584,692 | |
CLNS Trust Series 2017-IKPR, Class C (1 month LIBOR + 1.100%) (A)(B) | 3.418 | 06-11-32 | 5,645,000 | 5,630,789 | |
Cold Storage Trust Series 2017-ICE3, Class D (1 month LIBOR + 2.100%) (A)(B) | 4.407 | 04-15-36 | 14,675,000 | 14,703,941 | |
COLT Mortgage Loan Trust Series 2018-2, Class A1 (B)(I) | 3.470 | 07-27-48 | 3,802,491 | 3,775,146 | |
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 | 3,978,812 | |
Commercial Mortgage Trust (Cantor Fitzgerald/Deutsche Bank AG) | |||||
Series 2012-CR2, Class XA IO | 1.812 | 08-15-45 | 69,248,120 | 3,418,849 | |
Series 2012-CR3 Class XA IO | 2.031 | 10-15-45 | 97,255,365 | 5,674,471 |
32 | JOHN HANCOCK BOND FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Commercial and residential (continued) | |||||
Series 2013-CR6, Class XA IO | 1.202 | 03-10-46 | 37,710,508 | $1,090,034 | |
Series 2013-CR8, Class XA IO | 0.565 | 06-10-46 | 32,967,352 | 506,217 | |
Series 2014-CR15, Class XA IO | 1.231 | 02-10-47 | 83,204,954 | 2,659,388 | |
Commercial Mortgage Trust (Citigroup/Deutsche Bank AG) Series 2018-COR3, Class XA IO | 0.589 | 05-10-51 | 125,338,775 | 4,540,573 | |
Commercial Mortgage Trust (Deutsche Bank AG) | |||||
Series 2012-LC4, Class B (I) | 4.934 | 12-10-44 | 3,919,000 | 3,972,000 | |
Series 2013-300P, Class D (B)(I) | 4.540 | 08-10-30 | 17,960,000 | 17,972,631 | |
Series 2013-LC13, Class B (B)(I) | 5.009 | 08-10-46 | 5,820,000 | 6,024,503 | |
Series 2014-TWC, Class D (1 month LIBOR + 2.250%) (A)(B) | 4.565 | 02-13-32 | 7,630,000 | 7,637,169 | |
Commercial Mortgage Trust (Deutsche Bank AG/Morgan Stanley) Series 2014-PAT, Class D (1 month LIBOR + 2.150%) (A)(B) | 4.465 | 08-13-27 | 9,885,000 | 9,916,092 | |
Core Industrial Trust | |||||
Series 2015-CALW, Class F (B)(I) | 3.979 | 02-10-34 | 8,405,000 | 8,291,921 | |
Series 2015-CALW, Class XA IO (B) | 0.939 | 02-10-34 | 168,808,473 | 3,715,069 | |
Credit Suisse First Boston Mortgage Securities Corp. Series 2005-C1, Class AX IO (B) | 0.895 | 02-15-38 | 460,807 | 9 | |
DBGS Mortgage Trust Series 2018-BIOD, Class A (1 month LIBOR + 0.803%) (A)(B) | 3.110 | 05-15-35 | 22,719,615 | 22,577,102 | |
GAHR Commercial Mortgage Trust | |||||
Series 2015-NRF, Class BFX (B)(I) | 3.495 | 12-15-34 | 2,250,000 | 2,237,317 | |
Series 2015-NRF, Class DFX (B)(I) | 3.495 | 12-15-34 | 13,055,000 | 12,968,355 | |
Series 2015-NRF, Class EFX (B)(I) | 3.495 | 12-15-34 | 10,160,000 | 10,029,904 | |
Galton Funding Mortgage Trust Series 2018-1, Class A43 (B)(I) | 3.500 | 11-25-57 | 7,400,182 | 7,341,541 | |
GE Capital Commercial Mortgage Corp. Series 2005-C1, Class XC IO (B) | 0.011 | 06-10-48 | 71,994 | 0 | |
GMACM Mortgage Loan Trust Series 2004-AR2, Class 3A (I) | 4.694 | 08-19-34 | 1,033,221 | 1,000,404 | |
Great Wolf Trust Series 2017-WOLF, Class E (1 month LIBOR + 3.100%) (A)(B) | 5.557 | 09-15-34 | 3,855,000 | 3,851,318 | |
GS Mortgage Securities Trust | |||||
Series 2011-GC5, Class XA IO (B) | 1.505 | 08-10-44 | 14,290,056 | 400,072 | |
Series 2012-GC17, Class XA IO | 2.400 | 05-10-45 | 96,157,583 | 4,194,682 | |
Series 2015-590M, Class C (B)(I) | 3.932 | 10-10-35 | 6,950,000 | 6,797,981 | |
Series 2016-RENT, Class D (B)(I) | 4.202 | 02-10-29 | 12,595,000 | 12,497,375 | |
Series 2017-485L, Class C (B)(I) | 4.115 | 02-10-37 | 6,250,000 | 6,105,248 | |
Series 2017-500K, Class F (1 month LIBOR + 1.800%) (A)(B) | 4.107 | 07-15-32 | 3,420,000 | 3,412,490 | |
Series 2017-500K, Class G (1 month LIBOR + 2.500%) (A)(B) | 4.807 | 07-15-32 | 1,755,000 | 1,751,694 | |
Series 2018-CHLL, Class E (1 month LIBOR + 2.350%) (A)(B) | 3.938 | 02-15-37 | 6,410,000 | 6,405,939 | |
Series 2005-GG4, Class XC IO (B) | 1.591 | 07-10-39 | 10,458 | 0 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK BOND FUND | 33 |
Rate (%) | Maturity date | Par value^ | Value | ||
Commercial and residential (continued) | |||||
HarborView Mortgage Loan Trust | |||||
Series 2005-2, Class X IO | 0.959 | 05-19-35 | 18,753,477 | $674,418 | |
Series 2007-3, Class ES IO (B) | 0.350 | 05-19-47 | 36,305,508 | 396,453 | |
Series 2007-4, Class ES IO | 0.350 | 07-19-47 | 38,219,015 | 574,833 | |
Series 2007-6, Class ES IO (B) | 0.343 | 08-19-37 | 31,542,729 | 558,432 | |
Hilton Orlando Trust Series 2018-ORL, Class D (1 month LIBOR + 1.700%) (A)(B) | 4.007 | 12-15-34 | 6,995,000 | 6,981,765 | |
Hudsons Bay Simon JV Trust Series 2015-HBFL, Class DFL (1 month LIBOR + 3.650%) (A)(B) | 6.214 | 08-05-34 | 5,030,000 | 5,020,703 | |
IMT Trust Series 2017-APTS, Class CFX (B)(I) | 3.613 | 06-15-34 | 6,800,000 | 6,574,769 | |
IndyMac Index Mortgage Loan Trust | |||||
Series 2005-AR12, Class AX2 IO | 0.802 | 07-25-35 | 50,362,975 | 695,734 | |
Series 2005-AR8, Class AX2 IO | 0.817 | 05-25-35 | 44,401,218 | 1,047,109 | |
Series 2005-AR18, Class 1X IO | 1.054 | 10-25-36 | 21,407,262 | 727,708 | |
Series 2005-AR18, Class 2X IO | 0.665 | 10-25-36 | 37,146,127 | 152,058 | |
Irvine Core Office Trust Series 2013-IRV, Class XA IO (B) | 1.211 | 05-15-48 | 15,354,585 | 371,369 | |
JPMBB Commercial Mortgage Securities Trust Series 2013-C14, Class XA IO | 0.709 | 08-15-46 | 13,030,877 | 268,489 | |
JPMorgan Chase Commercial Mortgage Securities Trust | |||||
Series 2011-C3A, Class XA IO (B) | 1.132 | 02-15-46 | 9,753,659 | 184,499 | |
Series 2011-C4, Class XA IO (B) | 1.384 | 07-15-46 | 7,344,495 | 171,694 | |
Series 2012-C14, Class XA IO (B) | 1.582 | 07-05-32 | 83,755,984 | 3,747,553 | |
Series 2015-MAR7, Class C (B) | 4.490 | 06-05-32 | 9,155,000 | 9,030,557 | |
Series 2018-PHH, Class A (1 month LIBOR + 0.910%) (A)(B) | 3.217 | 06-15-35 | 7,815,000 | 7,795,309 | |
Merrill Lynch Mortgage Trust | |||||
Series 2005-CIP1, Class XC IO (B) | 0.010 | 07-12-38 | 3,102,041 | 363 | |
Series 2006-C2, Class X IO (B) | 0.235 | 08-12-43 | 325,917 | 118 | |
Morgan Stanley Bank of America Merrill Lynch Trust | |||||
Series 2012-C5, Class XA IO (B) | 1.624 | 08-15-45 | 13,295,261 | 558,800 | |
Series 2012-C6, Class XA IO (B) | 1.776 | 11-15-45 | 7,889,373 | 396,177 | |
Morgan Stanley Capital I Trust | |||||
Series 2011-C3, Class XA IO (B) | 0.906 | 07-15-49 | 11,327,633 | 155,676 | |
Series 2017-CLS, Class D (1 month LIBOR + 1.400%) (A)(B) | 3.707 | 11-15-34 | 15,766,000 | 15,736,525 | |
Morgan Stanley Mortgage Loan Trust Series 2004-6AR, Class 2A2 (I) | 4.574 | 08-25-34 | 2,161,536 | 2,150,996 | |
MSCG Trust Series 2016-SNR, Class D (B) | 6.550 | 11-15-34 | 9,447,750 | 9,364,906 | |
Natixis Commercial Mortgage Securities Trust | |||||
Series 2018-285M, Class D (B)(I) | 3.917 | 11-15-32 | 4,290,000 | 4,186,353 | |
Series 2018-ALXA, Class C (B)(I) | 4.460 | 01-15-43 | 7,265,000 | 7,221,732 | |
One Market Plaza Trust Series 2017-1MKT, Class D (B) | 4.146 | 02-10-32 | 4,755,000 | 4,633,217 | |
Residential Accredit Loans, Inc. Series 2005-QO4, Class XIO IO | 1.604 | 12-25-45 | 17,215,025 | 1,450,264 |
34 | JOHN HANCOCK BOND FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Commercial and residential (continued) | |||||
Starwood Mortgage Residential Trust Series 2018-IMC1, Class A1 (B)(I) | 3.793 | 03-25-48 | 6,004,021 | $5,972,633 | |
Thornburg Mortgage Securities Trust Series 2004-1, Class II2A (I) | 2.883 | 03-25-44 | 1,976,966 | 1,932,954 | |
UBS Commercial Mortgage Trust Series 2012-C1, Class B | 4.822 | 05-10-45 | 3,455,000 | 3,569,979 | |
UBS-Barclays Commercial Mortgage Trust Series 2012-C2, Class XA IO (B) | 1.485 | 05-10-63 | 46,182,073 | 1,771,101 | |
Verus Securitization Trust Series 2018-3, Class A1 (B)(I) | 4.108 | 10-25-58 | 24,371,173 | 24,235,993 | |
VNDO Mortgage Trust Series 2013-PENN, Class D (B)(I) | 4.079 | 12-13-29 | 16,737,000 | 16,677,413 | |
Wells Fargo Commercial Mortgage Trust | |||||
Series 2013-120B, Class C (B)(I) | 2.800 | 03-18-28 | 14,425,000 | 14,198,665 | |
Series 2017-SMP, Class D (1 month LIBOR + 1.650%) (A)(B) | 3.957 | 12-15-34 | 5,105,000 | 5,107,864 | |
WFCG Commercial Mortgage Trust Series 2015-BXRP, Class D (1 month LIBOR + 2.571%) (A)(B) | 4.878 | 11-15-29 | 775,307 | 777,202 | |
WF-RBS Commercial Mortgage Trust | |||||
Series 2011-C2, Class XA IO (B) | 0.970 | 02-15-44 | 35,962,229 | 521,359 | |
Series 2011-C3, Class XA IO (B) | 1.503 | 03-15-44 | 22,360,224 | 580,293 | |
Series 2012-C10, Class XA IO (B) | 1.714 | 12-15-45 | 9,169,915 | 470,933 | |
Series 2012-C9, Class B XA IO (B) | 2.045 | 11-15-45 | 63,238,455 | 3,784,531 | |
Series 2013-C15, Class B (I) | 4.622 | 08-15-46 | 2,637,000 | 2,668,981 | |
Series 2013-C16, Class B (I) | 5.206 | 09-15-46 | 2,970,000 | 3,114,960 | |
Series 2013-C16, Class XA IO | 0.918 | 09-15-46 | 11,678,968 | 328,698 | |
U.S. Government Agency 1.2% | 169,110,955 | ||||
Federal Home Loan Mortgage Corp. | |||||
Series 2016-DNA3, Class M2 (1 month LIBOR + 2.000%) (A) | 4.315 | 12-25-28 | 2,401,643 | 2,424,254 | |
Series K005, Class AX IO | 1.531 | 11-25-19 | 89,546,226 | 985,331 | |
Series K006, Class BX1 IO | 5.542 | 02-25-20 | 4,478,024 | 263,053 | |
Series K010, Class X1 IO | 0.149 | 10-25-20 | 28,700,697 | 79,564 | |
Series K011, Class X1 IO | 0.321 | 11-25-20 | 47,404,177 | 182,563 | |
Series K014, Class X1 IO | 1.323 | 04-25-21 | 38,101,696 | 901,665 | |
Series K015, Class X1 IO | 1.743 | 07-25-21 | 40,031,058 | 1,385,091 | |
Series K017, Class X1 IO | 1.451 | 12-25-21 | 155,839,116 | 5,064,522 | |
Series K018, Class X1 IO | 1.496 | 01-25-22 | 102,553,094 | 3,409,706 | |
Series K021, Class X1 IO | 1.578 | 06-25-22 | 34,419,990 | 1,461,001 | |
Series K022, Class X1 IO | 1.361 | 07-25-22 | 134,038,264 | 4,982,444 | |
Series K024, Class X1 IO | 0.965 | 09-25-22 | 10,299,853 | 269,671 | |
Series K026, Class X1 IO | 1.123 | 11-25-22 | 12,789,555 | 411,646 | |
Series K709, Class X1 IO | 1.630 | 03-25-19 | 37,698,647 | 68,630 | |
Series K710, Class X1 IO | 1.865 | 05-25-19 | 66,284,218 | 259,576 | |
Series K711, Class X1 IO | 1.680 | 07-25-19 | 53,167,481 | 250,632 | |
Series KAIV, Class X1 IO | 1.273 | 06-25-21 | 23,570,181 | 564,249 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK BOND FUND | 35 |
Rate (%) | Maturity date | Par value^ | Value | ||
U.S. Government Agency (continued) | |||||
Series KS01, Class X1 IO | 1.450 | 01-25-23 | 13,399,943 | $493,681 | |
Series KS03, Class X IO | 0.300 | 08-25-25 | 38,222,694 | 443,827 | |
Series T-41, Class 3A (I) | 5.508 | 07-25-32 | 1,275 | 1,342 | |
Federal National Mortgage Association | |||||
Series 2001-50, Class BA | 7.000 | 10-25-41 | 209 | 229 | |
Series 2012-M5, Class X IO | 0.629 | 02-25-22 | 24,415,036 | 336,132 | |
Series 2012-MB, Class X1 IO | 2.224 | 12-25-19 | 2,309,701 | 23,786 | |
Government National Mortgage Association | |||||
Series 2008-90, Class IO | 1.875 | 12-16-50 | 2,664,621 | 462,878 | |
Series 2012-114, Class IO | 0.786 | 01-16-53 | 24,197,311 | 1,214,608 | |
Series 2012-120, Class IO | 0.779 | 02-16-53 | 10,483,538 | 502,719 | |
Series 2012-125, Class IO | 0.384 | 02-16-53 | 13,038,798 | 368,564 | |
Series 2012-70, Class IO | 0.454 | 08-16-52 | 6,921,815 | 117,823 | |
Series 2013-63, Class IO | 0.790 | 09-16-51 | 15,439,468 | 803,952 | |
Series 2016-174, Class IO | 0.900 | 11-16-56 | 48,650,961 | 3,630,500 | |
Series 2017-109, Class IO | 0.611 | 04-16-57 | 96,348,219 | 5,307,159 | |
Series 2017-124, Class IO | 0.706 | 01-16-59 | 122,486,220 | 7,863,517 | |
Series 2017-135, Class IO | 0.839 | 10-16-58 | 85,436,619 | 5,828,349 | |
Series 2017-140, Class IO | 0.610 | 02-16-59 | 73,175,124 | 4,392,278 | |
Series 2017-159, Class IO | 0.545 | 06-16-59 | 98,592,626 | 5,409,206 | |
Series 2017-169, Class IO | 0.733 | 01-16-60 | 176,774,856 | 11,522,592 | |
Series 2017-20, Class IO | 0.748 | 12-16-58 | 191,822,106 | 11,579,859 | |
Series 2017-22, Class IO | 1.022 | 12-16-57 | 38,674,404 | 3,389,347 | |
Series 2017-3, Class IO | 0.908 | 09-16-58 | 93,666,870 | 6,928,997 | |
Series 2017-41, Class IO | 0.791 | 07-16-58 | 65,660,576 | 4,526,128 | |
Series 2017-46, Class IO | 0.620 | 11-16-57 | 83,981,612 | 4,916,636 | |
Series 2017-61, Class IO | 0.768 | 05-16-59 | 54,317,234 | 4,006,206 | |
Series 2017-74, Class IO | 0.778 | 09-16-58 | 121,976,322 | 7,427,590 | |
Series 2017-89, Class IO | 0.766 | 07-16-59 | 121,606,214 | 8,787,180 | |
Series 2018-081, Class IO | 0.448 | 01-16-60 | 34,896,279 | 1,824,112 | |
Series 2018-114, Class IO | 0.540 | 04-16-60 | 182,741,018 | 10,905,125 | |
Series 2018-35, Class IO | 0.523 | 03-16-60 | 139,953,670 | 7,933,442 | |
Series 2018-43, Class IO | 0.577 | 05-16-60 | 216,661,706 | 12,373,463 | |
Series 2018-68, Class IO | 0.478 | 01-16-60 | 17,989,042 | 920,269 | |
Series 2018-69, Class IO | 0.535 | 04-16-60 | 98,674,773 | 5,983,589 | |
Series 2018-9, Class IO | 0.558 | 01-16-60 | 105,014,882 | 5,922,272 | |
Asset backed securities 13.7% | $1,880,352,132 | ||||
(Cost $1,893,071,682) | |||||
Asset backed securities 13.7% | 1,880,352,132 | ||||
AccessLex Institute | |||||
Series 2005-1, Class A4 (3 month LIBOR + 0.210%) (A) | 2.576 | 06-22-37 | 8,660,000 | 8,374,508 | |
Series 2006-1, Class A3 (3 month LIBOR + 0.200%) (A) | 2.889 | 08-25-37 | 34,605,956 | 33,893,804 | |
Series 2007-A, Class A3 (3 month LIBOR + 0.300%) (A) | 2.989 | 05-25-36 | 12,941,610 | 12,775,686 |
36 | JOHN HANCOCK BOND FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Asset backed securities (continued) | |||||
Ally Auto Receivables Trust | |||||
Series 2017-4, Class A4 | 1.960 | 07-15-22 | 12,120,000 | $11,865,428 | |
Series 2018-1, Class A3 | 2.350 | 06-15-22 | 12,120,000 | 12,016,039 | |
Ally Master Owner Trust Series 2018-1, Class A2 | 2.700 | 01-17-23 | 49,715,000 | 49,124,808 | |
American Express Credit Account Master Trust Series 2017-1, Class A | 1.930 | 09-15-22 | 42,965,000 | 42,377,084 | |
Americredit Automobile Receivables Trust | |||||
Series 2018-2, Class C | 3.590 | 06-18-24 | 8,990,000 | 8,986,292 | |
Series 2018-3, Class C | 3.740 | 10-18-24 | 8,303,000 | 8,327,925 | |
Amresco Residential Securities Corp. Mortgage Loan Trust Series 1998-1, Class A6 (I) | 6.510 | 08-25-27 | 6 | 6 | |
Applebee's Funding LLC Series 2014-1, Class A2 (B) | 4.277 | 09-05-44 | 25,546,950 | 25,254,736 | |
Arby's Funding LLC Series 2015-1A, Class A2 (B) | 4.969 | 10-30-45 | 21,209,050 | 21,369,178 | |
BA Credit Card Trust Series 2017-A1, Class A1 | 1.950 | 08-15-22 | 44,945,000 | 44,283,886 | |
BMW Vehicle Owner Trust | |||||
Series 2016-A, Class A4 | 1.370 | 12-27-22 | 12,115,000 | 11,887,233 | |
Series 2018-A, Class A3 | 2.350 | 04-25-22 | 22,545,000 | 22,317,059 | |
Capital One Multi-Asset Execution Trust | |||||
Series 2017-A1, Class A1 | 2.000 | 01-17-23 | 49,126,000 | 48,452,704 | |
Series 2017-A4, Class A4 | 1.990 | 07-17-23 | 7,824,000 | 7,664,509 | |
CarMax Auto Owner Trust | |||||
Series 2016-1, Class A4 | 1.880 | 06-15-21 | 8,125,000 | 8,026,623 | |
Series 2016-2, Class A4 | 1.680 | 09-15-21 | 7,480,000 | 7,340,514 | |
Series 2018-1, Class A3 | 2.480 | 11-15-22 | 12,551,000 | 12,389,086 | |
Chrysler Capital Auto Receivables Trust Series 2016-BA, Class A4 (B) | 1.870 | 02-15-22 | 5,620,000 | 5,544,073 | |
Citibank Credit Card Issuance Trust | |||||
Series 2016-A1, Class A1 | 1.750 | 11-19-21 | 47,080,000 | 46,502,234 | |
Series 2017-A3, Class A3 | 1.920 | 04-07-22 | 18,559,000 | 18,285,548 | |
Series 2017-A8, Class A8 | 1.860 | 08-08-22 | 2,899,000 | 2,837,629 | |
Series 2018-A1, Class A1 | 2.490 | 01-20-23 | 59,035,000 | 58,249,539 | |
CLI Funding LLC Series 2018-1A, Class A (B) | 4.030 | 04-18-43 | 23,696,581 | 23,590,467 | |
CNH Equipment Trust | |||||
Series 2017-C, Class A3 | 2.080 | 02-15-23 | 14,415,000 | 14,169,515 | |
Series 2018-B, Class A3 | 3.190 | 11-15-23 | 20,089,000 | 20,099,513 | |
Coinstar Funding LLC Series 2017-1A, Class A2 (B) | 5.216 | 04-25-47 | 19,847,750 | 19,987,532 | |
Collegiate Funding Services Education Loan Trust Series 2005-A, Class A4 (3 month LIBOR + 0.200%) (A) | 2.586 | 03-28-35 | 10,354,000 | 10,075,858 | |
ContiMortgage Home Equity Loan Trust Series 1995-2, Class A5 | 8.100 | 08-15-25 | 90,120 | 56,360 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK BOND FUND | 37 |
Rate (%) | Maturity date | Par value^ | Value | ||
Asset backed securities (continued) | |||||
CWABS Asset-Backed Certificates Trust Series 2004-10, Class AF5B | 4.654 | 02-25-35 | 1,542,856 | $1,534,693 | |
DB Master Finance LLC | |||||
Series 2015-1A, Class A2II (B) | 3.980 | 02-20-45 | 21,430,063 | 21,508,711 | |
Series 2017-1A, Class A2I (B) | 3.629 | 11-20-47 | 9,405,990 | 9,148,172 | |
Series 2017-1A, Class A2II (B) | 4.030 | 11-20-47 | 8,776,350 | 8,466,369 | |
Dell Equipment Finance Trust Series 2018-2, Class A3 (B) | 3.370 | 10-22-23 | 15,000,000 | 15,033,095 | |
Discover Card Execution Note Trust Series 2017-A6, Class A6 | 1.880 | 02-15-23 | 66,600,000 | 65,199,249 | |
DLL LLC Series 2018-ST2, Class A3 (B) | 3.460 | 01-20-22 | 14,375,000 | 14,412,543 | |
Domino's Pizza Master Issuer LLC Series 2017-1A, Class A23 (B) | 4.118 | 07-25-47 | 28,114,125 | 27,840,856 | |
Driven Brands Funding LLC Series 2015-1A, Class A2 (B) | 5.216 | 07-20-45 | 28,144,550 | 28,909,237 | |
Enterprise Fleet Financing LLC Series 2018-3, Class A2 (B) | 3.380 | 05-20-24 | 17,618,000 | 17,630,308 | |
Evergreen Credit Card Trust Series 2018-1, Class A (B) | 2.950 | 03-15-23 | 28,275,000 | 28,053,887 | |
FOCUS Brands Funding LLC Series 2017-1A, Class A2I (B) | 3.857 | 04-30-47 | 7,712,550 | 7,663,498 | |
Ford Credit Auto Owner Trust | |||||
Series 2015-1, Class A (B) | 2.120 | 07-15-26 | 39,230,000 | 38,750,676 | |
Series 2016-B, Class A4 | 1.520 | 08-15-21 | 5,392,000 | 5,305,437 | |
Series 2016-C, Class A4 | 1.400 | 02-15-22 | 10,305,000 | 10,052,174 | |
Series 2017-B, Class A4 | 1.870 | 09-15-22 | 4,580,000 | 4,455,294 | |
Series 2017-C, Class A4 | 2.160 | 03-15-23 | 23,335,000 | 22,814,940 | |
Series 2018-B, Class A3 | 3.330 | 04-15-23 | 18,543,000 | 18,588,239 | |
Ford Credit Floorplan Master Owner Trust | |||||
Series 2017-2, Class A1 | 2.160 | 09-15-22 | 30,750,000 | 30,149,634 | |
Series 2018-3, Class A1 | 3.520 | 10-15-23 | 35,740,000 | 35,901,884 | |
Goal Capital Funding Trust Series 2005-2, Class A4 (3 month LIBOR + 0.200%) (A) | 2.877 | 08-25-44 | 43,239,000 | 42,526,577 | |
Golden Credit Card Trust Series 2018-1A, Class A (B) | 2.620 | 01-15-23 | 25,080,000 | 24,788,789 | |
Hertz Vehicle Financing II LP Series 2016-3A, Class A (B) | 2.270 | 07-25-20 | 7,265,000 | 7,229,533 | |
Hilton Grand Vacations Trust | |||||
Series 2017-AA, Class A (B) | 2.660 | 12-26-28 | 12,741,793 | 12,515,645 | |
Series 2018-AA, Class A (B) | 3.540 | 02-25-32 | 6,135,819 | 6,123,334 | |
Honda Auto Receivables Owner Trust | |||||
Series 2016-4, Class A4 | 1.360 | 01-18-23 | 11,830,000 | 11,586,739 | |
Series 2017-2, Class A4 | 1.870 | 09-15-23 | 6,150,000 | 6,009,762 | |
Series 2017-3, Class A4 | 1.980 | 11-20-23 | 6,475,000 | 6,320,042 | |
Series 2018-2, Class A3 | 3.010 | 05-18-22 | 11,988,000 | 11,969,681 | |
Series 2018-3, Class A3 | 2.950 | 08-22-22 | 9,370,000 | 9,342,877 |
38 | JOHN HANCOCK BOND FUND��| SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Asset backed securities (continued) | |||||
Huntington Auto Trust Series 2016-1, Class A4 | 1.930 | 04-15-22 | 22,030,000 | $21,748,483 | |
Hyundai Auto Lease Securitization Trust Series 2018-A, Class A3 (B) | 2.810 | 04-15-21 | 16,155,000 | 16,057,406 | |
John Deere Owner Trust Series 2018-A, Class A3 | 2.660 | 04-18-22 | 7,720,000 | 7,668,922 | |
KeyCorp Student Loan Trust Series 2004-A, Class 1A2 (3 month LIBOR + 0.240%) (A) | 2.749 | 10-27-42 | 8,201,984 | 8,040,868 | |
Mill City Mortgage Loan Trust Series 2018-3, Class A1 (B)(I) | 3.500 | 08-25-58 | 8,841,254 | 8,746,338 | |
MMAF Equipment Finance LLC Series 2017-B, Class A3 (B) | 2.210 | 10-17-22 | 15,903,000 | 15,639,187 | |
MVW Owner Trust | |||||
Series 2014-1A, Class A (B) | 2.250 | 09-22-31 | 615,517 | 602,922 | |
Series 2015-1A, Class A (B) | 2.520 | 12-20-32 | 1,943,702 | 1,904,875 | |
Series 2018-1A, Class A (B) | 3.450 | 01-21-36 | 19,524,508 | 19,493,964 | |
Navient Private Education Loan Trust Series 2016-AA, Class A2A (B) | 3.910 | 12-15-45 | 23,031,398 | 23,282,491 | |
Nelnet Student Loan Trust Series 2006-1, Class A3 (3 month LIBOR + 0.450%) (A)(B) | 3.103 | 08-23-36 | 10,080,000 | 9,942,434 | |
New Residential Mortgage LLC | |||||
Series 2018-FNT1, Class A (B) | 3.610 | 05-25-23 | 13,265,206 | 13,206,038 | |
Series 2018-FNT2, Class A (B) | 3.790 | 07-25-54 | 7,922,661 | 7,917,980 | |
NextGear Floorplan Master Owner Trust | |||||
Series 2017-1A, Class A2 (B) | 2.540 | 04-18-22 | 20,342,000 | 20,145,700 | |
Series 2018-1A, Class A2 (B) | 3.220 | 02-15-23 | 6,055,000 | 6,022,590 | |
Series 2018-2A, Class A2 (B) | 3.690 | 10-16-23 | 15,170,000 | 15,267,576 | |
Nissan Auto Receivables Owner Trust | |||||
Series 2016-B, Class A4 | 1.540 | 10-17-22 | 9,010,000 | 8,821,179 | |
Series 2017-A, Class A3 | 1.740 | 08-16-21 | 200,000 | 197,825 | |
Series 2017-B, Class A4 | 1.950 | 10-16-23 | 14,650,000 | 14,304,872 | |
NRZ Excess Spread-Collateralized Notes | |||||
Series 2018-PLS1, Class A (B) | 3.193 | 01-25-23 | 6,121,042 | 6,057,668 | |
Series 2018-PLS2, Class A (B) | 3.265 | 02-25-23 | 21,554,601 | 21,428,914 | |
PFS Financing Corp. Series 2018-B, Class A (B) | 2.890 | 02-15-23 | 16,585,000 | 16,387,972 | |
Renaissance Home Equity Loan Trust Series 2005-2, Class AF4 | 4.934 | 08-25-35 | 6,919,092 | 7,031,828 | |
Santander Drive Auto Receivables Trust | |||||
Series 2018-2, Class C | 3.350 | 07-17-23 | 8,865,000 | 8,808,425 | |
Series 2018-3, Class C | 3.510 | 08-15-23 | 21,090,000 | 21,049,094 | |
Sierra Timeshare Receivables Funding LLC | |||||
Series 2018-2A, Class A (B) | 8.000 | 06-20-35 | 7,897,172 | 7,885,835 | |
Series 2018-3A, Class D (B) | 5.200 | 09-20-35 | 6,826,640 | 6,849,306 | |
SLM Private Credit Student Loan Trust Series 2006-A, Class A5 (3 month LIBOR + 0.290%) (A) | 2.624 | 06-15-39 | 5,992,817 | 5,851,888 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK BOND FUND | 39 |
Rate (%) | Maturity date | Par value^ | Value | ||
Asset backed securities (continued) | |||||
SMB Private Education Loan Trust Series 2015-C, Class A2A (B) | 2.750 | 07-15-27 | 10,016,649 | $9,900,836 | |
SoFi Professional Loan Program LLC Series 2017-E, Class A2A (B) | 1.860 | 11-26-40 | 6,790,660 | 6,692,626 | |
Sonic Capital LLC Series 2016-1A, Class A2 (B) | 4.472 | 05-20-46 | 3,570,865 | 3,580,613 | |
Structured Asset Securities Corp. Mortgage Loan Trust Series 2005-2XS, Class 2A2 (1 month LIBOR + 1.500%) (A) | 3.799 | 02-25-35 | 2,268,805 | 2,217,356 | |
SunTrust Student Loan Trust Series 2006-1A, Class A4 (3 month LIBOR + 0.190%) (A)(B) | 2.699 | 10-28-37 | 38,225,982 | 37,799,778 | |
Taco Bell Funding LLC | |||||
Series 2016-1A, Class A2II (B) | 4.377 | 05-25-46 | 1,970,000 | 1,974,689 | |
Series 2018-1A, Class A2I (B) | 4.318 | 11-25-48 | 24,865,000 | 24,857,242 | |
TAL Advantage V LLC Series 2014-1A, Class A (B) | 3.510 | 02-22-39 | 2,543,625 | 2,508,382 | |
Textainer Marine Containers VII, Ltd. Series 2018-1A, Class A (B) | 4.110 | 07-20-43 | 12,341,520 | 12,189,495 | |
Towd Point Mortgage Trust | |||||
Series 2015-1, Class A5 (B)(I) | 3.768 | 10-25-53 | 4,885,000 | 4,906,146 | |
Series 2015-2, Class 1M2 (B)(I) | 3.685 | 11-25-60 | 10,795,000 | 10,792,193 | |
Series 2016-5, Class A1 (B)(I) | 2.500 | 10-25-56 | 9,927,755 | 9,640,892 | |
Series 2017-1, Class A1 (B)(I) | 2.750 | 10-25-56 | 3,431,050 | 3,357,353 | |
Series 2017-2, Class A1 (B)(I) | 2.750 | 04-25-57 | 3,663,588 | 3,589,008 | |
Series 2018-1, Class A1 (B)(I) | 3.000 | 01-25-58 | 8,593,301 | 8,346,401 | |
Series 2018-3, Class A1 (B)(I) | 3.750 | 05-25-58 | 12,745,669 | 12,710,942 | |
Series 2018-4, Class A1 (B)(I) | 3.000 | 06-25-58 | 20,410,475 | 19,648,631 | |
Series 2018-5, Class A1A (B)(I) | 3.250 | 07-25-58 | 5,310,319 | 5,239,659 | |
Series 2018-6, Class A1A (B)(I) | 3.750 | 03-25-58 | 35,492,972 | 35,459,331 | |
Toyota Auto Receivables Owner Trust | |||||
Series 2016-C, Class A4 | 1.320 | 11-15-21 | 5,597,000 | 5,491,519 | |
Series 2017-C, Class A4 | 1.980 | 12-15-22 | 12,680,000 | 12,332,299 | |
Series 2018-A, Class A3 | 2.350 | 05-16-22 | 14,954,000 | 14,785,797 | |
Series 2018-C, Class A3 | 3.020 | 12-15-22 | 23,705,000 | 23,663,988 | |
Triton Container Finance V LLC Series 2018-1A, Class A (B) | 3.950 | 03-20-43 | 18,391,333 | 18,184,302 | |
Vantage Data Centers Issuer LLC Series 2018-1A, Class A2 (B) | 4.072 | 02-16-43 | 12,599,788 | 12,676,276 | |
Volvo Financial Equipment LLC Series 2018-1A, Class A3 (B) | 2.540 | 02-15-22 | 20,320,000 | 20,156,713 | |
VSE VOI Mortgage LLC Series 2017-A, Class A (B) | 2.330 | 03-20-35 | 12,862,017 | 12,439,596 | |
Wachovia Student Loan Trust Series 2006-1, Class B (3 month LIBOR + 0.240%) (A)(B) | 2.730 | 04-25-40 | 2,972,780 | 2,840,936 | |
Westgate Resorts LLC | |||||
Series 2014-1A, Class A (B) | 2.150 | 12-20-26 | 2,196,626 | 2,192,632 | |
Series 2014-1A, Class B (B) | 3.250 | 12-20-26 | 1,097,907 | 1,095,882 |
40 | JOHN HANCOCK BOND FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Asset backed securities (continued) | |||||
Series 2015-2A, Class B (B) | 4.000 | 07-20-28 | 1,901,015 | $1,895,025 | |
Series 2016-1A, Class A (B) | 3.500 | 12-20-28 | 1,740,018 | 1,733,906 | |
Series 2017-1A, Class A (B) | 3.050 | 12-20-30 | 5,468,916 | 5,415,898 | |
World Omni Auto Receivables Trust | |||||
Series 2017-B, Class A3 | 1.950 | 02-15-23 | 6,355,000 | 6,245,651 | |
Series 2018-A, Class A3 | 2.500 | 04-17-23 | 21,215,000 | 20,947,131 | |
World Omni Automobile Lease Securitization Trust Series 2018-B, Class A3 | 3.190 | 12-15-21 | 16,525,000 | 16,523,177 | |
Shares | Value | ||||
Preferred securities 0.2% | $33,422,510 | ||||
(Cost $33,727,943) | |||||
Consumer staples 0.0% | 2,488,992 | ||||
Food and staples retailing 0.0% | |||||
Ocean Spray Cranberries, Inc., 6.250% (B) | 28,284 | 2,488,992 | |||
Financials 0.1% | 12,241,666 | ||||
Banks 0.1% | |||||
GMAC Capital Trust I (3 month LIBOR + 5.785%), 8.401% (A) | 374,059 | 9,538,505 | |||
Wells Fargo & Company, Series L, 7.500% | 2,139 | 2,703,161 | |||
Utilities 0.1% | 18,691,852 | ||||
Multi-utilities 0.1% | |||||
Dominion Energy, Inc., 6.750% | 255,022 | 12,355,816 | |||
DTE Energy Company, 6.500% | 115,600 | 6,336,036 | |||
Yield (%) | Shares | Value | |||
Securities lending collateral 0.6% | $83,110,499 | ||||
(Cost $83,119,384) | |||||
John Hancock Collateral Trust (J) | 2.3749(K) | 8,308,890 | 83,110,499 | ||
Yield* (%) | Maturity date | Par value^ | Value | ||
Short-term investments 1.3% | $176,659,947 | ||||
(Cost $176,655,795) | |||||
Commercial paper 0.1% | 13,599,947 | ||||
Bank of Tokyo Mitsubishi UFJ, Ltd. | 2.180 | 12-04-18 | 13,600,000 | 13,599,947 | |
U.S. Government Agency 0.3% | 37,484,000 | ||||
Federal Agricultural Mortgage Corp. Discount Note | 2.050 | 12-03-18 | 9,122,000 | 9,122,000 | |
Federal Home Loan Bank Discount Note | 2.050 | 12-03-18 | 28,362,000 | 28,362,000 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK BOND FUND | 41 |
Par value^ | Value | ||||
Repurchase agreement 0.9% | 125,576,000 | ||||
Barclays Tri-Party Repurchase Agreement dated 11-30-18 at 2.260% to be repurchased at $111,006,902 on 12-3-18, collateralized by $111,576,200 U.S. Treasury Inflation Indexed Notes, 0.125% due 7-15-24 (valued at $113,227,053, including interest) | 110,986,000 | 110,986,000 | |||
Repurchase Agreement with State Street Corp. dated 11-30-18 at 1.050% to be repurchased at $14,591,277 on 12-3-18, collateralized by $15,180,000 U.S. Treasury Notes, 2.125% due 12-31-22 (valued at $14,881,895, including interest) | 14,590,000 | 14,590,000 |
Total investments (Cost $14,138,771,970) 100.0% | $13,752,046,184 | ||||
Other assets and liabilities, net 0.0% | 1,527,222 | ||||
Total net assets 100.0% | $13,753,573,406 |
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. |
(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 $3,390,354,517 or 24.7% of the fund's net assets as of 11-30-18. |
(C) | All or a portion of this security is on loan as of 11-30-18. |
(D) | Non-income producing - Issuer is in default. |
(E) | Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. |
(F) | Perpetual bonds have no stated maturity date. Date shown as maturity date is next call date. |
(G) | Term loans are variable rate obligations. The coupon rate shown represents the rate at period end. |
(H) | This position represents an unsettled loan commitment at period end. Certain details associated with this purchase are not known prior to the settlement date, including coupon rate, which is disclosed as TBD (To Be Determined). |
(I) | Variable or floating rate security, the interest rate of which adjusts periodically based on a weighted average of interest rates and prepayments on the underlying pool of assets. The interest rate shown is the current rate as of period end. |
(J) | Investment is an affiliate of the fund, the advisor and/or subadvisor. This security represents the investment of cash collateral received for securities lending. |
(K) | The rate shown is the annualized seven-day yield as of 11-30-18. |
* | 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. |
42 | JOHN HANCOCK BOND FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Financial statements |
Assets | |
Unaffiliated investments, at value (Cost $14,055,652,586) including $81,333,128 of securities loaned | $13,668,935,685 |
Affiliated investments, at value (Cost $83,119,384) | 83,110,499 |
Total investments, at value (Cost $14,138,771,970) | 13,752,046,184 |
Cash | 957 |
Dividends and interest receivable | 108,051,518 |
Receivable for fund shares sold | 27,189,954 |
Receivable for investments sold | 13,378,178 |
Receivable for securities lending income | 56,166 |
Other assets | 843,850 |
Total assets | 13,901,566,807 |
Liabilities | |
Distributions payable | 837,315 |
Payable for investments purchased | 35,533,531 |
Payable for fund shares repurchased | 25,082,423 |
Payable upon return of securities loaned | 83,131,945 |
Payable to affiliates | |
Accounting and legal services fees | 641,662 |
Transfer agent fees | 465,399 |
Distribution and service fees | 217,468 |
Trustees' fees | 12,904 |
Other liabilities and accrued expenses | 2,070,754 |
Total liabilities | 147,993,401 |
Net assets | $13,753,573,406 |
Net assets consist of | |
Paid-in capital | $14,337,223,936 |
Accumulated distributable earnings (accumulated loss) | (583,650,530) |
Net assets | $13,753,573,406 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK Bond Fund | 43 |
Net asset value per share | |
Based on net asset value and shares outstanding - the fund has an unlimited number of shares authorized with no par value | |
Class A ($1,451,338,239 ÷ 96,228,046 shares)1 | $15.08 |
Class B ($8,038,043 ÷ 533,015 shares)1 | $15.08 |
Class C ($238,565,365 ÷ 15,816,556 shares)1 | $15.08 |
Class I ($2,200,288,596 ÷ 145,867,419 shares) | $15.08 |
Class R2 ($76,708,722 ÷ 5,080,283 shares) | $15.10 |
Class R4 ($39,018,621 ÷ 2,583,298 shares) | $15.10 |
Class R6 ($5,913,712,908 ÷ 391,392,893 shares) | $15.11 |
Class NAV ($3,825,902,912 ÷ 253,294,375 shares) | $15.10 |
Maximum offering price per share | |
Class A (net asset value per share ÷ 96%)2 | $15.71 |
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. |
44 | JOHN HANCOCK Bond Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Investment income | |
Interest | $245,680,013 |
Dividends | 1,219,473 |
Securities lending | 194,313 |
Less foreign taxes withheld | (8,766) |
Total investment income | 247,085,033 |
Expenses | |
Investment management fees | 19,930,115 |
Distribution and service fees | 3,806,854 |
Accounting and legal services fees | 1,165,887 |
Transfer agent fees | 2,846,153 |
Trustees' fees | 95,096 |
Custodian fees | 904,033 |
State registration fees | 263,943 |
Printing and postage | 547,882 |
Professional fees | 131,319 |
Other | 153,546 |
Total expenses | 29,844,828 |
Less expense reductions | (531,162) |
Net expenses | 29,313,666 |
Net investment income | 217,771,367 |
Realized and unrealized gain (loss) | |
Net realized gain (loss) on | |
Unaffiliated investments and foreign currency transactions | (63,139,617) |
Affiliated investments | (12,561) |
(63,152,178) | |
Change in net unrealized appreciation (depreciation) of | |
Unaffiliated investments | (187,535,809) |
Affiliated investments | (8,885) |
(187,544,694) | |
Net realized and unrealized loss | (250,696,872) |
Decrease in net assets from operations | $(32,925,505) |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK Bond Fund | 45 |
Six months ended 11-30-18 (unaudited) | Year ended 5-31-18 | |
Increase (decrease) in net assets | ||
From operations | ||
Net investment income | $217,771,367 | $357,629,259 |
Net realized loss | (63,152,178) | (13,518,358) |
Change in net unrealized appreciation (depreciation) | (187,544,694) | (350,270,178) |
Decrease in net assets resulting from operations | (32,925,505) | (6,159,277) |
Distributions to shareholders | ||
From net investment income and net realized gain | ||
Class A | (24,909,099) | — |
Class B | (124,614) | — |
Class C | (3,410,387) | — |
Class I | (41,082,147) | — |
Class R2 | (1,273,179) | — |
Class R4 | (694,376) | — |
Class R6 | (112,980,401) | — |
Class NAV | (43,753,328) | — |
From net investment income | ||
Class A | — | (48,389,230) |
Class B | — | (336,749) |
Class C | — | (7,308,878) |
Class I | — | (122,341,916) |
Class R2 | — | (2,176,422) |
Class R4 | — | (1,119,337) |
Class R6 | — | (135,108,724) |
Class NAV | — | (72,157,128) |
Total distributions | (228,227,531) | (388,938,384) |
From fund share transactions | 1,985,281,512 | 2,756,184,357 |
Total increase | 1,724,128,476 | 2,361,086,696 |
Net assets | ||
Beginning of period | 12,029,444,930 | 9,668,358,234 |
End of period1 | $13,753,573,406 | $12,029,444,930 |
1 | Net assets - End of period includes undistributed net investment income of $6,802,604 in May 31, 2018. The SEC eliminated the requirement to disclose undistributed net investment income in the current reporting period. |
46 | JOHN HANCOCK Bond Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Financial highlights |
CLASS A SHARES Period ended | 11-30-181 | 5-31-18 | 5-31-17 | 5-31-16 | 5-31-15 | 5-31-14 |
Per share operating performance | ||||||
Net asset value, beginning of period | $15.41 | $15.93 | $15.79 | $16.06 | $16.26 | $16.37 |
Net investment income2 | 0.25 | 0.46 | 0.45 | 0.47 | 0.53 | 0.61 |
Net realized and unrealized gain (loss) on investments | (0.32) | (0.47) | 0.18 | (0.23) | (0.05) | 0.02 |
Total from investment operations | (0.07) | (0.01) | 0.63 | 0.24 | 0.48 | 0.63 |
Less distributions | ||||||
From net investment income | (0.26) | (0.51) | (0.49) | (0.51) | (0.63) | (0.67) |
From net realized gain | — | — | — | — | (0.05) | (0.07) |
Total distributions | (0.26) | (0.51) | (0.49) | (0.51) | (0.68) | (0.74) |
Net asset value, end of period | $15.08 | $15.41 | $15.93 | $15.79 | $16.06 | $16.26 |
Total return (%)3,4 | (0.47)5 | (0.11) | 4.07 | 1.59 | 3.02 | 4.06 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $1,451 | $1,488 | $1,492 | $1,904 | $1,740 | $1,411 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 0.786 | 0.81 | 0.89 | 0.93 | 0.94 | 0.98 |
Expenses including reductions | 0.786 | 0.79 | 0.83 | 0.87 | 0.89 | 0.92 |
Net investment income | 3.206 | 2.93 | 2.83 | 3.01 | 3.25 | 3.80 |
Portfolio turnover (%) | 45 | 74 | 987 | 56 | 66 | 77 |
1 | Six months ended 11-30-18. 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 | Does not reflect the effect of sales charges, if any. |
5 | Not annualized. |
6 | Annualized. |
7 | Excludes merger activity. |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK Bond Fund | 47 |
CLASS B SHARES Period ended | 11-30-181 | 5-31-18 | 5-31-17 | 5-31-16 | 5-31-15 | 5-31-14 |
Per share operating performance | ||||||
Net asset value, beginning of period | $15.40 | $15.93 | $15.79 | $16.06 | $16.26 | $16.37 |
Net investment income2 | 0.19 | 0.35 | 0.34 | 0.36 | 0.42 | 0.50 |
Net realized and unrealized gain (loss) on investments | (0.31) | (0.48) | 0.18 | (0.23) | (0.05) | 0.02 |
Total from investment operations | (0.12) | (0.13) | 0.52 | 0.13 | 0.37 | 0.52 |
Less distributions | ||||||
From net investment income | (0.20) | (0.40) | (0.38) | (0.40) | (0.52) | (0.56) |
From net realized gain | — | — | — | — | (0.05) | (0.07) |
Total distributions | (0.20) | (0.40) | (0.38) | (0.40) | (0.57) | (0.63) |
Net asset value, end of period | $15.08 | $15.40 | $15.93 | $15.79 | $16.06 | $16.26 |
Total return (%)3,4 | (0.76)5 | (0.87) | 3.35 | 0.88 | 2.31 | 3.34 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $8 | $11 | $16 | $23 | $28 | $33 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 1.486 | 1.51 | 1.59 | 1.63 | 1.64 | 1.68 |
Expenses including reductions | 1.486 | 1.49 | 1.53 | 1.57 | 1.59 | 1.62 |
Net investment income | 2.506 | 2.22 | 2.14 | 2.32 | 2.57 | 3.11 |
Portfolio turnover (%) | 45 | 74 | 987 | 56 | 66 | 77 |
1 | Six months ended 11-30-18. 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 | Does not reflect the effect of sales charges, if any. |
5 | Not annualized. |
6 | Annualized. |
7 | Excludes merger activity. |
48 | JOHN HANCOCK Bond Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS C SHARES Period ended | 11-30-181 | 5-31-18 | 5-31-17 | 5-31-16 | 5-31-15 | 5-31-14 |
Per share operating performance | ||||||
Net asset value, beginning of period | $15.41 | $15.93 | $15.79 | $16.06 | $16.26 | $16.37 |
Net investment income2 | 0.19 | 0.35 | 0.34 | 0.36 | 0.41 | 0.49 |
Net realized and unrealized gain (loss) on investments | (0.32) | (0.47) | 0.18 | (0.23) | (0.04) | 0.03 |
Total from investment operations | (0.13) | (0.12) | 0.52 | 0.13 | 0.37 | 0.52 |
Less distributions | ||||||
From net investment income | (0.20) | (0.40) | (0.38) | (0.40) | (0.52) | (0.56) |
From net realized gain | — | — | — | — | (0.05) | (0.07) |
Total distributions | (0.20) | (0.40) | (0.38) | (0.40) | (0.57) | (0.63) |
Net asset value, end of period | $15.08 | $15.41 | $15.93 | $15.79 | $16.06 | $16.26 |
Total return (%)3,4 | (0.82)5 | (0.80) | 3.35 | 0.88 | 2.31 | 3.34 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $239 | $269 | $299 | $310 | $250 | $162 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 1.486 | 1.51 | 1.59 | 1.63 | 1.64 | 1.68 |
Expenses including reductions | 1.486 | 1.49 | 1.53 | 1.57 | 1.59 | 1.62 |
Net investment income | 2.506 | 2.23 | 2.14 | 2.31 | 2.53 | 3.10 |
Portfolio turnover (%) | 45 | 74 | 987 | 56 | 66 | 77 |
1 | Six months ended 11-30-18. 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 | Does not reflect the effect of sales charges, if any. |
5 | Not annualized. |
6 | Annualized. |
7 | Excludes merger activity. |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK Bond Fund | 49 |
CLASS I SHARES Period ended | 11-30-181 | 5-31-18 | 5-31-17 | 5-31-16 | 5-31-15 | 5-31-14 |
Per share operating performance | ||||||
Net asset value, beginning of period | $15.41 | $15.93 | $15.80 | $16.06 | $16.26 | $16.37 |
Net investment income2 | 0.27 | 0.50 | 0.50 | 0.52 | 0.57 | 0.66 |
Net realized and unrealized gain (loss) on investments | (0.32) | (0.47) | 0.17 | (0.22) | (0.04) | 0.02 |
Total from investment operations | (0.05) | 0.03 | 0.67 | 0.30 | 0.53 | 0.68 |
Less distributions | ||||||
From net investment income | (0.28) | (0.55) | (0.54) | (0.56) | (0.68) | (0.72) |
From net realized gain | — | — | — | — | (0.05) | (0.07) |
Total distributions | (0.28) | (0.55) | (0.54) | (0.56) | (0.73) | (0.79) |
Net asset value, end of period | $15.08 | $15.41 | $15.93 | $15.80 | $16.06 | $16.26 |
Total return (%)3 | (0.34)4 | 0.19 | 4.33 | 1.97 | 3.35 | 4.40 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $2,200 | $2,236 | $5,385 | $1,367 | $793 | $302 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 0.515 | 0.51 | 0.57 | 0.61 | 0.63 | 0.66 |
Expenses including reductions | 0.505 | 0.49 | 0.51 | 0.56 | 0.57 | 0.60 |
Net investment income | 3.485 | 3.19 | 3.15 | 3.32 | 3.53 | 4.11 |
Portfolio turnover (%) | 45 | 74 | 986 | 56 | 66 | 77 |
1 | Six months ended 11-30-18. 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. |
50 | JOHN HANCOCK Bond Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS R2 SHARES Period ended | 11-30-181 | 5-31-18 | 5-31-17 | 5-31-16 | 5-31-15 | 5-31-14 |
Per share operating performance | ||||||
Net asset value, beginning of period | $15.42 | $15.95 | $15.81 | $16.08 | $16.27 | $16.38 |
Net investment income2 | 0.24 | 0.45 | 0.44 | 0.46 | 0.51 | 0.60 |
Net realized and unrealized gain (loss) on investments | (0.31) | (0.49) | 0.18 | (0.23) | (0.02) | 0.02 |
Total from investment operations | (0.07) | (0.04) | 0.62 | 0.23 | 0.49 | 0.62 |
Less distributions | ||||||
From net investment income | (0.25) | (0.49) | (0.48) | (0.50) | (0.63) | (0.66) |
From net realized gain | — | — | — | — | (0.05) | (0.07) |
Total distributions | (0.25) | (0.49) | (0.48) | (0.50) | (0.68) | (0.73) |
Net asset value, end of period | $15.10 | $15.42 | $15.95 | $15.81 | $16.08 | $16.27 |
Total return (%)3 | (0.46)4 | (0.27) | 3.97 | 1.55 | 2.97 | 4.01 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $77 | $83 | $56 | $56 | $39 | $7 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 0.885 | 0.92 | 0.98 | 1.03 | 0.98 | 1.05 |
Expenses including reductions | 0.875 | 0.89 | 0.92 | 0.97 | 0.93 | 0.99 |
Net investment income | 3.115 | 2.84 | 2.75 | 2.92 | 3.16 | 3.76 |
Portfolio turnover (%) | 45 | 74 | 986 | 56 | 66 | 77 |
1 | Six months ended 11-30-18. 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. |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK Bond Fund | 51 |
CLASS R4 SHARES Period ended | 11-30-181 | 5-31-18 | 5-31-17 | 5-31-16 | 5-31-152 |
Per share operating performance | |||||
Net asset value, beginning of period | $15.43 | $15.95 | $15.81 | $16.08 | $16.15 |
Net investment income3 | 0.26 | 0.49 | 0.49 | 0.51 | 0.06 |
Net realized and unrealized gain (loss) on investments | (0.32) | (0.48) | 0.17 | (0.22) | (0.03) |
Total from investment operations | (0.06) | 0.01 | 0.66 | 0.29 | 0.03 |
Less distributions | |||||
From net investment income | (0.27) | (0.53) | (0.52) | (0.56) | (0.10) |
Net asset value, end of period | $15.10 | $15.43 | $15.95 | $15.81 | $16.08 |
Total return (%)4 | (0.40)5 | 0.05 | 4.25 | 1.86 | 0.185 |
Ratios and supplemental data | |||||
Net assets, end of period (in millions) | $39 | $39 | $29 | $—6 | $—6 |
Ratios (as a percentage of average net assets): | |||||
Expenses before reductions | 0.747 | 0.76 | 0.82 | 0.82 | 0.807 |
Expenses including reductions | 0.637 | 0.64 | 0.66 | 0.66 | 0.647 |
Net investment income | 3.357 | 3.09 | 3.09 | 3.24 | 2.217 |
Portfolio turnover (%) | 45 | 74 | 988 | 56 | 669 |
1 | Six months ended 11-30-18. 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 applicable periods. |
5 | Not annualized. |
6 | Less than $500,000. |
7 | Annualized. |
8 | Excludes merger activity. |
9 | Portfolio turnover is shown for the period from 6-1-14 to 5-31-15. |
52 | JOHN HANCOCK Bond Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS R6 SHARES Period ended | 11-30-181 | 5-31-18 | 5-31-17 | 5-31-16 | 5-31-15 | 5-31-14 |
Per share operating performance | ||||||
Net asset value, beginning of period | $15.43 | $15.96 | $15.81 | $16.08 | $16.28 | $16.38 |
Net investment income2 | 0.28 | 0.53 | 0.52 | 0.54 | 0.59 | 0.68 |
Net realized and unrealized gain (loss) on investments | (0.31) | (0.49) | 0.19 | (0.23) | (0.04) | 0.03 |
Total from investment operations | (0.03) | 0.04 | 0.71 | 0.31 | 0.55 | 0.71 |
Less distributions | ||||||
From net investment income | (0.29) | (0.57) | (0.56) | (0.58) | (0.70) | (0.74) |
From net realized gain | — | — | — | — | (0.05) | (0.07) |
Total distributions | (0.29) | (0.57) | (0.56) | (0.58) | (0.75) | (0.81) |
Net asset value, end of period | $15.11 | $15.43 | $15.96 | $15.81 | $16.08 | $16.28 |
Total return (%)3 | (0.21)4 | 0.23 | 4.58 | 2.02 | 3.45 | 4.58 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $5,914 | $5,944 | $529 | $118 | $93 | $43 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 0.395 | 0.42 | 0.48 | 0.52 | 0.54 | 0.56 |
Expenses including reductions | 0.385 | 0.39 | 0.41 | 0.44 | 0.46 | 0.50 |
Net investment income | 3.605 | 3.37 | 3.27 | 3.45 | 3.66 | 4.26 |
Portfolio turnover (%) | 45 | 74 | 986 | 56 | 66 | 77 |
1 | Six months ended 11-30-18. 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. |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK Bond Fund | 53 |
CLASS NAV SHARES Period ended | 11-30-181 | 5-31-18 | 5-31-17 | 5-31-162 |
Per share operating performance | ||||
Net asset value, beginning of period | $15.43 | $15.95 | $15.81 | $15.78 |
Net investment income3 | 0.28 | 0.53 | 0.51 | 0.41 |
Net realized and unrealized gain (loss) on investments | (0.32) | (0.48) | 0.19 | 0.06 |
Total from investment operations | (0.04) | 0.05 | 0.70 | 0.47 |
Less distributions | ||||
From net investment income | (0.29) | (0.57) | (0.56) | (0.44) |
Net asset value, end of period | $15.10 | $15.43 | $15.95 | $15.81 |
Total return (%)4 | (0.27)5 | 0.30 | 4.51 | 3.035 |
Ratios and supplemental data | ||||
Net assets, end of period (in millions) | $3,826 | $1,959 | $1,862 | $2 |
Ratios (as a percentage of average net assets): | ||||
Expenses before reductions | 0.376 | 0.40 | 0.46 | 0.506 |
Expenses including reductions | 0.376 | 0.38 | 0.41 | 0.446 |
Net investment income | 3.636 | 3.34 | 3.28 | 3.446 |
Portfolio turnover (%) | 45 | 74 | 987 | 568 |
1 | Six months ended 11-30-18. 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 | Excludes merger activity. |
8 | The portfolio turnover is shown for the period from 6-1-15 to 5-31-16. |
54 | JOHN HANCOCK Bond Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
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 outstanding 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 and 529 plans. Class R6 shares are only available to certain retirement plans, institutions and other investors. Class NAV shares are offered to John Hancock affiliated funds of funds, retirement plans for employees of John Hancock and/or Manulife Financial Corporation, and certain 529 plans. Class B shares convert to Class A shares eight years after purchase. Class C shares convert to Class A shares ten years after purchase (certain exclusions may apply). 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.
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. Investments by the fund in open-end mutual funds, including John Hancock Collateral Trust (JHCT), are valued at their respective NAVs each business day.
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, 2018, by major security category or type:
Total value at 11-30-18 | Level 1 quoted price | Level 2 significant observable inputs | Level 3 significant observable inputs | |
Investments in securities: | ||||
Assets | ||||
U.S. Government and Agency obligations | $4,776,424,697 | — | $4,776,424,697 | — |
Foreign government obligations | 42,881,490 | — | 42,881,490 | — |
Corporate bonds | 5,935,673,633 | — | 5,935,673,633 | — |
Convertible bonds | 8,750,163 | — | 8,750,163 | — |
Capital preferred securities | 18,090,167 | — | 18,090,167 | — |
Term loans | 35,282,917 | — | 35,282,917 | — |
Collateralized mortgage obligations | 761,398,029 | — | 761,398,029 | — |
Asset backed securities | 1,880,352,132 | — | 1,880,352,132 | — |
Preferred securities | 33,422,510 | $30,933,518 | 2,488,992 | — |
Short-term investments | 176,659,947 | — | 176,659,947 | — |
Securities lending collateral | 83,110,499 | 83,110,499 | — | — |
Total investments in securities | $13,752,046,184 | $114,044,017 | $13,638,002,167 | — |
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.
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. Non-cash dividends, if any, are recorded at the fair market value of the securities received. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds from litigation.
Securities lending. The fund may lend its securities to earn additional income. The fund receives cash collateral from the borrower in an amount not less than the market value of the loaned securities. The fair value of securities loaned is determined daily and any additional required collateral is allocated to the fund on the next business day. The fund will invest its collateral in JHCT, an affiliate of the fund, which has a floating NAV and is registered with the Securities and Exchange Commission as an investment company. JHCT invests in short-term money market investments. The fund will receive the benefit of any gains and bear any losses generated by JHCT with respect to the cash collateral.
The fund has the right to recall loaned securities on demand. If a borrower fails to return loaned securities when due, then the lending agent is responsible and indemnifies the fund for the lent securities. The lending agent uses the collateral received from the borrower to purchase replacement securities of the same issue, type, class and series of the loaned securities. If the value of the collateral is less than the purchase cost of replacement securities, the lending agent is responsible for satisfying the shortfall but only to the extent that the shortfall is not due to any decrease in the value of JHCT.
Although the risk of the loss of the securities lent is mitigated by receiving collateral from the borrower and through lending agent indemnification, the fund could experience a delay in recovering securities or could experience a lower than expected return if the borrower fails to return the securities on a timely basis. The fund receives compensation for lending its securities by retaining a portion of the return on the investment of the collateral and compensation from fees earned from borrowers of the securities. Securities lending income received by the fund is net of fees retained by the securities lending agent. Net income received from JHCT is a component of securities lending income as recorded on the Statement of operations.
Obligations to repay collateral received by the fund are shown on the Statement of assets and liabilities as Payable upon return of securities loaned and are secured by the loaned securities. As of November 30, 2018, the fund loaned securities valued at $81,333,128 and received $83,131,945 of cash collateral.
Foreign investing. 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. Foreign investments are 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.
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 taxes. The fund may be subject to withholding tax on income, capital gains or repatriation taxes imposed by certain countries, a portion of which may be recoverable. Foreign taxes are accrued based upon the fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. Taxes are accrued based on gains realized by the fund as a result of certain foreign security sales. In certain circumstances, estimated taxes are accrued based on unrealized appreciation of such securities. Investment income is recorded net of foreign withholding taxes.
Mortgage and asset backed securities. The fund may invest in mortgage-related securities, such as mortgage-backed securities, and other asset-backed securities, which are debt obligations that represent interests in pools of mortgages or other income-bearing assets, such as consumer loans or receivables. Such securities often involve risks that are different from the risks associated with investing in other types of debt securities. Mortgage-backed and other asset-backed securities are subject to changes in the payment patterns of borrowers of the underlying debt. When interest rates fall, borrowers are more likely to refinance or prepay their debt before its stated maturity. This may result in the fund having to reinvest the proceeds in lower yielding securities, effectively reducing the fund's income. Conversely, if interest rates rise and borrowers repay their debt more slowly than expected, the time in which the mortgage-backed and other asset-backed securities are paid off could
be extended, reducing the fund's cash available for reinvestment in higher yielding securities. The timely payment of principal and interest of certain mortgage-related securities is guaranteed with the full faith and credit of the U.S. Government. Pools created and guaranteed by non-governmental issuers, including government-sponsored corporations (e.g. FNMA), may be supported by various forms of insurance or guarantees, but there can be no assurance that private insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. The fund is also subject to risks associated with securities with contractual cash flows including asset-backed and mortgage related securities such as collateralized mortgage obligations, mortgage pass-through securities and commercial mortgage-backed securities. The value, liquidity and related income of these securities are sensitive to changes in economic conditions, including real estate value, pre-payments, delinquencies and/or defaults, and may be adversely affected by shifts in the market's perception of the issuers and changes in interest rates.
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.
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. For the six months ended November 30, 2018, the fund had no borrowings under the line of credit. Commitment fees for the six months ended November 30, 2018 were $17,130.
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, 2018, the fund had short-term capital loss carryforward of $99,500,555 and a long-term capital loss carryforward of $3,703,447 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, 2018, 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. Distributions in excess of tax basis earnings and profits, if any, are reported in the fund's financial statements as a return of capital. The final determination of tax characteristics of the fund's distribution will occur at the end of the year and will subsequently be reported to shareholders.
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.
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. 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, 2018, this waiver amounted to 0.01% of the fund's average net assets (on an annualized basis). This agreement expires on June 30, 2020, unless renewed by mutual agreement of the fund and the Advisor based upon a determination that this is appropriate under the circumstances at that time.
For the six months ended November 30, 2018, the expense reductions amounted to the following:
Class | Expense reduction | Class | Expense reduction | |
Class A | $61,058 | Class R4 | $1,631 | |
Class B | 387 | Class R6 | 247,619 | |
Class C | 10,571 | Class NAV | 93,929 | |
Class I | 93,002 | Total | $511,415 | |
Class R2 | 3,218 |
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, 2018 were equivalent to a net annual effective rate of 0.31% 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, 2018 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. In addition, under a service plan for Class R2 and Class R4 shares, the fund pays for certain other services. 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, 2019, 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 $19,747 for Class R4 shares for the six months ended November 30, 2018.
Sales charges. Class A shares are assessed up-front sales charges, which resulted in payments to the Distributor amounting to $937,278 for the six months ended November 30, 2018. Of this amount, $130,546 was retained and used for printing prospectuses, advertising, sales literature and other purposes, $776,843 was paid as sales commissions to broker-dealers and $29,889 was paid as sales commissions to sales personnel of Signator Investors, Inc., which had been a broker-dealer affiliate of the Advisor through December 31, 2018.
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, 2018, CDSCs received by the Distributor amounted to $21,457, $2,220 and $16,211 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, 2018 were:
Class | Distribution and service fees | Transfer agent fees | ||||||
Class A | $2,218,305 | $819,819 | ||||||
Class B | 46,837 | 5,191 |
Class | Distribution and service fees | Transfer agent fees | ||||||
Class C | $1,279,425 | $141,846 | ||||||
Class I | — | 1,486,914 | ||||||
Class R2 | 193,307 | 4,998 | ||||||
Class R4 | 68,980 | 2,532 | ||||||
Class R6 | — | 384,853 | ||||||
Total | $3,806,854 | $2,846,153 |
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, 2018 and for the year ended May 31, 2018 were as follows:
Six months ended 11-30-18 | Year ended 5-31-18 | |||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||
Class A shares | ||||||||||||||||||||||||||
Sold | 8,869,905 | $135,613,364 | 21,887,726 | $345,828,099 | ||||||||||||||||||||||
Distributions reinvested | 1,556,553 | 23,767,481 | 2,911,368 | 45,902,001 | ||||||||||||||||||||||
Repurchased | (10,764,659 | ) | (164,442,238 | ) | (21,867,479 | ) | (344,905,160 | ) | ||||||||||||||||||
Net increase (decrease) | (338,201 | ) | $(5,061,393 | ) | 2,931,615 | $46,824,940 | ||||||||||||||||||||
Class B shares | ||||||||||||||||||||||||||
Sold | 3,513 | $53,408 | 18,927 | $300,933 | ||||||||||||||||||||||
Distributions reinvested | 7,669 | 117,120 | 19,758 | 311,910 | ||||||||||||||||||||||
Repurchased | (164,138 | ) | (2,508,452 | ) | (375,320 | ) | (5,927,880 | ) | ||||||||||||||||||
Net decrease | (152,956 | ) | $(2,337,924 | ) | (336,635 | ) | $(5,315,037 | ) | ||||||||||||||||||
Class C shares | ||||||||||||||||||||||||||
Sold | 892,350 | $13,619,170 | 3,337,080 | $52,866,981 | ||||||||||||||||||||||
Distributions reinvested | 213,845 | 3,265,779 | 443,759 | 6,998,341 | ||||||||||||||||||||||
Repurchased | (2,757,464 | ) | (42,100,939 | ) | (5,083,901 | ) | (80,072,600 | ) | ||||||||||||||||||
Net decrease | (1,651,269 | ) | $(25,215,990 | ) | (1,303,062 | ) | $(20,207,278 | ) | ||||||||||||||||||
Class I shares | ||||||||||||||||||||||||||
Sold | 29,991,150 | $458,478,466 | 137,277,308 | $2,179,294,701 | ||||||||||||||||||||||
Distributions reinvested | 2,474,180 | 37,783,959 | 7,379,408 | 116,931,943 | ||||||||||||||||||||||
Repurchased | (31,733,152 | ) | (484,553,932 | ) | (337,500,971 | ) | (5,383,274,455 | ) | ||||||||||||||||||
Net increase (decrease) | 732,178 | $11,708,493 | (192,844,255 | ) | $(3,087,047,811 | ) | ||||||||||||||||||||
Class R2 shares | ||||||||||||||||||||||||||
Sold | 738,035 | $11,293,851 | 3,610,889 | $56,839,227 | ||||||||||||||||||||||
Distributions reinvested | 73,763 | 1,127,535 | 124,247 | 1,959,971 | ||||||||||||||||||||||
Repurchased | (1,133,479 | ) | (17,382,286 | ) | (1,853,119 | ) | (29,292,890 | ) | ||||||||||||||||||
Net increase (decrease) | (321,681 | ) | $(4,960,900 | ) | 1,882,017 | $29,506,308 |
Six months ended 11-30-18 | Year ended 5-31-18 | |||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||
Class R4 shares | ||||||||||||||||||||||||||
Sold | 237,687 | $3,637,280 | 919,612 | $14,521,270 | ||||||||||||||||||||||
Distributions reinvested | 45,380 | 693,924 | 70,959 | 1,118,738 | ||||||||||||||||||||||
Repurchased | (244,636 | ) | (3,741,185 | ) | (284,985 | ) | (4,500,543 | ) | ||||||||||||||||||
Net increase | 38,431 | $590,019 | 705,586 | $11,139,465 | ||||||||||||||||||||||
Class R6 shares | ||||||||||||||||||||||||||
Sold | 45,922,665 | $703,717,212 | 378,518,553 | $6,030,978,006 | ||||||||||||||||||||||
Distributions reinvested | 7,371,115 | 112,743,719 | 8,596,941 | 134,873,802 | ||||||||||||||||||||||
Repurchased | (47,042,804 | ) | (719,426,922 | ) | (35,123,174 | ) | (550,078,548 | ) | ||||||||||||||||||
Net increase | 6,250,976 | $97,034,009 | 351,992,320 | $5,615,773,260 | ||||||||||||||||||||||
Class NAV shares | ||||||||||||||||||||||||||
Sold | 138,809,135 | $2,104,383,858 | 18,515,154 | $295,495,392 | ||||||||||||||||||||||
Distributions reinvested | 2,867,527 | 43,753,328 | 4,570,902 | 72,157,128 | ||||||||||||||||||||||
Repurchased | (15,389,344 | ) | (234,611,988 | ) | (12,844,953 | ) | (202,142,010 | ) | ||||||||||||||||||
Net increase | 126,287,318 | $1,913,525,198 | 10,241,103 | $165,510,510 | ||||||||||||||||||||||
Total net increase | 130,844,796 | $1,985,281,512 | 173,268,689 | $2,756,184,357 |
Affiliates of the fund owned 100% and 7% of shares of Class NAV and Class R6, respectively, on November 30, 2018. 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 $4,095,670,727 and $2,665,229,867, respectively, for the six months ended November 30, 2018. Purchases and sales of U.S. Treasury obligations aggregated $3,423,489,295 and $2,847,451,230, respectively, for the six months ended November 30, 2018.
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, 2018, funds within the John Hancock group of funds complex held 27.8% of the fund's net assets. The following funds had an affiliate ownership of 5% or more of the fund's net assets:
Fund | Affiliated concentration |
John Hancock Variable Insurance Trust Managed Volatility Balanced Portfolio | 6.3% |
John Hancock Funds II Multimanager Lifestyle Balanced Portfolio | 5.0% |
Note 8 — Investment in affiliated underlying funds
The fund may invest in affiliated underlying funds that are managed by the Advisor and its affiliates. Information regarding the fund's purchases and sales of the affiliated underlying funds as well as income and capital gains earned, if any, during the period is as follows:
Dividends and distributions | ||||||||||||||||||||||||||||||||||||||
Fund | Beginning share amount | Shares purchased | Shares sold | Ending share amount | Income distributions received | Capital gain distributions received | Realized gain (loss) | Change in unrealized appreciation (depreciation) | Ending value | |||||||||||||||||||||||||||||
John Hancock Collateral Trust* | — | 28,547,695 | (20,238,805 | ) | 8,308,890 | — | — | ($12,561 | ) | ($8,885 | ) | $83,110,499 | ||||||||||||||||||||||||||
*Refer to the Securities lending note within Note 2 for details regarding this investment. |
Note 9 — New accounting pronouncement
In March 2017, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) 2017-08, Premium Amortization on Purchased Callable Debt Securities, which shortens the premium amortization period for purchased non-contingently callable debt securities. The standard is effective for annual periods beginning after December 15, 2018 and interim periods within those fiscal years. At this time, management is evaluating the impact of ASU 2017-08 to the fund.
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 fund). The Advisory Agreement and Subadvisory Agreement are collectively referred to as the Agreements. Prior to the June18-21, 2018 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 May29-31, 2018.
Approval of Advisory and Subadvisory Agreements
At in-person meetings held on June 18-21, 2018, 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 noted 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 the 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 risks 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:
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, 2017. 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 average for the one-, three-, five- and ten-year periods. The Board concluded that the fund's performance has generally been in line with or 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 lower than the peer group median.
The Board took into account management's discussion with respect to the overall management fee and 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 rendered 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, including the fund, 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 reduce management fees as assets increase. The Board also noted that the fund's distributor, an affiliate of the Advisor, has agreed to waive a portion of its Rule 12b-1 fee for a share class of the fund. The Board noted that the fund has a voluntary fee waiver and/or expense reimbursement, which reduces certain expenses of the fund. 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 (including the Subadvisor) 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 (including the Subadvisor) 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 also 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 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 Francis V. Knox, Jr. Charles A. Rizzo Salvatore Schiavone Christopher (Kit) Sechler** | 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 6-19-18
**Effective 9-13-18
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.
We make this information on your fund, as well asmonthly 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. |
John Hancock family of funds
DOMESTIC EQUITY FUNDS Blue Chip Growth Classic Value Disciplined Value Disciplined Value Mid Cap Equity Income Financial Industries Fundamental All Cap Core Fundamental Large Cap Core Fundamental Large Cap Value New Opportunities Regional Bank Small Cap Core Small Cap Growth Small Cap Value U.S. Global Leaders Growth U.S. Growth U.S. Quality Growth Value Equity GLOBAL AND INTERNATIONAL EQUITY FUNDS Disciplined Value International Emerging Markets Emerging Markets Equity Fundamental Global Franchise Global Equity Global Shareholder Yield Global Thematic Opportunities Greater China Opportunities International Growth International Small Company | INCOME FUNDS Bond California Tax-Free Income Emerging Markets Debt Floating Rate Income Government Income High Yield High Yield Municipal Bond Income Investment Grade Bond Money Market Short Duration Credit Opportunities Spectrum Income Strategic Income Opportunities Tax-Free Bond ALTERNATIVE AND SPECIALTY FUNDS Absolute Return Currency Alternative Asset Allocation Enduring Assets Global Absolute Return Strategies Global Conservative Absolute Return Global Focused Strategies Redwood Seaport Long/Short Technical Opportunities |
A fund's investment objectives, risks, charges, and expenses should be considered carefully before investing. The prospectus contains this and other important information about the fund. To obtain a prospectus, contact your financial professional, call John Hancock Investments at 800-225-5291, or visit our website at jhinvestments.com. Please read the prospectus carefully before investing or sending money.
ASSET ALLOCATION Balanced Income Allocation Multi-Index Lifetime Portfolios Multi-Index Preservation Portfolios Multimanager Lifestyle Portfolios Multimanager Lifetime Portfolios Retirement Income 2040 EXCHANGE-TRADED FUNDS John Hancock Multifactor Consumer Discretionary ETF John Hancock Multifactor Consumer Staples ETF John Hancock Multifactor Developed International ETF John Hancock Multifactor Emerging Markets 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 |
John Hancock Multifactor ETF shares are bought and sold at market price (not NAV), and are not individually redeemed
from the fund. Brokerage commissions will reduce returns.
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
representation as to the advisability of investing in, John Hancock Multifactor ETFs.
John Hancock Investments
A trusted brand
John Hancock Investments is a premier asset manager representing one of
America's most trusted brands, with a heritage of financial stewardship dating
back to 1862. Helping our shareholders pursue their financial goals is at the
core of everything we do. It's why we support the role of professional financial
advice and operate with the highest standards of conduct and integrity.
A better way to invest
We serve investors globally through a unique multimanager approach:
We search the world to find proven portfolio teams with specialized
expertise for every strategy we offer, then we apply robust investment
oversight to ensure they continue to meet our uncompromising standards
and serve the best interests of our shareholders.
Results for investors
Our unique approach to asset management enables us to provide a diverse set
of investments backed by some of the world's best managers, along with strong
risk-adjusted returns across asset classes.
| John Hancock Funds, LLC n Member FINRA, SIPC 200 Berkeley Street n Boston, MA 02116-5010 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. | ||
MF691678 | 21SA 11/18 1/19 |
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 InvestmentCompany 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, 2019 |
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, 2019 |
By: | /s/ Charles A. Rizzo | ||
Charles A. Rizzo | |||
Chief Financial Officer | |||
Date: | January 17, 2019 |