UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811- 01677
John Hancock Capital Series
(Exact name of registrant as specified in charter)
200 Berkeley Street, Boston, Massachusetts 02116 (Address of principal executive offices) (Zip code)
Salvatore Schiavone
Treasurer
200 Berkeley Street
Boston, Massachusetts 02116
(Name and address of agent for service)
Registrant's telephone number, including area code: 617-543-9634
Date of fiscal year end: | October 31 |
Date of reporting period: | October 31, 2021 |
ITEM 1. REPORTS TO STOCKHOLDERS
The Registrant prepared two annual reports to shareholders for the period ended October 31, 2021. The first report applies to Classic Value Fund and the second report applies U.S. Global Leaders Growth Fund.
President and CEO,
John Hancock Investment Management
Head of Wealth and Asset Management,
United States and Europe
ANNUAL REPORT | JOHN HANCOCK CLASSIC VALUE FUND | 1 |
2 | JOHN HANCOCK CLASSIC VALUE FUND | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK CLASSIC VALUE FUND | 3 |
TOP 10 HOLDINGS AS OF 10/31/2021 (% of net assets) | |
American International Group, Inc. | 4.7 |
General Electric Company | 4.6 |
Wells Fargo & Company | 4.4 |
Lear Corp. | 4.1 |
Citigroup, Inc. | 3.7 |
Halliburton Company | 3.6 |
NRG Energy, Inc. | 3.5 |
Cognizant Technology Solutions Corp., Class A | 3.4 |
Edison International | 3.4 |
Wabtec Corp. | 3.4 |
TOTAL | 38.8 |
Cash and cash equivalents are not included. |
COUNTRY COMPOSITION AS OF 10/31/2021 (% of net assets) | |
United States | 89.7 |
Canada | 3.5 |
Bermuda | 2.1 |
Germany | 1.8 |
Switzerland | 1.5 |
Netherlands | 1.4 |
TOTAL | 100.0 |
4 | JOHN HANCOCK CLASSIC VALUE FUND | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK CLASSIC VALUE FUND | 5 |
Average annual total returns (%) with maximum sales charge | Cumulative total returns (%) with maximum sales charge | ||||
1-year | 5-year | 10-year | 5-year | 10-year | |
Class A | 61.25 | 10.26 | 10.96 | 62.96 | 182.85 |
Class C | 67.52 | 10.56 | 10.68 | 65.22 | 175.98 |
Class I1 | 70.19 | 11.67 | 11.82 | 73.67 | 205.64 |
Class R21,2 | 69.57 | 11.24 | 11.45 | 70.34 | 195.76 |
Class R51 | 70.30 | 11.74 | 11.90 | 74.23 | 207.78 |
Class R61 | 70.41 | 11.80 | 11.94 | 74.68 | 208.93 |
Index† | 43.76 | 12.39 | 12.85 | 79.34 | 234.91 |
Class A | Class C | Class I | Class R2 | Class R5 | Class R6 | |
Gross (%) | 1.15 | 1.90 | 0.90 | 1.28 | 0.83 | 0.78 |
Net (%) | 1.14 | 1.89 | 0.89 | 1.27 | 0.82 | 0.77 |
6 | JOHN HANCOCK CLASSIC VALUE FUND | ANNUAL REPORT |
Start date | With maximum sales charge ($) | Without sales charge ($) | Index ($) | |
Class C3 | 10-31-11 | 27,598 | 27,598 | 33,491 |
Class I1 | 10-31-11 | 30,564 | 30,564 | 33,491 |
Class R21,2 | 10-31-11 | 29,576 | 29,576 | 33,491 |
Class R51 | 10-31-11 | 30,778 | 30,778 | 33,491 |
Class R61 | 10-31-11 | 30,893 | 30,893 | 33,491 |
1 | For certain types of investors, as described in the fund’s prospectus. |
2 | Class R2 shares were first offered on 3-1-12. Returns prior to this date are those of Class A shares and have not been adjusted for expenses; otherwise, returns would vary. |
3 | The contingent deferred sales charge is not applicable. |
ANNUAL REPORT | JOHN HANCOCK CLASSIC VALUE FUND | 7 |
8 | JOHN HANCOCK CLASSIC VALUE FUND | ANNUAL REPORT |
Account value on 5-1-2021 | Ending value on 10-31-2021 | Expenses paid during period ended 10-31-20211 | Annualized expense ratio | ||
Class A | Actual expenses/actual returns | $1,000.00 | $1,062.10 | $5.82 | 1.12% |
Hypothetical example | 1,000.00 | 1,019.60 | 5.70 | 1.12% | |
Class C | Actual expenses/actual returns | 1,000.00 | 1,058.40 | 9.70 | 1.87% |
Hypothetical example | 1,000.00 | 1,015.80 | 9.50 | 1.87% | |
Class I | Actual expenses/actual returns | 1,000.00 | 1,063.50 | 4.53 | 0.87% |
Hypothetical example | 1,000.00 | 1,020.80 | 4.43 | 0.87% | |
Class R2 | Actual expenses/actual returns | 1,000.00 | 1,061.70 | 6.50 | 1.25% |
Hypothetical example | 1,000.00 | 1,018.90 | 6.36 | 1.25% | |
Class R5 | Actual expenses/actual returns | 1,000.00 | 1,064.00 | 4.27 | 0.82% |
Hypothetical example | 1,000.00 | 1,021.10 | 4.18 | 0.82% | |
Class R6 | Actual expenses/actual returns | 1,000.00 | 1,064.30 | 4.01 | 0.77% |
Hypothetical example | 1,000.00 | 1,021.30 | 3.92 | 0.77% |
1 | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
ANNUAL REPORT | JOHN HANCOCK CLASSIC VALUE FUND | 9 |
Shares | Value | ||||
Common stocks 95.3% | $2,986,172,474 | ||||
(Cost $2,171,145,719) | |||||
Consumer discretionary 17.9% | 561,460,783 | ||||
Auto components 4.1% | |||||
Lear Corp. | 754,364 | 129,637,453 | |||
Automobiles 1.0% | |||||
Ford Motor Company (A) | 1,844,366 | 31,501,771 | |||
Hotels, restaurants and leisure 1.0% | |||||
Booking Holdings, Inc. (A) | 12,428 | 30,085,454 | |||
Household durables 4.6% | |||||
Mohawk Industries, Inc. (A) | 327,302 | 58,001,187 | |||
Newell Brands, Inc. | 3,787,633 | 86,698,919 | |||
Textiles, apparel and luxury goods 7.2% | |||||
Gildan Activewear, Inc. | 2,155,582 | 79,152,971 | |||
PVH Corp. (A) | 835,956 | 91,395,069 | |||
Skechers USA, Inc., Class A (A) | 1,189,958 | 54,987,959 | |||
Energy 13.2% | 412,929,673 | ||||
Energy equipment and services 8.7% | |||||
Baker Hughes Company | 3,777,317 | 94,735,110 | |||
Halliburton Company | 4,534,427 | 113,315,331 | |||
NOV, Inc. (A) | 4,623,708 | 64,824,386 | |||
Oil, gas and consumable fuels 4.5% | |||||
Cenovus Energy, Inc. | 2,643,975 | 31,674,821 | |||
Exxon Mobil Corp. | 1,012,711 | 65,289,478 | |||
Royal Dutch Shell PLC, ADR, Class A | 938,383 | 43,090,547 | |||
Financials 31.8% | 997,542,935 | ||||
Banks 11.6% | |||||
Bank of America Corp. | 1,108,315 | 52,955,291 | |||
Citigroup, Inc. | 1,664,670 | 115,128,577 | |||
JPMorgan Chase & Co. | 331,364 | 56,295,430 | |||
Wells Fargo & Company | 2,718,226 | 139,064,444 | |||
Capital markets 3.6% | |||||
The Goldman Sachs Group, Inc. | 164,002 | 67,790,227 | |||
UBS Group AG | 2,531,472 | 45,946,217 | |||
Consumer finance 2.3% | |||||
Capital One Financial Corp. | 467,446 | 70,598,369 | |||
Diversified financial services 4.7% | |||||
Equitable Holdings, Inc. | 2,704,745 | 90,608,958 | |||
Voya Financial, Inc. | 825,476 | 57,593,461 |
10 | JOHN HANCOCK CLASSIC VALUE FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Shares | Value | ||||
Financials (continued) | |||||
Insurance 9.6% | |||||
American International Group, Inc. | 2,487,534 | $146,988,384 | |||
Axis Capital Holdings, Ltd. | 1,265,612 | 65,900,417 | |||
MetLife, Inc. | 1,411,993 | 88,673,160 | |||
Health care 5.4% | 169,139,962 | ||||
Health care providers and services 4.5% | |||||
Cardinal Health, Inc. | 514,702 | 24,607,903 | |||
Fresenius Medical Care AG & Company KGaA, ADR | 1,702,247 | 56,565,668 | |||
McKesson Corp. | 283,667 | 58,968,696 | |||
Pharmaceuticals 0.9% | |||||
Pfizer, Inc. | 662,956 | 28,997,695 | |||
Industrials 9.5% | 298,267,034 | ||||
Aerospace and defense 1.5% | |||||
Textron, Inc. | 632,712 | 46,725,781 | |||
Industrial conglomerates 4.6% | |||||
General Electric Company | 1,391,964 | 145,975,265 | |||
Machinery 3.4% | |||||
Wabtec Corp. | 1,163,518 | 105,565,988 | |||
Information technology 8.3% | 259,968,436 | ||||
IT services 5.7% | |||||
Amdocs, Ltd. | 914,337 | 71,171,992 | |||
Cognizant Technology Solutions Corp., Class A | 1,362,314 | 106,383,100 | |||
Software 0.5% | |||||
SS&C Technologies Holdings, Inc. | 213,297 | 16,950,713 | |||
Technology hardware, storage and peripherals 2.1% | |||||
Hewlett Packard Enterprise Company | 4,468,439 | 65,462,631 | |||
Materials 2.3% | 71,327,552 | ||||
Chemicals 2.3% | |||||
Dow, Inc. | 1,274,389 | 71,327,552 | |||
Utilities 6.9% | 215,536,099 | ||||
Electric utilities 6.9% | |||||
Edison International | 1,681,437 | 105,812,830 | |||
NRG Energy, Inc. | 2,750,646 | 109,723,269 | |||
Yield (%) | Shares | Value | |||
Short-term investments 3.0% | $94,610,919 | ||||
(Cost $94,610,919) | |||||
Short-term funds 3.0% | 94,610,919 | ||||
State Street Institutional Treasury Money Market Fund, Premier Class | 0.0051(B) | 94,610,919 | 94,610,919 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK CLASSIC VALUE FUND | 11 |
Total investments (Cost $2,265,756,638) 98.3% | $3,080,783,393 | ||||
Other assets and liabilities, net 1.7% | 53,321,199 | ||||
Total net assets 100.0% | $3,134,104,592 |
The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund. | |
Security Abbreviations and Legend | |
ADR | American Depositary Receipt |
(A) | Non-income producing security. |
(B) | The rate shown is the annualized seven-day yield as of 10-31-21. |
12 | JOHN HANCOCK CLASSIC VALUE FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Assets | |
Unaffiliated investments, at value (Cost $2,265,756,638) | $3,080,783,393 |
Dividends and interest receivable | 3,191,936 |
Receivable for fund shares sold | 5,905,509 |
Receivable for investments sold | 49,334,224 |
Other assets | 160,668 |
Total assets | 3,139,375,730 |
Liabilities | |
Payable for investments purchased | 312 |
Payable for fund shares repurchased | 2,470,674 |
Payable to affiliates | |
Investment management fees | 1,863,148 |
Accounting and legal services fees | 164,889 |
Transfer agent fees | 282,499 |
Distribution and service fees | 95,231 |
Other liabilities and accrued expenses | 394,385 |
Total liabilities | 5,271,138 |
Net assets | $3,134,104,592 |
Net assets consist of | |
Paid-in capital | $2,378,193,918 |
Total distributable earnings (loss) | 755,910,674 |
Net assets | $3,134,104,592 |
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 ($415,931,243 ÷ 10,348,140 shares)1 | $40.19 |
Class C ($7,987,770 ÷ 203,160 shares)1 | $39.32 |
Class I ($2,544,626,134 ÷ 63,077,232 shares) | $40.34 |
Class R2 ($2,698,711 ÷ 67,301 shares) | $40.10 |
Class R5 ($59,269 ÷ 1,467 shares) | $40.392 |
Class R6 ($162,801,465 ÷ 4,029,217 shares) | $40.41 |
Maximum offering price per share | |
Class A (net asset value per share ÷ 95%)3 | $42.31 |
1 | Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. |
2 | Net asset value, offering price and redemption price per share of $40.39 is calculated using Net assets of $59,269.47 and Shares outstanding of 1,467.28. |
3 | On single retail sales of less than $50,000. On sales of $50,000 or more and on group sales the offering price is reduced. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK Classic Value Fund | 13 |
Investment income | |
Dividends | $44,128,102 |
Securities lending | 34,320 |
Interest | 4,268 |
Less foreign taxes withheld | (508,434) |
Total investment income | 43,658,256 |
Expenses | |
Investment management fees | 17,634,411 |
Distribution and service fees | 1,017,314 |
Accounting and legal services fees | 384,124 |
Transfer agent fees | 2,538,546 |
Trustees’ fees | 35,174 |
Custodian fees | 212,760 |
State registration fees | 219,960 |
Printing and postage | 228,052 |
Professional fees | 102,858 |
Other | 77,053 |
Total expenses | 22,450,252 |
Less expense reductions | (212,222) |
Net expenses | 22,238,030 |
Net investment income | 21,420,226 |
Realized and unrealized gain (loss) | |
Net realized gain (loss) on | |
Unaffiliated investments and foreign currency transactions | 85,124,492 |
Affiliated investments | 15,254 |
85,139,746 | |
Change in net unrealized appreciation (depreciation) of | |
Unaffiliated investments | 931,580,660 |
Affiliated investments | (24,628) |
931,556,032 | |
Net realized and unrealized gain | 1,016,695,778 |
Increase in net assets from operations | $1,038,116,004 |
14 | JOHN HANCOCK Classic Value Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Year ended 10-31-21 | Year ended 10-31-20 | |
Increase (decrease) in net assets | ||
From operations | ||
Net investment income | $21,420,226 | $28,939,224 |
Net realized gain (loss) | 85,139,746 | (151,318,891) |
Change in net unrealized appreciation (depreciation) | 931,556,032 | (271,867,013) |
Increase (decrease) in net assets resulting from operations | 1,038,116,004 | (394,246,680) |
Distributions to shareholders | ||
From earnings | ||
Class A | (4,101,322) | (15,791,415) |
Class B | — | (54,234)1 |
Class C | (65,101) | (799,388) |
Class I | (16,915,922) | (70,961,501) |
Class R1 | — | (100,041)1 |
Class R2 | (24,215) | (22,226) |
Class R3 | — | (17,405)1 |
Class R5 | (571) | (4,464) |
Class R6 | (5,106,400) | (17,939,030) |
Total distributions | (26,213,531) | (105,689,704) |
From fund share transactions | 724,480,300 | (250,367,020) |
Total increase (decrease) | 1,736,382,773 | (750,303,404) |
Net assets | ||
Beginning of year | 1,397,721,819 | 2,148,025,223 |
End of year | $3,134,104,592 | $1,397,721,819 |
1 | Share class was redesignated during the year. Refer to Note 5 for further details. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK Classic Value Fund | 15 |
CLASS A SHARES Period ended | 10-31-21 | 10-31-20 | 10-31-19 | 10-31-18 | 10-31-17 |
Per share operating performance | |||||
Net asset value, beginning of period | $23.99 | $31.31 | $31.52 | $32.32 | $26.12 |
Net investment income1 | 0.25 | 0.35 | 0.61 | 0.46 | 0.34 |
Net realized and unrealized gain (loss) on investments | 16.35 | (6.18) | (0.15) | (0.94) | 6.38 |
Total from investment operations | 16.60 | (5.83) | 0.46 | (0.48) | 6.72 |
Less distributions | |||||
From net investment income | (0.40) | (0.78) | (0.39) | (0.32) | (0.52) |
From net realized gain | — | (0.71) | (0.28) | — | — |
Total distributions | (0.40) | (1.49) | (0.67) | (0.32) | (0.52) |
Net asset value, end of period | $40.19 | $23.99 | $31.31 | $31.52 | $32.32 |
Total return (%)2,3 | 69.72 | (19.83) | 1.67 | (1.53) | 25.91 |
Ratios and supplemental data | |||||
Net assets, end of period (in millions) | $416 | $249 | $334 | $348 | $354 |
Ratios (as a percentage of average net assets): | |||||
Expenses before reductions | 1.15 | 1.19 | 1.18 | 1.17 | 1.18 |
Expenses including reductions | 1.14 | 1.18 | 1.17 | 1.16 | 1.17 |
Net investment income | 0.68 | 1.36 | 2.00 | 1.37 | 1.12 |
Portfolio turnover (%) | 25 | 35 | 35 | 28 | 45 |
1 | Based on average daily shares outstanding. |
2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
3 | Does not reflect the effect of sales charges, if any. |
16 | JOHN HANCOCK Classic Value Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS C SHARES Period ended | 10-31-21 | 10-31-20 | 10-31-19 | 10-31-18 | 10-31-17 |
Per share operating performance | |||||
Net asset value, beginning of period | $23.50 | $30.72 | $30.89 | $31.69 | $25.65 |
Net investment income (loss)1 | (0.02) | 0.18 | 0.39 | 0.26 | 0.11 |
Net realized and unrealized gain (loss) on investments | 16.06 | (6.14) | (0.14) | (0.97) | 6.27 |
Total from investment operations | 16.04 | (5.96) | 0.25 | (0.71) | 6.38 |
Less distributions | |||||
From net investment income | (0.22) | (0.55) | (0.14) | (0.09) | (0.34) |
From net realized gain | — | (0.71) | (0.28) | — | — |
Total distributions | (0.22) | (1.26) | (0.42) | (0.09) | (0.34) |
Net asset value, end of period | $39.32 | $23.50 | $30.72 | $30.89 | $31.69 |
Total return (%)2,3 | 68.52 | (20.47) | 0.92 | (2.25) | 24.96 |
Ratios and supplemental data | |||||
Net assets, end of period (in millions) | $8 | $9 | $20 | $26 | $75 |
Ratios (as a percentage of average net assets): | |||||
Expenses before reductions | 1.90 | 1.94 | 1.93 | 1.92 | 1.93 |
Expenses including reductions | 1.89 | 1.93 | 1.92 | 1.91 | 1.92 |
Net investment income (loss) | (0.05) | 0.67 | 1.31 | 0.76 | 0.38 |
Portfolio turnover (%) | 25 | 35 | 35 | 28 | 45 |
1 | Based on average daily shares outstanding. |
2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
3 | Does not reflect the effect of sales charges, if any. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK Classic Value Fund | 17 |
CLASS I SHARES Period ended | 10-31-21 | 10-31-20 | 10-31-19 | 10-31-18 | 10-31-17 |
Per share operating performance | |||||
Net asset value, beginning of period | $24.06 | $31.40 | $31.62 | $32.42 | $26.19 |
Net investment income1 | 0.34 | 0.43 | 0.69 | 0.55 | 0.41 |
Net realized and unrealized gain (loss) on investments | 16.41 | (6.20) | (0.16) | (0.95) | 6.41 |
Total from investment operations | 16.75 | (5.77) | 0.53 | (0.40) | 6.82 |
Less distributions | |||||
From net investment income | (0.47) | (0.86) | (0.47) | (0.40) | (0.59) |
From net realized gain | — | (0.71) | (0.28) | — | — |
Total distributions | (0.47) | (1.57) | (0.75) | (0.40) | (0.59) |
Net asset value, end of period | $40.34 | $24.06 | $31.40 | $31.62 | $32.42 |
Total return (%)2 | 70.19 | (19.65) | 1.93 | (1.29) | 26.24 |
Ratios and supplemental data | |||||
Net assets, end of period (in millions) | $2,545 | $886 | $1,429 | $1,518 | $1,767 |
Ratios (as a percentage of average net assets): | |||||
Expenses before reductions | 0.90 | 0.94 | 0.94 | 0.93 | 0.92 |
Expenses including reductions | 0.89 | 0.93 | 0.93 | 0.92 | 0.91 |
Net investment income | 0.92 | 1.66 | 2.24 | 1.62 | 1.35 |
Portfolio turnover (%) | 25 | 35 | 35 | 28 | 45 |
1 | Based on average daily shares outstanding. |
2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
18 | JOHN HANCOCK Classic Value Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS R2 SHARES Period ended | 10-31-21 | 10-31-20 | 10-31-19 | 10-31-18 | 10-31-17 |
Per share operating performance | |||||
Net asset value, beginning of period | $23.93 | $31.23 | $31.44 | $32.24 | $26.07 |
Net investment income1 | 0.20 | 0.35 | 0.47 | 0.40 | 0.25 |
Net realized and unrealized gain (loss) on investments | 16.34 | (6.20) | (0.06) | (0.92) | 6.41 |
Total from investment operations | 16.54 | (5.85) | 0.41 | (0.52) | 6.66 |
Less distributions | |||||
From net investment income | (0.37) | (0.74) | (0.34) | (0.28) | (0.49) |
From net realized gain | — | (0.71) | (0.28) | — | — |
Total distributions | (0.37) | (1.45) | (0.62) | (0.28) | (0.49) |
Net asset value, end of period | $40.10 | $23.93 | $31.23 | $31.44 | $32.24 |
Total return (%)2 | 69.57 | (19.93) | 1.50 | (1.66) | 25.71 |
Ratios and supplemental data | |||||
Net assets, end of period (in millions) | $3 | $2 | $—3 | $9 | $7 |
Ratios (as a percentage of average net assets): | |||||
Expenses before reductions | 1.28 | 1.32 | 1.30 | 1.32 | 1.33 |
Expenses including reductions | 1.27 | 1.31 | 1.29 | 1.31 | 1.32 |
Net investment income | 0.56 | 1.39 | 1.50 | 1.21 | 0.84 |
Portfolio turnover (%) | 25 | 35 | 35 | 28 | 45 |
1 | Based on average daily shares outstanding. |
2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
3 | Less than $500,000. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK Classic Value Fund | 19 |
CLASS R5 SHARES Period ended | 10-31-21 | 10-31-20 | 10-31-19 | 10-31-18 | 10-31-17 |
Per share operating performance | |||||
Net asset value, beginning of period | $24.09 | $31.42 | $31.65 | $32.44 | $26.21 |
Net investment income1 | 0.36 | 0.49 | 0.66 | 0.57 | 0.43 |
Net realized and unrealized gain (loss) on investments | 16.42 | (6.24) | (0.12) | (0.94) | 6.40 |
Total from investment operations | 16.78 | (5.75) | 0.54 | (0.37) | 6.83 |
Less distributions | |||||
From net investment income | (0.48) | (0.87) | (0.49) | (0.42) | (0.60) |
From net realized gain | — | (0.71) | (0.28) | — | — |
Total distributions | (0.48) | (1.58) | (0.77) | (0.42) | (0.60) |
Net asset value, end of period | $40.39 | $24.09 | $31.42 | $31.65 | $32.44 |
Total return (%)2 | 70.30 | (19.56) | 1.97 | (1.22) | 26.27 |
Ratios and supplemental data | |||||
Net assets, end of period (in millions) | $—3 | $—3 | $—3 | $—3 | $—3 |
Ratios (as a percentage of average net assets): | |||||
Expenses before reductions | 0.85 | 0.87 | 0.88 | 0.87 | 0.88 |
Expenses including reductions | 0.84 | 0.86 | 0.87 | 0.87 | 0.87 |
Net investment income | 0.97 | 1.81 | 2.17 | 1.68 | 1.40 |
Portfolio turnover (%) | 25 | 35 | 35 | 28 | 45 |
1 | Based on average daily shares outstanding. |
2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
3 | Less than $500,000. |
20 | JOHN HANCOCK Classic Value Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS R6 SHARES Period ended | 10-31-21 | 10-31-20 | 10-31-19 | 10-31-18 | 10-31-17 |
Per share operating performance | |||||
Net asset value, beginning of period | $24.09 | $31.43 | $31.67 | $32.46 | $26.21 |
Net investment income1 | 0.38 | 0.46 | 0.72 | 0.57 | 0.47 |
Net realized and unrealized gain (loss) on investments | 16.43 | (6.20) | (0.17) | (0.93) | 6.39 |
Total from investment operations | 16.81 | (5.74) | 0.55 | (0.36) | 6.86 |
Less distributions | |||||
From net investment income | (0.49) | (0.89) | (0.51) | (0.43) | (0.61) |
From net realized gain | — | (0.71) | (0.28) | — | — |
Total distributions | (0.49) | (1.60) | (0.79) | (0.43) | (0.61) |
Net asset value, end of period | $40.41 | $24.09 | $31.43 | $31.67 | $32.46 |
Total return (%)2 | 70.41 | (19.55) | 1.99 | (1.17) | 26.41 |
Ratios and supplemental data | |||||
Net assets, end of period (in millions) | $163 | $253 | $360 | $384 | $1 |
Ratios (as a percentage of average net assets): | |||||
Expenses before reductions | 0.80 | 0.83 | 0.83 | 0.82 | 0.83 |
Expenses including reductions | 0.79 | 0.82 | 0.82 | 0.81 | 0.81 |
Net investment income | 1.08 | 1.76 | 2.36 | 1.71 | 1.53 |
Portfolio turnover (%) | 25 | 35 | 35 | 28 | 45 |
1 | Based on average daily shares outstanding. |
2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK Classic Value Fund | 21 |
22 | JOHN HANCOCK Classic Value Fund | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK Classic Value Fund | 23 |
24 | JOHN HANCOCK Classic Value Fund | ANNUAL REPORT |
October 31, 2021 | October 31, 2020 | |
Ordinary income | $26,213,531 | $57,562,452 |
Long-term capital gains | — | 48,127,252 |
Total | $26,213,531 | $105,689,704 |
ANNUAL REPORT | JOHN HANCOCK Classic Value Fund | 25 |
Class | Expense reduction |
Class A | $32,183 |
Class C | 781 |
Class I | 160,765 |
Class R2 | 204 |
Class | Expense reduction |
Class R5 | $4 |
Class R6 | 18,285 |
Total | $212,222 |
Class | Rule 12b-1 Fee | Service fee |
Class A | 0.25% | — |
Class C | 1.00% | — |
Class R2 | 0.25% | 0.25% |
Class R5 | — | 0.05% |
26 | JOHN HANCOCK Classic Value Fund | ANNUAL REPORT |
Class | Distribution and service fees | Transfer agent fees |
Class A | $916,243 | $421,666 |
Class C | 89,781 | 10,345 |
Class I | — | 2,085,031 |
Class R2 | 11,265 | 226 |
Class R5 | 25 | 4 |
Class R6 | — | 21,274 |
Total | $1,017,314 | $2,538,546 |
Borrower or Lender | Weighted Average Loan Balance | Days Outstanding | Weighted Average Interest Rate | Interest Income (Expense) |
Borrower | $55,149,105 | 6 | 0.660% | ($6,066) |
Year Ended 10-31-21 | Year Ended 10-31-20 | |||
Shares | Amount | Shares | Amount | |
Class A shares | ||||
Sold | 2,223,561 | $82,492,088 | 7,919,653 | $195,868,152 |
Distributions reinvested | 124,813 | 3,859,214 | 457,126 | 14,724,039 |
Repurchased | (2,361,505) | (84,198,147) | (8,686,618) | (193,698,901) |
Net increase (decrease) | (13,131) | $2,153,155 | (309,839) | $16,893,290 |
ANNUAL REPORT | JOHN HANCOCK Classic Value Fund | 27 |
Year Ended 10-31-21 | Year Ended 10-31-20 | |||
Shares | Amount | Shares | Amount | |
Class B shares | ||||
Sold | — | — | 28 | $852 |
Distributions reinvested | — | — | 1,669 | 53,073 |
Repurchased | — | — | (46,770) | (1,152,266) |
Net decrease | — | — | (45,073) | $(1,098,341) |
Class C shares | ||||
Sold | 42,546 | $1,511,229 | 43,599 | $1,058,312 |
Distributions reinvested | 2,016 | 61,371 | 22,256 | 707,291 |
Repurchased | (205,848) | (6,878,936) | (354,856) | (8,613,278) |
Net decrease | (161,286) | $(5,306,336) | (289,001) | $(6,847,675) |
Class I shares | ||||
Sold | 37,294,494 | $1,347,834,877 | 20,544,889 | $455,855,046 |
Distributions reinvested | 525,243 | 16,261,523 | 2,117,770 | 68,276,892 |
Repurchased | (11,553,859) | (405,141,492) | (31,375,947) | (751,633,441) |
Net increase (decrease) | 26,265,878 | $958,954,908 | (8,713,288) | $(227,501,503) |
Class R1 shares | ||||
Sold | — | — | 9,414 | $224,530 |
Distributions reinvested | — | — | 2,910 | 94,039 |
Repurchased | — | — | (85,259) | (2,203,250) |
Net decrease | — | — | (72,935) | $(1,884,681) |
Class R2 shares | ||||
Sold | 15,222 | $561,583 | 69,305 | $1,748,980 |
Distributions reinvested | 751 | 23,187 | 676 | 21,749 |
Repurchased | (22,830) | (732,442) | (11,157) | (285,533) |
Net increase (decrease) | (6,857) | $(147,672) | 58,824 | $1,485,196 |
Class R3 shares | ||||
Sold | — | — | 1,023 | $25,158 |
Distributions reinvested | — | — | 541 | 17,405 |
Repurchased | — | — | (19,881) | (542,547) |
Net decrease | — | — | (18,317) | $(499,984) |
Class R5 shares | ||||
Sold | 332 | $11,942 | 531 | $13,236 |
Distributions reinvested | 18 | 571 | 138 | 4,464 |
Repurchased | (14) | (507) | (2,311) | (53,431) |
Net increase (decrease) | 336 | $12,006 | (1,642) | $(35,731) |
28 | JOHN HANCOCK Classic Value Fund | ANNUAL REPORT |
Year Ended 10-31-21 | Year Ended 10-31-20 | |||
Shares | Amount | Shares | Amount | |
Class R6 shares | ||||
Sold | 2,794,605 | $99,870,055 | 3,856,234 | $86,099,683 |
Distributions reinvested | 164,411 | 5,095,082 | 555,220 | 17,905,834 |
Repurchased | (9,435,751) | (336,150,898) | (5,349,196) | (134,883,108) |
Net decrease | (6,476,735) | $(231,185,761) | (937,742) | $(30,877,591) |
Total net increase (decrease) | 19,608,205 | $724,480,300 | (10,329,013) | $(250,367,020) |
Redesignation | Effective date | Amount | |||||
Class R3 shares as Class R2 shares | October 9, 2020 | $296,579 | |||||
Class B shares as Class A shares | October 14, 2020 | $378,846 | |||||
Class R1 shares as Class R2 shares | October 23, 2020 | $1,377,284 |
Dividends and distributions | |||||||||
Affiliate | Ending share amount | Beginning value | Cost of purchases | Proceeds from shares sold | Realized gain (loss) | Change in unrealized appreciation (depreciation) | Income distributions received | Capital gain distributions received | Ending value |
John Hancock Collateral Trust* | — | $38,894,812 | $124,664,430 | $(163,549,868) | $15,254 | $(24,628) | $34,320 | — | — |
* | Refer to the Securities lending note within Note 2 for details regarding this investment. |
ANNUAL REPORT | JOHN HANCOCK Classic Value Fund | 29 |
30 | JOHN HANCOCK CLASSIC VALUE FUND | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK CLASSIC VALUE FUND | 31 |
32 | JOHN HANCOCK CLASSIC VALUE FUND | ANNUAL REPORT |
(a) | the skills and competency with which the Advisor has in the past managed the Trust’s affairs and its subadvisory relationship, the Advisor’s oversight and monitoring of the Subadvisor’s investment performance and compliance programs, such as the Subadvisor’s compliance with fund policies and objectives, review of brokerage matters, including with respect to trade allocation and best execution and the Advisor’s timeliness in responding to performance issues; |
(b) | the background, qualifications and skills of the Advisor’s personnel; |
(c) | the Advisor’s compliance policies and procedures and its responsiveness to regulatory changes and fund industry developments; |
ANNUAL REPORT | JOHN HANCOCK CLASSIC VALUE FUND | 33 |
(d) | the Advisor’s administrative capabilities, including its ability to supervise the other service providers for the fund, as well as the Advisor’s oversight of any securities lending activity, its monitoring of class action litigation and collection of class action settlements on behalf of the fund, and bringing loss recovery actions on behalf of the fund; |
(e) | the financial condition of the Advisor and whether it has the financial wherewithal to provide a high level and quality of services to the fund; |
(f) | the Advisor’s initiatives intended to improve various aspects of the Trust’s operations and investor experience with the fund; and |
(g) | the Advisor’s reputation and experience in serving as an investment advisor to the Trust and the benefit to shareholders of investing in funds that are part of a family of funds offering a variety of investments. |
(a) | reviewed information prepared by management regarding the fund’s performance; |
(b) | considered the comparative performance of an applicable benchmark index; |
(c) | considered the performance of comparable funds, if any, as included in the report prepared by an independent third-party provider of fund data; and |
(d) | took into account the Advisor’s analysis of the fund’s performance and its plans and recommendations regarding the Trust’s subadvisory arrangements generally. |
34 | JOHN HANCOCK CLASSIC VALUE FUND | ANNUAL REPORT |
(a) | reviewed financial information of the Advisor; |
(b) | reviewed and considered information presented by the Advisor regarding the net profitability to the Advisor and its affiliates with respect to the fund; |
(c) | received and reviewed profitability information with respect to the John Hancock Fund Complex as a whole and with respect to the fund; |
(d) | received information with respect to the Advisor’s allocation methodologies used in preparing the profitability data and considered that the Advisor hired an independent third-party consultant to provide an analysis of the Advisor’s allocation methodologies; |
(e) | considered that the John Hancock insurance companies that are affiliates of the Advisor, as shareholders of the Trust directly or through their separate accounts, receive certain tax credits or deductions relating to foreign taxes paid and dividends received by certain funds of the Trust and noted that these tax benefits, which are not available to participants in qualified retirement plans under applicable income tax law, are reflected in the profitability information reviewed by the Board; |
(f) | considered that the Advisor also provides administrative services to the fund on a cost basis pursuant to an administrative services agreement; |
(g) | noted that affiliates of the Advisor provide transfer agency services and distribution services to the fund, and that the fund’s distributor also receives Rule 12b-1 payments to support distribution of the fund; |
(h) | noted that the Advisor also derives reputational and other indirect benefits from providing advisory services to the fund; |
(i) | noted that the subadvisory fee for the fund is paid by the Advisor and is negotiated at arm’s length; |
(j) | considered the Advisor’s ongoing costs and expenditures necessary to improve services, meet new regulatory and compliance requirements, and adapt to other challenges impacting the fund industry; and |
ANNUAL REPORT | JOHN HANCOCK CLASSIC VALUE FUND | 35 |
(k) | considered that the Advisor should be entitled to earn a reasonable level of profits in exchange for the level of services it provides to the fund and the risks that it assumes as Advisor, including entrepreneurial, operational, reputational, litigation and regulatory risk. |
(a) | considered that the Advisor has contractually agreed to waive a portion of its management fee for certain funds of the John Hancock Fund Complex, including the fund (the participating portfolios) or otherwise reimburse the expenses of the participating portfolios (the reimbursement). This waiver is based upon aggregate net assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund; |
(b) | reviewed the fund’s advisory fee structure and concluded that: (i) the fund’s fee structure contains breakpoints at the subadvisory fee level and that such breakpoints are reflected as breakpoints in the advisory fees for the fund; and (ii) although economies of scale cannot be measured with precision, these arrangements permit shareholders of the fund to benefit from economies of scale if the fund grows. The Board also took into account management’s discussion of the fund’s advisory fee structure; and |
(c) | the Board also considered the effect of the fund’s growth in size on its performance and fees. The Board also noted that if the fund’s assets increase over time, the fund may realize other economies of scale. |
(1) | information relating to the Subadvisor’s business, including current subadvisory services to the Trust (and other funds in the John Hancock Fund Complex); |
(2) | the historical and current performance of the fund and comparative performance information relating to an applicable benchmark index and comparable funds; |
(3) | the subadvisory fee for the fund, including any breakpoints, and to the extent available, comparable fee information prepared by an independent third-party provider of fund data; and |
(4) | information relating to the nature and scope of any material relationships and their significance to the Trust’s Advisor and Subadvisor. |
36 | JOHN HANCOCK CLASSIC VALUE FUND | ANNUAL REPORT |
(1) | the Subadvisor has extensive experience and demonstrated skills as a manager; |
ANNUAL REPORT | JOHN HANCOCK CLASSIC VALUE FUND | 37 |
(2) | the performance of the fund is being monitored and reasonably addressed, where appropriate; |
(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. |
38 | JOHN HANCOCK CLASSIC VALUE FUND | ANNUAL REPORT |
Independent Trustees | ||
Name, year of birth Position(s) held with Trust Principal occupation(s) and other directorships during past 5 years | Trustee of the Trust since1 | Number of John Hancock funds overseen by Trustee |
Hassell H. McClellan, Born: 1945 | 2012 | 191 |
Trustee and Chairperson of the Board | ||
Director/Trustee, Virtus Funds (2008-2020); Director, The Barnes Group (2010-2021); Associate Professor, The Wallace E. Carroll School of Management, Boston College (retired 2013). Trustee (since 2005) and Chairperson of the Board (since 2017) of various trusts within the John Hancock Fund Complex. | ||
Charles L. Bardelis,2 Born: 1941 | 2012 | 191 |
Trustee | ||
Director, Island Commuter Corp. (marine transport). Trustee of various trusts within the John Hancock Fund Complex (since 1988). | ||
James R. Boyle, Born: 1959 | 2015 | 191 |
Trustee | ||
Chief Executive Officer, Foresters Financial (since 2018); Chairman and Chief Executive Officer, Zillion Group, Inc. (formerly HealthFleet, Inc.) (healthcare) (2014-2018); Executive Vice President and Chief Executive Officer, U.S. Life Insurance Division of Genworth Financial, Inc. (insurance) (January 2014–July 2014); Senior Executive Vice President, Manulife Financial, President and Chief Executive Officer, John Hancock (1999–2012); Chairman and Director, John Hancock Investment Management LLC, John Hancock Investment Management Distributors LLC, and John Hancock Variable Trust Advisers LLC (2005–2010). Trustee of various trusts within the John Hancock Fund Complex (2005–2014 and since 2015). | ||
Peter S. Burgess,2 Born: 1942 | 2012 | 191 |
Trustee | ||
Consultant (financial, accounting, and auditing matters) (since 1999); Certified Public Accountant; Partner, Arthur Andersen (independent public accounting firm) (prior to 1999); Director, Lincoln Educational Services Corporation (2004-2021); Director, Symetra Financial Corporation (2010–2016); Director, PMA Capital Corporation (2004–2010). Trustee of various trusts within the John Hancock Fund Complex (since 2005). | ||
William H. Cunningham, Born: 1944 | 2005 | 191 |
Trustee | ||
Professor, University of Texas, Austin, Texas (since 1971); former Chancellor, University of Texas System and former President of the University of Texas, Austin, Texas; Chairman (since 2009) and Director (since 2006), Lincoln National Corporation (insurance); Director, Southwest Airlines (since 2000); former Director, LIN Television (2009–2014). Trustee of various trusts within the John Hancock Fund Complex (since 1986). | ||
Grace K. Fey, Born: 1946 | 2012 | 191 |
Trustee | ||
Chief Executive Officer, Grace Fey Advisors (since 2007); Director and Executive Vice President, Frontier Capital Management Company (1988–2007); Director, Fiduciary Trust (since 2009). Trustee of various trusts within the John Hancock Fund Complex (since 2008). |
ANNUAL REPORT | JOHN HANCOCK CLASSIC VALUE FUND | 39 |
Independent Trustees (continued) | ||
Name, year of birth Position(s) held with Trust Principal occupation(s) and other directorships during past 5 years | Trustee of the Trust since1 | Number of John Hancock funds overseen by Trustee |
Deborah C. Jackson, Born: 1952 | 2008 | 191 |
Trustee | ||
President, Cambridge College, Cambridge, Massachusetts (since 2011); Board of Directors, Amwell Corporation (since 2020); Board of Directors, Massachusetts Women’s Forum (2018-2020); Board of Directors, National Association of Corporate Directors/New England (2015-2020); Board of Directors, Association of Independent Colleges and Universities of Massachusetts (2014-2017); Chief Executive Officer, American Red Cross of Massachusetts Bay (2002–2011); Board of Directors of Eastern Bank Corporation (since 2001); Board of Directors of Eastern Bank Charitable Foundation (since 2001); Board of Directors of American Student Assistance Corporation (1996–2009); Board of Directors of Boston Stock Exchange (2002–2008); Board of Directors of Harvard Pilgrim Healthcare (health benefits company) (2007–2011). Trustee of various trusts within the John Hancock Fund Complex (since 2008). | ||
Steven R. Pruchansky, Born: 1944 | 2005 | 191 |
Trustee and Vice Chairperson of the Board | ||
Managing Director, Pru Realty (since 2017); Chairman and Chief Executive Officer, Greenscapes of Southwest Florida, Inc. (2014-2020); Director and President, Greenscapes of Southwest Florida, Inc. (until 2000); Member, Board of Advisors, First American Bank (until 2010); Managing Director, Jon James, LLC (real estate) (since 2000); Partner, Right Funding, LLC (2014-2017); Director, First Signature Bank & Trust Company (until 1991); Director, Mast Realty Trust (until 1994); President, Maxwell Building Corp. (until 1991). Trustee (since 1992), Chairperson of the Board (2011–2012), and Vice Chairperson of the Board (since 2012) of various trusts within the John Hancock Fund Complex. | ||
Frances G. Rathke,2 Born: 1960 | 2020 | 191 |
Trustee | ||
Board Member, Oatly Group AB (plant-based drink company) (since 2021): Director, Northern New England Energy Corporation (since 2017); Director, Audit Committee Chair and Compensation Committee Member, Green Mountain Power Corporation (since 2016); Director, Treasurer and Finance & Audit Committee Chair, Flynn Center for Performing Arts (since 2016); Director, Audit Committee Chair and Compensation Committee Member, Planet Fitness (since 2016); Director, Citizen Cider, Inc. (high-end hard cider and hard seltzer company) (since 2016); Chief Financial Officer and Treasurer, Keurig Green Mountain, Inc. (2003-retired 2015); Independent Financial Consultant, Frances Rathke Consulting (strategic and financial consulting services) (2001-2003); Chief Financial Officer and Secretary, Ben & Jerry’s Homemade, Inc. (1989-2000, including prior positions); Senior Manager, Coopers & Lybrand, LLC (independent public accounting firm) (1982-1989). Trustee of various trusts within the John Hancock Fund Complex (since 2020). | ||
Gregory A. Russo, Born: 1949 | 2009 | 191 |
Trustee | ||
Director and Audit Committee Chairman (2012-2020), and Member, Audit Committee and Finance Committee (2011-2020), NCH Healthcare System, Inc. (holding company for multi-entity healthcare system); Director and Member (2012-2018) and Finance Committee Chairman (2014-2018), The Moorings, Inc. (nonprofit continuing care community); Vice Chairman, Risk & Regulatory Matters, KPMG LLP (KPMG) (2002–2006); Vice Chairman, Industrial Markets, KPMG (1998–2002); Chairman and Treasurer, Westchester County, New York, Chamber of Commerce (1986–1992); Director, Treasurer, and Chairman of Audit and Finance Committees, Putnam Hospital Center (1989–1995); Director and Chairman of Fundraising Campaign, United Way of Westchester and Putnam Counties, New York (1990–1995). Trustee of various trusts within the John Hancock Fund Complex (since 2008). |
40 | JOHN HANCOCK CLASSIC VALUE FUND | ANNUAL REPORT |
Non-Independent Trustees3 | ||
Name, year of birth Position(s) held with Trust Principal occupation(s) and other directorships during past 5 years | Trustee of the Trust since1 | Number of John Hancock funds overseen by Trustee |
Andrew G. Arnott, Born: 1971 | 2017 | 191 |
President and Non-Independent Trustee | ||
Head of Wealth and Asset Management, United States and Europe, for John Hancock and Manulife (since 2018); Director and Executive Vice President, John Hancock Investment Management LLC (since 2005, including prior positions); Director and Executive Vice President, John Hancock Variable Trust Advisers LLC (since 2006, including prior positions); President, John Hancock Investment Management Distributors LLC (since 2004, including prior positions); President of various trusts within the John Hancock Fund Complex (since 2007, including prior positions). Trustee of various trusts within the John Hancock Fund Complex (since 2017). | ||
Marianne Harrison, Born: 1963 | 2018 | 191 |
Non-Independent Trustee | ||
President and CEO, John Hancock (since 2017); President and CEO, Manulife Canadian Division (2013–2017); Member, Board of Directors, Boston Medical Center (since 2021); Member, Board of Directors, CAE Inc. (since 2019); Member, Board of Directors, MA Competitive Partnership Board (since 2018); Member, Board of Directors, American Council of Life Insurers (ACLI) (since 2018); Member, Board of Directors, Communitech, an industry-led innovation center that fosters technology companies in Canada (2017-2019); Member, Board of Directors, Manulife Assurance Canada (2015-2017); Board Member, St. Mary’s General Hospital Foundation (2014-2017); Member, Board of Directors, Manulife Bank of Canada (2013- 2017); Member, Standing Committee of the Canadian Life & Health Assurance Association (2013-2017); Member, Board of Directors, John Hancock USA, John Hancock Life & Health, John Hancock New York (2012–2013). Trustee of various trusts within the John Hancock Fund Complex (since 2018). |
Principal officers who are not Trustees | |
Name, year of birth Position(s) held with Trust Principal occupation(s) during past 5 years | Current Position(s) with the Trust since |
Charles A. Rizzo, Born: 1957 | 2007 |
Chief Financial Officer | |
Vice President, John Hancock Financial Services (since 2008); Senior Vice President, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2008); Chief Financial Officer of various trusts within the John Hancock Fund Complex (since 2007). | |
Salvatore Schiavone, Born: 1965 | 2010 |
Treasurer | |
Assistant Vice President, John Hancock Financial Services (since 2007); Vice President, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2007); Treasurer of various trusts within the John Hancock Fund Complex (since 2007, including prior positions). | |
Christopher (Kit) Sechler, Born: 1973 | 2018 |
Secretary and Chief Legal Officer | |
Vice President and Deputy Chief Counsel, John Hancock Investment Management (since 2015); Assistant Vice President and Senior Counsel (2009–2015), John Hancock Investment Management; Assistant Secretary of John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2009); Chief Legal Officer and Secretary of various trusts within the John Hancock Fund Complex (since 2009, including prior positions). |
ANNUAL REPORT | JOHN HANCOCK CLASSIC VALUE FUND | 41 |
Principal officers who are not Trustees (continued) | |
Name, year of birth Position(s) held with Trust Principal occupation(s) during past 5 years | Current Position(s) with the Trust since |
Trevor Swanberg, Born: 1979 | 2020 |
Chief Compliance Officer | |
Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2020); Deputy Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (2019–2020); Assistant Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (2016–2019); Vice President, State Street Global Advisors (2015–2016); Chief Compliance Officer of various trusts within the John Hancock Fund Complex (since 2016, including prior positions). |
1 | Each Trustee holds office until his or her successor is elected and qualified, or until the Trustee’s death, retirement, resignation, or removal. Mr. Boyle has served as Trustee at various times prior to the date listed in the table. |
2 | Member of the Audit Committee. |
3 | The Trustee is a Non-Independent Trustee due to current or former positions with the Advisor and certain affiliates. |
42 | JOHN HANCOCK CLASSIC VALUE FUND | ANNUAL REPORT |
Steven R. Pruchansky, Vice Chairperson
Andrew G. Arnott†
Charles L. Bardelis*
James R. Boyle
Peter S. Burgess*
William H. Cunningham
Grace K. Fey
Marianne Harrison†
Deborah C. Jackson
Frances G. Rathke*
Gregory A. Russo
President
Chief Financial Officer
Treasurer
Secretary and Chief Legal Officer
Chief Compliance Officer
Richard S. Pzena
Benjamin S. Silver, CFA, CPA
You can also contact us: | ||
800-225-5291 | Regular mail: | Express mail: |
jhinvestments.com | John Hancock Signature Services, Inc. P.O. Box 219909 Kansas City, MO 64121-9909 | John Hancock Signature Services, Inc. 430 W 7th Street Suite 219909 Kansas City, MO 64105-1407 |
ANNUAL REPORT | JOHN HANCOCK CLASSIC VALUE FUND | 43 |
GOVERNANCE FUNDS
with a heritage of financial stewardship dating back to 1862. Helping
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we do. It’s why we support the role of professional financial advice
and operate with the highest standards of conduct and integrity.
We search the world to find proven portfolio teams with specialized
expertise for every strategy we offer, then we apply robust investment
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a diverse set of investments backed by some of the world’s best
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200 Berkeley Street, Boston, MA 02116-5010, 800-225-5291, jhinvestments.com
MF1901490 | 38A 10/21 |
President and CEO,
John Hancock Investment Management
Head of Wealth and Asset Management,
United States and Europe
ANNUAL REPORT | JOHN HANCOCK U.S. GLOBAL LEADERS GROWTH FUND | 1 |
2 | JOHN HANCOCK U.S. GLOBAL LEADERS GROWTH FUND | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK U.S. GLOBAL LEADERS GROWTH FUND | 3 |
TOP 10 HOLDINGS AS OF 10/31/2021 (% of net assets) | |
Amazon.com, Inc. | 5.4 |
UnitedHealth Group, Inc. | 5.3 |
Microsoft Corp. | 5.2 |
Workday, Inc., Class A | 4.2 |
Intuit, Inc. | 4.1 |
salesforce.com, Inc. | 4.1 |
Facebook, Inc., Class A | 4.1 |
Visa, Inc., Class A | 4.0 |
Autodesk, Inc. | 3.8 |
Alphabet, Inc., Class C | 3.6 |
TOTAL | 43.8 |
Cash and cash equivalents are not included. |
4 | JOHN HANCOCK U.S. GLOBAL LEADERS GROWTH FUND | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK U.S. GLOBAL LEADERS GROWTH FUND | 5 |
Average annual total returns (%) with maximum sales charge | Cumulative total returns (%) with maximum sales charge | ||||
1-year | 5-year | 10-year | 5-year | 10-year | |
Class A | 28.89 | 21.90 | 16.99 | 169.12 | 380.09 |
Class C | 33.66 | 22.23 | 16.71 | 172.85 | 368.74 |
Class I1 | 36.01 | 23.46 | 17.90 | 186.85 | 419.13 |
Class R21,2 | 35.50 | 22.99 | 17.47 | 181.38 | 400.45 |
Class R61 | 36.14 | 23.59 | 18.03 | 188.36 | 424.51 |
Index 1† | 43.21 | 25.49 | 19.42 | 211.20 | 490.08 |
Index 2† | 42.91 | 18.93 | 16.21 | 137.90 | 349.39 |
Class A | Class C | Class I | Class R2 | Class R6 | |
Gross (%) | 1.16 | 1.91 | 0.91 | 1.30 | 0.80 |
Net (%) | 1.15 | 1.90 | 0.90 | 1.29 | 0.79 |
6 | JOHN HANCOCK U.S. GLOBAL LEADERS GROWTH FUND | ANNUAL REPORT |
Start date | With maximum sales charge ($) | Without sales charge ($) | Index 1 ($) | Index 2 ($) | |
Class C3 | 10-31-11 | 46,874 | 46,874 | 59,008 | 44,939 |
Class I1 | 10-31-11 | 51,913 | 51,913 | 59,008 | 44,939 |
Class R21,2 | 10-31-11 | 50,045 | 50,045 | 59,008 | 44,939 |
Class R61 | 10-31-11 | 52,451 | 52,451 | 59,008 | 44,939 |
1 | For certain types of investors, as described in the fund’s prospectus. |
2 | Class R2 shares were first offered on 3-1-12 . Returns prior to this date are those of Class A shares that have not been adjusted for class-specific expenses; otherwise, returns would vary. |
3 | The contingent deferred sales charge is not applicable. |
ANNUAL REPORT | JOHN HANCOCK U.S. GLOBAL LEADERS GROWTH FUND | 7 |
8 | JOHN HANCOCK U.S. GLOBAL LEADERS GROWTH FUND | ANNUAL REPORT |
Account value on 5-1-2021 | Ending value on 10-31-2021 | Expenses paid during period ended 10-31-20211 | Annualized expense ratio | ||
Class A | Actual expenses/actual returns | $1,000.00 | $1,114.40 | $5.97 | 1.12% |
Hypothetical example | 1,000.00 | 1,019.60 | 5.70 | 1.12% | |
Class C | Actual expenses/actual returns | 1,000.00 | 1,110.10 | 9.95 | 1.87% |
Hypothetical example | 1,000.00 | 1,015.80 | 9.50 | 1.87% | |
Class I | Actual expenses/actual returns | 1,000.00 | 1,115.80 | 4.64 | 0.87% |
Hypothetical example | 1,000.00 | 1,020.80 | 4.43 | 0.87% | |
Class R2 | Actual expenses/actual returns | 1,000.00 | 1,113.80 | 6.55 | 1.23% |
Hypothetical example | 1,000.00 | 1,019.00 | 6.26 | 1.23% | |
Class R6 | Actual expenses/actual returns | 1,000.00 | 1,116.40 | 4.11 | 0.77% |
Hypothetical example | 1,000.00 | 1,021.30 | 3.92 | 0.77% |
1 | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
ANNUAL REPORT | JOHN HANCOCK U.S. GLOBAL LEADERS GROWTH FUND | 9 |
Shares | Value | ||||
Common stocks 97.5% | $2,757,778,940 | ||||
(Cost $1,494,008,783) | |||||
Communication services 13.1% | 370,503,772 | ||||
Entertainment 5.4% | |||||
Netflix, Inc. (A) | 95,179 | 65,703,015 | |||
The Walt Disney Company (A) | 516,178 | 87,270,214 | |||
Interactive media and services 7.7% | |||||
Alphabet, Inc., Class C (A) | 34,706 | 102,917,519 | |||
Facebook, Inc., Class A (A) | 354,214 | 114,613,024 | |||
Consumer discretionary 10.6% | 300,930,551 | ||||
Hotels, restaurants and leisure 3.1% | |||||
Yum! Brands, Inc. | 710,883 | 88,817,722 | |||
Internet and direct marketing retail 5.4% | |||||
Amazon.com, Inc. (A) | 45,525 | 153,529,878 | |||
Textiles, apparel and luxury goods 2.1% | |||||
NIKE, Inc., Class B | 350,188 | 58,582,951 | |||
Financials 5.4% | 153,305,157 | ||||
Capital markets 3.1% | |||||
MSCI, Inc. | 130,355 | 86,670,432 | |||
Consumer finance 2.3% | |||||
American Express Company | 383,443 | 66,634,725 | |||
Health care 22.6% | 638,177,372 | ||||
Biotechnology 3.2% | |||||
Regeneron Pharmaceuticals, Inc. (A) | 142,291 | 91,057,703 | |||
Health care equipment and supplies 8.7% | |||||
Abbott Laboratories | 627,225 | 80,843,030 | |||
Danaher Corp. | 314,442 | 98,033,582 | |||
Intuitive Surgical, Inc. (A) | 182,274 | 65,824,610 | |||
Health care providers and services 5.3% | |||||
UnitedHealth Group, Inc. | 322,307 | 148,412,704 | |||
Life sciences tools and services 5.4% | |||||
Illumina, Inc. (A) | 135,363 | 56,183,767 | |||
Thermo Fisher Scientific, Inc. | 154,520 | 97,821,976 | |||
Industrials 3.0% | 84,865,646 | ||||
Professional services 3.0% | |||||
IHS Markit, Ltd. | 649,217 | 84,865,646 |
10 | JOHN HANCOCK U.S. GLOBAL LEADERS GROWTH FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Shares | Value | ||||
Information technology 34.2% | $966,836,586 | ||||
IT services 10.1% | |||||
FleetCor Technologies, Inc. (A) | 320,929 | 79,401,044 | |||
PayPal Holdings, Inc. (A) | 396,679 | 92,263,569 | |||
Visa, Inc., Class A | 537,288 | 113,781,480 | |||
Software 24.1% | |||||
Autodesk, Inc. (A) | 337,421 | 107,168,284 | |||
Intuit, Inc. | 185,269 | 115,976,541 | |||
Microsoft Corp. | 443,801 | 147,173,288 | |||
RingCentral, Inc., Class A (A) | 313,694 | 76,472,323 | |||
salesforce.com, Inc. (A) | 386,486 | 115,825,989 | |||
Workday, Inc., Class A (A) | 409,594 | 118,774,068 | |||
Materials 5.5% | 155,549,599 | ||||
Chemicals 1.9% | |||||
Linde PLC | 171,125 | 54,623,100 | |||
Containers and packaging 3.6% | |||||
Ball Corp. | 1,103,263 | 100,926,499 | |||
Real estate 3.1% | 87,610,257 | ||||
Equity real estate investment trusts 3.1% | |||||
Equinix, Inc. | 104,663 | 87,610,257 | |||
Yield (%) | Shares | Value | |||
Short-term investments 2.5% | $70,449,577 | ||||
(Cost $70,449,577) | |||||
Short-term funds 2.5% | 70,449,577 | ||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 0.0250(B) | 70,449,577 | 70,449,577 |
Total investments (Cost $1,564,458,360) 100.0% | $2,828,228,517 | ||||
Other assets and liabilities, net (0.0%) | (838,608) | ||||
Total net assets 100.0% | $2,827,389,909 |
The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund. | |
Security Abbreviations and Legend | |
(A) | Non-income producing security. |
(B) | The rate shown is the annualized seven-day yield as of 10-31-21. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK U.S. GLOBAL LEADERS GROWTH FUND | 11 |
Assets | |
Unaffiliated investments, at value (Cost $1,564,458,360) | $2,828,228,517 |
Dividends and interest receivable | 1,060,331 |
Receivable for fund shares sold | 4,208,156 |
Receivable for investments sold | 10,685,156 |
Other assets | 109,222 |
Total assets | 2,844,291,382 |
Liabilities | |
Payable for investments purchased | 12,162,167 |
Payable for fund shares repurchased | 1,994,753 |
Payable to affiliates | |
Investment management fees | 1,662,257 |
Accounting and legal services fees | 155,707 |
Transfer agent fees | 218,266 |
Distribution and service fees | 316,961 |
Other liabilities and accrued expenses | 391,362 |
Total liabilities | 16,901,473 |
Net assets | $2,827,389,909 |
Net assets consist of | |
Paid-in capital | $1,351,567,047 |
Total distributable earnings (loss) | 1,475,822,862 |
Net assets | $2,827,389,909 |
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 ($1,217,423,869 ÷ 15,977,478 shares)1 | $76.20 |
Class C ($79,488,749 ÷ 1,355,103 shares)1 | $58.66 |
Class I ($1,026,864,544 ÷ 12,165,538 shares) | $84.41 |
Class R2 ($2,349,257 ÷ 28,945 shares) | $81.16 |
Class R6 ($501,263,490 ÷ 5,873,272 shares) | $85.35 |
Maximum offering price per share | |
Class A (net asset value per share ÷ 95%)2 | $80.21 |
1 | Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. |
2 | On single retail sales of less than $50,000. On sales of $50,000 or more and on group sales the offering price is reduced. |
12 | JOHN HANCOCK U.S. Global Leaders Growth Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Investment income | |
Dividends | $13,680,895 |
Interest | 13,066 |
Total investment income | 13,693,961 |
Expenses | |
Investment management fees | 17,828,057 |
Distribution and service fees | 3,575,453 |
Accounting and legal services fees | 388,639 |
Transfer agent fees | 2,387,828 |
Trustees’ fees | 40,149 |
Custodian fees | 264,825 |
State registration fees | 169,197 |
Printing and postage | 151,716 |
Professional fees | 111,972 |
Other | 74,089 |
Total expenses | 24,991,925 |
Less expense reductions | (217,259) |
Net expenses | 24,774,666 |
Net investment loss | (11,080,705) |
Realized and unrealized gain (loss) | |
Net realized gain (loss) on | |
Unaffiliated investments | 240,922,574 |
240,922,574 | |
Change in net unrealized appreciation (depreciation) of | |
Unaffiliated investments | 505,467,834 |
505,467,834 | |
Net realized and unrealized gain | 746,390,408 |
Increase in net assets from operations | $735,309,703 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK U.S. Global Leaders Growth Fund | 13 |
Year ended 10-31-21 | Year ended 10-31-20 | |
Increase (decrease) in net assets | ||
From operations | ||
Net investment loss | $(11,080,705) | $(5,179,943) |
Net realized gain | 240,922,574 | 248,219,814 |
Change in net unrealized appreciation (depreciation) | 505,467,834 | 203,786,987 |
Increase in net assets resulting from operations | 735,309,703 | 446,826,858 |
Distributions to shareholders | ||
From earnings | ||
Class A | (106,669,651) | (47,750,249) |
Class B | — | (685,984)1 |
Class C | (10,575,186) | (5,665,021) |
Class I | (69,671,379) | (35,525,171) |
Class R2 | (207,377) | (91,843) |
Class R6 | (36,789,623) | (12,538,401) |
Total distributions | (223,913,216) | (102,256,669) |
From fund share transactions | 296,431,706 | 117,931,269 |
Total increase | 807,828,193 | 462,501,458 |
Net assets | ||
Beginning of year | 2,019,561,716 | 1,557,060,258 |
End of year | $2,827,389,909 | $2,019,561,716 |
1 | Share class was redesignated during the year. Refer to Note 5 for further details. |
14 | JOHN HANCOCK U.S. Global Leaders Growth Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS A SHARES Period ended | 10-31-21 | 10-31-20 | 10-31-19 | 10-31-18 | 10-31-17 |
Per share operating performance | |||||
Net asset value, beginning of period | $62.60 | $51.76 | $49.26 | $47.15 | $41.00 |
Net investment loss1 | (0.39) | (0.22) | (0.05) | (0.07) | (0.05) |
Net realized and unrealized gain (loss) on investments | 21.14 | 14.56 | 8.18 | 5.51 | 8.31 |
Total from investment operations | 20.75 | 14.34 | 8.13 | 5.44 | 8.26 |
Less distributions | |||||
From net realized gain | (7.15) | (3.50) | (5.63) | (3.33) | (2.11) |
Net asset value, end of period | $76.20 | $62.60 | $51.76 | $49.26 | $47.15 |
Total return (%)2,3 | 35.67 | 29.28 | 18.96 | 12.11 | 21.12 |
Ratios and supplemental data | |||||
Net assets, end of period (in millions) | $1,217 | $921 | $707 | $612 | $577 |
Ratios (as a percentage of average net assets): | |||||
Expenses before reductions | 1.13 | 1.16 | 1.16 | 1.16 | 1.17 |
Expenses including reductions | 1.13 | 1.15 | 1.15 | 1.15 | 1.16 |
Net investment loss | (0.57) | (0.40) | (0.11) | (0.14) | (0.12) |
Portfolio turnover (%) | 32 | 50 | 32 | 42 | 41 |
1 | Based on average daily shares outstanding. |
2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
3 | Does not reflect the effect of sales charges, if any. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK U.S. Global Leaders Growth Fund | 15 |
CLASS C SHARES Period ended | 10-31-21 | 10-31-20 | 10-31-19 | 10-31-18 | 10-31-17 |
Per share operating performance | |||||
Net asset value, beginning of period | $50.00 | $42.31 | $41.59 | $40.59 | $35.84 |
Net investment loss1 | (0.70) | (0.51) | (0.34) | (0.37) | (0.32) |
Net realized and unrealized gain (loss) on investments | 16.51 | 11.70 | 6.69 | 4.70 | 7.18 |
Total from investment operations | 15.81 | 11.19 | 6.35 | 4.33 | 6.86 |
Less distributions | |||||
From net realized gain | (7.15) | (3.50) | (5.63) | (3.33) | (2.11) |
Net asset value, end of period | $58.66 | $50.00 | $42.31 | $41.59 | $40.59 |
Total return (%)2,3 | 34.66 | 28.30 | 18.07 | 11.28 | 20.21 |
Ratios and supplemental data | |||||
Net assets, end of period (in millions) | $79 | $82 | $69 | $70 | $102 |
Ratios (as a percentage of average net assets): | |||||
Expenses before reductions | 1.88 | 1.91 | 1.91 | 1.91 | 1.92 |
Expenses including reductions | 1.88 | 1.90 | 1.90 | 1.90 | 1.91 |
Net investment loss | (1.32) | (1.15) | (0.85) | (0.91) | (0.86) |
Portfolio turnover (%) | 32 | 50 | 32 | 42 | 41 |
1 | Based on average daily shares outstanding. |
2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
3 | Does not reflect the effect of sales charges, if any. |
16 | JOHN HANCOCK U.S. Global Leaders Growth Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS I SHARES Period ended | 10-31-21 | 10-31-20 | 10-31-19 | 10-31-18 | 10-31-17 |
Per share operating performance | |||||
Net asset value, beginning of period | $68.49 | $56.19 | $52.86 | $50.25 | $43.45 |
Net investment income (loss)1 | (0.25) | (0.09) | 0.09 | 0.05 | 0.06 |
Net realized and unrealized gain (loss) on investments | 23.32 | 15.89 | 8.87 | 5.89 | 8.85 |
Total from investment operations | 23.07 | 15.80 | 8.96 | 5.94 | 8.91 |
Less distributions | |||||
From net realized gain | (7.15) | (3.50) | (5.63) | (3.33) | (2.11) |
Net asset value, end of period | $84.41 | $68.49 | $56.19 | $52.86 | $50.25 |
Total return (%)2 | 36.01 | 29.58 | 19.26 | 12.37 | 21.44 |
Ratios and supplemental data | |||||
Net assets, end of period (in millions) | $1,027 | $662 | $572 | $694 | $751 |
Ratios (as a percentage of average net assets): | |||||
Expenses before reductions | 0.88 | 0.91 | 0.92 | 0.92 | 0.91 |
Expenses including reductions | 0.88 | 0.90 | 0.91 | 0.91 | 0.90 |
Net investment income (loss) | (0.32) | (0.15) | 0.17 | 0.09 | 0.13 |
Portfolio turnover (%) | 32 | 50 | 32 | 42 | 41 |
1 | Based on average daily shares outstanding. |
2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK U.S. Global Leaders Growth Fund | 17 |
CLASS R2 SHARES Period ended | 10-31-21 | 10-31-20 | 10-31-19 | 10-31-18 | 10-31-17 |
Per share operating performance | |||||
Net asset value, beginning of period | $66.33 | $54.71 | $51.80 | $49.48 | $42.99 |
Net investment loss1 | (0.50) | (0.31) | (0.12) | (0.14) | (0.12) |
Net realized and unrealized gain (loss) on investments | 22.48 | 15.43 | 8.66 | 5.79 | 8.72 |
Total from investment operations | 21.98 | 15.12 | 8.54 | 5.65 | 8.60 |
Less distributions | |||||
From net realized gain | (7.15) | (3.50) | (5.63) | (3.33) | (2.11) |
Total distributions | (7.15) | (3.50) | (5.63) | (3.33) | (2.11) |
Net asset value, end of period | $81.16 | $66.33 | $54.71 | $51.80 | $49.48 |
Total return (%)2 | 35.50 | 29.11 | 18.81 | 11.95 | 20.93 |
Ratios and supplemental data | |||||
Net assets, end of period (in millions) | $2 | $2 | $1 | $2 | $5 |
Ratios (as a percentage of average net assets): | |||||
Expenses before reductions | 1.25 | 1.28 | 1.29 | 1.30 | 1.31 |
Expenses including reductions | 1.24 | 1.27 | 1.28 | 1.29 | 1.30 |
Net investment loss | (0.68) | (0.53) | (0.23) | (0.28) | (0.26) |
Portfolio turnover (%) | 32 | 50 | 32 | 42 | 41 |
1 | Based on average daily shares outstanding. |
2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
18 | JOHN HANCOCK U.S. Global Leaders Growth Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS R6 SHARES Period ended | 10-31-21 | 10-31-20 | 10-31-19 | 10-31-18 | 10-31-17 |
Per share operating performance | |||||
Net asset value, beginning of period | $69.12 | $56.61 | $53.17 | $50.47 | $43.59 |
Net investment income (loss)1 | (0.17) | (0.03) | 0.13 | 0.11 | 0.11 |
Net realized and unrealized gain (loss) on investments | 23.55 | 16.04 | 8.94 | 5.92 | 8.88 |
Total from investment operations | 23.38 | 16.01 | 9.07 | 6.03 | 8.99 |
Less distributions | |||||
From net realized gain | (7.15) | (3.50) | (5.63) | (3.33) | (2.11) |
Net asset value, end of period | $85.35 | $69.12 | $56.61 | $53.17 | $50.47 |
Total return (%)2 | 36.14 | 29.74 | 19.37 | 12.50 | 21.56 |
Ratios and supplemental data | |||||
Net assets, end of period (in millions) | $501 | $353 | $199 | $143 | $6 |
Ratios (as a percentage of average net assets): | |||||
Expenses before reductions | 0.78 | 0.80 | 0.81 | 0.81 | 0.82 |
Expenses including reductions | 0.77 | 0.79 | 0.80 | 0.80 | 0.80 |
Net investment income (loss) | (0.22) | (0.06) | 0.24 | 0.21 | 0.23 |
Portfolio turnover (%) | 32 | 50 | 32 | 42 | 41 |
1 | Based on average daily shares outstanding. |
2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK U.S. Global Leaders Growth Fund | 19 |
20 | JOHN HANCOCK U.S. Global Leaders Growth Fund | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK U.S. Global Leaders Growth Fund | 21 |
October 31, 2021 | October 31, 2020 | |
Ordinary income | $63,359,039 | — |
Long-term capital gains | 160,554,177 | $102,256,669 |
Total | $223,913,216 | $102,256,669 |
22 | JOHN HANCOCK U.S. Global Leaders Growth Fund | ANNUAL REPORT |
Class | Expense reduction |
Class A | $96,698 |
Class C | 7,050 |
Class I | 75,053 |
Class | Expense reduction |
Class R2 | $182 |
Class R6 | 38,276 |
Total | $217,259 |
Class | Rule 12b-1 Fee | Service fee |
Class A | 0.25% | — |
Class C | 1.00% | — |
Class R2 | 0.25% | 0.25% |
ANNUAL REPORT | JOHN HANCOCK U.S. Global Leaders Growth Fund | 23 |
Class | Distribution and service fees | Transfer agent fees |
Class A | $2,757,713 | $1,270,075 |
Class C | 807,908 | 93,097 |
Class I | — | 982,132 |
Class R2 | 9,832 | 202 |
Class R6 | — | 42,322 |
Total | $3,575,453 | $2,387,828 |
Year Ended 10-31-21 | Year Ended 10-31-20 | |||
Shares | Amount | Shares | Amount | |
Class A shares | ||||
Sold | 1,956,885 | $132,033,131 | 2,785,709 | $153,418,941 |
Distributions reinvested | 1,644,933 | 102,676,732 | 906,110 | 46,003,160 |
Repurchased | (2,341,045) | (158,754,561) | (2,640,935) | (143,313,123) |
Net increase | 1,260,773 | $75,955,302 | 1,050,884 | $56,108,978 |
Class B shares | ||||
Sold | — | — | 2,415 | $105,252 |
Distributions reinvested | — | — | 15,375 | 627,298 |
Repurchased | — | — | (222,470) | (10,357,308) |
Net decrease | — | — | (204,680) | $(9,624,758) |
24 | JOHN HANCOCK U.S. Global Leaders Growth Fund | ANNUAL REPORT |
Year Ended 10-31-21 | Year Ended 10-31-20 | |||
Shares | Amount | Shares | Amount | |
Class C shares | ||||
Sold | 370,756 | $19,155,351 | 465,711 | $20,787,428 |
Distributions reinvested | 212,087 | 10,258,648 | 130,283 | 5,319,456 |
Repurchased | (862,214) | (45,520,770) | (592,162) | (26,516,412) |
Net increase (decrease) | (279,371) | $(16,106,771) | 3,832 | $(409,528) |
Class I shares | ||||
Sold | 4,251,475 | $316,735,228 | 3,082,659 | $184,254,985 |
Distributions reinvested | 969,993 | 66,929,518 | 616,231 | 34,157,667 |
Repurchased | (2,716,780) | (201,775,992) | (4,216,895) | (243,529,781) |
Net increase (decrease) | 2,504,688 | $181,888,754 | (518,005) | $(25,117,129) |
Class R2 shares | ||||
Sold | 9,173 | $655,457 | 10,279 | $585,819 |
Distributions reinvested | 2,430 | 161,714 | 1,623 | 87,417 |
Repurchased | (10,173) | (704,380) | (11,774) | (656,619) |
Net increase | 1,430 | $112,791 | 128 | $16,617 |
Class R6 shares | ||||
Sold | 1,551,659 | $117,549,138 | 2,439,967 | $149,938,899 |
Distributions reinvested | 526,889 | 36,729,467 | 223,943 | 12,513,939 |
Repurchased | (1,313,678) | (99,696,975) | (1,064,472) | (65,495,749) |
Net increase | 764,870 | $54,581,630 | 1,599,438 | $96,957,089 |
Total net increase | 4,252,390 | $296,431,706 | 1,931,597 | $117,931,269 |
Redesignation | Effective date | Amount | |||||
Class B shares as Class A shares | October 14, 2020 | $4,322,841 |
ANNUAL REPORT | JOHN HANCOCK U.S. Global Leaders Growth Fund | 25 |
26 | JOHN HANCOCK U.S. Global Leaders Growth Fund | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK U.S. GLOBAL LEADERS GROWTH FUND | 27 |
28 | JOHN HANCOCK U.S. GLOBAL LEADERS GROWTH FUND | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK U.S. GLOBAL LEADERS GROWTH FUND | 29 |
(a) | the skills and competency with which the Advisor has in the past managed the Trust’s affairs and its subadvisory relationship, the Advisor’s oversight and monitoring of the Subadvisor’s investment performance and compliance programs, such as the Subadvisor’s compliance with fund policies and objectives, review of brokerage matters, including with respect to trade allocation and best execution and the Advisor’s timeliness in responding to performance issues; |
(b) | the background, qualifications and skills of the Advisor’s personnel; |
(c) | the Advisor’s compliance policies and procedures and its responsiveness to regulatory changes and fund industry developments; |
30 | JOHN HANCOCK U.S. GLOBAL LEADERS GROWTH FUND | ANNUAL REPORT |
(d) | the Advisor’s administrative capabilities, including its ability to supervise the other service providers for the fund, as well as the Advisor’s oversight of any securities lending activity, its monitoring of class action litigation and collection of class action settlements on behalf of the fund, and bringing loss recovery actions on behalf of the fund; |
(e) | the financial condition of the Advisor and whether it has the financial wherewithal to provide a high level and quality of services to the fund; |
(f) | the Advisor’s initiatives intended to improve various aspects of the Trust’s operations and investor experience with the fund; and |
(g) | the Advisor’s reputation and experience in serving as an investment advisor to the Trust and the benefit to shareholders of investing in funds that are part of a family of funds offering a variety of investments. |
(a) | reviewed information prepared by management regarding the fund’s performance; |
(b) | considered the comparative performance of an applicable benchmark index; |
(c) | considered the performance of comparable funds, if any, as included in the report prepared by an independent third-party provider of fund data; and |
(d) | took into account the Advisor’s analysis of the fund’s performance and its plans and recommendations regarding the Trust’s subadvisory arrangements generally. |
ANNUAL REPORT | JOHN HANCOCK U.S. GLOBAL LEADERS GROWTH FUND | 31 |
(a) | reviewed financial information of the Advisor; |
(b) | reviewed and considered information presented by the Advisor regarding the net profitability to the Advisor and its affiliates with respect to the fund; |
(c) | received and reviewed profitability information with respect to the John Hancock Fund Complex as a whole and with respect to the fund; |
(d) | received information with respect to the Advisor’s allocation methodologies used in preparing the profitability data and considered that the Advisor hired an independent third-party consultant to provide an analysis of the Advisor’s allocation methodologies; |
(e) | considered that the John Hancock insurance companies that are affiliates of the Advisor, as shareholders of the Trust directly or through their separate accounts, receive certain tax credits or deductions relating to foreign taxes paid and dividends received by certain funds of the Trust and noted that these tax benefits, which are not available to participants in qualified retirement plans under applicable income tax law, are reflected in the profitability information reviewed by the Board; |
(f) | considered that the Advisor also provides administrative services to the fund on a cost basis pursuant to an administrative services agreement; |
(g) | noted that affiliates of the Advisor provide transfer agency services and distribution services to the fund, and that the fund’s distributor also receives Rule 12b-1 payments to support distribution of the fund; |
(h) | noted that the Advisor also derives reputational and other indirect benefits from providing advisory services to the fund; |
(i) | noted that the subadvisory fee for the fund is paid by the Advisor and is negotiated at arm’s length; |
(j) | considered the Advisor’s ongoing costs and expenditures necessary to improve services, meet new regulatory and compliance requirements, and adapt to other challenges impacting the fund industry; and |
32 | JOHN HANCOCK U.S. GLOBAL LEADERS GROWTH FUND | ANNUAL REPORT |
(k) | considered that the Advisor should be entitled to earn a reasonable level of profits in exchange for the level of services it provides to the fund and the risks that it assumes as Advisor, including entrepreneurial, operational, reputational, litigation and regulatory risk. |
(a) | considered that the Advisor has contractually agreed to waive a portion of its management fee for certain funds of the John Hancock Fund Complex, including the fund (the participating portfolios) or otherwise reimburse the expenses of the participating portfolios (the reimbursement). This waiver is based upon aggregate net assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund; |
(b) | reviewed the fund’s advisory fee structure and concluded that: (i) the fund’s fee structure contains breakpoints at the subadvisory fee level and that such breakpoints are reflected as breakpoints in the advisory fees for the fund; and (ii) although economies of scale cannot be measured with precision, these arrangements permit shareholders of the fund to benefit from economies of scale if the fund grows. The Board also took into account management’s discussion of the fund’s advisory fee structure; and |
(c) | the Board also considered the effect of the fund’s growth in size on its performance and fees. The Board also noted that if the fund’s assets increase over time, the fund may realize other economies of scale. |
(1) | information relating to the Subadvisor’s business, including current subadvisory services to the Trust (and other funds in the John Hancock Fund Complex); |
(2) | the historical and current performance of the fund and comparative performance information relating to an applicable benchmark index and comparable funds; |
(3) | the subadvisory fee for the fund, including any breakpoints, and to the extent available, comparable fee information prepared by an independent third party provider of fund data; and |
(4) | information relating to the nature and scope of any material relationships and their significance to the Trust’s Advisor and Subadvisor. |
ANNUAL REPORT | JOHN HANCOCK U.S. GLOBAL LEADERS GROWTH FUND | 33 |
(1) | the Subadvisor has extensive experience and demonstrated skills as a manager; |
34 | JOHN HANCOCK U.S. GLOBAL LEADERS GROWTH FUND | ANNUAL REPORT |
(2) | the performance of the fund has generally been in line with or outperformed the historical performance of comparable funds; |
(3) | the subadvisory fee is reasonable in relation to the level and quality of services being provided under the Subadvisory Agreement; and |
(4) | noted that the subadvisory fees are paid by the Advisor not the fund and that the subadvisory fee breakpoints are reflected as breakpoints in the advisory fees for the fund in order to permit shareholders to benefit from economies of scale if the fund grows. |
ANNUAL REPORT | JOHN HANCOCK U.S. GLOBAL LEADERS GROWTH FUND | 35 |
Independent Trustees | ||
Name, year of birth Position(s) held with Trust Principal occupation(s) and other directorships during past 5 years | Trustee of the Trust since1 | Number of John Hancock funds overseen by Trustee |
Hassell H. McClellan, Born: 1945 | 2012 | 191 |
Trustee and Chairperson of the Board | ||
Director/Trustee, Virtus Funds (2008-2020); Director, The Barnes Group (2010-2021); Associate Professor, The Wallace E. Carroll School of Management, Boston College (retired 2013). Trustee (since 2005) and Chairperson of the Board (since 2017) of various trusts within the John Hancock Fund Complex. | ||
Charles L. Bardelis,2 Born: 1941 | 2012 | 191 |
Trustee | ||
Director, Island Commuter Corp. (marine transport). Trustee of various trusts within the John Hancock Fund Complex (since 1988). | ||
James R. Boyle, Born: 1959 | 2015 | 191 |
Trustee | ||
Chief Executive Officer, Foresters Financial (since 2018); Chairman and Chief Executive Officer, Zillion Group, Inc. (formerly HealthFleet, Inc.) (healthcare) (2014-2018); Executive Vice President and Chief Executive Officer, U.S. Life Insurance Division of Genworth Financial, Inc. (insurance) (January 2014–July 2014); Senior Executive Vice President, Manulife Financial, President and Chief Executive Officer, John Hancock (1999–2012); Chairman and Director, John Hancock Investment Management LLC, John Hancock Investment Management Distributors LLC, and John Hancock Variable Trust Advisers LLC (2005–2010). Trustee of various trusts within the John Hancock Fund Complex (2005–2014 and since 2015). | ||
Peter S. Burgess,2 Born: 1942 | 2012 | 191 |
Trustee | ||
Consultant (financial, accounting, and auditing matters) (since 1999); Certified Public Accountant; Partner, Arthur Andersen (independent public accounting firm) (prior to 1999); Director, Lincoln Educational Services Corporation (2004-2021); Director, Symetra Financial Corporation (2010–2016); Director, PMA Capital Corporation (2004–2010). Trustee of various trusts within the John Hancock Fund Complex (since 2005). | ||
William H. Cunningham, Born: 1944 | 2005 | 191 |
Trustee | ||
Professor, University of Texas, Austin, Texas (since 1971); former Chancellor, University of Texas System and former President of the University of Texas, Austin, Texas; Chairman (since 2009) and Director (since 2006), Lincoln National Corporation (insurance); Director, Southwest Airlines (since 2000); former Director, LIN Television (2009–2014). Trustee of various trusts within the John Hancock Fund Complex (since 1986). | ||
Grace K. Fey, Born: 1946 | 2012 | 191 |
Trustee | ||
Chief Executive Officer, Grace Fey Advisors (since 2007); Director and Executive Vice President, Frontier Capital Management Company (1988–2007); Director, Fiduciary Trust (since 2009). Trustee of various trusts within the John Hancock Fund Complex (since 2008). |
36 | JOHN HANCOCK U.S. GLOBAL LEADERS GROWTH FUND | ANNUAL REPORT |
Independent Trustees (continued) | ||
Name, year of birth Position(s) held with Trust Principal occupation(s) and other directorships during past 5 years | Trustee of the Trust since1 | Number of John Hancock funds overseen by Trustee |
Deborah C. Jackson, Born: 1952 | 2008 | 191 |
Trustee | ||
President, Cambridge College, Cambridge, Massachusetts (since 2011); Board of Directors, Amwell Corporation (since 2020); Board of Directors, Massachusetts Women’s Forum (2018-2020); Board of Directors, National Association of Corporate Directors/New England (2015-2020); Board of Directors, Association of Independent Colleges and Universities of Massachusetts (2014-2017); Chief Executive Officer, American Red Cross of Massachusetts Bay (2002–2011); Board of Directors of Eastern Bank Corporation (since 2001); Board of Directors of Eastern Bank Charitable Foundation (since 2001); Board of Directors of American Student Assistance Corporation (1996–2009); Board of Directors of Boston Stock Exchange (2002–2008); Board of Directors of Harvard Pilgrim Healthcare (health benefits company) (2007–2011). Trustee of various trusts within the John Hancock Fund Complex (since 2008). | ||
Steven R. Pruchansky, Born: 1944 | 2005 | 191 |
Trustee and Vice Chairperson of the Board | ||
Managing Director, Pru Realty (since 2017); Chairman and Chief Executive Officer, Greenscapes of Southwest Florida, Inc. (2014-2020); Director and President, Greenscapes of Southwest Florida, Inc. (until 2000); Member, Board of Advisors, First American Bank (until 2010); Managing Director, Jon James, LLC (real estate) (since 2000); Partner, Right Funding, LLC (2014-2017); Director, First Signature Bank & Trust Company (until 1991); Director, Mast Realty Trust (until 1994); President, Maxwell Building Corp. (until 1991). Trustee (since 1992), Chairperson of the Board (2011–2012), and Vice Chairperson of the Board (since 2012) of various trusts within the John Hancock Fund Complex. | ||
Frances G. Rathke,2 Born: 1960 | 2020 | 191 |
Trustee | ||
Board Member, Oatly Group AB (plant-based drink company) (since 2021): Director, Northern New England Energy Corporation (since 2017); Director, Audit Committee Chair and Compensation Committee Member, Green Mountain Power Corporation (since 2016); Director, Treasurer and Finance & Audit Committee Chair, Flynn Center for Performing Arts (since 2016); Director, Audit Committee Chair and Compensation Committee Member, Planet Fitness (since 2016); Director, Citizen Cider, Inc. (high-end hard cider and hard seltzer company) (since 2016); Chief Financial Officer and Treasurer, Keurig Green Mountain, Inc. (2003-retired 2015); Independent Financial Consultant, Frances Rathke Consulting (strategic and financial consulting services) (2001-2003); Chief Financial Officer and Secretary, Ben & Jerry’s Homemade, Inc. (1989-2000, including prior positions); Senior Manager, Coopers & Lybrand, LLC (independent public accounting firm) (1982-1989). Trustee of various trusts within the John Hancock Fund Complex (since 2020). | ||
Gregory A. Russo, Born: 1949 | 2009 | 191 |
Trustee | ||
Director and Audit Committee Chairman (2012-2020), and Member, Audit Committee and Finance Committee (2011-2020), NCH Healthcare System, Inc. (holding company for multi-entity healthcare system); Director and Member (2012-2018) and Finance Committee Chairman (2014-2018), The Moorings, Inc. (nonprofit continuing care community); Vice Chairman, Risk & Regulatory Matters, KPMG LLP (KPMG) (2002–2006); Vice Chairman, Industrial Markets, KPMG (1998–2002); Chairman and Treasurer, Westchester County, New York, Chamber of Commerce (1986–1992); Director, Treasurer, and Chairman of Audit and Finance Committees, Putnam Hospital Center (1989–1995); Director and Chairman of Fundraising Campaign, United Way of Westchester and Putnam Counties, New York (1990–1995). Trustee of various trusts within the John Hancock Fund Complex (since 2008). |
ANNUAL REPORT | JOHN HANCOCK U.S. GLOBAL LEADERS GROWTH FUND | 37 |
Non-Independent Trustees3 | ||
Name, year of birth Position(s) held with Trust Principal occupation(s) and other directorships during past 5 years | Trustee of the Trust since1 | Number of John Hancock funds overseen by Trustee |
Andrew G. Arnott, Born: 1971 | 2017 | 191 |
President and Non-Independent Trustee | ||
Head of Wealth and Asset Management, United States and Europe, for John Hancock and Manulife (since 2018); Director and Executive Vice President, John Hancock Investment Management LLC (since 2005, including prior positions); Director and Executive Vice President, John Hancock Variable Trust Advisers LLC (since 2006, including prior positions); President, John Hancock Investment Management Distributors LLC (since 2004, including prior positions); President of various trusts within the John Hancock Fund Complex (since 2007, including prior positions). Trustee of various trusts within the John Hancock Fund Complex (since 2017). | ||
Marianne Harrison, Born: 1963 | 2018 | 191 |
Non-Independent Trustee | ||
President and CEO, John Hancock (since 2017); President and CEO, Manulife Canadian Division (2013–2017); Member, Board of Directors, Boston Medical Center (since 2021); Member, Board of Directors, CAE Inc. (since 2019); Member, Board of Directors, MA Competitive Partnership Board (since 2018); Member, Board of Directors, American Council of Life Insurers (ACLI) (since 2018); Member, Board of Directors, Communitech, an industry-led innovation center that fosters technology companies in Canada (2017-2019); Member, Board of Directors, Manulife Assurance Canada (2015-2017); Board Member, St. Mary’s General Hospital Foundation (2014-2017); Member, Board of Directors, Manulife Bank of Canada (2013- 2017); Member, Standing Committee of the Canadian Life & Health Assurance Association (2013-2017); Member, Board of Directors, John Hancock USA, John Hancock Life & Health, John Hancock New York (2012–2013). Trustee of various trusts within the John Hancock Fund Complex (since 2018). |
Principal officers who are not Trustees | |
Name, year of birth Position(s) held with Trust Principal occupation(s) during past 5 years | Current Position(s) with the Trust since |
Charles A. Rizzo, Born: 1957 | 2007 |
Chief Financial Officer | |
Vice President, John Hancock Financial Services (since 2008); Senior Vice President, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2008); Chief Financial Officer of various trusts within the John Hancock Fund Complex (since 2007). | |
Salvatore Schiavone, Born: 1965 | 2010 |
Treasurer | |
Assistant Vice President, John Hancock Financial Services (since 2007); Vice President, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2007); Treasurer of various trusts within the John Hancock Fund Complex (since 2007, including prior positions). | |
Christopher (Kit) Sechler, Born: 1973 | 2018 |
Secretary and Chief Legal Officer | |
Vice President and Deputy Chief Counsel, John Hancock Investment Management (since 2015); Assistant Vice President and Senior Counsel (2009–2015), John Hancock Investment Management; Assistant Secretary of John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2009); Chief Legal Officer and Secretary of various trusts within the John Hancock Fund Complex (since 2009, including prior positions). |
38 | JOHN HANCOCK U.S. GLOBAL LEADERS GROWTH FUND | ANNUAL REPORT |
Principal officers who are not Trustees (continued) | |
Name, year of birth Position(s) held with Trust Principal occupation(s) during past 5 years | Current Position(s) with the Trust since |
Trevor Swanberg, Born: 1979 | 2020 |
Chief Compliance Officer | |
Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2020); Deputy Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (2019–2020); Assistant Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (2016–2019); Vice President, State Street Global Advisors (2015–2016); Chief Compliance Officer of various trusts within the John Hancock Fund Complex (since 2016, including prior positions). |
1 | Each Trustee holds office until his or her successor is elected and qualified, or until the Trustee’s death, retirement, resignation, or removal. Mr. Boyle has served as Trustee at various times prior to the date listed in the table. |
2 | Member of the Audit Committee. |
3 | The Trustee is a Non-Independent Trustee due to current or former positions with the Advisor and certain affiliates. |
ANNUAL REPORT | JOHN HANCOCK U.S. GLOBAL LEADERS GROWTH FUND | 39 |
Steven R. Pruchansky, Vice Chairperson
Andrew G. Arnott†
Charles L. Bardelis*
James R. Boyle
Peter S. Burgess*
William H. Cunningham
Grace K. Fey
Marianne Harrison†
Deborah C. Jackson
Frances G. Rathke*
Gregory A. Russo
President
Chief Financial Officer
Treasurer
Secretary and Chief Legal Officer
Chief Compliance Officer
Kishore Rao
Robert L. Rohn
You can also contact us: | ||
800-225-5291 | Regular mail: | Express mail: |
jhinvestments.com | John Hancock Signature Services, Inc. P.O. Box 219909 Kansas City, MO 64121-9909 | John Hancock Signature Services, Inc. 430 W 7th Street Suite 219909 Kansas City, MO 64105-1407 |
40 | JOHN HANCOCK U.S. GLOBAL LEADERS GROWTH FUND | ANNUAL REPORT |
GOVERNANCE FUNDS
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MF1901714 | 26A 10/21 |
ITEM 2. CODE OF ETHICS.
As of the end of the fiscal year October 31, 2021, the registrant has adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies to its Chief Executive Officer, Chief Financial Officer and Treasurer (respectively, the principal executive officer, the principal financial officer and the principal accounting officer, the "Covered Officers"). A copy of the code of ethics is filed as an exhibit to this Form N-CSR.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Peter S. Burgess is the audit committee financial expert and is "independent", pursuant to general instructions on Form N-CSR Item 3.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Audit Fees
The aggregate fees billed for professional services rendered by the principal accountant for the audits of the registrant's annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements amounted to the following for the fiscal years ended October 31, 2021 and 2020. These fees were billed to the registrant and were approved by the registrant's audit committee.
Fund | October 31, 2021 | October 31, 2020 |
John Hancock Classic Value Fund | $41,113 | $40,115 |
John Hancock U.S. Global Leaders Growth Fund | 41,113 | 40,115 |
Total | $82,226 | $80,230 |
(b) Audit-Related Services
Audit-related service fees for assurance and related services by the principal accountant are billed to the registrant or to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser ("control affiliates") that provides ongoing services to the registrant. The nature of the services provided was affiliated service provider internal controls reviews.
Fund | October 31, 2021 | October 31, 2020 |
John Hancock Classic Value Fund | $771 | $604 |
John Hancock U.S. Global Leaders Growth Fund | 771 | 604 |
Total | $1,542 | $1,208 |
In addition, amounts billed to control affiliates for service provider internal controls reviews were $119,500 and $116,000 for the fiscal years ended October 31, 2021 and 2020, respectively.
(c) Tax Fees
The aggregate fees billed for professional services rendered by the principal accountant for tax compliance, tax advice and tax planning ("tax fees") amounted to the following for the fiscal years ended October 31, 2021 and 2021. The nature of the services comprising the tax fees was the review of the registrant's tax returns and tax distribution requirements. These fees were billed to the registrant and were approved by the registrant's audit committee.
Fund | October 31, 2021 | October 31, 2020 |
John Hancock Classic Value Fund | $3,914 | $3,837 |
John Hancock U.S. Global Leaders Growth Fund | 5,164 | 5,087 |
Total | $9,078 | $8,924 |
(d) All Other Fees
Other fees billed for professional services rendered by the principal accountant to the registrant or to the control affiliates for the fiscal years ended October 31, 2021 and 2020 amounted to the following:
Fund | October 31, 2021 | October 31, | 2020 |
John Hancock Classic Value Fund | $271 | $ | 89 |
John Hancock U.S. Global Leaders Growth Fund | 271 |
| 89 |
Total | $542 |
| $178 |
The nature of the services comprising all other fees is advisory services provided to the investment manager.
(e)(1) Audit Committee Pre-Approval Policies and Procedures:
The trust's Audit Committee must pre-approve all audit and non-audit services provided by the independent registered public accounting firm (the "Auditor") relating to the operations or financial reporting of the funds. Prior to the commencement of any audit or non-audit services to a fund, the Audit Committee reviews the services to determine whether they are appropriate and permissible under applicable law.
The trust's Audit Committee has adopted policies and procedures to, among other purposes, provide a framework for the Committee's consideration of audit-related and non-audit services by the Auditor. The policies and procedures require that any audit-related and non-audit service provided by the Auditor and any non-audit service provided by the Auditor to a fund service provider that relates directly to the operations and financial reporting of a fund are subject to approval by the Audit Committee before such service is provided. Audit-related services provided by the Auditor that are expected to exceed $25,000 per instance/per fund are subject to specific pre-approval by the Audit Committee. Tax services provided by the Auditor that are expected to exceed $30,000 per instance/per fund are subject to specific pre-approval by the Audit Committee.
All audit services, as well as the audit-related and non-audit services that are expected to exceed the amounts stated above, must be approved in advance of provision of the service by formal resolution of the Audit Committee. At the regularly scheduled Audit Committee meetings, the Committee reviews a report summarizing the services, including fees, provided by the Auditor.
(e)(2) Services approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X:
Audit-Related Fees, Tax Fees and All Other Fees:
There were no amounts that were approved by the Audit Committee pursuant to the de minimis exception under Rule 2-01 of Regulation S-X.
(f) According to the registrant's principal accountant, for the fiscal period ended October 31, 2021, the percentage of hours spent on the audit of the registrant's financial statements for the most recent fiscal year that were attributed to work performed by persons who were not full-time, permanent employees of principal accountant was less than 50%.
(g) The aggregate non-audit fees billed by the registrant's accountant for non- audit services rendered to the registrant and rendered to the registrant's control affiliates for the fiscal years ended October 31, 2021 and 2020 amounted to the following:
Trust | October 31, 2021 | October 31, 2020 |
John Hancock Capital Series | $1,038,149 | $1,135,881 |
(h) The audit committee of the registrant has considered the non-audit services provided by the registrant's principal accountant(s) to the control affiliates and has determined that the services that were not pre-approved are compatible with maintaining the principal accountant(s)' independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
The registrant has a separately-designated standing audit committee comprised of independent trustees. The members of the audit committee are as follows:
Peter S. Burgess - Chairman
Charles L. Bardelis
Frances G. Rathke
ITEM 6. SCHEDULE OF INVESTMENTS.
(a)Not applicable.
(b)Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED- END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There were no material changes to previously disclosed John Hancock Funds – Nominating and Governance Committee Charter.
ITEM 11. CONTROLS AND PROCEDURES.
(a)Based upon their evaluation of the registrant's disclosure controls and procedures as
conducted within 90 days of the filing date of this Form N-CSR, the registrant's principal executive officer and principal financial officer have concluded that those disclosure controls and procedures provide reasonable assurance that the material information required to be disclosed by the registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms.
(b)There were no changes in the registrant's internal control over financial reporting that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting.
ITEM 12. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 13. EXHIBITS.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
John Hancock Capital Series
By: | /s/ Andrew Arnott |
| ------------------------------ |
| Andrew Arnott |
| President |
Date: | December 8, 2021 |
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: | December 8, 2021 |
By: | /s/ Charles A. Rizzo |
| -------------------------------- |
| Charles A. Rizzo |
| Chief Financial Officer |
Date: | December 8, 2021 |