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- 04186
John Hancock Income Securities Trust
(Exact name of registrant as specified in charter)
200 Berkeley Street, Boston, Massachusetts 02116 (Address of principal executive offices) (Zip code)
Salvatore Schiavone
Treasurer
200 Berkeley Street
Boston, Massachusetts 02116
(Name and address of agent for service) Registrant's telephone number, including area code: 617-543-9634
Date of fiscal year end: | October 31 |
Date of reporting period: | October 31, 2022 |
ITEM 1. REPORT TO STOCKHOLDERS
Manulife Investment Management
John Hancock Investment Management
Head of Wealth and Asset Management,
United States and Europe
ANNUAL REPORT | JOHN HANCOCK INCOME SECURITIES TRUST | 1 |
2 | JOHN HANCOCK INCOME SECURITIES TRUST | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK INCOME SECURITIES TRUST | 3 |
4 | JOHN HANCOCK INCOME SECURITIES TRUST | ANNUAL REPORT |
COUNTRY COMPOSITION AS OF 10/31/2022 (% of total investments) | |
United States | 89.9 |
Canada | 1.8 |
United Kingdom | 1.7 |
Other countries | 6.6 |
TOTAL | 100.0 |
ANNUAL REPORT | JOHN HANCOCK INCOME SECURITIES TRUST | 5 |
6 | JOHN HANCOCK INCOME SECURITIES TRUST | ANNUAL REPORT |
Average annual total returns (%) | Cumulative total returns (%) | ||||
1-Year | 5-Year | 10-Year | 5-year | 10-Year | |
At Net asset value | -23.60 | -0.84 | 2.52 | -4.12 | 28.27 |
At Market price | -27.45 | -1.42 | 1.30 | -6.92 | 13.78 |
Bloomberg U.S. Government/Credit Index | -16.04 | -0.32 | 0.86 | -1.57 | 8.94 |
ANNUAL REPORT | JOHN HANCOCK INCOME SECURITIES TRUST | 7 |
8 | JOHN HANCOCK INCOME SECURITIES TRUST | ANNUAL REPORT |
Rate (%) | Maturity date | Par value^ | Value | ||
U.S. Government and Agency obligations 55.8% (33.3% of Total investments) | $73,706,034 | ||||
(Cost $79,378,631) | |||||
U.S. Government 27.9% | 36,822,027 | ||||
U.S. Treasury | |||||
Bond (A)(B) | 2.875 | 05-15-52 | 3,901,000 | 3,027,542 | |
Bond (B) | 3.375 | 08-15-42 | 1,365,000 | 1,177,526 | |
Note (A)(B) | 2.500 | 05-31-24 | 7,617,000 | 7,370,340 | |
Note (A)(B) | 2.750 | 08-15-32 | 6,698,000 | 5,993,663 | |
Note | 4.125 | 10-31-27 | 12,682,000 | 12,615,611 | |
Note (B) | 4.250 | 09-30-24 | 3,372,000 | 3,354,877 | |
Note | 4.250 | 10-15-25 | 3,300,000 | 3,282,468 | |
U.S. Government Agency 27.9% | 36,884,007 | ||||
Federal Home Loan Mortgage Corp. | |||||
30 Yr Pass Thru | 2.500 | 08-01-50 | 54,013 | 44,879 | |
30 Yr Pass Thru | 2.500 | 08-01-51 | 737,471 | 609,994 | |
30 Yr Pass Thru | 2.500 | 11-01-51 | 526,942 | 435,198 | |
30 Yr Pass Thru | 2.500 | 12-01-51 | 175,766 | 144,450 | |
30 Yr Pass Thru | 3.000 | 03-01-43 | 338,724 | 298,994 | |
30 Yr Pass Thru | 3.000 | 10-01-49 | 854,842 | 739,154 | |
30 Yr Pass Thru | 3.000 | 12-01-49 | 57,606 | 49,774 | |
30 Yr Pass Thru | 3.000 | 12-01-49 | 1,192,925 | 1,025,519 | |
30 Yr Pass Thru | 3.000 | 01-01-50 | 803,306 | 696,098 | |
30 Yr Pass Thru | 3.500 | 07-01-46 | 473,295 | 428,757 | |
30 Yr Pass Thru | 3.500 | 10-01-46 | 343,501 | 308,386 | |
30 Yr Pass Thru | 3.500 | 12-01-46 | 150,824 | 136,537 | |
30 Yr Pass Thru | 3.500 | 02-01-47 | 853,332 | 771,433 | |
30 Yr Pass Thru | 3.500 | 11-01-48 | 1,633,314 | 1,476,045 | |
30 Yr Pass Thru | 4.000 | 05-01-52 | 953,754 | 875,101 | |
30 Yr Pass Thru | 4.500 | 07-01-52 | 252,560 | 237,866 | |
30 Yr Pass Thru | 4.500 | 08-01-52 | 154,586 | 145,585 | |
30 Yr Pass Thru | 4.500 | 08-01-52 | 767,962 | 723,821 | |
30 Yr Pass Thru | 4.500 | 08-01-52 | 635,043 | 598,542 | |
30 Yr Pass Thru | 4.500 | 09-01-52 | 384,283 | 361,403 | |
30 Yr Pass Thru | 4.500 | 09-01-52 | 436,035 | 411,518 | |
Federal National Mortgage Association | |||||
30 Yr Pass Thru | 2.500 | 08-01-51 | 485,744 | 401,325 | |
30 Yr Pass Thru | 2.500 | 10-01-51 | 257,472 | 212,564 | |
30 Yr Pass Thru | 2.500 | 11-01-51 | 532,547 | 440,493 | |
30 Yr Pass Thru | 2.500 | 01-01-52 | 587,111 | 483,424 | |
30 Yr Pass Thru | 2.500 | 03-01-52 | 2,049,498 | 1,686,903 | |
30 Yr Pass Thru | 3.000 | 12-01-42 | 1,016,674 | 895,606 | |
30 Yr Pass Thru | 3.000 | 07-01-43 | 260,602 | 228,592 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK INCOME SECURITIES TRUST | 9 |
Rate (%) | Maturity date | Par value^ | Value | ||
U.S. Government Agency (continued) | |||||
30 Yr Pass Thru | 3.000 | 08-01-49 | 1,967,387 | $1,695,602 | |
30 Yr Pass Thru | 3.000 | 11-01-49 | 266,862 | 229,996 | |
30 Yr Pass Thru | 3.000 | 01-01-52 | 1,910,223 | 1,632,158 | |
30 Yr Pass Thru | 3.500 | 12-01-42 | 1,149,339 | 1,043,063 | |
30 Yr Pass Thru | 3.500 | 01-01-43 | 1,179,894 | 1,070,793 | |
30 Yr Pass Thru | 3.500 | 04-01-45 | 419,742 | 379,881 | |
30 Yr Pass Thru | 3.500 | 11-01-46 | 832,280 | 751,940 | |
30 Yr Pass Thru | 3.500 | 07-01-47 | 851,084 | 768,131 | |
30 Yr Pass Thru | 3.500 | 07-01-47 | 869,777 | 788,536 | |
30 Yr Pass Thru | 3.500 | 11-01-47 | 366,694 | 330,724 | |
30 Yr Pass Thru | 3.500 | 09-01-49 | 189,640 | 169,156 | |
30 Yr Pass Thru | 3.500 | 03-01-50 | 471,241 | 419,751 | |
30 Yr Pass Thru | 4.000 | 09-01-41 | 319,044 | 299,350 | |
30 Yr Pass Thru | 4.000 | 01-01-49 | 815,701 | 751,555 | |
30 Yr Pass Thru | 4.000 | 07-01-49 | 179,274 | 166,072 | |
30 Yr Pass Thru | 4.000 | 08-01-49 | 351,979 | 325,785 | |
30 Yr Pass Thru | 4.000 | 02-01-50 | 275,879 | 254,616 | |
30 Yr Pass Thru | 4.000 | 03-01-51 | 942,357 | 870,754 | |
30 Yr Pass Thru | 4.000 | 08-01-51 | 613,796 | 568,597 | |
30 Yr Pass Thru | 4.000 | 10-01-51 | 1,258,960 | 1,157,794 | |
30 Yr Pass Thru | 4.000 | 04-01-52 | 117,950 | 107,882 | |
30 Yr Pass Thru | 4.000 | 06-01-52 | 1,173,937 | 1,070,652 | |
30 Yr Pass Thru | 4.000 | 06-01-52 | 1,174,851 | 1,072,367 | |
30 Yr Pass Thru | 4.000 | 06-01-52 | 966,091 | 885,138 | |
30 Yr Pass Thru | 4.000 | 07-01-52 | 454,766 | 415,807 | |
30 Yr Pass Thru | 4.500 | 06-01-52 | 484,718 | 456,971 | |
30 Yr Pass Thru | 4.500 | 06-01-52 | 1,113,638 | 1,048,846 | |
30 Yr Pass Thru | 4.500 | 08-01-52 | 538,952 | 506,122 | |
30 Yr Pass Thru | 4.500 | 08-01-52 | 119,304 | 112,357 | |
30 Yr Pass Thru | 4.500 | 08-01-52 | 894,121 | 839,656 | |
30 Yr Pass Thru | 4.500 | 09-01-52 | 750,843 | 709,799 | |
30 Yr Pass Thru (C) | 5.500 | TBA | 1,132,000 | 1,116,195 | |
Foreign government obligations 0.7% (0.4% of Total investments) | $940,473 | ||||
(Cost $1,124,299) | |||||
Argentina 0.1% | 190,803 | ||||
Republic of Argentina Bond (3.500% to 7-9-29, then 4.875% thereafter) | 3.500 | 07-09-41 | 801,000 | 190,803 | |
Qatar 0.2% | 240,020 | ||||
State of Qatar Bond (D) | 5.103 | 04-23-48 | 259,000 | 240,020 |
10 | JOHN HANCOCK INCOME SECURITIES TRUST | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Saudi Arabia 0.4% | $509,650 | ||||
Kingdom of Saudi Arabia Bond (D) | 4.375 | 04-16-29 | 534,000 | 509,650 | |
Corporate bonds 81.4% (48.7% of Total investments) | $107,628,146 | ||||
(Cost $127,228,405) | |||||
Communication services 8.7% | 11,496,694 | ||||
Diversified telecommunication services 2.2% | |||||
AT&T, Inc. (B) | 3.500 | 06-01-41 | 423,000 | 298,855 | |
AT&T, Inc. | 3.650 | 06-01-51 | 506,000 | 336,573 | |
Connect Finco SARL (D) | 6.750 | 10-01-26 | 371,000 | 348,740 | |
GCI LLC (D) | 4.750 | 10-15-28 | 145,000 | 122,076 | |
Level 3 Financing, Inc. (D) | 3.400 | 03-01-27 | 328,000 | 282,362 | |
Telecom Argentina SA (D) | 8.000 | 07-18-26 | 69,000 | 59,566 | |
Telefonica Emisiones SA | 5.213 | 03-08-47 | 403,000 | 302,983 | |
Telesat Canada (D) | 5.625 | 12-06-26 | 93,000 | 43,895 | |
Total Play Telecomunicaciones SA de CV (D) | 6.375 | 09-20-28 | 216,000 | 148,045 | |
Total Play Telecomunicaciones SA de CV (A)(B)(D) | 7.500 | 11-12-25 | 362,000 | 305,889 | |
Verizon Communications, Inc. (B) | 4.329 | 09-21-28 | 635,000 | 595,292 | |
Entertainment 1.9% | |||||
AMC Entertainment Holdings, Inc. (D) | 10.000 | 06-15-26 | 26,000 | 13,780 | |
Lions Gate Capital Holdings LLC (D) | 5.500 | 04-15-29 | 216,000 | 163,942 | |
Live Nation Entertainment, Inc. (A)(B)(D) | 4.750 | 10-15-27 | 92,000 | 81,873 | |
Netflix, Inc. | 4.875 | 04-15-28 | 465,000 | 441,290 | |
Netflix, Inc. (D) | 4.875 | 06-15-30 | 209,000 | 193,531 | |
Netflix, Inc. (D) | 5.375 | 11-15-29 | 92,000 | 87,400 | |
Netflix, Inc. | 5.875 | 11-15-28 | 400,000 | 397,000 | |
Playtika Holding Corp. (B)(D) | 4.250 | 03-15-29 | 28,000 | 23,323 | |
The Walt Disney Company (B) | 7.750 | 01-20-24 | 1,020,000 | 1,053,340 | |
Interactive media and services 0.0% | |||||
Match Group Holdings II LLC (D) | 3.625 | 10-01-31 | 67,000 | 51,071 | |
Media 3.8% | |||||
CCO Holdings LLC (D) | 4.500 | 06-01-33 | 160,000 | 121,330 | |
Charter Communications Operating LLC | 3.900 | 06-01-52 | 179,000 | 110,844 | |
Charter Communications Operating LLC | 4.200 | 03-15-28 | 820,000 | 734,758 | |
Charter Communications Operating LLC | 4.800 | 03-01-50 | 460,000 | 325,555 | |
Charter Communications Operating LLC | 5.750 | 04-01-48 | 531,000 | 425,905 | |
Charter Communications Operating LLC | 6.484 | 10-23-45 | 606,000 | 536,571 | |
Globo Comunicacao e Participacoes SA (D) | 4.875 | 01-22-30 | 315,000 | 246,922 | |
News Corp. (D) | 3.875 | 05-15-29 | 166,000 | 142,677 | |
News Corp. (D) | 5.125 | 02-15-32 | 84,000 | 74,970 | |
Radiate Holdco LLC (D) | 6.500 | 09-15-28 | 175,000 | 110,250 | |
Sirius XM Radio, Inc. (D) | 4.000 | 07-15-28 | 274,000 | 235,552 | |
Sirius XM Radio, Inc. (A)(B)(D) | 5.000 | 08-01-27 | 309,000 | 284,280 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK INCOME SECURITIES TRUST | 11 |
Rate (%) | Maturity date | Par value^ | Value | ||
Communication services (continued) | |||||
Media (continued) | |||||
Stagwell Global LLC (D) | 5.625 | 08-15-29 | 131,000 | $112,988 | |
Univision Communications, Inc. (B)(D) | 4.500 | 05-01-29 | 88,000 | 74,085 | |
Univision Communications, Inc. (B)(D) | 7.375 | 06-30-30 | 25,000 | 24,188 | |
Videotron, Ltd. (A)(B)(D) | 3.625 | 06-15-29 | 132,000 | 111,155 | |
VTR Finance NV (D) | 6.375 | 07-15-28 | 2,610,000 | 1,368,598 | |
Wireless telecommunication services 0.8% | |||||
MTN Mauritius Investments, Ltd. (D) | 4.755 | 11-11-24 | 225,000 | 215,508 | |
Telefonica Celular del Paraguay SA (D) | 5.875 | 04-15-27 | 200,000 | 179,568 | |
T-Mobile USA, Inc. (B) | 2.875 | 02-15-31 | 45,000 | 36,226 | |
T-Mobile USA, Inc. (B) | 3.875 | 04-15-30 | 517,000 | 457,338 | |
Vodafone Group PLC (7.000% to 1-4-29, then 5 Year U.S. Swap Rate + 4.873%) (B) | 7.000 | 04-04-79 | 228,000 | 216,600 | |
Consumer discretionary 7.4% | 9,855,498 | ||||
Auto components 0.1% | |||||
Dealer Tire LLC (D) | 8.000 | 02-01-28 | 92,000 | 80,463 | |
LCM Investments Holdings II LLC (D) | 4.875 | 05-01-29 | 74,000 | 62,420 | |
Automobiles 1.9% | |||||
Ford Motor Company | 3.250 | 02-12-32 | 134,000 | 100,610 | |
Ford Motor Credit Company LLC | 4.125 | 08-17-27 | 329,000 | 292,168 | |
Ford Motor Credit Company LLC | 5.113 | 05-03-29 | 440,000 | 393,360 | |
General Motors Company (B) | 5.400 | 10-15-29 | 306,000 | 283,629 | |
General Motors Company (B) | 5.400 | 04-01-48 | 162,000 | 127,452 | |
General Motors Financial Company, Inc. (B) | 2.400 | 10-15-28 | 611,000 | 481,504 | |
General Motors Financial Company, Inc. (B) | 3.600 | 06-21-30 | 717,000 | 585,204 | |
Hyundai Capital America (B)(D) | 1.800 | 10-15-25 | 156,000 | 137,295 | |
Hyundai Capital America (B)(D) | 2.375 | 10-15-27 | 156,000 | 126,994 | |
Diversified consumer services 0.1% | |||||
Service Corp. International | 4.000 | 05-15-31 | 183,000 | 151,878 | |
Hotels, restaurants and leisure 3.6% | |||||
Affinity Gaming (D) | 6.875 | 12-15-27 | 123,000 | 102,675 | |
Booking Holdings, Inc. (B) | 4.625 | 04-13-30 | 334,000 | 314,283 | |
CCM Merger, Inc. (D) | 6.375 | 05-01-26 | 105,000 | 95,775 | |
Choice Hotels International, Inc. (B) | 3.700 | 12-01-29 | 179,000 | 149,955 | |
Choice Hotels International, Inc. (B) | 3.700 | 01-15-31 | 171,000 | 140,390 | |
Expedia Group, Inc. (B) | 2.950 | 03-15-31 | 222,000 | 168,471 | |
Expedia Group, Inc. (B) | 4.625 | 08-01-27 | 310,000 | 290,112 | |
Expedia Group, Inc. (B) | 5.000 | 02-15-26 | 321,000 | 310,191 | |
Full House Resorts, Inc. (A)(B)(D) | 8.250 | 02-15-28 | 915,000 | 796,050 | |
Hilton Grand Vacations Borrower Escrow LLC (D) | 4.875 | 07-01-31 | 144,000 | 117,720 | |
Hilton Grand Vacations Borrower Escrow LLC (D) | 5.000 | 06-01-29 | 182,000 | 156,089 |
12 | JOHN HANCOCK INCOME SECURITIES TRUST | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Consumer discretionary (continued) | |||||
Hotels, restaurants and leisure (continued) | |||||
Hyatt Hotels Corp. | 6.000 | 04-23-30 | 144,000 | $136,489 | |
Jacobs Entertainment, Inc. (D) | 6.750 | 02-15-29 | 77,000 | 67,889 | |
Marriott International, Inc. (B) | 4.625 | 06-15-30 | 300,000 | 269,116 | |
MGM Resorts International | 4.750 | 10-15-28 | 314,000 | 272,248 | |
Mohegan Gaming & Entertainment (D) | 8.000 | 02-01-26 | 226,000 | 190,638 | |
New Red Finance, Inc. (B)(D) | 4.000 | 10-15-30 | 454,000 | 370,578 | |
Premier Entertainment Sub LLC (D) | 5.625 | 09-01-29 | 114,000 | 84,360 | |
Resorts World Las Vegas LLC (D) | 4.625 | 04-16-29 | 200,000 | 143,210 | |
Travel + Leisure Company (B)(D) | 4.625 | 03-01-30 | 145,000 | 117,046 | |
Travel + Leisure Company | 6.600 | 10-01-25 | 111,000 | 108,508 | |
Wyndham Hotels & Resorts, Inc. (D) | 4.375 | 08-15-28 | 101,000 | 88,912 | |
Yum! Brands, Inc. | 3.625 | 03-15-31 | 191,000 | 153,278 | |
Yum! Brands, Inc. (D) | 4.750 | 01-15-30 | 183,000 | 163,556 | |
Household durables 0.4% | |||||
Brookfield Residential Properties, Inc. (D) | 5.000 | 06-15-29 | 117,000 | 88,128 | |
Century Communities, Inc. (D) | 3.875 | 08-15-29 | 220,000 | 173,259 | |
Empire Communities Corp. (D) | 7.000 | 12-15-25 | 57,000 | 49,135 | |
KB Home | 4.000 | 06-15-31 | 178,000 | 134,835 | |
KB Home | 7.250 | 07-15-30 | 46,000 | 42,493 | |
Internet and direct marketing retail 0.5% | |||||
Amazon.com, Inc. (B) | 4.050 | 08-22-47 | 344,000 | 279,648 | |
eBay, Inc. (B) | 2.700 | 03-11-30 | 387,000 | 314,580 | |
Multiline retail 0.4% | |||||
Dollar Tree, Inc. (B) | 4.200 | 05-15-28 | 537,000 | 499,528 | |
Macy’s Retail Holdings LLC (A)(B)(D) | 5.875 | 04-01-29 | 54,000 | 46,637 | |
Macy’s Retail Holdings LLC (A)(B)(D) | 5.875 | 03-15-30 | 15,000 | 12,593 | |
Macy’s Retail Holdings LLC (A)(B)(D) | 6.125 | 03-15-32 | 27,000 | 22,433 | |
Specialty retail 0.4% | |||||
Asbury Automotive Group, Inc. (D) | 4.625 | 11-15-29 | 38,000 | 31,255 | |
Asbury Automotive Group, Inc. | 4.750 | 03-01-30 | 134,000 | 109,778 | |
AutoNation, Inc. (B) | 4.750 | 06-01-30 | 142,000 | 122,267 | |
Group 1 Automotive, Inc. (D) | 4.000 | 08-15-28 | 33,000 | 27,139 | |
Ken Garff Automotive LLC (D) | 4.875 | 09-15-28 | 128,000 | 106,268 | |
Lithia Motors, Inc. (D) | 3.875 | 06-01-29 | 80,000 | 64,456 | |
Lithia Motors, Inc. (D) | 4.375 | 01-15-31 | 80,000 | 64,954 | |
Lithia Motors, Inc. (D) | 4.625 | 12-15-27 | 40,000 | 35,596 | |
Consumer staples 2.0% | 2,700,219 | ||||
Beverages 0.1% | |||||
Anheuser-Busch InBev Worldwide, Inc. (B) | 4.600 | 04-15-48 | 223,000 | 183,837 | |
Food and staples retailing 0.2% | |||||
Advantage Sales & Marketing, Inc. (D) | 6.500 | 11-15-28 | 245,000 | 208,412 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK INCOME SECURITIES TRUST | 13 |
Rate (%) | Maturity date | Par value^ | Value | ||
Consumer staples (continued) | |||||
Food products 1.6% | |||||
Coruripe Netherlands BV (D) | 10.000 | 02-10-27 | 205,000 | $170,151 | |
JBS USA LUX SA (B)(D) | 3.625 | 01-15-32 | 207,000 | 160,425 | |
JBS USA LUX SA (B)(D) | 3.750 | 12-01-31 | 65,000 | 50,983 | |
JBS USA LUX SA (B)(D) | 5.125 | 02-01-28 | 128,000 | 118,999 | |
JBS USA LUX SA (B)(D) | 5.750 | 04-01-33 | 348,000 | 313,597 | |
Kraft Heinz Foods Company (B) | 4.375 | 06-01-46 | 534,000 | 416,567 | |
Kraft Heinz Foods Company (B) | 5.000 | 06-04-42 | 139,000 | 120,194 | |
Kraft Heinz Foods Company (B) | 5.500 | 06-01-50 | 133,000 | 121,813 | |
MARB BondCo PLC (D) | 3.950 | 01-29-31 | 264,000 | 195,542 | |
NBM US Holdings, Inc. (D) | 6.625 | 08-06-29 | 298,000 | 276,116 | |
Post Holdings, Inc. (B)(D) | 5.500 | 12-15-29 | 185,000 | 166,485 | |
Household products 0.0% | |||||
Edgewell Personal Care Company (D) | 4.125 | 04-01-29 | 87,000 | 74,303 | |
Personal products 0.1% | |||||
Oriflame Investment Holding PLC (D) | 5.125 | 05-04-26 | 205,000 | 122,795 | |
Energy 9.8% | 13,018,460 | ||||
Energy equipment and services 0.4% | |||||
CSI Compressco LP (A)(B)(D) | 7.500 | 04-01-25 | 297,000 | 264,580 | |
CSI Compressco LP (D) | 7.500 | 04-01-25 | 88,000 | 78,394 | |
CSI Compressco LP (10.000% Cash or 7.250% Cash and 3.500% PIK) (D) | 10.000 | 04-01-26 | 285,633 | 251,033 | |
Oil, gas and consumable fuels 9.4% | |||||
Aker BP ASA (A)(B)(D) | 3.000 | 01-15-25 | 204,000 | 191,163 | |
Aker BP ASA (D) | 3.100 | 07-15-31 | 298,000 | 234,136 | |
Aker BP ASA (D) | 3.750 | 01-15-30 | 169,000 | 143,735 | |
Altera Infrastructure LP (D)(E) | 8.500 | 07-15-23 | 180,000 | 10,800 | |
Antero Midstream Partners LP (D) | 5.375 | 06-15-29 | 178,000 | 162,389 | |
Antero Resources Corp. (D) | 5.375 | 03-01-30 | 69,000 | 63,779 | |
Antero Resources Corp. (D) | 7.625 | 02-01-29 | 1,014,000 | 1,034,280 | |
Ascent Resources Utica Holdings LLC (D) | 5.875 | 06-30-29 | 221,000 | 193,928 | |
Calumet Specialty Products Partners LP (A)(B)(D) | 8.125 | 01-15-27 | 400,000 | 378,578 | |
Cheniere Energy Partners LP | 4.000 | 03-01-31 | 282,000 | 237,750 | |
Cheniere Energy Partners LP | 4.500 | 10-01-29 | 403,000 | 355,829 | |
CNX Resources Corp. (D) | 7.375 | 01-15-31 | 45,000 | 44,670 | |
Continental Resources, Inc. (B) | 4.900 | 06-01-44 | 146,000 | 103,571 | |
DCP Midstream Operating LP (5.850% to 5-21-23, then 3 month LIBOR + 3.850%) (D) | 5.850 | 05-21-43 | 200,000 | 193,512 | |
Diamondback Energy, Inc. (B) | 3.125 | 03-24-31 | 208,000 | 169,972 | |
Enbridge, Inc. (5.500% to 7-15-27, then 3 month LIBOR + 3.418%) (B) | 5.500 | 07-15-77 | 340,000 | 291,754 |
14 | JOHN HANCOCK INCOME SECURITIES TRUST | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Energy (continued) | |||||
Oil, gas and consumable fuels (continued) | |||||
Enbridge, Inc. (5.750% to 4-15-30, then 5 Year CMT + 5.314%) (B) | 5.750 | 07-15-80 | 347,000 | $306,613 | |
Enbridge, Inc. (6.250% to 3-1-28, then 3 month LIBOR + 3.641%) (B) | 6.250 | 03-01-78 | 306,000 | 270,620 | |
Energean Israel Finance, Ltd. (D) | 5.375 | 03-30-28 | 79,000 | 69,299 | |
Energean Israel Finance, Ltd. (D) | 5.875 | 03-30-31 | 138,000 | 116,496 | |
Energy Transfer LP (B) | 4.200 | 04-15-27 | 172,000 | 158,149 | |
Energy Transfer LP (B) | 5.150 | 03-15-45 | 345,000 | 269,014 | |
Energy Transfer LP (B) | 5.250 | 04-15-29 | 546,000 | 511,668 | |
Energy Transfer LP (B) | 5.400 | 10-01-47 | 250,000 | 198,498 | |
Energy Transfer LP (B) | 5.500 | 06-01-27 | 263,000 | 255,934 | |
Energy Transfer LP (6.500% to 11-15-26, then 5 Year CMT + 5.694%) (F) | 6.500 | 11-15-26 | 363,000 | 312,180 | |
Enterprise Products Operating LLC (5.250% to 8-16-27, then 3 month LIBOR + 3.033%) (B) | 5.250 | 08-16-77 | 580,000 | 453,351 | |
EQM Midstream Partners LP (D) | 7.500 | 06-01-27 | 32,000 | 31,600 | |
EQM Midstream Partners LP (D) | 7.500 | 06-01-30 | 18,000 | 17,505 | |
EQT Corp. | 5.678 | 10-01-25 | 60,000 | 59,311 | |
EQT Corp. | 7.000 | 02-01-30 | 234,000 | 239,862 | |
Hess Midstream Operations LP (D) | 4.250 | 02-15-30 | 59,000 | 50,454 | |
Hess Midstream Operations LP (D) | 5.500 | 10-15-30 | 25,000 | 22,555 | |
Kinder Morgan Energy Partners LP (B) | 7.750 | 03-15-32 | 208,000 | 223,692 | |
Leviathan Bond, Ltd. (D) | 6.500 | 06-30-27 | 327,000 | 304,763 | |
Leviathan Bond, Ltd. (D) | 6.750 | 06-30-30 | 64,000 | 57,155 | |
MC Brazil Downstream Trading SARL (D) | 7.250 | 06-30-31 | 209,000 | 159,697 | |
Midwest Connector Capital Company LLC (B)(D) | 3.900 | 04-01-24 | 9,000 | 8,660 | |
MPLX LP (B) | 4.000 | 03-15-28 | 223,000 | 201,737 | |
MPLX LP (B) | 4.125 | 03-01-27 | 79,000 | 73,241 | |
MPLX LP (B) | 4.250 | 12-01-27 | 170,000 | 156,746 | |
MPLX LP (B) | 4.950 | 09-01-32 | 149,000 | 134,840 | |
MPLX LP (6.875% to 2-15-23, then 3 month LIBOR + 4.652%) (A)(B)(F) | 6.875 | 02-15-23 | 752,000 | 733,200 | |
Ovintiv, Inc. (B) | 7.200 | 11-01-31 | 41,000 | 41,856 | |
Parkland Corp. (B)(D) | 4.500 | 10-01-29 | 678,000 | 570,862 | |
Parkland Corp. (B)(D) | 4.625 | 05-01-30 | 130,000 | 108,136 | |
Petroleos Mexicanos | 8.750 | 06-02-29 | 123,000 | 109,592 | |
Sabine Pass Liquefaction LLC (B) | 4.200 | 03-15-28 | 146,000 | 133,128 | |
Sabine Pass Liquefaction LLC (B) | 4.500 | 05-15-30 | 310,000 | 282,747 | |
Sabine Pass Liquefaction LLC (B) | 5.000 | 03-15-27 | 259,000 | 249,598 | |
Sabine Pass Liquefaction LLC (B) | 5.875 | 06-30-26 | 175,000 | 174,068 | |
Southwestern Energy Company | 4.750 | 02-01-32 | 98,000 | 84,594 | |
Sunoco LP | 4.500 | 05-15-29 | 72,000 | 61,841 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK INCOME SECURITIES TRUST | 15 |
Rate (%) | Maturity date | Par value^ | Value | ||
Energy (continued) | |||||
Oil, gas and consumable fuels (continued) | |||||
Sunoco LP | 4.500 | 04-30-30 | 191,000 | $162,428 | |
Targa Resources Corp. (B) | 4.950 | 04-15-52 | 323,000 | 242,359 | |
Targa Resources Partners LP (B) | 4.000 | 01-15-32 | 267,000 | 219,097 | |
The Williams Companies, Inc. (B) | 3.750 | 06-15-27 | 253,000 | 232,524 | |
The Williams Companies, Inc. (B) | 4.650 | 08-15-32 | 213,000 | 191,650 | |
TransCanada PipeLines, Ltd. (B) | 4.250 | 05-15-28 | 205,000 | 190,096 | |
Venture Global Calcasieu Pass LLC (B)(D) | 3.875 | 08-15-29 | 72,000 | 61,740 | |
Venture Global Calcasieu Pass LLC (B)(D) | 4.125 | 08-15-31 | 119,000 | 101,451 | |
Financials 22.4% | 29,620,617 | ||||
Banks 14.1% | |||||
Banco Santander SA | 4.379 | 04-12-28 | 200,000 | 174,804 | |
Bank of America Corp. (2.087% to 6-14-28, then SOFR + 1.060%) (B) | 2.087 | 06-14-29 | 390,000 | 315,591 | |
Bank of America Corp. (2.592% to 4-29-30, then SOFR + 2.150%) (B) | 2.592 | 04-29-31 | 458,000 | 361,611 | |
Bank of America Corp. (2.687% to 4-22-31, then SOFR + 1.320%) (B) | 2.687 | 04-22-32 | 676,000 | 522,449 | |
Bank of America Corp. (B) | 3.248 | 10-21-27 | 310,000 | 276,650 | |
Bank of America Corp. (3.846% to 3-8-32, then 5 Year CMT + 2.000%) (B) | 3.846 | 03-08-37 | 328,000 | 262,791 | |
Bank of America Corp. (6.300% to 3-10-26, then 3 month LIBOR + 4.553%) (B)(F) | 6.300 | 03-10-26 | 610,000 | 594,787 | |
Barclays PLC (4.375% to 3-15-28, then 5 Year CMT + 3.410%) (A)(B)(F) | 4.375 | 03-15-28 | 296,000 | 196,458 | |
BPCE SA (B)(D) | 4.500 | 03-15-25 | 475,000 | 445,871 | |
Citigroup, Inc. (2.561% to 5-1-31, then SOFR + 1.167%) (B) | 2.561 | 05-01-32 | 201,000 | 153,156 | |
Citigroup, Inc. (B) | 3.200 | 10-21-26 | 449,000 | 408,886 | |
Citigroup, Inc. (B) | 4.600 | 03-09-26 | 605,000 | 579,857 | |
Citigroup, Inc. (4.700% to 1-30-25, then SOFR + 3.234%) (F) | 4.700 | 01-30-25 | 421,000 | 337,853 | |
Citigroup, Inc. (6.250% to 8-15-26, then 3 month LIBOR + 4.517%) (A)(B)(F) | 6.250 | 08-15-26 | 525,000 | 506,678 | |
Citizens Financial Group, Inc. (A)(B) | 3.250 | 04-30-30 | 448,000 | 367,771 | |
Credit Agricole SA (B)(D) | 3.250 | 01-14-30 | 471,000 | 360,488 | |
Credit Agricole SA (7.875% to 1-23-24, then 5 Year U.S. Swap Rate + 4.898%) (B)(D)(F) | 7.875 | 01-23-24 | 600,000 | 596,027 | |
Fifth Third Bancorp (5.100% to 6-30-23, then 3 month LIBOR + 3.033%) (F) | 5.100 | 06-30-23 | 880,000 | 801,504 | |
Freedom Mortgage Corp. (D) | 8.125 | 11-15-24 | 139,000 | 122,285 | |
HSBC Holdings PLC (6.375% to 3-30-25, then 5 Year ICE Swap Rate + 4.368%) (B)(F) | 6.375 | 03-30-25 | 200,000 | 178,000 | |
JPMorgan Chase & Co. (2.522% to 4-22-30, then SOFR + 2.040%) (B) | 2.522 | 04-22-31 | 1,007,000 | 794,142 |
16 | JOHN HANCOCK INCOME SECURITIES TRUST | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Financials (continued) | |||||
Banks (continued) | |||||
JPMorgan Chase & Co. (2.956% to 5-13-30, then SOFR + 2.515%) (B) | 2.956 | 05-13-31 | 444,000 | $349,310 | |
JPMorgan Chase & Co. (3.960% to 1-29-26, then 3 month LIBOR + 1.245%) (B) | 3.960 | 01-29-27 | 422,000 | 395,192 | |
JPMorgan Chase & Co. (4.600% to 2-1-25, then SOFR + 3.125%) (B)(F) | 4.600 | 02-01-25 | 379,000 | 338,220 | |
JPMorgan Chase & Co. (6.750% to 2-1-24, then 3 month LIBOR + 3.780%) (B)(F) | 6.750 | 02-01-24 | 1,170,000 | 1,170,000 | |
Lloyds Banking Group PLC (B) | 4.450 | 05-08-25 | 1,245,000 | 1,193,273 | |
Lloyds Banking Group PLC (7.500% to 6-27-24, then 5 Year U.S. Swap Rate + 4.760%) (F) | 7.500 | 06-27-24 | 385,000 | 367,087 | |
M&T Bank Corp. (5.125% to 11-1-26, then 3 month LIBOR + 3.520%) (F) | 5.125 | 11-01-26 | 141,000 | 122,907 | |
NatWest Group PLC (6.000% to 12-29-25, then 5 Year CMT + 5.625%) (F) | 6.000 | 12-29-25 | 393,000 | 349,731 | |
NatWest Markets PLC (A)(B)(D) | 1.600 | 09-29-26 | 409,000 | 344,034 | |
Santander Holdings USA, Inc. (2.490% to 1-6-27, then SOFR + 1.249%) (B) | 2.490 | 01-06-28 | 254,000 | 210,263 | |
Santander Holdings USA, Inc. (B) | 3.244 | 10-05-26 | 600,000 | 531,441 | |
Santander Holdings USA, Inc. (B) | 3.450 | 06-02-25 | 585,000 | 546,224 | |
Santander Holdings USA, Inc. (B) | 4.400 | 07-13-27 | 155,000 | 140,073 | |
Societe Generale SA (5.375% to 11-18-30, then 5 Year CMT + 4.514%) (D)(F) | 5.375 | 11-18-30 | 269,000 | 194,851 | |
The PNC Financial Services Group, Inc. (3.400% to 9-15-26, then 5 Year CMT + 2.595%) (B)(F) | 3.400 | 09-15-26 | 438,000 | 326,858 | |
The PNC Financial Services Group, Inc. (4.850% to 6-1-23, then 3 month LIBOR + 3.040%) (B)(F) | 4.850 | 06-01-23 | 224,000 | 205,565 | |
The PNC Financial Services Group, Inc. (3 month LIBOR + 3.678%) (B)(F)(G) | 6.460 | 02-01-23 | 855,000 | 852,845 | |
Wells Fargo & Company (2.393% to 6-2-27, then SOFR + 2.100%) (B) | 2.393 | 06-02-28 | 701,000 | 598,787 | |
Wells Fargo & Company (2.879% to 10-30-29, then 3 month CME Term SOFR + 1.432%) (B) | 2.879 | 10-30-30 | 500,000 | 410,232 | |
Wells Fargo & Company (3.068% to 4-30-40, then SOFR + 2.530%) | 3.068 | 04-30-41 | 363,000 | 245,953 | |
Wells Fargo & Company (3.350% to 3-2-32, then SOFR + 1.500%) (B) | 3.350 | 03-02-33 | 237,000 | 191,057 | |
Wells Fargo & Company (5.875% to 6-15-25, then 3 month LIBOR + 3.990%) (A)(B)(F) | 5.875 | 06-15-25 | 1,220,000 | 1,171,200 | |
Capital markets 5.0% | |||||
Ares Capital Corp. (B) | 2.150 | 07-15-26 | 311,000 | 257,474 | |
Ares Capital Corp. (B) | 2.875 | 06-15-28 | 237,000 | 185,077 | |
Ares Capital Corp. (B) | 3.875 | 01-15-26 | 237,000 | 212,480 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK INCOME SECURITIES TRUST | 17 |
Rate (%) | Maturity date | Par value^ | Value | ||
Financials (continued) | |||||
Capital markets (continued) | |||||
Ares Capital Corp. (B) | 4.200 | 06-10-24 | 213,000 | $204,912 | |
Blackstone Private Credit Fund (B) | 2.350 | 11-22-24 | 267,000 | 244,251 | |
Blackstone Private Credit Fund (B) | 2.700 | 01-15-25 | 207,000 | 189,105 | |
Blackstone Private Credit Fund (B) | 3.250 | 03-15-27 | 60,000 | 49,779 | |
Blackstone Private Credit Fund (B) | 4.000 | 01-15-29 | 291,000 | 236,887 | |
Deutsche Bank AG (2.311% to 11-16-26, then SOFR + 1.219%) (B) | 2.311 | 11-16-27 | 247,000 | 197,156 | |
Deutsche Bank AG (3.742% to 10-7-31, then SOFR + 2.257%) | 3.742 | 01-07-33 | 321,000 | 218,531 | |
Lazard Group LLC (B) | 4.375 | 03-11-29 | 230,000 | 205,837 | |
Macquarie Bank, Ltd. (B)(D) | 3.624 | 06-03-30 | 246,000 | 194,309 | |
Macquarie Bank, Ltd. (B)(D) | 4.875 | 06-10-25 | 217,000 | 208,335 | |
Morgan Stanley (2.188% to 4-28-25, then SOFR + 1.990%) (B) | 2.188 | 04-28-26 | 803,000 | 732,843 | |
Morgan Stanley (2.239% to 7-21-31, then SOFR + 1.178%) (B) | 2.239 | 07-21-32 | 161,000 | 118,681 | |
Morgan Stanley (2.484% to 9-16-31, then SOFR + 1.360%) (B) | 2.484 | 09-16-36 | 501,000 | 354,699 | |
Morgan Stanley (B) | 3.875 | 01-27-26 | 218,000 | 206,263 | |
MSCI, Inc. (D) | 3.250 | 08-15-33 | 216,000 | 166,978 | |
The Goldman Sachs Group, Inc. (2.615% to 4-22-31, then SOFR + 1.281%) (B) | 2.615 | 04-22-32 | 838,000 | 639,195 | |
The Goldman Sachs Group, Inc. (2.650% to 10-21-31, then SOFR + 1.264%) (B) | 2.650 | 10-21-32 | 323,000 | 244,535 | |
The Goldman Sachs Group, Inc. (B) | 3.850 | 01-26-27 | 1,335,000 | 1,237,301 | |
UBS Group AG (7.000% to 1-31-24, then 5 Year U.S. Swap Rate + 4.344%) (D)(F) | 7.000 | 01-31-24 | 295,000 | 285,328 | |
Consumer finance 0.8% | |||||
Discover Financial Services (B) | 4.100 | 02-09-27 | 884,000 | 801,089 | |
Enova International, Inc. (D) | 8.500 | 09-15-25 | 260,000 | 233,247 | |
Insurance 2.3% | |||||
Athene Holding, Ltd. (B) | 3.500 | 01-15-31 | 162,000 | 127,023 | |
CNA Financial Corp. (B) | 2.050 | 08-15-30 | 157,000 | 118,923 | |
CNO Financial Group, Inc. (B) | 5.250 | 05-30-25 | 512,000 | 502,433 | |
CNO Financial Group, Inc. (B) | 5.250 | 05-30-29 | 384,000 | 350,974 | |
Liberty Mutual Group, Inc. (4.125% to 9-15-26, then 5 Year CMT + 3.315%) (A)(B)(D) | 4.125 | 12-15-51 | 220,000 | 165,000 | |
Liberty Mutual Group, Inc. (B)(D) | 5.500 | 06-15-52 | 49,000 | 40,300 | |
MetLife, Inc. (6.400% to 12-15-36, then 3 month LIBOR + 2.205%) (B) | 6.400 | 12-15-36 | 355,000 | 327,601 | |
New York Life Insurance Company (B)(D) | 3.750 | 05-15-50 | 199,000 | 140,458 | |
Nippon Life Insurance Company (2.750% to 1-21-31, then 5 Year CMT + 2.653%) (D) | 2.750 | 01-21-51 | 397,000 | 294,250 |
18 | JOHN HANCOCK INCOME SECURITIES TRUST | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Financials (continued) | |||||
Insurance (continued) | |||||
Nippon Life Insurance Company (5.100% to 10-16-24, then 5 Year U.S. Swap Rate + 3.650%) (D) | 5.100 | 10-16-44 | 365,000 | $349,495 | |
Prudential Financial, Inc. (5.125% to 11-28-31, then 5 Year CMT + 3.162%) (B) | 5.125 | 03-01-52 | 162,000 | 138,133 | |
SBL Holdings, Inc. (B)(D) | 5.000 | 02-18-31 | 275,000 | 206,168 | |
Teachers Insurance & Annuity Association of America (B)(D) | 4.270 | 05-15-47 | 430,000 | 335,130 | |
Thrifts and mortgage finance 0.2% | |||||
Nationstar Mortgage Holdings, Inc. (D) | 5.125 | 12-15-30 | 136,000 | 101,692 | |
Nationstar Mortgage Holdings, Inc. (D) | 5.500 | 08-15-28 | 147,000 | 119,233 | |
Nationstar Mortgage Holdings, Inc. (D) | 6.000 | 01-15-27 | 75,000 | 66,750 | |
Health care 3.3% | 4,327,004 | ||||
Biotechnology 0.4% | |||||
AbbVie, Inc. (B) | 3.200 | 11-21-29 | 639,000 | 558,524 | |
Health care equipment and supplies 0.1% | |||||
Varex Imaging Corp. (B)(D) | 7.875 | 10-15-27 | 104,000 | 101,500 | |
Health care providers and services 2.2% | |||||
AmerisourceBergen Corp. (B) | 2.800 | 05-15-30 | 255,000 | 208,662 | |
Centene Corp. | 3.375 | 02-15-30 | 138,000 | 114,650 | |
Centene Corp. | 4.250 | 12-15-27 | 92,000 | 84,870 | |
CVS Health Corp. (B) | 3.750 | 04-01-30 | 222,000 | 196,031 | |
CVS Health Corp. (B) | 4.300 | 03-25-28 | 149,000 | 139,810 | |
CVS Health Corp. (B) | 5.050 | 03-25-48 | 260,000 | 220,855 | |
DaVita, Inc. (D) | 3.750 | 02-15-31 | 287,000 | 207,510 | |
DaVita, Inc. (D) | 4.625 | 06-01-30 | 274,000 | 213,617 | |
Encompass Health Corp. | 4.500 | 02-01-28 | 130,000 | 116,337 | |
Encompass Health Corp. | 4.625 | 04-01-31 | 77,000 | 63,525 | |
Fresenius Medical Care US Finance III, Inc. (B)(D) | 2.375 | 02-16-31 | 430,000 | 299,615 | |
HCA, Inc. | 4.125 | 06-15-29 | 382,000 | 337,080 | |
HCA, Inc. | 5.250 | 06-15-26 | 320,000 | 310,121 | |
Universal Health Services, Inc. (B)(D) | 1.650 | 09-01-26 | 254,000 | 212,857 | |
Universal Health Services, Inc. (B)(D) | 2.650 | 10-15-30 | 275,000 | 205,729 | |
Pharmaceuticals 0.6% | |||||
Organon & Company (B)(D) | 5.125 | 04-30-31 | 249,000 | 211,468 | |
Royalty Pharma PLC (B) | 1.750 | 09-02-27 | 157,000 | 129,400 | |
Viatris, Inc. (B) | 2.300 | 06-22-27 | 99,000 | 80,971 | |
Viatris, Inc. (B) | 2.700 | 06-22-30 | 222,000 | 166,046 | |
Viatris, Inc. | 4.000 | 06-22-50 | 255,000 | 147,826 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK INCOME SECURITIES TRUST | 19 |
Rate (%) | Maturity date | Par value^ | Value | ||
Industrials 11.1% | $14,636,345 | ||||
Aerospace and defense 1.2% | |||||
DAE Funding LLC (D) | 2.625 | 03-20-25 | 207,000 | 187,811 | |
Huntington Ingalls Industries, Inc. (B) | 4.200 | 05-01-30 | 190,000 | 167,962 | |
The Boeing Company (B) | 3.200 | 03-01-29 | 164,000 | 136,637 | |
The Boeing Company (B) | 5.040 | 05-01-27 | 463,000 | 446,261 | |
The Boeing Company (B) | 5.150 | 05-01-30 | 651,000 | 601,514 | |
Airlines 4.7% | |||||
Air Canada 2013-1 Class A Pass Through Trust (D) | 4.125 | 05-15-25 | 163,514 | 145,594 | |
Air Canada 2017-1 Class B Pass Through Trust (B)(D) | 3.700 | 01-15-26 | 194,709 | 170,968 | |
Alaska Airlines 2020-1 Class B Pass Through Trust (B)(D) | 8.000 | 08-15-25 | 76,253 | 73,979 | |
American Airlines 2015-1 Class A Pass Through Trust | 3.375 | 05-01-27 | 672,552 | 547,382 | |
American Airlines 2015-1 Class B Pass Through Trust | 3.700 | 05-01-23 | 148,409 | 144,116 | |
American Airlines 2016-1 Class A Pass Through Trust | 4.100 | 01-15-28 | 295,031 | 227,347 | |
American Airlines 2017-1 Class A Pass Through Trust (B) | 4.000 | 02-15-29 | 143,081 | 109,497 | |
American Airlines 2017-1 Class AA Pass Through Trust (B) | 3.650 | 02-15-29 | 220,125 | 190,007 | |
American Airlines 2017-2 Class A Pass Through Trust (B) | 3.600 | 10-15-29 | 180,791 | 137,003 | |
American Airlines 2019-1 Class A Pass Through Trust | 3.500 | 02-15-32 | 276,617 | 201,078 | |
American Airlines 2019-1 Class AA Pass Through Trust (B) | 3.150 | 02-15-32 | 223,887 | 182,592 | |
American Airlines 2021-1 Class A Pass Through Trust (B) | 2.875 | 07-11-34 | 152,000 | 118,293 | |
American Airlines 2021-1 Class B Pass Through Trust | 3.950 | 07-11-30 | 113,000 | 88,351 | |
British Airways 2013-1 Class A Pass Through Trust (B)(D) | 4.625 | 06-20-24 | 250,727 | 242,693 | |
British Airways 2018-1 Class A Pass Through Trust (B)(D) | 4.125 | 09-20-31 | 109,143 | 89,757 | |
British Airways 2020-1 Class A Pass Through Trust (B)(D) | 4.250 | 11-15-32 | 94,536 | 84,748 | |
British Airways 2020-1 Class B Pass Through Trust (B)(D) | 8.375 | 11-15-28 | 70,025 | 68,121 | |
Delta Air Lines, Inc. (A)(B) | 2.900 | 10-28-24 | 434,000 | 410,130 | |
Delta Air Lines, Inc. (A)(B) | 4.375 | 04-19-28 | 355,000 | 316,656 | |
Delta Air Lines, Inc. (B)(D) | 4.500 | 10-20-25 | 79,000 | 76,981 | |
Delta Air Lines, Inc. (B)(D) | 4.750 | 10-20-28 | 231,848 | 215,685 | |
JetBlue 2019-1 Class AA Pass Through Trust (B) | 2.750 | 05-15-32 | 241,262 | 191,598 |
20 | JOHN HANCOCK INCOME SECURITIES TRUST | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Industrials (continued) | |||||
Airlines (continued) | |||||
United Airlines 2014-2 Class A Pass Through Trust (B) | 3.750 | 09-03-26 | 322,813 | $287,207 | |
United Airlines 2016-1 Class A Pass Through Trust (B) | 3.450 | 07-07-28 | 302,567 | 237,723 | |
United Airlines 2016-1 Class B Pass Through Trust | 3.650 | 01-07-26 | 283,938 | 247,232 | |
United Airlines 2018-1 Class B Pass Through Trust | 4.600 | 03-01-26 | 77,197 | 68,902 | |
United Airlines 2019-1 Class A Pass Through Trust (B) | 4.550 | 08-25-31 | 201,269 | 162,493 | |
United Airlines 2020-1 Class A Pass Through Trust (B) | 5.875 | 10-15-27 | 564,334 | 543,397 | |
United Airlines 2020-1 Class B Pass Through Trust (B) | 4.875 | 01-15-26 | 129,540 | 120,472 | |
United Airlines, Inc. (D) | 4.375 | 04-15-26 | 23,000 | 20,991 | |
United Airlines, Inc. (D) | 4.625 | 04-15-29 | 53,000 | 45,330 | |
US Airways 2010-1 Class A Pass Through Trust (B) | 6.250 | 04-22-23 | 136,512 | 135,188 | |
US Airways 2011-1 Class A Pass Through Trust (B) | 7.125 | 10-22-23 | 120,864 | 121,523 | |
US Airways 2012-1 Class A Pass Through Trust (B) | 5.900 | 10-01-24 | 130,655 | 125,466 | |
US Airways 2012-2 Class A Pass Through Trust (B) | 4.625 | 06-03-25 | 122,190 | 109,063 | |
Building products 0.7% | |||||
Builders FirstSource, Inc. (D) | 4.250 | 02-01-32 | 216,000 | 172,843 | |
Builders FirstSource, Inc. (D) | 5.000 | 03-01-30 | 34,000 | 29,200 | |
Builders FirstSource, Inc. (D) | 6.375 | 06-15-32 | 135,000 | 124,160 | |
Owens Corning (B) | 3.950 | 08-15-29 | 659,000 | 578,266 | |
Commercial services and supplies 0.7% | |||||
APX Group, Inc. (A)(B)(D) | 5.750 | 07-15-29 | 201,000 | 158,257 | |
Cimpress PLC (D) | 7.000 | 06-15-26 | 356,000 | 212,710 | |
Garda World Security Corp. (D) | 6.000 | 06-01-29 | 76,000 | 59,228 | |
GFL Environmental, Inc. (D) | 4.375 | 08-15-29 | 95,000 | 80,462 | |
Graphic Packaging International LLC (D) | 3.500 | 03-01-29 | 204,000 | 172,300 | |
Prime Security Services Borrower LLC (B)(D) | 3.375 | 08-31-27 | 47,000 | 40,678 | |
Prime Security Services Borrower LLC (B)(D) | 6.250 | 01-15-28 | 163,000 | 149,795 | |
Construction and engineering 0.3% | |||||
Global Infrastructure Solutions, Inc. (D) | 5.625 | 06-01-29 | 189,000 | 139,755 | |
MasTec, Inc. (B)(D) | 4.500 | 08-15-28 | 147,000 | 130,474 | |
Tutor Perini Corp. (D) | 6.875 | 05-01-25 | 213,000 | 169,493 | |
Machinery 0.2% | |||||
Flowserve Corp. (B) | 3.500 | 10-01-30 | 184,000 | 146,494 | |
Hillenbrand, Inc. | 3.750 | 03-01-31 | 85,000 | 68,000 | |
JB Poindexter & Company, Inc. (D) | 7.125 | 04-15-26 | 99,000 | 94,370 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK INCOME SECURITIES TRUST | 21 |
Rate (%) | Maturity date | Par value^ | Value | ||
Industrials (continued) | |||||
Professional services 0.3% | |||||
CoStar Group, Inc. (D) | 2.800 | 07-15-30 | 412,000 | $324,772 | |
Road and rail 0.6% | |||||
Uber Technologies, Inc. (D) | 4.500 | 08-15-29 | 312,000 | 267,446 | |
Uber Technologies, Inc. (D) | 7.500 | 05-15-25 | 228,000 | 228,114 | |
Uber Technologies, Inc. (D) | 7.500 | 09-15-27 | 292,000 | 291,933 | |
Trading companies and distributors 2.3% | |||||
AerCap Ireland Capital DAC | 1.650 | 10-29-24 | 100,000 | 90,764 | |
AerCap Ireland Capital DAC | 1.750 | 01-30-26 | 289,000 | 246,094 | |
AerCap Ireland Capital DAC | 2.450 | 10-29-26 | 795,000 | 671,334 | |
AerCap Ireland Capital DAC | 2.875 | 08-14-24 | 389,000 | 364,492 | |
Air Lease Corp. (B) | 2.100 | 09-01-28 | 158,000 | 121,777 | |
Air Lease Corp. (B) | 2.875 | 01-15-26 | 171,000 | 152,009 | |
Air Lease Corp. (B) | 3.625 | 12-01-27 | 164,000 | 140,762 | |
Ashtead Capital, Inc. (B)(D) | 2.450 | 08-12-31 | 200,000 | 143,448 | |
Beacon Roofing Supply, Inc. (D) | 4.125 | 05-15-29 | 149,000 | 123,295 | |
H&E Equipment Services, Inc. (D) | 3.875 | 12-15-28 | 252,000 | 212,932 | |
United Rentals North America, Inc. (B) | 3.875 | 11-15-27 | 556,000 | 505,654 | |
United Rentals North America, Inc. (B) | 4.875 | 01-15-28 | 295,000 | 274,350 | |
Transportation infrastructure 0.1% | |||||
Adani Ports & Special Economic Zone, Ltd. (D) | 3.100 | 02-02-31 | 238,000 | 152,936 | |
Information technology 7.8% | 10,269,004 | ||||
Communications equipment 0.5% | |||||
Motorola Solutions, Inc. (B) | 2.300 | 11-15-30 | 407,000 | 304,515 | |
Motorola Solutions, Inc. (B) | 2.750 | 05-24-31 | 326,000 | 249,306 | |
Motorola Solutions, Inc. (B) | 4.600 | 05-23-29 | 114,000 | 104,800 | |
IT services 1.4% | |||||
Block, Inc. (A)(B) | 3.500 | 06-01-31 | 96,000 | 77,280 | |
CGI, Inc. (B) | 1.450 | 09-14-26 | 287,000 | 246,408 | |
Gartner, Inc. (D) | 3.625 | 06-15-29 | 89,000 | 75,650 | |
Gartner, Inc. (A)(B)(D) | 4.500 | 07-01-28 | 285,000 | 264,118 | |
Sabre GLBL, Inc. (D) | 7.375 | 09-01-25 | 641,000 | 601,694 | |
VeriSign, Inc. (B) | 2.700 | 06-15-31 | 155,000 | 120,214 | |
VeriSign, Inc. (B) | 5.250 | 04-01-25 | 510,000 | 505,124 | |
Semiconductors and semiconductor equipment 3.5% | |||||
Broadcom, Inc. (B)(D) | 3.419 | 04-15-33 | 394,000 | 299,383 | |
Broadcom, Inc. (B) | 4.750 | 04-15-29 | 946,000 | 878,891 | |
Broadcom, Inc. (B)(D) | 4.926 | 05-15-37 | 174,000 | 143,465 | |
KLA Corp. (B) | 4.100 | 03-15-29 | 173,000 | 162,249 | |
Marvell Technology, Inc. (B) | 2.450 | 04-15-28 | 414,000 | 338,570 | |
Micron Technology, Inc. (B) | 4.185 | 02-15-27 | 762,000 | 706,893 | |
Micron Technology, Inc. (B) | 4.975 | 02-06-26 | 675,000 | 656,210 |
22 | JOHN HANCOCK INCOME SECURITIES TRUST | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Information technology (continued) | |||||
Semiconductors and semiconductor equipment (continued) | |||||
Micron Technology, Inc. (B) | 5.327 | 02-06-29 | 697,000 | $646,161 | |
NXP BV | 3.250 | 05-11-41 | 135,000 | 87,677 | |
NXP BV | 3.875 | 06-18-26 | 372,000 | 346,039 | |
Qorvo, Inc. (D) | 3.375 | 04-01-31 | 187,000 | 140,718 | |
Renesas Electronics Corp. (D) | 1.543 | 11-26-24 | 213,000 | 193,402 | |
Software 1.2% | |||||
Autodesk, Inc. (B) | 2.850 | 01-15-30 | 653,000 | 546,042 | |
Consensus Cloud Solutions, Inc. (D) | 6.500 | 10-15-28 | 194,000 | 171,240 | |
Infor, Inc. (B)(D) | 1.750 | 07-15-25 | 113,000 | 101,603 | |
Oracle Corp. (B) | 2.950 | 04-01-30 | 666,000 | 542,324 | |
Workday, Inc. (B) | 3.500 | 04-01-27 | 154,000 | 142,051 | |
Technology hardware, storage and peripherals 1.2% | |||||
Atento Luxco 1 SA (D) | 8.000 | 02-10-26 | 106,000 | 41,342 | |
CDW LLC | 3.250 | 02-15-29 | 115,000 | 94,014 | |
CDW LLC | 3.569 | 12-01-31 | 298,000 | 234,062 | |
Dell International LLC (D) | 3.450 | 12-15-51 | 275,000 | 155,606 | |
Dell International LLC (B) | 4.900 | 10-01-26 | 480,000 | 460,719 | |
Dell International LLC (B) | 5.300 | 10-01-29 | 221,000 | 206,897 | |
Dell International LLC (B) | 5.850 | 07-15-25 | 148,000 | 148,097 | |
Western Digital Corp. | 4.750 | 02-15-26 | 299,000 | 276,240 | |
Materials 3.3% | 4,313,084 | ||||
Chemicals 0.8% | |||||
Braskem Netherlands Finance BV (A)(B)(D) | 5.875 | 01-31-50 | 269,000 | 195,477 | |
FS Luxembourg Sarl (D) | 10.000 | 12-15-25 | 264,000 | 269,280 | |
Sasol Financing USA LLC (A)(B) | 5.500 | 03-18-31 | 286,000 | 214,206 | |
Trinseo Materials Operating SCA (D) | 5.125 | 04-01-29 | 138,000 | 78,315 | |
Valvoline, Inc. (D) | 3.625 | 06-15-31 | 229,000 | 180,681 | |
WR Grace Holdings LLC (D) | 4.875 | 06-15-27 | 84,000 | 73,500 | |
Construction materials 0.5% | |||||
Cemex SAB de CV (D) | 3.875 | 07-11-31 | 255,000 | 194,097 | |
Cemex SAB de CV (D) | 5.200 | 09-17-30 | 256,000 | 217,740 | |
Standard Industries, Inc. (D) | 3.375 | 01-15-31 | 109,000 | 81,554 | |
Standard Industries, Inc. (D) | 4.375 | 07-15-30 | 122,000 | 98,643 | |
Standard Industries, Inc. (D) | 5.000 | 02-15-27 | 54,000 | 48,870 | |
Containers and packaging 0.4% | |||||
Owens-Brockway Glass Container, Inc. (A)(B)(D) | 6.625 | 05-13-27 | 97,000 | 92,633 | |
Pactiv Evergreen Group Issuer, Inc. (B)(D) | 4.000 | 10-15-27 | 275,000 | 243,375 | |
Pactiv Evergreen Group Issuer, Inc. (B)(D) | 4.375 | 10-15-28 | 133,000 | 116,375 | |
Trident TPI Holdings, Inc. (D) | 6.625 | 11-01-25 | 85,000 | 73,193 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK INCOME SECURITIES TRUST | 23 |
Rate (%) | Maturity date | Par value^ | Value | ||
Materials (continued) | |||||
Metals and mining 1.6% | |||||
Anglo American Capital PLC (D) | 4.750 | 04-10-27 | 200,000 | $187,416 | |
Arconic Corp. (D) | 6.125 | 02-15-28 | 134,000 | 125,609 | |
Commercial Metals Company | 3.875 | 02-15-31 | 110,000 | 89,100 | |
First Quantum Minerals, Ltd. (D) | 6.875 | 10-15-27 | 506,000 | 470,493 | |
Freeport-McMoRan, Inc. | 4.250 | 03-01-30 | 278,000 | 243,333 | |
Freeport-McMoRan, Inc. | 4.625 | 08-01-30 | 226,000 | 199,800 | |
Freeport-McMoRan, Inc. | 5.450 | 03-15-43 | 323,000 | 265,345 | |
Hudbay Minerals, Inc. (D) | 4.500 | 04-01-26 | 52,000 | 45,618 | |
JW Aluminum Continuous Cast Company (D) | 10.250 | 06-01-26 | 100,000 | 102,250 | |
Newmont Corp. (B) | 2.800 | 10-01-29 | 117,000 | 96,631 | |
Novelis Corp. (B)(D) | 4.750 | 01-30-30 | 313,000 | 265,908 | |
Volcan Cia Minera SAA (D) | 4.375 | 02-11-26 | 52,000 | 43,642 | |
Real estate 3.2% | 4,182,921 | ||||
Equity real estate investment trusts 3.2% | |||||
American Homes 4 Rent LP (B) | 4.250 | 02-15-28 | 154,000 | 140,396 | |
American Tower Corp. | 1.600 | 04-15-26 | 181,000 | 156,277 | |
American Tower Corp. (B) | 3.550 | 07-15-27 | 211,000 | 188,556 | |
American Tower Corp. (B) | 3.800 | 08-15-29 | 501,000 | 437,002 | |
Crown Castle, Inc. (B) | 3.800 | 02-15-28 | 175,000 | 157,752 | |
Equinix, Inc. (B) | 1.550 | 03-15-28 | 263,000 | 209,755 | |
Equinix, Inc. (B) | 1.800 | 07-15-27 | 201,000 | 167,259 | |
Equinix, Inc. (B) | 2.500 | 05-15-31 | 450,000 | 342,668 | |
Equinix, Inc. (B) | 3.200 | 11-18-29 | 158,000 | 132,338 | |
GLP Capital LP | 3.250 | 01-15-32 | 119,000 | 88,704 | |
GLP Capital LP | 4.000 | 01-15-30 | 121,000 | 99,785 | |
GLP Capital LP | 5.375 | 04-15-26 | 194,000 | 185,185 | |
Host Hotels & Resorts LP (B) | 3.375 | 12-15-29 | 311,000 | 247,663 | |
Host Hotels & Resorts LP (B) | 3.500 | 09-15-30 | 182,000 | 142,742 | |
Host Hotels & Resorts LP (B) | 4.500 | 02-01-26 | 164,000 | 153,091 | |
Iron Mountain Information Management Services, Inc. (D) | 5.000 | 07-15-32 | 54,000 | 44,534 | |
Iron Mountain, Inc. (D) | 4.875 | 09-15-29 | 113,000 | 97,152 | |
Iron Mountain, Inc. (D) | 5.250 | 07-15-30 | 130,000 | 112,166 | |
RHP Hotel Properties LP (B)(D) | 4.500 | 02-15-29 | 206,000 | 180,765 | |
VICI Properties LP (B)(D) | 3.875 | 02-15-29 | 561,000 | 472,384 | |
VICI Properties LP (B)(D) | 4.125 | 08-15-30 | 155,000 | 128,037 | |
VICI Properties LP (B)(D) | 4.625 | 12-01-29 | 199,000 | 173,038 | |
VICI Properties LP (B) | 5.125 | 05-15-32 | 62,000 | 54,931 | |
XHR LP (D) | 4.875 | 06-01-29 | 82,000 | 70,741 | |
Utilities 2.4% | 3,208,300 | ||||
Electric utilities 2.0% | |||||
Atlantica Transmision Sur SA (D) | 6.875 | 04-30-43 | 235,250 | 216,018 |
24 | JOHN HANCOCK INCOME SECURITIES TRUST | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Utilities (continued) | |||||
Electric utilities (continued) | |||||
Emera US Finance LP (B) | 3.550 | 06-15-26 | 130,000 | $119,939 | |
FirstEnergy Corp. | 2.650 | 03-01-30 | 690,000 | 557,810 | |
Instituto Costarricense de Electricidad (D) | 6.375 | 05-15-43 | 215,000 | 145,125 | |
NRG Energy, Inc. (B)(D) | 2.450 | 12-02-27 | 283,000 | 232,548 | |
NRG Energy, Inc. (B)(D) | 3.375 | 02-15-29 | 47,000 | 39,150 | |
NRG Energy, Inc. (B)(D) | 3.625 | 02-15-31 | 132,000 | 105,042 | |
NRG Energy, Inc. (B)(D) | 3.875 | 02-15-32 | 281,000 | 221,554 | |
NRG Energy, Inc. (B)(D) | 4.450 | 06-15-29 | 194,000 | 171,406 | |
Vistra Operations Company LLC (B)(D) | 3.700 | 01-30-27 | 486,000 | 434,507 | |
Vistra Operations Company LLC (B)(D) | 4.300 | 07-15-29 | 441,000 | 384,724 | |
Independent power and renewable electricity producers 0.2% | |||||
AES Panama Generation Holdings SRL (D) | 4.375 | 05-31-30 | 233,000 | 183,375 | |
NextEra Energy Operating Partners LP (D) | 4.500 | 09-15-27 | 110,000 | 102,300 | |
Multi-utilities 0.2% | |||||
Dominion Energy, Inc. (B) | 3.375 | 04-01-30 | 169,000 | 145,057 | |
NiSource, Inc. (B) | 3.600 | 05-01-30 | 174,000 | 149,745 | |
Municipal bonds 0.4% (0.2% of Total investments) | $531,303 | ||||
(Cost $694,492) | |||||
Golden State Tobacco Securitization Corp. (California) | 4.214 | 06-01-50 | 176,000 | 117,165 | |
New Jersey Transportation Trust Fund Authority | 4.081 | 06-15-39 | 296,000 | 233,563 | |
New Jersey Transportation Trust Fund Authority | 4.131 | 06-15-42 | 30,000 | 22,797 | |
State Board of Administration Finance Corp. (Florida) | 1.705 | 07-01-27 | 187,000 | 157,778 | |
Term loans (H) 1.0% (0.6% of Total investments) | $1,343,580 | ||||
(Cost $1,592,499) | |||||
Communication services 0.1% | 64,610 | ||||
Media 0.1% | |||||
AP Core Holdings II LLC, High-Yield Term Loan B2 (1 month LIBOR + 5.500%) | 9.254 | 09-01-27 | 71,000 | 64,610 | |
Consumer discretionary 0.6% | 753,658 | ||||
Household durables 0.2% | |||||
Hunter Douglas, Inc., USD Term Loan B1 (3 month SOFR + 3.500%) | 6.340 | 02-26-29 | 230,423 | 190,626 | |
Specialty retail 0.4% | |||||
Specialty Building Products Holdings LLC, 2021 Term Loan B (1 month LIBOR + 3.250%) | 6.822 | 10-15-28 | 650,430 | 563,032 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK INCOME SECURITIES TRUST | 25 |
Rate (%) | Maturity date | Par value^ | Value | ||
Health care 0.0% | $44,273 | ||||
Health care providers and services 0.0% | |||||
TTF Holdings LLC, Term Loan (1 month LIBOR + 4.000%) | 7.813 | 03-31-28 | 45,292 | 44,273 | |
Industrials 0.2% | 261,127 | ||||
Professional services 0.2% | |||||
CoreLogic, Inc., Term Loan (1 month LIBOR + 3.500%) | 7.313 | 06-02-28 | 355,410 | 261,127 | |
Information technology 0.0% | 60,169 | ||||
Software 0.0% | |||||
Quest Software, Inc., 2022 Term Loan (3 month SOFR + 4.250%) | 8.494 | 02-01-29 | 81,560 | 60,169 | |
Materials 0.1% | 159,743 | ||||
Containers and packaging 0.1% | |||||
Clydesdale Acquisition Holdings, Inc., Term Loan B (1 month SOFR + 4.175%) | 8.004 | 04-13-29 | 44,888 | 43,173 | |
Mauser Packaging Solutions Holding Company, 2017 Term Loan B (1 month LIBOR + 3.250%) | 6.378 | 04-03-24 | 122,705 | 116,570 | |
Collateralized mortgage obligations 13.6% (8.1% of Total investments) | $17,957,901 | ||||
(Cost $22,794,247) | |||||
Commercial and residential 10.2% | 13,469,260 | ||||
Angel Oak Mortgage Trust LLC | |||||
Series 2020-R1, Class A1 (D)(I) | 0.990 | 04-25-53 | 121,939 | 113,659 | |
Series 2021-2, Class A1 (D)(I) | 0.985 | 04-25-66 | 93,868 | 72,280 | |
Series 2021-4, Class A1 (D)(I) | 1.035 | 01-20-65 | 200,863 | 151,034 | |
Series 2021-5, Class A1 (D)(I) | 0.951 | 07-25-66 | 255,519 | 192,136 | |
Arroyo Mortgage Trust | |||||
Series 2021-1R, Class A1 (D)(I) | 1.175 | 10-25-48 | 164,939 | 139,704 | |
BAMLL Commercial Mortgage Securities Trust | |||||
Series 2019-BPR, Class ENM (D)(I) | 3.719 | 11-05-32 | 175,000 | 127,074 | |
Barclays Commercial Mortgage Trust | |||||
Series 2019-C5, Class A2 | 3.043 | 11-15-52 | 241,000 | 228,686 | |
BBCMS Mortgage Trust | |||||
Series 2020-C6, Class A2 | 2.690 | 02-15-53 | 155,000 | 144,798 | |
BBCMS Trust | |||||
Series 2015-MSQ, Class D (D)(I) | 3.990 | 09-15-32 | 480,000 | 478,728 | |
Series 2015-SRCH, Class D (D)(I) | 4.957 | 08-10-35 | 295,000 | 243,829 | |
Benchmark Mortgage Trust | |||||
Series 2019-B12, Class A2 | 3.001 | 08-15-52 | 128,445 | 122,111 | |
BOCA Commercial Mortgage Trust | |||||
Series 2022-BOCA, Class A (1 month CME Term SOFR + 1.770%) (D)(G) | 5.145 | 05-15-39 | 212,000 | 206,321 | |
Series 2022-BOCA, Class B (1 month CME Term SOFR + 2.319%) (D)(G) | 5.695 | 05-15-39 | 100,000 | 96,155 | |
BPR Trust |
26 | JOHN HANCOCK INCOME SECURITIES TRUST | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Commercial and residential (continued) | |||||
Series 2022-OANA, Class A (1 month CME Term SOFR + 1.898%) (D)(G) | 5.274 | 04-15-37 | 601,000 | $582,296 | |
BRAVO Residential Funding Trust | |||||
Series 2021-NQM1, Class A1 (D)(I) | 0.941 | 02-25-49 | 117,301 | 107,030 | |
BWAY Mortgage Trust | |||||
Series 2015-1740, Class XA IO (D) | 0.179 | 01-10-35 | 6,885,000 | 1,066 | |
BX Commercial Mortgage Trust | |||||
Series 2020-VKNG, Class A (1 month LIBOR + 0.930%) (D)(G) | 4.342 | 10-15-37 | 239,571 | 230,899 | |
Series 2021-ACNT, Class A (1 month LIBOR + 0.850%) (D)(G) | 4.263 | 11-15-38 | 184,000 | 175,340 | |
Series 2021-VOLT, Class C (1 month LIBOR + 1.100%) (D)(G) | 4.512 | 09-15-36 | 223,000 | 205,700 | |
Series 2022-AHP, Class A (1 month CME Term SOFR + 0.990%) (D)(G) | 4.366 | 01-17-39 | 451,000 | 432,963 | |
BX Trust | |||||
Series 2022-CLS, Class A (D) | 5.760 | 10-13-27 | 221,000 | 218,533 | |
CAMB Commercial Mortgage Trust | |||||
Series 2019-LIFE, Class F (1 month LIBOR + 2.550%) (D)(G) | 5.962 | 12-15-37 | 146,000 | 136,007 | |
Citigroup Commercial Mortgage Trust | |||||
Series 2019-SMRT, Class A (D) | 4.149 | 01-10-36 | 123,000 | 119,365 | |
COLT Mortgage Loan Trust | |||||
Series 2021-2, Class A1 (D)(I) | 0.924 | 08-25-66 | 218,611 | 171,850 | |
Series 2021-3, Class A1 (D)(I) | 0.956 | 09-27-66 | 294,169 | 225,761 | |
Series 2021-HX1, Class A1 (D)(I) | 1.110 | 10-25-66 | 240,047 | 190,313 | |
COLT Trust | |||||
Series 2020-RPL1, Class A1 (D)(I) | 1.390 | 01-25-65 | 392,569 | 335,028 | |
Commercial Mortgage Trust (Cantor Fitzgerald/Deutsche Bank AG) | |||||
Series 2012-CR3, Class XA IO | 1.535 | 10-15-45 | 678,922 | 7 | |
Commercial Mortgage Trust (Citigroup/Deutsche Bank AG) | |||||
Series 2018-COR3, Class XA IO | 0.435 | 05-10-51 | 3,809,253 | 75,016 | |
Commercial Mortgage Trust (Deutsche Bank AG) | |||||
Series 2013-300P, Class D (D)(I) | 4.394 | 08-10-30 | 340,000 | 320,573 | |
Series 2020-CBM, Class A2 (D) | 2.896 | 02-10-37 | 208,000 | 189,820 | |
Credit Suisse Mortgage Capital Certificates | |||||
Series 2019-ICE4, Class D (1 month LIBOR + 1.600%) (D)(G) | 5.012 | 05-15-36 | 350,000 | 339,179 | |
Series 2021-NQM2, Class A1 (D)(I) | 1.179 | 02-25-66 | 166,735 | 140,463 | |
Series 2021-NQM3, Class A1 (D)(I) | 1.015 | 04-25-66 | 143,798 | 113,178 | |
Series 2021-NQM5, Class A1 (D)(I) | 0.938 | 05-25-66 | 148,424 | 110,346 | |
Ellington Financial Mortgage Trust | |||||
Series 2021-1, Class A1 (D)(I) | 0.797 | 02-25-66 | 73,821 | 57,680 | |
Series 2021-2, Class A1 (D)(I) | 0.931 | 06-25-66 | 168,473 | 129,575 | |
Flagstar Mortgage Trust | |||||
Series 2021-1, Class A2 (D)(I) | 2.500 | 02-01-51 | 364,745 | 282,578 | |
GCAT Trust |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK INCOME SECURITIES TRUST | 27 |
Rate (%) | Maturity date | Par value^ | Value | ||
Commercial and residential (continued) | |||||
Series 2021-NQM1, Class A1 (D)(I) | 0.874 | 01-25-66 | 132,610 | $110,851 | |
Series 2021-NQM2, Class A1 (D)(I) | 1.036 | 05-25-66 | 119,808 | 94,490 | |
Series 2021-NQM3, Class A1 (D)(I) | 1.091 | 05-25-66 | 195,069 | 156,416 | |
GS Mortgage Securities Trust | |||||
Series 2017-485L, Class C (D)(I) | 3.982 | 02-10-37 | 240,000 | 203,637 | |
Series 2020-UPTN, Class A (D) | 2.751 | 02-10-37 | 192,000 | 175,202 | |
GS Mortgage-Backed Securities Trust | |||||
Series 2020-NQM1, Class A1 (D)(I) | 1.382 | 09-27-60 | 48,086 | 43,701 | |
HarborView Mortgage Loan Trust | |||||
Series 2007-3, Class ES IO (D) | 0.350 | 05-19-47 | 2,558,890 | 26,519 | |
Series 2007-4, Class ES IO | 0.350 | 07-19-47 | 2,666,969 | 34,868 | |
Series 2007-6, Class ES IO (D) | 0.343 | 08-19-37 | 2,729,578 | 33,922 | |
Imperial Fund Mortgage Trust | |||||
Series 2021-NQM1, Class A1 (D)(I) | 1.071 | 06-25-56 | 116,256 | 94,455 | |
IMT Trust | |||||
Series 2017-APTS, Class CFX (D)(I) | 3.497 | 06-15-34 | 190,000 | 178,173 | |
InTown Mortgage Trust | |||||
Series 2022-STAY, Class A (1 month CME Term SOFR + 2.489%) (D)(G) | 5.865 | 08-15-39 | 359,000 | 353,615 | |
Irvine Core Office Trust | |||||
Series 2013-IRV, Class A2 (D)(I) | 3.173 | 05-15-48 | 245,000 | 240,591 | |
JPMorgan Chase Commercial Mortgage Securities Trust | |||||
Series 2020-NNN, Class AFX (D) | 2.812 | 01-16-37 | 195,000 | 176,151 | |
KNDL Mortgage Trust | |||||
Series 2019-KNSQ, Class D (1 month LIBOR + 1.350%) (D)(G) | 4.762 | 05-15-36 | 144,000 | 139,051 | |
Life Mortgage Trust | |||||
Series 2021-BMR, Class A (1 month LIBOR + 0.700%) (D)(G) | 4.112 | 03-15-38 | 275,232 | 263,064 | |
Series 2021-BMR, Class D (1 month LIBOR + 1.400%) (D)(G) | 4.812 | 03-15-38 | 216,253 | 202,716 | |
Series 2022-BMR2, Class A1 (1 month CME Term SOFR + 1.295%) (D)(G) | 4.671 | 05-15-39 | 602,000 | 579,472 | |
MFA Trust | |||||
Series 2021-NQM1, Class A1 (D)(I) | 1.153 | 04-25-65 | 103,833 | 89,503 | |
Natixis Commercial Mortgage Securities Trust | |||||
Series 2018-285M, Class D (D)(I) | 3.790 | 11-15-32 | 100,000 | 90,323 | |
Series 2018-ALXA, Class C (D)(I) | 4.316 | 01-15-43 | 175,000 | 148,285 | |
NYMT Loan Trust | |||||
Series 2022-CP1, Class A1 (D) | 2.042 | 07-25-61 | 120,885 | 106,744 | |
OBX Trust | |||||
Series 2020-EXP2, Class A3 (D)(I) | 2.500 | 05-25-60 | 89,034 | 70,215 | |
Series 2021-NQM2, Class A1 (D)(I) | 1.101 | 05-25-61 | 223,492 | 172,086 | |
Series 2021-NQM3, Class A1 (D)(I) | 1.054 | 07-25-61 | 269,057 | 199,713 | |
One Market Plaza Trust | |||||
Series 2017-1MKT, Class D (D) | 4.146 | 02-10-32 | 190,000 | 177,043 | |
SLG Office Trust | |||||
Series 2021-OVA, Class D (D) | 2.851 | 07-15-41 | 270,000 | 193,956 | |
Starwood Mortgage Residential Trust |
28 | JOHN HANCOCK INCOME SECURITIES TRUST | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Commercial and residential (continued) | |||||
Series 2022-1, Class A1 (D)(I) | 2.447 | 12-25-66 | 262,565 | $212,054 | |
Towd Point Mortgage Trust | |||||
Series 2015-1, Class A5 (D)(I) | 3.528 | 10-25-53 | 125,000 | 119,690 | |
Series 2015-2, Class 1M2 (D)(I) | 3.394 | 11-25-60 | 273,233 | 266,270 | |
Series 2017-2, Class A1 (D)(I) | 2.750 | 04-25-57 | 11,356 | 11,186 | |
Series 2018-1, Class A1 (D)(I) | 3.000 | 01-25-58 | 50,498 | 48,597 | |
Series 2018-4, Class A1 (D)(I) | 3.000 | 06-25-58 | 199,174 | 179,352 | |
Series 2018-5, Class A1A (D)(I) | 3.250 | 07-25-58 | 32,807 | 31,326 | |
Series 2019-1, Class A1 (D)(I) | 3.704 | 03-25-58 | 147,470 | 135,454 | |
Series 2019-4, Class A1 (D)(I) | 2.900 | 10-25-59 | 161,748 | 147,441 | |
Series 2020-4, Class A1 (D) | 1.750 | 10-25-60 | 195,915 | 173,281 | |
Verus Securitization Trust | |||||
Series 2020-5, Class A1 (1.218% to 10-1-24, then 2.218% thereafter) (D) | 1.218 | 05-25-65 | 67,375 | 60,928 | |
Series 2021-3, Class A1 (D)(I) | 1.046 | 06-25-66 | 210,601 | 163,932 | |
Series 2021-4, Class A1 (D)(I) | 0.938 | 07-25-66 | 119,181 | 91,349 | |
Series 2021-5, Class A1 (D)(I) | 1.013 | 09-25-66 | 230,659 | 177,261 | |
Series 2021-R1, Class A1 (D)(I) | 0.820 | 10-25-63 | 98,676 | 89,296 | |
U.S. Government Agency 3.4% | 4,488,641 | ||||
Federal Home Loan Mortgage Corp. | |||||
Series 2022-DNA1, Class M1A (1 month SOFR + 1.000%) (D)(G) | 3.997 | 01-25-42 | 278,219 | 269,056 | |
Series 2022-DNA2, Class M1A (1 month SOFR + 1.300%) (D)(G) | 4.297 | 02-25-42 | 194,416 | 190,168 | |
Series 2022-DNA2, Class M1B (1 month SOFR + 2.400%) (D)(G) | 5.397 | 02-25-42 | 270,000 | 248,400 | |
Series 2022-DNA3, Class M1A (1 month SOFR + 2.000%) (D)(G) | 4.997 | 04-25-42 | 265,027 | 259,727 | |
Series 2022-DNA3, Class M1B (1 month SOFR + 2.900%) (D)(G) | 5.897 | 04-25-42 | 164,000 | 152,110 | |
Series 2022-DNA4, Class M1A (1 month SOFR + 2.200%) (D)(G) | 5.197 | 05-25-42 | 206,951 | 204,623 | |
Series 2022-DNA4, Class M1B (1 month SOFR + 3.350%) (D)(G) | 6.347 | 05-25-42 | 250,000 | 235,625 | |
Series 2022-DNA5, Class M1B (1 month SOFR + 4.500%) (D)(G) | 7.497 | 06-25-42 | 272,000 | 270,980 | |
Federal National Mortgage Association | |||||
Series 2022-R03, Class 1M1 (1 month SOFR + 2.100%) (D)(G) | 5.097 | 03-25-42 | 246,836 | 243,469 | |
Series 2022-R04, Class 1M1 (1 month SOFR + 2.000%) (D)(G) | 4.997 | 03-25-42 | 105,898 | 104,095 | |
Government National Mortgage Association | |||||
Series 2012-114, Class IO | 0.621 | 01-16-53 | 489,292 | 7,529 | |
Series 2016-174, Class IO | 0.845 | 11-16-56 | 819,157 | 33,626 | |
Series 2017-109, Class IO | 0.272 | 04-16-57 | 866,867 | 18,312 | |
Series 2017-124, Class IO | 0.616 | 01-16-59 | 752,472 | 23,277 | |
Series 2017-135, Class IO | 0.721 | 10-16-58 | 1,205,198 | 50,250 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK INCOME SECURITIES TRUST | 29 |
Rate (%) | Maturity date | Par value^ | Value | ||
U.S. Government Agency (continued) | |||||
Series 2017-140, Class IO | 0.486 | 02-16-59 | 586,481 | $20,037 | |
Series 2017-20, Class IO | 0.544 | 12-16-58 | 1,421,862 | 38,900 | |
Series 2017-22, Class IO | 0.796 | 12-16-57 | 390,413 | 15,594 | |
Series 2017-46, Class IO | 0.685 | 11-16-57 | 1,139,587 | 43,759 | |
Series 2017-61, Class IO | 0.769 | 05-16-59 | 640,593 | 24,962 | |
Series 2017-74, Class IO | 0.460 | 09-16-58 | 1,163,982 | 29,167 | |
Series 2018-114, Class IO | 0.710 | 04-16-60 | 822,002 | 34,154 | |
Series 2018-158, Class IO | 0.769 | 05-16-61 | 1,283,213 | 66,167 | |
Series 2018-35, Class IO | 0.528 | 03-16-60 | 1,665,381 | 65,318 | |
Series 2018-43, Class IO | 0.498 | 05-16-60 | 2,081,313 | 71,942 | |
Series 2018-69, Class IO | 0.610 | 04-16-60 | 680,763 | 32,127 | |
Series 2018-9, Class IO | 0.443 | 01-16-60 | 1,224,348 | 39,344 | |
Series 2019-131, Class IO | 0.802 | 07-16-61 | 937,280 | 52,671 | |
Series 2020-100, Class IO | 0.784 | 05-16-62 | 1,098,601 | 66,043 | |
Series 2020-108, Class IO | 0.847 | 06-16-62 | 1,236,187 | 75,218 | |
Series 2020-114, Class IO | 0.800 | 09-16-62 | 2,630,613 | 165,535 | |
Series 2020-118, Class IO | 0.886 | 06-16-62 | 1,902,072 | 121,285 | |
Series 2020-119, Class IO | 0.601 | 08-16-62 | 1,086,716 | 56,127 | |
Series 2020-120, Class IO | 0.760 | 05-16-62 | 603,314 | 35,986 | |
Series 2020-137, Class IO | 0.794 | 09-16-62 | 3,030,101 | 176,146 | |
Series 2020-150, Class IO | 0.962 | 12-16-62 | 1,691,172 | 121,749 | |
Series 2020-170, Class IO | 0.833 | 11-16-62 | 2,261,601 | 146,595 | |
Series 2021-203, Class IO | 0.868 | 07-16-63 | 1,807,088 | 123,812 | |
Series 2021-3, Class IO | 0.867 | 09-16-62 | 2,907,471 | 192,524 | |
Series 2021-40, Class IO | 0.824 | 02-16-63 | 716,078 | 46,938 | |
Series 2022-150, Class IO | 0.824 | 06-16-64 | 258,574 | 17,675 | |
Series 2022-17, Class IO | 0.802 | 06-16-64 | 1,527,609 | 103,984 | |
Series 2022-21, Class IO | 0.783 | 10-16-63 | 667,234 | 43,996 | |
Series 2022-53, Class IO | 0.712 | 06-16-64 | 2,567,077 | 149,639 | |
Asset backed securities 11.9% (7.1% of Total investments) | $15,684,839 | ||||
(Cost $18,092,473) | |||||
Asset backed securities 11.9% | 15,684,839 | ||||
ABPCI Direct Lending Fund I, Ltd. | |||||
Series 2020-1A, Class A (D) | 3.199 | 12-20-30 | 105,000 | 94,240 | |
Aligned Data Centers Issuer LLC | |||||
Series 2021-1A, Class A2 (D) | 1.937 | 08-15-46 | 535,000 | 447,967 | |
AMSR Trust | |||||
Series 2020-SFR4, Class A (D) | 1.355 | 11-17-37 | 111,000 | 97,071 | |
Applebee’s Funding LLC | |||||
Series 2019-1A, Class A2I (D) | 4.194 | 06-05-49 | 435,600 | 410,258 | |
Aqua Finance Trust | |||||
Series 2021-A, Class A (D) | 1.540 | 07-17-46 | 120,033 | 108,288 | |
Arby’s Funding LLC | |||||
Series 2020-1A, Class A2 (D) | 3.237 | 07-30-50 | 381,225 | 320,106 | |
Avis Budget Rental Car Funding AESOP LLC |
30 | JOHN HANCOCK INCOME SECURITIES TRUST | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Asset backed securities (continued) | |||||
Series 2019-3A, Class A (D) | 2.360 | 03-20-26 | 378,000 | $350,630 | |
Series 2020-1A, Class A (D) | 2.330 | 08-20-26 | 251,000 | 227,415 | |
BMW Vehicle Lease Trust | |||||
Series 2022-1, Class A3 | 1.100 | 03-25-25 | 129,000 | 123,712 | |
CARS-DB4 LP | |||||
Series 2020-1A, Class B1 (D) | 4.170 | 02-15-50 | 293,000 | 267,627 | |
CF Hippolyta Issuer LLC | |||||
Series 2020-1, Class A1 (D) | 1.690 | 07-15-60 | 371,231 | 326,356 | |
Series 2021-1A, Class A1 (D) | 1.530 | 03-15-61 | 369,815 | 317,027 | |
Chase Auto Credit Linked Notes | |||||
Series 2021-3, Class B (D) | 0.760 | 02-26-29 | 136,636 | 129,359 | |
CLI Funding VI LLC | |||||
Series 2020-1A, Class A (D) | 2.080 | 09-18-45 | 407,030 | 349,269 | |
CLI Funding VIII LLC | |||||
Series 2021-1A, Class A (D) | 1.640 | 02-18-46 | 366,335 | 310,747 | |
Series 2022-1A, Class A (D) | 2.720 | 01-18-47 | 223,552 | 187,932 | |
ContiMortgage Home Equity Loan Trust | |||||
Series 1995-2, Class A5 | 8.100 | 08-15-25 | 15,539 | 11,426 | |
DB Master Finance LLC | |||||
Series 2017-1A, Class A2II (D) | 4.030 | 11-20-47 | 162,350 | 146,212 | |
Diamond Infrastructure Funding LLC | |||||
Series 2021-1A, Class C (D) | 3.475 | 04-15-49 | 80,000 | 61,680 | |
Domino’s Pizza Master Issuer LLC | |||||
Series 2017-1A, Class A23 (D) | 4.118 | 07-25-47 | 509,588 | 457,660 | |
Series 2021-1A, Class A2I (D) | 2.662 | 04-25-51 | 262,995 | 210,916 | |
Driven Brands Funding LLC | |||||
Series 2020-2A, Class A2 (D) | 3.237 | 01-20-51 | 275,100 | 222,424 | |
Series 2021-1A, Class A2 (D) | 2.791 | 10-20-51 | 331,650 | 256,648 | |
Elmwood CLO IV, Ltd. | |||||
Series 2020-1A, Class A (3 month LIBOR + 1.240%) (D)(G) | 5.319 | 04-15-33 | 263,000 | 253,889 | |
FirstKey Homes Trust | |||||
Series 2020-SFR1, Class A (D) | 1.339 | 08-17-37 | 446,431 | 393,674 | |
Series 2020-SFR2, Class A (D) | 1.266 | 10-19-37 | 266,521 | 233,239 | |
Series 2021-SFR1, Class A (D) | 1.538 | 08-17-38 | 211,816 | 178,185 | |
Series 2021-SFR1, Class D (D) | 2.189 | 08-17-38 | 264,000 | 216,799 | |
Five Guys Funding LLC | |||||
Series 2017-1A, Class A2 (D) | 4.600 | 07-25-47 | 193,550 | 181,063 | |
GM Financial Automobile Leasing Trust | |||||
Series 2021-2, Class A4 | 0.410 | 05-20-25 | 96,000 | 92,018 | |
GM Financial Consumer Automobile Receivables Trust | |||||
Series 2022-1, Class A3 | 1.260 | 11-16-26 | 83,000 | 78,649 | |
Golub Capital Partners Funding, Ltd. | |||||
Series 2020-1A, Class A2 (D) | 3.208 | 01-22-29 | 297,000 | 269,019 | |
Series 2021-1A, Class A2 (D) | 2.773 | 04-20-29 | 268,000 | 240,168 | |
HI-FI Music IP Issuer LP | |||||
Series 2022-1A, Class A2 (D) | 3.939 | 02-01-62 | 240,000 | 211,593 | |
Hilton Grand Vacations Trust | |||||
Series 2018-AA, Class A (D) | 3.540 | 02-25-32 | 60,749 | 58,662 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK INCOME SECURITIES TRUST | 31 |
Rate (%) | Maturity date | Par value^ | Value | ||
Asset backed securities (continued) | |||||
Home Partners of America Trust | |||||
Series 2021-2, Class A (D) | 1.901 | 12-17-26 | 122,904 | $104,558 | |
Honda Auto Receivables Owner Trust | |||||
Series 2021-2, Class A4 | 0.550 | 08-16-27 | 189,000 | 173,815 | |
Hyundai Auto Lease Securitization Trust | |||||
Series 2022-A, Class A3 (D) | 1.160 | 01-15-25 | 155,000 | 148,227 | |
Jack in the Box Funding LLC | |||||
Series 2019-1A, Class A23 (D) | 4.970 | 08-25-49 | 96,530 | 84,061 | |
Series 2022-1A, Class A2I (D) | 3.445 | 02-26-52 | 300,960 | 257,690 | |
Laurel Road Prime Student Loan Trust | |||||
Series 2019-A, Class A2FX (D) | 2.730 | 10-25-48 | 21,699 | 21,151 | |
MVW LLC | |||||
Series 2020-1A, Class D (D) | 7.140 | 10-20-37 | 1,163,493 | 1,053,947 | |
MVW Owner Trust | |||||
Series 2018-1A, Class A (D) | 3.450 | 01-21-36 | 96,997 | 93,658 | |
Navient Private Education Refi Loan Trust | |||||
Series 2019-FA, Class A2 (D) | 2.600 | 08-15-68 | 135,055 | 123,914 | |
Neighborly Issuer LLC | |||||
Series 2021-1A, Class A2 (D) | 3.584 | 04-30-51 | 468,860 | 383,411 | |
Series 2022-1A, Class A2 (D) | 3.695 | 01-30-52 | 187,583 | 149,564 | |
New Economy Assets Phase 1 Sponsor LLC | |||||
Series 2021-1, Class A1 (D) | 1.910 | 10-20-61 | 461,000 | 386,255 | |
Series 2021-1, Class B1 (D) | 2.410 | 10-20-61 | 139,000 | 112,577 | |
NRZ Excess Spread-Collateralized Notes | |||||
Series 2021-FHT1, Class A (D) | 3.104 | 07-25-26 | 73,747 | 64,219 | |
PFS Financing Corp. | |||||
Series 2020-E, Class A (D) | 1.000 | 10-15-25 | 263,000 | 250,820 | |
Progress Residential Trust | |||||
Series 2020-SFR1, Class A (D) | 1.732 | 04-17-37 | 173,831 | 157,247 | |
Series 2021-SFR8, Class B (D) | 1.681 | 10-17-38 | 165,000 | 136,301 | |
Sesac Finance LLC | |||||
Series 2019-1, Class A2 (D) | 5.216 | 07-25-49 | 350,235 | 318,567 | |
SMB Private Education Loan Trust | |||||
Series 2019-B, Class A2A (D) | 2.840 | 06-15-37 | 251,196 | 233,448 | |
Series 2020-PTA, Class A2A (D) | 1.600 | 09-15-54 | 208,670 | 184,855 | |
Series 2021-A, Class APT2 (D) | 1.070 | 01-15-53 | 160,782 | 133,654 | |
Sonic Capital LLC | |||||
Series 2020-1A, Class A2I (D) | 3.845 | 01-20-50 | 310,132 | 273,546 | |
Series 2021-1A, Class A2I (D) | 2.190 | 08-20-51 | 236,411 | 184,629 | |
Sunbird Engine Finance LLC | |||||
Series 2020-1A, Class A (D) | 3.671 | 02-15-45 | 185,624 | 146,819 | |
Taco Bell Funding LLC | |||||
Series 2021-1A, Class A2I (D) | 1.946 | 08-25-51 | 502,205 | 416,749 | |
TIF Funding II LLC | |||||
Series 2021-1A, Class A (D) | 1.650 | 02-20-46 | 211,772 | 173,945 | |
Triton Container Finance VIII LLC | |||||
Series 2020-1A, Class A (D) | 2.110 | 09-20-45 | 529,135 | 444,590 | |
Series 2021-1A, Class A (D) | 1.860 | 03-20-46 | 291,645 | 243,515 | |
Vantage Data Centers LLC | |||||
Series 2020-1A, Class A2 (D) | 1.645 | 09-15-45 | 341,000 | 298,973 |
32 | JOHN HANCOCK INCOME SECURITIES TRUST | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Asset backed securities (continued) | |||||
Series 2020-2A, Class A2 (D) | 1.992 | 09-15-45 | 239,000 | $191,012 | |
VR Funding LLC | |||||
Series 2020-1A, Class A (D) | 2.790 | 11-15-50 | 352,857 | 307,408 | |
VSE VOI Mortgage LLC | |||||
Series 2017-A, Class A (D) | 2.330 | 03-20-35 | 102,230 | 97,056 | |
Wendy’s Funding LLC | |||||
Series 2021-1A, Class A2I (D) | 2.370 | 06-15-51 | 292,300 | 226,466 | |
Willis Engine Structured Trust V | |||||
Series 2020-A, Class A (D) | 3.228 | 03-15-45 | 104,732 | 82,624 | |
Zaxby’s Funding LLC | |||||
Series 2021-1A, Class A2 (D) | 3.238 | 07-30-51 | 231,075 | 183,640 | |
Shares | Value | ||||
Common stocks 0.2% (0.1% of Total investments) | $235,375 | ||||
(Cost $312,500) | |||||
Utilities 0.2% | 235,375 | ||||
Multi-utilities 0.2% | |||||
Algonquin Power & Utilities Corp. | 6,250 | 235,375 | |||
Preferred securities 0.5% (0.3% of Total investments) | $673,599 | ||||
(Cost $721,943) | |||||
Communication services 0.1% | 117,024 | ||||
Wireless telecommunication services 0.1% | |||||
Telephone & Data Systems, Inc., 6.625% (B) | 5,825 | 117,024 | |||
Financials 0.2% | 223,782 | ||||
Banks 0.2% | |||||
Wells Fargo & Company, 7.500% | 192 | 223,782 | |||
Utilities 0.2% | 332,793 | ||||
Electric utilities 0.1% | |||||
NextEra Energy, Inc., 5.279% | 4,050 | 200,232 | |||
Multi-utilities 0.1% | |||||
NiSource, Inc., 7.750% (A)(B) | 1,300 | 132,561 | |||
Par value^ | Value | ||||
Escrow certificates 0.0% (0.0% of Total investments) | $202 | ||||
(Cost $0) | |||||
LSC Communications, Inc. (D)(J) | 321,000 | 202 | |||
Yield (%) | Shares | Value | |||
Short-term investments 1.9% (1.2% of Total investments) | $2,564,993 | ||||
(Cost $2,565,023) | |||||
Short-term funds 1.9% | 2,564,993 | ||||
John Hancock Collateral Trust (K) | 3.1986(L) | 256,730 | 2,564,993 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK INCOME SECURITIES TRUST | 33 |
Total investments (Cost $254,504,512) 167.4% | $221,266,445 | ||||
Other assets and liabilities, net (67.4%) | (89,081,210) | ||||
Total net assets 100.0% | $132,185,235 |
The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund unless otherwise indicated. | |
^All par values are denominated in U.S. dollars unless otherwise indicated. | |
Security Abbreviations and Legend | |
CME | Chicago Mercantile Exchange |
CMT | Constant Maturity Treasury |
ICE | Intercontinental Exchange |
IO | Interest-Only Security - (Interest Tranche of Stripped Mortgage Pool). Rate shown is the annualized yield at the end of the period. |
LIBOR | London Interbank Offered Rate |
PIK | Pay-in-Kind Security - Represents a payment-in-kind which may pay interest in additional par and/or cash. Rates shown are the current rate and most recent payment rate. |
SOFR | Secured Overnight Financing Rate |
TBA | To Be Announced. A forward mortgage-backed securities trade issued by a U.S. Government Agency, to be delivered at an agreed-upon future settlement date. |
(A) | All or a portion of this security is on loan as of 10-31-22, and is a component of the fund’s leverage under the Liquidity Agreement. |
(B) | All or a portion of this security is pledged as collateral pursuant to the Liquidity Agreement. Total collateral value at 10-31-22 was $89,018,653. A portion of the securities pledged as collateral were loaned pursuant to the Liquidity Agreement. The value of securities on loan amounted to $21,833,903. |
(C) | Security purchased or sold on a when-issued or delayed delivery basis. |
(D) | These securities are exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be resold, normally to qualified institutional buyers, in transactions exempt from registration. Rule 144A securities amounted to $66,862,603 or 50.6% of the fund’s net assets as of 10-31-22. |
(E) | Non-income producing - Issuer is in default. |
(F) | Perpetual bonds have no stated maturity date. Date shown as maturity date is next call date. |
(G) | Variable rate obligation. The coupon rate shown represents the rate at period end. |
(H) | Term loans are variable rate obligations. The coupon rate shown represents the rate at period end. |
(I) | Variable or floating rate security, the interest rate of which adjusts periodically based on a weighted average of interest rates and prepayments on the underlying pool of assets. The interest rate shown is the current rate as of period end. |
(J) | Non-income producing security. |
(K) | Investment is an affiliate of the fund, the advisor and/or subadvisor. |
(L) | The rate shown is the annualized seven-day yield as of 10-31-22. |
34 | JOHN HANCOCK INCOME SECURITIES TRUST | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Assets | |
Unaffiliated investments, at value (Cost $251,939,489) | $218,701,452 |
Affiliated investments, at value (Cost $2,565,023) | 2,564,993 |
Total investments, at value (Cost $254,504,512) | 221,266,445 |
Cash | 18,482 |
Interest receivable | 1,864,884 |
Receivable for investments sold | 16,876,077 |
Receivable for delayed delivery securities sold | 1,482,699 |
Other assets | 21,350 |
Total assets | 241,529,937 |
Liabilities | |
Liquidity agreement | 91,300,000 |
Payable for investments purchased | 16,133,018 |
Payable for delayed delivery securities purchased | 1,478,527 |
Interest payable | 319,277 |
Payable to affiliates | |
Accounting and legal services fees | 8,046 |
Other liabilities and accrued expenses | 105,834 |
Total liabilities | 109,344,702 |
Net assets | $132,185,235 |
Net assets consist of | |
Paid-in capital | $175,067,706 |
Total distributable earnings (loss) | (42,882,471) |
Net assets | $132,185,235 |
Net asset value per share | |
Based on 11,646,585 shares of beneficial interest outstanding - unlimited number of shares authorized with no par value | $11.35 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK INCOME SECURITIES TRUST | 35 |
Investment income | |
Interest | $9,688,900 |
Dividends | 108,643 |
Dividends from affiliated investments | 39,620 |
Less foreign taxes withheld | (3,055) |
Total investment income | 9,834,108 |
Expenses | |
Investment management fees | 1,335,643 |
Interest expense | 1,697,916 |
Accounting and legal services fees | 23,971 |
Transfer agent fees | 54,882 |
Trustees’ fees | 37,611 |
Custodian fees | 33,006 |
Printing and postage | 9,233 |
Professional fees | 84,230 |
Stock exchange listing fees | 23,756 |
Other | 16,188 |
Total expenses | 3,316,436 |
Less expense reductions | (21,258) |
Net expenses | 3,295,178 |
Net investment income | 6,538,930 |
Realized and unrealized gain (loss) | |
Net realized gain (loss) on | |
Unaffiliated investments | (8,149,108) |
Affiliated investments | (1,553) |
(8,150,661) | |
Change in net unrealized appreciation (depreciation) of | |
Unaffiliated investments | (40,648,844) |
Affiliated investments | (30) |
(40,648,874) | |
Net realized and unrealized loss | (48,799,535) |
Decrease in net assets from operations | $(42,260,605) |
36 | JOHN HANCOCK INCOME SECURITIES TRUST | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Year ended 10-31-22 | Year ended 10-31-21 | |
Increase (decrease) in net assets | ||
From operations | ||
Net investment income | $6,538,930 | $8,293,699 |
Net realized gain (loss) | (8,150,661) | 4,274,511 |
Change in net unrealized appreciation (depreciation) | (40,648,874) | (2,899,177) |
Increase (decrease) in net assets resulting from operations | (42,260,605) | 9,669,033 |
Distributions to shareholders | ||
From earnings | (10,716,025) | (10,281,607) |
Total distributions | (10,716,025) | (10,281,607) |
Total decrease | (52,976,630) | (612,574) |
Net assets | ||
Beginning of year | 185,161,865 | 185,774,439 |
End of year | $132,185,235 | $185,161,865 |
Share activity | ||
Shares outstanding | ||
Beginning of year | 11,646,585 | 11,646,585 |
End of year | 11,646,585 | 11,646,585 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK INCOME SECURITIES TRUST | 37 |
Cash flows from operating activities | |
Net decrease in net assets from operations | $(42,260,605) |
Adjustments to reconcile net decrease in net assets from operations to net cash provided by operating activities: | |
Long-term investments purchased | (254,198,158) |
Long-term investments sold | 248,439,375 |
Net purchases and sales of short-term investments | 21,608,746 |
Net amortization of premium (discount) | 949,299 |
(Increase) Decrease in assets: | |
Dividends and interest receivable | 290,714 |
Receivable for investments sold | (16,780,396) |
Receivable for delayed delivery securities sold | (1,482,699) |
Other assets | (3,091) |
Increase (Decrease) in liabilities: | |
Payable for investments purchased | 14,447,428 |
Payable for delayed delivery securities purchased | (9,816,324) |
Interest payable | 265,450 |
Payable to affiliates | (2,425) |
Other liabilities and accrued expenses | (41,665) |
Net change in unrealized (appreciation) depreciation on: | |
Investments | 40,648,874 |
Net realized (gain) loss on: | |
Investments | 8,150,661 |
Net cash provided by operating activities | $10,215,184 |
Cash flows provided by (used in) financing activities | |
Distributions to shareholders | $(10,716,025) |
Net cash used in financing activities | $(10,716,025) |
Net decrease in cash | $(500,841) |
Cash at beginning of year | $519,323 |
Cash at end of year | $18,482 |
Supplemental disclosure of cash flow information: | |
Cash paid for interest | $(1,432,466) |
38 | JOHN HANCOCK INCOME SECURITIES TRUST | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Period ended | 10-31-22 | 10-31-21 | 10-31-20 | 10-31-19 | 10-31-18 |
Per share operating performance | |||||
Net asset value, beginning of period | $15.90 | $15.95 | $15.57 | $14.22 | $15.57 |
Net investment income1 | 0.56 | 0.71 | 0.65 | 0.60 | 0.66 |
Net realized and unrealized gain (loss) on investments | (4.19) | 0.12 | 0.48 | 1.42 | (1.27) |
Total from investment operations | (3.63) | 0.83 | 1.13 | 2.02 | (0.61) |
Less distributions | |||||
From net investment income | (0.70) | (0.84) | (0.75) | (0.67) | (0.74) |
From net realized gain | (0.22) | (0.04) | — | — | — |
Total distributions | (0.92) | (0.88) | (0.75) | (0.67) | (0.74) |
Net asset value, end of period | $11.35 | $15.90 | $15.95 | $15.57 | $14.22 |
Per share market value, end of period | $10.48 | $15.46 | $15.44 | $14.58 | $13.14 |
Total return at net asset value (%)2,3 | (23.60) | 5.36 | 7.78 | 14.84 | (3.76) |
Total return at market value (%)2 | (27.45) | 5.83 | 11.42 | 16.37 | (6.50) |
Ratios and supplemental data | |||||
Net assets, end of period (in millions) | $132 | $185 | $186 | $181 | $166 |
Ratios (as a percentage of average net assets): | |||||
Expenses before reductions | 2.10 | 1.30 | 1.67 | 2.55 | 2.34 |
Expenses including reductions4 | 2.08 | 1.29 | 1.66 | 2.54 | 2.32 |
Net investment income | 4.13 | 4.42 | 4.15 | 3.99 | 4.44 |
Portfolio turnover (%) | 101 | 60 | 66 | 50 | 68 |
Senior securities | |||||
Total debt outstanding end of period (in millions) | $91 | $91 | $91 | $91 | $91 |
Asset coverage per $1,000 of debt5 | $2,448 | $3,028 | $3,035 | $2,986 | $2,814 |
1 | Based on average daily shares outstanding. |
2 | Total return based on net asset value reflects changes in the fund’s net asset value during each period. Total return based on market value reflects changes in market value. Each figure assumes that distributions from income, capital gains and tax return of capital, if any, were reinvested. |
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
4 | Expenses including reductions excluding interest expense were 1.01%, 0.94%, 0.95%, 0.98% and 1.01% for the periods ended 10-31-22, 10-30-21, 10-31-20, 10-31-19 and 10-31-18, respectively. |
5 | Asset coverage equals the total net assets plus borrowings divided by the borrowings of the fund outstanding at period end (Note 7). As debt outstanding changes, the level of invested assets may change accordingly. Asset coverage ratio provides a measure of leverage. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK Income Securities Trust | 39 |
40 | JOHN HANCOCK Income Securities Trust | ANNUAL REPORT |
Total value at 10-31-22 | Level 1 quoted price | Level 2 significant observable inputs | Level 3 significant unobservable inputs | |
Investments in securities: | ||||
Assets | ||||
U.S. Government and Agency obligations | $73,706,034 | — | $73,706,034 | — |
Foreign government obligations | 940,473 | — | 940,473 | — |
Corporate bonds | 107,628,146 | — | 107,628,146 | — |
Municipal bonds | 531,303 | — | 531,303 | — |
Term loans | 1,343,580 | — | 1,343,580 | — |
Collateralized mortgage obligations | 17,957,901 | — | 17,957,901 | — |
Asset backed securities | 15,684,839 | — | 15,684,839 | — |
Common stocks | 235,375 | $235,375 | — | — |
Preferred securities | 673,599 | 673,599 | — | — |
Escrow certificates | 202 | — | 202 | — |
Short-term investments | 2,564,993 | 2,564,993 | — | — |
Total investments in securities | $221,266,445 | $3,473,967 | $217,792,478 | — |
ANNUAL REPORT | JOHN HANCOCK Income Securities Trust | 41 |
42 | JOHN HANCOCK Income Securities Trust | ANNUAL REPORT |
October 31, 2022 | October 31, 2021 | |
Ordinary income | $8,926,367 | $10,281,607 |
Long-term capital gains | 1,789,658 | — |
Total | $10,716,025 | $10,281,607 |
ANNUAL REPORT | JOHN HANCOCK Income Securities Trust | 43 |
44 | JOHN HANCOCK Income Securities Trust | ANNUAL REPORT |
• | the likelihood of greater volatility of NAV and market price of shares; |
• | fluctuations in the interest rate paid for the use of the LA; |
• | increased operating costs, which may reduce the fund’s total return; |
• | the potential for a decline in the value of an investment acquired through leverage, while the fund’s obligations under such leverage remains fixed; and |
• | the fund is more likely to have to sell securities in a volatile market in order to meet asset coverage or other debt compliance requirements. |
ANNUAL REPORT | JOHN HANCOCK Income Securities Trust | 45 |
46 | JOHN HANCOCK Income Securities Trust | ANNUAL REPORT |
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 | 256,730 | — | $44,536,492 | $(41,969,916) | $(1,553) | $(30) | $39,620 | — | $2,564,993 |
ANNUAL REPORT | JOHN HANCOCK Income Securities Trust | 47 |
48 | JOHN HANCOCK INCOME SECURITIES TRUST | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK INCOME SECURITIES TRUST | 49 |
50 | JOHN HANCOCK INCOME SECURITIES TRUST | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK INCOME SECURITIES TRUST | 51 |
52 | JOHN HANCOCK INCOME SECURITIES TRUST | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK INCOME SECURITIES TRUST | 53 |
Payment Date | Income Distributions |
December 31, 2021 | $0.2276 |
March 31, 2022 | 0.1780 |
June 30, 2022 | 0.1682 |
September 30, 2022 | 0.1216 |
Total | $0.6954 |
Payment Date | Additional Distributions |
December 31, 2021 | $0.2247 |
Total | $0.9201 |
54 | JOHN HANCOCK INCOME SECURITIES TRUST | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK INCOME SECURITIES TRUST | 55 |
Computershare
P.O. Box 43006
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150 Royall Street, Suite 101
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56 | JOHN HANCOCK INCOME SECURITIES TRUST | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK INCOME SECURITIES TRUST | 57 |
(a) | the skills and competency with which the Advisor has in the past managed the fund’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; |
58 | JOHN HANCOCK INCOME SECURITIES TRUST | ANNUAL REPORT |
(c) | the Advisor’s compliance policies and procedures and its responsiveness to regulatory changes and fund industry developments; |
(d) | the Advisor’s administrative capabilities, including its ability to supervise the other service providers for the fund, as well as the Advisor’s oversight of any securities lending activity, its monitoring of class action litigation and collection of class action settlements on behalf of the fund, and bringing loss recovery actions on behalf of the fund; |
(e) | the financial condition of the Advisor and whether it has the financial wherewithal to provide a high level and quality of services to the fund; |
(f) | the Advisor’s initiatives intended to improve various aspects of the fund’s operations and investor experience with the fund; and |
(g) | the Advisor’s reputation and experience in serving as an investment advisor to the fund 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; |
(d) | took into account the Advisor’s analysis of the fund’s performance; and |
(e) | considered the fund’s share performance and premium/discount information. |
ANNUAL REPORT | JOHN HANCOCK INCOME SECURITIES TRUST | 59 |
(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 Advisor also provides administrative services to the fund on a cost basis pursuant to an administrative services agreement; |
(f) | noted that the fund’s Subadvisor is an affiliate of the Advisor; |
(g) | noted that the Advisor also derives reputational and other indirect benefits from providing advisory services to the fund; |
(h) | noted that the subadvisory fees for the fund are paid by the Advisor; |
(i) | considered the Advisor’s ongoing costs and expenditures necessary to improve services, meet new regulatory and compliance requirements, and adapt to other challenges impacting the fund industry; and |
(j) | considered that the Advisor should be entitled to earn a reasonable level of profits in exchange for the level of services it provides to the fund and the risks that it assumes as Advisor, including entrepreneurial, operational, reputational, litigation and regulatory risk. |
60 | JOHN HANCOCK INCOME SECURITIES TRUST | ANNUAL REPORT |
(1) | information relating to the Subadvisor’s business, including current subadvisory services to the fund (and other funds in the John Hancock Fund Complex); |
(2) | the historical and current performance of the fund and comparative performance information relating to an applicable benchmark index and comparable funds; and |
(3) | the subadvisory fee for the fund, including any breakpoints, and to the extent available, comparable fee information prepared by an independent third party provider of fund data. |
ANNUAL REPORT | JOHN HANCOCK INCOME SECURITIES TRUST | 61 |
(1) | the Subadvisor has extensive experience and demonstrated skills as a manager; |
(2) | the fund’s performance, based on net asset value, has generally been in line with or outperformed the fund’s benchmark index; |
(3) | the subadvisory fees are reasonable in relation to the level and quality of services being provided under the Subadvisory Agreement; and |
(4) | 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. |
62 | JOHN HANCOCK INCOME SECURITIES TRUST | ANNUAL REPORT |
Independent Trustees | ||
Name, year of birth Position(s) held with fund 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 | 183 |
Trustee and Chairperson of the Board | ||
Director/Trustee, Virtus Funds (2008-2020); Director, The Barnes Group (2010-2021); Associate Professor, The Wallace E. Carroll School of Management, Boston College (retired 2013). Trustee (since 2005) and Chairperson of the Board (since 2017) of various trusts within the John Hancock Fund Complex. | ||
James R. Boyle, Born: 1959 | 2015 | 183 |
Trustee | ||
Foresters Financial, Chief Executive Officer (2018–2022) and board member (2017–2022). Manulife Financial and John Hancock, more than 20 years, retiring in 2012 as Chief Executive Officer, John Hancock and Senior Executive Vice President, Manulife Financial. Trustee of various trusts within the John Hancock Fund Complex (2005–2014 and since 2015). | ||
Peter S. Burgess,2 Born: 1942 | 2012 | 183 |
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,2 Born: 1944 | 2005 | 183 |
Trustee | ||
Professor, University of Texas, Austin, Texas (since 1971); former Chancellor, University of Texas System and former President of the University of Texas, Austin, Texas; Director (since 2006), Lincoln National Corporation (insurance); Director, Southwest Airlines (since 2000). Trustee of various trusts within the John Hancock Fund Complex (since 1986). | ||
Noni L. Ellison,* Born: 1971 | 2022 | 183 |
Trustee | ||
Senior Vice President, General Counsel & Corporate Secretary, Tractor Supply Company (rural lifestyle retailer) (since 2021); General Counsel, Chief Compliance Officer & Corporate Secretary, Carestream Dental, L.L.C.(2017–2021); Associate General Counsel & Assistant Corporate Secretary, W.W. Grainger, Inc. (global industrial supplier) (2015–2017); Board Member, Goodwill of North Georgia, 2018 (FY2019)–2020 (FY2021); Board Member, Howard University School of Law Board of Visitors (since 2021); Board Member, University of Chicago Law School Board of Visitors (since 2016); Board member, Children’s Healthcare of Atlanta Foundation Board (2021–present). Trustee of various trusts within the John Hancock Fund Complex (since 2022). | ||
Grace K. Fey, Born: 1946 | 2012 | 183 |
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 INCOME SECURITIES TRUST | 63 |
Independent Trustees (continued) | ||
Name, year of birth Position(s) held with fund Principal occupation(s) and other directorships during past 5 years | Trustee of the Trust since1 | Number of John Hancock funds overseen by Trustee |
Dean C. Garfield,* Born: 1968 | 2022 | 183 |
Trustee | ||
Vice President, Netflix, Inc. (since 2019); President & Chief Executive Officer, Information Technology Industry Council (2009–2019); NYU School of Law Board of Trustees (since 2021); Member, U.S. Department of Transportation, Advisory Committee on Automation (since 2021); President of the United States Trade Advisory Council (2010–2018); Board Member, College for Every Student (2017–2021); Board Member, The Seed School of Washington, D.C. (2012–2017). Trustee of various trusts within the John Hancock Fund Complex (since 2022) | ||
Deborah C. Jackson, Born: 1952 | 2008 | 183 |
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); Chief Executive Officer, American Red Cross of Massachusetts Bay (2002–2011); Board of Directors of Eastern Bank Corporation (since 2001); Board of Directors of Eastern Bank Charitable Foundation (since 2001); Board of Directors of Boston Stock Exchange (2002–2008); Board of Directors of Harvard Pilgrim Healthcare (health benefits company) (2007–2011). Trustee of various trusts within the John Hancock Fund Complex (since 2008). | ||
Patricia Lizarraga,2,* Born: 1966 | 2022 | 183 |
Trustee | ||
Founder, Chief Executive Officer, Hypatia Capital Group (advisory and asset management company) (since 2007); Independent Director, Audit Committee Chair, and Risk Committee Member, Credicorp, Ltd. (since 2017); Independent Director, Audit Committee Chair, Banco De Credito Del Peru (since 2017); Trustee, Museum of Art of Lima (since 2009). Trustee of various trusts within the John Hancock Fund Complex (since 2022). | ||
Steven R. Pruchansky, Born: 1944 | 2005 | 183 |
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 | 183 |
Trustee | ||
Director, Audit Committee Chair, Oatly Group AB (plant-based drink company) (since 2021); Director, Audit Committee Chair and Compensation Committee Member, Green Mountain Power Corporation (since 2016); Director, Treasurer and Finance & Audit Committee Chair, Flynn Center for Performing Arts (since 2016); Director and Audit Committee Chair, Planet Fitness (since 2016); Chief Financial Officer and Treasurer, Keurig Green Mountain, Inc. (2003-retired 2015). Trustee of various trusts within the John Hancock Fund Complex (since 2020). |
64 | JOHN HANCOCK INCOME SECURITIES TRUST | ANNUAL REPORT |
Independent Trustees (continued) | ||
Name, year of birth Position(s) held with fund Principal occupation(s) and other directorships during past 5 years | Trustee of the Trust since1 | Number of John Hancock funds overseen by Trustee |
Gregory A. Russo, Born: 1949 | 2008 | 183 |
Trustee | ||
Director and Audit Committee Chairman (2012-2020), and Member, Audit Committee and Finance Committee (2011-2020), NCH Healthcare System, Inc. (holding company for multi-entity healthcare system); Director and Member (2012-2018), and Finance Committee Chairman (2014-2018), The Moorings, Inc. (nonprofit continuing care community); Global Vice Chairman, Risk & Regulatory Matters, KPMG LLP (KPMG) (2002–2006); Vice Chairman, Industrial Markets, KPMG (1998–2002). Trustee of various trusts within the John Hancock Fund Complex (since 2008). |
Non-Independent Trustees3 | ||
Name, year of birth Position(s) held with fund 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 | 183 |
President and Non-Independent Trustee | ||
Global Head of Retail for Manulife (since 2022); Head of Wealth and Asset Management, United States and Europe, for John Hancock and Manulife (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 | 183 |
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 and since 2017). Trustee of various trusts within the John Hancock Fund Complex (since 2018). | ||
Paul Lorentz,† Born: 1968 | 2022 | 183 |
Non-Independent Trustee | ||
Global Head, Manulife Wealth and Asset Management (since 2017); General Manager, Manulife, Individual Wealth Management and Insurance (2013–2017); President, Manulife Investments (2010–2016). Trustee of various trusts within the John Hancock Fund Complex (since 2022). |
ANNUAL REPORT | JOHN HANCOCK INCOME SECURITIES TRUST | 65 |
Principal officers who are not Trustees | |
Name, year of birth Position(s) held with fund 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). | |
Trevor Swanberg, Born: 1979 | 2020 |
Chief Compliance Officer | |
Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2020); Deputy Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (2019–2020); Assistant Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (2016–2019); Vice President, State Street Global Advisors (2015–2016); Chief Compliance Officer of various trusts within the John Hancock Fund Complex (since 2016, including prior positions). |
1 | Each Trustee holds office until his or her successor is duly elected and qualified, or until the Trustee’s death, retirement, resignation, or removal. Each Trustee was most recently elected on February 14, 2022, excluding Ms. Ellison, Mr. Garfield, Ms. Lizarraga, and Mr. Lorentz, who will stand for election in 2023. 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. |
* | Appointed to serve as Independent Trustee effective as of September 20, 2022. |
† | Appointed to serve as Non-Independent Trustee effective as of September 20, 2022. |
66 | JOHN HANCOCK INCOME SECURITIES TRUST | ANNUAL REPORT |
Steven R. Pruchansky, Vice Chairperson
Andrew G. Arnott†
James R. Boyle
Peter S. Burgess*
William H. Cunningham*
Grace K. Fey
Noni L. Ellison^
Dean C. Garfield^
Marianne Harrison†
Deborah C. Jackson
Patricia Lizarraga*,^
Paul Lorentz‡
Frances G. Rathke*
Gregory A. Russo
President
Chief Financial Officer
Treasurer
Secretary and Chief Legal Officer
Chief Compliance Officer
Howard C. Greene, CFA
Connor Minnaar, CFA
You can also contact us: | ||
800-852-0218 | Regular mail: | Express mail: |
jhinvestments.com | Computershare P.O. Box 43006 Providence, RI 02940-3078 | Computershare 150 Royall St., Suite 101 Canton, MA 02021 |
ANNUAL REPORT | JOHN HANCOCK INCOME SECURITIES TRUST | 67 |
GOVERNANCE FUNDS
with a heritage of financial stewardship dating back to 1862. Helping
our shareholders pursue their financial goals is at the core of everything
we do. It’s why we support the role of professional financial advice
and operate with the highest standards of conduct and integrity.
We search the world to find proven portfolio teams with specialized
expertise for every strategy we offer, then we apply robust investment
oversight to ensure they continue to meet our uncompromising
standards and serve the best interests of our shareholders.
a diverse set of investments backed by some of the world’s best
managers, along with strong risk-adjusted returns across asset classes.
MF2574494 | P6A 10/22 |
ITEM 2. CODE OF ETHICS.
As of the end of the year, October 31, 2022, the registrant has adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies to its Principal Executive Officer, Principal Financial Officer and Treasurer (respectively, the principal executive officer, the principal financial officer and the principal accounting officer, the "Covered Officers"). A copy of the code of ethics is filed as an exhibit to this Form N-CSR.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Frances G. Rathke is the audit committee financial expert, effective March 25, 2022, and is "independent", pursuant to general instructions on Form N-CSR Item 3.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Audit Fees
The aggregate fees billed for professional services rendered by the principal accountant(s) for John Hancock Income Securities Trust for the audit of the registrant's annual financial statements or services that are normally provided by the accountant(s) in connection with statutory and regulatory filings or engagements amounted to $54,196 for the fiscal year ended October 31, 2022 and $51,376 for the fiscal year ended October 31, 2021. These fees were billed to the registrant and were approved by the registrant's audit committee.
(b) Audit-Related Services
The aggregate fees for John Hancock Income Securities Trust for audit-related fees amounted to $5 for the fiscal year ended October 31, 2022 and $207 for the fiscal year ended October 31, 2021. These fees were billed to the registrant or to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant ("control affiliates"). The nature of the services provided was related to a software licensing fee and internal controls review.
(c) Tax Fees
The aggregate fees for John Hancock Income Securities Trust billed for professional services rendered by the principal accountant(s) for the tax compliance, tax advice and tax planning ("tax fees") amounted to $4,110 for the fiscal year ended October 31, 2022 and $3,914 for the fiscal year ended October 31, 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.
(d) All Other Fees
All other fees for John Hancock Income Securities Trust billed to the registrant or control affiliates for products and services provided by the principal accountant were $163 for the fiscal year ended October 31, 2022 and $271 for the fiscal year ended October 31, 2021. The nature of the services comprising all other fees is advisory services provided to the investment manager. These fees were approved by the registrant's audit committee.
(e)(1) Audit Committee Pre-Approval Policies and Procedures:
The trust's Audit Committee must pre-approve all audit and non-audit services provided by the independent registered public accounting firm (the "Auditor") relating to the operations or financial reporting of the funds. Prior to the commencement of any audit or non-audit services to a fund, the Audit Committee reviews the services to determine whether they are appropriate and permissible under applicable law.
The trust's Audit Committee has adopted policies and procedures to, among other purposes, provide a framework for the Committee's consideration of audit-related and non-audit services by the Auditor. The policies and procedures require that any audit-related and non-audit service provided by the Auditor and any non-audit service provided by the Auditor to a fund service provider that relates directly to the operations and financial reporting of a fund are subject to approval by the Audit Committee before such service is provided. Audit-related services provided by the Auditor that are expected to exceed $25,000 per instance/per fund are subject to specific pre-approval by the Audit Committee. Tax services provided by the Auditor that are expected to exceed $30,000 per instance/per fund are subject to specific pre-approval by the Audit Committee.
All audit services, as well as the audit-related and non-audit services that are expected to exceed the amounts stated above, must be approved in advance of provision of the service by formal resolution of the Audit Committee. At the regularly scheduled Audit Committee meetings, the Committee reviews a report summarizing the services, including fees, provided by the Auditor.
(e)(2) Services approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X:
Audit-Related Fees, Tax Fees and All Other Fees:
There were no amounts that were approved by the Audit Committee pursuant to the de minimis exception under Rule 2-01 of Regulation S-X.
(f)According to the registrant's principal accountant, for the fiscal year ended October 31, 2022, the percentage of hours spent on the audit of the registrant's financial statements for the most recent fiscal year that were attributed to work performed by persons who were not full-time, permanent employees of principal accountant was less than 50%.
(g)The aggregate non-audit fees billed by the registrant's accountant(s) for services rendered to the registrant and rendered to the registrant's control affiliates for each of the last two fiscal years of the registrant were $1,198,914 for the fiscal year ended October 31, 2022 and $1,211,415 for the fiscal year ended October 31, 2021.
(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:
Frances G. Rathke – Chairperson, effective March 25, 2022
Peter S. Burgess
William H. Cunningham
Patricia Lizarraga, effective September 20, 2022
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.
See attached exhibit - Proxy Voting Policies and Procedures.
ITEM 8.
PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Information about the Manulife Investment Management (US) LLC ("Manulife IM (US)") portfolio managers
Below is a list of the Manulife Investment Management (US) LLC portfolio managers who share joint responsibility for the day-to-day investment management of the Fund. It provides a brief summary of their business careers over the past five years.
The information provided is as of the filing date of this N-CSR.
Jeffrey N. Given, CFA
Senior Managing Director and Senior Portfolio Manager Manulife Investment Management (US) LLC since 2012
Managing Director, Manulife Investment Management (US) LLC (2005–2012) Second Vice President, John Hancock Investment Management, LLC (1993–2005) Began business career in 1993
Managed the Fund since 1999
Howard C. Greene, CFA
Senior Managing Director and Senior Portfolio Manager
Manulife Investment Management (US) LLC since 2005
Began business career in 1979
Managed the Fund since 2005
Connor Minnaar, CFA
Senior Director and Associate Portfolio Manager
Joined Manulife IM (US) in 2006
Began business career in 2002
Managed fund since 2022
Other Accounts the Portfolio Managers are Managing
The table below indicates, for each portfolio manager, information about the accounts over which the portfolio manager has day-to-day investment responsibility. All information on the number of accounts and total assets in the table is as of October 31, 2022. For purposes of the table, "Other Pooled Investment Vehicles" may include investment partnerships and group trusts, and "Other Accounts" may include separate accounts for institutions or individuals, insurance company general or separate accounts, pension funds and other similar institutional accounts.
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Jeffrey N. |
| 16 |
| 31,788 |
| 36 |
| 7,601 |
| 19 |
| 10,050 |
Given, CFA |
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Howard C. |
| 15 |
| 31,585 |
| 37 |
| 7,601 |
| 19 |
| 10,050 |
Greene, |
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| Number | Total | Number | Total | Number | Total |
| of | Assets | of | Assets | of | Assets |
| Accounts | $Million | Accounts | $Million | Accounts | $Million |
Connor | 16 | 35,318 | 29 | 5,414 | 19 | 10,050 |
Minnaar, |
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Number and value of accounts within the total accounts that are subject to a performance-based advisory fee: 0
Conflicts of Interest. When a portfolio manager is responsible for the management of more than one account, the potential arises for the portfolio manager to favor one account over another. The principal types of potential conflicts of interest that may arise are discussed below. For the reasons outlined below, the Fund does not believe that any material conflicts are likely to arise out of a portfolio manager's responsibility for the management of the Fund as well as one or more other accounts. The Advisor and Subadvisor have adopted procedures that are intended to monitor compliance with the policies referred to in the following paragraphs. Generally, the risks of such conflicts of interests are increased to the extent that a portfolio manager has a financial incentive to favor one account over another. The Advisor and Subadvisor have structured their compensation arrangements in a manner that is intended to limit such potential for conflicts of interests. See "Compensation of Portfolio Managers" below.
•A portfolio manager could favor one account over another in allocating new investment opportunities that have limited supply, such as initial public offerings and private placements. If, for example, an initial public offering that was expected to appreciate in value significantly shortly after the offering was allocated to a single account, that account may be expected to have better investment performance than other accounts that did not receive an allocation on the initial public offering. The Subadvisor has policies that require a portfolio manager to allocate such investment opportunities in an equitable manner and generally to allocate such investments proportionately among all accounts with similar investment objectives.
•A portfolio manager could favor one account over another in the order in which trades for the accounts are placed. If a portfolio manager determines to purchase a security for more than one account in an aggregate amount that may influence the market price of the security, accounts that purchased or sold the security first may receive a more favorable price than accounts that made subsequent transactions. The less liquid the market for the security or the greater the percentage that the proposed aggregate purchases or sales represent of average daily trading volume, the greater the potential for accounts that make subsequent purchases or sales to receive a less favorable price. When a portfolio manager intends to trade the same security for more than one account, the policies of the Subadvisor generally require that such trades be "bunched," which means that the trades for the individual accounts are aggregated and each account receives the same price. There are some types of accounts as to which bunching may not be possible for contractual reasons (such as directed brokerage arrangements). Circumstances may also arise where the trader believes that bunching the orders may not result in the best possible price. Where those accounts or circumstances are involved, the Subadvisor will place the order in a manner intended to result in as favorable a price as possible for such client.
•A portfolio manager could favor an account if the portfolio manager's compensation is tied to the performance of that account rather than all accounts managed by the portfolio
manager. If, for example, the portfolio manager receives a bonus based upon the performance of certain accounts relative to a benchmark while other accounts are disregarded for this purpose, the portfolio manager will have a financial incentive to seek to have the accounts that determine the portfolio manager's bonus achieve the best possible performance to the possible detriment of other accounts. Similarly, if the Subadvisor receives a performance-based advisory fee, the portfolio manager may favor that account, whether or not the performance of that account directly determines the portfolio manager's compensation. The investment performance on specific accounts is not a factor in determining the portfolio manager's compensation. See "Compensation of Portfolio Managers" below. Neither the Advisor nor the Subadvisor receives a performance-based fee with respect to any of the accounts managed by the portfolio managers.
•A portfolio manager could favor an account if the portfolio manager has a beneficial interest in the account, in order to benefit a large client or to compensate a client that had poor returns. For example, if the portfolio manager held an interest in an investment partnership that was one of the accounts managed by the portfolio manager, the portfolio manager would have an economic incentive to favor the account in which the portfolio manager held an interest. The Subadvisor imposes certain trading restrictions and reporting requirements for accounts in which a portfolio manager or certain family members have a personal interest in order to confirm that such accounts are not favored over other accounts.
•If the different accounts have materially and potentially conflicting investment objectives or strategies, a conflict of interest may arise. For example, if a portfolio manager purchases a security for one account and sells the same security short for another account, such trading pattern could disadvantage either the account that is long or short. In making portfolio manager assignments, the Subadvisor seeks to avoid such potentially conflicting situations. However, where a portfolio manager is responsible for accounts with differing investment objectives and policies, it is possible that the portfolio manager will conclude that it is in the best interest of one account to sell a portfolio security while another account continues to hold or increase the holding in such security.
Compensation of Portfolio Managers. The Subadvisor has adopted a system of compensation for portfolio managers and others involved in the investment process that is applied systematically among investment professionals. At the Subadvisor, the structure of compensation of investment professionals is currently composed of the following basic components: base salary and short- and long-term incentives. The following describes each component of the compensation package for the individuals identified as a portfolio manager for the Funds.
•Base salary. Base compensation is fixed and normally reevaluated on an annual basis. The Subadvisor seeks to set compensation at market rates, taking into account the experience and responsibilities of the investment professional.
•Incentives. Only investment professionals are eligible to participate in the short-and long-term incentive plan. Under the plan, investment professionals are eligible for an annual cash award. The plan is intended to provide a competitive level of annual bonus compensation that is tied to the investment professional achieving superior investment performance and aligns the financial incentives of the Subadvisor and the investment professional. Any bonus under the plan is completely discretionary, with a maximum annual bonus that may be well in excess of base salary. Payout of a portion of this bonus may be deferred for up to five years. While the amount of any bonus is discretionary, the following factors are generally used in determining bonuses under the plan:
•Investment Performance: The investment performance of all accounts managed by the investment professional over one, three and five-year periods are considered. With respect to fixed income accounts, relative yields are also used to measure performance. The pre-tax performance of each account is measured relative to an appropriate benchmark and universe as identified in the table below.
•Financial Performance: The profitability of the Subadvisor and its parent company are also considered in determining bonus awards.
•Non-Investment Performance: To a lesser extent, intangible contributions, including the investment professional's support of client service and sales activities, new fund/strategy idea generation, professional growth and development, and management, where applicable, are also evaluated when determining bonus awards.
•In addition to the above, compensation may also include a revenue component for an investment team derived from a number of factors including, but not limited to client assets under management, investment performance, and firm metrics.
•Manulife Equity Awards. A limited number of senior investment professionals may receive options to purchase shares of Manulife Financial stock. Generally, such option would permit the investment professional to purchase a set amount of stock at the market price on the date of grant. The option can be exercised for a set period (normally a number of years or until termination of employment) and the investment professional would exercise the option if the market value of Manulife Financial stock increases. Some investment professionals may receive restricted stock grants, where the investment professional is entitled to receive the stock at no or nominal cost, provided that the stock is forgone if the investment professional's employment is terminated prior to a vesting date.
•Deferred Incentives. Investment professionals may receive deferred incentives which are fully invested in strategies managed by the team/individuals as well as other Manulife Asset Management strategies.
The Subadvisor also permits investment professionals to participate on a voluntary basis in a deferred compensation plan, under which the investment professional may elect on an annual basis to defer receipt of a portion of their compensation until retirement. Participation in the plan is voluntary.
Share Ownership by Portfolio Managers. The following table indicates as of October 31, 2022, the value of shares beneficially owned by the portfolio managers in the Fund.
| Range of Beneficial | |
Portfolio Manager | Ownership in the Fund | |
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Jeffrey N. Given, CFA | $1-10,000 | |
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Howard C. Greene, | $1-$10,000 | |
CFA | ||
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Connor Minnaar, CFA | $0 | |
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ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
(a)Not applicable.
(b) REGISTRANT PURCHASES OF EQUITY SECURITIES
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| Average | Total number of | Maximum number of |
| Total number of | shares purchased as | shares that may yet | |
| price per | part of publicly | be purchased under | |
Period | shares purchased | share | announced plans* | the plans* |
Nov-21 | - | - | - | 1,164,659 |
Dec-22 | - | - | - | 1,164,659 |
Jan-22 | - | - | - | 1,164,659 |
Feb-22 | - | - | - | 1,164,659 |
Mar-22 | - | - | - | 1,164,659 |
Apr-22 | - | - | - | 1,164,659 |
May-22 | - | - | - | 1,164,659 |
Jun-22 | - | - | - | 1,164,659 |
Jul-22 | - | - | - | 1,164,659 |
Aug-22 | - | - | - | 1,164,659 |
Sep-22 | - | - | - | 1,164,659 |
Oct-22 | - | - | - | 1,164,659 |
Total | - | - |
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*On March 12, 2015, the Board of Trustees approved a share repurchase plan, which is subsequently reviewed by the Board of Trustees each year in December. Under the current share repurchase plan, the Fund may purchase in the open market, up to 10% of its outstanding common shares as of December 31, 2021. The current share repurchase plan will remain in effect between January 1, 2022 to December 31, 2022.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
(a)The registrant has adopted procedures by which shareholders may recommend nominees to the registrant's Board of Trustees. A copy of the procedures is filed as an exhibit to this Form N-CSR. See attached "John Hancock Funds – Nominating and Governance Committee Charter".
ITEM 11. CONTROLS AND PROCEDURES.
(a)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.
The Fund did not participate directly in securities lending activities. See Note 7 to the financial statements in Item 1.
ITEM 13. EXHIBITS.
(a)(1) Code of Ethics for Covered Officers is attached.
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 Income Securities Trust
By: | /s/ Andrew Arnott |
| ------------------------------ |
| Andrew Arnott |
| President |
Date: | December 14, 2022 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ Andrew Arnott |
| ------------------------------- |
| Andrew Arnott |
| President |
Date: | December 14, 2022 |
By: | Charles A. Rizzo |
| -------------------------------- |
| Charles A. Rizzo |
| Chief Financial Officer |
Date: | December 14, 2022 |