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- 05979
John Hancock California Tax-Free Income Fund (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: | May 31 |
Date of reporting period: | May 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 CALIFORNIA MUNICIPAL BOND FUND | 1 |
2 | JOHN HANCOCK CALIFORNIA MUNICIPAL BOND FUND | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK CALIFORNIA MUNICIPAL BOND FUND | 3 |
4 | JOHN HANCOCK CALIFORNIA MUNICIPAL BOND FUND | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK CALIFORNIA MUNICIPAL BOND FUND | 5 |
6 | JOHN HANCOCK CALIFORNIA MUNICIPAL BOND FUND | ANNUAL REPORT |
Average annual total returns (%) with maximum sales charge | Cumulative total returns (%) with maximum sales charge | SEC 30-day yield (%) subsidized | SEC 30-day yield (%) unsubsidized† | Tax- equivalent subsidized yield (%)† | |||||
1-year | 5-year | 10-year | 5-year | 10-year | as of 5-31-22 | as of 5-31-22 | as of 5-31-22 | ||
Class A | -9.04 | 1.10 | 2.41 | 5.60 | 26.83 | 2.47 | 2.46 | 5.38 | |
Class C | -6.89 | 1.16 | 2.06 | 5.92 | 22.59 | 1.84 | 1.74 | 4.01 | |
Class I1,2 | -5.11 | 2.07 | 2.91 | 10.79 | 33.28 | 2.72 | 2.72 | 5.93 | |
Class R61,2 | -5.08 | 2.09 | 2.91 | 10.91 | 33.26 | 2.75 | 2.75 | 5.99 | |
Index 1†† | -6.90 | 1.68 | 2.73 | 8.68 | 30.89 | — | — | — | |
Index 2†† | -6.79 | 1.78 | 2.54 | 9.21 | 28.53 | — | — | — |
Class A | Class C | Class I | Class R6 | |
Gross (%) | 0.85 | 1.70 | 0.70 | 0.66 |
Net (%) | 0.84 | 1.59 | 0.69 | 0.65 |
ANNUAL REPORT | JOHN HANCOCK CALIFORNIA MUNICIPAL BOND FUND | 7 |
Start date | With maximum sales charge ($) | Without sales charge ($) | Index 1 ($) | Index 2 ($) | |
Class C3 | 5-31-12 | 12,259 | 12,259 | 13,089 | 12,853 |
Class I1,2 | 5-31-12 | 13,328 | 13,328 | 13,089 | 12,853 |
Class R61,2 | 5-31-12 | 13,326 | 13,326 | 13,089 | 12,853 |
1 | Class I shares and Class R6 shares were first offered on 2-13-17 and 8-30-17, respectively. Returns prior to these dates are those of Class A shares that have not been adjusted for class-specific expenses; otherwise, returns would vary. |
2 | For certain types of investors, as described in the fund’s prospectus. |
3 | The contingent deferred sales charge is not applicable. |
8 | JOHN HANCOCK CALIFORNIA MUNICIPAL BOND FUND | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK CALIFORNIA MUNICIPAL BOND FUND | 9 |
Account value on 12-1-2021 | Ending value on 5-31-2022 | Expenses paid during period ended 5-31-20221 | Annualized expense ratio | ||
Class A | Actual expenses/actual returns | $1,000.00 | $939.60 | $3.82 | 0.79% |
Hypothetical example | 1,000.00 | 1,021.00 | 3.98 | 0.79% | |
Class C | Actual expenses/actual returns | 1,000.00 | 936.10 | 7.43 | 1.54% |
Hypothetical example | 1,000.00 | 1,017.30 | 7.75 | 1.54% | |
Class I | Actual expenses/actual returns | 1,000.00 | 941.20 | 3.10 | 0.64% |
Hypothetical example | 1,000.00 | 1,021.70 | 3.23 | 0.64% | |
Class R6 | Actual expenses/actual returns | 1,000.00 | 940.50 | 2.95 | 0.61% |
Hypothetical example | 1,000.00 | 1,021.90 | 3.07 | 0.61% |
1 | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). |
10 | JOHN HANCOCK CALIFORNIA MUNICIPAL BOND FUND | ANNUAL REPORT |
Rate (%) | Maturity date | Par value^ | Value | ||
Municipal bonds 100.9% | $221,579,118 | ||||
(Cost $222,615,884) | |||||
California 99.0% | 217,432,111 | ||||
ABAG Finance Authority for Nonprofit Corporations Sharp HealthCare, Series A | 5.000 | 08-01-43 | 2,000,000 | 2,049,666 | |
Antelope Valley Community College District Election 2016, Series B, GO | 4.000 | 08-01-45 | 500,000 | 512,070 | |
Bay Area Water Supply & Conservation Agency Capital Cost Recovery (A) | 5.000 | 10-01-34 | 1,500,000 | 1,720,226 | |
Burbank Unified School District Convertible Capital Appreciation Election 2013, GO (0.000% to 8-1-23, then 4.500% thereafter) | 0.000 | 08-01-37 | 1,770,000 | 1,816,901 | |
California Community Choice Financing Authority Clean Energy Project Revenue, Series A | 4.000 | 10-01-52 | 1,250,000 | 1,290,690 | |
California Community Housing Agency Stoneridge Apartments, Series A (B) | 4.000 | 02-01-56 | 600,000 | 513,998 | |
California Community Housing Agency Verdant at Green Valley Project, Series A (B) | 5.000 | 08-01-49 | 1,000,000 | 986,763 | |
California County Tobacco Securitization Agency Fresno County Funding Corp. | 6.000 | 06-01-35 | 1,305,000 | 1,305,734 | |
California County Tobacco Securitization Agency Kern County Tobacco Funding Corp. | 5.000 | 06-01-40 | 1,500,000 | 1,523,046 | |
California County Tobacco Securitization Agency Merced County Tobacco Funding Corp. | 5.000 | 06-01-50 | 485,000 | 507,546 | |
California County Tobacco Securitization Agency Tobacco Settlement Revenue, Series A | 4.000 | 06-01-49 | 1,000,000 | 1,002,718 | |
California Educational Facilities Authority Pepperdine University | 5.000 | 10-01-49 | 1,500,000 | 1,664,063 | |
California Educational Facilities Authority University of Redlands, Series A | 5.000 | 10-01-35 | 1,000,000 | 1,043,112 | |
California Enterprise Development Authority Academy for Academic Excellence Project, Series A (B) | 5.000 | 07-01-40 | 430,000 | 438,478 | |
California Enterprise Development Authority Academy for Academic Excellence Project, Series A (B) | 5.000 | 07-01-50 | 350,000 | 353,895 | |
California Enterprise Development Authority Academy for Academic Excellence Project, Series A (B) | 5.000 | 07-01-55 | 240,000 | 241,809 | |
California Health Facilities Financing Authority Children’s Hospital, Series A | 5.000 | 08-15-47 | 1,000,000 | 1,051,089 | |
California Health Facilities Financing Authority City of Hope Obligated Group | 4.000 | 11-15-45 | 1,000,000 | 1,002,237 | |
California Health Facilities Financing Authority Commonspirit Health, Series A | 4.000 | 04-01-37 | 1,750,000 | 1,760,716 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK CALIFORNIA MUNICIPAL BOND FUND | 11 |
Rate (%) | Maturity date | Par value^ | Value | ||
California (continued) | |||||
California Health Facilities Financing Authority El Camino Hospital | 5.000 | 02-01-42 | 1,000,000 | $1,073,846 | |
California Health Facilities Financing Authority El Camino Hospital | 5.000 | 02-01-47 | 1,425,000 | 1,517,177 | |
California Health Facilities Financing Authority Lucile Packard Children’s Hospital, Series A | 5.000 | 08-15-43 | 1,000,000 | 1,039,871 | |
California Health Facilities Financing Authority Lucile Packard Children’s Hospital, Series B | 5.000 | 08-15-55 | 1,000,000 | 1,057,429 | |
California Housing Finance Agency Series A | 4.250 | 01-15-35 | 959,421 | 970,918 | |
California Infrastructure & Economic Development Bank Sustainability Bonds, California Science Center Phase III | 4.000 | 05-01-36 | 1,000,000 | 1,032,726 | |
California Municipal Finance Authority Channing House Project, Series A (C) | 4.000 | 05-15-40 | 1,500,000 | 1,525,574 | |
California Municipal Finance Authority Community Facilities District, No. 2020-6 (A) | 5.000 | 09-01-42 | 500,000 | 514,551 | |
California Municipal Finance Authority Humangood California Obligated | 5.000 | 10-01-35 | 350,000 | 382,511 | |
California Municipal Finance Authority HumanGood Obligated Group, Series A | 5.000 | 10-01-44 | 1,000,000 | 1,034,243 | |
California Municipal Finance Authority Paradise Valley Estates Project, Series A (C) | 5.000 | 01-01-49 | 1,500,000 | 1,636,170 | |
California Municipal Finance Authority Retirement Housing Foundation Obligation Group, Series A | 5.000 | 11-15-31 | 1,500,000 | 1,625,664 | |
California Municipal Finance Authority West Village Student Housing Project at UC Davis (C) | 4.000 | 05-15-48 | 1,565,000 | 1,474,280 | |
California Municipal Finance Authority Wineville School Project, Series A (C) | 5.000 | 10-01-42 | 2,000,000 | 2,126,052 | |
California Pollution Control Financing Authority San Diego County Water Authority Desalination Project Pipeline (B) | 5.000 | 07-01-39 | 1,000,000 | 1,060,293 | |
California Pollution Control Financing Authority San Diego County Water Authority Desalination Project Pipeline (B) | 5.000 | 11-21-45 | 1,500,000 | 1,572,714 | |
California Pollution Control Financing Authority Waste Management, Inc., Series A1, AMT | 3.375 | 07-01-25 | 1,000,000 | 1,003,909 | |
California Pollution Control Financing Authority Waste Management, Inc., Series A3, AMT | 4.300 | 07-01-40 | 4,675,000 | 4,819,065 | |
California Public Finance Authority Enso Village Project, Series A (B) | 5.000 | 11-15-46 | 400,000 | 400,587 | |
California Public Finance Authority Enso Village Project, Series A (B) | 5.000 | 11-15-51 | 725,000 | 720,555 | |
California Public Finance Authority Excelsior Charter Schools Project, Series A (B) | 5.000 | 06-15-50 | 500,000 | 501,313 | |
California Public Finance Authority Excelsior Charter Schools Project, Series A (B) | 5.000 | 06-15-55 | 500,000 | 500,210 |
12 | JOHN HANCOCK CALIFORNIA MUNICIPAL BOND FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
California (continued) | |||||
California Public Finance Authority Henry Mayo Newhall Hospital | 5.000 | 10-15-47 | 2,000,000 | $2,062,831 | |
California Public Finance Authority Trinity Classical Academy, Series A (B) | 5.000 | 07-01-44 | 110,000 | 98,863 | |
California Public Finance Authority Trinity Classical Academy, Series A (B) | 5.000 | 07-01-54 | 325,000 | 280,640 | |
California School Finance Authority Aspire Public School (B) | 5.000 | 08-01-46 | 110,000 | 119,783 | |
California School Finance Authority Aspire Public School (B) | 5.000 | 08-01-46 | 1,165,000 | 1,200,689 | |
California School Finance Authority Classical Academies Oceanside (B) | 5.000 | 10-01-42 | 500,000 | 518,690 | |
California School Finance Authority College Housing Revenue | 4.000 | 11-01-41 | 1,000,000 | 914,799 | |
California School Finance Authority College Housing Revenue | 4.000 | 11-01-55 | 580,000 | 493,741 | |
California School Finance Authority Granada Hills Charter High School Obligated Group (B) | 5.000 | 07-01-43 | 1,000,000 | 1,025,870 | |
California School Finance Authority John Adams Academies, Series A (B) | 5.125 | 07-01-62 | 1,000,000 | 997,457 | |
California School Finance Authority KIPP LA Project, Series A (B) | 5.000 | 07-01-47 | 1,500,000 | 1,561,676 | |
California State Public Works Board Various Capital Projects, Series A | 5.000 | 08-01-36 | 1,000,000 | 1,179,209 | |
California State Public Works Board Various Correctional Facilities, Series A | 5.000 | 09-01-39 | 2,500,000 | 2,633,640 | |
California Statewide Communities Development Authority Adventist Health System, Series A | 5.000 | 03-01-48 | 1,885,000 | 2,009,135 | |
California Statewide Communities Development Authority CHF Irvine LLC | 5.000 | 05-15-40 | 1,485,000 | 1,553,134 | |
California Statewide Communities Development Authority Emanate Health, Series A | 4.000 | 04-01-45 | 250,000 | 247,595 | |
California Statewide Communities Development Authority Front Porch Communities & Services | 3.000 | 04-01-37 | 2,000,000 | 1,780,351 | |
California Statewide Communities Development Authority Front Porch Communities and Services, Series A | 5.000 | 04-01-47 | 815,000 | 848,827 | |
California Statewide Communities Development Authority Infrastructure Program Revenue, Series B | 5.000 | 09-02-44 | 1,000,000 | 1,023,699 | |
California Statewide Communities Development Authority John Muir Health, Series A | 4.000 | 08-15-46 | 1,125,000 | 1,127,505 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK CALIFORNIA MUNICIPAL BOND FUND | 13 |
Rate (%) | Maturity date | Par value^ | Value | ||
California (continued) | |||||
California Statewide Communities Development Authority Redlands Community Hospital | 5.000 | 10-01-46 | 2,000,000 | $2,112,012 | |
California Statewide Communities Development Authority Redwoods Project (C) | 5.375 | 11-15-44 | 1,500,000 | 1,578,636 | |
California Statewide Communities Development Authority Statewide Community Infrastructure Program Revenue, Series A | 4.000 | 09-02-51 | 1,000,000 | 910,369 | |
California Statewide Financing Authority Tobacco Settlement, Series A | 6.000 | 05-01-37 | 2,400,000 | 2,443,219 | |
California Statewide Financing Authority Tobacco Settlement, Series B | 6.000 | 05-01-37 | 2,880,000 | 2,931,862 | |
Cascade Union Elementary School District Election 2016, Series A, GO (C) | 3.750 | 08-01-46 | 250,000 | 248,387 | |
Chino Valley Unified School District Capital Appreciation Election 2016, Series C, GO (D) | 3.980 | 08-01-36 | 250,000 | 142,645 | |
City of Belmont Library Project, Series A (C) | 5.750 | 08-01-24 | 635,000 | 663,243 | |
City of Irvine Community Facilities District, No. 2013-3 Great Park | 5.000 | 09-01-49 | 2,000,000 | 2,060,329 | |
City of Long Beach Alamitos Bay Marina Project | 5.000 | 05-15-45 | 1,000,000 | 1,029,684 | |
City of Long Beach Community Facilities District 6-Pike Project | 6.250 | 10-01-26 | 1,540,000 | 1,543,506 | |
City of Long Beach Harbor Revenue, Series A | 5.000 | 05-15-49 | 2,000,000 | 2,211,202 | |
City of Long Beach CA Airport System Revenue Series C, AMT (A)(C) | 5.000 | 06-01-42 | 500,000 | 551,522 | |
City of Los Angeles Community Facilities District Cascades Business Park | 6.400 | 09-01-22 | 85,000 | 85,667 | |
City of Los Angeles Department of Airports Los Angeles International Airport, Series C, AMT | 5.000 | 05-15-35 | 1,000,000 | 1,112,813 | |
City of Los Angeles Department of Airports Los Angeles International Airport, Series D, AMT | 4.000 | 05-15-44 | 2,000,000 | 2,012,761 | |
City of Sacramento Greenbriar Community Facilities District No. 2018-3 | 4.000 | 09-01-50 | 600,000 | 558,500 | |
City of San Clemente Community Facilities District, No. 2006-1 | 5.000 | 09-01-46 | 1,955,000 | 2,023,456 | |
City of San Mateo Community Facilities District, No. 2008-1 Bay Meadows | 5.500 | 09-01-44 | 2,000,000 | 2,009,131 | |
City of Vernon Electric System Revenue Series 2022-A | 5.000 | 08-01-40 | 360,000 | 391,356 |
14 | JOHN HANCOCK CALIFORNIA MUNICIPAL BOND FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
California (continued) | |||||
City of Vernon Electric System Revenue Series 2022-A | 5.000 | 08-01-41 | 400,000 | $434,119 | |
City of Victorville CA Electric Revenue Series A | 5.000 | 05-01-34 | 500,000 | 553,132 | |
City of Victorville CA Electric Revenue Series A | 5.000 | 05-01-35 | 540,000 | 596,387 | |
City of Victorville CA Electric Revenue Series A | 5.000 | 05-01-36 | 500,000 | 551,467 | |
Coachella Valley Water District Stormwater System Revenue Certificates Participation, Series A | 5.000 | 08-01-35 | 920,000 | 1,095,736 | |
Coachella Valley Water District Stormwater System Revenue Certificates Participation, Series A | 5.000 | 08-01-36 | 975,000 | 1,159,606 | |
College of the Sequoias Tulare Area Improvement District No. 3 Election of 2008, Series B, GO (C)(D) | 3.749 | 08-01-40 | 2,890,000 | 1,466,320 | |
County of Sacramento Airport System Revenue | 4.000 | 07-01-39 | 1,000,000 | 1,042,911 | |
CSCDA Community Improvement Authority Altana Glendale, Series A-2 (B) | 4.000 | 10-01-56 | 1,000,000 | 878,155 | |
CSCDA Community Improvement Authority Essential Housing Revenue Parallel Anaheim, Series A (B) | 4.000 | 08-01-56 | 1,000,000 | 886,117 | |
CSCDA Community Improvement Authority The Link Glendale, Series A2 (B) | 4.000 | 07-01-56 | 600,000 | 518,042 | |
Del Mar Union School District Election 2018, Series B, GO | 4.000 | 08-01-46 | 1,000,000 | 1,034,554 | |
Del Mar Union School District Election 2018, Series B, GO | 5.000 | 08-01-33 | 270,000 | 326,844 | |
Del Mar Union School District Election 2018, Series B, GO | 5.000 | 08-01-34 | 225,000 | 271,062 | |
East Bay Municipal Utility District Water System Revenue Refunding, Series B-2 (A) | 5.000 | 06-01-34 | 1,000,000 | 1,225,295 | |
Foothill-Eastern Transportation Corridor Agency Highway Revenue Tolls, Series A | 5.750 | 01-15-46 | 3,000,000 | 3,190,188 | |
Foothill-Eastern Transportation Corridor Agency Refunding Subordinated, Series B-2 (C) | 3.500 | 01-15-53 | 1,565,000 | 1,465,129 | |
Golden State Tobacco Securitization Corp. California Tobacco Settlement Revenue, Series A1 | 5.000 | 06-01-31 | 1,000,000 | 1,160,452 | |
Golden State Tobacco Securitization Corp. Series A-1 | 5.000 | 06-01-47 | 1,610,000 | 1,610,000 | |
Golden State Tobacco Securitization Corp. Tobacco Settlement Revenue, Series A | 5.000 | 06-01-40 | 2,250,000 | 2,447,436 | |
Golden State Tobacco Securitization Corp. Tobacco Settlement Revenue, Series A | 5.000 | 06-01-40 | 2,750,000 | 2,991,311 | |
Hastings Campus Housing Finance Authority California Campus Housing Revenue, Series A | 5.000 | 07-01-45 | 1,000,000 | 1,057,113 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK CALIFORNIA MUNICIPAL BOND FUND | 15 |
Rate (%) | Maturity date | Par value^ | Value | ||
California (continued) | |||||
Inglewood Unified School District Series A, GO (C) | 4.000 | 08-01-36 | 555,000 | $568,916 | |
Inglewood Unified School District Series A, GO (C) | 4.000 | 08-01-37 | 445,000 | 455,646 | |
Inland Valley Development Agency Series A | 5.000 | 09-01-44 | 2,500,000 | 2,609,300 | |
Jurupa Community Services District Community Facilities District No. 31 Eastvale Project (A)(C) | 4.000 | 09-01-38 | 1,045,000 | 1,063,164 | |
Jurupa Community Services District Community Facilities District No. 31 Eastvale Project (A)(C) | 4.000 | 09-01-42 | 1,365,000 | 1,389,228 | |
Liberty Union High School District Election 2016, Series B, GO | 3.000 | 08-01-41 | 1,670,000 | 1,528,793 | |
Long Beach Bond Finance Authority Lease Revenue | 5.000 | 08-01-29 | 475,000 | 545,569 | |
Long Beach Bond Finance Authority Lease Revenue | 5.000 | 08-01-30 | 400,000 | 464,781 | |
Long Beach Bond Finance Authority Lease Revenue | 5.000 | 08-01-31 | 325,000 | 381,851 | |
Los Angeles Community College District/CA Election 2008, Series K, GO | 3.000 | 08-01-39 | 1,180,000 | 1,090,435 | |
Los Angeles County Public Works Financing Authority Series D | 5.000 | 12-01-45 | 2,000,000 | 2,142,243 | |
Los Angeles County Regional Financing Authority Montecedro, Inc. Project, Series A (C) | 5.000 | 11-15-44 | 1,355,000 | 1,370,580 | |
Los Angeles Department of Water & Power Power Systems Revenue, Series D | 5.000 | 07-01-44 | 1,000,000 | 1,052,500 | |
Los Angeles Unified School District Series RYQ, GO | 4.000 | 07-01-44 | 1,500,000 | 1,548,412 | |
Lower Tule River Irrigation District Series A | 5.000 | 08-01-28 | 875,000 | 995,108 | |
Marin Healthcare District Election of 2013, GO | 4.000 | 08-01-45 | 1,000,000 | 1,011,380 | |
Moreno Valley Unified School District/CA Series C, GO (C) | 3.000 | 08-01-50 | 2,000,000 | 1,728,668 | |
Mount Diablo Unified School District Series B, GO | 4.000 | 08-01-33 | 1,300,000 | 1,406,043 | |
M-S-R Energy Authority Natural Gas Revenue, Series B | 6.500 | 11-01-39 | 1,500,000 | 1,919,110 | |
Norman Y. Mineta San Jose International Airport SJC Series A, AMT | 5.000 | 03-01-47 | 1,500,000 | 1,577,150 | |
Oakland Unified School District Series A, GO | 5.000 | 08-01-40 | 1,500,000 | 1,638,224 | |
Orange County Community Facilities District 2017-1 Esencia Village, Series A | 5.000 | 08-15-47 | 2,000,000 | 2,124,116 | |
Pacifica School District Series C, GO (C)(D) | 2.763 | 08-01-26 | 1,000,000 | 891,111 |
16 | JOHN HANCOCK CALIFORNIA MUNICIPAL BOND FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
California (continued) | |||||
Perris Union High School District Series A, GO (C) | 4.000 | 09-01-43 | 2,000,000 | $2,068,491 | |
Port of Los Angeles Series A, AMT | 5.000 | 08-01-44 | 2,000,000 | 2,077,282 | |
Redwood City Public Facilities & Infrastructure Authority Veterans Memorial Building Senior Center | 3.000 | 06-01-51 | 2,535,000 | 2,167,624 | |
Regents of the University of California Medical Center Pooled Revenue Series P | 4.000 | 05-15-43 | 2,000,000 | 2,071,310 | |
River Islands Public Financing Authority Community Facilities District, No. 2003-1 | 5.500 | 09-01-45 | 750,000 | 767,553 | |
River Islands Public Financing Authority Community Facilities District, No. 2003-1, Series A | 5.000 | 09-01-48 | 1,250,000 | 1,320,181 | |
River Islands Public Financing Authority Lathrop Irrigation District Electric Revenue (C) | 4.000 | 09-01-35 | 1,125,000 | 1,162,842 | |
Riverside County Infrastructure Financing Authority Series A | 5.000 | 11-01-28 | 525,000 | 605,903 | |
Riverside County Transportation Commission Series A | 5.750 | 06-01-48 | 1,000,000 | 1,041,729 | |
San Diego County Regional Airport Authority Series B, AMT | 4.000 | 07-01-39 | 1,320,000 | 1,329,156 | |
San Diego Public Facilities Financing Authority Capital Improvement Projects, Series A | 5.000 | 10-15-44 | 1,000,000 | 1,065,202 | |
San Diego Unified School District Series I, GO (D) | 4.085 | 07-01-39 | 1,250,000 | 624,504 | |
San Francisco Bay Area Rapid Transit District Election 2016, Series C1, GO | 3.000 | 08-01-50 | 1,500,000 | 1,329,202 | |
San Francisco Bay Area Rapid Transit District Election of 2016, Series D1, GO (A)(E) | 4.250 | 08-01-52 | 3,000,000 | 3,074,378 | |
San Francisco City & County Airport Commission International Airport Revenue, Second Series 2020-B | 4.000 | 05-01-37 | 1,215,000 | 1,270,523 | |
San Francisco City & County Airport Commission Special Facilities Lease, SFO Fuel Company LLC, Series A, AMT | 5.000 | 01-01-47 | 2,000,000 | 2,146,440 | |
San Francisco City & County Airport Commission (California) Series E, AMT | 5.000 | 05-01-50 | 1,500,000 | 1,614,038 | |
San Francisco City & County Public Utilities Commission Power Revenue Green Bonds, Series A | 5.000 | 11-01-45 | 1,500,000 | 1,591,631 | |
San Francisco City & County Redevelopment Successor Agency Department of General Services Lease, No. 6, Mission Bay South, Series A | 5.150 | 08-01-35 | 1,250,000 | 1,253,353 | |
San Francisco City & County Redevelopment Successor Agency Mission Bay Project, Series A | 5.000 | 08-01-43 | 1,000,000 | 1,052,503 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK CALIFORNIA MUNICIPAL BOND FUND | 17 |
Rate (%) | Maturity date | Par value^ | Value | ||
California (continued) | |||||
San Joaquin Hills Transportation Corridor Agency Highway Revenue Tolls, Series A | 5.000 | 01-15-44 | 2,500,000 | $2,688,848 | |
San Joaquin Hills Transportation Corridor Agency Toll Road Revenue, Series A | 4.000 | 01-15-50 | 1,000,000 | 989,839 | |
San Joaquin Regional Rail Commission Ace Maintenance Facility Project | 4.000 | 05-01-37 | 490,000 | 504,902 | |
San Joaquin Regional Rail Commission Ace Maintenance Facility Project | 4.000 | 05-01-38 | 460,000 | 474,165 | |
San Joaquin Regional Rail Commission Ace Maintenance Facility Project | 4.000 | 05-01-39 | 730,000 | 752,744 | |
San Mateo Foster City Public Financing Authority Clean Water Program | 5.000 | 08-01-49 | 2,000,000 | 2,231,711 | |
Santa Ana Financing Authority Police Administration & Holding Facility, Series A (C) | 6.250 | 07-01-24 | 3,180,000 | 3,327,802 | |
Santa Ana Financing Authority Prerefunded, Police Administration & Holding Facility, Series A (C) | 6.250 | 07-01-24 | 3,180,000 | 3,334,990 | |
Santa Margarita Water District Community Facilities District, No. 2013-1 | 5.625 | 09-01-43 | 745,000 | 761,718 | |
Santa Maria Joint Union High School District Election 2016, GO | 3.000 | 08-01-41 | 1,000,000 | 898,251 | |
Santa Monica Community College District Series B, GO | 4.000 | 08-01-45 | 2,000,000 | 2,064,970 | |
South Orange County Public Financing Authority Series A | 5.000 | 08-15-34 | 450,000 | 462,498 | |
South Placer Wastewater Authority California Wastewater Revenue Refunding | 5.000 | 11-01-34 | 430,000 | 518,586 | |
Southern California Public Power Authority Apex Power Project, Series A | 5.000 | 07-01-38 | 1,000,000 | 1,054,587 | |
Southern California Public Power Authority Natural Gas Project Revenue, Series A | 5.250 | 11-01-26 | 2,000,000 | 2,174,839 | |
Southwestern Community College District Series D, GO | 3.000 | 08-01-41 | 2,000,000 | 1,802,682 | |
State of California Various Purpose, GO | 5.000 | 04-01-32 | 2,000,000 | 2,417,239 | |
Sweetwater Union High School District Ad Valorem Property Tax, GO | 4.000 | 08-01-42 | 500,000 | 501,865 | |
Three Rivers Levee Improvement Authority Special Tax Revenue Refunding Community Facilities District | 4.000 | 09-01-51 | 1,000,000 | 929,230 | |
Transbay Joint Powers Authority Tax Allocation, Series A | 5.000 | 10-01-32 | 345,000 | 396,730 | |
Turlock Irrigation District Electricity, Power & Light Revenues | 5.000 | 01-01-41 | 1,000,000 | 1,134,598 | |
University of California Series AZ | 5.000 | 05-15-48 | 1,500,000 | 1,653,319 | |
Vista Unified School District Series B, GO (A)(C) | 4.250 | 08-01-44 | 1,500,000 | 1,556,797 |
18 | JOHN HANCOCK CALIFORNIA MUNICIPAL BOND FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
California (continued) | |||||
Vista Unified School District Series B, GO (A)(C) | 5.000 | 08-01-42 | 1,000,000 | $1,121,084 | |
West Covina Community Development Commission Successor Agency Fashion Plaza | 6.000 | 09-01-22 | 855,000 | 864,078 | |
William S. Hart Union High School District Community Facilities District, No. 2015-1 | 5.000 | 09-01-47 | 1,000,000 | 1,043,641 | |
Puerto Rico 1.9% | 4,147,007 | ||||
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, Series A-1 (D) | 4.169 | 07-01-31 | 1,500,000 | 1,029,472 | |
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, Series A-1 | 4.750 | 07-01-53 | 1,500,000 | 1,505,403 | |
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, Series A-1 (D) | 5.007 | 07-01-46 | 2,500,000 | 757,554 | |
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, Series A-2 | 4.784 | 07-01-58 | 850,000 | 854,578 | |
Par value^ | Value | ||||
Short-term investments 2.3% | $5,093,000 | ||||
(Cost $5,093,000) | |||||
Repurchase agreement 2.3% | $5,093,000 | ||||
Repurchase Agreement with State Street Corp. dated 5-31-22 at 0.060% to be repurchased at $5,093,008 on 6-1-22, collateralized by $5,828,500 U.S. Treasury Notes, 0.625% due 11-30-27 (valued at $5,194,878) | 5,093,000 | 5,093,000 | |||
Total investments (Cost $227,708,884) 103.2% | $226,672,118 | ||||
Other assets and liabilities, net (3.2%) | (7,003,858) | ||||
Total net assets 100.0% | $219,668,260 |
The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund. | |
^All par values are denominated in U.S. dollars unless otherwise indicated. | |
Security Abbreviations and Legend | |
AMT | Interest earned from these securities may be considered a tax preference item for purpose of the Federal Alternative Minimum Tax. |
GO | General Obligation |
(A) | Security purchased or sold on a when-issued or delayed delivery basis. |
(B) | These securities are exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be resold, normally to qualified institutional buyers, in transactions exempt from registration. |
(C) | Bond is insured by one or more of the companies listed in the insurance coverage table below. |
(D) | Zero coupon bonds are issued at a discount from their principal amount in lieu of paying interest periodically. Rate shown is the effective yield at period end. |
(E) | Security represents the municipal bond held by a trust that issues residual inverse floating rate interests. See Note 2 for more information. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK CALIFORNIA MUNICIPAL BOND FUND | 19 |
Insurance coverage | As a % of total investments |
Build America Mutual Assurance Company | 4.7 |
Assured Guaranty Municipal Corp. | 3.6 |
National Public Finance Guarantee Corp. | 3.4 |
California Mortgage Insurance | 2.7 |
Ambac Financial Group, Inc. | 0.3 |
TOTAL | 14.7 |
20 | JOHN HANCOCK CALIFORNIA MUNICIPAL BOND FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Open contracts | Number of contracts | Position | Expiration date | Notional basis^ | Notional value^ | Unrealized appreciation (depreciation) |
10-Year U.S. Treasury Note Futures | 172 | Short | Sep 2022 | $(20,639,778) | $(20,545,938) | $93,840 |
$93,840 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK CALIFORNIA MUNICIPAL BOND FUND | 21 |
Assets | |
Unaffiliated investments, at value (Cost $227,708,884) | $226,672,118 |
Receivable for futures variation margin | 158,242 |
Cash | 266 |
Collateral held at broker for futures contracts | 400,000 |
Interest receivable | 2,443,136 |
Receivable for fund shares sold | 961,819 |
Other assets | 13,809 |
Total assets | 230,649,390 |
Liabilities | |
Distributions payable | 44,634 |
Payable for delayed delivery securities purchased | 10,524,690 |
Payable for fund shares repurchased | 193,615 |
Payable to affiliates | |
Investment management fees | 99,617 |
Accounting and legal services fees | 9,113 |
Transfer agent fees | 6,663 |
Distribution and service fees | 22,597 |
Trustees’ fees | 63 |
Other liabilities and accrued expenses | 80,138 |
Total liabilities | 10,981,130 |
Net assets | $219,668,260 |
Net assets consist of | |
Paid-in capital | $218,319,929 |
Total distributable earnings (loss) | 1,348,331 |
Net assets | $219,668,260 |
Net asset value per share | |
Based on net asset value and shares outstanding - the fund has an unlimited number of shares authorized with no par value | |
Class A ($180,791,968 ÷ 17,825,507 shares)1 | $10.14 |
Class C ($7,599,299 ÷ 749,217 shares)1 | $10.14 |
Class I ($18,785,523 ÷ 1,851,379 shares) | $10.15 |
Class R6 ($12,491,470 ÷ 1,230,396 shares) | $10.15 |
Maximum offering price per share | |
Class A (net asset value per share ÷ 96%)2 | $10.56 |
1 | Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. |
2 | On single retail sales of less than $100,000. On sales of $100,000 or more and on group sales the offering price is reduced. |
22 | JOHN HANCOCK California Municipal Bond Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Investment income | |
Interest | $7,084,457 |
Expenses | |
Investment management fees | 1,168,561 |
Distribution and service fees | 362,974 |
Accounting and legal services fees | 29,676 |
Transfer agent fees | 82,798 |
Trustees’ fees | 3,258 |
Custodian fees | 22,742 |
State registration fees | 15,558 |
Printing and postage | 7,832 |
Professional fees | 61,997 |
Other | 20,422 |
Total expenses | 1,775,818 |
Less expense reductions | (28,514) |
Net expenses | 1,747,304 |
Net investment income | 5,337,153 |
Realized and unrealized gain (loss) | |
Net realized gain (loss) on | |
Unaffiliated investments | (1,212,043) |
Futures contracts | 2,227,446 |
1,015,403 | |
Change in net unrealized appreciation (depreciation) of | |
Unaffiliated investments | (17,125,294) |
Futures contracts | 93,840 |
(17,031,454) | |
Net realized and unrealized loss | (16,016,051) |
Decrease in net assets from operations | $(10,678,898) |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK California Municipal Bond Fund | 23 |
Year ended 5-31-22 | Year ended 5-31-21 | |
Increase (decrease) in net assets | ||
From operations | ||
Net investment income | $5,337,153 | $5,795,361 |
Net realized gain | 1,015,403 | 2,336,645 |
Change in net unrealized appreciation (depreciation) | (17,031,454) | 5,666,332 |
Increase (decrease) in net assets resulting from operations | (10,678,898) | 13,798,338 |
Distributions to shareholders | ||
From earnings | ||
Class A | (5,835,017) | (4,906,014) |
Class B | — | (2,166)1 |
Class C | (239,541) | (271,132) |
Class I | (497,832) | (371,152) |
Class R6 | (347,902) | (226,204) |
Total distributions | (6,920,292) | (5,776,668) |
From fund share transactions | 22,761,461 | (4,659,984) |
Total increase | 5,162,271 | 3,361,686 |
Net assets | ||
Beginning of year | 214,505,989 | 211,144,303 |
End of year | $219,668,260 | $214,505,989 |
1 | Share class was redesignated during the year. Refer to Note 6 for further details. |
24 | JOHN HANCOCK California Municipal Bond Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS A SHARES Period ended | 5-31-22 | 5-31-21 | 5-31-20 | 5-31-19 | 5-31-18 |
Per share operating performance | |||||
Net asset value, beginning of period | $11.06 | $10.66 | $10.94 | $10.73 | $10.90 |
Net investment income1 | 0.27 | 0.30 | 0.34 | 0.36 | 0.36 |
Net realized and unrealized gain (loss) on investments | (0.84) | 0.40 | (0.20) | 0.22 | (0.16) |
Total from investment operations | (0.57) | 0.70 | 0.14 | 0.58 | 0.20 |
Less distributions | |||||
From net investment income | (0.28) | (0.30) | (0.34) | (0.36) | (0.37) |
From net realized gain | (0.07) | — | (0.08) | (0.01) | — |
Total distributions | (0.35) | (0.30) | (0.42) | (0.37) | (0.37) |
Net asset value, end of period | $10.14 | $11.06 | $10.66 | $10.94 | $10.73 |
Total return (%)2,3 | (5.26) | 6.64 | 1.22 | 5.57 | 1.85 |
Ratios and supplemental data | |||||
Net assets, end of period (in millions) | $181 | $181 | $173 | $176 | $181 |
Ratios (as a percentage of average net assets): | |||||
Expenses before reductions | 0.82 | 0.85 | 0.85 | 0.86 | 0.85 |
Expenses including reductions | 0.81 | 0.84 | 0.84 | 0.85 | 0.84 |
Net investment income | 2.53 | 2.76 | 3.12 | 3.42 | 3.37 |
Portfolio turnover (%) | 17 | 23 | 22 | 22 | 9 |
1 | Based on average daily shares outstanding. |
2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
3 | Does not reflect the effect of sales charges, if any. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK California Municipal Bond Fund | 25 |
CLASS C SHARES Period ended | 5-31-22 | 5-31-21 | 5-31-20 | 5-31-19 | 5-31-18 |
Per share operating performance | |||||
Net asset value, beginning of period | $11.06 | $10.66 | $10.94 | $10.73 | $10.90 |
Net investment income1 | 0.19 | 0.22 | 0.26 | 0.28 | 0.28 |
Net realized and unrealized gain (loss) on investments | (0.84) | 0.40 | (0.20) | 0.22 | (0.16) |
Total from investment operations | (0.65) | 0.62 | 0.06 | 0.50 | 0.12 |
Less distributions | |||||
From net investment income | (0.20) | (0.22) | (0.26) | (0.28) | (0.29) |
From net realized gain | (0.07) | — | (0.08) | (0.01) | — |
Total distributions | (0.27) | (0.22) | (0.34) | (0.29) | (0.29) |
Net asset value, end of period | $10.14 | $11.06 | $10.66 | $10.94 | $10.73 |
Total return (%)2,3 | (5.97) | 5.85 | 0.47 | 4.78 | 1.09 |
Ratios and supplemental data | |||||
Net assets, end of period (in millions) | $8 | $11 | $16 | $19 | $21 |
Ratios (as a percentage of average net assets): | |||||
Expenses before reductions | 1.67 | 1.70 | 1.70 | 1.71 | 1.70 |
Expenses including reductions | 1.56 | 1.59 | 1.59 | 1.60 | 1.59 |
Net investment income | 1.78 | 2.02 | 2.37 | 2.67 | 2.62 |
Portfolio turnover (%) | 17 | 23 | 22 | 22 | 9 |
1 | Based on average daily shares outstanding. |
2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
3 | Does not reflect the effect of sales charges, if any. |
26 | JOHN HANCOCK California Municipal Bond Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS I SHARES Period ended | 5-31-22 | 5-31-21 | 5-31-20 | 5-31-19 | 5-31-18 |
Per share operating performance | |||||
Net asset value, beginning of period | $11.07 | $10.66 | $10.94 | $10.73 | $10.91 |
Net investment income1 | 0.29 | 0.32 | 0.35 | 0.38 | 0.38 |
Net realized and unrealized gain (loss) on investments | (0.84) | 0.41 | (0.20) | 0.22 | (0.17) |
Total from investment operations | (0.55) | 0.73 | 0.15 | 0.60 | 0.21 |
Less distributions | |||||
From net investment income | (0.30) | (0.32) | (0.35) | (0.38) | (0.39) |
From net realized gain | (0.07) | — | (0.08) | (0.01) | — |
Total distributions | (0.37) | (0.32) | (0.43) | (0.39) | (0.39) |
Net asset value, end of period | $10.15 | $11.07 | $10.66 | $10.94 | $10.73 |
Total return (%)2 | (5.11) | 6.90 | 1.37 | 5.72 | 1.91 |
Ratios and supplemental data | |||||
Net assets, end of period (in millions) | $19 | $13 | $15 | $10 | $10 |
Ratios (as a percentage of average net assets): | |||||
Expenses before reductions | 0.67 | 0.70 | 0.70 | 0.71 | 0.70 |
Expenses including reductions | 0.66 | 0.69 | 0.69 | 0.70 | 0.69 |
Net investment income | 2.68 | 2.90 | 3.25 | 3.58 | 3.53 |
Portfolio turnover (%) | 17 | 23 | 22 | 22 | 9 |
1 | Based on average daily shares outstanding. |
2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK California Municipal Bond Fund | 27 |
CLASS R6 SHARES Period ended | 5-31-22 | 5-31-21 | 5-31-20 | 5-31-19 | 5-31-181 |
Per share operating performance | |||||
Net asset value, beginning of period | $11.07 | $10.66 | $10.94 | $10.73 | $10.95 |
Net investment income2 | 0.29 | 0.32 | 0.36 | 0.38 | 0.29 |
Net realized and unrealized gain (loss) on investments | (0.83) | 0.41 | (0.20) | 0.22 | (0.22) |
Total from investment operations | (0.54) | 0.73 | 0.16 | 0.60 | 0.07 |
Less distributions | |||||
From net investment income | (0.31) | (0.32) | (0.36) | (0.38) | (0.29) |
From net realized gain | (0.07) | — | (0.08) | (0.01) | — |
Total distributions | (0.38) | (0.32) | (0.44) | (0.39) | (0.29) |
Net asset value, end of period | $10.15 | $11.07 | $10.66 | $10.94 | $10.73 |
Total return (%)3 | (5.08) | 6.93 | 1.40 | 5.76 | 0.664 |
Ratios and supplemental data | |||||
Net assets, end of period (in millions) | $12 | $9 | $7 | $4 | $2 |
Ratios (as a percentage of average net assets): | |||||
Expenses before reductions | 0.63 | 0.66 | 0.67 | 0.68 | 0.685 |
Expenses including reductions | 0.63 | 0.65 | 0.66 | 0.67 | 0.675 |
Net investment income | 2.70 | 2.93 | 3.28 | 3.58 | 3.565 |
Portfolio turnover (%) | 17 | 23 | 22 | 22 | 96 |
1 | The inception date for Class R6 shares is 8-30-17. |
2 | Based on average daily shares outstanding. |
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
4 | Not annualized. |
5 | Annualized. |
6 | Portfolio turnover is shown for the period from 6-1-17 to 5-31-18. |
28 | JOHN HANCOCK California Municipal Bond Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
ANNUAL REPORT | JOHN HANCOCK California Municipal Bond Fund | 29 |
Total value at 5-31-22 | Level 1 quoted price | Level 2 significant observable inputs | Level 3 significant unobservable inputs | |
Investments in securities: | ||||
Assets | ||||
Municipal bonds | $221,579,118 | — | $221,579,118 | — |
Short-term investments | 5,093,000 | — | 5,093,000 | — |
Total investments in securities | $226,672,118 | — | $226,672,118 | — |
Derivatives: | ||||
Assets | ||||
Futures | $93,840 | $93,840 | — | — |
30 | JOHN HANCOCK California Municipal Bond Fund | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK California Municipal Bond Fund | 31 |
May 31, 2022 | May 31, 2021 | |
Ordinary income | $178,362 | $47,107 |
Exempt Income | 5,448,653 | 5,729,561 |
Long-term capital gains | 1,293,277 | — |
Total | $6,920,292 | $5,776,668 |
32 | JOHN HANCOCK California Municipal Bond Fund | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK California Municipal Bond Fund | 33 |
Risk | Statement of assets and liabilities location | Financial instruments location | Assets derivatives fair value | Liabilities derivatives fair value |
Interest rate | Receivable/payable for futures variation margin1 | Futures | $93,840 | — |
1 | Reflects cumulative appreciation/depreciation on open futures as disclosed in the Derivatives section of Fund’s investments. Only the year end variation margin receivable/payable is separately reported on the Statement of assets and liabilities. |
Statement of operations location - Net realized gain (loss) on: | |
Risk | Futures contracts |
Interest rate | $2,227,446 |
Statement of operations location - Change in net unrealized appreciation (depreciation) of: | |
Risk | Futures contracts |
Interest rate | $93,840 |
34 | JOHN HANCOCK California Municipal Bond Fund | ANNUAL REPORT |
Class | Expense reduction |
Class A | $15,967 |
Class C | 854 |
Class I | 1,284 |
Class | Expense reduction |
Class R6 | $891 |
Total | $18,996 |
Class | Rule 12b-1 Fee |
Class A | 0.15% |
Class C | 1.00% |
ANNUAL REPORT | JOHN HANCOCK California Municipal Bond Fund | 35 |
Class | Distribution and service fees | Transfer agent fees |
Class A | $267,795 | $72,251 |
Class C | 95,179 | 3,861 |
Class I | — | 5,813 |
Class R6 | — | 873 |
Total | $362,974 | $82,798 |
Year Ended 5-31-22 | Year Ended 5-31-21 | |||
Shares | Amount | Shares | Amount | |
Class A shares | ||||
Sold | 3,475,052 | $35,958,758 | 1,830,259 | $19,980,106 |
Distributions reinvested | 480,558 | 5,172,648 | 393,976 | 4,306,089 |
Repurchased | (2,511,522) | (26,776,209) | (2,098,338) | (22,942,740) |
Net increase | 1,444,088 | $14,355,197 | 125,897 | $1,343,455 |
Class B shares | ||||
Distributions reinvested | — | — | 181 | $1,965 |
Repurchased | — | — | (26,912) | (291,004) |
Net decrease | — | — | (26,731) | $(289,039) |
36 | JOHN HANCOCK California Municipal Bond Fund | ANNUAL REPORT |
Year Ended 5-31-22 | Year Ended 5-31-21 | |||
Shares | Amount | Shares | Amount | |
Class C shares | ||||
Sold | 54,621 | $584,065 | 133,082 | $1,452,931 |
Distributions reinvested | 20,006 | 216,103 | 21,870 | 238,812 |
Repurchased | (336,438) | (3,607,882) | (598,929) | (6,550,273) |
Net decrease | (261,811) | $(2,807,714) | (443,977) | $(4,858,530) |
Class I shares | ||||
Sold | 898,445 | $9,316,500 | 478,134 | $5,204,978 |
Distributions reinvested | 45,219 | 486,133 | 33,098 | 361,941 |
Repurchased | (302,675) | (3,245,664) | (737,882) | (8,015,807) |
Net increase (decrease) | 640,989 | $6,556,969 | (226,650) | $(2,448,888) |
Class R6 shares | ||||
Sold | 853,754 | $8,900,445 | 690,855 | $7,535,736 |
Distributions reinvested | 32,377 | 347,902 | 20,677 | 226,204 |
Repurchased | (440,953) | (4,591,338) | (566,779) | (6,168,922) |
Net increase | 445,178 | $4,657,009 | 144,753 | $1,593,018 |
Total net increase (decrease) | 2,268,444 | $22,761,461 | (426,708) | $(4,659,984) |
Redesignation | Effective date | Amount |
Class B shares as Class A shares | October 14, 2020 | $267,162 |
ANNUAL REPORT | JOHN HANCOCK California Municipal Bond Fund | 37 |
38 | JOHN HANCOCK CALIFORNIA MUNICIPAL BOND FUND | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK CALIFORNIA MUNICIPAL BOND FUND | 39 |
• | The Fund’s investment strategy remained appropriate for an open-end fund structure; |
• | The Fund was able to meet requests for redemption without significant dilution of remaining shareholders’ interests in the Fund; |
• | The Fund did not report any breaches of the 15% limit on illiquid investments that would require reporting to the Securities and Exchange Commission; |
40 | JOHN HANCOCK CALIFORNIA MUNICIPAL BOND FUND | ANNUAL REPORT |
• | The Fund continued to qualify as a Primarily Highly Liquid Fund under the Liquidity Rule and therefore is not required to establish a HLIM; and |
• | The Chief Compliance Officer’s office, as a part of their annual Rule 38a-1 assessment of the Fund’s policies and procedures, reviewed the LRMP’s control environment and deemed it to be operating effectively and in compliance with the Board approved procedures. |
ANNUAL REPORT | JOHN HANCOCK CALIFORNIA MUNICIPAL BOND FUND | 41 |
Independent Trustees | ||
Name, year of birth Position(s) held with Trust Principal occupation(s) and other directorships during past 5 years | Trustee of the Trust since1 | Number of John Hancock funds overseen by Trustee |
Hassell H. McClellan, Born: 1945 | 2012 | 189 |
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 | 189 |
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 | 189 |
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 | 1989 | 189 |
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). | ||
Grace K. Fey, Born: 1946 | 2012 | 189 |
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). | ||
Deborah C. Jackson, Born: 1952 | 2008 | 189 |
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). |
42 | JOHN HANCOCK CALIFORNIA MUNICIPAL BOND FUND | ANNUAL REPORT |
Independent Trustees (continued) | ||
Name, year of birth Position(s) held with Trust Principal occupation(s) and other directorships during past 5 years | Trustee of the Trust since1 | Number of John Hancock funds overseen by Trustee |
Steven R. Pruchansky, Born: 1944 | 1994 | 189 |
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 | 189 |
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). | ||
Gregory A. Russo, Born: 1949 | 2009 | 189 |
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 Trust Principal occupation(s) and other directorships during past 5 years | Trustee of the Trust since1 | Number of John Hancock funds overseen by Trustee |
Andrew G. Arnott, Born: 1971 | 2017 | 189 |
President and Non-Independent Trustee | ||
Head of Wealth and Asset Management, United States and Europe, for John Hancock and Manulife (since 2018); Director and Executive Vice President, John Hancock Investment Management LLC (since 2005, including prior positions); Director and Executive Vice President, John Hancock Variable Trust Advisers LLC (since 2006, including prior positions); President, John Hancock Investment Management Distributors LLC (since 2004, including prior positions); President of various trusts within the John Hancock Fund Complex (since 2007, including prior positions). Trustee of various trusts within the John Hancock Fund Complex (since 2017). |
ANNUAL REPORT | JOHN HANCOCK CALIFORNIA MUNICIPAL BOND FUND | 43 |
Non-Independent Trustees3 (continued) | ||
Name, year of birth Position(s) held with Trust Principal occupation(s) and other directorships during past 5 years | Trustee of the Trust since1 | Number of John Hancock funds overseen by Trustee |
Marianne Harrison, Born: 1963 | 2018 | 189 |
Non-Independent Trustee | ||
President and CEO, John Hancock (since 2017); President and CEO, Manulife Canadian Division (2013–2017); Member, Board of Directors, Boston Medical Center (since 2021); Member, Board of Directors, CAE Inc. (since 2019); Member, Board of Directors, MA Competitive Partnership Board (since 2018); Member, Board of Directors, American Council of Life Insurers (ACLI) (since 2018); Member, Board of Directors, Communitech, an industry-led innovation center that fosters technology companies in Canada (2017-2019); Member, Board of Directors, Manulife Assurance Canada (2015-2017); Board Member, St. Mary’s General Hospital Foundation (2014-2017); Member, Board of Directors, Manulife Bank of Canada (2013- 2017); Member, Standing Committee of the Canadian Life & Health Assurance Association (2013-2017); Member, Board of Directors, John Hancock USA, John Hancock Life & Health, John Hancock New York (2012–2013). Trustee of various trusts within the John Hancock Fund Complex (since 2018). |
Principal officers who are not Trustees | |
Name, year of birth Position(s) held with Trust Principal occupation(s) during past 5 years | Current Position(s) with the Trust since |
Charles A. Rizzo, Born: 1957 | 2007 |
Chief Financial Officer | |
Vice President, John Hancock Financial Services (since 2008); Senior Vice President, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2008); Chief Financial Officer of various trusts within the John Hancock Fund Complex (since 2007). | |
Salvatore Schiavone, Born: 1965 | 2010 |
Treasurer | |
Assistant Vice President, John Hancock Financial Services (since 2007); Vice President, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2007); Treasurer of various trusts within the John Hancock Fund Complex (since 2007, including prior positions). | |
Christopher (Kit) Sechler, Born: 1973 | 2018 |
Secretary and Chief Legal Officer | |
Vice President and Deputy Chief Counsel, John Hancock Investment Management (since 2015); Assistant Vice President and Senior Counsel (2009–2015), John Hancock Investment Management; Assistant Secretary of John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2009); Chief Legal Officer and Secretary of various trusts within the John Hancock Fund Complex (since 2009, including prior positions). | |
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). |
44 | JOHN HANCOCK CALIFORNIA MUNICIPAL BOND FUND | ANNUAL REPORT |
1 | Each Trustee holds office until his or her successor is elected and qualified, or until the Trustee’s death, retirement, resignation, or removal. Mr. Boyle has served as Trustee at various times prior to the date listed in the table. |
2 | Member of the Audit Committee. |
3 | The Trustee is a Non-Independent Trustee due to current or former positions with the Advisor and certain affiliates. |
ANNUAL REPORT | JOHN HANCOCK CALIFORNIA MUNICIPAL BOND FUND | 45 |
Steven R. Pruchansky, Vice Chairperson
Andrew G. Arnott†
James R. Boyle
Peter S. Burgess*
William H. Cunningham*
Grace K. Fey
Marianne Harrison†
Deborah C. Jackson
Frances G. Rathke*
Gregory A. Russo
President
Chief Financial Officer
Treasurer
Secretary and Chief Legal Officer
Chief Compliance Officer
Adam A. Weigold, CFA
You can also contact us: | ||
800-225-5291 | Regular mail: | Express mail: |
jhinvestments.com | John Hancock Signature Services, Inc. P.O. Box 219909 Kansas City, MO 64121-9909 | John Hancock Signature Services, Inc. 430 W 7th Street Suite 219909 Kansas City, MO 64105-1407 |
46 | JOHN HANCOCK CALIFORNIA MUNICIPAL BOND FUND | ANNUAL REPORT |
GOVERNANCE FUNDS
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MF2234710 | 53A 5/22 |
ITEM 2. CODE OF ETHICS.
As of the end of the year, May 31, 2022, the registrant has adopted a code of ethics, as defined in
Item 2 of Form N-CSR, that applies to its Chief Executive Officer, Chief Financial Officer and Treasurer (respectively, the principal executive officer, the principal financial officer and the principal accounting officer, the "Covered Officers"). A copy of the code of ethics is filed as an exhibit to this Form N-CSR.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
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 for the audits of the registrant's annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements amounted to the following for the fiscal years ended May 31, 2022 and 2021. These fees were billed to the registrant and were approved by the registrant's audit committee.
Fund | May 31, 2022 |
| May 31, 2021 |
John Hancock California Municipal Bond Fund (formerly, |
|
|
|
John Hancock California Tax-Free Income Fund) | $ 45,022 | $ | 43,923 |
(b) Audit-Related Services
Audit-related fees for assurance and related services by the principal accountant are billed to the registrant or to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser ("control affiliates") that provides ongoing services to the registrant. The nature of the services provided was affiliated service provider internal controls reviews and registration statement reviews. Amounts billed to the registrant were as follows:
Fund | May 31, 2022 | May 31, 2021 | |
John Hancock California Municipal Bond Fund (formerly, |
|
|
|
John Hancock California Tax-Free Income Fund) | $ 776 | $ | 604 |
Amounts billed to control affiliates were $119,500 and $116,000 for the fiscal years ended May 31, 2022 and 2021, respectively.
(c) Tax Fees
The aggregate fees billed for professional services rendered by the principal accountant for tax compliance, tax advice and tax planning ("tax fees") amounted to the following for the fiscal years
ended May 31, 2022 and 2021. The nature of the services comprising the tax fees was the review of the registrant's tax returns and tax distribution requirements. These fees were billed to the registrant and were approved by the registrant's audit committee.
Fund | May 31, 2022 |
| May 31, 2021 |
John Hancock California Municipal Bond Fund (formerly, |
|
|
|
John Hancock California Tax-Free Income Fund) | $ 3,835 | $ | 3,760 |
(d) All Other Fees
The nature of the services comprising all other fees is advisory services provided to the investment manager. Other fees amounted to the following for the fiscal years ended May 31,
2022 and 2021:
Fund | May 31, 2022 | May 31, 2021 | |
John Hancock California Municipal Bond Fund (formerly, |
|
|
|
John Hancock California Tax-Free Income Fund) | $305 | $ | 89 |
(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 year/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 year/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 May 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 principal accountant for non-audit services rendered to the registrant and rendered to the registrant's control affiliates were $950,568 for the fiscal year ended May 31, 2022 and $1,146,100 for the fiscal year ended May 31, 2021.
(h)The audit committee of the registrant has considered the non-audit services provided by the registrant's principal accountant 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
ITEM 6. SCHEDULE OF INVESTMENTS.
(a)Not applicable.
(b)Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED- END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
The registrant has adopted procedures by which shareholders may recommend nominees to the registrant's Board of Trustees. A copy of the procedures is filed as an exhibit to this Form N-CSR. See attached "John Hancock Funds – Nominating, Governance and Administration Committee Charter".
ITEM 11. CONTROLS AND PROCEDURES.
(a)Based upon their evaluation of the registrant's disclosure controls and procedures as conducted within 90 days of the filing date of this Form N-CSR, the registrant's principal executive officer and principal financial officer have concluded that those disclosure controls and procedures provide reasonable assurance that the material information required to be disclosed by the registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms.
(b)There were no changes in the registrant's internal control over financial reporting that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting.
ITEM 12. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 13. EXHIBITS.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
John Hancock California Tax-Free Income Fund
By: | /s/ Andrew Arnott |
| ------------------------------ |
| Andrew Arnott |
| President |
Date: | July 12, 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: | July 12, 2022 |
By: | /s/ Charles A. Rizzo |
| -------------------------------- |
| Charles A. Rizzo |
| Chief Financial Officer |
Date: | July 12, 2022 |