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, 2023 |
ITEM 1. REPORT TO STOCKHOLDERS
United States and Europe
Manulife Investment Management
John Hancock Investment Management
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 5-31-23 | as of 5-31-23 | as of 5-31-23 | ||
Class A | -4.50 | 0.60 | 1.90 | 3.05 | 20.66 | 3.32 | 3.18 | 7.23 | |
Class C | -2.25 | 0.67 | 1.55 | 3.42 | 16.61 | 2.71 | 2.46 | 5.90 | |
Class I1,2 | -0.50 | 1.58 | 2.41 | 8.18 | 26.85 | 3.62 | 3.47 | 7.89 | |
Class R61,2 | -0.38 | 1.63 | 2.42 | 8.44 | 26.99 | 3.63 | 3.48 | 7.91 | |
Index 1†† | 0.88 | 1.57 | 2.42 | 8.09 | 27.07 | — | — | — | |
Index 2†† | 0.49 | 1.65 | 2.28 | 8.53 | 25.34 | — | — | — |
Class A | Class C | Class I | Class R6 | |
Gross (%) | 0.78 | 1.63 | 0.63 | 0.59 |
Net (%) | 0.74 | 1.49 | 0.59 | 0.56 |
Effective Leverage Ratio as of May 31, 2023 | |
Residual Inverse Floating Rate Interests Financing (TOB inverse residuals) | 1.33%3 |
ANNUAL REPORT | JOHN HANCOCK CALIFORNIA MUNICIPAL BOND FUND | 7 |
Start date | With maximum sales charge ($) | Without sales charge ($) | Index 1 ($) | Index 2 ($) | |
Class C4 | 5-31-13 | 11,661 | 11,661 | 12,707 | 12,534 |
Class I1,2 | 5-31-13 | 12,685 | 12,685 | 12,707 | 12,534 |
Class R61,2 | 5-31-13 | 12,699 | 12,699 | 12,707 | 12,534 |
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 | Fund employs (TOB inverse residuals) financing. See note 2, Tender Option Bond Transactions, for more information. The effective leverage ratio represents the amount of Floating Rate Interests outstanding at period end as a percentage of Fund net assets plus Floating Rate Interests. |
4 | 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 12-1-2022 | Ending value on 5-31-2023 | Expenses paid during period ended 5-31-20231 | Annualized expense ratio | ||
Class A | Actual expenses/actual returns | $1,000.00 | $1,018.80 | $3.93 | 0.78% |
Hypothetical example | 1,000.00 | 1,021.00 | 3.93 | 0.78% | |
Class C | Actual expenses/actual returns | 1,000.00 | 1,015.00 | 7.69 | 1.53% |
Hypothetical example | 1,000.00 | 1,017.30 | 7.70 | 1.53% | |
Class I | Actual expenses/actual returns | 1,000.00 | 1,019.60 | 3.12 | 0.62% |
Hypothetical example | 1,000.00 | 1,021.80 | 3.13 | 0.62% | |
Class R6 | Actual expenses/actual returns | 1,000.00 | 1,019.70 | 3.07 | 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 97.8% | $279,972,312 | ||||
(Cost $288,270,253) | |||||
California 96.4% | 276,036,855 | ||||
ABAG Finance Authority for Nonprofit Corps Sharp Healthcare, Series A | 5.000 | 08-01-43 | 2,000,000 | 2,000,839 | |
Alameda Corridor Transportation Authority Series A, (0.000% to 10-1-37, then 5.400% thereafter) | 0.000 | 10-01-50 | 2,500,000 | 1,248,794 | |
Antelope Valley Community College District Election 2016, Series B, GO | 4.000 | 08-01-45 | 500,000 | 488,380 | |
Antelope Valley Community College District Election 2016, Series C, GO (A) | 4.527 | 08-01-38 | 1,000,000 | 505,872 | |
Bay Area Water Supply & Conservation Agency Capital Cost Recovery Prepayment Program, Series A | 5.000 | 10-01-33 | 2,000,000 | 2,417,871 | |
Burbank Unified School District Election 2013, GO (0.000% to 8-1-23, then 4.500% thereafter) | 0.000 | 08-01-37 | 1,770,000 | 1,821,813 | |
California Community Choice Financing Authority Clean Energy Project, Series A | 4.000 | 10-01-52 | 1,250,000 | 1,250,201 | |
California Community Choice Financing Authority Clean Energy Project, Series B | 4.000 | 02-01-52 | 1,000,000 | 991,295 | |
California Community Housing Agency Stoneridge Apartments, Series A (B) | 4.000 | 02-01-56 | 600,000 | 438,812 | |
California Community Housing Agency Verdant at Green Valley Project, Series A (B) | 5.000 | 08-01-49 | 1,000,000 | 937,870 | |
California County Tobacco Securitization Agency Fresno County Funding Corp. | 6.000 | 06-01-35 | 1,010,000 | 1,010,708 | |
California County Tobacco Securitization Agency Kern County Tobacco Funding Corp. | 5.000 | 06-01-40 | 1,500,000 | 1,501,585 | |
California County Tobacco Securitization Agency Louisiana County Securitization Corp. | 4.000 | 06-01-49 | 1,000,000 | 916,651 | |
California County Tobacco Securitization Agency Merced County Tobacco Funding Corp. | 5.000 | 06-01-50 | 470,000 | 469,999 | |
California Educational Facilities Authority University of Redlands, Series A | 5.000 | 10-01-35 | 1,000,000 | 1,007,760 | |
California Enterprise Development Authority Academy for Academic Excellence Project, Series A (B) | 5.000 | 07-01-40 | 430,000 | 414,199 | |
California Enterprise Development Authority Academy for Academic Excellence Project, Series A (B) | 5.000 | 07-01-50 | 350,000 | 316,829 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK CALIFORNIA MUNICIPAL BOND FUND | 11 |
Rate (%) | Maturity date | Par value^ | Value | ||
California (continued) | |||||
California Enterprise Development Authority Academy for Academic Excellence Project, Series A (B) | 5.000 | 07-01-55 | 240,000 | $213,444 | |
California Health Facilities Financing Authority Adventist Health System, Series A | 5.000 | 03-01-40 | 1,000,000 | 1,053,075 | |
California Health Facilities Financing Authority Children’s Hospital, Series A | 5.000 | 08-15-47 | 1,000,000 | 1,000,362 | |
California Health Facilities Financing Authority City of Hope Obligated Group | 4.000 | 11-15-45 | 1,000,000 | 924,662 | |
California Health Facilities Financing Authority Commonspirit Health, Series A | 4.000 | 04-01-37 | 1,750,000 | 1,716,445 | |
California Health Facilities Financing Authority El Camino Hospital | 5.000 | 02-01-42 | 1,000,000 | 1,027,894 | |
California Health Facilities Financing Authority El Camino Hospital | 5.000 | 02-01-47 | 1,425,000 | 1,456,055 | |
California Health Facilities Financing Authority Lucile Packard Children’s Hospital, Series A | 5.000 | 08-15-43 | 1,000,000 | 1,015,807 | |
California Health Facilities Financing Authority Lucile Packard Children’s Hospital, Series B | 5.000 | 08-15-55 | 1,000,000 | 1,019,209 | |
California Health Facilities Financing Authority Standford Health Care, Series A | 4.000 | 08-15-50 | 1,000,000 | 968,296 | |
California Housing Finance Agency Series A | 4.250 | 01-15-35 | 943,295 | 935,823 | |
California Infrastructure & Economic Development Bank California Science Center | 4.000 | 05-01-46 | 1,500,000 | 1,426,338 | |
California Infrastructure & Economic Development Bank California State Teachers Retirement System | 4.000 | 08-01-49 | 1,000,000 | 943,936 | |
California Infrastructure & Economic Development Bank Clean Water and Drinking Water State Revolving Fund | 4.000 | 10-01-47 | 1,000,000 | 994,048 | |
California Infrastructure & Economic Development Bank Equitable School Revolving Fund, Series B | 4.125 | 11-01-52 | 1,300,000 | 1,155,692 | |
California Infrastructure & Economic Development Bank Los Angeles County Museum of Natural History Foundation | 4.000 | 07-01-50 | 1,500,000 | 1,388,415 | |
California Municipal Finance Authority Certificates of Participation, Palomar Health, Series A (C) | 5.250 | 11-01-52 | 750,000 | 797,128 | |
California Municipal Finance Authority Channing House Project, Series A (C) | 4.000 | 05-15-40 | 1,500,000 | 1,500,844 | |
California Municipal Finance Authority Community Facilities District No. 2020-6 | 5.000 | 09-01-42 | 500,000 | 495,118 | |
California Municipal Finance Authority HumanGood Obligated Group | 5.000 | 10-01-35 | 350,000 | 373,332 | |
California Municipal Finance Authority HumanGood Obligated Group, Series A | 5.000 | 10-01-44 | 1,000,000 | 1,015,395 |
12 | JOHN HANCOCK CALIFORNIA MUNICIPAL BOND FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
California (continued) | |||||
California Municipal Finance Authority Paradise Valley Estates Project, Series A (C) | 5.000 | 01-01-49 | 1,500,000 | $1,572,044 | |
California Municipal Finance Authority Retirement Housing Foundation Obligation Group, Series A | 5.000 | 11-15-31 | 1,500,000 | 1,759,929 | |
California Municipal Finance Authority Samuel Merritt University | 5.250 | 06-01-53 | 1,000,000 | 1,063,899 | |
California Municipal Finance Authority West Village Student Housing Project at UC Davis (C) | 4.000 | 05-15-48 | 1,565,000 | 1,452,626 | |
California Municipal Finance Authority Wineville School Project, Series A (C) | 5.000 | 10-01-42 | 2,000,000 | 2,055,896 | |
California Pollution Control Financing Authority San Diego County Water Authority Desalination Project Pipeline (B) | 5.000 | 11-21-45 | 2,500,000 | 2,527,784 | |
California Pollution Control Financing Authority Waste Management, Inc., Series A1, AMT | 3.375 | 07-01-25 | 1,000,000 | 985,658 | |
California Pollution Control Financing Authority Waste Management, Inc., Series A3, AMT | 4.300 | 07-01-40 | 4,675,000 | 4,716,541 | |
California Public Finance Authority Enso Village Project, Series A (B) | 5.000 | 11-15-46 | 1,100,000 | 977,630 | |
California Public Finance Authority Excelsior Charter Schools Project, Series A (B) | 5.000 | 06-15-50 | 500,000 | 454,577 | |
California Public Finance Authority Excelsior Charter Schools Project, Series A (B) | 5.000 | 06-15-55 | 500,000 | 448,729 | |
California Public Finance Authority Henry Mayo Newhall Hospital | 5.000 | 10-15-47 | 2,000,000 | 1,986,407 | |
California Public Finance Authority Trinity Classical Academy, Series A (B) | 5.000 | 07-01-44 | 485,000 | 431,638 | |
California Public Finance Authority Trinity Classical Academy, Series A (B) | 5.000 | 07-01-54 | 1,000,000 | 847,665 | |
California School Finance Authority Aspire Public School (B) | 5.000 | 08-01-46 | 110,000 | 114,224 | |
California School Finance Authority Aspire Public School (B) | 5.000 | 08-01-46 | 1,165,000 | 1,125,474 | |
California School Finance Authority Camino Nuevo Charter Academy (B) | 5.000 | 06-01-43 | 820,000 | 794,777 | |
California School Finance Authority Classical Academies Oceanside (B) | 5.000 | 10-01-42 | 500,000 | 509,322 | |
California School Finance Authority Granada Hills Charter High School Obligated Group (B) | 5.000 | 07-01-43 | 1,000,000 | 1,002,212 | |
California School Finance Authority Hawking Steam Charter School (B) | 5.250 | 07-01-52 | 500,000 | 472,261 | |
California School Finance Authority John Adams Academies, Series A (B) | 5.125 | 07-01-62 | 1,000,000 | 868,586 | |
California School Finance Authority KIPP LA Project, Series A (B) | 5.000 | 07-01-47 | 1,500,000 | 1,509,373 | |
California School Finance Authority Sonoma County Junior College (B) | 4.000 | 11-01-41 | 1,000,000 | 820,588 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK CALIFORNIA MUNICIPAL BOND FUND | 13 |
Rate (%) | Maturity date | Par value^ | Value | ||
California (continued) | |||||
California School Finance Authority Sonoma County Junior College (B) | 4.000 | 11-01-55 | 580,000 | $425,518 | |
California School Finance Authority Stem Preparatory School (B) | 5.000 | 06-01-43 | 750,000 | 736,950 | |
California State Public Works Board Air Resource Board, Series D | 4.000 | 05-01-44 | 1,000,000 | 982,605 | |
California State Public Works Board Various Capital Projects, Series A | 5.000 | 08-01-36 | 1,000,000 | 1,138,202 | |
California State Public Works Board Various Capital Projects, Series B | 4.000 | 03-01-45 | 1,565,000 | 1,529,410 | |
California State University Series A | 3.000 | 11-01-52 | 1,500,000 | 1,133,965 | |
California Statewide Communities Development Authority Adventist Health System, Series A | 5.000 | 03-01-48 | 1,885,000 | 1,907,814 | |
California Statewide Communities Development Authority CHF Irvine LLC | 5.000 | 05-15-40 | 1,410,000 | 1,431,205 | |
California Statewide Communities Development Authority Community Facilities District No. 2020-02 | 5.125 | 09-01-42 | 500,000 | 502,724 | |
California Statewide Communities Development Authority Community Facilities District No. 2022-03 | 5.000 | 09-01-43 | 1,020,000 | 992,039 | |
California Statewide Communities Development Authority Emanate Health, Series A | 4.000 | 04-01-45 | 2,000,000 | 1,856,957 | |
California Statewide Communities Development Authority Enloe Medical Center, Series A (C) | 5.250 | 08-15-52 | 1,000,000 | 1,060,112 | |
California Statewide Communities Development Authority Front Porch Communities & Services | 3.000 | 04-01-37 | 2,000,000 | 1,652,768 | |
California Statewide Communities Development Authority Front Porch Communities and Services, Series A | 5.000 | 04-01-47 | 750,000 | 758,322 | |
California Statewide Communities Development Authority Infrastructure Program, Series A | 4.000 | 09-02-51 | 995,000 | 785,485 | |
California Statewide Communities Development Authority Infrastructure Program, Series B | 5.000 | 09-02-44 | 825,000 | 829,154 | |
California Statewide Communities Development Authority John Muir Health, Series A | 4.000 | 08-15-46 | 1,125,000 | 1,056,118 | |
California Statewide Communities Development Authority Redlands Community Hospital | 5.000 | 10-01-46 | 2,000,000 | 2,020,969 | |
California Statewide Financing Authority Pooled Tobacco Securitization Program, Series C (A)(B) | 9.145 | 06-01-55 | 12,000,000 | 700,176 |
14 | JOHN HANCOCK CALIFORNIA MUNICIPAL BOND FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
California (continued) | |||||
California Statewide Financing Authority Tobacco Settlement, Series A | 6.000 | 05-01-37 | 2,000,000 | $2,034,808 | |
California Statewide Financing Authority Tobacco Settlement, Series B | 6.000 | 05-01-37 | 2,400,000 | 2,441,769 | |
Cascade Union Elementary School District Election 2016, Series A, GO (C) | 3.750 | 08-01-46 | 250,000 | 225,182 | |
Center Unified School District Election 2008, Series C, GO (C) | 4.125 | 08-01-46 | 1,250,000 | 1,240,382 | |
Chino Valley Unified School District Election 2016, Series C, GO (A) | 3.971 | 08-01-36 | 250,000 | 148,573 | |
Chino Valley Unified School District Election 2016, Series C, GO (A) | 4.309 | 08-01-40 | 675,000 | 323,664 | |
City & County of San Francisco Infrastructure & Revitalization Financing District No. 1 Series A (B) | 5.000 | 09-01-52 | 1,000,000 | 946,202 | |
City of Burbank Water and Power Electric Revenue | 5.000 | 06-01-38 | 300,000 | 335,833 | |
City of Burbank Water and Power Electric Revenue | 5.000 | 06-01-39 | 500,000 | 557,975 | |
City of Burbank Water and Power Electric Revenue | 5.000 | 06-01-40 | 700,000 | 776,076 | |
City of Fresno Airport Revenue Series A, AMT (C) | 4.000 | 07-01-42 | 1,000,000 | 937,678 | |
City of Fresno Airport Revenue Series A, AMT (C) | 5.000 | 07-01-48 | 1,000,000 | 1,052,491 | |
City of Irvine Community Facilities District No. 2013-3 Great Park | 5.000 | 09-01-49 | 2,000,000 | 2,007,290 | |
City of Long Beach Alamitos Bay Marina Project | 5.000 | 05-15-45 | 1,000,000 | 1,010,558 | |
City of Long Beach Community Facilities District 6-Pike Project | 6.250 | 10-01-26 | 1,265,000 | 1,267,392 | |
City of Long Beach Airport System Revenue Series C, AMT (C) | 5.000 | 06-01-42 | 500,000 | 530,119 | |
City of Long Beach Harbor Revenue Series A | 5.000 | 05-15-44 | 500,000 | 537,334 | |
City of Los Angeles Department of Airports Los Angeles International Airport, AMT | 4.125 | 05-15-43 | 2,000,000 | 1,942,879 | |
City of Los Angeles Department of Airports Los Angeles International Airport, AMT | 5.250 | 05-15-48 | 1,000,000 | 1,072,827 | |
City of Los Angeles Department of Airports Los Angeles International Airport, Series A, AMT | 4.000 | 05-15-44 | 1,500,000 | 1,423,299 | |
City of Los Angeles Department of Airports Los Angeles International Airport, Series A, AMT | 4.000 | 05-15-49 | 1,500,000 | 1,381,574 | |
City of Los Angeles Department of Airports Los Angeles International Airport, Series C, AMT | 5.000 | 05-15-35 | 1,000,000 | 1,084,065 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK CALIFORNIA MUNICIPAL BOND FUND | 15 |
Rate (%) | Maturity date | Par value^ | Value | ||
California (continued) | |||||
City of Los Angeles Department of Airports Los Angeles International Airport, Series F, AMT | 3.000 | 05-15-49 | 1,000,000 | $724,890 | |
City of Oroville Oroville Hospital | 5.250 | 04-01-49 | 1,000,000 | 812,516 | |
City of Rocklin Community Facilities District No. 10 Whitney (C) | 4.000 | 09-01-43 | 1,975,000 | 1,946,883 | |
City of Sacramento Greenbriar Community Facilities District No. 2018-3 | 4.000 | 09-01-50 | 600,000 | 509,133 | |
City of San Clemente Community Facilities District No. 2006-1 | 5.000 | 09-01-46 | 1,955,000 | 1,968,289 | |
City of Vernon Electric System Revenue Series 2022-A | 5.000 | 08-01-40 | 360,000 | 371,890 | |
City of Vernon Electric System Revenue Series 2022-A | 5.000 | 08-01-41 | 820,000 | 846,198 | |
City of Victorville Electric Revenue Series A | 5.000 | 05-01-34 | 500,000 | 570,727 | |
City of Victorville Electric Revenue Series A | 5.000 | 05-01-35 | 540,000 | 611,000 | |
City of Victorville Electric Revenue Series A | 5.000 | 05-01-36 | 500,000 | 560,988 | |
Coachella Valley Water District Stormwater System Revenue Certificates of Participation, Series A | 5.000 | 08-01-35 | 920,000 | 1,061,846 | |
Coachella Valley Water District Stormwater System Revenue Certificates of Participation, Series A | 5.000 | 08-01-36 | 975,000 | 1,114,856 | |
College of the Sequoias Tulare Area Improvement District No. 3 Election of 2008, Series B, GO (A)(C) | 4.520 | 08-01-40 | 3,110,000 | 1,439,667 | |
Compton Community Redevelopment Agency Successor Agency Series A (C) | 5.000 | 08-01-42 | 1,250,000 | 1,357,091 | |
County of Sacramento Airport System Revenue | 4.000 | 07-01-39 | 1,000,000 | 1,003,889 | |
County of Sacramento Metro Air Park Community Facilities District No. 2000-1 | 5.000 | 09-01-47 | 1,000,000 | 971,415 | |
CSCDA Community Improvement Authority 1818 Platinum Triangle Anaheim, Series A-2 (B) | 3.250 | 04-01-57 | 300,000 | 207,297 | |
CSCDA Community Improvement Authority Altana Glendale, Series A-2 (B) | 4.000 | 10-01-56 | 1,000,000 | 732,274 | |
CSCDA Community Improvement Authority Orange City Portfolio, Series A-2 (B) | 3.000 | 03-01-57 | 1,200,000 | 787,632 | |
CSCDA Community Improvement Authority Parallel Apartments Anaheim, Series A (B) | 4.000 | 08-01-56 | 1,000,000 | 731,569 | |
CSCDA Community Improvement Authority The Link-Glendale, Series A-2 (B) | 4.000 | 07-01-56 | 600,000 | 423,015 |
16 | JOHN HANCOCK CALIFORNIA MUNICIPAL BOND FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
California (continued) | |||||
Del Mar Union School District Election 2018, Series B, GO | 4.000 | 08-01-46 | 1,000,000 | $991,831 | |
Del Mar Union School District Election 2018, Series B, GO | 5.000 | 08-01-33 | 270,000 | 321,986 | |
Del Mar Union School District Election 2018, Series B, GO | 5.000 | 08-01-34 | 225,000 | 264,340 | |
East Bay Municipal Utility District Water System Revenue Series B-2 | 5.000 | 06-01-34 | 1,000,000 | 1,222,931 | |
El Monte City School District Election 2008, Series C, GO (C) | 4.000 | 08-01-47 | 200,000 | 193,949 | |
El Monte City School District Election 2014, Series D, GO (C) | 4.000 | 08-01-42 | 300,000 | 297,148 | |
Foothill-Eastern Transportation Corridor Agency Series B-2 (C) | 3.500 | 01-15-53 | 2,565,000 | 2,159,005 | |
Golden State Tobacco Securitization Corp. Series A | 5.000 | 06-01-40 | 2,250,000 | 2,342,238 | |
Golden State Tobacco Securitization Corp. Series A, Prerefunded | 5.000 | 06-01-40 | 2,750,000 | 2,862,735 | |
Golden State Tobacco Securitization Corp. Series A-1 | 5.000 | 06-01-31 | 1,000,000 | 1,111,676 | |
Golden State Tobacco Securitization Corp. Series B-2 (A) | 5.391 | 06-01-66 | 9,000,000 | 910,435 | |
Golden State Tobacco Securitization Corp. Tobacco Settlement, Series A-1 | 5.000 | 06-01-51 | 1,000,000 | 1,041,406 | |
Hastings Campus Housing Finance Authority Series A (B) | 5.000 | 07-01-45 | 1,000,000 | 855,596 | |
Hemet Unified School District Election 2018, Series D, GO (C) | 4.000 | 08-01-43 | 1,835,000 | 1,766,563 | |
Independent Cities Finance Authority Union City Tropics | 3.250 | 05-15-39 | 1,250,000 | 1,063,748 | |
Inglewood Unified School District Series A, GO (C) | 4.000 | 08-01-36 | 555,000 | 559,521 | |
Inglewood Unified School District Series A, GO (C) | 4.000 | 08-01-37 | 445,000 | 447,728 | |
Inland Valley Development Agency Series A | 5.000 | 09-01-44 | 2,500,000 | 2,510,097 | |
Irvine Facilities Financing Authority Great Park Infrastructure Project (C) | 4.000 | 09-01-58 | 1,750,000 | 1,662,305 | |
Jefferson Union High School District Measure Z, Series A, GO | 5.000 | 08-01-43 | 400,000 | 442,260 | |
Jefferson Union High School District Measure Z, Series A, GO | 5.000 | 08-01-44 | 620,000 | 683,582 | |
Jurupa Community Services District Community Facilities District No. 31 Eastvale Project (C) | 4.000 | 09-01-38 | 1,045,000 | 1,050,842 | |
Jurupa Community Services District Community Facilities District No. 31 Eastvale Project (C) | 4.000 | 09-01-42 | 1,365,000 | 1,353,157 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK CALIFORNIA MUNICIPAL BOND FUND | 17 |
Rate (%) | Maturity date | Par value^ | Value | ||
California (continued) | |||||
Liberty Union High School District Election 2016, Series B, GO | 3.000 | 08-01-41 | 1,670,000 | $1,387,134 | |
Long Beach Bond Finance Authority Lease Revenue | 5.000 | 08-01-29 | 475,000 | 538,095 | |
Long Beach Bond Finance Authority Lease Revenue | 5.000 | 08-01-30 | 400,000 | 461,484 | |
Long Beach Bond Finance Authority Lease Revenue | 5.000 | 08-01-31 | 325,000 | 380,470 | |
Long Beach Bond Finance Authority Lease Revenue | 5.000 | 08-01-46 | 1,000,000 | 1,091,137 | |
Los Angeles Community College District Election 2008, Series K, GO | 3.000 | 08-01-39 | 1,080,000 | 942,643 | |
Los Angeles Department of Water & Power Series D | 5.000 | 07-01-44 | 1,000,000 | 1,013,340 | |
Los Angeles Department of Water & Power Series D | 5.000 | 07-01-52 | 1,000,000 | 1,095,740 | |
Los Angeles Unified School District Series RYQ, GO | 4.000 | 07-01-44 | 1,875,000 | 1,861,790 | |
Lower Tule River Irrigation District Series A | 5.000 | 08-01-28 | 875,000 | 955,011 | |
Moreno Valley Unified School District Election 2014, Series C, GO (C) | 3.000 | 08-01-46 | 1,955,000 | 1,543,255 | |
Moreno Valley Unified School District Election 2014, Series D, GO (C) | 4.000 | 08-01-45 | 1,000,000 | 976,761 | |
Mount Diablo Unified School District Series B, GO | 4.000 | 08-01-33 | 1,300,000 | 1,399,747 | |
Mountain View School District Election 2020, Series B, GO (C) | 4.000 | 08-01-52 | 500,000 | 478,722 | |
Mountain View School District Election 2020, Series B, GO (C) | 5.000 | 08-01-49 | 500,000 | 536,841 | |
Mountain View-Whisman School District Election 2020, Series B, GO | 4.000 | 09-01-42 | 250,000 | 250,934 | |
M-S-R Energy Authority Series B | 6.500 | 11-01-39 | 1,500,000 | 1,741,365 | |
Norman Y. Mineta San Jose International Airport SJC Series A, AMT | 5.000 | 03-01-47 | 1,500,000 | 1,532,324 | |
Oak Grove School District Election 2022, Series A-2, GO | 4.000 | 08-01-49 | 2,000,000 | 1,933,034 | |
Oakland Unified School District Series A, GO | 5.000 | 08-01-40 | 1,500,000 | 1,562,402 | |
Ontario Public Financing Authority Civic Center Improvements, Series A (C) | 5.000 | 11-01-52 | 1,500,000 | 1,609,835 | |
Orange County Community Facilities District 2017-1 Esencia Village Improvement Area No. 1, Series A | 5.000 | 08-15-47 | 2,000,000 | 2,037,586 | |
Orange County Community Facilities District No. 2021-1 Rienda, Series A | 5.000 | 08-15-52 | 500,000 | 503,042 | |
Pacifica School District Series C, GO (A)(C) | 3.631 | 08-01-26 | 1,000,000 | 891,608 |
18 | JOHN HANCOCK CALIFORNIA MUNICIPAL BOND FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
California (continued) | |||||
Port of Los Angeles Series A, AMT | 5.000 | 08-01-44 | 2,000,000 | $2,016,402 | |
Redwood City Public Facilities & Infrastructure Authority Veterans Memorial Building Senior Center | 3.000 | 06-01-51 | 2,535,000 | 1,872,269 | |
Regents of the University of California Medical Center Pooled Revenue Series P | 4.000 | 05-15-43 | 2,000,000 | 1,972,817 | |
River Islands Public Financing Authority Community Facilities District No. 2003-1, Series A | 5.000 | 09-01-48 | 1,250,000 | 1,197,901 | |
River Islands Public Financing Authority Community Facilities District No. 2016-1 (C) | 4.250 | 09-01-42 | 1,000,000 | 1,014,085 | |
River Islands Public Financing Authority Community Facilities District No. 2016-1 (C) | 5.250 | 09-01-52 | 500,000 | 553,704 | |
River Islands Public Financing Authority Lathrop Irrigation District (C) | 4.000 | 09-01-35 | 1,125,000 | 1,152,223 | |
Riverside County Transportation Commission Route 91 Express Lanes, Series C | 4.000 | 06-01-47 | 1,750,000 | 1,584,586 | |
Riverside County Transportation Commission Series A | 5.750 | 06-01-48 | 1,000,000 | 1,000,000 | |
Sacramento Municipal Utility District Series H | 4.000 | 08-15-45 | 1,000,000 | 990,900 | |
Salinas Union High School District Certificates of Participation, Workforce Housing Project (C) | 4.125 | 06-01-42 | 275,000 | 276,238 | |
Salinas Union High School District Series A, GO | 4.000 | 08-01-47 | 1,500,000 | 1,461,288 | |
San Bernardino Community College District Election of 2008, Series B, GO (A) | 4.533 | 08-01-44 | 1,530,000 | 590,336 | |
San Bernardino County Transportation Authority Series A | 4.000 | 03-01-38 | 2,000,000 | 2,084,021 | |
San Diego County Regional Airport Authority Series A | 4.000 | 07-01-51 | 2,000,000 | 1,892,590 | |
San Diego County Regional Airport Authority Series B, AMT | 4.000 | 07-01-39 | 1,320,000 | 1,255,737 | |
San Diego Public Facilities Financing Authority Capital Improvement Projects, Series A | 5.000 | 10-15-44 | 980,000 | 1,013,669 | |
San Diego Unified School District Election 2012, Series O-2, GO | 4.250 | 07-01-47 | 1,460,000 | 1,476,537 | |
San Diego Unified School District Series I, GO (A) | 4.168 | 07-01-39 | 1,250,000 | 641,932 | |
San Francisco Bay Area Rapid Transit District Election of 2016, Series D1, GO (D) | 4.000 | 08-01-37 | 2,810,000 | 2,883,323 | |
San Francisco Bay Area Rapid Transit District Election of 2016, Series D1, GO (D) | 4.250 | 08-01-52 | 3,000,000 | 3,024,541 | |
San Francisco Bay Area Rapid Transit District Sales Tax Revenue Series A | 3.000 | 07-01-44 | 2,000,000 | 1,630,826 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK CALIFORNIA MUNICIPAL BOND FUND | 19 |
Rate (%) | Maturity date | Par value^ | Value | ||
California (continued) | |||||
San Francisco City & County Airport Commission Series 2020-B | 4.000 | 05-01-37 | 1,010,000 | $1,031,175 | |
San Francisco City & County Airport Commission Series A, AMT | 5.000 | 05-01-38 | 1,000,000 | 1,076,970 | |
San Francisco City & County Airport Commission Series A, AMT | 5.000 | 05-01-49 | 1,500,000 | 1,542,454 | |
San Francisco City & County Airport Commission SFO Fuel Company, AMT | 5.000 | 01-01-47 | 2,000,000 | 2,057,903 | |
San Francisco City & County Public Utilities Commission Power Revenue Local Water, Series C | 4.000 | 11-01-50 | 1,500,000 | 1,463,520 | |
San Francisco City & County Public Utilities Commission Power Revenue Series A | 5.000 | 11-01-45 | 1,500,000 | 1,538,782 | |
San Francisco City & County Public Utilities Commission Wastewater Revenue Series A | 4.000 | 10-01-51 | 1,500,000 | 1,459,437 | |
San Francisco City & County Redevelopment Successor Agency Community Facilities District No. 6, Mission Bay South, Series A | 5.150 | 08-01-35 | 1,250,000 | 1,251,169 | |
San Francisco City & County Redevelopment Successor Agency Mission Bay Project, Series A | 5.000 | 08-01-43 | 475,000 | 485,711 | |
San Joaquin Area Flood Control Agency Smith Canal Area Assessment (C) | 3.250 | 10-01-40 | 1,000,000 | 863,476 | |
San Joaquin Hills Transportation Corridor Agency Series A | 4.000 | 01-15-50 | 1,000,000 | 936,661 | |
San Joaquin Regional Rail Commission Ace Maintenance Facility Project | 4.000 | 05-01-37 | 490,000 | 490,258 | |
San Joaquin Regional Rail Commission Ace Maintenance Facility Project | 4.000 | 05-01-38 | 460,000 | 454,917 | |
San Joaquin Regional Rail Commission Ace Maintenance Facility Project | 4.000 | 05-01-39 | 730,000 | 718,166 | |
San Jose Evergreen Community College District Election 2016 Series C, GO | 4.000 | 09-01-43 | 1,000,000 | 1,005,314 | |
San Jose Financing Authority Series B | 5.000 | 11-01-52 | 1,000,000 | 1,106,201 | |
San Mateo Foster City Public Financing Authority Clean Water Program | 5.000 | 08-01-49 | 2,000,000 | 2,144,348 | |
San Mateo Foster City School District Election 2020, Series B, GO | 4.000 | 08-01-42 | 1,000,000 | 1,012,262 | |
Santa Ana Financing Authority Police Administration & Holding Facility, Series A (C) | 6.250 | 07-01-24 | 2,185,000 | 2,221,471 |
20 | JOHN HANCOCK CALIFORNIA MUNICIPAL BOND FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
California (continued) | |||||
Santa Ana Financing Authority Prerefunded, Police Administration & Holding Facility, Series A (C) | 6.250 | 07-01-24 | 2,185,000 | $2,220,781 | |
Santa Ana Unified School District 2018 Election, Series C, GO | 4.000 | 08-01-44 | 2,000,000 | 1,968,375 | |
Santa Clara Valley Water District Safe Clean Water Revenue Series A | 5.000 | 08-01-47 | 1,000,000 | 1,109,368 | |
Santa Cruz County Capital Financing Authority Green Bond | 4.125 | 06-01-48 | 1,420,000 | 1,402,997 | |
Santa Margarita Water District Community Facilities District No. 2013-1 | 5.625 | 09-01-43 | 745,000 | 749,013 | |
Santa Maria Joint Union High School District Election 2016, GO | 3.000 | 08-01-41 | 1,000,000 | 830,619 | |
Santa Monica Community College District Series B, GO | 4.000 | 08-01-45 | 2,000,000 | 1,971,434 | |
South Orange County Public Financing Authority Series A | 5.000 | 08-15-34 | 450,000 | 451,456 | |
South Placer Wastewater Authority Wastewater Revenue | 5.000 | 11-01-34 | 355,000 | 423,841 | |
Southern California Public Power Authority Apex Power Project, Series A | 5.000 | 07-01-38 | 1,000,000 | 1,017,169 | |
Southern California Public Power Authority Natural Gas Project, Series A | 5.250 | 11-01-26 | 2,000,000 | 2,074,011 | |
Southwestern Community College District Series D, GO | 3.000 | 08-01-41 | 2,000,000 | 1,661,238 | |
State of California Series CU, GO | 4.850 | 12-01-46 | 1,000,000 | 1,062,617 | |
State of California Various Purpose, GO | 5.000 | 04-01-32 | 2,000,000 | 2,353,975 | |
State of California Various Purpose, GO | 5.000 | 10-01-42 | 2,000,000 | 2,256,595 | |
State of California Various Purpose, GO | 5.000 | 10-01-45 | 1,100,000 | 1,232,461 | |
Sweetwater Union High School District Election 2018, Series A-1, GO | 5.000 | 08-01-52 | 500,000 | 538,973 | |
Three Rivers Levee Improvement Authority Community Facilities District No. 2006-1, Series A | 4.000 | 09-01-51 | 1,000,000 | 799,177 | |
Transbay Joint Powers Authority Series A | 5.000 | 10-01-32 | 345,000 | 371,471 | |
University of California Series AZ | 5.000 | 05-15-48 | 1,500,000 | 1,600,014 | |
University of California Series BK | 5.000 | 05-15-52 | 1,720,000 | 1,881,370 | |
University of California Series BM | 5.000 | 05-15-39 | 1,000,000 | 1,148,136 | |
Vista Unified School District Series B, GO (C) | 4.250 | 08-01-44 | 1,500,000 | 1,515,569 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK CALIFORNIA MUNICIPAL BOND FUND | 21 |
Rate (%) | Maturity date | Par value^ | Value | ||
California (continued) | |||||
Vista Unified School District Series B, GO (C) | 5.000 | 08-01-42 | 1,000,000 | $1,105,165 | |
West Hollywood Public Financing Authority Series A | 3.000 | 04-01-42 | 2,000,000 | 1,657,963 | |
William S. Hart Union High School District Community Facilities District No. 2015-1 | 5.000 | 09-01-47 | 1,000,000 | 1,008,315 | |
Windsor Unified School District Election 2016, GO (C) | 4.000 | 08-01-46 | 2,100,000 | 2,045,120 | |
Yorba Linda Water District Public Financing Corp. Series A | 4.000 | 10-01-52 | 1,130,000 | 1,103,969 | |
Puerto Rico 1.4% | 3,935,457 | ||||
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, Series A-1 (A) | 4.582 | 07-01-31 | 1,500,000 | 1,038,704 | |
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, Series A-1 | 5.000 | 07-01-58 | 1,500,000 | 1,433,171 | |
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, Series A-1 (A) | 5.850 | 07-01-51 | 3,450,000 | 682,760 | |
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, Series A-2 | 4.784 | 07-01-58 | 850,000 | 780,822 | |
Shares | Value | ||||
Closed-end funds 0.4% | $1,079,850 | ||||
(Cost $1,039,842) | |||||
Invesco California Value Municipal Income Trust | 115,000 | 1,079,850 | |||
Yield (%) | Shares | Value | |||
Short-term investments 1.3% | $3,774,313 | ||||
(Cost $3,774,251) | |||||
Short-term funds 1.3% | |||||
John Hancock Collateral Trust (E) | 4.5317(F) | 377,605 | 3,774,313 | ||
Total investments (Cost $293,084,346) 99.5% | $284,826,475 | ||||
Other assets and liabilities, net 0.5% | 1,452,561 | ||||
Total net assets 100.0% | $286,279,036 |
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) | 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. |
(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. |
22 | JOHN HANCOCK CALIFORNIA MUNICIPAL BOND FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
(D) | Security represents the municipal bond held by a trust that issues residual inverse floating rate interests. See Note 2 for more information. |
(E) | Investment is an affiliate of the fund, the advisor and/or subadvisor. |
(F) | The rate shown is the annualized seven-day yield as of 5-31-23. |
Insurance coverage | As a % of total investments |
Assured Guaranty Municipal Corp. | 7.3 |
Build America Mutual Assurance Company | 5.8 |
National Public Finance Guarantee Corp. | 1.9 |
California Mortgage Insurance | 1.1 |
TOTAL | 16.1 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK CALIFORNIA MUNICIPAL BOND FUND | 23 |
Assets | |
Unaffiliated investments, at value (Cost $289,310,095) | $281,052,162 |
Affiliated investments, at value (Cost $3,774,251) | 3,774,313 |
Total investments, at value (Cost $293,084,346) | 284,826,475 |
Interest receivable | 3,205,320 |
Receivable for fund shares sold | 1,441,521 |
Receivable for investments sold | 1,482,667 |
Other assets | 40,046 |
Total assets | 290,996,029 |
Liabilities | |
Payable for floating rate interests issued | 3,870,000 |
Distributions payable | 41,110 |
Payable for fund shares repurchased | 589,979 |
Payable to affiliates | |
Investment management fees | 88,914 |
Accounting and legal services fees | 22,665 |
Transfer agent fees | 5,455 |
Distribution and service fees | 23,854 |
Trustees’ fees | 473 |
Other liabilities and accrued expenses | 74,543 |
Total liabilities | 4,716,993 |
Net assets | $286,279,036 |
Net assets consist of | |
Paid-in capital | $294,494,091 |
Total distributable earnings (loss) | (8,215,055) |
Net assets | $286,279,036 |
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 ($187,975,466 ÷ 19,320,668 shares)1 | $9.73 |
Class C ($4,683,879 ÷ 481,370 shares)1 | $9.73 |
Class I ($63,621,915 ÷ 6,535,636 shares) | $9.73 |
Class R6 ($29,997,776 ÷ 3,080,407 shares) | $9.74 |
Maximum offering price per share | |
Class A (net asset value per share ÷ 96%)2 | $10.14 |
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. |
24 | JOHN HANCOCK California Municipal Bond Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Investment income | |
Interest | $9,885,483 |
Dividends from affiliated investments | 246,272 |
Dividends | 33,753 |
Total investment income | 10,165,508 |
Expenses | |
Investment management fees | 1,309,463 |
Distribution and service fees | 326,425 |
Interest expense | 105,837 |
Accounting and legal services fees | 50,409 |
Transfer agent fees | 66,006 |
Trustees’ fees | 5,761 |
Custodian fees | 55,031 |
State registration fees | 46,529 |
Printing and postage | 31,844 |
Professional fees | 63,271 |
Other | 28,969 |
Total expenses | 2,089,545 |
Less expense reductions | (156,579) |
Net expenses | 1,932,966 |
Net investment income | 8,232,542 |
Realized and unrealized gain (loss) | |
Net realized gain (loss) on | |
Unaffiliated investments | (1,726,003) |
Affiliated investments | 3,997 |
Futures contracts | 254,751 |
(1,467,255) | |
Change in net unrealized appreciation (depreciation) of | |
Unaffiliated investments | (7,213,851) |
Affiliated investments | 62 |
Futures contracts | (93,840) |
(7,307,629) | |
Net realized and unrealized loss | (8,774,884) |
Decrease in net assets from operations | $(542,342) |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK California Municipal Bond Fund | 25 |
Year ended 5-31-23 | Year ended 5-31-22 | |
Increase (decrease) in net assets | ||
From operations | ||
Net investment income | $8,232,542 | $5,337,153 |
Net realized gain (loss) | (1,467,255) | 1,015,403 |
Change in net unrealized appreciation (depreciation) | (7,307,629) | (17,031,454) |
Decrease in net assets resulting from operations | (542,342) | (10,678,898) |
Distributions to shareholders | ||
From earnings | ||
Class A | (6,357,879) | (5,835,017) |
Class C | (162,323) | (239,541) |
Class I | (1,708,294) | (497,832) |
Class R6 | (792,549) | (347,902) |
Total distributions | (9,021,045) | (6,920,292) |
From fund share transactions | 76,174,163 | 22,761,461 |
Total increase | 66,610,776 | 5,162,271 |
Net assets | ||
Beginning of year | 219,668,260 | 214,505,989 |
End of year | $286,279,036 | $219,668,260 |
26 | JOHN HANCOCK California Municipal Bond Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS A SHARES Period ended | 5-31-23 | 5-31-22 | 5-31-21 | 5-31-20 | 5-31-19 |
Per share operating performance | |||||
Net asset value, beginning of period | $10.14 | $11.06 | $10.66 | $10.94 | $10.73 |
Net investment income1 | 0.32 | 0.27 | 0.30 | 0.34 | 0.36 |
Net realized and unrealized gain (loss) on investments | (0.39) | (0.84) | 0.40 | (0.20) | 0.22 |
Total from investment operations | (0.07) | (0.57) | 0.70 | 0.14 | 0.58 |
Less distributions | |||||
From net investment income | (0.31) | (0.28) | (0.30) | (0.34) | (0.36) |
From net realized gain | (0.03) | (0.07) | — | (0.08) | (0.01) |
Total distributions | (0.34) | (0.35) | (0.30) | (0.42) | (0.37) |
Net asset value, end of period | $9.73 | $10.14 | $11.06 | $10.66 | $10.94 |
Total return (%)2,3 | (0.55) | (5.26) | 6.64 | 1.22 | 5.57 |
Ratios and supplemental data | |||||
Net assets, end of period (in millions) | $188 | $181 | $181 | $173 | $176 |
Ratios (as a percentage of average net assets): | |||||
Expenses before reductions | 0.854 | 0.82 | 0.85 | 0.85 | 0.86 |
Expenses including reductions | 0.794 | 0.81 | 0.84 | 0.84 | 0.85 |
Net investment income | 3.26 | 2.53 | 2.76 | 3.12 | 3.42 |
Portfolio turnover (%) | 23 | 17 | 23 | 22 | 22 |
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. |
4 | Includes interest expense of 0.04%. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK California Municipal Bond Fund | 27 |
CLASS C SHARES Period ended | 5-31-23 | 5-31-22 | 5-31-21 | 5-31-20 | 5-31-19 |
Per share operating performance | |||||
Net asset value, beginning of period | $10.14 | $11.06 | $10.66 | $10.94 | $10.73 |
Net investment income1 | 0.24 | 0.19 | 0.22 | 0.26 | 0.28 |
Net realized and unrealized gain (loss) on investments | (0.38) | (0.84) | 0.40 | (0.20) | 0.22 |
Total from investment operations | (0.14) | (0.65) | 0.62 | 0.06 | 0.50 |
Less distributions | |||||
From net investment income | (0.24) | (0.20) | (0.22) | (0.26) | (0.28) |
From net realized gain | (0.03) | (0.07) | — | (0.08) | (0.01) |
Total distributions | (0.27) | (0.27) | (0.22) | (0.34) | (0.29) |
Net asset value, end of period | $9.73 | $10.14 | $11.06 | $10.66 | $10.94 |
Total return (%)2,3 | (1.29) | (5.97) | 5.85 | 0.47 | 4.78 |
Ratios and supplemental data | |||||
Net assets, end of period (in millions) | $5 | $8 | $11 | $16 | $19 |
Ratios (as a percentage of average net assets): | |||||
Expenses before reductions | 1.714 | 1.67 | 1.70 | 1.70 | 1.71 |
Expenses including reductions | 1.554 | 1.56 | 1.59 | 1.59 | 1.60 |
Net investment income | 2.51 | 1.78 | 2.02 | 2.37 | 2.67 |
Portfolio turnover (%) | 23 | 17 | 23 | 22 | 22 |
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. |
4 | Includes interest expense of 0.04%. |
28 | JOHN HANCOCK California Municipal Bond Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS I SHARES Period ended | 5-31-23 | 5-31-22 | 5-31-21 | 5-31-20 | 5-31-19 |
Per share operating performance | |||||
Net asset value, beginning of period | $10.15 | $11.07 | $10.66 | $10.94 | $10.73 |
Net investment income1 | 0.33 | 0.29 | 0.32 | 0.35 | 0.38 |
Net realized and unrealized gain (loss) on investments | (0.39) | (0.84) | 0.41 | (0.20) | 0.22 |
Total from investment operations | (0.06) | (0.55) | 0.73 | 0.15 | 0.60 |
Less distributions | |||||
From net investment income | (0.33) | (0.30) | (0.32) | (0.35) | (0.38) |
From net realized gain | (0.03) | (0.07) | — | (0.08) | (0.01) |
Total distributions | (0.36) | (0.37) | (0.32) | (0.43) | (0.39) |
Net asset value, end of period | $9.73 | $10.15 | $11.07 | $10.66 | $10.94 |
Total return (%)2 | (0.50) | (5.11) | 6.90 | 1.37 | 5.72 |
Ratios and supplemental data | |||||
Net assets, end of period (in millions) | $64 | $19 | $13 | $15 | $10 |
Ratios (as a percentage of average net assets): | |||||
Expenses before reductions | 0.703 | 0.67 | 0.70 | 0.70 | 0.71 |
Expenses including reductions | 0.643 | 0.66 | 0.69 | 0.69 | 0.70 |
Net investment income | 3.41 | 2.68 | 2.90 | 3.25 | 3.58 |
Portfolio turnover (%) | 23 | 17 | 23 | 22 | 22 |
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 | Includes interest expense of 0.04%. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK California Municipal Bond Fund | 29 |
CLASS R6 SHARES Period ended | 5-31-23 | 5-31-22 | 5-31-21 | 5-31-20 | 5-31-19 |
Per share operating performance | |||||
Net asset value, beginning of period | $10.15 | $11.07 | $10.66 | $10.94 | $10.73 |
Net investment income1 | 0.33 | 0.29 | 0.32 | 0.36 | 0.38 |
Net realized and unrealized gain (loss) on investments | (0.38) | (0.83) | 0.41 | (0.20) | 0.22 |
Total from investment operations | (0.05) | (0.54) | 0.73 | 0.16 | 0.60 |
Less distributions | |||||
From net investment income | (0.33) | (0.31) | (0.32) | (0.36) | (0.38) |
From net realized gain | (0.03) | (0.07) | — | (0.08) | (0.01) |
Total distributions | (0.36) | (0.38) | (0.32) | (0.44) | (0.39) |
Net asset value, end of period | $9.74 | $10.15 | $11.07 | $10.66 | $10.94 |
Total return (%)2 | (0.38) | (5.08) | 6.93 | 1.40 | 5.76 |
Ratios and supplemental data | |||||
Net assets, end of period (in millions) | $30 | $12 | $9 | $7 | $4 |
Ratios (as a percentage of average net assets): | |||||
Expenses before reductions | 0.693 | 0.63 | 0.66 | 0.67 | 0.68 |
Expenses including reductions | 0.633 | 0.63 | 0.65 | 0.66 | 0.67 |
Net investment income | 3.41 | 2.70 | 2.93 | 3.28 | 3.58 |
Portfolio turnover (%) | 23 | 17 | 23 | 22 | 22 |
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 | Includes interest expense of 0.04%. |
30 | JOHN HANCOCK California Municipal Bond Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
ANNUAL REPORT | JOHN HANCOCK California Municipal Bond Fund | 31 |
Total value at 5-31-23 | Level 1 quoted price | Level 2 significant observable inputs | Level 3 significant unobservable inputs | |
Investments in securities: | ||||
Assets | ||||
Municipal bonds | $279,972,312 | — | $279,972,312 | — |
Closed-end funds | 1,079,850 | $1,079,850 | — | — |
Short-term investments | 3,774,313 | 3,774,313 | — | — |
Total investments in securities | $284,826,475 | $4,854,163 | $279,972,312 | — |
32 | JOHN HANCOCK California Municipal Bond Fund | ANNUAL REPORT |
TOB floaters outstanding | $3,870,000 |
Interest rate (%) | 3.44% |
Collateral for TOB floaters outstanding | $5,907,864 |
Average TOB floaters outstanding | $3,510,385 |
Average interest rate (%) | 3.01% |
ANNUAL REPORT | JOHN HANCOCK California Municipal Bond Fund | 33 |
May 31, 2023 | May 31, 2022 | |
Ordinary income | $153,777 | $178,362 |
Exempt Income | 8,077,742 | 5,448,653 |
Long-term capital gains | 789,526 | 1,293,277 |
Total | $9,021,045 | $6,920,292 |
34 | JOHN HANCOCK California Municipal Bond Fund | ANNUAL REPORT |
Statement of operations location - Net realized gain (loss) on: | |
Risk | Futures contracts |
Interest rate | $254,751 |
ANNUAL REPORT | JOHN HANCOCK California Municipal Bond Fund | 35 |
Statement of operations location - Change in net unrealized appreciation (depreciation) of: | |
Risk | Futures contracts |
Interest rate | $(93,840) |
36 | JOHN HANCOCK California Municipal Bond Fund | ANNUAL REPORT |
Class | Expense reduction |
Class A | $103,071 |
Class C | 3,035 |
Class I | 30,467 |
Class | Expense reduction |
Class R6 | $14,156 |
Total | $150,729 |
Class | Rule 12b-1 Fee |
Class A | 0.15% |
Class C | 1.00% |
ANNUAL REPORT | JOHN HANCOCK California Municipal Bond Fund | 37 |
Class | Distribution and service fees | Transfer agent fees |
Class A | $267,922 | $50,101 |
Class C | 58,503 | 1,670 |
Class I | — | 12,313 |
Class R6 | — | 1,922 |
Total | $326,425 | $66,006 |
Year Ended 5-31-23 | Year Ended 5-31-22 | |||
Shares | Amount | Shares | Amount | |
Class A shares | ||||
Sold | 5,346,401 | $52,160,877 | 3,475,052 | $35,958,758 |
Distributions reinvested | 596,376 | 5,808,527 | 480,558 | 5,172,648 |
Repurchased | (4,447,616) | (43,216,692) | (2,511,522) | (26,776,209) |
Net increase | 1,495,161 | $14,752,712 | 1,444,088 | $14,355,197 |
Class C shares | ||||
Sold | 90,279 | $886,250 | 54,621 | $584,065 |
Distributions reinvested | 14,246 | 138,718 | 20,006 | 216,103 |
Repurchased | (372,372) | (3,634,831) | (336,438) | (3,607,882) |
Net decrease | (267,847) | $(2,609,863) | (261,811) | $(2,807,714) |
Class I shares | ||||
Sold | 6,480,980 | $63,457,049 | 898,445 | $9,316,500 |
Distributions reinvested | 173,875 | 1,693,883 | 45,219 | 486,133 |
Repurchased | (1,970,598) | (19,157,990) | (302,675) | (3,245,664) |
Net increase | 4,684,257 | $45,992,942 | 640,989 | $6,556,969 |
38 | JOHN HANCOCK California Municipal Bond Fund | ANNUAL REPORT |
Year Ended 5-31-23 | Year Ended 5-31-22 | |||
Shares | Amount | Shares | Amount | |
Class R6 shares | ||||
Sold | 2,712,508 | $26,429,221 | 853,754 | $8,900,445 |
Distributions reinvested | 81,253 | 792,535 | 32,377 | 347,902 |
Repurchased | (943,750) | (9,183,384) | (440,953) | (4,591,338) |
Net increase | 1,850,011 | $18,038,372 | 445,178 | $4,657,009 |
Total net increase | 7,761,582 | $76,174,163 | 2,268,444 | $22,761,461 |
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 | 377,605 | — | $78,751,664 | $(74,981,410) | $3,997 | $62 | $246,272 | — | $3,774,313 |
ANNUAL REPORT | JOHN HANCOCK California Municipal Bond Fund | 39 |
40 | JOHN HANCOCK CALIFORNIA MUNICIPAL BOND FUND | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK CALIFORNIA MUNICIPAL BOND FUND | 41 |
• | 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; |
42 | JOHN HANCOCK CALIFORNIA MUNICIPAL BOND FUND | ANNUAL REPORT |
• | The Fund did not experience any breaches of the 15% limit on illiquid investments, or any applicable HLIM, that would require reporting to the Securities and Exchange Commission; |
• | 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 | 43 |
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 | 186 |
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 | ||
Board Member, United of Omaha Life Insurance Company (since 2022). Board Member, Mutual of Omaha Investor Services, Inc. (since 2022). 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). | ||
William H. Cunningham,2 Born: 1944 | 1989 | 184 |
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 | 186 |
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). | ||
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). |
44 | 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 |
Deborah C. Jackson, Born: 1952 | 2008 | 185 |
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 | 1994 | 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). | ||
Gregory A. Russo, Born: 1949 | 2009 | 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). |
ANNUAL REPORT | JOHN HANCOCK CALIFORNIA MUNICIPAL BOND FUND | 45 |
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 | 184 |
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). | ||
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). |
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). |
46 | JOHN HANCOCK CALIFORNIA MUNICIPAL BOND FUND | ANNUAL REPORT |
Principal officers who are not Trustees (continued) | |
Name, year of birth Position(s) held with Trust Principal occupation(s) during past 5 years | Current Position(s) with the Trust since |
Trevor Swanberg, Born: 1979 | 2020 |
Chief Compliance Officer | |
Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2020); Deputy Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (2019–2020); Assistant Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (2016–2019); Vice President, State Street Global Advisors (2015–2016); Chief Compliance Officer of various trusts within the John Hancock Fund Complex (since 2016, including prior positions). |
1 | Each Trustee holds office until his or her successor is duly 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. |
* | Elected to serve as Independent Trustee effective as of September 9, 2022. |
† | Elected to serve as Non-Independent Trustee effective as of September 9, 2022. |
ANNUAL REPORT | JOHN HANCOCK CALIFORNIA MUNICIPAL BOND FUND | 47 |
Steven R. Pruchansky, Vice Chairperson
Andrew G. Arnott†
James R. Boyle
William H. Cunningham*
Grace K. Fey
Noni L. Ellison^
Dean C. Garfield^
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
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 |
48 | JOHN HANCOCK CALIFORNIA MUNICIPAL BOND FUND | ANNUAL REPORT |
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.
200 Berkeley Street, Boston, MA 02116-5010, 800-225-5291, jhinvestments.com
MF2932945 | 53A 5/23 |
ITEM 2. CODE OF ETHICS.
As of the end of the year, May 31, 2023, 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 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, 2023 and 2022. These fees were billed to the registrant and were approved by the registrant's audit committee.
Fund | May 31, 2023 | May 31, 2022 |
John Hancock California Municipal Bond Fund | $47,591 | $45,022 |
(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 a software licensing fee. Amounts billed to the registrant were as follows:
Fund | May 31, 2023 | May 31, 2022 |
John Hancock California Municipal Bond Fund | $1,134 | $ 776 |
Amounts billed to control affiliates were $121,890 and $119,500 for the fiscal years ended May 31, 2023 and 2022, 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, 2023 and 2022. 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, 2023 | May 31, 2022 |
John Hancock California Municipal Bond Fund | $4,027 | $3,835 |
(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,
2023 and 2022:
Fund | May 31, 2023 | May 31, 2022 |
John Hancock California Municipal Bond Fund | $57 | $305 |
(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, 2023, 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 $1,236,793 for the fiscal year ended May 31, 2023 and $950,568 for the fiscal year ended May 31, 2022.
(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.
(i)Not applicable.
(j)Not applicable.
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 – retired effective December 31, 2022
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.
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/ Kristie M. Feinberg |
| ------------------------------ |
| Kristie M. Feinberg |
| President |
Date: | July 13, 2023 |
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/ Kristie M. Feinberg |
| ------------------------------- |
| Kristie M. Feinberg |
| President |
Date: | July 13, 2023 |
By: | /s/ Charles A. Rizzo |
| -------------------------------- |
| Charles A. Rizzo |
| Chief Financial Officer |
Date: | July 13, 2023 |