Securities Act Registration No. 333-_______
U.S. Securities And Exchange Commission
Washington, D.C. 20549
Form N-14
Registration Statement Under The Securities Act Of 1933
[ ] Pre-Effective Amendment No. __ [ ] Post Effective Amendment No. __
(Check appropriate box or boxes)
John Hancock Variable Series Trust I
(Exact Name of Registrant as Specified in Declaration of Trust)
197 Clarendon Street
Boston, Massachusetts 02117
(Address of Principal Executive Offices)
Registrant's Telephone Number: (617) 572-8020
Name and Address of Agent for Service: Copy to:
ARNOLD R. BERGMAN, ESQUIRE THOMAS C. LAUERMAN, ESQUIRE
John Hancock Life Insurance Company Foley & Lardner
197 Clarendon Street 3000 K Street, N.W.
Boston, MA 02117 Suite 500
Washington, D.C. 20007
Approximate Date of Proposed Public Offering: As soon as practicable after this
registration statement becomes effective under the Securities Act of 1933. It is
proposed that this filing will become effective on November 15, 2001 pursuant to
Rule 488 under the Act.
Pursuant to Rule 429 under the Act, the prospectus in this registration
statement also relates to registrant's currently effective registration
statement on Form N-1A, File No. 33-2081. No filing fee is due, in reliance on
Section 24(f) of the Act.
The title of the securities being registered is "shares of beneficial interest."
November __, 2001
Dear Contract or Certificate Owner:
I am writing to ask for your vote on important matters concerning your
investment in certain funds within your John Hancock variable annuity or
variable life insurance contract.
Your fund's trustees are proposing the merger of certain funds in the John
Hancock Variable Series Trust I (the "Acquired Funds") into certain other
similar funds in the John Hancock Variable Series Trust I (the "Acquiring
Funds"), as described in the enclosed proxy materials and summarized in the
questions and answers on the following pages.
The Board of Trustees considered the following matters, among others, in
approving the proposals:
o The main purpose of combining the funds as described in the proxy is to
enable them to be managed more effectively and efficiently. In particular,
in each case the acquired fund has not grown large enough to be operated as
economically and as effectively as desirable on a long-term basis. Nor does
the acquired fund have prospects for improving its growth rate for the
foreseeable future.
o The combination of the acquired fund and the acquiring fund will not result
in any increase in the total fees and other expenses borne by any
shareholder over time. In fact, on a continuing basis, shareholders can
expect to benefit from lower overall expenses than if the two funds remained
separate. Combining the funds will not result in any dilution of the value
of your interest or that of any shareholder of either fund.
o The investment goals of the combining funds are the same with only one
partial exception. The investment goal of the Mid Cap Blend Fund is long-
term capital appreciation. The investment goal of the acquiring Growth &
Income Fund adds income, with the investment goal for that fund being income
and long-term capital appreciation.
THE FUND MERGER PROPOSALS HAVE BEEN UNANIMOUSLY APPROVED BY EACH FUND'S BOARD OF
TRUSTEES, WHO BELIEVE THE MERGERS WILL BENEFIT YOU. This includes all of the
trustees who are independent of John Hancock. The enclosed proxy statement
contains further explanation and important details of the reorganizations, which
I strongly encourage you to read before voting.
YOUR VOTE MAKES A DIFFERENCE!
No matter what size your investment may be, your vote is important. Please read
the enclosed materials, and complete, sign and return the enclosed proxy
ballot(s) to us immediately. Your prompt response will help avoid the need for
additional mailings. For your convenience, we have provided a postage-paid
envelope.
If you have any questions or need additional information, please contact your
Investment Professional or call a John Hancock Service Representative at
1-800-824-0335, Monday through Friday between 8:00 A.M. and 8:00 P.M. Eastern
Time. I thank you for your prompt vote on this matter.
Sincerely,
Michele G. Van Leer
Chairman
Insurance products are issued by John Hancock Life Insurance Company or John
Hancock Variable Life Insurance Company* (*not licensed in New York), Boston, MA
02117. Securities products are distributed by John Hancock Funds, Inc., Member
NASD and Signator Investors, Inc., Member NASD, SIPC.
Q&A FUND MERGER PROXY
---------------------
Q. WHAT ARE THE CHANGES BEING PROPOSED?
A. Generally, these proposals focus on merging funds to create combined funds
which have significantly larger assets and offer a greater opportunity for
future growth.
Specifically, the trustees of your fund(s) are proposing the following mergers:
ACQUIRED FUND ACQUIRING FUND
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PROPOSAL 1 Large Cap Value CORE/sm/ II Large Cap Value COREsm
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PROPOSAL 2 Large/Mid Value II Large/Mid Value
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PROPOSAL 3 Active Bond II Active Bond
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PROPOSAL 4 Aggressive Balanced Managed
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PROPOSAL 5 Mid Cap Blend Growth & Income
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Q. WILL THIS CHANGE AFFECT THE NUMBER OF UNITS I CURRENTLY HAVE? WILL THERE BE
ANY TAX IMPLICATIONS?
A. No. There will be no impact on the number of units you have invested in your
variable life insurance or variable annuity contract and there are no tax
implications (no Form 1099R will be generated)
Q. WILL THE TRANSFER COUNT TOWARDS THE 12 FREE TRANSFERS ALLOWED PER CONTRACT
YEAR?
A. No, the merger transfer will be free and it will not count toward your
allowable 12 free transfers per year.
Q. WHAT IF I DO NOT WANT TO HAVE ANY UNITS OF THE ACQUIRED FUND TRANSFERRED TO
THE PROPOSED ACQUIRING FUND?
A. Prior to the merger, you may contact an Annuity Service Representative at 1-
800-824-0335 or a Life Service Representative at 1-800-XXX-XXXX, Monday through
Friday between 8:00 A.M. - 8:00 P.M. Eastern Time and request a transfer to
another investment option or Fixed Account (if available in your state). Please
consult your Investment Professional prior to reallocating your assets.
Q. HOW DO I VOTE?
A. Follow two simple steps:
STEP 1: First, read the sections of the accompanying proxy statement/prospectus
that apply to your fund(s).
STEP 2: Finally, complete the enclosed voting card for each of your funds and
return it in the enclosed postage-paid envelope. If you have more than one card,
you need to complete, sign and mail each one.
Q. DOES MY VOTE MAKE A DIFFERENCE?
A. Whether you are a large or small investor, your vote is important, and we
urge you to participate in this process to ensure that John Hancock represents
your wishes when it casts votes at the shareholder meeting. The Board voted
unanimously to recommend these changes for your fund(s), and your approval is
needed to implement the changes.
LARGE CAP VALUE CORESM II FUND*
LARGE/MID CAP VALUE II FUND**
ACTIVE BOND II FUND***
AGGRESSIVE BALANCED FUND
MID CAP BLEND FUND
(each a separate investment "Fund" of John Hancock Variable Series Trust I,
197 Clarendon Street, Boston, MA 02117,
TOLL FREE NUMBER: 1-800-732-5443)
NOTICE OF MEETING OF SHAREHOLDERS
SCHEDULED FOR DECEMBER 5, 2001
This is the formal agenda for each Fund's shareholders meeting. It tells what
matters will be voted on and the time and place of the meeting. You are
receiving this notice because you own a variable annuity or variable life
insurance contract or certificate that was participating one or more of the
above-listed Funds as of the record date for the meeting. The insurance company
that issued your contract or certificate will vote the Fund shares attributable
to your contract or certificate in accordance with your instructions.
To the shareholders of each Fund:
A joint shareholders meeting for your Fund(s) will be held at 197 Clarendon
Street, Boston, Massachusetts on Wednesday, December 5, 2001 at 11:00 a.m.,
Eastern Time, to consider the following:
1. A proposal to combine the Large Cap Value CORESM II Fund with the Large Cap
Value CORE Fund of John Hancock Variable Series Trust I. Shareholders in the
Large Cap Value CORESM II Fund would receive Large Cap Value CORESM Fund
shares having the same value as their prior Large Cap Value CORESM II Fund
shares. The Funds' Board of Trustees recommends that shareholders vote FOR
this proposal.
2. A proposal to combine the Large/Mid Cap Value II Fund with the Large/Mid Cap
Value Fund of John Hancock Variable Series Trust I. Shareholders in the
Large/Mid Cap Value II Fund would receive Large /Mid Cap Value Fund shares
having the same value as their prior Large/Mid Cap Value II Fund shares. The
Funds' Board of Trustees recommends that shareholders vote FOR this proposal
3. A proposal to combine the Active Bond II Fund with the Active Bond Fund of
John Hancock Variable Series Trust I. Shareholders in the Active Bond II
Fund would receive Active Bond Fund shares having the same value as their
prior Active Bond II Fund shares. The Funds' Board of Trustees recommends
that shareholders vote FOR this proposal.
____________________
* Known as the American Leaders Large Cap Value Fund prior to January 1,
2001.
** Known as the Mid Cap Value Fund prior to January 1, 2001.
*** Known as the Core Bond Fund prior to January 1, 2001.
4. A proposal to combine the Aggressive Balanced Fund with the Managed Fund of
John Hancock Variable Series Trust I. Shareholders in the Aggressive
Balanced Fund would receive Managed Fund shares having the same value as
their prior Aggressive Balanced Fund shares. The Funds' Board of Trustees
recommends that shareholders vote FOR this proposal.
5. A proposal to combine the Mid Cap Blend Fund with the Growth & Income Fund
of John Hancock Variable Series Trust I. Shareholders in the Mid Cap Blend
Fund would receive Growth & Income Fund shares having the same value as
their prior Mid Cap Blend Fund shares. The Funds' Board of Trustees
recommends that shareholders vote FOR this proposal.
6. Any other business that may properly come before the meeting.
Shareholders of record as of the close of business on October 10, 2001 are
entitled to vote at the meeting and any related follow-up meetings
(adjournments).
Whether or not you expect to attend the meeting, please complete and return the
enclosed proxy card (voting instruction card). If contract and certificate
owners do not return their proxies in sufficient numbers, your Fund could incur
the cost of extra solicitations.
By order of the Board of Trustees,
Michele G. Van Leer
Chairman, Board of Trustees
November __, 2001
2
LARGE CAP VALUE CORE/SM/ II FUND*
LARGE/MID CAP VALUE II FUND**
ACTIVE BOND II FUND***
AGGRESSIVE BALANCED FUND
MID CAP BLEND FUND
(each an "Acquired Fund" and a separate investment fund of John Hancock
Variable Series Trust I,
197 Clarendon Street, Boston, MA 02117,
toll free number: 1-800-732-5443)
LARGE CAP VALUE CORE/SM/ FUND
LARGE/MID CAP VALUE FUND
ACTIVE BOND FUND
MANAGED FUND
GROWTH & INCOME FUND
(each an "Acquiring Fund" and a separate investment fund of John Hancock
Variable Series Trust I)
COMBINED PROXY STATEMENT AND PROSPECTUS
Dated: November __, 2001
This combined Proxy Statement/Prospectus is being furnished to you in
connection with a Special Meeting of Shareholders of the five "Acquired Funds"
listed above. The meeting is for the purpose of approving a proposed combination
of each Acquired Fund with one of the "Acquiring Funds" listed above. Each
such combination is the subject of a separate "Proposal" in this Proxy
Statement/Prospectus.
--------------------
* Known as the American Leaders Large Cap Value Fund prior to January 1, 2001.
** Known as the Mid Cap Value Fund prior to January 1, 2001.
*** Known as the Core Bond Fund prior to January 1, 2001.
Shareholders in an Acquired Fund on the record date of the meeting can
vote for the Proposal relating to that Fund as follows:
---------------------------------------------------------------------------------------------------------------
FUND PROPOSAL
---------------------------------------------------------------------------------------------------------------
1 2 3 4 5
---------------------------------------------------------------------------------------------------------------
Large Cap Value CORE/SM/ II X
---------------------------------------------------------------------------------------------------------------
Large/Mid Cap Value II X
---------------------------------------------------------------------------------------------------------------
Active Bond II X
---------------------------------------------------------------------------------------------------------------
Aggressive Balanced X
---------------------------------------------------------------------------------------------------------------
Mid Cap Blend X
---------------------------------------------------------------------------------------------------------------
This Proxy Statement/Prospectus contains information a shareholder of an
Acquired Fund should know before voting on the combination proposed for that
Fund. Please read it and retain it for future reference.
How to Get More Information:
The Trust is a series-type open-end management investment company, and
has filed with the Securities and Exchange Commission (the "SEC") a Statement of
Additional Information, dated November __, 2001, relating to the proposed
combination of the Acquired and Acquiring Funds. The Statement of Additional
Information is incorporated by reference into this Proxy Statement/Prospectus. A
prospectus for the Acquired Funds, dated May 1, 2001, (the "Acquired Fund
Prospectus") also is on file with the SEC and is incorporated into this Proxy
Statement/Prospectus by reference. You can request a free copy of any of these
documents, using the address or toll-free number shown above.
The SEC maintains a web site at http://www.sec.gov where you can find the
prospectus and statement of additional information described above and other
information about the Acquired and Acquiring Funds.
The Securities and Exchange Commission has not approved or disapproved
the securities described in this Proxy Statement/Prospectus, and has not passed
on the accuracy or the adequacy of this Proxy Statement/Prospectus. Anyone who
tells you otherwise is committing a federal crime.
2
CONTENTS OF THIS PROXY STATEMENT/PROSPECTUS
This Proxy Statement/Prospectus provides information about each
Proposal that will be voted on, as follows:
Page No.
--------
Proposal 1: Combination of the Large Cap Value CORE/SM/ II
Fund and the Large Cap Value CORE/SM/ Fund.................... 4
Proposal 2: Combination of the Large/Mid Cap Value II Fund
and the Large/Mid Cap Value Fund.............................. 10
Proposal 3: Combination of the Active Bond II Fund and the
Active Bond Fund.............................................. 16
Proposal 4: Combination of the Aggressive Balanced Fund and
the Managed Fund.............................................. 24
Proposal 5: Combination of the Mid Cap Blend Fund and the
Growth & Income Fund.......................................... 37
The discussion of each Proposal that begins at the page numbers listed above
includes material such as:
. Synopsis of the Proposed Combination
. Board Consideration of the Combination
. Reasons for Combining the Funds
. Further Comparison of the Acquiring Fund and the Acquired Fund
Further back in this Proxy Statement/Prospectus is the following material of
relevance to all the Proposals:
Page No.
--------
Voting Procedures and Conduct of the Shareholders' Meeting 47
Capitalization of the Funds 49
Distribution of Fund Shares 51
Net Asset and Share Valuations 51
Agreement and Plan of Reorganization 52
Information Filed with the Securities and Exchange Commission 52
Appendix A - Basic Information About the Acquiring Funds A-1
Appendix B - Performance Information Pertaining to the Acquiring Funds B-1
Appendix C - Share Ownership Information C-1
3
PROPOSAL 1: COMBINATION OF LARGE CAP VALUE CORE/SM/ II FUND (the
"Acquired Fund") AND LARGE CAP VALUE CORE/SM/ FUND (the
"Acquiring Fund")
Synopsis of the Proposed Combination
The Acquired Fund and the Acquiring Fund are very similar Funds:
. Each is a separate investment fund of John Hancock Variable
Series Trust I (the "Trust"), which is a Massachusetts Business
Trust;
. Each shares the same investment goals, policies and strategies;
. Each has the same investment adviser and (for day-to-day
portfolio management) the same sub-adviser, who manages the Funds
in substantially the same manner; and
. Each is subject to substantially the same risks. These include
primarily the risk that the value of the Fund's assets may fall
(as well as rise) due to changes in securities market conditions;
the risk that the Funds' portfolio managers will be unsuccessful
in making investment decisions that achieve their intended
results; and the risk that the types of large capitalization,
value-oriented equity investments that the Funds focus on will
fall out of favor and under perform other types of securities.
Investments in certain "derivative" instruments are a secondary
risk of the Funds. (Please refer to Appendix A at the end of this
Proxy Statement/Prospectus for additional information about these
risk factors.)
Because these two Funds are so similar, the main purpose of combining them
is to enable the Funds to be managed more effectively and efficiently. In
particular, the Acquired Fund has not grown large enough to be economically
viable on a long-term basis. Nor does the Acquired Fund have prospects for
attaining such viability for the foreseeable future.
The combination of the Acquired Fund and the Acquiring Fund will not result
in any increase in the total fees and expenses borne by any shareholder. In
fact, the combination will make it more likely that the level of fees and
expenses that Acquired Fund shareholders bear will go down over time. Combining
the Funds will not result in any dilution of the value of your interest or that
of any shareholder of either Fund.
4
Fees and Expenses
The following table shows each Fund's fees and expenses for the twelve
months ended June 30, 2001, as well as on a "pro-forma" basis as if the
combination had occurred at the beginning of that period.
Large Cap Value Large Cap Value Pro-Forma of Combined
CORE/SM/ II Fund CORE/SM/ Fund Acquired Fund and
(Acquired Fund) (Acquiring Fund) Acquiring Fund
----------------------- ----------------------- ------------------------
Type of Fee or Expense/1/
-------------------------
Sales Charge Imposed on Purchases........... None None None
Deferred Sales Charge....................... None None None
Sales Charge Imposed on Reinvested
Dividends................................. None None None
Redemption Fee.............................. None None None
Exchange Fee................................ None None None
Maximum Account Fee......................... None None None
Distribution or Service (12b-1) Fees........ None None None
Investment Management Fees.................. .75%/2/ .75% .75%
Other Expenses (Before Reimbursement/3/).... .66% .20% .31%
Total Annual Fund Operating Expenses
(Before Reimbursement/3/)......... .1.41%/2/ .95% 1.06%
Reimbursement from Investment Manager/3/.... .56% .10% .21%
Total Annual Fund Operating Expenses
(After Reimbursement/3/).......... .85%/2/ .85% .85%
---------------------
/1/ The fees and expenses shown are expressed as an annual percentage of the
Fund's average daily net assets.
/2/ Restated to reflect a .05% investment management fee decrease effective as
of May 1, 2001.
/3/ The expense reimbursement is pursuant to a commitment in each Fund's
investment management agreement that the investment manager will reimburse
the Fund for most Other Expenses that exceed .10% per annum.
Examples of Fund Expenses
The following examples are intended to help you compare the cost of
investing in the Acquired Fund with the cost of investing in the Acquiring Fund.
The examples assume that Fund expenses continue at the combined rate shown in
the table above.
The examples assume that a shareholder invests $10,000 in each alternative
for the time periods indicated and then redeems all of the shareholder's shares
at the end of those periods. The examples also assume that the shareholder's
investment has a 5% return each year. (The examples do not reflect the fees and
expenses associated with variable annuity and variable life insurance contracts
for which the Funds serve as investment vehicles.) Although your actual returns
may be higher or lower, based on these assumptions your cost would be:
5
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
The Acquired Fund (Large
Cap Value
CORE/SM/ II Fund) ............... $87 $272 $473 $1,053
The Acquiring Fund
(Large Cap Value
CORE/SM/ Fund ................... $87 $272 $473 $1,053
Pro-Forma of Acquired
Fund and Acquiring
Fund Combined ................... $87 $272 $473 $1,053
Terms of Proposed Combination
In the combination, the Acquiring Fund will acquire all of the Acquired
Fund's assets and assume all of its liabilities. Also, the Acquiring Fund will
issue its shares in place of all then outstanding shares of the Acquired Fund.
The combination has been structured as a tax-free reorganization. Therefore, the
combination will have no direct or indirect tax consequences for you.
Although each Fund's share of expenses relating to the combination is
expected to be approximately $12,000, John Hancock Life Insurance Company ("John
Hancock") is expected to bear those expenses, rather than the Funds. This is
because John Hancock bears most Fund operating expenses over a certain amount,
and this includes the type of costs incurred in the combination. It is expected
that the Funds' expenses will already exceed this expense "cap" and that,
therefore, the combination will not result in any actual additional costs for
either the Acquired Fund or the Acquiring Fund.
The combination will take place at the Funds' regular net asset values per
share. This means that the value of each shareholder's account after the
combination will be exactly the same as if the combination had not occurred.
Information about calculation of net asset values and per share values appears
under "Net Asset and Share Valuations." Nor will there be any change in the
rates of any charges the insurance company imposes under your contract or
certificate.
The Trust's Board of Trustees has unanimously approved and recommends the
combination of the Funds as being in the best interests of the Acquired Fund and
its shareholders.
Board Consideration of the Combination
The Trust's Board of Trustees has determined that combining the Acquired
Fund with the Acquiring Fund is in the best interests of the Acquired Fund and
its shareholders, and the Board of Trustees unanimously recommends approval of
the combination by the shareholders of the Acquired Fund at the meeting.
The Trustees considered this matter at a Board meeting held on September
12, 2001. The factors relevant to the Trustees' conclusions included the
following:
6
. The fact that the Acquired Fund and the Acquiring Fund are now
identical, except that, at the time of the Board meeting, the
Acquired Fund had approximately $7 million of assets, while the
Acquiring Fund had approximately $44 million.
. The fact that, due to its small size, the Acquired Fund is not
economic to operate, and there are no reasonable prospects for
the Acquired Fund, by itself, the remedy this.
. The fact that a combination with the Acquiring Fund would address
this problem in a way that permits the shareholders of the
Acquired Fund to continue to have the same investment program, as
well as the potential future benefits of lower fee and expense
levels and more effective management.
. The performance record of the Acquiring Fund since its
commencement of operations on August 31, 1999. Information about
this performance is set forth in Appendixes A and B at the end of
this Proxy Statement/Prospectus. The Acquired Fund's performance
record was less relevant to the Board, for two reasons. First,
part of that performance was achieved by a sub-adviser that has
now been terminated and that used a somewhat different investment
program. Second, because the investment program and sub-adviser
of the two Funds are now the same, the future performance of the
two Funds should not differ, except to the extent that the
Acquired Fund cannot be managed as efficiently and effectively
due to its smaller size.
. The fact that the combination will not in any way disadvantage
either Fund.
Reasons for Combining the Funds
Recent Developments
As of January 1, 2001, upon John Hancock's recommendation, changes were
made in the Acquired Fund's investment program. Most importantly, Federated
Investment Management Company was replaced as the Fund's sub-adviser.
Also as of January 1, 2001, the Trustees, consistent with a recommendation
of John Hancock, appointed Goldman Sachs Asset Management ("Goldman Sachs") to
take over as the sub-adviser to the Acquired Fund. Subsequently, effective May
1, 2001, the Fund's shareholders approved the Fund's new sub-investment
management agreement with Goldman Sachs and approved related changes in the
Fund's investment management agreement with John Hancock.
Among the reasons why John Hancock and the Trust's Board of Trustees
selected Goldman Sachs as the Acquired Fund's new sub-adviser was their
favorable evaluation of Goldman Sachs' service to the Trust's Large Cap Value
CORE/SM/ Fund. (Goldman Sachs has been the sub-adviser to that Fund since its
inception on August 31, 1999.) The overall
7
investment goal and strategy of the Acquired Fund did not change when Goldman
Sachs assumed its sub-advisory responsibilities. Goldman Sachs, however, did
bring its own unique capabilities to management of the Fund, including Goldman
Sachs' proprietary "CORE/SM/" quantitative model. "CORE/SM/" is a service mark
of Goldman Sachs. (Further information on this appears in Appendix A at the end
of this Proxy Statement/Prospectus.)
Accordingly, since taking over as the Acquired Fund's sub-adviser, Goldman
Sachs has sought to manage the Acquired Fund in the same way as it manages the
Large Cap Value CORE/SM/ Fund. To reflect this new approach, the Acquired Fund
was renamed "Large Cap Value CORE/SM/ II Fund."
Because the Acquired Fund and the Acquiring Fund are now substantially
identical (except for their relative sizes), John Hancock and its affiliated
life insurance companies have stopped offering the Acquired Fund as an
investment option under its variable life insurance and variable annuity
contracts. This means that the Acquired Fund has no practical means of
increasing sales of its shares. See "Distribution of Fund Shares."
Potential Benefits from Combining the Funds
The proposed combination addresses the problem that the Acquired Fund is
currently too small to be economic and has poor prospects for increasing its
size through sales of additional shares. Because, as discussed above, the
Acquired Fund is now substantially similar to the Large Cap Value CORE/SM/ Fund,
it is possible to combine these two funds without disrupting their investment
program or incurring any additional brokerage commissions or other portfolio
"turnover" costs. As a result of the combination, Acquired Fund shareholders
will be part of a significantly larger Fund that can be operated more
economically and effectively.
A larger size can permit a Fund to negotiate lower prices for certain
items. For example, the investment management fees that the Funds pay to John
Hancock are subject to automatic reductions (commonly referred to as "break
points") as a Fund's assets increase. Thus, once the Acquired Fund's assets are
added to those of the Acquiring Fund, it becomes more likely that these "break
points" will come into play in the future. This would make the percentage of
assets paid as investment management fees lower than the rate the Acquired Fund
would have paid on its assets alone. The Acquired Fund's shareholders would
directly benefit from any such cost reductions.
Combining the Funds will also make available certain efficiencies that will
reduce the level of other operating expenses below what the Acquired Fund alone
would pay. This increases the likelihood those expenses will in the future fall
below the Fund's .10% expense cap. Acquired Fund shareholders would directly
benefit from this.
Similarly, with more assets to invest, the combined Funds should in some
cases be able to negotiate prices and commission rates on portfolio transactions
that are more favorable than the Acquired Fund alone could achieve.
8
In addition, it is more difficult to achieve what the sub-adviser regards
as an optimal level of diversification for investments of the Acquired Fund than
would be the case for the combined Funds. This is because the Acquired Fund has
a small amount of assets in comparison to what the combined Funds will have.
Further Comparison of the Acquiring Fund and the Acquired Fund
Investment Goal
The Acquiring Fund and the Acquired Fund share the same investment goal:
long-term capital appreciation and dividend income.
The investment goal of both Funds is "non-fundamental," which means that it
may be changed by the Board of Trustees without shareholder approval.
Investment Strategies
The investment strategies for the Acquiring Fund and the Acquired Fund are
identical. Both invest primarily in a diversified mix of common stocks of large
established U.S. companies that are believed to offer favorable prospects for
increasing dividends and growth of capital.
Goldman Sachs uses substantially the same personnel and analytical
techniques in managing each of these Funds.
For additional details about the Funds' investment strategies, please refer
to Appendix A at the end of this Proxy Statement/Prospectus.
Fundamental Investment Restrictions
The investment restrictions adopted by each Fund as "fundamental" are set
forth under the caption "The Funds' Fundamental Investment Restrictions" in
Attachment 1 to the Statement of Additonal Information referred to on the cover
page of this Proxy Statement/Prospectus. A "fundamental" investment
restriction is one that cannot be changed without approval of the Fund's
shareholders. These are identical for both Funds.
Investment Advisory Services
John Hancock serves as investment adviser to both the Acquired Fund and the
Acquiring Fund. In this capacity, John Hancock advises each Fund in connection
with policy decisions; administers the Funds' day-to-day operations; provides
the Funds with personnel, office space, equipment and supplies; maintains Fund
records; and supervises the activities of the Funds' sub-adviser and other
service providers.
The Acquired Fund and the Acquiring Fund pay investment management fees to
John Hancock pursuant to identical fee schedules: .75% per annum of the Fund's
first $50,000,000 of average daily net assets; 0.65% of the next $150,000,000;
and .60% of any additional amounts.
9
Prior to May 1, 2001, the Acquired Fund paid management fees to John Hancock at
a rate of .80% per annum for the first $50,000,000 of the Fund's average daily
net assets; .65% of the next $200,000,000; .60% of the next $250,000,000;
and .55% of any additional amounts.
In the investment management agreements for both the Acquiring and Acquired
Funds, John Hancock has committed to reimburse each Fund for most of its
operating expenses (other than investment management fees) in excess of .10% per
annum of the Fund's average daily net assets.
Goldman Sachs serves as sub-adviser for each Fund. In this capacity,
Goldman Sachs has primary responsibility for making investment decisions for the
Funds' investment portfolios and placing orders with brokers and dealers to
implement those decisions.
Goldman Sachs receives its compensation from John Hancock, and the Funds
pay no sub-management fees over and above the management fee they pay to John
Hancock. Goldman Sachs receives sub-management fees from John Hancock at the
same rate for the Acquiring Fund as for the Acquired Fund: .40% per annum of the
first $50,000,000 of each Fund's average daily net assets; .30% of the next $150
million; and .25% of any additional amounts.
PROPOSAL 2: COMBINATION OF LARGE/MID CAP VALUE II FUND (the "Acquired Fund")
AND LARGE/MID CAP VALUE FUND (the "Acquiring Fund")
Synopsis of the Proposed Combination
The Acquired Fund and the Acquiring Fund are very similar Funds:
. Each is a separate investment fund of John Hancock Variable
Series Trust I (the "Trust"), which is a Massachusetts Business
Trust;
. Each shares substantially the same investment goals, policies and
strategies;
. Each has the same investment adviser and (for day-to-day
portfolio management) the same sub-adviser, who manages the Funds
in substantially the same manner; and
. Each is subject to substantially the same risks. These include
primarily the risk that the value of the Fund's assets may fall
(as well as rise) due to changes in securities market conditions;
the risk that the Funds' portfolio managers will be unsuccessful
in making investment decisions that achieve their intended
results; the risk of investing in small and medium capitalization
companies; and the risk that the types of large and medium
capitalization, value-oriented equity investments that the Funds
focus on will fall out of
10
favor and underperform other types of securities. Investments in
certain "derivative" instruments and initial public offerings are
secondary risks of the Funds. (Please refer to Appendix A at the
end of this Proxy Statement/Prospectus for additional information
about these risk factors.)
Because these two Funds are so similar, the main purpose of combining them
is to enable the Funds to be managed more effectively and efficiently. The
combination of the Acquired Fund and the Acquiring Fund will not result in any
increase in the total fees and expenses borne by any shareholder. In fact,
shareholders can expect to benefit from lower levels of fees and expenses than
if the two Funds remained separate. Combining the Funds will not result in any
dilution of the value of your interest or that of any shareholder of either
Fund.
Fees and Expenses
The following table shows each Fund's fees and expenses for the twelve
months ended June 30, 2001, as well as on a "pro-forma" basis as if the
combination had occurred at the beginning of that period:
Large/Mid Cap Pro-Forma of Combined
Value II Fund Large/Mid Cap Value Acquired Fund and
(Acquired Fund) Fund (Acquiring Fund) Acquiring Fund
----------------------- ----------------------- ------------------------
Type of Fee or Expense/1/
-------------------------
Sales Charge Imposed on Purchases........... None None None
Deferred Sales Charge....................... None None None
Sales Charge Imposed on Reinvested
Dividends................................. None None None
Redemption Fee.............................. None None None
Exchange Fee................................ None None None
Maximum Account Fee......................... None None None
Distribution or Service (12b-1) Fees........ None None None
Investment Management Fees.................. .80%/2/ .93% .78%
Other Expenses (Before Reimbursement/3/).... .05% .30% .08%
Total Annual Fund Operating Expenses
(Before Reimbursement/3/)......... .85%/2/ 1.23% .86%
Reimbursement from Investment Manager/3/.... -- .20% --
Total Annual Fund Operating Expenses
(After Reimbursement/3/).......... .85%/2/ 1.03% .86%
---------------------
/1/ The fees and expenses shown are expressed as an annual percentage of the
Fund's average daily net assets.
/2/ Restated to reflect an investment management fee revision effective as of
May 1, 2001. Absent such revision the investment management fees would have
been .80%.
/3/ The expense reimbursement is pursuant to a commitment in each Fund's
investment management agreement that the investment manager will reimburse
the Fund for most Other Expenses that exceed .10% per annum.
11
Although the above table shows the level of pro-forma combined expenses
being very slightly higher than that of the Acquired Fund alone, John Hancock
and the Trust do not believe this will actually be the case for the periods
following the proposed combination. This is because the pro-forma combined
expenses in the table above are based on the actual expenses of the Acquired
Fund and the Acquiring Fund for the twelve months ended June 30, 2001. For
various reasons, these expenses were larger than normal. However, following the
proposed combination of the Funds, it is expected that the actual level of costs
and expenses borne by each Fund's shareholders will be lower than if the Funds
had remained separate.
Examples of Fund Expenses
The following examples are intended to help you compare the cost of
investing in the Acquired Fund with the cost of investing in the Acquiring Fund.
The examples assume that Fund expenses continue at the combined rate shown in
the table above. For reasons stated in the preceding paragraph, however, John
Hancock and the Trust believe that the actual level of costs and expenses borne
by each Fund's shareholders will be lower than if the Funds remain separate.
The examples assume that a shareholder invests $10,000 in each alternative
for the time periods indicated and then redeems all of the shareholder's shares
at the end of those periods. The examples also assume that the shareholder's
investment has a 5% return each year. (The examples do not reflect the fees and
expenses associated with variable annuity and variable life insurance contracts
for which the Funds serve as investment vehicles.) Although your actual returns
may be higher or lower, based on these assumptions your cost would be:
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
The Acquired Fund
(Large/Mid Cap Value
II Fund) ..................... $87 $271 $471 $1,047
The Acquiring Fund
(Large/Mid Cap Value
Fund) ........................ $105 $328 $568 $1,259
Pro-Forma of Acquired
Fund and Acquiring
Fund Combined ................ $87 $273 $475 $1,057
Terms of Proposed Combination
In the combination, the Acquiring Fund will acquire all of the Acquired
Fund's assets and assume all of its liabilities. Also, the Acquiring Fund will
issue its shares in place of all then outstanding shares of the Acquired Fund.
The combination has been structured as a tax-free reorganization. Therefore, the
combination will have no direct or indirect tax consequences for you.
The Funds' share of expenses relating to the combination are estimated to
be approximately $80,000 for the Acquired Fund and $46,000 for the Acquiring
Fund. This is not expected to be of relevance to the Acquiring Fund prior to the
combination of the two Funds.
12
This is because John Hancock Life Insurance Company ("John Hancock") bears most
Fund operating expenses over a certain amount, and this includes the type of
costs incurred in the combination. It is expected that, prior to the
combination, the expenses of the Acquiring Fund will already exceed this expense
"cap" and that, therefore, the combination will not result in any actual
additional costs to the Acquiring Fund during this time. Any such expenses
allocated to the Acquired Fund, or, after the combination, to the Acquiring
Fund, are expected to be more than offset by the expected lower effective
investment advisory fee rate that will result from the combination. Therefore,
the combination is not expected to result in any actual net costs for either the
Acquired Fund or the Acquiring Fund.
The combination will take place at the Funds' regular net asset values per
share. This means that the value of each shareholder's account after the
combination will be exactly the same as if the combination had not occurred.
Information about calculation of net asset values and per share values appears
under "Net Asset and Share Valuations." Nor will there be any change in the
rates of any charges the insurance company imposes under your contract or
certificate.
The Trust's Board of Trustees has unanimously approved and recommends the
combination of the Funds as being in the best interests of the Acquired Fund and
its shareholders.
Board Consideration of the Combination
The Trust's Board of Trustees has determined that combining the Acquired
Fund with the Acquiring Fund is in the best interests of the Acquired Fund and
its shareholders, and the Board of Trustees unanimously recommends approval of
the combination by the shareholders of the Acquired Fund at the meeting.
The Trustees considered this matter at a Board meeting held on September
12, 2001. The factors relevant to the Trustees' conclusions included the
following:
. The fact that the Acquired Fund and the Acquiring Fund are now
essentially identical, except that, at the time of the Board
meeting, the Acquired Fund had approximately $121 million of
assets, while the Acquiring Fund had approximately $37 million.
. The fact that a combination with the Acquiring Fund would permit
shareholders of the Acquired Fund to continue to have the same
investment program, as well as the expected benefits of lower
levels of fees and expenses.
. The performance record of the Acquiring Fund since its
commencement of operations on August 31, 1999. Information about
this performance is set forth in Appendixes A and B at the end of
this Proxy Statement/Prospectus. The Acquired Fund's performance
record was less relevant to the Board, because part of that
performance was achieved by a sub-adviser that has now been
terminated and that used a somewhat different investment program.
13
. The fact that the combination will not in any way disadvantage
either Fund.
Reasons for Combining the Funds
Recent Developments
As of January 1, 2001, upon John Hancock's recommendation, changes were
made in the Acquired Fund's investment program. Most importantly, Neuberger
Berman LLP was replaced as the Fund's sub-adviser.
Also as of January 1, 2001, the Trustees, consistent with a recommendation
of John Hancock, appointed Wellington Management Company ("Wellington") to take
over as the sub-adviser to the Acquired Fund. Subsequently, effective May 1,
2001, the Fund's shareholders approved the Fund's new sub-investment management
agreement with Wellington and approved related changes in the Fund's investment
management agreement with John Hancock.
Among the reasons why John Hancock and the Trust's Board of Trustees
selected Wellington as the Acquired Fund's new sub-adviser was their favorable
evaluation of Wellington's service to the Trust's Large/Mid Cap Value Fund.
(Wellington has been the sub-adviser to that Fund since its inception on August
31, 1999.) The overall investment goal and strategy of the Acquired Fund did not
change when Wellington assumed its sub-advisory responsibilities. As compared
with Neuberger Berman, however, Wellington does place more emphasis on the
dividend paying prospects of companies it invest in and tends to make more
investments in companies that do not have large market capitalizations.
Since taking over as the Acquired Fund's sub-adviser, Wellington has sought
to manage the Acquired Fund in the same way as it manages the Large Cap Value
CORE/SM/ Fund. To reflect this new approach, the Acquired Fund was renamed
"Large Cap Value CORE/SM/ II Fund."
Inasmuch as the Acquired Fund and the Acquiring Fund are now substantially
identical (except for their relative sizes), John Hancock and its affiliated
life insurance companies have stopped offering the Acquired Fund as an
investment option under their variable life insurance and variable annuity
contracts. See "Distribution of Fund Shares."
Potential Benefits from Combining the Funds
Because, as discussed above, the Acquired Fund is now substantially similar
to the Large/MidCap Value Fund, it is possible to combine these two funds
without disrupting their investment program or incurring any additional
brokerage commissions or other portfolio "turnover" costs. As a result of the
combination, Acquired Fund shareholders will be part of a significantly larger
Fund that can be operated more economically.
A larger size can permit a Fund to negotiate lower prices for certain
items. For example, the investment management fees that the Funds pay to John
Hancock are subject to automatic reductions (commonly referred to as "break
points") as a Fund's assets increase. Thus, once the
14
Acquired Fund's assets are added to those of the Acquiring Fund, the percentage
of such assets paid as investment management fees will be lower than the rate
the Acquired Fund would have paid on its assets alone. The Acquired Fund's
shareholders will directly benefit from such cost reductions.
Combining the two Funds also will result in certain efficiencies that are
expected to reduce the amount of other operating expenses below what the
Acquired Fund currently pays. Acquired Fund shareholders would directly benefit
from this.
Further Comparison of the Acquiring Fund and the Acquired Fund
Investment Goal
The Acquiring Fund and the Acquired Fund share the same investment goal:
long-term capital appreciation.
The investment goal of both Funds is "non-fundamental," which means that it
may be changed by the Board of Trustees without shareholder approval.
Investment Strategies
The investment strategies for the Acquiring Fund and the Acquired Fund are
identical. Both invest primarily in a diversified mix of common stocks of large
and medium-sized U.S. companies that are believed to offer favorable prospects
for increasing dividends and growth of capital.
Wellington uses substantially the same personnel and analytical techniques
in managing each of these Funds.
For additional details about the Funds' investment strategies, please refer
to Appendix A at the end of this Proxy Statement/Prospectus.
Fundamental Investment Restrictions
The investment restrictions adopted by each Fund as "fundamental" are set
forth under the caption "The Funds' Fundamental Investment Restrictions" in
Attachment 1 to the Statement of Additional Information referred to on the cover
page of this Proxy Statement/Prospectus. A "fundamental" investment restriction
is one that cannot be changed without approval of the Fund's shareholders.
In minor respects, the Acquired Fund's fundamental investment restrictions
are narrower than those of the Acquiring Fund. This means that the Acquiring
Fund theoretically could engage in certain practices that the Acquired Fund
could not. However, given the nature of the Fund's investment program, the
prospect is remote that the sub-adviser would ever exercise this broader
authority in any way that materially changes the character or risk profile of
15
the Acquiring Fund. Therefore, John Hancock does not regard the differences in
the Funds' Fundamental Investment Restrictions as material.
Investment Advisory Services
John Hancock serves as investment adviser to both the Acquired Fund and the
Acquiring Fund. In this capacity, John Hancock advises each Fund in connection
with policy decisions; administers the Funds' day-to-day operations; provides
the Funds with personnel, office space, equipment and supplies; maintains
Fund records; and supervises the activities of the Funds' sub-adviser and other
service providers.
The Acquired Fund and the Acquiring Fund pay investment management fees to
John Hancock pursuant to identical fee schedules: .95% per annum of the Fund's
first $25,000,000 of average daily net assets; 0.85% of the next $25,000,000;
.75% of the next $50,000,000; and .65% of any additional amounts. The Acquired
Fund currently has approximately $100,000,000 of assets, while the Acquiring
Fund has less than $50,000,000. Therefore, the effective fee rate will be lower
for Acquired Fund shareholders after the combination. Prior to May 1, 2001, the
Acquired Fund paid management fees to John Hancock at a rate of .80% per annum
for the first $500,000,000 of the Fund's average daily net assets; .775% of the
next $150,000,000; .75% of the next $250,000,000; .725% of the next
$250,000,000; and .70% of any additional amounts.
In the investment management agreements of both the Acquiring and the
Acquired Funds, John Hancock has committed to reimburse each Fund for most of
its operating expenses (other than investment management fees) in excess of .10%
per annum of the Fund's average daily net assets.
Wellington serves as sub-adviser for each Fund. In this capacity,
Wellington has primary responsibility for making investment decisions for the
Funds' investment portfolios and placing orders with brokers and dealers to
implement those decisions.
Wellington receives its compensation from John Hancock, and the Funds pay
no sub-management fees over and above the management fee they pay to John
Hancock. Wellington receives sub-management fees from John Hancock at the same
rate for the Acquiring Fund as for the Acquired Fund: .60% per annum of the
first $25,000,000 of each Fund's average daily net assets; .50% of the next $25
million; .40% for the next $50,000,000 and .30% of any additional amounts.
PROPOSAL 3: COMBINATION OF ACTIVE BOND II FUND (the "Acquired Fund") AND ACTIVE
BOND FUND (the "Acquiring Fund")
Synopsis of the Proposed Combination
The Acquired Fund and the Acquiring Fund are very similar Funds:
16
. Each is a separate investment fund of John Hancock Variable
Series Trust I (the "Trust"), which is a Massachusetts Business
Trust;
. Each shares essentially the same investment goals, policies and
strategies;
. Each has the same investment adviser and (for day-to-day
portfolio management) the same sub-adviser, who manages the Funds
in substantially the same manner; and
. Each is subject to substantially the same risks. These include
primarily the risk that the value of the Fund's assets may fall
(as well as rise) due to changes in securities market conditions;
the risk that the Funds' portfolio managers will be unsuccessful
in making investment decisions that achieve their intended
results; the risk that any rise in interest rates may cause the
value of the Fund's assets to fall; the risk that early payment
of debt securities held by the Funds will adversely affect their
performance; the risk that issuers will default on their
obligations to the Fund or will experience declines in credit
ratings; the risk of holding some amount of high-risk,
"high-yield" bonds; and the risk of high expenses due to high
portfolio "turnover" rates. Secondary risks are those inherent in
investing in foreign securities and certain derivative"
instruments. (Please refer to Appendix A at the end of this Proxy
Statement/Prospectus for additional information about these risk
factors.)
Because these two Funds are so similar, the main purpose of combining them
is to enable the Funds to be managed more effectively and efficiently. In
particular, the Acquired Fund has not grown large enough to be economically
viable on a long-term basis. Nor does the Acquired Fund have prospects for
attaining such viability in the foreseeable future.
The combination of the Acquired Fund and the Acquiring Fund will not result
in any increase in the total fees and expenses borne by any shareholder. In
fact, shareholders can expect to benefit from lower levels of fees and expenses
than if the two Funds remained separate. Combining the Funds will not result in
any dilution of the value of your interest or that of any shareholder of either
Fund.
Fees and Expenses
The following table shows each Fund's fees and expenses for the twelve
months ended June 30, 2001, as well as on a "pro-forma" basis as if the
combination had occurred at the beginning of that period:
17
Pro-Forma of Combined
Active Bond II Fund Active Bond Fund Acquired Fund and
(Acquired Fund) (Acquiring Fund) Acquiring Fund
----------------------- ----------------------- ------------------------
Type of Fee or Expense/1/
----------------------
Sales Charge Imposed on Purchases........... None None None
Deferred Sales Charge....................... None None None
Sales Charge Imposed on Reinvested
Dividends................................. None None None
Redemption Fee.............................. None None None
Exchange Fee................................ None None None
Maximum Account Fee......................... None None None
Distribution or Service (12b-1) Fees........ None None None
Investment Management Fees.................. .70% .62%/2/ .62%
Other Expenses (Before Reimbursement/3/).... .48% .5% .15%
Total Annual Fund Operating Expenses
(Before Reimbursement/3/)......... 1.18% .77%/2/ .77%
Reimbursement from Investment Manager/3/.... .38% .05% .05%
Total Annual Fund Operating Expenses
(After Reimbursement/3/).......... .80% .72%/2/ .72%
---------------------
1 The fees and expenses shown are expressed as an annual percentage of the
Fund's average daily net assets.
2 Restated to reflect an increase in the investment management fee (which
previously had been .25%) effective as of November 1, 2000.
3 The expense reimbursement is pursuant to a commitment in each Fund's
investment management agreement that the investment manager will reimburse
the Fund for most Other Expenses that exceed .10% per annum.
Examples of Fund Expenses
The following examples are intended to help you compare the cost of
investing in the Acquired Fund with the cost of investing in the Acquiring Fund.
The examples assume that Fund expenses continue at the combined rate shown in
the table above.
The examples assume that a shareholder invests $10,000 in each alternative
for the time periods indicated and then redeems all of the shareholder's shares
at the end of those periods. The examples also assume that the shareholder's
investment has a 5% return each year. (The examples do not reflect the fees and
expenses associated with variable annuity and variable life insurance contracts
for which the Funds serve as investment vehicles.) Although your actual returns
may be higher or lower, based on these assumptions your cost would be:
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
The Acquired Fund
(Active Bond II
Fund) ....................... $82 $256 $445 $991
The Acquiring Fund
(Active Bond
Fund) ....................... $73 $229 $398 $889
18
Pro-Forma of Acquired
Fund and Acquiring
Fund Combined ............... $73 $229 $398 $889
Terms of Proposed Combination
In the combination, the Acquiring Fund will acquire all of the Acquired
Fund's assets and assume all of its liabilities. Also, the Acquiring Fund will
issue its shares in place of all then outstanding shares of the Acquired Fund.
The combination has been structured as a tax-free reorganization. Therefore, the
combination will have no direct or indirect tax consequences for you.
Each Fund's share of expenses relating to the combination are expected to
be approximately $12,000. John Hancock Life Insurance Company ("John Hancock")
is expected to bear any amount of those expenses that are allocable to the
Acquired Fund prior to the combination. As to the Acquired Fund, this is because
John Hancock bears most Fund operating expenses over a certain amount, and this
includes the type of costs incurred in the combination. It is expected that the
Acquired Fund's expenses will already exceed this expense "cap" and that,
therefore, the combination will not result in any actual additional costs for
the Acquired Fund. Any expenses of the combination allocated to the Acquiring
Fund will not affect the per share net asset value of the Acquiring Fund, and
are expected to be more than offset by other economies resulting from the
combination. Therefore, the combination is not expected to result in any actual
net costs for either the Acquired Fund or the Acquiring Fund.
The combination will take place at the Funds' regular net asset values per
share. This means that the value of each shareholder's account after the
combination will be exactly the same as if the combination had not occurred.
Information about calculation of net asset values and per share values appears
under "Net Asset and Share Valuations." Nor will there be any change in the
rates of any charges the insurance company imposes under your contract or
certificate.
The Trust's Board of Trustees has unanimously approved and recommends the
combination of the Funds as being in the best interests of the Acquired Fund and
its shareholders.
Board Consideration of the Combination
The Trust's Board of Trustees has determined that combining the Acquired
Fund with the Acquiring Fund is in the best interests of the Acquired Fund and
its shareholders, and the Board of Trustees unanimously recommends approval of
the combination by the shareholders of the Acquired Fund at the meeting.
The Trustees considered this matter at a Board meeting held on September
12, 2001. The factors relevant to the Trustees' conclusions included the
following:
19
. The fact that the Acquired Fund and the Acquiring Fund are now essentially
identical, except for the fact that, at the time of the Board meeting, the
Acquired Fund had approximately $7 million of assets, while the Acquiring
Fund had approximately $816 million.
. The fact that, due to its small size, the Acquired Fund is not economic to
operate, and there is no reasonable prospect for the Acquired Fund, by
itself, to remedy this.
. The fact that a combination with the Acquiring Fund would address this
problem in a way that permits the shareholders of the Acquired Fund to
continue to have the same investment program, as well as the expected
benefits of lower levels of fees and expenses and more effective
management.
. The performance record of the Acquiring Fund over the long period of its
existence. Information about this performance is set forth in Appendixes A
and B at the end of this Proxy Statement/Prospectus. The Acquired Fund's
performance record was less relevant to the Board, for two reasons. First,
part of that performance was achieved by a sub-adviser that has now been
terminated and that used a somewhat different investment program. Second,
because the investment programs and sub-adviser of the two funds are now
the same, the future performance of the two Funds should not differ, except
to the extent that the Acquired Fund cannot be managed as efficiently, due
to its smaller size.
. The fact that the combination will not in any way disadvantage either Fund.
Reasons for Combining the Funds
Recent Developments
As of January 1, 2001, upon John Hancock's recommendation, changes were
made in the Acquired Fund's investment program. Most importantly, Federated
Investment Management Company was replaced as the Fund's sub-adviser.
Also as of January 1, 2001, the Trustees, consistent with a recommendation
of John Hancock, appointed John Hancock Advisers, Inc. ("Hancock Advisers") to
take over as the sub-adviser to the Acquired Fund. Subsequently, effective May
1, 2001, the Fund's shareholders approved the Fund's new sub-investment
management agreement with Hancock Advisers and approved related changes in the
Fund's investment management agreement with John Hancock.
Among the reasons why John Hancock and the Trust's Board of Trustees
selected Hancock Advisers as the Acquired Fund's new sub-adviser was their
favorable evaluation of Hancock Advisers' service to the Trust's Active Bond
Fund. (Hancock Advisers has been the sub-adviser to that Fund since its
inception.) The overall investment goal and strategy of the Acquired Fund did
not change when Hancock Advisers assumed its sub-advisory responsibilities.
However, the Acquired Fund's investment policies were altered so that any
foreign securities would be denominated in U.S. dollars and no more than 15% of
the Fund's assets (rather than 25% as previously) would be invested in high-
yield (high risk) bonds. (Further
20
information on the Funds' investment program appears in Appendix A at the end of
this Prospectus/Proxy Statement.)
Since taking over as the Acquired Fund's sub-adviser, Hancock Advisers has
sought to manage the Acquired Fund in the same way as it manages the Active Bond
Fund. To reflect this new approach, the Acquired Fund was renamed "Active Bond
II Fund."
Inasmuch as the Acquired Fund and the Acquiring Fund are now substantially
identical (except for their relative sizes), John Hancock and its affiliated
life insurance companies have stopped offering the Acquired Fund as an
investment option under their variable life insurance and variable annuity
contracts. See "Distribution of Fund Shares." This means that the Acquired Fund
has no practical means of increasing sales of its shares.
Potential Benefits from Combining the Funds
The proposed combination addresses the problem that the Acquired Fund is
currently too small to be economic and has poor prospects for increasing its
size through sales of additional shares. Because, as discussed above, the
Acquired Fund is now substantially similar to the Active Bond Fund, it is
possible to combine these two funds without disrupting their investment program
or incurring any additional brokerage commissions or other portfolio "turnover"
costs. As a result of the combination, Acquired Fund shareholders will be part
of a significantly larger Fund that can be operated more economically and
effectively.
A larger size can permit a Fund to negotiate lower prices for certain
items. For example, the investment management fees that the Funds pay to John
Hancock are subject to automatic reductions (commonly referred to as "break
points") as a Fund's assets increase. Thus, once the Acquired Fund's assets are
added to those of the Acquiring Fund, the percentage of such assets paid as
investment management fees will be lower than the rate the Acquired Fund would
have paid on its assets alone. The Acquired Fund's shareholders will directly
benefit from such cost reductions.
Combining the two Funds will also make available certain efficiencies that
are expected to reduce the other operating expenses borne by Acquired Fund
shareholders below what the Acquired Fund alone would pay. Acquired Fund
shareholders would directly benefit from this.
Similarly, with more assets to invest, the combined Funds should in some
cases be able to negotiate prices and commission rates on portfolio transactions
that are more favorable than the Acquired Fund alone could achieve.
In addition, it is more difficult to achieve what the sub-adviser regards
as an optimal level of diversification for investments of the Acquired Fund than
would be the case for the combined Funds. This is because the Acquired Fund has
a very small amount of assets in comparison to what the combined Funds will
have.
21
Further Comparison of the Acquiring Fund and the Acquired Fund
Investment Goal
The Acquiring Fund and the Acquired Fund share the same investment goal:
income and capital appreciation.
The investment goal of both Funds is "non-fundamental," which means that it
may be changed by the Board of Trustees without shareholder approval.
Investment Strategies
The investment strategies for the Acquiring Fund and the Acquired Fund are
identical. Both invest primarily in a diversified mix of intermediate-term
medium quality debt securities. They normally will not invest more than 25% of
their assets in high-yield bonds.
Hancock Advisers uses substantially the same personnel and analytical
techniques in managing each of these Funds.
For additional details about the Funds' investment strategies, please refer
to Appendix A at the end of this Proxy Statement/Prospectus.
Fundamental Investment Restrictions
The investment restrictions adopted by each Fund as "fundamental" are set
forth under the caption "The Funds' Fundamental Investment Restrictions" in
Attachment 1 to the Statement of Additional Information referred to on the cover
page of this Proxy Statement/Prospectus. A "fundamental" investment restriction
is one that cannot be changed without approval of the Fund's shareholders.
In minor respects, the Acquiring Fund's fundamental investment restrictions
are narrower than those of Acquired Fund. This means that the Acquired fund
theoretically could engage in certain practices that the Acquiring Fund could
not. In practice, however, Hancock Advisers has ample latitude to implement the
Funds' investment program, under either set of restrictions. Accordingly, John
Hancock does not regard these differences as material.
Investment Advisory Services
John Hancock serves as investment adviser to both the Acquired Fund and the
Acquiring Fund. In this capacity, John Hancock advises each Fund in connection
with policy decisions; administers the Funds' day-to-day operations; provides
the Funds with personnel, office space, equipment and supplies; maintains Fund
records; and supervises the activities of the Funds' sub-adviser and other
service providers.
The Acquired Fund and the Acquiring Fund pay investment management fees to
John Hancock pursuant to identical fee schedules: .70% per annum of the Fund's
first $100,000,000
22
of average daily net assets; 0.65% of the next $150,000,000; .61% of the next
$250,000,000; .575% of the next $500,000,000; and .55% of any additional
amounts. The Acquired Fund currently has less than $8,000,000 of assets, while
the combined assets of the Acquired Fund and the Acquiring Fund will exceed
$800,000,000. Therefore, the effective fee rate will be lower for Acquired Fund
shareholders after the combination. Prior to May 1, 2001, the Acquired Fund paid
management fees to John Hancock at a rate of .70% per annum for the first
$25,000,000 of the Fund's average daily net assets; .65% of the next
$25,000,000; .60% of the next $100,000,000; and .55% of any additional amounts.
In the investment management agreements of both the Acquiring and the
Acquired Funds, John Hancock has committed to reimburse each Fund for most of
its operating expenses (other than investment management fees) in excess of .10%
per annum of the Fund's average daily net assets.
Hancock Advisers serves as sub-adviser for each Fund. In this capacity,
Hancock Advisers has primary responsibility for making investment decisions for
the Funds' investment portfolios and placing orders with brokers and dealers to
implement those decisions.
Hancock Advisers receives its compensation from John Hancock, and the Funds
pay no sub-management fees over and above the management fee they pay to John
Hancock. Hancock Advisers receives sub-management fees from John Hancock at the
same rate for the Acquiring Fund as for the Acquired Fund: .25% per annum of the
first $100,000,000 of each Fund's average daily net assets; .20% of the next
$150 million; .16% of the next $250,000,000; .125% of the next $500,000,000; and
.10% of any additional amounts.
23
PROPOSAL 4: COMBINATION OF AGGRESSIVE BALANCED FUND (the "Acquired Fund") AND
MANAGED FUND (the "Acquiring Fund")
Synopsis of the Proposed Combination
As shown in the table below, the Acquired Fund and the Acquiring Fund are
very similar Funds. The purposes of combining these Funds are as follows:
. To move the Acquired Fund's relatively small amount of assets
into a much larger Fund where they can be more effectively and
efficiently managed. In particular, the Acquired Fund has not
grown large enough to be operated as effectively and as
efficiently as is desirable on a long-term basis. Nor does the
Acquired Fund have prospects for increasing its growth rate in
the foreseeable future.
. To enable Acquired Fund shareholders to benefit from the
investment expertise of both Independence Investment LLC
("Independence") and Capital Guardian Trust Company ("Capital
Guardian"), whereas the Acquired Fund is sub-advised by
Independence alone.
. To reduce the level of overall expenses borne by shareholders of
the Acquired Fund. These are expected to be lower following the
combination.
----------------------------------------------------------------------------------------------------------------------
Aggressive Balanced Fund Managed Fund
(the Acquired Fund) (the Acquiring Fund)
----------------------------------------------------------------------------------------------------------------------
Fund's form of organization: Each Fund is a separate series of John Hancock Variable Series Trust I.
The Trust is organized as a Massachusetts business trust.
----------------------------------------------------------------------------------------------------------------------
Net assets of June 30, 2001: $20 million. $2,730 million
----------------------------------------------------------------------------------------------------------------------
Investment adviser, sub-advisers and Investment Adviser:
portfolio managers: John Hancock Life Insurance Company
-----------------------------------------------------------------------------
Sub-adviser: Sub-adviser:
. Independence Investment LLC Independence Investment LLC
("Independence")
. A subsidiary of John Hancock Portfolio Manager:
Financial services, Inc. Investment team overseen by
. Founded in 1982 John C. Forelli (Equities)
and
Jay C. Leu (Fixed Income)
----------------------------------------------------------------------------------------------------------------------
24
----------------------------------------------------------------------------------------------------------------------
Aggressive Balanced Fund Managed Fund
(the Acquired Fund) (the Acquiring Fund)
----------------------------------------------------------------------------------------------------------------------
Portfolio Manager: Sub-adviser:
Investment team overseen by Capital Guardian Trust Company
John C. Forelli (Equities) ("Capital Guardian")
. Senior Vice President of . Managing since 1968
the sub-adviser . Managing approximately $122
. Joined team in 1996 billion at the end of 2000
. Joined sub-adviser in 1990 Portfolio Managers:
and Equity team of 23 research
Jay C. Leu, CFA (Fixed Income) analysts
. Senior Vice President of . Average 10 years with
sub-adviser Capital Guardian
. Joined sub-adviser in 1997 . Average 14 years industry
. Portfolio Manager, Pacific experience
Capital Asset Management and
(1995-1997) Fixed Income team of 3 portfolio
managers
. Average 15 years with
Capital Guardian
. Average 18 years industry
experience
----------------------------------------------------------------------------------------------------------------------
Investment goal: Both Funds are balanced stock and bond funds that seek income and capital
appreciation. This objective may be changed without shareholder approval.
----------------------------------------------------------------------------------------------------------------------
Primary investments: Common stocks of large established Common stocks of U.S. companies with
U.S. companies large and medium market
capitalizations
-----------------------------------------------------------------------------
Bonds with an overall intermediate term average maturity
----------------------------------------------------------------------------------------------------------------------
25
----------------------------------------------------------------------------------------------------------------------
Aggressive Balanced Fund Managed Fund
(the Acquired Fund) (the Acquiring Fund)
----------------------------------------------------------------------------------------------------------------------
Normal mix of investments: 65%-85% equities and Assets managed by Independence (82%
15%-35% of bonds of Fund's net assets at June 30,
2001): 50%-70% equities and 30%-50%
bonds
Assets managed by Capital Guardian
(18% of Fund's net assets at June
30, 2001): 55%-85% equities and
15%-45% bonds
----------------------------------------------------------------------------------------------------------------------
Investment selection process: Equity securities: Assets managed by Independence:
Sub-adviser uses proprietary Equity securities:
research and quantitative tools to Sub-adviser uses proprietary
seek risk and sector characteristics research and quantitative tools to
similar to the overall equity market. seek risk and sector characteristics
similar to the overall equity market.
Bonds:
Seeks bonds that are attractively Bonds:
priced based on market fundamentals Seeks bonds that are attractively
and technical factors. priced based on market fundamentals
and technical factors.
--------------------------------------
Assets managed by Capital Guardian:
Sub-adviser uses proprietary
fundamental research to identify
securities with current prices below
long-term values.
----------------------------------------------------------------------------------------------------------------------
Size of portfolio companies: Normally 65% (usually more) in Assets managed by Independence:
companies with large market Normally 65% (usually more) in
capitalizations companies with large market
capitalizations
26
----------------------------------------------------------------------------------------------------------------------
Aggressive Balanced Fund Managed Fund
(the Acquired Fund) (the Acquiring Fund)
----------------------------------------------------------------------------------------------------------------------
Assets managed by Capital Guardian:
Normally 65% (usually higher) in
companies with large or medium
market capitalizations
----------------------------------------------------------------------------------------------------------------------
Number of stocks in portfolio: Normally 80-160 stocks Assets managed by Independence:
Normally 80-160 stocks
--------------------------------------
Assets managed by Capital Guardian:
Normally 75-150 stocks
----------------------------------------------------------------------------------------------------------------------
Limit on investment in a single With respect to 75% of its total The Fund can invest more than 5% of
issuer: assets, the Fund cannot invest total assets in securities of a
more than 5% of total assets in single issuer, although it does not
securities of a single issuer. often do so.
----------------------------------------------------------------------------------------------------------------------
High yield (high risk) bonds and Each Fund may invest no more than 30% of its bond assets in high-yield
foreign bonds: bonds or bonds denominated in currencies other than U.S. dollars.
----------------------------------------------------------------------------------------------------------------------
Foreign equities: The Funds generally do not invest in equity securities of non-U.S.
companies.
----------------------------------------------------------------------------------------------------------------------
Pay-in-kind, delayed and zero coupon Both Funds may invest in these instruments.
debt securities; mortgage-backed and
asset-backed securities; repurchase
agreements:
----------------------------------------------------------------------------------------------------------------------
Illiquid securities: Each Fund may invest up to 15% of its assets in illiquid securities.
----------------------------------------------------------------------------------------------------------------------
27
----------------------------------------------------------------------------------------------------------------------
Aggressive Balanced Fund Managed Fund
(the Acquired Fund) (the Acquiring Fund)
----------------------------------------------------------------------------------------------------------------------
Financial futures and related options; Both of these Funds have broad latitude to use financial futures contracts
options on securities, indexes and and related options, as well as options on securities, indexes or currencies
currencies: for hedging or other purposes that do not involve leveraging of
the Fund's investments or leveraging of its exposure to foreign currencies.
----------------------------------------------------------------------------------------------------------------------
Currency contracts: Each Fund may enter into currency contracts for hedging or other purposes
that do not involve leveraging the Fund's exposure to foreign currencies.
----------------------------------------------------------------------------------------------------------------------
Short-term trading: Neither Fund is subject to any limit on short-term trading.
----------------------------------------------------------------------------------------------------------------------
Securities lending: Each Fund may lend portfolio securities up to 33 1/3% of its total assets.
----------------------------------------------------------------------------------------------------------------------
Defensive strategies: Each Fund may, for temporary defensive purposes, invest in securities that
do not comply with its primary goal and strategies.
----------------------------------------------------------------------------------------------------------------------
Borrowing: Each Fund may borrow money, but only as a temporary measure, and only if the
borrowing would not cause total borrowings to exceed 10% of the Acquired
Fund's total assets or 5% of the Acquiring Fund's total assets.
----------------------------------------------------------------------------------------------------------------------
NOTE: Many of the policies in the above table are not deemed by the Funds to be
"fundamental." Therefore, those policies can be changed without getting
shareholder approval.
Fees and Expenses
The following table shows each Fund's fees and expenses for the twelve
months ended June 30, 2001, as well as on a "pro-forma" basis as if the
combination had occurred at the beginning of that period:
28
Pro-Forma
of Combined
Aggressive Balanced Acquired Fund and
Fund Managed Fund Acquiring
(Acquired Fund) (Acquiring Fund) Fund
----------------------- ----------------------- ------------------------
Type of Fee or Expense/1/
----------------------
Sales Charge Imposed on Purchases........... None None None
Deferred Sales Charge....................... None None None
Sales Charge Imposed on Reinvested
Dividends................................. None None None
Redemption Fee.............................. None None None
Exchange Fee................................ None None None
Maximum Account Fee......................... None None None
Distribution or Service (12b-1) Fees........ None None None
Investment Management Fees.................. .67% .67%/2/ .67%
Other Expenses (Before Reimbursement/3/).... .28% .11% .11%
Total Annual Fund Operating Expenses
(Before Reimbursement)/3/......... .95% .78%/2/ .78%
Reimbursement from Investment Manager/3/)... 18% .01% .01%
Total Annual Fund Operating Expenses
(After Reimbursement/3/).......... .77% .77%/2/ .77%
---------------------
/1/ The fees and expenses shown are expressed as an annual percentage of the
Fund's average daily net assets.
/2/ Restated to reflect an investment management fee increase of approximately
.35%, effective as of November 1, 2000.
/3/ The expense reimbursement is pursuant to a commitment in each Fund's
investment management agreement that the investment manager will reimburse
the Fund for most Other Expenses that exceed .10% per annum.
Although the above table show shows the level of pro-forma combined
expenses being the same as those of the Acquired Fund alone, John Hancock and
the Trust do not believe this will actually be the case for the periods
following the proposed combination. This is because the pro-forma combined
expenses in the table above are based on the actual expenses of the Acquired
Fund and the Acquiring Fund for the twelve months ended June 30, 2001. For
various reasons, these expenses were larger than normal. However, following the
proposed combination of the Funds, it is expected that the actual level of costs
and expenses borne by the Acquired Fund's shareholders will be lower than if the
Funds had remained separate.
Examples of Fund Expenses
The following examples are intended to help you compare the cost of
investing in the Acquired Fund with the cost of investing in the Acquiring Fund.
The examples assume that Fund expenses continue at the combined rate shown in
the table above. For reasons set forth in the preceding paragraph, however, John
Hancock and the Trust believe that the actual level of costs and expenses borne
by the Acquired Fund's shareholders will be lower than if the Funds had remained
separate.
29
The examples assume that a shareholder invests $10,000 in each alternative
for the time periods indicated and then redeems all of the shareholder's shares
at the end of those periods. The examples also assume that the shareholder's
investment has a 5% return each year. (The examples do not reflect the fees and
expenses associated with variable annuity and variable life insurance contracts
for which the Funds serve as investment vehicles.) Although your actual returns
may be higher or lower, based on these assumptions your cost would be:
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
The Acquired Fund
(Aggressive Balanced
Fund) ...................... $79 $246 $428 $955
The Acquiring Fund
(Managed Fund) ............. $79 $246 $428 $955
Pro-Forma of Acquired
Fund and Acquiring
Fund Combined .............. $79 $246 $428 $955
Terms of the Combination
In the combination, the Acquiring Fund will acquire all of the Acquired
Fund's assets and assume all of its liabilities. Also, the Acquiring Fund will
issue its shares in place of all then outstanding shares of the Acquired Fund.
The combination has been structured as a tax-free reorganization. Therefore, the
combination will have no direct or indirect tax consequences for you.
The Funds' share of expenses relating to the combination is expected to be
approximately $19,000 for the Acquired Fund and $18,000 for the Acquiring Fund.
However, John Hancock Life Insurance Company ("John Hancock") is expected to
bear any of those expenses that are attributable to the Acquired Fund. This is
because John Hancock bears most Fund operating expenses over a certain amount,
and this includes the type of costs incurred in the combination. It is expected
that the Acquired Fund's expenses will already exceed this expense "cap" and
that, therefore, the combination will not result in any actual additional costs
for the Acquired Fund. Any expenses of the combination allocated to the
Acquiring Fund are expected to be more than offset by the value of the benefits
that Fund will derive from the combination. Therefore, the combination is not
expected to result in any actual net costs for either the Acquired Fund or the
Acquiring Fund.
The combination will take place at the Funds' regular net asset values per
share. This means that the value of each shareholder's account after the
combination will be exactly the same as if the combination had not occurred.
Information about calculation of net asset values and per share values appears
under "Net Asset and Share Valuations." Nor will there be any change in the
rates of any charges the insurance company imposes under your contract or
certificate.
The Trust's Board of Trustees has unanimously approved and recommends the
combination of the Funds as being in the best interests of the Acquired Fund and
its shareholders.
30
Board Consideration of the Combination
The Trust's Board of Trustees has determined that combining the Acquired
Fund with the Acquiring Fund is in the best interests of the Acquired Fund and
its shareholders, and the Board of Trustees unanimously recommends approval of
the combination by the shareholders of the Acquired Fund at the meeting.
The Trustees considered this matter at a Board meeting held on September
12, 2001. The factors relevant to the Trustees' conclusions included the
following:
. The fact that the investment programs of the Acquired Fund and
the Acquiring Fund are quite similar, except that at the time of
the Board meeting, the Acquired fund had approximately $20
million of assets, while the Acquiring Fund had approximately
$2,730 million.
. The fact that, due to its small size, the Acquired Fund is not
economic to operate, and there is no reasonable prospect for the
Acquired Fund, by itself, to remedy this.
. The fact that a combination with the Acquiring Fund would address
this problem in a way that permits the shareholders of the
Acquired Fund to continue to have the same investment program, as
well as the expected benefits of lower overall expenses and more
effective management.
. The fact that the combination will afford Acquired Fund
shareholders an opportunity to benefit from the investment
expertise of Capital Guardian, as well as that of Independence.
. The Acquiring Fund's record of performance over the many years of
its existence. Information about this performance is set forth in
Appendixes A and B at the end of this Proxy Statement/Prospectus.
The Acquired Fund's performance record was less relevant to the
Board, because it dates only from the Acquired Fund's inception
on August 31, 1999.
. The fact that the combination will not in any way disadvantage
either Fund.
Reasons for Combining the Funds
Because of the Acquired Fund's disappointing growth record, John Hancock
and its affiliated life insurance companies have stopped offering the Acquired
Fund as an investment option under their variable life insurance and variable
annuity contracts. See "Distribution of Fund Shares." This means that the
Acquired Fund currently has no practical means of increasing sales of its
shares.
31
The proposed combination addresses the problem that the Acquired Fund is
currently too small to be economic and has poor prospects for increasing its
size through sales of additional shares. Because, as discussed above, the
Acquired Fund invests in much the same types of securities that the Acquiring
fund invests in, it is possible to combine these two funds without disrupting
their investment programs or incurring any additional brokerage commissions or
other portfolio "turnover" costs. As a result of the combination, Acquired Fund
shareholders will be part of a significantly larger Fund that can be operated
more economically and effectively.
In this connection, combining the two Funds will also make available
certain efficiencies that are expected to reduce the level of overall expenses
borne by the Acquired Fund shareholders below what the Acquired Fund alone would
pay. Acquired Fund shareholders should directly benefit from this.
Similarly, with more assets to invest, the combined Funds should in some
cases be able to negotiate prices and commission rates on portfolio transactions
that are more favorable than the Acquired Fund alone could achieve.
In addition, it is more difficult to achieve what the sub-adviser regards
as an optimal level of diversification for investments of the Acquired Fund than
would be the case for the combined Funds. This is because the Acquired Fund has
a small amount of assets in comparison to what the combined Funds will have.
Finally, combining the Funds will give Acquired Fund shareholders the
opportunity to benefit from Capital Guardian's services as sub-adviser, as well
as Independence's.
Further Comparison of the Acquiring Fund and the Acquired Fund
Investment Risks
As shown in the following table, risks of investing in each Fund are
similar:
----------------------------------------------------------------------------------------------------------------------
Aggressive Balanced Fund Managed Fund
(Acquired Fund) (Acquiring Fund)
----------------------------------------------------------------------------------------------------------------------
Stock and Bond Market Risk The value of securities in both Funds may go down (as well as up) in
response to overall stock and bond market movements. Markets tend to move
in cycles, with periods of rising prices and periods of falling prices.
Stocks tend to go up and down in value more than bonds. If a Fund
concentrates in certain market sectors, its performance could be worse than
the overall market.
----------------------------------------------------------------------------------------------------------------------
32
----------------------------------------------------------------------------------------------------------------------
Aggressive Balanced Fund Managed Fund
(Acquired Fund) (Acquiring Fund)
----------------------------------------------------------------------------------------------------------------------
Manager Risk The Funds' portfolio managers and their strategies may fail to produce the
intended results. This could cause a Fund to underperform its peers or lose
money.
----------------------------------------------------------------------------------------------------------------------
Market Allocation Risk The portfolio managers of these Funds make frequent allocation decisions as
among broad asset classes: stocks, bonds, and short-term debt instruments.
The risk is that a portfolio manager's timing in these decisions could be
wrong, thus causing a Fund to underperform its peers or lose money.
----------------------------------------------------------------------------------------------------------------------
Investment Category Risk The Fund's emphasis on investing in The Fund's emphasis on investing in
companies with large market companies with large or moderate
capitalizations carries the risk market capitalizations carries the
that, in certain market risk that in certain market
environments, these investments will environments these investments will
underperform those in smaller underperform those in smaller
companies. companies.
----------------------------------------------------------------------------------------------------------------------
Risk of Non-Diversification Not Applicable. This Fund's ability to take larger
positions in particular securities
could make this Fund's performance
more volatile. The less diversified
a Fund's holdings, the more likely
that a specific security's poor
performance could hurt the Fund
significantly.
----------------------------------------------------------------------------------------------------------------------
Interest Rate Risk Increases in market interest rates generally cause the prices of bonds owned
by a Fund to go down. This effect is more pronounced the longer the remaining
duration of the bond.
----------------------------------------------------------------------------------------------------------------------
Credit Risk If an issuer of bonds owned by a Fund fails to pay the principal or interest
when due, a Fund could suffer losses. Even if there is no such default, the
price of bonds owned by the Fund can decline if the issuer's credit ratings
or perceived creditworthiness decline.
----------------------------------------------------------------------------------------------------------------------
33
----------------------------------------------------------------------------------------------------------------------
Aggressive Balanced Fund Managed Fund
(Acquired Fund) (Acquiring Fund)
----------------------------------------------------------------------------------------------------------------------
Small and Medium The Funds' investments in companies having small or medium market
Capitalization Stock Risk capitalizations may be subject to larger and more erratic price movements
than investments in large capitalization companies.
----------------------------------------------------------------------------------------------------------------------
High Yield Bond Risk High yield bonds owned by the Funds are relatively high risk obligations.
They are generally subject to more volatile or erratic price movements
due to changes in interest rates or investor sentiment. In down
markets, these securities can become harder to value or sell at a fair
price.
----------------------------------------------------------------------------------------------------------------------
Prepayment/Call Risk A Fund's share price or yield could be hurt if interest rate movements cause
the Fund's mortgage-related or other debt securities subject to early payment
to be called or prepaid.
----------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Risk The purchase and sale of portfolio investments by these Funds normally will
exceed 100% per year. The transaction costs of such rates of "turnover" could
materially increase a Fund's expenses.
----------------------------------------------------------------------------------------------------------------------
Foreign Securities Risk Foreign investments involve additional risks, including potentially inadequate
or inaccurate financial information and economic, social, or political
instability.
----------------------------------------------------------------------------------------------------------------------
Derivative Risk Certain derivative instruments can produce disproportionate gains or losses
and are riskier than direct investments. Also, in a down market,
derivatives could become harder to value or sell at a fair price.
Derivatives include such instruments as futures contracts, options, and
currency contracts.
----------------------------------------------------------------------------------------------------------------------
Initial Public Offering ("IPO") A significant part of a Fund's investment return may at times to attributable
Risk to investments in IPOs. The availability of IPO investments is erratic,
however. Many IPO stocks are issued by, and involve the risks associated with,
small and medium capitalization companies. The risks associated with IPO
investing would be less for the Acquiring Fund, due to its larger size.
----------------------------------------------------------------------------------------------------------------------
34
Fundamental Investment Restrictions
The investment restrictions adopted by each Fund as "fundamental" are set
forth under the caption "The Funds' Fundamental Investment Restrictions" in
Attachment 1 to the Statement of Additional Informaton referred to on the cover
page of this Proxy Statement/Prospectus. A "fundamental" investment restriction
is one that cannot be changed without approval of the Fund's shareholders.
In certain minor respects, the fundamental investment restrictions of the
Acquired Fund are broader or narrower than those of the Acquiring Fund. Given
the nature of the Funds' investment programs, however, it is highly unlikely
that these differences would ever impact either Fund in any way that materially
changed its character or its risk profile. Therefore, John Hancock does not
regard these differences as significant.
Investment Advisory Services
John Hancock serves as investment adviser to both the Acquired Fund and the
Acquiring Fund. In this capacity, John Hancock advises each Fund in connection
with policy decisions; administers the Funds' day-to-day operations; provides
the Funds with personnel, office space, equipment and supplies; maintains Fund
records; and supervises the activities of the Funds' sub-advisers and other
service providers.
The Acquired Fund pays investment management fees to John Hancock pursuant
to the following fee schedule: .675% per annum of the Fund's first $250,000,000
of average daily net assets; .625% of the next $250,000,000; and .60% of any
additional amounts. The Acquiring Fund pays investment management fees to John
Hancock pursuant to the following fee schedule: .74% per annum of the first
$500,000,000 of the Fund's average daily net assets; .68% of the next
$500,000,000; and .65% of all additional amounts.
In the investment management agreements of both the Acquiring and the
Acquired Funds, John Hancock has committed to reimburse each Fund for most of
its operating expenses (other than investment management fees) in excess of .10%
per annum of the Fund's average daily net assets.
Independence serves as a sub-adviser for each Fund. In addition, for the
Acquiring fund, Capital Guardian serves as co-sub-adviser. The sub-advisers have
primary responsibility for making investment decisions for the Funds' investment
portfolios and placing orders with brokers and dealers to implement those
decisions. John Hancock, as the Acquiring fund's investment manager, advises the
Fund about how much of the Fund's assets should, at a given time, be under the
day-to-day management of Independence or Capital Guardian. At June 30, 2001,
Independence had responsibility for approximately 82% of the Acquiring Fund's
assets, and Capital Guardian had responsibility for approximately 18%. Since
then, net inflows of shareholder moneys into the Acquiring Fund have been
allocated to the assets managed by each sub-adviser on a 50-50 basis, while
outflows have been allocated on an asset-weighted basis. John Hancock has no
plans to change this allocation procedure.
35
The sub-advisers receive their compensation from John Hancock, and the
Funds pay no sub-management fees over and above the management fees they pay to
John Hancock. Independence receives sub-management fees from John Hancock at the
following rates for the Acquiring Fund: .30% per annum of the first $500,000,000
of the Fund's average daily net assets that are under Independence's
responsibility; .265% of the next $500,000,000; and .225% of any additional
amounts. Capital Guardian receives sub-management fees from John Hancock at the
following rates for the Acquiring Fund: .50% of the first $150,000,000 of the
Fund's average daily assets that are under Capital Guardian's responsibility;
.45% of the next $150,000,000; .30% of the next $200,000,000; and .25% of any
additional amounts.
36
PROPOSAL 5: COMBINATION OF MID CAP BLEND FUND (the "Acquired Fund") AND GROWTH
& INCOME FUND (the "Acquiring Fund")
Synopsis of the Proposed Combination
As shown in the table below, the Acquired Fund and the Acquiring Fund are
very similar Funds. The purposes of combining these Funds are as follows:
. To move the Acquired Fund's relatively small amount of assets
into a much larger Fund where they can be more effectively and
efficiently managed. In particular, the Acquired Fund has not
grown large enough to be operated as effectively and as
efficiently as is desirable on a long-term basis. Nor does the
Acquired Fund have prospects for increasing its growth rate in
the foreseeable future.
. To enable Acquired Fund shareholders to benefit from the
investment expertise of both Independence Investment LLC
("Independence") and Putnam Investment Management, LLC
("Putnam"), whereas the Acquired Fund is sub-advised by
Independence alone.
. To reduce the level of fees and expenses borne by shareholders of
the Acquired Fund. These are expected to be lower following the
combination.
----------------------------------------------------------------------------------------------------------------------
Mid Cap Blend Fund Growth & Income Fund
(the Acquired Fund) (the Acquiring Fund)
----------------------------------------------------------------------------------------------------------------------
Fund's form of organization: Each Fund is a separate series of John Hancock Variable Series Trust I.
The Trust is organized as a Massachusetts business trust.
----------------------------------------------------------------------------------------------------------------------
Net assets as of June 30, 2001: $23 million. $2,800 million
----------------------------------------------------------------------------------------------------------------------
Investment adviser, sub-advisers and Investment Adviser:
portfolio managers: John Hancock Life Insurance Company
-----------------------------------------------------------------------------
Sub-adviser: Sub-adviser:
. Independence Investment LLC Independence Investment LLC
("Independence")
. A subsidiary of John Portfolio Manager:
Hancock Financial Investment team overseen by
services, Inc. Paul S. McManus
. Founded in 1982 . Senior Vice President of
sub-adviser
Portfolio Manager: . Joined Team in 1996
37
----------------------------------------------------------------------------------------------------------------------
Mid Cap Blend Fund Growth & Income Fund
(the Acquired Fund) (the Acquiring Fund)
----------------------------------------------------------------------------------------------------------------------
Investment team overseen by
John C. Forelli (Equities) . Joined sub-adviser in 1982
. Senior Vice President of Sub-adviser:
the sub-adviser Putnam Investment Management, LLC
. Joined team in 1996 ("Putnam")
. Joined sub-adviser in 1990 . Managing since 1937
and . Managing approximately $370
Jay C. Leu, CFA (Fixed Income) billion at the end of 2000
. Senior Vice President of
sub-adviser Portfolio Manager:
. Joined sub-adviser in 1997 Investment team overseen by C. Beth
. Portfolio Manager, Pacific Cotner, CFA
Capital Asset Management . Managing Director and Chief
(1995-1997) Investments Officer of
sub-adviser
. Joined sub-adviser in 1995
. Began career in 1976
----------------------------------------------------------------------------------------------------------------------
Investment goal: Long-term capital appreciation. Income and long-term capital
This goal may be changed without appreciation. This goal may be
shareholder approval. changed without shareholder approval.
----------------------------------------------------------------------------------------------------------------------
Primary investments: Diversified mix of common stocks of Diversified mix of common stocks of
U.S. companies with medium market U.S. companies with large and medium
capitalizations market capitalizations
----------------------------------------------------------------------------------------------------------------------
Investment selection process: Sub-adviser uses proprietary Assets managed by Independence (80%
research tools to seek stocks that of Fund's net assets at June 30,
are undervalued relative to their 2001): Sub-adviser uses proprietary
historical values and that have research tools to seek stocks that
improving earnings growth prospects. are undervalued relative to their
historical values and that have
improving earnings growth prospects.
----------------------------------------------------------------------------------------------------------------------
38
----------------------------------------------------------------------------------------------------------------------
Mid Cap Blend Fund Growth & Income Fund
(the Acquired Fund) (the Acquiring Fund)
----------------------------------------------------------------------------------------------------------------------
Assets managed by Putnam (20% of
Fund's net assets at June 30, 2001):
Sub-adviser uses proprietary
fundamental research to identify
companies with characteristics such as
a favorable earnings surprise or
momentum, favorable financial strength
and ratios, strong and innovative
management teams, opportunities for
above average earnings growth within
their industry, and strong competitive
position relative to peers and
suppliers.
----------------------------------------------------------------------------------------------------------------------
Size of portfolio companies: Normally 65% (usually more) in Assets managed by Independence:
companies with medium market Normally 65% (usually more) in
capitalizations companies with large market
capitalizations
--------------------------------------
Assets managed by Putnam:
Normally 65% (usually higher) in
companies with large or medium
market capitalizations
----------------------------------------------------------------------------------------------------------------------
Number of stocks in portfolio: Normally 80-160 stocks Assets managed by Independence:
Normally 80-160 stocks
--------------------------------------
Assets managed by Putnam:
Normally 65-110 stocks
----------------------------------------------------------------------------------------------------------------------
Limit on investment in a Both Funds can invest more than 5% of total assets in securities of a single
single issuer: issuer, although they do not often do so.
----------------------------------------------------------------------------------------------------------------------
39
----------------------------------------------------------------------------------------------------------------------
Mid Cap Blend Fund Growth & Income Fund
(the Acquired Fund) (the Acquiring Fund)
----------------------------------------------------------------------------------------------------------------------
Foreign securities: The Funds may purchase foreign securities that are denominated (traded)
primarily in U.S. dollars.
----------------------------------------------------------------------------------------------------------------------
Pay-in-kind, delayed and zero coupon Both Funds may invest in these instruments.
debt securities; mortgage-backed and
asset-backed securities; repurchase
agreements:
----------------------------------------------------------------------------------------------------------------------
Illiquid securities: Each Fund may invest up to 15% of its assets in illiquid securities.
----------------------------------------------------------------------------------------------------------------------
Financial futures and related options; Both of these Funds have broad latitude to use financial futures contracts
options on securities, indexes and and related options, as well as options on securities, indexes or currencies:
currencies for hedging or other purposes that do not involve leveraging of the Fund's
investments or leveraging of its exposure to foreign currencies.
----------------------------------------------------------------------------------------------------------------------
Currency contracts: Each Fund may enter into currency contracts for hedging or other purposes
that do not involve leveraging the Fund's exposure to foreign currencies.
----------------------------------------------------------------------------------------------------------------------
Short-term trading: Neither Fund is subject to any limit on short-term trading.
----------------------------------------------------------------------------------------------------------------------
Securities lending: Each Fund may lend portfolio securities up to 33?% of its total assets.
----------------------------------------------------------------------------------------------------------------------
Defensive strategies: Each Fund may, for temporary defensive purposes, invest in securities that
do not comply with its primary goal and strategies.
----------------------------------------------------------------------------------------------------------------------
Borrowing: Each Fund may borrow money, but only as a temporary measure, and only if the
borrowing would not cause total borrowings to exceed 10% of the Acquired
Fund's total assets or 5% of the Acquiring Fund's total assets.
----------------------------------------------------------------------------------------------------------------------
NOTE: Many of the policies in the above table are not deemed by the Funds to be
"fundamental." Therefore, those policies can be changed without getting
shareholder approval.
40
Fees and Expenses
The following table shows each Fund's fees and expenses for the twelve
months ended June 30, 2001, as well as on a "pro-forma" basis as if the
combination had occurred at the beginning of that period:
Pro-Forma of Combined
Mid Cap Blend Fund Growth & Income Fund Acquired Fund and
(Acquired Fund) (Acquiring Fund) Acquiring Fund
----------------------- ----------------------- ------------------------
Type of Fee or Expense/1/
----------------------
Sales Charge Imposed on Purchases........... None None None
Deferred Sales Charge....................... None None None
Sales Charge Imposed on Reinvested
Dividends................................. None None None
Redemption Fee.............................. None None None
Exchange Fee................................ None None None
Maximum Account Fee......................... None None None
Distribution or Service (12b-1) Fees........ None None None
Investment Management Fees.................. .75% .67%/2/ .67%
Other Expenses (Before Reimbursement/3/).... .23% .12% .12%
Total Annual Fund Operating Expenses
(Before Reimbursement)/3/......... .98% .79%/2/ .79%
Reimbursement from Investment Manager/3/.... .13% .02% .02%
Total Annual Fund Operating Expenses
(After Reimbursement/3/).......... .85% .77%2 .77%
---------------------
1 The fees and expenses shown are expressed as an annual percentage of the
Fund's average daily net assets.
2 Restated to reflect an investment management fee increase effective as of
November 1, 2000. Prior to that date, the fee was .25% per annum.
3 The expense reimbursement is pursuant to a commitment in each Fund's
investment management agreement that the investment manager will reimburse
the Fund for most Other Expenses that exceed .10% per annum.
Examples of Fund Expenses
The following examples are intended to help you compare the cost of
investing in the Acquired Fund with the cost of investing in the Acquiring Fund.
The examples assume that Fund expenses continue at the combined rate shown in
the table above.
The examples assume that a shareholder invests $10,000 in each alternative
for the time periods indicated and then redeems all of the shareholder's shares
at the end of those periods. The examples also assume that the shareholder's
investment has a 5% return each year. (The examples do not reflect the fees and
expenses associated with variable annuity and variable life insurance contracts
for which the Funds serve as investment vehicles.) Although your actual returns
may be higher or lower, based on these assumptions your cost would be:
41
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
The Acquired Fund (Mid
Cap Blend
Fund) ........................... $87 $272 $472 $1,051
The Acquiring Fund
(Growth & Income
Fund) ........................... $79 $246 $428 $954
Pro-Forma of Acquired
Fund and Acquiring
Fund Combined ................... $79 $246 $428 $954
Terms of the Combination
In the combination, the Acquiring Fund will acquire all of the Acquired
Fund's assets and assume all of its liabilities. Also, the Acquiring Fund will
issue its shares in place of all then outstanding shares of the Acquired Fund.
The combination has been structured as a tax-free reorganization. Therefore, the
combination will have no direct or indirect tax consequences for you.
The Funds' share of expenses relating to the combination is expected to be
approximately $22,500 for the Acquired Fund and $19,500 for the Acquiring Fund.
However, John Hancock Life Insurance Company ("John Hancock") is expected to
bear any of those expenses that are attributable to the Acquired Fund. This is
because John Hancock bears most Fund operating expenses over a certain amount,
and this includes the type of costs incurred in the combination. It is expected
that the Acquired Fund's expenses will already exceed this expense "cap" and
that, therefore, the combination will not result in any actual additional cost
for the Acquired Fund. Any expenses of the combination allocated to the
Acquiring Fund are expected to be more than offset by the value of the benefits
that the Fund will derive from the combination. Therefore, the combination is
not expected to result in any actual net costs for either the Acquired Fund or
the Acquiring Fund.
The combination will take place at the Funds' regular net asset values per
share. This means that the value of each shareholder's account after the
combination will be exactly the same as if the combination had not occurred.
Information about calculation of net asset values and per share values appears
under "Net Asset and Share Valuations." Nor will there be any change in the
rates of any charges the insurance company imposes under your contract or
certificate.
The Trust's Board of Trustees has unanimously approved and recommends the
combination of the Funds as being in the best interests of the Acquired Fund and
its shareholders.
42
Board Consideration of the Combination
The Trust's Board of Trustees has determined that combining the Acquired
Fund with the Acquiring Fund is in the best interests of the Acquired Fund and
its shareholders, and the Board of Trustees unanimously recommends approval of
the combination by the shareholders of the Acquired Fund at the meeting.
The Trustees considered this matter at a Board meeting held on September
12, 2001. The factors relevant to the Trustees' conclusions included the
following:
. The fact that the investment programs of the Acquired Fund and
the Acquiring Fund are quite similar, except that at the time of
the Board meeting, the Acquired fund had about $20 million of
assets, while the Acquiring Fund had approximately $2,800
million.
. The fact that, due to its small size, the Acquired Fund is not
economic to operate, and there is no reasonable prospect for the
Acquired Fund, by itself, to remedy this.
. The fact that a combination with the Acquiring Fund would address
this problem in a way that permits the shareholders of the
Acquired Fund to continue to have the same investment program, as
well as the expected benefits of lower fees and expenses and more
effective management.
. The fact that the combination will afford Acquired Fund
shareholders an opportunity to benefit from the investment
expertise of Capital Guardian, as well as that of Independence.
. The Acquiring Fund's record of performance over the many years of
its existence. Information about this performance is set forth in
Appendixes A and B at the end of this Proxy Statement/Prospectus.
The Acquired Fund's performance record was less relevant to the
Board, because it dates only from the Acquired Fund's inception
on August 31, 1999.
. The fact that the combination will not in any way disadvantage
either Fund.
Reasons for Combining the Funds
Because of the Acquired Fund's disappointing growth record, John Hancock
and its affiliated life insurance companies have stopped offering the Acquired
Fund as an investment option under their variable life insurance and variable
annuity contracts. See "Distribution of Fund Shares." This means that the
Acquired Fund currently has no practical means of increasing sales of its
shares.
43
The proposed combination addresses the problem that the Acquired Fund is
currently too small to be economic and has poor prospects for increasing its
size through sales of additional shares. Because, as discussed above, the
Acquired Fund invests in much the same types of securities that the Acquiring
fund invests in, it is possible to combine these two funds without disrupting
their investment programs or incurring any additional brokerage commissions or
other portfolio "turnover" costs. As a result of the combination, Acquired Fund
shareholders will be part of a significantly larger Fund that can be operated
more economically and effectively.
A larger size can permit a Fund to negotiate lower prices for certain
items. Thus, once the Acquired Fund's assets are added to those of the Acquiring
Fund, the percentage of such assets paid as investment management fees will be
lower than the rate the Acquired Fund would have paid on its assets alone. The
Acquired Fund's shareholders will directly benefit from such cost reductions.
Combining the two Funds will also make available certain efficiencies that
are expected to reduce the level of other operating expenses borne by Acquired
Fund shareholders below what the Acquired Fund alone would pay. Acquired Fund
shareholders should directly benefit from this.
Similarly, with more assets to invest, the combined Funds should in some
cases be able to negotiate prices and commission rates on portfolio transactions
that are more favorable than the Acquired Fund alone could achieve.
In addition, it is more difficult to achieve what the sub-adviser regards
as an optimal level of diversification for investments of the Acquired Fund than
would be the case for the combined Funds. This is because the Acquired Fund has
a small amount of assets in comparison to what the combined Funds will have.
Finally, combining the Funds will give Acquired Fund shareholders the
opportunity to benefit from Putnam's services as sub-adviser, as well as
Independence's.
Further Comparison of the Acquiring Fund and the Acquired Fund
Investment Risks
As shown in the following table, risks of investing in each Fund are
similar:
44
---------------------------------------------------------------------------------------------------------------------
Mid Cap Blend Fund Growth & Income Fund
(Acquired Fund) (Acquiring Fund)
---------------------------------------------------------------------------------------------------------------------
Stock and Bond Market Risk The value of securities in both Funds may go down (as well as up) in
response to overall stock and bond market movements. Markets tend to
move in cycles, with periods of rising prices and periods of falling
prices. Stocks tend to go up and down in value more than bonds. If a
Fund concentrates in certain market sectors, its performance could be
worse than the overall market.
---------------------------------------------------------------------------------------------------------------------
Manager Risk The Funds' portfolio managers and their strategies may fail to produce
the intended results. This could cause a Fund to underperform its peers
or lose money.
---------------------------------------------------------------------------------------------------------------------
Market Allocation Risk The portfolio managers of these Funds make frequent allocation
decisions as among broad asset classes: stocks, bonds, and short-term
debt instruments. The risk is that a portfolio manager's timing in
these decisions could be wrong, thus causing a Fund to underperform its
peers or lose money.
---------------------------------------------------------------------------------------------------------------------
Investment Category Risk The Fund's emphasis on investing in The Fund's emphasis on investing in
companies with medium market companies with large or moderate
capitalizations carries the risk market capitalizations carries the
that, in certain market risk that in certain market
environments, these investments will environments these investments will
underperform those in smaller or underperform those in smaller
larger companies. companies.
---------------------------------------------------------------------------------------------------------------------
Risk of Non-Diversification These Funds' ability to take larger positions in particular securities
could make the Funds' performance more volatile. The less diversified a
Fund's holdings, the more likely that a specific security's poor
performance could hurt the Fund significantly.
---------------------------------------------------------------------------------------------------------------------
Small and Medium The Funds' investments in companies having small or medium market
Capitalization Stock Risk capitalizations may be subject to larger and more erratic price
movements than investments in large capitalization companies.
---------------------------------------------------------------------------------------------------------------------
45
---------------------------------------------------------------------------------------------------------------------
Mid Cap Blend Fund Growth & Income Fund
(Acquired Fund) (Acquiring Fund)
---------------------------------------------------------------------------------------------------------------------
Derivative Risk Certain derivative instruments can produce disproportionate gains or
losses and are riskier than direct investments. Also, in a down market,
derivatives could become harder to value or sell at a fair price.
Derivatives include such instruments as futures contracts, options, and
currency contracts.
---------------------------------------------------------------------------------------------------------------------
Initial Public Offering ("IPO") A significant part of either Fund's investment return may at times to
Risk attributable to investments in IPOs. The availability of IPO
investments is erratic, however. Many IPO stocks are issued by, and
involve the risks associated with, small and medium capitalization
companies. The risks associated with IPO investing would be less for
the Acquiring Fund, due to its larger size.
---------------------------------------------------------------------------------------------------------------------
Fundamental Investment Restrictions
The investment restrictions adopted by each Fund as "fundamental" are set
forth under the caption "The Funds' Fundamental Investment Restrictions" in
Attachment 1 to the Statement of Additional Information referred to on the cover
page of this Proxy Statement/Prospectus. A "fundamental" investment restriction
is one that cannot be changed without approval of the Fund's shareholders.
In certain minor respects, the fundamental investment restrictions of the
Acquired Fund are broader or narrower than those of the Acquiring Fund. Given
the nature of the Funds' investment programs, however, it is highly unlikely
that these differences would ever impact either Fund in any way that materially
changed its character or its risk profile. Therefore, John Hancock does not
regard these differences as significant.
Investment Advisory Services
John Hancock serves as investment adviser to both the Acquired Fund and the
Acquiring Fund. In this capacity, John Hancock advises each Fund in connection
with policy decisions; administers the Funds' day-to-day operations; provides
the Funds with personnel, office space, equipment and supplies; maintains Fund
records; and supervises the activities of the Funds' sub-advisers and other
service providers.
The Acquired Fund pays investment management fees to John Hancock pursuant
to the following fee schedule: .75% per annum of the Fund's first $250,000,000
of average daily net assets; .70% of the next $250,000,000; and .65% of any
additional amounts. The Acquiring Fund pays investment management fees to John
Hancock pursuant to the following fee schedule: .71% per annum of the first
$150,000,000 of the Fund's average daily net assets; .69% of the next
$150,000,000; and .67% of all additional amounts. The Acquired Fund currently
has less
46
than $25,000,000 of assets, while the combined assets of the Acquired
Fund and the Acquiring Fund will exceed $2,000,000,000. Therefore, the effective
fee rate will be lower for Acquired Fund shareholders after the combination.
In the investment management agreements of both the Acquiring and the
Acquired Funds, John Hancock has committed to reimburse each Fund for most of
its operating expenses (other than investment management fees) in excess of .10%
per annum of the Fund's average daily net assets.
Independence serves as a sub-adviser for each Fund. In addition, for the
Acquiring fund, Putnam serves as co-sub-adviser. The sub-advisers have primary
responsibility for making investment decisions for the Funds' investment
portfolios and placing orders with brokers and dealers to implement those
decisions. John Hancock, as the Acquiring fund's investment manager, advises the
Fund about how much of the Fund's assets should, at a given time, be under the
day-to-day management of Independence or Putnam. At June 30, 2001, Independence
had responsibility for approximately 80% of the Acquiring Fund's assets, and
Putnam had responsibility for approximately 20%. Since then, net inflows of
shareholder moneys into the Acquiring Fund have been allocated to the assets
managed by each sub-adviser on a 50-50 basis, while outflows have been allocated
on an asset-weighted basis. John Hancock has no plans to change this allocation
procedure.
The sub-advisers receive their compensation from John Hancock, and the
Funds pay no sub-management fees over and above the management fees they pay to
John Hancock. With respect to the Acquiring Fund, Independence receives
sub-management fees from John Hancock at the rate of .1875% per annum of the
Fund's average daily net assets that are under Independence's responsibility.
Putnam receives sub-management fees from John Hancock at the following rates for
the Acquiring Fund: .50% of the first $150,000,000 of the Fund's average daily
assets that are under Putnam's responsibility; .45% of the next $150,000,000;
and .35% of any additional amounts.
VOTING PROCEDURES AND CONDUCT
OF THE SHAREHOLDERS' MEETING
This Proxy Statement/Prospectus is furnished in connection with the
solicitation of voting instructions by the management of John Hancock Variable
Series Trust I (the "Trust") for use at the Special Meeting of Shareholders of
the Trust's five "Acquired Funds" discussed in this Proxy Statement/Prospectus.
The meeting will be held at the offices of John Hancock Life Insurance Company
("John Hancock"), 197 Clarendon Street, Boston, Massachusetts 02117, on December
5, 2001 at 11:00 A.M. Boston time.
Solicitation of Voting Instructions (i.e., "Proxies")
This solicitation is being made of all shares of each Acquired Fund that
are attributable to variable annuity or variable life insurance contracts
(together with any certificates of interest thereunder, "Contracts") that are
supported by John Hancock Variable Life Accounts U, V, and S; John Hancock
Variable Annuity Accounts U, V,
47
JF, H and I; Separate Account IPL-1 of Investors Partner Life Insurance Company
("IPL"); and John Hancock Mutual Variable Life Insurance Account UV
(collectively, the "Accounts"). Each Fund will bear the costs properly
attributable to discharging its role in connection with the Proposal that
pertains to it. The nature and estimated amount of such costs are set out above
in the discussion of each Proposal. All other expenses will be borne by the
issuing insurance companies (the "Insurance Companies"). In addition to
solicitations by mail, regular employees of John Hancock may solicit voting
instructions in person or by telephone; such employees will not be compensated
for such services. Solicitation materials were first made available to Contract
owners on or about November __, 2001.
Voting Instructions
Although the Insurance Companies, through the Accounts, legally own all of
the Trust's shares, they will vote all of such shares in accordance with
instructions given by Contract owners, as discussed below. For this purpose, the
owner of a variable annuity contract during the period after annuity payments
have commenced is the annuitant.
Any authorized voting instructions will also be valid for any adjournment
of the meeting and will be revocable only at the direction of the Contract owner
executing them. If an insufficient number of affirmative votes are obtained to
approve any matter, the meeting may be adjourned to permit the solicitation of
additional votes. Shares will be voted for any such adjournment in the
discretion of those persons named in the voting instructions. Whether a Proposal
is approved depends upon whether a sufficient number of votes are cast for the
Proposal. Accordingly, an instruction to abstain from voting on any proposal has
the same practical effect as an instruction to vote against that Proposal.
Any person giving voting instructions may revoke them at any time prior to
their exercise by submitting a superseding voting instruction form or a notice
of revocation to the Trust. In addition, although mere attendance at the meeting
will not revoke voting instructions, a Contract owner present at the meeting may
withdraw his/her voting instruction form and vote in person. The Insurance
Companies will vote the Acquired Fund's shares in accordance with all properly
executed and unrevoked voting instructions received in time for the meeting.
The Insurance Companies will vote the shares of an Acquired Fund held
in their respective Accounts that are attributable to Contracts in accordance
with the voting instructions received from the owners of those Contracts. An
Account's shares in the Acquired Fund that are not attributable to Contracts or
for which no timely voting instructions are received will be represented and
voted by the Insurance Companies in the same proportion as the voting
instructions that are received from all owners of Contracts participating in the
Fund through that Account. (Acquired Fund shares that are not attributable to
Contracts include, for example, any shares purchased with contributions made as
"seed money" to the Fund by an Insurance Company.)
48
Please refer to Appendix C to Proxy Statement/Prospectus if you wish
additional information about the number of shares of each Acquired Fund that are
outstanding or that are attributable to an Insurance Company (rather than to
Contract owners).
Required Vote
In order for the shareholders to approve one of the Proposals in this Proxy
Statement/Prospectus, the Proposal must receive the favorable vote of more than
50% of the outstanding shares of the relevant Acquired Fund, or, if less, 67% or
more of that Fund's shares present or represented at the meeting.
WHETHER OR NOT YOU EXPECT TO BE PRESENT AT THE MEETING, PLEASE COMPLETE AND
RETURN THE ENCLOSED FORM OF VOTING INSTRUCTIONS. YOU MAY STILL VOTE IN PERSON IF
YOU ATTEND THE MEETING.
CAPITALIZATION OF THE FUNDS
As to each Proposal, the following tables set forth as of June 30, 2001:
(i) the capitalization of the Acquired Fund, (ii) the capitalization of the
Acquiring Fund, and (iii) the pro forma capitalization of the Acquired Fund as
adjusted to give effect to the combination of the two Funds:
------------------------------------------------------------------------------------------------------------------------------
Proposal 1
Acquiring Fund Pro-Forma Acquired
Acquired Fund (Large (Large Cap Value Fund and Acquiring
Cap Value CORE/SM/ II) CORE/SM/) Fund
--------------------- --------------- ------------------
Net Assets ..................................... $6,596,000 $43,987,000 $50,583,000
Shares Outstanding ............................. 621,000 4,268,000 4,906,000
Net Asset Value Per Share ...................... $10.62 $10.31 $10.31
------------------------------------------------------------------------------------------------------------------------------
Proposal 2
Acquired Fund Acquiring Fund Pro-Forma Acquired
(Large/MidCap (Large/Midcap Fund and Acquiring
Value II) Value) Fund
--------------------- --------------- ------------------
Net Assets ..................................... $121,102,000 $36,569,000 $157,671,000
Shares Outstanding ............................. 8,480,000 3,246,000 13,990,000
Net Asset Value Per Share ...................... $14.28 $11.27 $11.27
49
------------------------------------------------------------------------------------------------------------------------------
Proposal 3
Pro-Forma Acquired
Acquired Fund Acquiring Fund Fund and Acquiring
(Active Bond II) (Active Bond) Fund
--------------------- --------------- ------------------
Net Assets ..................................... $6,583,000 $816,297,000 $822,880,000
Shares Outstanding ............................. 635,000 86,035,000 86,670,000
Net Asset Value Per Share ...................... $10.37 $9.49 $9.49
------------------------------------------------------------------------------------------------------------------------------
Proposal 4
Acquired
Fund Acquiring Pro-Forma Acquired
(Aggressive Fund Fund and Acquiring
Balanced) (Managed) Fund
--------------------- --------------- ------------------
Net Assets ..................................... $20,378,000 $2,729,864,000 $2,750,242,000
Shares Outstanding ............................. 2,087,000 203,150,000 204,706,000
Net Asset Value Per Share ...................... $9.76 $13.44 $13.44
------------------------------------------------------------------------------------------------------------------------------
Proposal 5
Pro-Forma Acquired
Acquired Fund Mid Acquiring Fund Fund and Acquiring
Cap Blend (Growth & Income) Fund
--------------------- --------------- ------------------
Net Assets ..................................... $22,599,000 $2,799,990,000 $2,822,589,000
Shares Outstanding ............................. 1,876,000 217,626,000 219,326,000
Net Asset Value Per Share ...................... $12.04 $12.87 $12.87
At September 20, 2001, the net assets of each Fund were as follows:
Acquired Fund Corresponding Acquiring Fund
------------- ----------------------------
Large Cap Value CORE/SM/ II - $5,651,000 Large Cap Value CORE/SM/ - $42,822,000
Large/Mid Cap Value II - $93,573,000 Large/Mid Cap Value - $41,995,000
Active Bond II - $7,401,000 Active Bond - $845,578,000
Aggressive Balanced - $16,018,000 Managed - $2,336,076,000
Mid Cap Blend - $16,779,000 Growth & Income - $2,121,501,000
In addition to the Fund combinations described in Proposals 1-5 above,
certain of the Acquiring Funds are also planning to be the acquiring fund in a
combination with certain other funds managed by an affiliate of John Hancock.
Specifically, one such other funds having net assets of approximately $63
million at June 30, 2001, would combine with the Active Bond
50
Fund; and two such other Funds, having net assets at June 30, 2001 of
approximately $6 million and $41 million, respectively, would combine with the
Growth & Income Fund. Each of these transactions is subject to approval by the
other funds' shareholders and other contingencies. They are currently planned
for December 2001. If they do occur, these transactions would further increase
the size of the Active Bond Fund and Growth & Income Fund.
DISTRIBUTION OF FUND SHARES
The shares of all the Acquired Funds and all of the Acquiring Funds are
identical shares of beneficial interest in the Trust, except that they each
represent an interest in a different investment portfolio (series) of the Trust.
Each Fund currently sells its shares exclusively to separate investment
accounts of John Hancock and John Hancock's affiliated insurance companies to
support variable annuity contracts and variable life insurance contracts (and
any certificates thereunder) issued by those companies. These Accounts buy or
redeem shares of the Fund based on (1) a Contract owner's instruction to invest
or receive back monies under a Contract (such as making a premium payment or
surrendering a Contract) and (2) the operation of a Contract (such as deduction
of Contract fees and charges).
Therefore, the "distribution" (marketing) of shares of both the Acquired
Funds and the Acquiring Funds is highly dependent on the efforts and willingness
of John Hancock and its affiliated companies to promote the offer and sale of
the Funds as investment options under variable annuity and variable life
insurance contracts they issue.
NET ASSET AND SHARE VALUATIONS
Each Fund sells and buys back its shares at the net asset value per share
("NAV") next computed after receipt by an Account of a Contract owner's
instructions. Each Fund calculates its NAV:
. by dividing its net assets by the number of its outstanding
shares,
. once daily as of the close of regular trading on the New York
Stock Exchange (generally at 4 p.m., New York City time) on each
day the Exchange is open.
The Funds can be expected to hold securities primarily listed on foreign
exchanges that trade on weekends or other days when the Trust does not calculate
NAV. Consequently, NAV may change on days when Contract owners will not be able
to instruct a separate account to buy or redeem fund shares.
The Funds value their securities based on market quotations, amortized
cost, valuations of independent pricing services, or fair value determined in
accordance with procedures approved by the Trust's Trustees. A Fund may value
securities at fair value where, for example, market quotations are not readily
available, or the value of securities has been materially affected after the
closing of a foreign market.
51
AGREEMENT AND PLAN OF REORGANIZATION
To implement the proposed combination, the Funds have entered into an
Agreement and Plan of Reorganization (the "Plan") that sets forth the terms and
conditions of the combination. The Plan can be terminated at any time as to any
combination by mutual agreement of the parties. Also, the Plan provides that
each combination is subject to a prior condition that the shareholders of the
Acquired Fund in that combination approve the transaction.
INFORMATION FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
This Proxy Statement/Prospectus and the related Statement of Additional
Information do not contain all the information set forth in the registration
statements and the exhibits relating thereto and annual reports that the Trust
has filed with the SEC pursuant to the requirements of the Securities Act of
1933 and the Investment Company Act of 1940.
The Trust and each of its investment portfolios, including the Acquired
Funds and the Acquiring Funds, are subject to the informational requirements of
the Investment Company Act of 1940 and in accordance therewith file reports and
other information with the SEC. Reports, proxy statements, registration
statements and other information filed by those entities (including the Trust's
Form N-14 Registration Statement of which this Proxy Statement/Prospectus is a
part) may be inspected without charge and copied at the prescribed rates at the
public reference facilities maintained by the SEC at Room 1014, Judiciary Plaza,
450 Fifth Street, NW, Washington, DC 20549, and at the following regional
offices of the SEC: 1401 Brickell Avenue, Suite 200, Miami, Florida 33131; 500
West Madison Street, 14th Floor, Chicago, Illinois 60661; 1801 California
Street, Suite 4800, Denver, Colorado 80202; and 5670 Wilshire Blvd., 11th Floor,
Los Angeles, California 90036. The SEC also maintains a web site at
http://www.sec.gov that contains information regarding Trust and other
registrants that file electronically with the SEC.
52
APPENDIX A - Basic Information About Each Acquiring Fund
Basic information about each Acquiring Fund appears below on the following
pages:
Acquiring Fund Page
-------------- ----
Large Cap Value CORE/SM/...............................A-1
Large/Mid Cap Value....................................A-3
Active Bond............................................A-5
Managed................................................A-7
Growth & Income........................................A-9
Large Cap Value CORE SM Fund
GOAL AND STRATEGY
This is a large cap stock fund with a value emphasis that seeks long-term capi-
tal appreciation and dividend income.
The Fund invests primarily in a diversified mix of common stocks of large
established U.S. companies that are believed to offer favorable prospects for
increasing dividends and growth in capital.
The manager selects stocks using a combination of quantitative techniques and
fundamental equity research. The manager employs an investment process known as
CORE, "Computer Optimized, Research-Enhanced," that employs a proprietary quan-
titative model. "CORE SM" is a service mark of Goldman, Sachs & Co. The manager
identifies stocks that have strong expected earnings growth and momentum and
better valuation and risk characteristics than the Russell 1000(R) Value Index.
Stocks are purchased that have:
. Low to modest valuation characteristics relative to general market measures,
such as price/earnings ratio, book value and other fundamental accounting
measures, and
. favorable prospects for capital appreciation and/or dividend paying ability.
The Fund is managed using risk control techniques to maintain risk, style, cap-
italization and sector characteristics similar to the Russell 1000(R) Value
Index. The Fund is broadly diversified by sector.
The Fund normally invests in 100 to 350 stocks, with at least 65% (usually
higher) of the Fund's assets in large cap companies. The Fund normally has 10%
or less (usually lower) of its assets in cash and cash equivalents. The Fund
may invest in initial public offerings (IPOs).
The Fund may purchase other types of securities that are not primary investment
vehicles, for example: U.S. dollar denominated foreign securities, Standard &
Poor's Depositary Receipts (SPDRs) and other Exchange Traded Funds (ETFs), and
certain derivatives (investments whose value is based on indices or other secu-
rities). As an example of how derivatives may be used, the Fund may invest in
stock index futures to manage cash flow.
In abnormal market conditions, the Fund may take temporary defensive measures--
such as holding unusually large amounts of cash and cash equivalents--that are
inconsistent with the Fund's primary investment strategy. In taking those mea-
sures, the Fund may not achieve its investment goal.
--------------------------------------------------------------------------------
SUBADVISER
Goldman Sachs Asset Management,
A unit of the Investment Management
Division of Goldman, Sachs & Co.
32 Old Slip
New York, New York 10005
Managing since 1988
Managing Fund since August, 1999
Managed approximately $282 billion
in assets at the end of 2000
FUND MANAGERS
Robert C. Jones
-----------------
Managing Director of subadviser
Joined subadviser in 1989
Melissa R. Brown
-----------------
Managing Director of subadviser
Joined subadviser in 1998
Director of Quantitative Equity Research at Prudential Securities (1983-1998)
Victor H. Pinter
-----------------
Vice President of subadviser
Joined subadviser in 1989
PAST PERFORMANCE
The graph will show how the fund's total return varies from year to year, while
the table will show performance over time (along with a broad-based market
index for reference). This information may help provide an indication of the
fund's risks and potential rewards. All figures assume dividend reinvestment.
Past performance does not indicate future results. The performance figures
below do not reflect the deduction of fees and charges payable under the
variable contracts. Such fees and charges would cause the investment returns
under the contracts to be less than that shown below.
Year-by-year total returns -- calendar year
[GRAPH]
2000 5.12%
Best quarter: up 8.62%, third quarter 2000 Worst quarter: down 4.14%, first
quarter 2000
Average annual total returns -- for periods ending 12/31/2000*
Fund Index
1 year 5.12% 7.01%
Life of fund 6.58% 6.59%
Index: Russell 1000(R) Value Index
* Began operations on August 31, 1999.
A-1
MAIN RISKS
Primary
-------
Market Risk: The value of the securities in the Fund may go down in response
to overall stock or bond market movements. Markets tend to move in cycles,
with periods of rising prices and periods of falling prices. Stocks tend to go
up and down in value more than bonds. If the Fund's investments are concen-
trated in certain sectors, the Fund's performance could be worse than the
overall market.
Manager Risk: The manager and its strategy may fail to produce the intended
results. The Fund could underperform its peers or lose money if the manager's
investment strategy does not perform as expected.
Investment Category Risk: The returns of the Fund's specific equity investment
category may lag the returns of the overall stock market. For example, the
Fund's "value" approach carries the risk that in certain markets "value"
stocks will underperform "growth" stocks. Also, the Fund's "large cap"
approach carries the risk that in certain markets large cap stocks will
underperform small and mid cap stocks.
Secondary
---------
Derivatives Risk: Certain derivative instruments (such as options, futures and
swaps) can produce disproportionate gains or losses. They are generally con-
sidered more risky than direct investments. Also, in a down market, deriva-
tives could become harder to value or sell at a fair price.
Initial Public Offering Risk: The Fund has the ability to invest in initial
public offerings (IPOs) and a significant portion of the Fund's return may at
times be attributable to its investment in IPOs. IPOs could have a substantial
impact on performance, either positive or negative, particularly on a fund
with a small asset base. Also, the Fund's investments in IPOs may be subject
to more erratic price movements than the overall equity market.
-------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS The financial highlights table below is intended to help
you understand the Acquiring Fund's financial performance since its inception on
August 31, 1999. Certain information reflects financial results for a single
Fund share. The total returns in the table represent the rate that a shareholder
would have earned (lost) on an investment in the Fund (assuming reinvestment of
all dividends and distributions). Except for the information as of June 30, 2001
(which is unaudited) the information in the below table has been audited by
Ernst & Young LLP, whose report, along with the Fund's financial statements, are
included in the Trust's Annual Report to Shareholders for the year ended
December 31, 2000 (which is available upon request via the phone number or
address on the cover page of this Proxy Statement/Prospectus).
Six Months
Ended
6/30/01
Period: 1999** 2000 (Unaudited)
Net asset value, beginning of period $10.00 $ 10.16 $ 10.42
Income from investment operations:
Net investment income (loss) 0.04 0.15 0.04
Net realized and unrealized gain (loss) on investments* 0.31 0.36 (0.11)
Total from investment operations 0.35 0.51 (0.07)
Less distributions:
Distributions from net investment income and capital paid in (0.04) (0.16) (0.04)
Distributions from net realized gain on investments sold (0.14)*(j) (0.06)*(j) --
Distributions in excess of income, capital paid in & gains (0.01) (0.03) --
Total distributions (0.19) (0.25) (0.04)
Net asset value, end of period $10.16 $ 10.42 $ 10.31
Total investment return**** 3.58%(a) 5.12% (0.66%)(a)
Ratios and supplemental data
Net assets, end of period (000s omitted)($) $6,371 $18,164 $43,987
Ratio of expenses to average net assets (%)*** 0.85%(b)(c) 0.85%(c) 0.84%(b)(c)
Ratio of net investment income (loss) to average net assets
(%) 1.13%(b) 1.54% 0.93%(b)
Turnover rate (%) 30.90%(a) 59.15% 29.44%(a)
* The amount shown may not accord with the change in the aggregate gains and
losses in the fund securities for the period because of the timing of pur-
chases and withdrawals of shares in relation to the fluctuation in market
values of the fund.
** Fund began operations on August 31, 1999.
*** Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.17% and 1.09% for the years
ended December 31, 1999 and 2000, respectively.
**** The performance shown on this page does not reflect expenses and charges of
the applicable separate accounts and variable products, all of which vary
to a considerable extent and are described in your product's prospectus.
a Not annualized.
b Annualized.
c Expense ratio is net of expense reimbursements. Had such reimbursements not
been made, the annual expense ratio would have been 1.09% and 1.17% for the
years ended December 31, 2000 and 1999, respectively and 1.00% for the
period ended June 30, 2001.
A-2
Large/Mid Cap Value Fund
GOAL AND STRATEGY
This is a large/mid cap stock fund with a value emphasis that seeks long-term
capital appreciation.
The Fund invests primarily in a diversified mix of common stocks of large- and
mid-sized U.S. companies that are believed to offer favorable prospects for
increasing dividends and growth in capital.
The manager employs a value approach in selecting stocks, using proprietary
equity research to identify stocks having distinct value characteristics based
on industry- specific valuation criteria.
The manager screens the investable universe for:
. stocks in the Russell 1000(R) Value Index, or
. stocks with dividend yields greater than the Russell 1000(R) Index, or
. stocks with price/book ratios lower than the Russell 1000(R) Index.
The Fund's assets are allocated to industry-specific sub-portfolios that are
managed by each industry analyst. The manager oversees the Fund to maintain
capitalization and sector weights similar to the Russell 1000(R) Value Index.
The Fund normally invests in 90 to 130 stocks, with at least 65% (usually high-
er) of its assets in large and mid cap companies. The Fund normally has 10% or
less (usually lower) of its assets in cash and cash equivalents. The Fund may
invest in initial public offerings (IPOs).
The Fund may purchase other types of securities that are not primary investment
vehicles, for example: U.S. dollar denominated foreign securities, and certain
derivatives (investments whose value is based on indices or other securities).
As an example of how derivatives may be used, the Fund may invest in stock
index futures to manage cash flow.
In abnormal market conditions, the Fund may take temporary defensive measures--
such as holding unusually large amounts of cash and cash equivalents--that are
inconsistent with the Fund's primary investment strategy. In taking those mea-
sures, the Fund may not achieve its investment goal.
--------------------------------------------------------------------------------
SUBADVISER
Wellington Management Company, LLP
75 State Street
Boston, Massachusetts 02109
Managing, with predecessors, since 1928
Managing Fund since August, 1999
Managed approximately $274 billion
in assets at the end of 2000
FUND MANAGERS
Management by Global Research Team overseen by:
Doris Dwyer Chu
-----------------
Vice President of subadviser
Joined subadviser in 1998
Partner and portfolio manager at Grantham,
Mayo, Van Otterloo & Co. (1985-1998)
Laurie A. Gabriel
-----------------
Managing Partner of subadviser
Joined subadviser in 1976
PAST PERFORMANCE
The graph will show how the fund's total return varies from year to year, while
the table will show performance over time (along with a broad-based market
index for reference). This information may help provide an indication of the
fund's risks and potential rewards. All figures assume dividend reinvestment.
Past performance does not indicate future results. The performance figures
below do not reflect the deduction of fees and charges payable under the vari-
able contracts. Such fees and charges would cause the investment returns under
the contracts to be less than that shown below.
Year-by-year total returns -- calendar year
[GRAPH]
2000 13.41%
Best quarter: up 11.62%, first quarter 2000 Worst quarter: down 5.65%, fourth
quarter 2000
Average annual total returns -- for periods ending 12/31/2000*
Fund Index
1 year 13.41% 7.01%
Life of fund 13.76% 6.59%
Index: Russell 1000(R) Value Index
* Began operations on August 31, 1999.
A-3
MAIN RISKS
Primary
-------
Market Risk: The value of the securities in the Fund may go down in response to
overall stock or bond market movements. Markets tend to move in cycles, with
periods of rising prices and periods of falling prices. Stocks tend to go up
and down in value more than bonds. If the Fund's investments are concentrated
in certain sectors, the Fund's performance could be worse than the overall mar-
ket.
Small /Mid Cap Stock Risk: The Fund's investment in smaller or mid-sized compa-
nies may be subject to more erratic price movements than investment in large
established companies.
Manager Risk: The manager and its strategy may fail to produce the intended
results. The Fund could underperform its peers or lose money if the manager's
investment strategy does not perform as expected.
Investment Category Risk: The returns of the Fund's specific equity investment
category may lag the returns of the overall stock market. For example, the
Fund's "value" approach carries the risk that in certain markets "value" stocks
will underperform "growth" stocks. Also, the Fund's "large/mid cap" approach
carries the risk that large/mid cap stocks will underperform small cap stocks.
Secondary
---------
Derivatives Risk: Certain derivative instruments (such as options, futures and
swaps) can produce disproportionate gains or losses. They are generally consid-
ered more risky than direct investments. Also, in a down market, derivatives
could become harder to value or sell at a fair price.
Initial Public Offering Risk: The Fund has the ability to invest in initial
public offerings (IPOs) and a significant portion of the Fund's return may at
times be attributable to its investment in IPOs. IPOs could have a substantial
impact on performance, either positive or negative, particularly on a fund with
a small asset base. Also, the Fund's investments in IPOs may be subject to more
erratic price movements than the overall equity market.
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS The financial highlights table below is intended to help
you understand the Acquiring Fund's financial performance since its inception on
August 31, 1999. Certain information reflects financial results for a single
Fund share. The total returns in the table represent the rate that a shareholder
would have earned (lost) on an investment in the Fund (assuming reinvestment of
all dividends and distributions). Except for the information as of June 30, 2001
(which is unaudited) the information in the below table has been audited by
Ernst & Young LLP, whose report, along with the Fund's financial statements, are
included in the Trust's Annual Report to Shareholders for the year ended
December 31, 2000 (which is available upon request via the phone number or
address on the cover page of this Proxy Statement/Prospectus).
Six Months
Ended
6/30/01
Period: 1999** 2000 (Unaudited)
Net asset value, beginning of period $10.00 $ 10.42 $ 11.57
Income from investment operations:
Net investment income (loss) 0.03 0.09 0.05
Net realized and unrealized gain (loss) on investments* 0.45 1.30 (0.30)
Total from investment operations 0.48 1.39 (0.25)
Less distributions:
Distributions from net investment income and capital paid in (0.03) (0.10) (0.05)
Distributions from net realized gain on investments sold (0.02) (0.08) --
Distributions in excess of income, capital paid in & gains (0.01) (0.06) --
Total distributions (0.06) (0.24) (0.05)
Net asset value, end of period $10.42 $ 11.57 $ 11.27
Total investment return**** 4.72%(a) 13.41% (2.22)%(a)
Ratios and supplemental data
Net assets, end of period (000s omitted)($) $6,101 $15,728 $36,569
Ratio of expenses to average net assets (%)*** 1.05%(b)(c) 1.05%(c) 1.03%(b)(c)
Ratio of net investment income (loss) to average net assets
(%) 0.94%(b) 0.97% 0.88%(b)
Turnover rate (%) 23.03%(a) 86.97% 38.78%(a)
* The amount shown may not accord with the change in the aggregate gains and
losses in the fund securities for the period because of the timing of pur-
chases and withdrawals of shares in relation to the fluctuation in market
values of the fund.
** Fund began operations August 31, 1999.
*** Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.42% and 1.36% for the years
ended December 31, 1999 and 2000, respectively.
**** The performance shown on this page does not reflect expenses and charges of
the applicable separate accounts and variable products, all of which vary
to a considerable extent and are described in your product's prospectus.
(a) The amount shown at this caption for each Fund share outstanding throughout
the year may not accord with the change in aggregate gains and losses in
the portfolio securities for the year because of the timing of the
purchases and withdrawals of the Fund shares in relation to the fluctuating
market values of the portfolio.
(b) Annualized.
(c) Expense ratio is net of expense reimbursements. Had such reimbursements not
been made, the annual expense ratio would have been 1.36% and 1.42% for the
years ended December 31, 2000 and 1999, respectively, and 1.16% for the
period ended June 30, 2001.
A-4
Active Bond Fund
GOAL AND STRATEGY
This is an intermediate term bond fund of medium credit quality that seeks
income and capital appreciation.
The Fund primarily invests in a diversified mix of debt securities including:
. U.S. Treasury and agency securities;
. foreign government and agency securities (if dollar-denominated);
. corporate bonds, both U.S. and foreign (if dollar-denominated); and
. mortgage-backed and asset-backed securities.
The manager normally invests:
. mostly in investment grade debt securities; and
. no more than 25% of the Fund's assets in high yield bonds.
The manager seeks to identify specific bond sectors, industries and specific
bonds that are attractively priced. The manager tries to anticipate shifts in
the business cycle, using economic and industry analysis to determine which
sectors and industries might benefit over the next 12 months. The manager uses
proprietary research to identify securities that are undervalued.
The manager evaluates bonds of all quality levels and maturities from many dif-
ferent issuers. The Fund normally has an average credit rating of "A" or high-
er.
The Fund normally has 10% or less of its assets in cash and cash equivalents.
The Fund may purchase other types of securities that are not primary investment
vehicles, for example: emerging market debt securities, and certain derivatives
(investments whose value is based on indices or other securities). The manager
actively uses derivatives, such as futures, to adjust the Fund's average matu-
rity and seeks to keep the Fund's interest rate sensitivity in line with the
overall market.
In abnormal market conditions, the Fund may take temporary defensive measures--
such as holding unusually large amounts of cash and cash equivalents--that are
inconsistent with the Fund's primary investment strategy. In taking those mea-
sures, the Fund may not achieve its investment goal.
--------------------------------------------------------------------------------
SUBADVISER
John Hancock Advisers, Inc.
101 Huntington Avenue
Boston, Massachusetts 02199
Owned by John Hancock
Managing since 1968
Managing Fund since May, 1995
Managed approximately $32 billion in assets at the end of 2000
FUND MANAGER
James K. Ho, CFA
-----------------
Executive Vice President of subadviser
Managed fund since 1995
Associated with subadviser since 1985
Began career in 1977
PAST PERFORMANCE
The graph shows how the fund's total return has varied from year to year, while
the table shows performance over time (along with a broad-based market index
for reference). This information may help provide an indication of the fund's
risks and potential rewards. All figures assume dividend reinvestment. Past
performance does not indicate future results. The performance figures below do
not reflect the deduction of fees and charges payable under the variable
contracts. Such fees and charges would cause the investment returns under the
contracts to be less than that shown below.
Year-by-year total returns -- calendar years
[GRAPH]
1991 16.70%
1992 7.70%
1993 10.80%
1994 -2.57%
1995 19.55%
1996 4.10%
1997 10.11%
1998 8.23%
1999 -0.94%
2000 10.45%
Best quarter: up 7.14%, second quarter 1989 Worst quarter: down 2.51%, first
quarter 1994
Average annual total returns -- for periods ending 12/31/2000*
Fund Index
1 year 10.45% 11.63%
5 years 6.30% 6.46%
10 years 8.20% 7.96%
Life of fund 8.04% 8.16%
Index: Lehman Brothers Aggregate Bond Index
* Began operations on March 29, 1986.
A-5
MAIN RISKS
Primary
-------
Market Risk: The value of the securities in the Fund may go down in response to
overall stock or bond market movements. Markets tend to move in cycles, with
periods of rising prices and periods of falling prices. Stocks tend to go up
and down in value more than bonds. If the Fund's investments are concentrated
in certain sectors, the Fund's performance could be worse than the overall mar-
ket.
Manager Risk: The manager and its strategy may fail to produce the intended
results. The Fund could underperform its peers or lose money if the manager's
investment strategy does not perform as expected.
Interest Rate Risk: When interest rates rise, the Fund's bond yields will gen-
erally rise and the Fund's bond prices will generally fall. When interest rates
fall, the reverse will generally occur. The longer the average remaining matu-
rity of bonds held by the Fund, the more sensitive the Fund is to interest rate
risk. This Fund has more interest rate risk than a short-term bond fund, but
less interest rate risk than a long-term bond fund.
Credit Risk: An issuer of a bond held by the Fund may default on its obligation
to pay interest and repay principal. Also, the credit rating of a bond held by
the fund may be downgraded. In either case, the value of the bond held by the
Fund would fall. All bonds have some credit risk, but in general lower-rated
bonds have higher credit risk.
High Yield Bond Risk: Junk bonds, defined as bond securities rated below BBB-
/Baa3, may be subject to more volatile or erratic price movements due to
investor sentiment. In a down market, these high yield securities become harder
to value or to sell at a fair price.
Prepayment/Call Risk: The Fund's share price or yield could be hurt if interest
rate movements cause the Fund's mortgage-related and callable securities to be
paid off substantially earlier than expected.
Turnover Risk: In general, the greater the volume of buying and selling by a
fund (i.e., the higher its "turnover rate"), the greater the impact that bro-
kerage commissions and other transaction costs will have on the fund's perfor-
mance. Any turnover rate in excess of 100% is considered relatively high. Nor-
mally, the Fund's turnover rate will be greater than 100%.
Secondary
---------
Foreign Risk: The Fund's foreign securities will pose special risks, due to
limited government regulation, lack of public information, and economic, polit-
ical and social instability. Factors such as lack of liquidity, foreign owner-
ship limits and restrictions on removing currency also pose special risks. All
foreign securities have some degree of foreign risk. However, to the extent the
Fund invests in emerging market countries, it will have a significantly higher
degree of foreign risk than if it invested exclusively in developed or newly-
industrialized countries.
Derivatives Risk: Certain derivative instruments (such as options, futures and
swaps) can produce disproportionate gains or losses. They are generally consid-
ered more risky than direct investments. Also, in a down market, derivatives
could become harder to value or sell at a fair price.
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS The financial highlights table below is intended to help
you understand the Acquiring Fund's financial performance since January 1, 1996.
Certain information reflects financial results for a single Fund share. The
total returns in the table represent the rate that a shareholder would have
earned (lost) on an investment in the Fund (assuming reinvestment of all
dividends and distributions). Except for the information as of June 30, 2001
(which is unaudited) the information in the below table has been audited by
Ernst & Young LLP, whose report, along with the Fund's financial statements, are
included in the Trust's Annual Report to Shareholders for the year ended
December 31, 2000 (which is available upon request via the phone number or
address on the cover page of this Proxy Statement/Prospectus).
Six Months
Ended
6/30/01
Period: 1996 1997 1998 1999 2000 (Unaudited)
Net asset value, beginning
of period $10.13 $ 9.77 $ 9.95 $9.92 $ 9.12 $ 9.44
Income from investment
operations:
Net investment income
(loss) 0.69 0.71 0.69 0.67 0.64 0.29
Net realized and
unrealized gain (loss) on
investments* (0.31) 0.24 0.11 (0.76) 0.28 0.06
Total from investment
operations 0.38 0.95 0.80 (0.09) 0.92 0.35
Less distributions:
Distributions from net
investment income and
capital paid in (0.69) (0.71) (0.69) (0.71) (0.60) (0.30)
Distributions from net
realized gain on
investments sold (0.05) (0.06) (0.14) -- -- --
Distributions in excess of
income, capital paid in &
gains -- -- -- -- -- --
Total distributions (0.74) (0.77) (0.82) (0.71) (0.60) (0.30)
Net asset value, end of
period $ 9.77 $ 9.95 $ 9.92 $ 9.12 $ 9.44 $ 9.49
Total investment return** 4.10% 10.11% 8.23% (0.94)% 10.45% 3.63%(a)
Ratios and supplemental
data
Net assets, end of period
(000s omitted)($) $726,111 $803,770 $907,121 $850,286 $842,299 $816,297
Ratio of expenses to
average net assets (%) 0.29% 0.31% 0.29% 0.28% 0.41%(e) 0.71%(b)(c)
Ratio of net investment
income (loss) to average
net assets (%) 7.07% 7.18% 6.84% 6.97% 6.98% 6.13%(b)(d)
Turnover rate (%) 119.12% 138.29% 228.74% 182.90% 224.24% 130.85%(a)
* The amount shown may not accord with the change in the aggregate gains and
losses in the fund securities for the period because of the timing of pur-
chases and withdrawals of shares in relation to the fluctuation in market
values of the fund.
** the performance shown on this page does not reflect expenses and charges of
the applicable separate accounts and variable products, all of which vary to
a considerable extent and are described in your product's prospectus.
(a) The amount shown at this caption for each Fund share outstanding throughout
the year may not accord with the change in aggregate gains and losses in the
portfolio securities for the year because of the timing of the purchases and
withdrawls of the Fund shares in relation to the fluctuating market values
of the portfolio.
(b) Annualized.
(c) Expense ratio is net of expense reimbursements. Had such reimbursements not
been made, the annual expense ratio would have been .73% for the period
ended June 30, 2001.
(d) Had the Fund not amortized premiums on debt securities, the annual ratio of
net income to average net assets would have been 6.33% for the period ended
June 30, 2001.
(e) Expense ratio is net of expense reimbursements. Had such reimbursements not
been made, the annual expense ratio would have been .44% for the year ended
December 31, 2000.
A-6
Managed Fund
GOAL AND STRATEGY
This is a non-diversified balanced stock and bond fund that seeks income and
long-term capital appreciation.
The Fund invests primarily in a diversified mix of:
. common stocks of large and mid sized U.S. companies, and
. bonds with an overall intermediate term average maturity.
The Fund employs two subadvisers, each of which employs its own investment
approach and independently manages its portion of the Fund. On or about Novem-
ber 1, 2000, the assets of the Fund were allocated between the two subadvisers
with Capital Guardian receiving $500 million (approximately 16% of the Fund's
assets as of October 31, 2000) and Independence the remainder. All subsequent
investments in the Fund will be allocated equally between the two subadvisers,
while redemptions will be allocated on an asset-weighted basis. These alloca-
tion methodologies may change in the future.
Independence Investment LLC ("Independence") selects stocks and bonds using a
combination of proprietary research and quantitative tools. Stocks are pur-
chased that are undervalued relative to the stock's history and have improving
earnings growth prospects. Bonds are purchased that are attractively priced
based upon market fundamentals and technical factors. Independence seeks to
maintain risk and sector characteristics of the Fund similar to those of the
overall equity market.
Independence's portion of the Fund has a target mix of 60% equities and 40%
bonds, but Independence actively manages the mix within +/- 10 percentage
points of the target mix. Independence normally invests its equity portion in
80 to 160 stocks, with at least 65% (usually higher) in large cap companies.
Independence may invest up to 30% of its bond assets in high yield and foreign
bonds (denominated in foreign currencies).
Capital Guardian Trust Company ("Capital Guardian") selects stocks and bonds
using proprietary fundamental research that focuses on identifying securities
that are believed to be undervalued (i.e., with current prices below long-term
value).
Capital Guardian's portion of the Fund has a target mix of 70% equities and 30%
bonds, but Capital Guardian actively manages the mix within +/- 15 percentage
points of the target mix.
Capital Guardian uses a multiple portfolio manager system in which the stock
and bond portions of the Fund are each managed by multiple portfolio managers
and/or research analysts. Capital Guardian's strategy is normally broadly
diversified since its exposures reflect the aggregate decisions of the multiple
portfolio managers and research analysts.
Capital Guardian's equity sector exposures are a result of stock selection as
opposed to prede termined allocations. Capital Guardian normally invests its
equity portion in 75 to 150 stocks, with at least 65% (usually higher) in large
and mid cap companies. Capital Guardian may invest up to 30% of its bond assets
in high yield and foreign bonds (denominated in foreign currencies).
The Fund is "non-diversified," which means that it can take larger positions in
individual issuers.
Each portion of the Fund normally has 10% or less (usually lower) of its assets
in cash and cash equivalents. Each portion of the Fund may invest in initial
public offerings (IPOs). Each portion of the Fund may purchase other types of
securities that are not primary investment vehicles, for example: U.S. dollar
denominated foreign securities, and certain derivatives (investments whose
value is based on indices or other securities). Each portion of the Fund may
use derivatives, such as futures and forwards, to manage the Fund's average
maturity and to implement foreign currency strategies.
In abnormal market conditions, each portion of the Fund may take temporary
defensive measures--such as holding unusually large amounts of cash and cash
equivalents--that are inconsistent with the Fund's primary investment strategy.
In taking those measures, the Fund may not achieve its investment goal.
--------------------------------------------------------------------------------
SUBADVISER
Independence Investment LLC
53 State Street
Boston, Massachusetts 02109
Owned by John Hancock
Managing since 1982
Managing Fund and its predecessor since March, 1986
Managed approximately $25 billion in assets at the end of 2000
FUND MANAGERS
Management by investment team overseen by:
John C. Forelli (equity)
-----------------
Senior Vice President of subadviser
Joined team in 1996
Joined subadviser in 1990
Jay C. Leu, CFA (fixed income)
-----------------
Senior Vice President of subadviser
Joined team in 1998
Joined subadvisor in 1997
Portfolio Manager, Pacific Capital Asset Management (1995-1997)
SUBADVISER
Capital Guardian Trust Company
333 South Hope Street
Los Angeles, California 90071
Managing since 1968
Managing Fund since November, 2000
Managed approximately $122 billion in assets at the end of 2000
FUND MANAGERS
Equity
Managed by team of 23 research analysts
Average of 10 years with Capital Guardian
Average of 14 years industry experience
Fixed Income
Team managed by 3 portfolio managers
Average of 15 years with Capital Guardian
Average of 18 years industry experience
See Appendix A for more details
PAST PERFORMANCE
The graph shows how the fund's total return has varied from year to year, while
the table shows performance over time (along with a broad-based market index
for reference). This information may also help provide an indication of the
fund's risks and potential rewards. All figures assume dividend reinvestment.
Past performance does not indicate future results. The performance figures
below do not reflect the deduction of fees and charges payable under the
variable contracts. Such fees and charges would cause the investment returns
under the contracts to be less than that shown below.
Year-by-year total returns -- calendar years
[GRAPH]
1991 22.00%
1992 7.70%
1993 11.60%
1994 -2.23%
1995 27.09%
1996 10.72%
1997 18.72%
1998 20.42%
1999 9.10%
2000 0.03%
Best quarter: up 14.77%, fourth quarter 1998 Worst quarter: down 7.22%, third
quarter 1998
Average annual total return -- for periods ending 12/31/2000*
Fund Index 1 Index 2 Index 3**
1 year 0.03% -9.11% 11.63% -0.99%
5 years 11.55% 18.35% 6.46% 12.96%
10 years 12.15% 17.46% 7.96% 13.02%
Life of fund 11.57% 15.26% 8.16% 12.09%
Index 1: S&P 500 Index
Index 2: Lehman Brothers Aggregate Bond Index
Index 3: A composite index combining the performance of the following indices
over the periods indicated: 50% S&P 500 Index/50% Lehman Brothers
Aggregate Bond Index (from inception through December, 1997) and 60%
S&P 500 Index/40% Lehman Brothers Aggregate Bond Index (after December,
1997)
* Began operations on March 29, 1986.
** John Hancock believes Index 3 is a more suitable index against which to meas-
ure the fund's performance because it more closely matches the fund's changes
in investment strategy since inception.
A-7
MAIN RISKS
Primary
-------
Market Risk: The value of the securities in the Fund may go down in response to
overall stock or bond market movements. Markets tend to move in cycles, with
periods of rising prices and periods of falling prices. Stocks tend to go up
and down in value more than bonds. If the Fund's investments are concentrated
in certain sectors, the Fund's performance could be worse than the overall
market.
Manager Risk: The manager and its strategy may fail to produce the intended
results. The Fund could underperform its peers or lose money if the manager's
investment strategy does not perform as expected.
Market Allocation Risk: The allocation of the Fund's assets among major asset
classes (i.e., stocks, bonds, and short-term debt securities) may (1) reduce
the Fund's holdings in a class whose value then increases unexpectedly, or (2)
increase the Fund's holdings in a class just prior to its experiencing a loss
of value.
Investment Category Risk: The returns of the Fund's specific equity investment
category may lag the returns of the overall stock market. For example, the
Fund's "large/mid cap" approach carries the risk that in certain markets
large/mid cap stocks will underperform small cap stocks.
Non-Diversified Fund Risk: The Fund's larger position in individual issuers
could produce more volatile performance relative to more diversified funds. The
less diversified a fund's holdings are, the more likely it is that a specific
security's poor performance will hurt the fund significantly.
Interest Rate Risk: When interest rates rise, the Fund's bond yields will gen-
erally rise and the Fund's bond prices will generally fall. When interest rates
fall, the reverse will generally occur. The longer the average remaining matu-
rity of bonds held by the Fund, the more sensitive the Fund is to interest rate
risk. This Fund has more interest rate risk than a short-term bond fund, but
less interest rate risk than a long-term bond fund.
Credit Risk: An issuer of a bond held by the Fund may default on its obligation
to pay interest and repay principal. Also, the credit rating of a bond held by
the Fund may be downgraded. In either case, the value of the bond held by the
Fund would fall. All bonds have some credit risk, but in general lower-rated
bonds have higher credit risk.
Small/Mid Cap Stock Risk: The Fund's investment in smaller or mid-sized compa-
nies may be subject to more erratic price movements than investment in large
established companies.
High Yield Bond Risk: Junk bonds, defined as bond securities rated below BBB-
/Baa3, may be subject to more volatile or erratic price movements due to
investor sentiment. In a down market, these high yield securities become harder
to value or to sell at a fair price.
Prepayment/Call Risk: The Fund's share price or yield could be hurt if interest
rate movements cause the Fund's mortgage-related and callable securities to be
paid off substantially earlier than expected.
Turnover Risk: In general, the greater the volume of buying and selling by a
fund (i.e., the higher its "turnover rate"), the greater the impact that bro-
kerage commissions and other transaction costs will have on the fund's perfor-
mance. Any turnover rate in excess of 100% is considered relatively high. Nor-
mally, the Fund's turnover rate will be greater than 100%.
Secondary
Foreign Risk: The Fund's foreign securities will pose special risks, due to
limited government regulation, lack of public information, economic, political
and social instability and foreign currency rate fluctuations. Factors such as
lack of liquidity, foreign ownership limits and restrictions on removing
currency also pose special risks. However, to the extent the Fund invests in
emerging market countries, it will have a significantly higher degree of
foreign risk than if it invested exclusively in developed or newly-
industrialized countries.
Derivatives Risk: Certain derivative instruments (such as options, futures and
swaps) can produce disproportionate gains or losses. They are generally consid-
ered more risky than direct investments. Also, in a down market, derivatives
could become harder to value or sell at a fair price.
Initial Public Offering Risk: The Fund has the ability to invest in initial
public offerings (IPOs) and a significant portion of the Fund's return may at
times be attributable to its investment in IPOs. IPOs could have a substantial
impact on performance, either positive or negative, particularly on a fund with
a small asset base. Also, the Fund's investments in IPOs may be subject to more
erratic price movements than the overall equity market.
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS The financial highlights table below is intended to help
you understand the Acquiring Fund's financial performance since January 1, 1996.
Certain information reflects financial results for a single Fund share. The
total returns in the table represent the rate that a shareholder would have
earned (lost) on an investment in the Fund (assuming reinvestment of all
dividends and distributions). Except for the information as of June 30, 2001
(which is unaudited) the information in the below table has been audited by
Ernst & Young LLP, whose report, along with the Fund's financial statements, are
included in the Trust's Annual Report to Shareholders for the year ended
December 31, 2000 (which is available upon request via the phone number or
address on the cover page of this Proxy Statement/Prospectus).
Six Months
Ended
6/30/01
Period: 1996 1997 1998 1999 2000 (Unaudited)
Net asset value,
beginning of period $13.73 $13.35 $14.35 $15.64 $15.45 $ 13.82
Income from investment
operations:
Net investment income
(loss) 0.61 0.59 0.46 0.44 0.44 0.15
Net realized and
unrealized gain (loss)
on investments* 0.81 1.86 2.43 0.94 (0.45) (0.38)
Total from investment
operations 1.42 2.45 2.89 1.38 (0.01) (0.23)
Less distributions:
Distributions from net
investment income and
capital paid in (0.61) (0.67) (0.51) (0.43) (0.44) (0.15)
Distributions from net
realized gain on
investments sold (1.19) (0.78) (1.09) (1.14) (1.18) --
Distributions in excess
of income, capital
paid in & gains -- -- -- -- -- --
Total distributions (1.80) (1.45) (1.60) (1.57) (1.62) (0.15)
Net asset value, end of
period $13.35 $14.35 $15.64 $15.45 $13.82 $ 13.44
Total investment return** 10.72% 18.72% 20.42% 9.10% 0.03% (1.73)%(a)
Ratios and supplemental
data
Net assets, end of
period (000s
omitted)($) $2,386,660 $2,800,127 $3,301,910 $3,430,919 $2,995,794 $2,729,864
Ratio of expenses to
average net assets (%) 0.36% 0.37% 0.36% 0.36% 0.46% 0.77%(b)
Ratio of net investment
income (loss) to
average net assets (%) 4.41% 4.18% 2.99% 2.75% 2.86% 2.19%(b)(c)
Turnover rate (%) 113.61% 200.41% 160.57% 203.86% 210.35% 90.71%(a)
* The amount shown may not accord with the change in the aggregate gains and
losses in the fund securities for the period because of the timing of pur-
chases and withdrawals of shares in relation to the fluctuation in market
values of the fund.
** The performance shown on this page does not reflect expenses and charges of
the applicable separate accounts and variable products, all of which vary to
a considerable extent and are described in your product's prospectus.
(a) Not annualized.
(b) Annualized.
(c) Had the Fund not amortized premiums on debt securities, the annual ratio of
net income to average net assets would have been 1.58% for the period ended
June 30, 2001.
A-8
Growth & Income Fund
GOAL AND STRATEGY
This is a non-diversified large and mid-cap stock fund that seeks income and
long-term capital appreciation.
The Fund invests primarily in a diversified mix of common stocks of large and
mid-sized U.S. companies.
The Fund employs two subadvisers, each of which employs its own investment
approach and independently manages its portion of the Fund. On or about Novem-
ber 1, 2000, the assets of the Fund were allocated between the two subadvisers
with Putnam receiving $1 billion (approximately 26% of the Fund's assets as of
October 31, 2000) and Independence the remainder. All subsequent investments in
the Fund will be allocated equally between the two subadvisers, while redemp-
tions will be allocated on an asset-weighted basis. These allocation methodolo-
gies may change in the future.
Independence Investment LLC ("Independence") selects stocks using a combination
of proprietary equity research and quantitative tools. Stocks are purchased
that are undervalued relative to the stock's history and have improving earn-
ings growth prospects.
Independence seeks to maintain risk and sector characteristics similar to the
market benchmark for its portion of the Fund. Independence normally invests in
80 to 160 stocks, with at least 65% (usually higher) of its assets in large cap
companies.
Putnam Investment Management, LLC ("Putnam") selects stocks using a combination
of:
. a systematic screening approach to rank stocks based on: fundamental cata-
lyst (such as earnings surprise and momentum); valuation (such as price-to-
sales ratio); and financial strength (such as superior cash flow); and
. proprietary fundamental equity research to identify companies with strong
and innovative management teams, opportunities for above average growth
within their industry and strong competitive positioning relative to peers
and suppliers.
Putnam seeks broad diversification by security and sector and uses risk manage-
ment tools and qualitative judgement to determine sector and stock-specific
weightings. Putnam normally invests in 65 to 110 stocks, with at least 65%
(usually higher) of its assets in large and mid cap companies.
The Fund is "non-diversified", which means that it can take larger positions in
individual issuers.
Each portion of the Fund normally has 10% or less (usually lower) of its assets
in cash and cash equivalents. Each portion of the Fund may invest in initial
public offerings (IPOs). Each portion of the Fund may purchase other types of
securities that are not primary investment vehicles, for example: U.S. dollar
denominated foreign securities, and certain derivatives (investments whose
value is based on indices or other securities). As an example of how deriva-
tives may be used, Putnam may invest in stock index futures to manage cash
flow.
In abnormal market conditions, each portion of the Fund may take temporary
defensive measures--such as holding unusually large amounts of cash and cash
equivalents--that are inconsistent with the Fund's primary investment strategy.
In taking those measures, the Fund may not achieve its investment goal.
--------------------------------------------------------------------------------
SUBADVISER
Independence Investment LLC
53 State Street
Boston, Massachusetts 02109
Owned by John Hancock
Managing since 1982
Managing Fund and its predecessor since March, 1986
Managed approximately $25 billion in assets at end of 2000
FUND MANAGERS
Management by investment team overseen by:
Paul F. McManus
-----------------
Senior Vice President of subadviser
Joined team in 1996
Joined subadviser in 1982
SUBADVISER
Putnam Investment Management, LLC
One Post Office Square
Boston, Massachusetts 02109
Managing since 1937
Managing Fund since November, 2000
Managed approximately $370 Billion in assets at the end of 2000
FUND MANAGERS
Management by investment team overseen by:
C. Beth Cotner, CFA
-----------------
Managing Director and Chief Investment Officer of subadviser
Joined subadviser in 1995
Began career in 1976
PAST PERFORMANCE
The graph shows how the fund's total return has varied from year to year, while
the table shows performance over time (along with a broad-based market index
for reference). This information may also help provide an indication of the
fund's risks and potential rewards. All figures assume dividend reinvestment.
Past performance does not indicate future results. The performance figures
below do not reflect the deduction of fees and charges payable under the
variable contracts. Such fees and charges would cause the investment returns
under the contracts to be less than that shown below.
Year-by-year total returns -- calendar years
[GRAPH]
1991 26.00%
1992 8.90%
1993 13.33%
1994 -0.56%
1995 34.21%
1996 20.10%
1997 29.79%
1998 30.25%
1999 16.23%
2000 -13.10%
Best quarter: up 24.07%, fourth quarter 1998 Worst quarter: down 12.05%, third
quarter 1998
Average annual total return -- for periods ending 12/31/2000*
Fund Index
1 year -13.10% -9.11%
5 years 15.44% 18.35%
10 years 15.58% 17.46%
Life of fund 14.17% 15.26%
Index: S & P 500 Index
*Began operations on March 29, 1986.
A-9
MAIN RISKS
Primary
-------
Market Risk: The value of the securities in the Fund may go down in response
to overall stock or bond market movements. Markets tend to move in cycles,
with periods of rising prices and periods of falling prices. Stocks tend to go
up and down in value more than bonds. If the Fund's investments are concen-
trated in certain sectors, the Fund's performance could be worse than the
overall market.
Manager Risk: The manager and its strategy may fail to produce the intended
results. The Fund could underperform its peers or lose money if the manager's
investment strategy does not perform as expected.
Investment Category Risk: The returns of the Fund's specific equity investment
category may lag the returns of the overall stock market. For example, the
Fund's "large/mid cap" approach carries the risk that in certain markets
large/mid cap stocks will underperform small cap stocks.
Non-Diversified Fund Risk: The Fund's larger position in individual issuers
could produce more volatile performance relative to more diversified funds.
The less diversified a fund's holdings are, the more likely it is that a spe-
cific security's poor performance will hurt the fund significantly.
Small/Mid Cap Stock Risk: The Fund's investment in smaller or mid-sized compa-
nies may be subject to more erratic price movements than investment in large
established companies.
Turnover Risk: In general, the greater the volume of buying and selling by a
fund (i.e., the higher its "turnover rate"), the greater the impact that bro-
kerage commissions and other transaction costs will have on the fund's perfor-
mance. Any turnover rate in excess of 100% is considered relatively high. Nor-
mally, the Fund's turnover rate will be greater than 100%.
Initial Public Offering Risk: The fund has the ability to invest in initial
public offerings (IPOs) and a significant portion of the Fund's return may at
times be attributable to its investment in IPOs. IPOs could have a substantial
impact on performance, either positive or negative, particularly on a fund
with a small asset base. Also, the Fund's investments in IPOs may be subject
to more erratic price movements than the overall equity market.
Secondary
---------
Derivatives Risk: Certain derivative instruments (such as options, futures and
swaps) can produce disproportionate gains or losses. They are generally con-
sidered more risky than direct investments. Also, in a down market, deriva-
tives could become harder to value or sell at a fair price.
-------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS The financial highlights table below is intended to help
you understand the Acquiring Fund's financial performance since January 1, 1996.
Certain information reflects financial results for a single Fund share. The
total returns in the table represent the rate that a shareholder would have
earned (lost) on an investment in the Fund (assuming reinvestment of all
dividends and distributions). Except for the information as of June 30, 2001
(which is unaudited) the information in the below table has been audited by
Ernst & Young LLP, whose report, along with the Fund's financial statements, are
included in the Trust's Annual Report to Shareholders for the year ended
December 31, 2000 (which is available upon request via the phone number or
address on the cover page of this Proxy Statement/Prospectus).
Six Months
Ended
6/30/01
Period: 1996 1997 1998 1999 2000 (Unaudited)
Net asset value,
beginning of period $13.94 $ 14.65 $ 16.61 $ 19.49 $ 20.01 $ 14.18
Income from investment
operations:
Net investment income
(loss) 0.34 0.27 0.23 0.20 0.17 0.02
Net realized and
unrealized gain (loss)
on investments* 2.43 4.07 4.75 2.88 (2.77) (1.31)
Total from investment
operations 2.77 4.34 4.98 3.08 (2.60) (1.29)
Less distributions:
Distributions from net
investment income and
capital paid in (0.34) (0.27) (0.23) (0.20) (0.40) (0.02)
Distributions from net
realized gain on
investments sold (1.72) (2.11) (1.87) (2.36) (2.69) --
Distributions in excess
of income, capital
paid in & gains -- -- -- -- (0.14) --
Total distributions (2.06) (2.38) (2.10) (2.56) (3.23) (0.02)
Net asset value, end of
period $ 14.65 $ 16.61 $ 19.49 $ 20.01 $ 14.18 $ 12.87
Total investment return** 20.10% 29.79% 30.25% 16.23% (13.10)% (9.13)%(a)
Ratios and supplemental
data
Net assets, end of
period (000s
omitted)($) $2,047,927 $2,785,964 $3,670,785 $4,218,841 $3,324,988 $2,799,990
Ratio of expenses to
average net assets (%) 0.27% 0.28% 0.27% 0.28% 0.40% 0.77%(b)(c)
Ratio of net investment
income (loss) to
average net assets (%) 2.24% 1.61% 1.24% 0.98% 0.84% (0.35)%(b)
Turnover rate (%) 81.02% 74.56% 48.45% 70.16% 112.94% 43.75%(a)
* The amount shown may not accord with the change in the aggregate gains and
losses in the fund securities for the period because of the timing of pur-
chases and withdrawals of shares in relation to the fluctuation in market
values of the fund.
** The performance shown on this page does not reflect expenses and charges of
the applicable separate accounts and variable products, all of which vary to
a considerable extent and are described in your product's prospectus.
(a) Not annualized.
(b) Annualized.
(c) Expense ratio is net of expense reimbursements. Had such reimbursements not
been made, the annual expense ratio would have been .78% for the period
ended June 30, 2001.
A-10
APPENDIX B - Performance Information Pertaining to each Acquiring Fund
Information about the performance of each Acquiring Portfolio appears below
on the following pages:
Acquiring Fund Page
-------------- ----
Large Cap Value CORE/SM/...............................B-2
Large/Mid Cap Value....................................B-3
Active Bond............................................B-4
Managed................................................B-5
Growth & Income........................................B-7
B-1
Inception: August 31, 1999
Large Cap Value CORE Fund
Goldman Sachs Asset Management Brown/Jones/Pinter
During the one-year reporting period the Large Cap Value CORE Fund generated a
total cumulative return of 5.12%, versus the 7.01% total cumulative return of
the Fund's benchmark, the Russell 1000 Value Index.
The Fund's strategy is a well-defined investment process that has historically
provided consistent, risk-managed performance. The diversification of our
models typically adds value because, when one theme doesn't work, others
usually do. For example, when momentum stocks underperform, value stocks
typically advance more than average.
Over the reporting period the returns of our various investment themes were
extremely erratic. In fact, virtually every theme experienced one of its best
months since inception, as well as at least one of its worst months ever. In
addition, some months saw extremely positive returns for one variable and
extremely negative for another--reflecting the high overall return dispersion
nature of the market.
The CORE themes struggled within the Index universe, especially the Value
theme. In particular, Value had its two worst quarters (second and fourth
quarters) since inception, and the fourth quarter of 2000 marked the worst
quarter since inception of our Momentum and Stability themes. Though Research
did not do as badly as the other three themes, it did have a slightly negative
return for the year. Strong stock selection within the Financial and Consumer
Non-Cyclical sectors helped returns, though we lagged the benchmark in the
Consumer Services and Consumer Cyclical sectors.
Looking ahead, we continue to believe that cheaper stocks should outpace more
expensive ones, good momentum stocks should do better than poor momentum
stocks, lower-risk stocks should perform better than higher risk stocks, as
should those favored by research analysts. As such, we anticipate remaining
fully invested and expect that the value we add over time will be due to stock
selection, as opposed to sector or size allocations.
[GRAPH]
Large Cap Value Russell 1000
CORE Fund Value Index
8/31/99 $10,000.00 $10,000.00
9/30/99 9,710.99 9,650.00
10/31/99 10,331.58 10,205.84
11/30/99 10,222.01 10,126.23
12/31/99 10,357.99 10,174.84
1/31/00 9,966.70 9,843.14
2/29/00 9,306.14 9,111.80
3/31/00 10,353.69 10,223.43
4/30/00 10,235.53 10,104.84
5/31/00 10,315.02 10,210.94
6/30/00 9,925.40 9,744.30
7/31/00 10,094.18 9,866.11
8/31/00 10,735.04 10,414.66
9/30/00 10,780.50 10,510.48
10/31/00 10,929.67 10,769.04
11/30/00 10,420.97 10,369.50
12/31/00 10,888.02 10,889.02
Top Ten Holdings (as of December 31, 2000)
--------------------------------------------------------------------------
% of six months ago
investments % of investments
Citigroup, Inc. 4.3% 1.4%
Exxon Mobil Corp. 3.9% 2.2%
SBC Communications, Inc. 2.4% 1.1%
Johnson & Johnson 2.3% 0.1%
American International Group, Inc. 2.3% 0.8%
Merck & Co., Inc. 2.1% N/A
Verizon Communications 1.9% N/A
Wells Fargo & Co. 1.8% 0.6%
Chevron Corp. 1.6% 0.7%
Morgan Stanley, Dean Witter, Discover & Co. 1.4% 0.4%
Average Annual Total Returns*
---------------------------------------------------------------------------
Large Cap Russell 1000 MorningStar
Value CORE Fund Value Index Peer Group+
---------------- ------------ -----------
1 Year 5.12% 7.01% 7.01%
Since Inception (8/31/99) 6.58 6.60 N/A
Top Ten Sectors (as of December 31, 2000)
---------------------------------------------------------------------------
% of % of
investments investments
Financial 29.8% Consumer Cyclical 8.0%
Energy 11.0% Capital Equipment 7.8%
Health Care 9.4% Technology 7.4%
Utility 8.7% Basic Material 4.0%
Consumer Staple 8.1% Retail 3.0%
* Total returns are for the period ended December 31, 2000. Returns represent
past performance, assume reinvestment of all distributions and are not
indicative of future performance. "Results may have been achieved during
market conditions or pursuing performance opportunities that may not continue
to occur in the future." Investment returns and principal value of fund shares
will fluctuate so that shares, when redeemed, may be worth more or less than
their original cost. The performance of the fund on this page is reported net
of Trust level charges (i.e. investment management fees and operating
expenses). It does not reflect expense and charges of the applicable separate
accounts and variable products, all of which vary to a considerable extent and
are described in your product prospectus.
+ Source: MorningStar, Inc. Data as of 12/31/00. Although gathered from reliable
sources, data completeness and accuracy cannot be guaranteed. Represents an
average annual return for all variable annuity and life sub-accounts within
the MorningStar variable universe having a Large Value investment category.
B-2
Inception: August 31, 1999
Large/Mid Cap Value Fund
Wellington Management Company, LLP D. Chu/L. Gabriel
During the fourth quarter, the Large/Mid Cap Value Fund gained 4.14%,
outperforming the Fund's benchmark, the Russell 1000 Value Index, which
increased 3.6% for the quarter ended December 31, 2000. For the one-year
period ending December 31, 2000 the Fund returned 13.41% well ahead of its
2001 benchmark which only increased 7.0%.
The US equity market lost ground during the fourth quarter due to fears over
eroding corporate earnings, high energy prices, and uncertainty concerning the
outcome of the US presidential election. Growth stocks lagged while value
issues led the way as the Russell 1000 Value Index (3.6%) outperformed the
Russell 1000 Growth Index (-21.4%) during the fourth quarter.
During the quarter, the Fund's sector weights were kept closely in line with
those of the Russell 1000 Value Index. The sectors in the Fund that added the
most value were finance and energy. Conversely, the utilities and health care
sectors detracted from returns.
Some of the Fund's largest contributors through stock selection during the
quarter include: Washington Mutual, which was the Fund's top performer,
Ultramar Diamond Shamrock, which was a solid performer in the energy sector,
and Fannie Mae, which was able to beat expectations, driven by strong loan
growth and stable credit conditions.
The year 2000 was the beginning of what we believe to be a longer-term rally
in US larger capitalization value stocks. A Euro that has strengthened from
the 2000 lows will boost larger-company profits, while continued consolidation
in many economically sensitive sectors will drive the returns of many value
stocks upward in the quarters to come. As we begin the New Year, we continue
to believe that broad diversification across economic sectors is a central
tenet of the investment strategy. We will continue to look for opportunities
in large cap stocks that represent value through active Fund management.
[GRAPH]
Large/Mid Cap Russell 1000
Value Fund Value Index
8/31/99 $10,000 $10,000
9/30/99 9,787 9,650
10/31/99 10,352 10,206
11/30/99 10,295 10,126
12/31/99 10,472 10,175
1/31/00 10,031 9,843
2/29/00 9,614 9,112
3/31/00 10,829 10,223
4/30/00 10,445 10,105
5/31/00 10,607 10,211
6/30/00 10,218 9,744
7/31/00 10,452 9,866
8/31/00 11,179 10,415
9/30/00 11,405 10,510
10/31/00 11,710 10,769
11/30/00 11,229 10,370
12/31/00 11,877 10,889
Top Ten Holdings (as of December 31, 2000)
--------------------------------------------------------------------------
% of six months ago
investments % of investments
Citigroup, Inc. 3.3% 2.2%
Verizon Communications 3.1% N/A
Washington Mutual, Inc. 2.9% N/A
Exxon Mobile Corp. 2.6% N/A
Federal National Mortgage Assoc. 2.4% 1.0%
American International Group, Inc. 2.4% 0.8%
Cigna Corp. 2.2% 0.7%
Wachovia Corp. 2.0% 0.7%
KeyCorp N/A N/A
Sara Lee Corp. 1.9% 0.3%
Average Annual Total Returns*
---------------------------------------------------------------------------
Large/Mid Cap Russell 1000 MorningStar
Value Fund Value Index Peer Group+
------------- ------------ -----------
1 Year 13.41% 7.01% 11.37%
Since Inception (8/31/99) 13.76 6.60 N/A
Top Ten Sectors (as of December 31, 2000)
---------------------------------------------------------------------------
% of % of
investments investments
Financial 8.6% Utility 5.1%
Technology 8.5% Health Care 4.7%
Capital Equiptment 7.9% Consumer Staple 4.1%
Energy 7.6% Basic Material N/A
Consumer Staple 7.5% Retail 2.9%
* Total returns are for the period ended December 31, 2000. Returns represent
past performance, assume reinvestment of all distributions and are not
indicative of future performance. "Results may have been achieved during
market conditions or pursuing performance opportunities, including
investment in initial public offerings, that may not continue to occur in
the future." Investment returns and principal value of fund shares will
fluctuate so that shares, when redeemed, may be worth more or less than
their original cost. Small-company investing entails special risks outlined
in the prospectus. The performance of the fund on this page is reported net
of Trust level charges (i.e. investment management fees and operating
expenses). It does not reflect expense and charges of the applicable
separate accounts and variable products, all of which vary to a
considerable extent and are described in your product prospectus.
+ Source: MorningStar, Inc. Data as of 12/31/00. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for all variable annuity and
life sub-accounts within the Morningstar variable universe having a 50%
weighting of the Large Cap Value category and a 50% weighting of the
Mid Cap Value category.
B-3
Inception: March 29, 1986
Active Bond Fund (Formerly Sovereign Bond Fund)
John Hancock Advisers, Inc. James Ho
During the quarter the Fund gained 3.84%, underperforming the Lehman
Aggregate Index at 4.21%. YTD the Fund performed well on an absolute basis,
returning 10.45%, though underperforming the index return of 11.63%.
Underperformance can be attributed to the Fund's bias towards spread product,
as most spread sectors underperformed Treasuries for both periods. Treasuries
had their best year of performance since 1995. Our underweight position in
this sector relative to the benchmark, for both the quarter and year,
detracted from performance results. The Fund's overweight position in
corporate bonds relative to the index detracted from performance results for
both the quarter and 2000.
With the unexpected and aggressive rate cut on January 3rd, the Fed
effectively put a floor under the economy and the risk of recession is greatly
reduced. Given an expected upturn in the economy later in 2001 in response to
this stimulus action, we think interest rates may be close to bottom. We plan
to use periods of market strength to reduce interest rate sensitivity by
shortening duration. With a backdrop of a stronger economy expected, we plan
to reduce our defensive stance. We'll likely reduce our Treasury holdings and
asset backed securities and increase investments in the high-yield sector,
which currently offers very attractive values and yields. We'll also look for
attractive values among lower-rated investment grade issues. Additionally,
we're likely to move away from defensive industry sectors-- such as energy,
health care and utilities-in favor of more economically sensitive sectors such
as autos, home building and financials. Our neutral weighting in mortgage
securities is likely to remain constant, and we will emphasize prepayment-
resistant securities with coupons of between 6% and 7%. Emerging markets may
present opportunities, especially if the U.S. economy rebounds.
[GRAPH]
Active Bond Active Bond Active Bond Active Bond
Fund Benchmark Fund Benchmark
12/31/90 $10,000 $10,000 01/31/96 $16,299 $16,061
01/31/91 10,081 10,112 02/29/96 15,986 15,721
02/28/91 10,204 10,199 03/31/96 15,888 15,589
03/31/91 10,298 10,269 04/30/96 15,808 15,481
04/30/91 10,448 10,387 05/31/96 15,804 15,455
05/31/91 10,526 10,436 06/30/96 15,964 15,662
06/30/91 10,534 10,425 07/31/96 16,015 15,698
07/31/91 10,648 10,556 08/31/96 16,027 15,660
08/31/91 10,889 10,799 09/30/96 16,317 15,939
09/30/91 11,110 11,025 10/31/96 16,664 16,311
10/31/91 11,219 11,123 11/30/96 16,925 16,611
11/30/91 11,313 11,234 12/31/96 16,868 16,426
12/31/91 11,666 11,613 01/31/97 16,931 16,446
01/31/92 11,553 11,441 02/28/97 17,011 16,481
02/29/92 11,583 11,501 03/31/97 16,831 16,284
03/31/92 11,554 11,438 04/30/97 17,061 16,522
04/30/92 11,628 11,507 05/31/97 17,253 16,676
05/31/92 11,822 11,730 06/30/97 17,479 16,876
06/30/92 11,976 11,902 07/31/97 18,003 17,392
07/31/92 12,265 12,207 08/31/97 17,826 17,198
08/31/92 12,398 12,316 09/30/97 18,115 17,468
09/30/92 12,565 12,483 10/31/97 18,271 17,747
10/31/92 12,412 12,292 11/30/97 18,372 17,841
11/30/92 12,374 12,281 12/31/97 18,573 18,028
12/31/92 12,559 12,492 01/31/98 18,828 18,283
01/31/93 12,783 12,765 02/28/98 18,812 18,246
02/28/93 13,049 13,030 03/31/98 18,919 18,303
03/31/93 13,121 13,075 04/30/98 19,011 18,394
04/30/93 13,203 13,175 05/31/98 19,180 18,591
05/31/93 13,196 13,169 06/30/98 19,364 18,781
06/30/93 13,467 13,468 07/31/98 19,400 18,796
07/31/93 13,581 13,554 08/31/98 19,591 19,162
08/31/93 13,868 13,865 09/30/98 20,040 19,710
09/30/93 13,936 13,914 10/31/98 19,852 19,570
10/31/93 13,951 13,971 11/30/98 20,043 19,688
11/30/93 13,846 13,813 12/31/98 20,102 19,735
12/31/93 13,911 13,874 01/31/99 20,287 19,875
01/31/94 14,114 14,082 02/28/99 19,871 19,402
02/28/94 13,855 13,775 03/31/99 20,013 19,499
03/31/94 13,561 13,438 04/30/99 20,076 19,548
04/30/94 13,440 13,326 05/31/99 19,859 19,346
05/31/94 13,417 13,302 06/30/99 19,809 19,286
06/30/94 13,404 13,271 07/31/99 19,769 19,232
07/31/94 13,621 13,537 08/31/99 19,730 19,217
08/31/94 13,654 13,542 09/30/99 19,906 19,390
09/30/94 13,495 13,338 10/31/99 19,946 19,462
10/31/94 13,473 13,323 11/30/99 20,016 19,460
11/30/94 13,448 13,299 12/31/99 19,913 19,366
12/31/94 13,554 13,387 01/31/00 19,830 19,302
01/31/95 13,812 13,644 02/29/00 20,053 19,536
02/28/95 14,143 13,960 03/31/00 20,256 19,794
03/31/95 14,253 14,054 04/30/00 20,178 19,736
04/30/95 14,459 14,249 05/31/00 20,160 19,727
05/31/95 15,081 14,846 06/30/00 20,583 20,137
06/30/95 15,211 14,965 07/31/00 20,748 20,320
07/31/95 15,145 14,907 08/31/00 21,062 20,615
08/31/95 15,320 15,098 09/30/00 21,181 20,745
09/30/95 15,474 15,252 10/31/00 21,293 20,882
10/31/95 15,726 15,476 11/30/00 21,576 21,224
11/30/95 15,960 15,731 12/31/00 21,994 21,619
12/31/95 16,203 15,962
Top Ten Holdings (as of December 31, 2000)
---------------------------------------------------------------------------
% of six months ago
investments % of investments
Government National Mortgage Assoc. 25.9% 22.1%
U.S. Treasury 11.4% 18.4%
Federal National Mortgage Assoc. 8.8% 10.4%
GMAC Commercial Mortgage Securities, Inc. 1.4% 1.4%
Peco Energy Transition Trust 1.3% 0.3%
Hydro-Quebec 1.1% 1.1%
Amresco Residential Securities 1.0% 1.0%
Morgan Stanley Capital 1.0% N/A
UCFC Home Equity Loan 1.0% 1.5%
Cleveland Electric Illuminating Co. 0.8% 0.8%
Average Annual Total Returns*
---------------------------------------------------------------------------
Active Bond Active Bond MorningStar
Fund Benchmark(1) Peer Group+
-------- --------------- -----------
1 Year 10.45% 11.63% 8.21%
3 Years 5.80 6.24 4.86
5 Years 6.30 6.25 5.69
10 Years 8.20 7.62 7.80
Fund Composition (as of December 31, 2000)
---------------------------------------------------------------------------
Credit Quality Duration
-------------- --------
Short Term 5.30% less than 1 Year 5.30%
AAA 44.80% 1-3 Years 0.30%
AA 8.0% 3-5 Years 0.00%
A 13.80% 5-10 Years 86.60%
BBB 15.40% greater than 10 Years 7.80%
BB 8.80%
B 3.50%
Below B 0.00%
NR/NA 0.40%
(1) The Active Bond Benchmark represents the Lehman Brothers Government/
Corporate Bond Index from April 1986 to September 1999 and Lehman
Brothers Aggregate Bond Index from October 1999 to present.
* Total returns are for the period ended December 31, 2000, returns
represent past performance, assume reinvestment of all distributions,
and are not indicative of future performance. "Results may have been
achieved during market conditions or pursuing performance
opportunities that may not continue to occur in the future."
Investment returns and principal value of fund shares will fluctuate
so that shares, when redeemed, may be worth more or less than their
original cost. The performance of the fund on this page is reported
net of Trust level charges (i.e. investment management fees and
operating expenses). It does not reflect expense and charges of the
applicable separate accounts and variable products, all of which vary
to a considerable extent and are described in your product
prospectus.
+ Source: MorningStar, Inc. Data as of 12/31/00. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for all variable annuity and
life sub-accounts within the MorningStar variable universe having an
Intermediate Term Bond investment category.
B-4
Inception: March 29, 1986
Managed Fund
Independence Investment LLC J. Forrelli/J. Leu
Capital Guardian Trust Company Management Team
Effective November 1, the Fund was modified to a multi-managed investment
approach.
The Managed Fund is a multi-manager fund with two sub-advisers, each of which
employs its own investment approach and independently manages its portion of
the Fund. The two managers employ a distinct and complementary investment
strategy. The multi-manager approach seeks to produce more consistent
investment returns over market cycles and to reduce the risk of any one
manager or strategy being out of favor in certain market environments.
Independence has a normal target mix of 60% stocks and 40% bonds and selects
stocks and bonds using a combination of fundamental equity research and
quantitative tools Capital Guardian has a normal target of 70% stocks and 30%
bonds and selects stocks and bonds using a fundamental, research-driven
approach. Capital Guardian also employs a multiple-manager approach by which
each portfolio manager and the research analysts as a group each manage a
separate portion of the portfolio to capture the highest conviction ideas of
the investment team.
As of December 31, 2000, Independence managed approximately 84% and Capital
Guardian managed approximately 16% of the Fund's assets. The Fund returned 0.03%
compared to -0.99% for the benchmark.
Independence Investment LLC
We are pleased to report that your portfolio ended a difficult and volatile
year ahead of its benchmark.
We were able to add value above the S&P 500 through solid stock selection
during the fourth quarter. Health care names such as Bristol Myers and Merck
were especially strong, due to their consistent and reliable earnings growth.
Financial stocks also performed well, driven higher by the sentiment that the
Fed will soon begin to cut interest rates. Finally, many retailers, such as
TJX and Kohls, came back strong in the fourth quarter.
The domestic fixed income portion of your portfolio outperformed the Lehman
Aggregate index during the quarter due to its overweight in agency bonds as
spreads tightened. The domestic fixed income portion benefited from its
overweight in finance, which was the stronger-performing corporate sector.
Your bond portfolio's international bond exposure was raised to 20% during the
quarter. The exposure to international bonds also had a positive impact on
your portfolio's performance.
The pressure on US corporate profits will continue into 2001. We project flat
corporate earnings in 2001, followed by a rebound in 2002. We expect US GDP to
increase 2% in 2001 after roaring ahead by 5% in 2000. A better environment
will unfold later in 2001 as central banks led by the US Fed begin to ease and
investors look past the slowdown. We also remain constructive on the fixed
income markets. Shorter-term interest rates should decline further as the
economy continues to moderate. Looking forward, corporate bonds will be helped
by a more accommodative Fed and a steepening yield curve. Deteriorating
fundamentals in the short term will make issue and sector selection critical.
Capital Guardian Trust Company
Overweighting stocks versus bonds hindered returns in the fourth quarter.
Within U.S. equities, owning significantly less in technology-related stocks
than the index was beneficial to returns. Holding several software stocks that
bucked the downward trend also helped. Over the quarter we reduced our
exposure to the communications services and equipment areas and increased our
exposure to food, beverage, drug, and semi-conductor-related companies.
Within the fixed-income Fund returns within sectors were good, though our
sector mix worked against us. Our overweight position in corporate securities
hindered relative returns. Duration was kept close to neutral, though more
importantly, we increased our exposure to the intermediate part of the yield
curve, which was helpful.
We are continuing to shift assets away from fixed income and toward U.S.
equities. Stock prices and interest rates have both declined significantly,
bringing equity valuations back to reasonable levels. From a bottom-up view,
our U.S. equity analysts are finding attractive opportunities. While we are
optimistic about equities in general, we continue to have concerns in the
technology, media, and telecommunications area, and another downturn would not
surprise us. Earnings estimates for these companies might be lowered further,
given the cooler economic environment.
Bonds, on the other hand, have rallied and real yields have dropped from near
the top of their traditional range to near the bottom. While we were early in
shifting away from bonds, we believe the market has now fully priced in a
major economic slowdown. Within our bond Funds we have an emphasis on
corporate securities. While government bonds have led the rally, spreads to
corporate securities are as wide or wider than in the early 1990s and have
much room for improvement.
B-5
Inception: March 29, 1986
Managed Fund
Independence Investment LLC J. Forelli/J. Leu
Capital Guardian Trust Company Management Team
[GRAPH]
Managed Fund Managed Benchmark(1)
12/31/90 $10,000 $10,000
01/31/91 10,282 10,277
02/28/91 10,683 10,689
03/28/91 10,836 10,854
04/30/91 10,889 10,931
05/31/91 11,166 11,191
06/28/91 10,876 10,929
07/31/91 11,134 11,254
08/30/91 11,400 11,515
09/30/91 11,433 11,540
10/31/91 11,576 11,668
11/27/91 11,420 11,491
12/31/91 12,198 12,341
01/31/92 12,009 12,135
02/28/92 12,093 12,244
03/31/92 11,938 12,090
04/30/92 12,190 12,303
05/29/92 12,364 12,455
06/30/92 12,401 12,457
07/31/92 12,746 12,866
08/31/92 12,649 12,794
09/30/92 12,808 12,956
10/30/92 12,688 12,879
11/30/92 12,941 13,090
12/31/92 13,139 13,289
01/29/93 13,307 13,483
02/26/93 13,509 13,715
03/31/93 13,753 13,887
04/30/93 13,548 13,770
05/28/93 13,751 13,953
06/30/93 13,957 14,135
07/30/93 13,941 14,146
08/31/93 14,413 14,579
09/30/93 14,469 14,551
10/29/93 14,636 14,729
11/30/93 14,497 14,575
12/31/93 14,663 14,696
01/31/94 15,006 15,052
02/28/94 14,608 14,685
03/31/94 14,180 14,185
04/29/94 14,253 14,219
05/31/94 14,255 14,322
06/30/94 14,113 14,129
07/29/94 14,431 14,504
08/31/94 14,655 14,803
09/30/94 14,346 14,513
10/31/94 14,409 14,671
11/30/94 14,186 14,388
12/30/94 14,336 14,541
01/31/95 14,605 14,869
02/28/95 15,043 15,330
03/31/95 15,239 15,609
04/28/95 15,578 15,945
05/31/95 16,175 16,594
06/30/95 16,412 16,856
07/31/95 16,673 17,104
08/31/95 16,873 17,237
09/29/95 17,373 17,687
10/31/95 17,407 17,786
11/30/95 17,966 18,323
12/29/95 18,220 18,627
01/31/96 18,501 19,005
02/29/96 18,424 18,895
03/29/96 18,445 18,907
04/30/96 18,482 18,980
05/31/96 18,704 19,208
06/28/96 18,882 19,377
07/31/96 18,468 18,968
08/30/96 18,626 19,146
09/30/96 19,211 19,855
10/31/96 19,679 20,359
11/29/96 20,434 21,320
12/31/96 20,173 20,992
01/31/97 20,651 21,655
02/28/97 20,722 21,766
03/31/97 20,239 21,182
04/30/97 20,787 21,970
05/30/97 21,389 22,748
06/30/97 21,969 23,392
07/31/97 23,211 24,678
08/29/97 22,554 23,854
09/30/97 23,311 24,694
10/31/97 23,079 24,479
11/28/97 23,632 25,110
12/31/97 23,949 25,457
01/31/98 24,214 25,770
02/27/98 25,313 26,865
03/31/98 26,249 27,725
04/30/98 26,427 27,947
05/29/98 26,341 27,765
06/30/98 27,082 28,537
07/31/98 26,802 28,377
08/31/98 24,292 26,101
09/30/98 25,127 27,349
10/30/98 26,464 28,626
11/30/98 27,569 29,731
12/31/98 28,838 30,796
01/29/99 29,276 31,655
02/26/99 28,479 30,844
03/31/99 29,086 31,653
04/30/99 29,923 32,428
05/28/99 29,450 31,854
06/30/99 30,496 32,873
07/30/99 29,856 32,203
08/31/99 29,669 32,100
09/30/99 29,293 31,721
10/29/99 30,426 32,971
11/30/99 30,621 33,373
12/31/99 31,463 34,488
01/31/00 30,286 33,401
02/29/00 29,874 33,184
03/31/00 32,026 35,308
04/28/00 31,551 34,630
05/31/00 31,278 34,197
06/30/00 31,845 34,987
07/31/00 31,673 34,788
08/31/00 33,123 36,287
09/29/00 32,100 35,227
10/31/00 32,267 35,231
11/30/00 30,904 33,797
12/31/00 31,471 34,149
Top Ten Holdings (as of December 31, 2000)
---------------------------------------------------------------------------
% of six months ago
investments % of investments
Federal National Mortgage Assoc. 2.7% 11.1%
U.S. Treasury 2.2% 3.1%
Pfizer, Inc. 1.8% 0.5%
General Electric Co. 1.6% 3.1%
Citigroup, Inc. 1.6% 2.2%
Government National Mortgage Assoc. 1.4% 3.4%
Republic of Italy 1.4% 1.2%
Bank of America Corp. 1.4% N/A
Exxon Mobil Corp. N/A 1.0%
Cisco Systems, Inc. 1.2% 2.6%
Average Annual Total Returns*
---------------------------------------------------------------------------
Managed Managed MorningStar
Fund Benchmark (1) Peer Group+
------- ------------- -----------
1 Year 0.03% -0.99% 2.10%
3 Years 9.53 10.28 8.39
5 Years 11.55 12.89 11.47
10 Years 12.15 12.41 12.21
Top Ten Sectors (as of December 31, 2000)
---------------------------------------------------------------------------
% of % of
investments investments
Financial 23.7% Consumer Cyclical 5.3%
Governmental 22.7% Retail 4.1%
Technology 13.0% Energy 4.0%
Health Care 11.0% Utility 3.9%
Capital Equipment 7.3% Consumer Staple 2.8%
(1) The Managed Benchmark represents 50% S&P 500/50% Lehman Brothers
Government/Corporate Bond from April 1986 to December 1997 then 60% S&P
500/40% Lehman Brothers Government/Corporate Bond from 1998 to April 1998
and now 60% S&P 500/40% Lehman Brothers Aggregate Bond from May 1998 to
present.
* Total returns are for the period ended December 31, 2000. Returns
represent past performance, assume reinvestment of all distributions and
are not indicative of future performance. "Results may have been achieved
during market conditions or pursuing performance opportunities that may
not continue to occur in the future." Investment returns and principal
value of fund shares will fluctuate so that shares, when redeemed, may be
worth more or less than their original cost. The performance of the fund
on this page is reported net of Trust level charges (i.e. investment
management fees and operating expenses). It does not reflect expense and
charges of the applicable separate accounts and variable products, all
of which vary to a considerable extent and are described in your product
prospectus.
+ Source: MorningStar, Inc. Data as of 12/31/00. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for all variable annuity and
life sub-accounts within the Morningstar variable universe having a
Domestic Hybrid investment category.
B-6
Inception: March 29, 1986
Growth & Income Fund
Independence Investment LLC Paul F. McManus
Putnam Investments C. Beth Cotner
Effective November 1, the Fund was modified to a multi-managed investment
approach
The Growth & Income Fund is a multi-manager fund with two sub-advisers each
independently managing their own portion of the Fund. The two managers employ
a distinct and complementary investment strategy. This unique multi-manager
approach seeks to produce more consistent investment returns over market
cycles and to reduce the risk of any one manager or strategy being out of
favor in certain market environments.
Independence selects stocks using a combination of fundamental equity research
and quantitative tools and focuses on large cap stocks that are undervalued
relative to the stock's history and have improving earnings growth prospects.
Putnam selects stocks using a systematic screening approach and fundamental
equity research and focuses on large and mid cap stocks with opportunities for
above average growth.
As of December 31, 2000, Independence managed approximately 77% and Putnam
managed approximately 23% of the Fund's assets. For the year, the Fund
performed - 13.10% below the benchmark's performance of -9.11%.
Independence Investment LLC
The Fund outperformed the benchmark in the fourth quarter. Stock prices
declined in the period as fears over an accelerating economic slowdown were
discounted in the market. Increasing numbers of technology companies began to
preannounce earnings shortfalls. The Fund was modestly underweight technology
stocks, and this benefited portfolio performance, although specific stock
selection skill was slightly negative. Health care was over weighted,
particularly in large drug companies. Both stock selection and the active
overweight benefited performance for the quarter. Holdings in Bristol Meyers,
Merck and Pharmacia Upjohn helped the portfolio. Electric utilities were
another positive are as investors were becoming even more defensive as the
economy was slowing. Perceived as safer technology stocks, information
services companies like First Data Corp and EDS did relatively well and helped
portfolio performance.
With the market being defensive, food and beverage stocks did well. We had an
underweight there as valuations did not justify the purchases of some of the
stocks. This relative underweight negatively impacted performance in the
quarter. In the media area, fears of the slowing economy affected the
broadcasters as advertising budgets became suspect. Also, the delay of Time
Warner--AOL adversely affected performance of those stocks.
Looking forward, we continue to maintain a broad sector neutral strategy
while emphasizing individual stock selection. Based upon the relative
valuation of stocks we will continue to select the best stocks within
industries based upon their valuation and outlook for sustainable earnings
growth.
Putnam Investments
The Fund benefited from overweighting the robust energy, conglomerate,
utilities, and financial sectors, along with strong stock selection. In
particular, exceptional stock performance by one of our holdings (Tyco) made
conglomerates the greatest contributor to performance. The next-largest
contribution came from energy, where oil services stocks boosted returns; in
financial services, insurance (American International Group) and investment
banking/brokerage (Goldman Sachs) aided performance.
The single largest detractor from performance came from technology, where the
benefit of being underweight in a very weak sector was more than offset by
poor stock performance in software (Openwave Systems, Veritas Software),
communications equipment (Redback Networks, Juniper Networks), and business
applications software (Agile Software, I2 Technologies). Fund performance was
also hindered by health care (underweighting pharmaceuticals and weak stock
selection in biotechnology); overweighting communications services (the worst-
performing sector), along with weak stock performance from that sector in the
cellular industry (Sprint PCS, Nextel); underweighting consumer staples (along
with not owning non-alcoholic beverage companies and owning weak TV
broadcasting companies); and finally, underweighting consumer cyclicals.
In the volatile environment of the new year, we anticipate additional
earnings disappointments, especially in stocks leveraged to the consumer. We
believe that the current environment will continue to place pressure on
rapidly expanding, high-quality growth companies. We have concentrated the
Fund on companies with a proven record of expanding profits even in unsettled
economic times. Higher energy prices should benefit oil and gas producers and
energy services companies. Going forward, we will be overweight energy (oil
services) and financial services (banking/brokerage services and insurance)
stocks while underweighting technology (communications equipment and software)
and consumer staples (media and TV broadcasting.)
B-7
Inception: March 29, 1986
Growth & Income Fund
Independence Investment LLC Paul F. McManus
Putnam Investments C. Beth Cotner
[GRAPH]
Growth & Income S&P 500. Growth & Income S&P 500.
Fund Index Fund Index
12/31/90 $10,000 $10,000 01/31/96 $21,300 $22,266
01/31/91 10,449 10,442 02/29/96 21,576 22,479
02/28/91 11,145 11,190 03/31/96 21,852 22,695
03/31/91 11,406 11,456 04/30/96 22,098 23,029
04/30/91 11,401 11,488 05/31/96 22,609 23,623
05/31/91 11,844 11,980 06/30/96 22,733 23,720
06/31/91 11,266 11,432 07/31/96 21,659 22,664
07/31/91 11,655 11,967 08/31/96 22,175 23,145
08/31/91 11,905 12,249 09/30/96 23,205 24,445
09/30/91 11,760 12,048 10/31/96 23,772 25,115
10/31/91 11,933 12,209 11/30/96 25,354 27,021
11/30/91 11,518 11,716 12/31/96 24,918 26,492
12/31/91 12,596 13,055 01/31/97 26,201 28,137
01/31/92 12,375 12,812 02/28/97 26,344 28,365
02/29/92 12,522 12,976 03/31/97 25,318 27,185
03/31/92 12,311 12,722 04/30/97 26,545 28,808
04/30/92 12,702 13,092 05/31/97 27,985 30,577
05/31/92 12,827 13,163 06/30/97 29,088 31,940
06/30/92 12,732 12,972 07/31/97 31,688 34,476
07/31/92 12,734 13,495 08/31/97 30,083 32,559
08/31/92 12,911 13,222 09/30/97 31,832 34,344
09/30/92 13,056 13,374 10/31/97 30,635 33,197
10/31/92 13,033 13,422 11/30/97 31,787 34,734
11/30/92 13,541 13,875 12/31/97 32,341 35,331
12/31/92 13,717 14,056 01/31/98 32,690 35,723
01/31/93 13,858 14,159 02/28/98 35,358 38,299
02/28/93 14,052 14,350 03/31/98 37,336 40,260
03/31/93 14,487 14,659 04/30/98 37,439 40,666
04/30/93 14,101 14,299 05/31/98 37,030 39,967
05/31/93 14,467 14,686 06/30/98 38,602 41,590
06/30/93 14,609 14,734 07/31/98 38,151 41,149
07/31/93 14,530 14,665 08/31/98 32,294 35,199
08/31/93 15,115 15,223 09/30/98 33,951 37,455
09/30/93 15,142 15,111 10/31/98 36,978 40,500
10/31/93 15,400 15,418 11/30/98 39,191 42,954
11/30/93 15,263 15,273 12/31/98 42,123 45,428
12/31/93 15,545 15,460 01/31/99 43,536 47,327
01/31/94 16,007 15,978 02/28/99 42,184 45,855
02/28/94 15,541 15,547 03/31/99 43,433 47,690
03/31/94 14,939 14,871 04/30/99 45,263 49,535
04/30/94 15,199 15,064 05/31/99 43,943 48,366
05/31/94 15,257 15,310 06/30/99 46,973 51,051
06/30/94 14,980 14,931 07/31/99 45,365 49,458
07/31/94 15,385 15,426 08/31/99 44,829 49,210
08/31/94 15,957 16,053 09/30/99 43,592 47,862
09/30/94 15,486 15,667 10/31/99 46,142 50,892
10/31/94 15,733 16,025 11/30/99 46,676 51,925
11/30/94 15,211 15,437 12/31/99 47,579 54,983
12/31/94 15,459 15,663 01/31/00 47,808 52,223
01/31/95 15,777 16,070 02/29/00 48,957 51,236
02/28/95 16,400 16,693 03/31/00 45,974 56,247
03/31/95 16,763 17,187 04/30/00 44,819 54,554
04/30/95 17,252 17,688 05/31/00 49,836 53,436
05/31/95 17,826 18,386 06/30/00 48,617 54,750
06/30/95 18,232 18,818 07/31/00 47,976 53,896
07/31/95 18,814 19,445 08/31/00 48,744 57,243
08/31/95 18,936 19,498 09/30/00 48,151 54,221
09/30/95 19,757 20,314 10/31/00 51,130 53,993
10/31/95 19,628 20,243 11/30/00 48,040 49,738
11/30/95 20,456 21,134 12/31/00 34,913 49,982
12/31/95 20,748 21,525
Top Ten Holdings (as of December 31, 2000)
---------------------------------------------------------------------------
% of six months ago
investments % of investments
General Electric Co. 3.3% 5.9%
Pfizer, Inc. 3.0% 0.9%
Cisco Systems, Inc. 2.4% 4.6%
Citigroup, Inc. 2.3% 4.1%
Merck & Co., Inc. 2.2% 1.6%
Microsoft Corp. 2.1% 7.1%
Exxon Mobil Corp. 2.1% 1.4%
Wal-Mart Stores, Inc. 1.9% 1.5%
Intel Corp. N/A 3.1%
Tyco International, Ltd. 1.9% 1.5%
Average Annual Total Returns*
---------------------------------------------------------------------------
Growth & Income S&P 500 MorningStar
Fund Index Peer Group+
-------- ----------- -----------
1 Year -13.10% -9.11% -7.52%
3 Years 9.57 12.26 11.71
5 Years 15.44 18.35 17.02
10 Years 15.58 16.56 16.58
Top Ten Sectors (as of December 31, 2000)
---------------------------------------------------------------------------
% of % of
investments investments
Technology 28.1% Energy 5.6%
Health Care 17.9% Consumer Cyclical 4.9%
Financial 15.4% Utility 4.5%
Capital Equipment 13.6% Consumer Staple 1.7%
Retail 5.6% Basic Material 1.6%
* Total returns are for the period ended December 31, 2000. Returns
represent past performance, assume reinvestment of all distributions and
are not indicative of future performance. "Results may have been achieved
during market conditions or pursuing performance opportunities that may
not continue to occur in the future." Investment returns and principal
value of fund shares will fluctuate so that shares, when redeemed, may be
worth more or less than their original cost. The performance of the Fund
on this page is reported net of Trust level charges (i.e. investment
management fees and operating expenses). It does not reflect expense and
charges of the applicable separate accounts and variable products, all
of which vary to a considerable extent and are described in your product
prospectus.
. "Standard & Poor's 500" is a trademark of the McGraw-Hill companies, Inc.
and has been licensed for use by John Hancock Life Insurance Company. The
product is not sponsored, endorsed, fold or promoted by Standard & Poor's
and Standard & Poor's makes no representation regarding the advisability
of investing in the product.
+ Source: MorningStar, Inc. Data as of 12/31/00. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for all variable annuity and
life sub-accounts within the MorningStar variable universe having a
Large Blend investment category.
B-8
APPENDIX C - Share Ownership Information
As of the close of business on October 10, 2001 (the record date for
----------------
the shareholders meeting), there were the following shares outstanding:
Name of Fund Number of Shares
------------ ----------------
Large Cap Value CORE/SM/ II.............................. 631,192
Large/Mid Cap Value II................................... 7,591,097
Active Bond II........................................... 751,004
Aggressive Balanced...................................... 1,869,281
Mid Cap Blend............................................ 1,755,916
Each share is entitled to one vote, and fractional votes will be counted.
The number of a Fund's shares attributable to each owner of a variable life
insurance contract or certificate ("VLI Contract") is determined by dividing, as
of the record date of the shareholders meeting, the VLI Contract's cash (or
account) value (less any outstanding indebtedness) in the applicable Account
subaccount corresponding to that Fund by the net asset value of one share of
that Fund as of that same date. The number of a Fund's shares attributable to
each owner of a variable annuity contract ("VA Contract") is determined by
dividing, as of the record date of the meeting, the value of the "accumulation
shares" under the VA Contract (or, for each Contract under which annuity
payments have commenced, the amount of the Contract's reserves) in the
applicable Account subaccount by the net asset value of one share of that Fund
as of that same date.
As of the close of business on October 10, 2001, John Hancock, JHVLICO and
----------------
IPL had in the aggregate the following numbers of shares representing their
contributions and other amounts in the Accounts that are in excess of the
amounts attributable to their outstanding Contracts.
Percentage of Total
Name of Fund Number of Shares Shares Outstanding
------------ ---------------- ------------------
Large Cap Value CORE/SM/ II...... 507,675 80.4%
Large/Mid Cap Value II........... 0 0%
Active Bond II................... 539,775 71.9%
Aggressive Balanced.............. 522,487 28.0%
Mid Cap Blend.................... 123,131 7.0%
[No Contract owner had voting authority over as much as 5% of any of the
above-listed Funds' shares as of the record date.] Nor did the Trust's officers
and Trustees, collectively, have such authority over as much as 1% of either
Fund's shares.
Information not available.
LARGE CAP VALUE CORE/SM/ II FUND*
LARGE/MID CAP VALUE II FUND**
ACTIVE BOND II FUND***
AGGRESSIVE BALANCED FUND
MID CAP BLEND FUND
(each an "Acquired Fund" and a separate investment fund of John Hancock
Variable Series Trust I),
197 Clarendon Street
Boston, MA 02117,
Toll Free: 1-800-732-5443)
LARGE CAP VALUE CORE/SM/ FUND
LARGE/MID CAP VALUE FUND
ACTIVE BOND FUND
MANAGED FUND
GROWTH & INCOME FUND
(each an "Acquiring Fund" and a separate investment fund of John Hancock
Variable Series Trust I)
STATEMENT OF ADDITIONAL INFORMATION
Dated: November __, 2001
This Statement of Additional Information ("SAI") is not a prospectus, but you
should read it in conjunction with the Combined Proxy Statement and Prospectus
dated November __, 2001 of the above-listed Acquired Funds and Acquiring
Funds, for use in connection with the Special Meeting of Shareholders of the
Acquired Funds, to be held on December 5, 2001. The Acquired Funds and the
Acquiring Funds are separate investment funds (series) of John Hancock Variable
Series Trust I (the "Trust").
For a free copy of the Combined Proxy Statement and Prospectus, please contact
the Trust at the address or phone number shown above.
This Statement of Additional Information consists of this cover page and the
following described documents, each of which is attached hereto:
Attachment 1. Statement of Additional Information for the Trust dated May
1, 2001.
Attachment 2. Annual Report of the Trust for the period ended December 31,
2000.
Attachment 3. Semi-annual Report of the Trust for the period ended June 30,
2001.
Attachment 4. Pro-forma financial statements relating to the proposed
combination of the Large Cap Value CORE/SM/ II Fund with the
Large Cap Value CORE/SM/ Fund and the proposed combination of
the Large/Mid Cap Value II Fund with the Large/Mid Cap Value
Fund.
* Known as the American Leaders Large Cap Value Fund prior to January 1, 2001.
** Known as the Mid Cap Value Fund prior to January 1, 2001.
*** Known as the Core Bond Fund prior to January 1, 2001.
ATTACHMENT 1.
JOHN HANCOCK
VARIABLE SERIES TRUST I
STATEMENT OF ADDITIONAL INFORMATION
May 1, 2001
This Statement of Additional Information is not a prospectus. It is
intended that this Statement of Additional Information be read in conjunction
with the Prospectus of John Hancock Variable Series Trust I, dated May 1, 2001.
A copy of the Prospectus may be obtained from John Hancock Variable Series Trust
I, John Hancock Place, P.O. Box 111, Boston, Massachusetts 02117, telephone
number 1-800-REAL LIFE.
This Statement of Additional Information relates to all thirty-three of the
Trust's current "Funds."
THE TRUST'S FINANCIAL STATEMENTS AND INVESTMENT PERFORMANCE INFORMATION
The Trust's financial statements appearing in its Annual Report to contract
holders and the report of Ernst & Young LLP, independent auditors of the Trust,
which appears therein, are incorporated by reference into this Statement of
Additional Information. The information about the total investment returns
achieved by the Trust's various Funds, is also incorporated herein by reference.
No other portions of the Annual Report are incorporated by reference. A free
copy of the Annual Report to contract holders may be obtained by writing to the
address or calling the number above.
1
TABLE OF CONTENTS
PAGE IN THIS
STATEMENT OF
ADDITIONAL
INFORMATION
-----------
The Trust's Financial Statements and Performance Information........... 1
What Is the Trust?..................................................... 4
The Trust's Business History........................................... 4
The Funds' Investment Activities and Their Risks....................... 5
1. Investing in Money Market Instruments........................ 5
2. Investing in Other Fixed Income Obligations.................. 5
3. Investing in Equity Securities............................... 7
4. Investing in Real Estate Securities.......................... 9
5. Investing in Foreign Securities.............................. 10
6. Using Forward Exchange Contracts to Manage Currency 11
Exposure....................................................
7. Using Options on Currencies to Manage Currency Exposure...... 12
8. Using Currency Futures Contracts and Options
Thereon to Manage Currency Exposure......................... 13
9. Using Certain Other Derivative Instruments to Manage
Currency Exposure........................................... 13
10. Using Foreign Currency Exposure Management Strategies
(General Considerations and Risks).......................... 13
11. Reallocating a Fund's Assets Among Asset Classes............. 14
12. Adopting a Temporary Defensive Strategy...................... 14
13. Investing With an Index-Based Objective...................... 14
14. Investing on a Non-Diversified Basis......................... 16
15. Using Options (Generally).................................... 17
16. Using Options on Securities in Certain Conservative
Investment Strategies........................................ 18
17. Using Financial Futures Contracts, Options on Such Contracts
and Options on Stock Indexes (General Considerations)........ 19
18. Using Financial Futures, Options Thereon, and Stock Index
Options for Certain Hedging - Type Strategies................ 20
19. Using Options and Futures in Potentially More Aggressive
Strategies................................................... 22
20. Limiting the Funds' Exposure to Certain Futures and Option
Transactions................................................. 23
21. Using Other Types of Derivative Instruments.................. 24
22. Investing In Other Investment Companies...................... 25
23. Purchasing "When Issued" Securities and Forward
Commitments.................................................. 26
24. Short-Term Trading........................................... 26
25. Entering Into Repurchase Agreements.......................... 27
26. Participating in Joint Trading Accounts...................... 27
27. Lending of Fund Securities................................... 27
28. Using Reverse Repurchase Agreements and Mortgages
"Dollar Rolls"............................................... 28
29. Investing in Rule 144A and Illiquid Securities............... 28
30. Investing in Convertible Securities and Warrants............. 28
31. Investing in Initial Public Offerings ("IPOs")............... 29
2
TABLE OF CONTENTS--Continued
PAGE IN THIS
STATEMENT OF
ADDITIONAL
INFORMATION
-----------
The Funds' Fundamental Investment Restrictions......................... 29
Board of Trustees and Officers of the Trust............................ 33
Investment Advisory Arrangements....................................... 35
The Trust's Investment Advisory Arrangements With John Hancock 35
The Trust's Arrangements With Subadvisers......................... 37
Dollar Amounts of Advisory Fees, Subadvisory Fees, and
Expense Reimbursements....................................... 42
Arrangements With Other Service Providers.............................. 44
Underwriting and Indemnity Agreement.............................. 44
Custody of the Trust's Assets..................................... 44
Subadministration Agreement With State Street Bank................ 44
Independent Auditors.............................................. 45
Portfolio Transactions and Brokerage Allocation........................ 45
Codes of Ethics........................................................ 49
Features of the Trust's Shares......................................... 49
Shareholder Meetings and Voting Rights................................. 50
Sales and Redemptions of Fund Shares................................... 51
Computing the Funds' Net Asset Value................................... 52
Taxes.................................................................. 53
Information About Fund Performance..................................... 53
Legal Matters.......................................................... 54
Reports to Contractholders............................................. 54
Appendix A - Corporate Bond Ratings.................................... 55
3
WHAT IS THE TRUST?
John Hancock Variable Series Trust I, (the "Trust") is an open-end
management investment company. With the exception of the Managed, Growth &
Income, Large Cap Growth, Large Cap Aggressive Growth, Mid Cap Growth, Real
Estate Equity, Global Balanced and Global Bond Funds, each of the Funds is a
"diversified" Fund within the meaning of the Investment Company Act of 1940
(the "Investment Company Act").
Shares of the Trust are currently sold to John Hancock Variable Life
Accounts U, V, and S to support variable life insurance policies issued by John
Hancock Variable Life Insurance Company ("JHVLICO"); John Hancock Variable
Annuity Accounts U and V to support variable annuity contracts issued by John
Hancock Life Insurance Company ("John Hancock"); John Hancock Variable Annuity
Accounts I and JF to support variable annuity contracts issued by JHVLICO; and
John Hancock Variable Life Insurance Account UV to support variable life
insurance policies issued by John Hancock. It is anticipated that, in the
future, Trust shares may be sold to other separate investment accounts of
JHVLICO and John Hancock and to separate investment accounts of other insurance
companies (which may or may not be affiliated with John Hancock). Each of these
separate investment accounts is hereinafter referred to as a "Separate Account."
Because the Separate Accounts currently own all of the Trust's shares,
those Separate Accounts (or John Hancock and JHVLICO) may be deemed to control
the Trust. John Hancock and JHVLICO, in turn, are both directly or indirectly
controlled by John Hancock Financial Services, Inc., a publicly-traded holding
company. The Trust issues a separate series of shares of beneficial interest
for each Fund. Each share issued with respect to a Fund has a pro rata interest
in the net assets of that Fund. The assets of each Fund are charged with the
liabilities of that Fund and a proportionate share of the general liabilities of
the Trust.
THE TRUST'S BUSINESS HISTORY
The Trust is, in part, a successor to three Separate Accounts of JHVLICO,
as well as the six Separate Accounts of John Hancock described below.
On March 28, 1986, all of the investment assets and related liabilities of the
Variable Life Stock, Bond, and Money Market Accounts were transferred to what
are now the Growth & Income, Active Bond and Money Market Funds of the Trust,
respectively, in exchange for shares of those Funds.
On February 20, 1987, all of the investment assets and related liabilities
of six Variable Annuity Stock, Bond and Money Market Accounts were transferred
to what are now the Growth & Income, Active Bond and Money Market Funds of the
Trust, respectively, in exchange for shares of these Funds. The Trust itself
was incorporated on September 23, 1985, under the laws of the State of Maryland
and was reorganized as a Massachusetts business trust effective April 29, 1988.
Over the years, several Funds have been re-named as follows:
YEAR OF
CURRENT FUND NAME PRIOR NAME(S) CHANGE
----------------- ------------- ------
Active Bond Sovereign Bond 2000
Bond 1996
Global Balanced International Balanced 2000
Global Bond Strategic Bond 1999
Growth & Income Stock 1996
International Equity Index International Equities 1998
International 1995
Global 1994
4
YEAR OF
CURRENT FUND NAME - continued PRIOR NAME(S) - continued CHANGE
----------------------------- ------------------------- ------
Large Cap Growth Select Stock 1995
Short-Term Bond Short-Term U.S. Government 1998
Small/Mid Cap Growth Diversified Mid Cap Growth 1999
Special Opportunities 1998
Small Cap Equity Small Cap Value 2000
Fundamental Growth Fundamental Mid Cap Growth 2000
Large Cap Value CORE II American Leaders Large Cap Value 2001
Large/Mid Cap Value II Mid Cap Value 2001
Small Cap Value Small/Mid Cap Value 2001
Active Bond II Core Bond 2001
THE FUNDS' INVESTMENT ACTIVITIES
AND THEIR RISKS
The different investment activities of the several Funds will affect both
their investment returns and the nature and degree of risks to which they are
exposed. Sections 1. - 29. below describe many (but not all) of these
investment activities and risks.
1. INVESTING IN MONEY MARKET INSTRUMENTS
The Money Market Fund invests exclusively in "money market" instruments;
all the other Funds may invest in these instruments to some extent. These are
high quality, short-term fixed income obligations. Because of their nature,
money market instruments generally do not carry significant risks of loss. The
principal risk is that a Fund's return on money market instruments will be less
than it would have earned on a riskier investment.
2. INVESTING IN OTHER FIXED INCOME OBLIGATIONS
The following Funds invested primarily in non-money market fixed income
(i.e., "debt") securities: the Short-Term Bond, Bond Index, Active Bond, Active
Bond II, Global Bond, and High Yield Bond Funds. The Managed, Aggressive
Balanced and Global Balanced Funds can vary their holdings of these securities
within a broad range. All the other Funds (except the Money Market Fund) may
from time to time invest in non-money market debt to some extent.
Various types of risk associated with these securities are discussed in the
balance of this Section 2.
INTEREST RATE RISK: In general, debt securities with longer maturities
than money market instruments have exposure to interest rate risk. Changes in
generally prevailing market interest rates alter a debt security's market value
and introduce volatility into the rate of return of a Fund that invests in such
securities. When prevailing interest rates go up, the market value of debt
securities tends to go down and vice versa. This sensitivity of the market
value of a debt security to changes in interest rates is generally related to
the "duration" of the instrument. The market value of a shorter-term fixed
income security is generally less sensitive to interest rate moves than that of
a longer-term security. For example, the interest rate risk of the Short-Term
Bond Fund, although moderate, is below that of traditional intermediate or long-
term bond portfolios.
5
CREDIT RISK: The value of a fixed income security may also change as a
result of market perceptions regarding its credit risk: i.e., the ability of
the borrower to repay its debts. The market value of a fixed income security
can fall when the market perceives the borrower to be less credit worthy.
Conversely, the market value of a fixed income security can increase due to its
borrower being perceived as financially stronger. All Funds that invest in non-
money market debt securities may have some exposure to credit risk.
Even some U.S. Government obligations have a degree of credit risk.
"U.S. Government obligations" are bills, certificates of indebtedness, notes and
bonds issued or guaranteed as to principal or interest by the United States or
by agencies or authorities controlled or supervised by and acting as
instrumentalities of the U.S. Government and established under the authority
granted by Congress. Some obligations of U.S. Government agencies, authorities,
and other instrumentalities are supported by the full faith and credit of the
U.S. Treasury; others by the right of the issuer to borrow from the Treasury;
and others only by the credit of the issuing agency, authority, or other
instrumentality. These latter types of obligations, therefore, do have a degree
of credit risk. U.S. Government obligations are used most in the Bond Index,
Active Bond, Active Bond II and Global Bond Funds. All of the other Funds may
also invest in U.S. Government obligations to some extent.
Securities having one of the four highest rating categories for debt
securities as defined by Moody's Investors Services, Inc. (Aaa, Aa, A, or Baa)
or Standard and Poor's Corporation (AAA, AA, A, or BBB) or, if unrated,
determined to be of comparable quality by the subadviser, are referred to as
"investment grade." The meanings of such ratings are set forth in Appendix A to
this Statement of Additional Information. Lower-rated bonds have more credit
risk than higher rated bonds.
RISK OF LOWER-QUALITY INSTRUMENTS: High-yield bonds (or "junk" bonds) are
debt securities rated below "investment grade" as defined above. The value of
these lower rated securities generally is more subject to credit risk than is
the case for higher rated securities, and their values tend to respond more to
changes in market perceptions regarding their credit risk.
Investments in companies issuing high yield securities are considered to be
more speculative than higher quality instruments. As such, these securities
typically pay a higher interest rate than investment grade securities.
Issuers of high yield securities are typically in weak financial health,
and their ability to pay back principal and interest on the bonds they issue is
uncertain. Some of these issuers may be in default or bankruptcy. Compared
with issuers of investment-grade bonds, they are more likely to encounter
financial difficulties and to be materially affected by these difficulties when
they do encounter them.
High yield bond markets may react strongly to adverse news about an issuer
or the economy, or to the perception or expectations of adverse news. These
debt securities may also have less liquid markets than higher rated securities.
Judgment plays a greater role in valuing high yield securities than in the
case of other securities for which more extensive quotations and last-sale
information are available. Adverse publicity and changing investor perceptions
may affect the ability of outside pricing services used by a Fund to value its
portfolio securities, and the ability of the Fund to dispose of its lower-rated
bonds.
The market prices of high yield securities may decline significantly in
periods of general economic difficulty, which may follow periods of rising
interest rates. During an economic downturn or a prolonged period of rising
interest rates, the ability of issuers of lower-rated debt to service their
payment obligations, meet projected goals, or obtain additional financing may be
impaired. In that case, a Fund may find it necessary, at its own expense or in
conjunction with others, to pursue litigation or otherwise exercise its rights
as a security holder to seek to protect the interests of security holders, if it
determines this to be in the interest of Fund investors. The 1980s saw a
dramatic increase in the use of high yield securities to finance highly
leveraged corporate acquisitions and restructurings. Past experience may not
provide an accurate indication of future performance of high yield securities,
especially during periods of economic recession. In fact, from 1989 to 1991,
the percentage of high yield securities that defaulted rose significantly above
prior levels.
6
All Funds (other than the Money Market Fund) that invest in debt securities
may at times have some exposure to high yield securities. The High Yield Bond
Fund invests primarily in these securities. The other Funds most likely to
invest a significant portion of their assets in high yield securities are the
Active Bond and Active Bond II Funds. The Managed, Aggressive Balanced, Short-
Term Bond, Global Bond and Global Balanced Funds may also invest in high yield
securities to some extent. In contrast, the Bond Index Fund will not invest in
debt securities that are not at least investment grade at the time of purchase.
Although not customarily referred to as "high yield" securities or "junk
bonds," debt securities that fall in the lowest rating within the investment
grade category are considered medium grade securities that have some speculative
characteristics. Accordingly, to a lesser degree, they may present the same
risks discussed above with respect to high yield securities.
The considerations discussed above for lower-rated debt securities also are
applicable to lower quality unrated debt instruments of all types, including
loans and other direct indebtedness of businesses with poor credit standing.
Unrated debt instruments are not necessarily of lower quality than rated
securities, but they may not be attractive to as many buyers.
PREPAYMENT/CALL RISK: Prepayment risk is the risk that the obligor on a
debt security may repay or "call" the debt before it is due. Most mortgage
backed securities, asset backed securities, other public bond debt securities
and 144A securities that a Fund might own are exposed to this risk. U.S.
Government securities have minimal exposure to this risk. Prepayment/call is
most likely to occur when interest rates have declined and a borrower can
refinance the debt at a lower interest rate level. Generally, a Fund reinvests
the proceeds resulting from prepayments in a lower yielding instrument. This
results in a decrease in the Fund's current yield. The values of securities
that are subject to prepayment/call risk also tend to increase less in response
to declining interest rates and decrease more in response to increasing interest
rates than would the value of otherwise similar securities that do not have
prepayment or "call" features.
All Funds that invest in debt securities (other than the Money Market Fund)
may at times have some exposure to prepayment/call risk. The Funds most likely
to invest a significant portion of their assets in debt securities with
prepayment/call features are the Short-Term Bond, Bond Index, Active Bond,
Active Bond II, Global Bond and High Yield Bond Funds. The Managed, Aggressive
Balanced, and Global Balanced Funds may also invest in these securities.
RISKS OF "ZERO COUPON" INSTRUMENTS: All of the Funds may, in varying
degrees, invest in debt instruments that provide for payment of interest at the
maturity date of the instrument (or payment of interest in the form of
additional securities), rather than payment of interest in cash periodically
over the life of the instrument. The values of such instruments tend to respond
more to changes in interest rates than do otherwise comparable debt obligations
that provide for periodic interest payments. The Funds most likely to invest a
significant amount of their assets in instruments that are subject to this
volatility risk are the Managed, Aggressive Balanced, Global Balanced, Short-
Term Bond, Bond Index, Active Bond, Active Bond II, Global Bond, and High Yield
Bond Funds. However, all Funds that invest in debt securities may at times have
some exposure to this risk.
3. INVESTING IN EQUITY SECURITIES
All of the Funds intend to invest to some degree in common stock or other
equity securities, except for the Short-Term Bond, Bond Index, Active Bond,
Active Bond II, Global Bond, and Money Market Funds. All of the Funds that
invest in equity securities expect to make such securities their primary
investment (except for the Managed, Aggressive Balanced, High Yield Bond and
Global Balanced Funds, which may nevertheless do so in the discretion of their
subadvisers). Though investing in equity securities, the Managed, Aggressive
Balanced, High Yield Bond, and Global Balanced Funds also expect, under normal
conditions, to invest a substantial amount of their assets in debt obligations.
General risks of investing in equity securities are discussed in the
balance of this Section 3.
7
EQUITY RISK: Investments in common stock or other equity securities
historically have offered a higher rate of return than money market instruments
or longer term debt securities. However, the risks associated with equity
securities also tends to be higher, because the investment performance of equity
securities depends upon factors which are difficult to predict. The fundamental
risk associated with any equity portfolio is the risk that the value of the
investments it holds might decrease in value. Equity security values may
fluctuate in response to the activities of an individual company or in response
to general market, interest rate, and/or economic conditions.
MARKET CAPITALIZATION RISK: Another indication of the relative risk of a
common stock investment is the size of the company, which is typically defined
by reference to its "market capitalization." Market capitalization is computed
by multiplying current market price of a share of the company's stock by the
total number of its shares outstanding.
Investing in larger capitalization companies generally involves a lesser
degree of risk than investing in smaller capitalization companies. Conversely,
investing in the equity securities of smaller companies involves greater risks
and potential rewards than investing in larger, more established companies.
Small capitalization companies, in particular, often have limited product
lines, markets or financial resources, and they may depend upon a small group of
inexperienced managers. Investments in such companies can be both more volatile
and more speculative. These securities may have limited marketability and are
subject to more abrupt or erratic market movements than securities of larger
companies or the market in general.
Three capitalization levels are currently used by the Trust for U.S.
equities: large, medium ("mid"), and small. Each of these capitalization
levels will be defined by reference to the Russell 3000(R) Index. The Russell
3000/(R)/ Index is a broad market index and is representative of the U.S. stock
markets with a total capitalization of $12.8 trillion at the end of 2000./1/
. Large cap: Companies having a capitalization within the range of the
300 largest companies in the Russell 3000/(R)/ Index will be considered
to be large capitalization ("large cap") companies. At the end of 2000,
each of the largest 300 companies in the Russell 3000/(R)/ Index had a
capitalization greater than $ 7.8 billion.
. Mid cap: Companies having a capitalization within the range of the
250 to 1000 largest companies in the Russell 3000/(R)/ Index will be
considered to be "mid cap." At the end of 2000, such mid cap companies
had capitalizations ranging from $1.4 billion to $10 billion.
. Small cap: Companies having a capitalization within the range of the
remaining companies in the Russell 3000/(R)/ Index will be considered to
be small capitalization ("small cap") companies. At the end of 2000, none
of these smallest companies in the Russell 3000/(R)/ Index had a market
capitalization of more than $1.4 billion.
The above parameters for large cap, mid cap and small cap are typically adjusted
at the end of each calendar quarter to reflect changes in the market
capitalization of the Russell 3000/(R)/ Index. However, adjustments may be made
as frequently as monthly in extraordinary circumstances.
The U.S. equity securities of the Managed, Aggressive Balanced, Growth &
Income, Equity Index, Large Cap Value, Large Cap Value CORE, Large Cap Value
CORE II, Large Cap Growth, Large Cap Aggressive Growth, and Global Balanced
Funds are generally expected to represent primarily companies that qualify as
large cap issuers. These Funds also may invest in the equity securities of
companies that qualify as small and mid cap issuers.
--------------------
/1/ The Russell 3000/(R)/ Index is a service mark of Frank Russell Company,
which does not sponsor and is not in any way affiliated with the Trust.
Inclusion of a security in the index in no way implies an opinion as to its
attractiveness or appropriateness as an investment.
8
The U.S. equity securities of the Large/Mid Cap Value, Large/Mid Cap
Value II, Fundamental Growth, International Equity, and International
Opportunities Funds are generally expected to represent primarily large and mid
cap issuers. These Funds also may invest in the equity securities of companies
that qualify as small cap issuers.
The U.S. equity securities of the Mid Cap Growth and Mid Cap Blend Funds
are generally expected to represent primarily companies that qualify as mid cap
issuers. These Funds also may invest in the equity securities of companies that
qualify as small or large cap issuers.
The U.S. equity securities of the Small/Mid Cap Growth and Small/Mid Cap
CORE Funds are generally expected to represent companies that qualify as small
cap and mid cap issuers. These Funds also may invest in the equity securities
of companies that qualify as large cap issuers.
The U.S. equity securities of the Small Cap Equity, Small Cap Value and
Small Cap Growth Funds are generally expected to represent primarily companies
that qualify as small cap issuers. Although these Funds also may invest
significant amounts in the equity securities of companies that qualify as mid
cap issuers, it is expected that they would rarely invest in the equity
securities of companies that qualify only as large cap issuers.
The Real Estate Equity and Health Sciences Funds have broad latitude to
invest in companies of any size, depending on the market capitalization of the
respective sectors covered by those Funds.
Three capitalization levels are currently used by the Trust for non-U.S.
equities: large, medium ("mid"), and small.
. Large cap: Companies having a capitalization greater than $5 billion
. Mid cap: Companies having a capitalization between $1 billion and $5 billion
. Small cap: Companies having a capitalization less than $1 billion
The non-U.S. equity securities of the International Equity Index Fund are
generally expected to represent primarily non-U.S. companies that qualify as
large cap issuers. This Fund also may invest in the equity securities of non-
U.S. companies that qualify as small and mid cap issuers.
The non-U.S. equity securities of the Global Balanced, International Equity
and International Opportunities Funds are generally expected to represent
primarily non-U.S. companies that qualify as large and mid cap issuers. These
Funds also may invest in the equity securities of non-U.S. companies that
qualify as small cap issuers.
The Emerging Markets Equity has broad latitude to invest in companies of
any size.
4. INVESTING IN REAL ESTATE SECURITIES
The Real Estate Equity Fund invests primarily in companies with activities
related to the real estate industry, such as real estate investment trusts
("REITs") that own commercial and multifamily residential real estate, real
estate operating companies ("REOCs") that derive the majority of their revenue,
income or asset value from real estate and other companies engaged in non-real
estate businesses but whose real estate holdings are significant in relation to
the market value of their common stock.
The securities purchased will be principally common stock (and securities
convertible into or with rights to purchase common stock) but a portion of the
Fund may be invested in preferred stock. The Fund may also invest in commercial
mortgage securities (debt obligations secured by commercial property),
collateralized mortgage obligations (mortgage pass through securities secured by
commercial mortgage pools) and master limited partnerships from time to time,
but does not do so on the date of this Statement of Additional Information.
In addition to the Real Estate Equity Fund, all of the other Funds (except
for the Money Market Fund) may have some exposure to real estate risks through
investments in companies engaged in real estate related businesses or
investments in debt instruments secured by real estate.
9
RISKS OF REAL ESTATE SECURITIES: Generally speaking, real estate
securities may be affected by risks similar to those resulting from the direct
ownership of real estate, as well as by market risks due to changes in interest
rates and by the overall volatility of the equity markets. The market value of
shares in equity real estate investment trusts and commercial property
companies, in particular, is heavily dependent upon the value of their
underlying properties. Overbuilding, declines in local or regional economic
conditions, financial difficulties on the part of major tenants and increases in
real estate taxes and operating expenses all could decrease the value of the
real estate investments.
5. INVESTING IN FOREIGN SECURITIES
Investments in foreign securities may be made in a foreign-denominated
security, or in the form of American Depositary Receipts ("ADRs"), European
Depositary Receipts ("EDRs"), Global Depositary Receipts ("GDRs") or other U.S.
dollar denominated securities representing underlying shares of foreign
securities. ADRs, EDRs, GDRs and other securities representing underlying shares
of foreign securities may not necessarily be denominated in the same currency as
the securities into which they may be converted, but rather in the currency of
the market in which they are traded. ADRs are receipts, typically issued by an
American bank or trust company, which evidence ownership of underlying
securities issued by a foreign corporation. EDRs are receipts issued in Europe
by banks or depositories which evidence a similar ownership arrangement. GDRs
are receipts issued in two or more markets by banks or depositaries which
evidence a similar ownership arrangement. Generally, ADRs are designed for use
in U.S. securities markets, EDRs for use in European securities markets, and
GDRs for use in multiple securities markets.
Investments in debt securities issued by foreign issuers may be made
directly in foreign-denominated debt instruments or in the form of U.S. dollar
denominated debt securities issued by foreign issuers and publicly traded in the
United States ("Yankees") or in Europe ("Eurobonds").
The International Equity Index, International Equity, International
Opportunities and Emerging Markets Equity Funds invest primarily in foreign
securities, including foreign-denominated securities. The Global Bond and Global
Balanced Funds invest a significant portion of their assets in foreign
securities, including foreign-denominated securities. To a lesser extent, the
Managed, Aggressive Balanced, High Yield Bond, Large Cap Value, Mid Cap Growth,
Real Estate Equity and Health Sciences Funds may also invest in foreign
securities, including foreign-denominated securities.
The following Funds may invest in ADRs and other U.S. dollar denominated
foreign securities to a limited extent: Growth & Income, Equity Index, Large
Cap Growth, Large Cap Aggressive Growth , , Large Cap Value CORE, Large Cap
Value CORE II, Large/Mid Cap Value, Large/Mid Cap Value II, Mid Cap Blend,
Small/Mid Cap Growth, , Small/Mid Cap CORE, Small Cap Equity Small Cap Value and
Small Cap Growth.
The Short-Term Bond, Bond Index, Active Bond, and Active Bond II Funds may
invest in foreign debt securities denominated in U.S. dollars (i.e., Yankees and
Eurobonds).
The Emerging Markets Equity Fund invests primarily in developing countries
commonly known as "emerging markets." To a lesser extent, the Global Balanced,
International Equity Index, International Equity, International Opportunities,
Growth & Income, Fundamental Growth, Mid Cap Growth, Small Cap Equity, Small Cap
Growth, Managed, Aggressive Balanced, Bond Index, Global Bond, Active Bond,
Active Bond II, and High Yield Bond Funds may also invest in emerging markets.
The securities may be denominated in U.S. dollars or any other currency.
Risks of investing in foreign securities are discussed in the paragraphs
that follow:
CURRENCY RISKS: When a Fund buys foreign-issued securities, it usually
must pay for those securities in the local currency. Therefore, the Fund must
convert funds into the local currency to the extent necessary for this purpose.
Similarly, when a Fund sells a foreign security, it may receive payment in the
local currency. Therefore, if the Fund does not wish to continue to hold that
currency, it must enter into a transaction disposing of it.
10
In these ways, therefore, a Fund may temporarily hold foreign currency in
order to facilitate the purchase and sale of foreign securities. This exposes
the fund to the risk that the foreign currency's value could, while the Fund was
temporarily holding that currency, decline relative to the U.S. dollar. This
could result in a loss to the Fund, because the Fund's assets and shares are
valued in U.S. dollars. On the other hand, the Fund could experience gains if
the foreign currency's value, relative to the U.S. dollar, increases during the
period when the Fund holds that currency.
More fundamentally, however, because the Fund values its assets and shares
in U.S. dollars, the Fund's gains and/or losses on investments that are
denominated or traded in foreign currencies will depend in part on changes in
the value of that currency relative to the U.S. dollar. This exposes the Fund
to the risk of loss if that foreign currency loses value, as well as the
possibility of gains if that currency gains value, relative to the U.S. dollar.
The Funds may (but are not required to) employ certain strategies to limit
their risks or otherwise manage their exposure to foreign currencies. Such
currency management techniques, as well as the risks that those techniques
themselves present, are discussed in Sections 6. - 10. below.
Also, a risk exists that a foreign country may have or implement
restrictions on transactions in its currency that prevent a Fund from
effectively managing or reducing its exposure to that currency, even after the
Fund has disposed of any securities denominated or traded in that currency.
The risks associated with foreign currency conversions are not present in
investments in Yankees and Eurobonds because these debt securities are U. S.
dollar denominated.
POLITICAL AND ECONOMIC RISK: Foreign securities often are subject to
heightened political and economic risks, particularly in emerging markets or
other underdeveloped or developing countries, which may have relatively unstable
governments and economies based on only a few industries. Foreign governments
may take over the assets or operations of a company, may impose additional
taxes, or may place limits on the removal of the Fund's assets from that
country. However, investments in foreign securities also offer the opportunity
to diversify holdings and to invest in economies whose growth may outpace that
of the United States.
REGULATORY RISK: Generally, there is less government supervision of
foreign markets. Foreign issuers generally are not subject to uniform
accounting, auditing, and financial reporting standards and practices applicable
to domestic issuers. There may be less publicly available information about
foreign issuers than domestic issuers. These risks may be greater in emerging
markets or other underdeveloped or developing countries.
MARKET RISK: Foreign securities markets, particularly those of emerging
markets or other underdeveloped or developing countries, may be less liquid and
more volatile than domestic markets. Certain markets may require payment for
securities a Fund purchases before delivery of these securities to the Fund, and
delays may be encountered in settling securities transactions. In some foreign
markets, there may be limited protection against failures by other parties to
complete their transactions with a Fund. There may be limited legal recourse
against an issuer in the event of a default on a debt instrument held by a Fund.
TRANSACTION COSTS: Transaction costs of buying and selling foreign
securities, including brokerage, tax, and custody costs, are generally higher
than those involved in domestic transactions. This is particularly true for
investments in emerging markets, or other underdeveloped or developing
countries.
6. USING FORWARD EXCHANGE CONTRACTS TO MANAGE CURRENCY EXPOSURE
TRANSACTION HEDGING AND PORTFOLIO HEDGING: When a Fund anticipates having
to purchase or sell a foreign currency to facilitate a foreign securities
transaction, it may wish to "lock in" the current exchange rate for that
currency (vis-a-vis the U.S. dollar) and thus avoid (in whole or in part)
exposure to further changes in that rate that could occur prior to when the
purchase or sale proceeds are actually paid. This is called "transaction
hedging."
A Fund can do transaction hedging by purchasing or selling foreign
currencies in the "spot" (i.e., cash) market. Alternatively, the following
Funds may use "forward" currency foreign exchange purchase or sale contracts for
11
transaction hedging: the Managed, Aggressive Balanced, Large Cap Value, Mid Cap
Growth, Real Estate Equity, Health Sciences, Global Balanced, International
Equity Index, International Equity, International Opportunities, Emerging
Markets Equity, Global Bond, and High Yield Bond Funds. In a forward exchange
contract, the Fund purchases or sells a specific amount of foreign currency, at
a price set and time set in the contract, which may be any fixed number of days
in the future.
These same Funds may also use forward foreign exchange contracts to reduce
their exposure to changes (relative to the U.S. dollar) in the value of a
foreign currency during a period of time when the Fund owns securities that are
denominated, exposed to or traded in that currency. This is called "portfolio
hedging." Except as described in the paragraph immediately below for certain
funds, the Funds may not engage in portfolio hedging with respect to the
currency of a particular country to an extent greater than the aggregate market
value (at the time of establishing the hedge) of securities held by that Fund
which are denominated, exposed to or traded in that particular foreign currency.
The Funds may or may not attempt to hedge some or all of their foreign portfolio
positions. Rather, they will enter into such transactions only to the extent,
if any, deemed appropriate by their subadvisers. Furthermore, no Fund will use
forward foreign currency exchange contracts for the purpose of leveraging the
Fund's currency exposure.
For purposes of transaction hedging or portfolio hedging, the Managed,
Aggressive Balanced, Mid Cap Growth, Real Estate Equity, Health Sciences, Global
Balanced, Global Bond, International Equity Index, International Equity,
Emerging Markets Equity, and International Opportunities Funds may use forward
exchange contracts on a "proxy" currency, instead of the currency being hedged.
A proxy currency is one that the subadviser believes will bear a close
relationship to the currency being hedged and believes will approximately equal
the performance of such currency relative to the U.S. dollar. Nevertheless,
changes in the value of the currency being hedged may not correspond to changes
in the value of the proxy currency as expected, which could result in the
currency hedge being more favorable or less favorable to the Fund than the
subadviser had expected.
OTHER TECHNIQUES FOR MANAGING CURRENCY EXPOSURE: The Managed, Aggressive
Balanced, Mid Cap Growth, Real Estate Equity, Health Sciences, Global Balanced,
International Equity Index, International Equity, International Opportunities,
Emerging Markets Equity, and Global Bond Funds may use additional techniques
when their subadvisers believe that the currency of a particular country may
suffer a significant decline against the U.S. dollar or against another
currency. In that case, these Funds may enter into a forward currency contract
to sell, for a fixed amount of U.S. dollars or other appropriate currency, the
amount of foreign currency approximating the value of some or all of the Fund's
securities denominated in, traded in, or exposed to such foreign currency. The
currency contract may call for the Fund to receive a currency other than U.S.
dollars, for example, if such other currency is believed to be undervalued or
necessary to bring the Fund's overall exposure to various currencies into a more
desirable balance. For similar purposes, the Managed, Aggressive Balanced,
Global Balanced, Emerging Markets Equity, International Opportunities,
International Equity, Mid Cap Growth, Real Estate Equity, Health Sciences, and
Global Bond Funds may also enter into contracts to purchase, for a fixed amount
of U.S. dollars, or other appropriate currency, an amount of foreign currency
corresponding to the value of some of the Fund's securities.
ASSET SEGREGATION REQUIREMENTS FOR FORWARD EXCHANGE CONTRACTS: A Fund may
"cover" its obligations under outstanding forward currency sale contracts by
maintaining portfolio securities denominated, exposed to or traded in the
currency of such contracts or of an appropriate proxy currency. To the extent a
Fund does not thus cover all of its forward currency sales positions with its
portfolio securities, or if it has outstanding any forward currency purchase
contracts, the Funds' custodian will segregate cash or liquid assets in a
separate account of the Fund in an amount at all times at least equal to the
value of the Fund's net obligation with respect to forward contracts in a
particular currency. If the value of the portfolio securities used to cover a
position or the value of the assets in the segregated account declines, the Fund
will find additional "cover" or additional cash or liquid assets will be placed
in the account so that the value of the account will at least equal the required
amount described in the preceding sentence.
7. USING OPTIONS ON CURRENCIES TO MANAGE CURRENCY EXPOSURE
The Managed, Aggressive Balanced, Mid Cap Growth, Global Balanced,
International Equity Index, International Equity, International Opportunities,
Emerging Markets Equity, Global Bond, and High Yield Bond Funds may also
12
purchase and write put and call options on foreign currencies for the same
purposes as those Funds could use forward foreign exchange contracts (as
discussed in Section 6. above). This could include options traded on U.S. and
foreign exchanges, as well as those traded in "over-the-counter" markets.
The characteristics and risks of these currency option transactions are
similar to those discussed in Sections 15. - 16. below with respect to put and
call options on securities.
Call options on foreign currencies written by a Fund will be "covered,"
which means that the Fund will own at all times at least an equal amount of, or
an offsetting position in, the underlying foreign currency.
ASSET SEGREGATION REQUIREMENT FOR CURRENCY PUT OPTIONS WRITTEN BY A FUND:
With respect to put options on foreign currencies written by a Fund, the Fund
will establish a segregated account with its custodian bank consisting of cash
or liquid securities in an amount equal at all times to the amount the Fund
would be required to deliver upon exercise of the put.
8. USING CURRENCY FUTURES CONTRACTS AND OPTIONS THEREON TO MANAGE CURRENCY
EXPOSURE.
Any Fund may use currency futures contracts and options thereon for the
same purposes and to the same extent as that Fund could use forward foreign
exchange contracts (as discussed in Section 6. above). The characteristics and
risks of such futures and options transactions are similar to those discussed in
Sections 16. - 19. below for other transactions in futures contracts and options
thereon. All transactions in currency futures and options thereon also would be
subject to the applicable limitations in Section 20. below.
9. USING CERTAIN OTHER DERIVATIVE INSTRUMENTS TO MANAGE CURRENCY EXPOSURE
As discussed in Section 21. below, several of the Funds may use currency
"swaps," "caps," "floors," and "collars" for the same purposes as those Funds
could use forward foreign exchange contracts (as discussed in Section 6. above).
The characteristics and risks of such "derivative" transactions, as discussed in
Section 21., are generally also applicable when such instruments are used for
currency management purposes.
10. USING FOREIGN CURRENCY EXPOSURE MANAGEMENT STRATEGIES (GENERAL
CONSIDERATIONS AND RISKS)
The foreign currency management techniques discussed in Sections 6. - 9.
above do not eliminate fluctuations in the prices of portfolio securities or
prevent losses if the prices of such securities decline. The Funds are not
obligated to try to hedge against any change in the value of any currency. Even
if a Fund wished to do so, there is no assurance that market conditions would be
such as to make such hedging possible.
Moreover, even where a Fund establishes positions designed to manage its
foreign currency exposure, there is no assurance that this will be beneficial to
the Fund. Such positions may cause a Fund to forego gains that it otherwise
could have achieved or incur costs and losses that it would not otherwise have
incurred. (In general the cost to the Funds of engaging in foreign currency
management transactions varies with such factors as the currency involved, the
type and duration of the instrument being used for this purpose, and the market
conditions then prevailing.) It is entirely possible, therefore, that any
effort to manage a Fund's currency exposure could have a negative effect on the
Fund's investment performance.
In general, the more foreign securities a given Fund invests in, the
greater its currency management activities are likely to be. Also, the Managed,
Aggressive Balanced, Mid Cap Growth, Real Estate Equity, Health Sciences, Global
Balanced, International Equity Index, International Equity, International
Opportunities, Emerging Markets Equity, and Global Bond Funds may use certain of
these same types of instruments in currency management strategies that expose
those Funds to currencies other than the U.S. dollar. Although this would not
be done for the purpose of "leveraging" the Fund's overall exposure to
fluctuations in currency values, such strategies could expose those Funds to
greater risks of loss and greater volatility than they otherwise would
experience.
13
11. REALLOCATING A FUND'S ASSETS AMONG ASSET CLASSES
The continual reallocation of assets among the major asset classes (e.g.,
stocks, bonds, and cash) involves the risk that the subadviser may reduce the
Fund's holdings in an asset class whose value increases unexpectedly, or may
increase the Fund's holdings in an asset class just prior to that asset class
experiencing a loss of value. The Managed, Aggressive Balanced, and Global
Balanced Funds tend to exercise broad discretion in reallocating assets across
asset classes. The Global Bond Fund intends to exercise discretion to
reallocate assets across domestic and international asset classes.
All of the other Funds, with the exception of the Money Market Fund,
generally allow the subadviser some latitude to allocate across asset classes.
Nevertheless, this latitude is expected to be exercised to a lesser degree than
in the case of the Managed, Aggressive Balanced, Global Balanced, and Global
Bond Funds.
12. ADOPTING A TEMPORARY DEFENSIVE STRATEGY
All of the Funds, except the Money Market Fund, may (but are not required
to) adopt a defensive investment posture if the subadviser believes the
investment environment for the Fund is negative. Such a defensive posture would
involve reallocating some or all of a Fund's assets in a manner different from
that contemplated by its primary investment objective and strategies.
Most of the Funds are not limited as to the types of investments they could
use temporarily for defensive purposes. Thus, for example, a small cap equity
Fund might temporarily invest in stocks of larger cap companies or in high
quality, short term debt securities. A bond Fund might shorten maturities or
tighten its investment quality parameters. An international Fund might, for
example, limit the countries it would invest in or temporarily invest only in
high quality, short-term debt securities in the United States.
There can be no assurance that the transaction costs and lost investment
opportunities will not outweigh any benefits to a Fund that attempts to adopt a
defensive strategy.
13. INVESTING WITH AN INDEX-BASED OBJECTIVE
The Equity Index, International Equity Index, and Bond Index Funds expect
to invest substantially all of their assets in equity or debt securities within
their investment objectives and policies at all times. Accordingly, these Funds
may carry more risk in times of declining markets than Funds that are more
likely to adopt a defensive investment posture in such circumstances by
reallocating their assets in a manner different from that contemplated by their
primary investment objective and strategies.
Investments in the Equity Index, International Equity Index, and Bond Index
Funds each involve the risk that the Fund will be unable to match the
performance of its corresponding target index. Each Fund's ability to do so is
affected by (a) the size and timing of cash flows into and out of that Fund, (b)
the level of the Fund's expenses, including commissions and "spreads," on its
portfolio transactions, other portfolio management expenses, and other operating
expenses, and (c) the degree of success of the techniques employed by the Fund's
subadviser. Further, if the size of a Fund limits the number of issues that the
Fund can purchase, or that size is relatively small in relation to cash flows,
there is a greater possibility that the Fund may be unable to match the
performance of the corresponding target index.
THE S&P 500 INDEX: The S&P 500 is an index that is constructed by the
Standard & Poor's Corporation ("Standard & Poor's" or "S&P"), which chooses
stocks on the basis of market values and industry diversification. Most of the
largest 500 companies listed on U.S. stock exchanges are included in the index.
Additional stocks that are not among the 500 largest stocks, by market value,
may be included in the S&P 500 for diversification purposes. The index is
capitalization weighted -- that is, stocks with a larger capitalization (shares
outstanding times current price) have a greater weight in the index. Selection
of a stock for inclusion in the S&P 500 Index in no way implies an opinion by
S&P as to its attractiveness as an investment.
14
The Trust and the insurance products supported by the Trust are not
sponsored, endorsed, sold or promoted by Standard & Poor's. Standard & Poor's
makes no representation or warranty, express or implied, to the owners of the
insurance products supported by the Trust or to any member of the public
regarding the advisability of investing in the Trust or such insurance products.
Standard & Poor's only relationship to the Trust is the licensing of Standard &
Poor's "marks" and the S&P 500 Index, which is determined, composed and
calculated by Standard & Poor's without regard to the Fund or the Trust.
"Standard & Poor's," "S&P ," "S&P 500," "Standard & Poor's 500," and "500" are
trademarks of McGraw-Hill, Inc. and have been licensed for use by the Trust. In
determining, composing, or calculating the S&P 500 Index, S&P has no obligation
to take into consideration the needs of the Trust or those of the owners of the
insurance products supported by the Trust. S&P is not responsible for and has
not participated in the determination of the prices and amount of the insurance
products supported by the Trust or the timing of the issuance or sale of such
products or in the determination or calculation of the equations by which such
products are to be converted into cash. S&P has no obligation or liability in
connection with the administration, marketing, or trading of such products.
S&P DOES NOT GUARANTEE THE ACCURACY AND/OR THE COMPLETENESS OF THE S&P 500
INDEX OR ANY DATA INCLUDED THEREIN AND S&P SHALL HAVE NO LIABILITY FOR ANY
ERRORS, OMISSIONS, OR INTERRUPTIONS THEREIN. S&P MAKES NO WARRANTY, EXPRESS OR
IMPLIED, AS TO RESULTS TO BE OBTAINED BY THE TRUST, OWNERS OF THE PRODUCTS
SUPPORTED BY THE TRUST, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE S&P
500 INDEX OR ANY DATA INCLUDED THEREIN. S&P MAKES NO EXPRESS OR IMPLIED
WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES OF MERCHANTABILITY OR FITNESS
FOR A PARTICULAR PURPOSE OR USE WITH RESPECT TO THE S&P 500 INDEX OR ANY DATA
INCLUDED THEREIN. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL S&P
HAVE ANY LIABILITY FOR ANY SPECIAL, PUNITIVE, INDIRECT, OR CONSEQUENTIAL DAMAGES
(INCLUDING LOST PROFITS), EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES.
THE LEHMAN BROTHERS GOVERNMENT/CREDIT AND AGGREGATE BOND INDEXES: The Lehman
Brothers Government/Credit Index (the "Government/Credit Index") is intended to
measure the performance of the domestic, fixed-rate investment grade debt
market. The Government/Credit Index is composed of (1) all public obligations
of the U.S. Government, its agencies and instrumentalities (excluding "flower"
bonds and pass-through issues, such as GNMA certificates) and (2) all publicly
issued, fixed-rate, non-convertible, investment grade, U.S. dollar-denominated,
SEC-registered obligations of domestic corporations, foreign governments and
supranational organizations. Securities in the index generally have at least
$150 million par amount outstanding and at least 1 year remaining to maturity.
The Lehman Brothers Aggregate Bond Index (the "Aggregate Bond Index")
covers the U.S. investment grade fixed-rate bond market, including government
and corporate securities, agency mortgage pass-through securities, and asset-
backed securities. The Aggregate Bond Index covers those securities in the
Government/Credit Index, plus those covered by the Lehman Mortgage-Backed
Securities Index ("MBS Index"), the Lehman Commercial Mortgage-Backed Securities
(ERISA Eligible) Index ("CMBS (ERISA Eligible) Index"), and the Lehman Asset-
Backed Securities Index ("ABS Index"). The MBS Index covers fixed-rate
securities backed by mortgage pools of the Government National Mortgage
Association, the Federal Home Loan Mortgage Association, and the Federal
National Mortgage Association. The CMBS (ERISA Eligible) Index covers ERISA-
Eligible CMBS securities. The ABS Index covers several subsectors -- including
credit and charge cards, auto, utilities and home equity loans -- and includes
pass-through, "bullet," and controlled amortization structures.
All non-government issues in the Government/Credit Index and the Aggregate
Bond Index are rated at least Baa by Moody's Investors Service, Inc. ("Moody's")
or, if unrated by Moody's, BBB by Standard & Poor's Ratings Group ("Standard &
Poor's").
All securities in the Government/Credit Index and the Aggregate Bond Index
issued by non-U.S. entities are denominated in U.S. dollars.
15
Lehman Brothers, Inc. is neither a sponsor of nor in any other way
affiliated with the Trust or the insurance products supported by the Trust.
Inclusion of a security in the Government/Credit or Aggregate Bond Indexes in no
way implies an opinion of Lehman Brothers, Inc. as to its attractiveness or
appropriateness as an investment.
THE MSCI EAFE GDP INDEX AND MSCI EMERGING MARKETS FREE ("EMF") INDEX: The
MSCI EAFE GDP Index weights countries such that a country with a larger GDP will
have a greater weight in the index. Stocks within those countries are
capitalization weighted; that is, stocks with a larger capitalization have a
greater weight in the index. The MSCI EMF Index is a market capitalization
weighted index composed primarily of companies representative of the market
structure of Emerging Market countries in Europe, Latin America, and the Pacific
Basin. The MSCI EMF Index excludes closed markets and those shares in otherwise
free markets that are not purchasable by foreigners.
The Trust and the insurance products supported by the Trust are not
sponsored, endorsed, sold or promoted by Morgan Stanley Capital International
("MSCI"). MSCI makes no representation or warranty, express or implied, to the
owners of the Trust, or any member of the public regarding the advisability of
investing in funds generally or in the Trust or any Fund particularly, or the
ability of the MSCI EAFE GDP or MSCI EMF Indexes to track general stock market
performance. MSCI is the licensor of certain trademarks, service marks and
trade names of MSCI and of the MSCI EAFE GDP Index, which is determined,
composed and calculated by MSCI without regard to the Trust. "Morgan Stanley
Capital International" is a service mark of Morgan Stanley & Co., Incorporated,
that has been licensed for use by the Trust.
MSCI has no obligation to take the needs of the Trust or the owners of
insurance products supported by the Trust into consideration in determining,
composing or calculating the MSCI EAFE GDP or MSCI EMF Indexes. MSCI is not
responsible for and has not participated in the determination of the prices or
amounts of insurance products supported by the Trust or the timing of the
issuance and sale of such products, or in the determination or calculation of
the equations by which such products are convertible into cash. MSCI has no
obligation or liability to owners of the Trust or of the insurance products
supported by the Trust in connection with the administration, marketing or
trading of any Fund of the Trust.
ALTHOUGH MSCI OBTAINS INFORMATION FOR INCLUSION IN OR FOR USE IN THE
CALCULATION OF THE INDEX FROM SOURCES WHICH MSCI CONSIDERS RELIABLE, NEITHER
MSCI NOR ANY OTHER PARTY GUARANTEES THE ACCURACY AND/OR THE COMPLETENESS OF THE
INDEX OR ANY DATA INCLUDED THEREIN. NEITHER MSCI NOR ANY OTHER PARTY MAKES ANY
WARRANTY, EXPRESS OR IMPLIED, AS TO RESULTS TO BE OBTAINED BY OWNERS OF THE
TRUST, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE INDEX OR ANY DATA
INCLUDED THEREIN. NEITHER MSCI NOR ANY OTHER PARTY MAKES ANY EXPRESS OR IMPLIED
WARRANTIES, AND MSCI HEREBY EXPRESSLY DISCLAIMS ALL WARRANTIES OF
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE WITH RESPECT TO THE INDEX OR
ANY DATA INCLUDED THEREIN. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT
SHALL MSCI OR ANY OTHER PARTY HAVE ANY LIABILITY FOR ANY DIRECT, INDIRECT,
SPECIAL, PUNITIVE, CONSEQUENTIAL OR ANY OTHER DAMAGES (INCLUDING LOST PROFITS)
EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES.
14. INVESTING ON A NON-DIVERSIFIED BASIS
The Managed, Growth & Income, Large Cap Growth, Large Cap Aggressive
Growth, Mid Cap Growth, Real Estate Equity, Health Sciences, Global Balanced and
Global Bond Funds are "non-diversified Funds." Non-diversified Funds are less
restricted in the extent to which they may invest more than 5% of their assets
in any issuer or purchase more than 10% of the voting securities of any issuer.
Because a relatively high percentage of a non-diversified Fund's assets may be
invested in the obligations of a single issuer or a limited number of issuers,
the value of that Fund's shares may be more volatile and more susceptible to any
single economic, political, or regulatory event, or to credit and market risks
associated with a single issuer, than would the shares of a diversified Fund.
16
15. USING OPTIONS (GENERALLY)
Most of the Funds may, in varying degrees, use options on the following
(which, for simplicity, may be referred to as the "subject" of an option):
currencies, securities, equity indexes, interest rate indexes, and financial
futures contracts. This Section 15. discusses certain characteristics and risks
that are generally common to all of these types of options. The Funds' use of
specific types is discussed in Sections 7. - 8. above and 16. - 20. below,
including characteristics and risks peculiar to those types of options or the
Funds' use of them.
PURCHASING "CALL" OPTIONS: If a Fund (or anyone else) "purchases" a "call"
option, it pays a purchase price (often called a "premium") plus, in most cases,
a commission to the broker through whom the purchase was made. In return the
Fund (or other purchaser) has the right (but not the obligation), at or before a
specified future time (called the "expiration date"), to acquire a specified
amount of the option's subject (or the economic equivalent thereof) at a
specified price (called the "strike price" or "exercise price"). If the
purchaser of an option decides to exercise this right, we say the option has
been "exercised." If an option is never exercised before its expiration date,
it expires unexercised.
A Fund (or other purchasers of a call option) may profit in one of two
ways. First, the Fund may be able to exercise the call option at a date when
the value of the option's subject exceeds the purchase price of the option
(including any brokerage commission) plus the exercise price. Whether the Fund
will be able to do this depends on how favorable those prices were and how the
value of the option's subject has changed since the option was purchased.
Secondly, a Fund may profit from purchasing an option if the Fund is able
to sell the option (unexercised) at a profit sometime before its expiration
date. (As a practical matter, such a sale would generally be accomplished by
having the Fund sell (i.e., "write") an option identical to the option it owns,
thereby "netting out" the Fund's exposure to the position.) Whether such a
profit will be possible, of course depends on whether the then market price for
the option (less any commission payable on the sale) exceeds the option's
purchase price (including any related commission). In this regard, one of the
general risks of purchasing options is that, for a variety of reasons, the
market price of an option usually does not vary in the same way or to the same
extent as the value of the option's subject varies. Therefore, a Fund can lose
money purchasing a call option, even if the value of the option's subject
increases.
The basic risk in purchasing an option is that, if the Fund never exercises
or sells the option at a profit, the Fund will lose the entire purchase price of
the option (plus any related commissions). That is the maximum amount the Fund
could lose, however.
SELLING OR "WRITING" CALL OPTIONS: Selling an option is commonly referred
to as "writing" an option. If the Fund (or anyone else) sells ("writes") a call
option, it receives the premium (less any commission) paid by the option's
purchaser and has the obligation to sell the option's subject to the purchaser
at the exercise price if the purchaser exercises the option before it expires.
The Fund can make a profit writing a call option if the purchaser fails to
exercise the option (which usually would happen only if the value of the
option's subject were below the exercise price). In this case, the option's
purchase price (net of any commissions) would be a profit to the Fund.
Alternatively, a Fund could profit from writing a call option if it is able
to subsequently purchase an identical option that would close out the Fund's
position at a profit. This could be done only if the market price of the option
then exceeded the Fund's initial purchase price by an amount greater than any
commissions payable by the Fund on the purchase or sale transactions. There is
a risk, however, that a Fund may be unable to do this, even if the value of the
call option's subject has declined. This is because, as noted above, the value
of an option does not vary in identical fashion to the value of the option's
subject.
The risk of writing a call option is that, if the value of the option's
subject exceeds the option's exercise price, the option is almost sure to be
exercised. In that case, the Fund will suffer a loss to the extent that the
premium it received for writing the option (net of any commissions), plus the
exercise price it receives are less than the value of
17
the option's subject at the time of exercise. Therefore, the higher the value of
the option's subject rises, the greater the Fund's potential loss on an option
it has written. A Fund could cut off its further exposure in such a case by
purchasing an identical call option that would close out its position. The Fund
would, however, probably realize a loss on the transaction, because the purchase
price it would have to pay for that call option would probably have increased to
reflect the increasing value of the option's subject.
WRITING OPTIONS ON A "COVERED" BASIS. One way for a Fund to limit its risk
exposure on call options it has written is to "cover." A call option may be
considered "covered" if, as long as the option is outstanding, the writer
(seller) of the option owns assets that are identical to, or have the same or
similar investment characteristics to, the option's subject. In such a case, if
the value of the option's subject increases, the losses that the Fund will incur
on the call option it has written will tend to be offset by gains that Fund
earns on the assets it is holding to "cover" the option.
Naturally, the more similar the assets held by the fund are to the option's
subject, the more assurance the Fund will have that its losses on call options
it has written will be "covered." How similar those assets must be varies
depending on the Fund and the type of covered option involved. More details in
this regard can be found in Sections 16. - 19. below.
PURCHASING AND SELLING (WRITING) "PUT" OPTIONS: A "put" option is the same
as a call option, except that a Fund (or any other person) that purchases a put
option, by paying the purchase price ("premium") has the right to sell (rather
than buy) the option's subject for a stated exercise ("strike") price.
Conversely, the seller (writer) of a put option receives the premium (net of any
commissions) but has the obligation to purchase the option's subject at its
exercise price if the option is exercised.
Thus, if a Fund purchases a put option, its maximum potential loss would
equal the purchase price (plus any commissions thereon). On the other hand, if
a Fund sells (writes) a put option, the Fund could continue to experience
continuing losses while the option is outstanding, to the extent that the value
of the subject of the option continues to decline. If the subject lost its
value entirely, the Fund's maximum loss would equal the exercise price less the
premium (net of any commissions) that the Fund received initially for writing
the option. Because of this risk exposure, a Fund that writes a put option may
seek to "cover" that option with other assets that it owns. More details about
this can be found in Section 16. - 19. below.
ACCOUNTING FOR OPTIONS: The value of any option that the Fund has
purchased, and the amount of the Fund's obligation under any outstanding option
it has written, will vary as market prices change. These variations are
reflected daily in the Fund's calculation of its net asset value, so that such
value always reflects the estimated impact of current market conditions on all
of the Fund's option positions.
16. USING OPTIONS ON SECURITIES IN CERTAIN CONSERVATIVE INVESTMENT STRATEGIES
Except as otherwise noted below, the general discussion of options in
Section 15. above applies to this Section 16.
Each of the Funds may write covered call options that are traded on
national securities exchanges, except for the Money Market Fund. By "covered"
we mean that the Fund will actually own the securities that are the subject of
the option.
The same Funds may purchase "protective" put options that are traded on
national securities exchanges. By "protective", we mean that the Fund will
actually own the securities that are the subject of the option. If the market
value of such underlying securities remains above the option's exercise price,
the Fund will, in effect, lose the premium it has paid for the option. The
Fund, however, avoids the risk of loss on the underlying securities, to the
extent that the market value of the underlying securities falls below the
exercise price of the put option.
LIQUIDITY RISK: The Funds intend to write and purchase options only if the
subadviser believes that adequate liquidity exists. If for any reason a Fund
cannot, however, close out its open option position when deemed advisable, the
Fund's investment performance could be adversely affected.
18
17. USING FINANCIAL FUTURES CONTRACTS, OPTIONS ON SUCH CONTRACTS AND OPTIONS ON
STOCK INDEXES (GENERAL CONSIDERATIONS)
Most of the Funds may, in varying degrees use financial futures contracts,
options on such futures and options on stock indexes. This Section 17 discusses
certain characteristics and risks that generally pertain to these instruments,
regardless of the specific use to which they are put. The Funds' specific uses
are discussed in Sections 7. - 8. above and 18. - 20. below, including specific
risks related to those risks.
FINANCIAL FUTURES CONTRACTS: Financial futures contracts consist of
interest rate futures contracts, stock index futures contracts, and currency
futures contracts.
An interest rate futures contract is a contract to buy or sell specified
debt securities at a future time for a fixed price. A public market currently
exists for interest rate futures contracts on United States Treasury Bills,
United States Treasury Notes, bank certificates of deposit, and various other
domestic or foreign instruments and indexes.
Stock index futures contracts bind purchaser and seller to delivery at a
future date specified in the contract of a cash amount equal to a multiple of
the difference between the value of a specified stock index on that date and
settlement price specified by the contract. That is, the seller of the futures
contract must pay and the purchaser would receive a multiple of any excess of
the value of the index over the settlement price, and the purchaser must pay and
the seller would receive a multiple of any excess of the settlement price over
the value of the index. A public market currently exists for stock index
futures contracts based on the Standard & Poor's 500 Stock Index, the Standard &
Poor's Midcap Index, the New York Stock Exchange Composite Index, the Value Line
Stock Index, and various other domestic or foreign indexes.
A currency futures contract is a contract to buy or sell a specified amount
of another currency at a future time for a fixed price.
OPTIONS ON FINANCIAL FUTURES CONTRACTS: The writer of an option on a
financial futures contract agrees to assume a position in such financial futures
contract having a specified price, if the purchaser exercises the option and
thereby assumes the opposite position in the financial futures contract. If the
option purchaser would assume the sale side of the futures contract upon
exercise of the option, the option is commonly called a "put" option. If the
option writer would assume the sale side, it is commonly called a "call" option.
As with other types of options, the party that writes the option receives a
premium for doing so, and the party that purchases an option pays a premium
therefor. However, there is no exercise (or strike) price, as such. Rather, if
the value of the futures contract moves against the writer of the option, so
that the option is (or is likely to be) exercised, the option writer, in effect,
has the obligation to pay those losses.
More specifically, an option written by a Fund on a financial futures
contract requires the Fund to pay any amount by which the fluctuating price of
the underlying debt instrument or index exceeds (in the case of a call option)
or is less than (in the case of a put option) the price specified in the futures
contract to which the option relates. Therefore, if the price of the debt
instrument or stock index on which the futures contract is based increases (in
the case of a call option written by a Fund) or decreases (in the case of a put
option written by a Fund), the Fund may incur losses that exceed the amount of
the premium received by the Fund for writing the option.
STOCK INDEX OPTIONS: After payment of a specified premium at the time a
stock index option is entered into, the purchaser of a stock index call option
obtains the right to receive a sum of money upon exercise of the option equal to
a multiple of the excess of a specified stock index on the exercise date over
the exercise or "strike" price specified by the option. The purchaser of a put
option obtains the right to receive a sum of money upon exercise of the option
equal to a multiple of any excess of the strike price over the stock index. The
writer of a call or put stock index option receives a premium, but has the
obligation, upon exercise of the option, to pay a multiple of the difference
between the index and the strike price. Thus, if the price of the stock index
on which an index option is based increases (in the case of a call option
written by a Fund) or decreases (in the case of a put option written by a Fund),
the Fund may incur losses that exceed the premium it received for writing the
option.
19
Stock indexes for which options are currently traded include the Standard &
Poor's 100 and Standard & Poor's 500 Indexes.
MARGIN REQUIREMENTS FOR FUTURES AND OPTIONS: When futures contracts are
traded, both buyer and seller are required to post an initial margin of cash or
U.S. Treasury Bills equaling as much as 5 to 10 percent or more of the contract
settlement price. The nature of the margin requirements in futures transactions
differs from traditional margin payments made in securities transactions in that
margins for futures contracts do not involve the borrowing of funds by the
customer to finance the transaction. Instead, a customer's margin on a futures
contract represents a good faith deposit securing the customer's contractual
obligations under the futures contract. If the market moves against the Trust,
so that a Fund has a net loss on its outstanding futures contracts for a given
day, the Fund generally will be required to post additional margin to that
extent. The margin deposit is returned, assuming the Trust's obligations have
been met, when the futures contract is terminated.
Similar margin requirements will apply in connection with any transactions
in which a Fund writes any options. This includes options on indexes and
futures contracts, as well as other types of options.
CERTAIN RISKS: Financial futures, options thereon, and stock index
options, if used by a Fund, will in most cases be based on securities or stock
indexes the components of which are not identical to the portfolio securities
owned or intended to be acquired by the Fund and in connection with which such
instruments are used. Furthermore, due to supply and demand imbalances and
other market factors, the price movements of financial futures, options thereon,
and stock index options do not necessarily correspond exactly to the price
movements of the securities, currencies, or stock index on which such
instruments are based. These factors increase the difficulty of implementing a
successful strategy using futures and options contracts.
The Funds generally will not take delivery of debt instruments pursuant to
purchasing an interest rate futures contract, nor make a delivery of debt
instruments pursuant to selling an interest rate futures contract. Nor will the
Funds necessarily take delivery of or deliver currencies in connection with
currency futures contracts. Instead, a Fund will more typically close out such
futures positions by entering into closing futures contract transactions.
Similarly, a Fund may wish to close out an option on a futures contract or an
option on an index by entering into an offsetting position in those instruments.
Generally speaking, entering into closing transactions such as described
immediately above would not affect gains and losses of the Fund resulting from
market action prior to such closing transactions. Moreover, there is a risk
that, at the time a Fund wishes to enter into such a closing transaction,
trading in futures or options could be interrupted, for example, because of
supply and demand imbalances arising from a lack of either buyers or sellers.
The futures and options exchanges also may suspend trading after the price has
risen or fallen more than the maximum amount specified by the exchange.
Exercise of options could also be restricted or delayed because of regulatory
restrictions or other factors. Although the subadvisers will seek to avoid
situations where these factors would be likely to cause a problem for the Trust,
in some cases they could adversely affect particular Fund transactions in these
instruments.
ASSET SEGREGATION REQUIREMENT FOR CERTAIN FUTURES AND OPTIONS POSITIONS: A
Fund will maintain at all times in a segregated account with its custodian cash
or liquid securities at least equal to the sum of the purchase prices of all of
the Fund's open futures purchase positions, plus the current value of the
securities underlying all of the Fund's open futures sales positions that are
maintained for purposes other than bona fide hedging, plus the exercise price of
all outstanding put options on futures contracts written by the Fund, minus the
amount of margin deposits with respect thereto as marked to market each day.
18. USING FINANCIAL FUTURES, OPTIONS THEREON, AND STOCK INDEX OPTIONS FOR
CERTAIN HEDGING-TYPE STRATEGIES
This Section 18. should be read against the background of the generally
applicable information about options, futures and related risks that appears in
Sections 15. and 17. above.
20
This Section 18. covers all Funds, except the Money Market Fund.
Specifically, except for the Money Market Fund, all Funds may use exchange-
traded financial futures contracts and options thereon, and, except for the
Active Bond Fund, they also may purchase exchange-traded put or call options on
stock indexes, for the purposes discussed below.
It should be emphasized that none of the Funds is required to use any of
these strategies, and doing so is not a principal investment strategy of any of
the Portfolios. Therefore, it should not be assumed that any particular Fund
will ever necessarily use any of these strategies to a significant extent.
HEDGING WITH FINANCIAL FUTURES CONTRACTS AGAINST MARKET CHANGES: All Funds
covered by this Section 18. (except the Equity Index Fund) may use certain
financial futures contracts as a hedge to protect against possible changes in
interest rates and security prices.
Thus, for example, to hedge against the possibility that interest rates or
other factors may result in a general decline in prices of equity securities of
a type owned by them, these Funds (other than the Equity Index Fund) may sell
stock index futures contracts. Similarly, to hedge against the possibility that
increases in interest rates may adversely affect the market values of debt
securities held by them, these Funds (other than the Equity Index, Large Cap
Value CORE, and Large Cap Value CORE II Funds) may enter into interest rate
futures sale contracts.
ESTABLISHING MARKET EXPOSURE AND MANAGING CASH FLOW WITH FINANCIAL FUTURES
CONTRACTS: On the other hand, purchasing futures contracts could enable a Fund
to take the approximate economic equivalent of a substantial position in bonds
or equity securities. Thus, all of the Funds - - with the exception of the
Money Market Fund - - may purchase and sell stock index and interest rate
futures to maintain market exposure and manage cash flows.
MANAGING FOREIGN CURRENCY EXPOSURE WITH FOREIGN CURRENCY FUTURES CONTRACTS:
Any Fund may use foreign currency futures contracts to the same extent and in
the same manner as it is authorized to use forward foreign exchange contracts in
Section 6. above.
Using options on futures contracts and options on stock indexes for the
foregoing purposes: Each Fund that this Section 18. authorizes to use financial
futures contracts also may purchase options on appropriate financial futures
contracts and (except for the Active Bond Fund) stock indexes for any purpose
and to the extent that it could use financial futures contracts as discussed
above.
LIMITATIONS ON "LONG" POSITIONS FOR CERTAIN FUNDS: The Large Cap Value CORE
and Large Cap Value CORE II Funds may not purchase financial futures contracts,
except for currency futures. The following limitation applies to the Managed,
Aggressive Balanced, Growth & Income, Equity Index, Large Cap Aggressive Growth,
Large/Mid Cap Value, Large/Mid Cap Value II, Fundamental Growth, Mid Cap Blend,
and Real Estate Equity Funds. These Funds may purchase financial futures
contracts, purchase call options on financial futures options or purchase call
options on equity indexes only if (a) they intend to purchase securities (or, in
the case of the Aggressive Balanced, Growth & Income, Equity Index, Large Cap
Aggressive Growth, Large/Mid Cap Value, Large/Mid Cap Value II, Fundamental
Growth, Mid Cap Blend, and Real Estate Equity Funds, wish to establish or
maintain market exposure to securities that the Fund would be authorized to
purchase) and (b) the value of such securities are expected to change by
approximately the same amount as the value of the futures or options contracts
being used to hedge them.
RISKS OF HEDGING-TYPE STRATEGIES: If, after a Fund establishes a hedge
position, the value of the securities or currencies being hedged moves in the
opposite direction from that anticipated, the Fund as a whole will perform less
well than it would have had it not entered into the futures or option
transaction.
The success of the Funds in using hedging-type techniques depends, among
other things, on the subadviser's ability to predict the direction and
volatility of price movements in the futures or options markets, as well as the
securities markets and, in some cases, currency markets, and on the subadviser's
ability to select the proper type, time and duration of option or futures
contracts. Certain of the subadvisers have limited experience in utilizing
these hedging-type techniques, and there can be no assurance that these
techniques will produce their intended result.
21
The prices of the futures and options contracts used for hedging-type
strategies may not vary as contemplated in relation to changes in the price of
the securities or currencies being hedged. Accordingly, there is a risk that
transactions in these instruments, if used by a Fund, may not in fact offset the
impact of adverse market developments in the manner or to the extent
contemplated or that such transactions may result in losses to the Fund which
would not be offset by gains with respect to corresponding portfolio securities
owned or to be purchased by that Fund. Hedging-type transactions also may be
more, rather than less, favorable to a Fund than originally anticipated.
19. USING OPTIONS AND FUTURES IN POTENTIALLY MORE AGGRESSIVE STRATEGIES
This Section 19. should be read against the background of the generally
applicable information about options, futures, and related risks that appears in
Section 15., 17. and 18. above.
This Section 19. applies only to the Managed, Aggressive Balanced, Growth &
Income, Large Cap Value CORE, Large Cap Value CORE II, Large Cap Growth, Mid Cap
Growth, Real Estate Equity, Small/Mid Cap CORE, Small/Mid Cap Growth, Small Cap
Growth, Global Balanced, International Equity Index, International Equity,
Emerging Markets Equity, Short-Term Bond, Bond Index, Global Bond, and High
Yield Bond Funds. The option and futures strategies discussed in this Section
are in addition to those discussed for those (and other) Funds in Sections 7.,
8., 16., and 18. above.
WRITING CERTAIN TYPES OF OPTIONS: The Managed, Aggressive Balanced, Large
Cap Value CORE, Large Cap Value CORE II, Mid Cap Growth, Small/Mid Cap CORE, ,
Small/Mid Cap Growth, Small Cap Growth, Global Balanced, International Equity
Index, International Equity, Emerging Markets Equity, Short-Term Bond, Bond
Index, Global Bond, and High Yield Bond Funds may write "covered" put options on
securities. In addition, the Managed, Aggressive Balanced, Large Cap Value
CORE, Large Cap Value CORE II, Mid Cap Growth, Small/Mid Cap CORE, Small/Mid Cap
Growth, Small Cap Growth, Global Balanced, International Equity Index,
International Equity, Emerging Markets Equity, Short-Term Bond, Bond Index,
Global Bond, and High Yield Bond Funds may also write covered put and call
options on indexes composed of securities in which the Fund may invest. Such
index options may be written in any manner that the Fund in question is
authorized to write options on specific securities it owns.
A put option written by a Fund will be deemed to be "covered" if the Fund
maintains in a segregated account with its custodian cash or liquid securities
with a value at all times at least equal to the exercise price of the put. Put
and call options written by Funds will also be considered to be "covered" to the
extent that the Fund's liabilities under these options are fully offset by its
rights under put or call options purchased by the Fund.
PURCHASING CERTAIN TYPES OF OPTIONS. The Managed, Aggressive Balanced,
Large Cap Value CORE, Large Cap Value CORE II, Mid Cap Growth, Small/Mid Cap
CORE, Small Cap Growth, Global Balanced, International Equity Index,
International Equity, Emerging Markets Equity, Global Bond, and High Yield Bond
Funds may purchase put and call options on securities in which it may invest,
without specific restriction as to the circumstances of such purchases.
Similarly, each of these Funds, as well as the Small/Mid Cap Growth and Short-
Term Bond Funds, may purchase put and call options on indexes composed of
securities in which the Fund may invest, without specific restriction on the
circumstances of such purchases.
Option purchases of the type covered in the preceding paragraph would have
to be consistent with the Fund's investment objective. Also, each of the above-
listed Funds is subject to the limitation on certain futures and options
transactions described in Section 20.
USING OPTIONS TRADED OVER-THE-COUNTER OR ON FOREIGN EXCHANGES: The
Managed, Aggressive Balanced, Growth & Income, Large Cap Value CORE, Large Cap
Value CORE II, Mid Cap Growth, Real Estate Equity, Small/Mid Cap CORE, Small/Mid
Cap Growth, Small Cap Growth, Global Balanced, International Equity Index,
International Equity, Emerging Markets Equity, Short-Term Bond, Bond Index,
Global Bond, and High Yield Bond Funds may also use options on securities and
options on indexes that are traded "over-the-counter" or on foreign exchanges,
in any manner that they would be permitted to use such options that were traded
on domestic exchanges.
22
These Funds will engage in over-the-counter options only with member banks of
the Federal Reserve System and primary dealers in U.S. Government securities.
These Funds will treat over-the-counter options they have purchased and assets
used to cover over-the-counter options they have written as illiquid securities.
However, with respect to options written with primary dealers in U.S. Government
securities pursuant to an agreement requiring a closing purchase transaction at
a formula price, the amount of illiquid securities may be calculated with
reference to the formula price.
USING FUTURES CONTRACTS AND OPTIONS ON FUTURES CONTRACTS FOR CERTAIN
PURPOSES: The Managed, Aggressive Balanced, Growth & Income, Large Cap Value
CORE, Large Cap Value CORE II, Large Cap Growth, Mid Cap Growth, Real Estate
Equity, Small/Mid Cap CORE, Small/Mid Cap Growth, Small Cap Value, Small Cap
Growth, Global Balanced, International Equity Index, International Equity,
Emerging Markets Equity, Short-Term Bond, Bond Index, Active Bond, Active Bond
II, Global Bond, and High Yield Bond Funds may use futures contracts on
securities or on market indexes, and options on such futures contracts, without
specific restriction on the purposes of such transactions. Nevertheless, such
transactions would have to be consistent with the Fund's investment objective.
There is no specific overall limit on the amount of the assets these Funds
may devote to financial futures contracts and options thereon, even if such
contracts are not limited to hedging-type transactions. Nevertheless (except
through the purchase of options, as discussed below) the Funds will not use
these techniques for purpose of "leveraging" the Fund's exposure to the
securities underlying any futures contract or option thereon or its exposure to
foreign currencies. Although this limitation does not apply to options on
futures contracts that are purchased by a Fund, the total amount of assets on
deposit as margin to secure options on futures contracts that are not used for
bona fide hedging purposes plus the amount of premiums paid by a Fund for such
options is (pursuant to the restrictions set forth in Section 20. below) limited
to 5% of the Fund's net assets.
RISKS OF POTENTIALLY MORE AGGRESSIVE OPTIONS AND FUTURES STRATEGIES: As
outlined above, the Funds discussed in this Section 19. may engage in types of
options and futures transactions not permitted to the other Funds, including
over-the-counter options, writing covered put options, and more types of
transactions that are not solely for hedging-type purposes or that otherwise may
be more speculative. Also, even as to options and futures transactions of a
type that are permitted to other Funds, these Funds are, in certain cases, not
as limited regarding the amount of their assets that may be so employed.
Accordingly, to the extent that these Funds exercise their broader authority to
enter into options and futures transactions, they may incur greater risks than
the other Funds.
20. LIMITING THE FUNDS' EXPOSURE TO CERTAIN FUTURES AND OPTION TRANSACTIONS.
The Equity Index, Large Cap Value, Small Cap Equity, and International
Opportunities Funds will not enter into any financial futures contract or
purchase any option thereon, if, immediately thereafter, the total amount of its
assets required by commodities exchanges to be on deposit as margin to secure
its obligations under futures contracts, plus the amount of premiums paid by the
Fund for outstanding options to purchase futures contracts, exceeds 5% of the
market value of the Fund's total assets.
The following limitation applies to all of the Funds that can invest in
financial futures contracts or options thereon, other than the Equity Index,
Large Cap Value, Small Cap Equity, and International Opportunities Funds: No
such other Fund may purchase, sell or write futures contracts or options thereon
other than for "bona fide" hedging purposes (as defined by the U.S. Commodity
Futures Trading Commission) if immediately thereafter the Fund's initial margin
deposits on such outstanding non-hedging futures and options positions, plus the
amount of premiums paid by the Fund for such outstanding non-hedging options on
futures contracts, exceeds 5% of the market value of the Fund's net assets. For
the purpose of this calculation, any amount by which an option is "in the money"
at the time of its purchase is excluded from the premium paid therefor.
Nor will any of the Large Cap Value, Large Cap Value CORE, Large Cap Value
CORE II, Small Cap Equity or International Equity Funds enter into any
transaction in interest rate, stock index or currency futures, or options
thereon, or stock index options, if the value of the securities being hedged by
all of such instruments would immediately thereafter be more than one-third of
the value of the Fund's total assets. Nor will any Fund consider as "hedging"
any transaction that is intended to leverage the Fund's investment exposure to
the type of security being hedged or to leverage the Fund's currency exposure.
23
21. USING OTHER TYPES OF DERIVATIVE INSTRUMENTS
The Global Balanced, International Equity Index, and High Yield Bond Funds
may engage in "swap" transactions (specifically interest rate, currency and
index swaps) and in the purchase or sale of related "caps," "floors," or
"collars." The Emerging Markets Equity Fund may also engage in those
transactions and, in addition, may engage in equity swap transactions. The
Managed and Aggressive Balanced Funds may each invest up to 10% of the
respective Fund's total assets (at the time the swap is entered into) in
currency and equity swaps for hedging purposes or for currency management
strategies as discussed in Section 6 above. The International Equity Fund may
invest up to 10% of its total assets (at the time the swap is entered into) in
currency and equity swaps, although it will use currency swaps only for hedging
purposes. The Global Bond Fund may also use these derivative instruments, but
only for currency management strategies as discussed in Section 6. above.
The nature and risks of these types of transactions are discussed further
in the paragraphs that follow.
INTEREST RATE SWAPS: In a typical interest rate swap agreement, one party
agrees to make payments equal to a floating interest rate on a specified amount
(the "notional amount") in return for payments equal to a fixed interest rate on
the same amount for a specified period. If a swap agreement provides for
payments in different currencies, the parties might agree to exchange the
notional amount as well.
Provided the contract so permits, a Fund will usually enter into swaps on a
"net" basis: that is, the two payment streams are netted out in a cash
settlement on the payment date or dates specified in the instrument, with the
Fund receiving or paying, as the case may be, only the net amount of the two
payments.
INTEREST RATE CAPS, FLOORS AND COLLARS: The purchaser of an interest rate
cap or floor, upon payment of a fee, has the right to receive payments (and the
seller of the cap is obligated to make payments) to the extent a specified
interest rate exceeds (in the case of a cap) or is less than (in the case of a
floor) a specified level over a specified period of time or at specified dates.
The purchaser of an interest rate collar, upon payment of a fee, has the right
to receive payments (and the seller of the collar is obligated to make payments)
to the extent that a specified interest rate falls outside an agreed upon range
over a specified period of time or at specified dates.
CURRENCY, INDEX AND EQUITY SWAPS, CAPS, FLOORS AND COLLARS: Currency,
index, and equity swaps, caps, floors, and collars are similar to those for
interest rates described in the two preceding paragraphs above, except that,
rather than being determined by variations in specified interest rates, the
obligations of the parties are determined by variations in a specified currency,
interest rate index, or equity index, as the case may be.
RISKS AND PURPOSES OF THESE OTHER DERIVATIVES: The amount of a Fund's
potential gain or loss on any swap transaction is not subject to any fixed
limit. Nor is there any fixed limit on the Fund's potential loss if it sells a
cap, floor or collar. If a Fund buys a cap, floor or collar, however, the
Fund's potential loss is limited to the amount of the fee that it has paid.
Swaps, caps, floors and collars tend to be more volatile than many other
types of investments. Nevertheless, a Fund will use these techniques only as a
risk management tool and not for purposes of leveraging the Fund's market
exposure or its exposure to changing interest rates, security values or currency
values. Rather, a Fund will use these transactions only to preserve a return or
spread on a particular investment or portion of its investments, to protect
against currency fluctuations, as a duration management technique, to protect
against any increase in the price of securities the Fund anticipates purchasing
at a later date, or to gain exposure to certain markets in the most economical
way possible. Nor will a Fund sell interest rate caps, floors or collars if it
does not own securities providing the interest that the Fund may be required to
pay under such derivative instruments. Finally, of course, a Fund may use these
derivative instruments only in ways that are consistent with its investment
objective.
The use of swaps, caps, floors and collars involves investment techniques
and risks different from those associated with other portfolio security
transactions. If the subadviser is incorrect in its forecasts of market values,
24
interest rates, currency rates and other applicable factors, the investment
performance of a Fund will be less favorable than if these techniques had not
been used.
These instruments are typically not traded on exchanges. Accordingly,
there is a heightened risk that the other party to certain of these instruments
will not perform its obligations to the Fund. None of the Funds will enter into
any swap, cap, floor, or collar, unless the other party to the transaction is
deemed creditworthy by the subadviser.
There also is a risk that a Fund may be unable to enter into offsetting
positions to terminate its exposure or liquidate its investment under certain of
these instruments when it wishes to do so. Such occurrences could result in
losses to the Fund. In recent years, the swap market has become relatively
liquid. Caps, floors and collars are more recent innovations for which
standardized documentation has not yet been fully developed and, for that
reason, they are less liquid than swaps.
The liquidity of swaps, caps, floors and collars will be determined by the
subadviser based on various factors, including (1) the frequency of trades and
quotations, (2) the number of dealers and prospective purchasers in the
marketplace, (3) dealer undertakings to make a market, (4) the nature of the
instrument (including any demand or tender features) and (5) the nature of the
marketplace for trades (including the ability to assign or offset a Fund's
rights and obligations relating to the investment). Such determinations will
govern whether the instrument will be deemed within the Fund's 15% restriction
on investments in securities that are not readily marketable.
SEGREGATION REQUIREMENTS FOR THESE DERIVATIVES: Each Fund will maintain
cash or liquid high grade debt securities in a segregated account with its
custodian in an amount sufficient at all times to cover its current obligations
under swaps, caps, floors and collars. If a Fund enters into a swap agreement
on a net basis, it will segregate assets with a daily value at least equal to
the excess, if any, of the Fund's accrued obligations under the swap agreement
over the accrued amount the Fund is entitled to receive under the agreement. If
a Fund enters into a swap agreement on other than a net basis, or sells a cap,
floor or collar, it will segregate assets with a daily value at least equal to
the full amount of the Fund's accrued obligations under the agreement.
22. INVESTING IN OTHER INVESTMENT COMPANIES
Each Fund may invest up to 10% of its total assets in shares of other
investment companies investing exclusively in securities in which that Fund may
otherwise invest. As a shareholder in an investment company, a Fund would bear
its ratable share of that investment company's expenses, including advisory and
administration fees, except as specifically stated otherwise in the paragraphs
that follow.
USING OTHER INVESTMENT COMPANIES TO GAIN EXPOSURE TO CERTAIN FOREIGN
SECURITIES: Because of restrictions on direct investment by U.S. entities in
certain countries, other investment companies may provide the most practical (or
only way) for a Fund to invest in certain markets. Such investments may involve
the payment of substantial premiums above the net asset value of those
investment companies' portfolio securities and are subject to limitations under
the Investment Company Act of 1940. A Fund also may incur tax liability to the
extent it invests in the stock of a foreign issuer that is a "passive foreign
investment company," regardless of whether such "passive foreign investment
company" makes distributions to the Fund.
The International Equity Index Fund is likely to invest in closed-end
investment companies known as "country funds" or passive foreign investment
companies. (A "closed end" company is one whose shares can generally be disposed
of only in market transactions, as opposed to redemptions. An "open end" company
is one whose shares are freely redeemable.)The International Equity Fund may
also purchase shares of investment companies investing primarily in foreign
securities, including country funds.
The Large Cap Value CORE, Large Cap Value CORE II, and International Equity
Funds may invest in iShares/(sm)/ (formerly called World Equity Benchmark Shares
or "WEBS") and other investment company securities that represent a similar
interest in securities included in a foreign securities index. iShares/(sm)/ are
shares of an investment company that invests substantially all of its assets in
securities included in the MSCI indices for specified countries. iShares/(sm)/
are listed on the AMEX and were initially offered to the public in 1996. The
market prices of iShares/(sm)/ are expected to fluctuate in accordance with both
changes in the NAVs of their underlying indices and
25
supply and demand of iShares/(sm)/ on the AMEX. To date, iShares/(sm)/ have
traded at relatively modest discounts and premiums to the NAVs. However, iShares
have a limited operating history and information is lacking regarding the actual
performance and trading liquidity of iShares/(sm)/ for extended periods or over
complete market cycles. In addition, there is no assurance that the requirements
of the AMEX necessary to maintain the listing of iShares/(sm)/ will continue to
be met or will remain unchanged. In the event substantial market or other
disruptions affecting iShares/(sm)/ should occur in the future, the liquidity
and value of a Fund's shares could also be substantially and adversely affected.
If such disruptions were to occur, a Fund could be required to reconsider the
use of iShares/(sm)/ as part of its investment strategy.
INVESTING IN STANDARD & POOR'S DEPOSITARY RECEIPTS (SPDR'S): The Equity
Index, Large Cap Value CORE, Large Cap Value CORE II, and Small/Mid Cap CORE
Funds may, consistent with their investment objectives, purchase Standard &
Poor's Depositary Receipts ("SPDRs"). SPDRs are American Stock Exchange-traded
securities that represent ownership in the SPDR Trust, a trust which has been
established to accumulate and hold a portfolio of common stocks that is intended
to track the price performance and dividend yield of the S&P 500. This trust is
a regulated investment company that is sponsored by a subsidiary of the American
Stock Exchange. SPDRs may be used for several reasons, including but not
limited to: facilitating the handling of cash flows or trading, or reducing
transaction costs.
INVESTING IN MONEY MARKET FUND SHARES: A Fund may also invest in money
market funds managed by its subadviser in reliance upon an exemptive order
received by its subadviser from the SEC. Such exemptive orders may permit funds
managed by the subadviser to invest in money market funds managed by it, to an
extent in excess of amounts otherwise permitted by the Investment Company Act.
The subadviser to the Mid Cap Growth Fund will remit the fees it receives from
money market funds it manages, to the extent such fees are based on the Mid Cap
Growth Fund's assets, to the Mid Cap Growth Fund. Nor are the Large Cap Value,
Small Cap Value and International Opportunities Funds charged any investment
management fees for investments in money market funds managed by their
subadvisers.
23. PURCHASING "WHEN ISSUED" SECURITIES AND FORWARD COMMITMENTS
All Funds (other than the Growth & Income and Money Market Funds) may
purchase securities on a when issued or delayed delivery basis. When such
transactions are negotiated, the price of such securities is fixed at the time
of commitment, but delivery and payment for the securities may take place a
month or more after the date of the commitment to purchase. The securities so
purchased are subject to market fluctuations, and no interest accrues to the
purchaser during this period.
In addition, these Funds may make contracts to purchase securities for a
fixed price at a future date beyond customary settlement time ("forward
commitments"), because new issues of securities are typically offered to
investors on that basis. Forward commitments involve a risk of loss if the
value of the security to be purchased declines prior to the settlement date.
This risk is in addition to the risk of decline in value of the Fund's other
assets. Although a Fund will enter into such contracts with the intention of
acquiring the securities, the Fund may dispose of a commitment prior to
settlement if its subadviser deems it appropriate to do so.
ASSET SEGREGATION REQUIREMENT FOR THESE TRANSACTIONS. Each Fund will
maintain in a segregated account with its custodian cash or liquid securities
that at all times equal the amount of its when issued and forward commitments.
24. SHORT-TERM TRADING
All Funds can use short-term trading of securities as a means of managing
their portfolios to achieve their investment objectives. As used herein,
"short-term trading" means the purchase and subsequent sale of a security after
it has been held for a relatively brief period of time, in some instances for
less than three months. A Fund may engage in short-term trading to the extent
that the subadviser believes the transactions, net of costs (including
commissions, if any), will benefit the Fund. Generally speaking, short-term
trading can be expected to generate expenses for a Fund that would not be
incurred by a Fund that did not engage in that practice.
26
25. ENTERING INTO REPURCHASE AGREEMENTS
All of the Funds may enter into repurchase agreements.
A repurchase agreement is a contract under which a Fund would acquire a
security for a relatively short period (e.g., 7 days), subject to the seller's
obligation to repurchase the security at a fixed time and price (representing
the Fund's cost plus interest). Repurchase agreements will be entered into only
with member banks of the Federal Reserve System and with "primary dealers" in
U.S. Government securities.
The Managed, Growth & Income, Large Cap Growth, Real Estate Equity, Active
Bond, and Money Market Funds may not invest in repurchase agreements maturing in
more than 7 days. No other Fund will invest in repurchase agreements maturing
in more than 7 days if that investment, together with any other investments
deemed "illiquid," would exceed 15% of the Fund's net assets.
Each Fund has a procedure providing that the securities serving as
collateral for each repurchase agreement must be delivered to the Fund's
custodian or sub-custodian, either physically or in book-entry form, and that
the collateral must be marked-to-market daily to ensure that each repurchase
agreement is fully "collateralized" at all times. In the event of a bankruptcy
or other default by a seller of a repurchase agreement, however, the Fund could
experience delays in liquidating the underlying securities and could experience
losses (including the possible decline in the value of the underlying securities
during the period while the Fund seeks to enforce its rights thereto, possible
subnormal levels of income and lack of access to income during this period, and
expenses of enforcing its rights).
26. PARTICIPATING IN JOINT TRADING ACCOUNTS
John Hancock has established a "joint trading account" that all Funds, in
the discretion of their subadvisers, can use to invest relatively small amounts
of cash on a more favorable basis than they could do individually. John Hancock
is responsible for investing the aggregate cash balances in the joint trading
account into one or more repurchase agreements, as described in Section 25.
above, or in other money market instruments. The joint trading account was
established pursuant to an order of the SEC and all of the Funds (except the
Large Cap Value CORE, Large Cap Value CORE II, Mid Cap Growth Fund, Small/Mid
Cap CORE, Small Cap Growth, International Equity, and Money Market Funds)
regularly participate in it.
Each Fund is also free to participate in any similar joint trading account
that their subadviser operates for mutual fund assets managed by it. These
other joint trading accounts would be operated pursuant to their own SEC
exemptive orders, and the following Funds regularly participate in such other
joint trading accounts: the Large Cap Value CORE, Large Cap Value CORE II, Mid
Cap Growth, Small/Mid Cap CORE, Small/Mid Cap Growth, Small Cap Growth, and
International Equity Funds.
In each case, the subadviser that operates one of these joint trading
accounts is responsible for ensuring that all repurchase agreements acquired
through these accounts are at all times fully collateralized.
27. LENDING OF FUND SECURITIES
In order to generate additional income, all Funds may, and most do, lend
securities from their portfolios to brokers, dealers and financial institutions
such as banks and trust companies. Such loans will be secured by collateral
consisting of cash or U.S. Government securities, which will be maintained in an
amount equal to at least 100% of the current market value of the loaned
securities. During the period of the loan, the Fund receives the income (if
any) on the loaned securities, as well as additional compensation for making the
loan. Cash collateral may be invested in short-term securities, which will
increase the current income of the Fund. Such loans will not be for more than 60
days and will be terminable by the Fund at any time. The Fund will have the
right to regain record ownership of loaned securities in order to exercise
rights of a holder thereof including receiving interest or other distributions
or exercising voting rights. The Fund may pay reasonable fees to persons
unaffiliated with the Fund for services in arranging such loans.
27
Lending of portfolio securities involves a risk of failure by the borrower
to return the loaned securities, in which event the Fund may incur a loss.
However, most of the Funds' loans of securities are pursuant to an arrangement
with State Street Bank & Trust Company, the Trust's primary custodian. Under
these arrangements, State Street Bank & Trust Company guarantees the Trust
against any loss or damages that any Fund incurs as a result of the borrower
failing to return the Fund's securities in accordance with the terms of the
loan. No Fund will lend portfolio securities having a total value in excess of
33 1/3% of its total assets.
28. USING REVERSE REPURCHASE AGREEMENTS AND MORTGAGE "DOLLAR ROLLS"
The Short-Term Bond and Money Market Funds may enter into reverse
repurchase agreements to facilitate portfolio liquidity, a practice common in
the mutual fund industry, or for arbitrage transactions (discussed below). In a
reverse repurchase agreement, the Fund sells a security and enters into an
agreement to repurchase the security at a specified future date, but at a lower
price. The Fund generally retains the right to interest and principal payments
on the security, as well as use of the proceeds while the repurchase agreement
is outstanding.
The Managed, Aggressive Balanced, Short-Term Bond, Bond Index, Active Bond,
Active Bond II, Global Balanced, and Global Bond Funds may enter into mortgage
dollar rolls, in which the Fund sells mortgage-backed securities for delivery in
the current month and simultaneously contracts to purchase substantially similar
securities at a specified future date and price. While the Fund foregoes
principal and interest paid on the mortgage-backed securities during the "roll"
period, the Fund is compensated by the difference between the current sale price
and the lower price for the future purchase as well as by any return earned on
the proceeds of the initial sale.
The mortgage dollar rolls and reverse repurchase agreements entered into by
a Fund may be used as arbitrage transactions in which the Fund will maintain an
offsetting position in investment-grade debt obligations or repurchase
agreements that mature on or before the settlement date of the related mortgage
dollar roll or reverse repurchase agreement. Since the Fund will receive
interest on the securities or repurchase agreements in which it invests the
transaction proceeds, such transactions could be considered to involve leverage.
However, since such securities or repurchase agreements will be high quality and
will mature on or before the settlement date of the mortgage dollar roll or
reverse repurchase agreement, the Trust does not believe that such arbitrage
transactions present the risks to the Fund that are associated with other types
of leverage.
ASSET SEGREGATION REQUIREMENTS FOR REVERSE REPURCHASE AGREEMENTS AND
MORTGAGE DOLLAR ROLLS: Each Fund will set aside in a segregated account with
its custodian liquid assets that at all times are at least equal to its
obligations under outstanding reverse repurchase agreements and mortgage dollar
rolls it has entered into.
29. INVESTING IN RULE 144A AND ILLIQUID SECURITIES
All Funds may purchase unregistered securities that are eligible for resale
to "qualified institutional buyers" pursuant to Rule 144A under the Securities
Act of 1933. Case-by-case determinations are made whether each issue of Rule
144A securities owned by the Fund is an illiquid security.
If illiquid, a Rule 144A security may not be purchased by the Money Market
Fund. Nor may the Money Market Fund purchase any other investments that are
deemed to be illiquid, if the total of all its illiquid assets would be more
than 10% of its net assets. Each Fund other than the Money Market Fund,
however, may purchase illiquid Rule 144A securities, or other illiquid assets
if, and only if, the total of all the Fund's illiquid assets would not thereby
be made to exceed 15% of the Fund's net assets.
30. INVESTING IN CONVERTIBLE SECURITIES AND WARRANTS
------------------------------------------------
Investments may be made in debt or preferred equity securities convertible
into, or exchangeable for, equity securities. Traditionally, convertible
securities have paid dividends or interest at rates higher than common stocks
but lower than nonconvertible securities. They generally participate in the
appreciation or depreciation of the underlying stock into which they are
convertible, but to a lesser degree. In recent years, convertibles have been
developed which combine higher or lower current income with options and other
features. Warrants are options to buy a stated number of shares of common stock
at a specified price anytime during the life of the warrants (generally, two or
more years).
28
31. INVESTING IN INITIAL PUBLIC OFFERINGS ("IPOS")
Some Funds of the Trust have the ability to invest in IPOs. IPO
investments may be more volatile than other types of investments and a Fund's
investments in IPOs may be subject to more erratic price movements than the
overall equity market. IPOs could have a substantial impact on performance,
either positive or negative, particularly on a fund with a small asset base.
The actual effect of IPOs on performance depends on a variety of factors,
including the number of IPOs the Fund invests in, whether and to what extent a
security purchased in an IPO appreciates in value, and the asset base of the
Fund. There is no guarantee that a Fund's investments in IPOs, if any, will
continue to have a similar impact on the Fund's performance in the future.
THE FUNDS' FUNDAMENTAL INVESTMENT RESTRICTIONS
The Funds' investment objectives and strategies may, in general, be changed
without the approval of shareholders.
In a few cases, however, the Investment Company Act requires such approval. In
addition, the Trust has adopted as "fundamental" the below-listed restrictions
relating to the investment of each Fund's assets. That these restrictions are
"fundamental" policies means that they may not be changed for any Fund without
the approval of a majority of the outstanding voting shares of each affected
Fund. (The term "majority of the outstanding voting shares" means the lesser of
(1) 67% of the shares represented at a meeting at which more than 50% of the
outstanding shares are represented or (2) more than 50% of the outstanding
shares.)
To the extent the Trust's prospectus or this Statement of Additional
Information anywhere sets forth investment restrictions more restrictive than
the fundamental restrictions described below, the more restrictive limitation
controls; but any such more restrictive limitation may be changed without any
shareholder approval, subject to the below fundamental restrictions.
As a matter of fundamental policy, no Fund will:
(1) Purchase real estate or any interest therein, except through the
purchase of corporate or certain government securities (including securities
secured by a mortgage or a leasehold interest or other interest in real estate).
A security issued by a real estate or mortgage investment trust or an interest
in a pool of real estate mortgage loans is not treated as an interest in real
estate. Investments of the type permitted in the Real Estate Equity Fund are not
deemed interests in real estate for the purposes of this restriction.
(2) Make loans, other than through the acquisition of obligations in which
the Fund may invest consistent with its objective and investment policies,
except that each Fund may lend portfolio securities not having a value in excess
of 33 1/3% of the Fund's total assets.
(3) Invest in commodities or in commodity contracts or in puts, calls or a
combination of both, except that
(A) the Managed, Aggressive Balanced, Equity Index, Large Cap Value,
Large Cap Growth, Large Cap Value CORE, Large Cap Value CORE II, Large Cap
Aggressive Growth, Large/Mid Cap Value, Large/Mid Cap Value II, Mid Cap
Growth, Fundamental Growth, Mid Cap Blend, Small Cap Value, Small/Mid Cap
Growth, Small/Mid Cap CORE, Small Cap Equity, Small Cap Growth, Global
Balanced, International Equity Index, International Equity, International
Opportunities, Emerging Markets Equity, Short-Term Bond, Active Bond II,
Bond Index, Global Bond, and High Yield Bond Funds may
(i) write call options on, and purchase put options covered by, securities
held by them and purchase and sell options to close out positions thus
established, provided that no such covered
29
call or put option position will be established in the Large Cap
Growth Fund if more than one-third of the Fund's total assets would
immediately thereafter be subject to such call and put options,
(ii) purchase options on stock indexes and write such options to close out
positions previously established, and
(iii) enter into financial futures contracts or purchase options on such
contracts, and effect offsetting transactions to close out such
positions previously established; provided that, (a) as to the Large
Cap Value, Large Cap Growth, Large/Mid Cap Value II, and Small Cap
Equity Funds, no position in financial futures, options thereon or
options on securities indexes will be established if, immediately
thereafter, the then-current aggregate value of all securities owned
or to be acquired by the Fund which are hedged by such instruments
exceeds one-third of the value of its total assets and (b) as to the
Large Cap Value, Equity Index, Large/Mid Cap Value II, Small Cap
Equity, and International Opportunities Funds, no futures position or
position in options on futures will be established if, immediately
thereafter, the total of the initial margin deposits required by
commodities exchanges with respect to all open futures positions at
the time such positions were established, plus the sum of the premiums
paid for all unexpired options on futures contracts would exceed 5% of
the Fund's total assets;
(B) with respect to the Managed, Aggressive Balanced, Equity Index,
Large Cap Value, Large Cap Value CORE, Large Cap Value CORE II, Large Cap
Aggressive Growth, Large/Mid Cap Value, Large/Mid Cap Value II, Mid Cap
Growth, Fundamental Growth, Mid Cap Blend, Small/Mid Cap Growth, Small/Mid
Cap CORE, Small Cap Equity, Small Cap Value, Small Cap Growth, Global
Balanced, International Equity Index, International Equity, International
Opportunities, Emerging Markets Equity, Short-Term Bond, Bond Index, Active
Bond, Active Bond II, Global Bond, and High Yield Bond Funds, forward
foreign exchange contracts, forward commitments, and when issued securities
are not deemed to be commodities or commodity contracts or puts or calls
for the purposes of this restriction;
(C) the Managed, Aggressive Balanced, Mid Cap Growth, Large Cap Value
CORE, Large Cap Value CORE II, Large Cap Aggressive Growth, Large/Mid Cap
Value, Small/Mid Cap Growth, Small/Mid Cap CORE, Small Cap Growth, Global
Balanced, International Equity Index, International Equity, Emerging
Markets Equity, Short-Term Bond, Bond Index, Global Bond, and High Yield
Bond Funds may, in addition to the activities permitted in (A) and (B)
above,
(i) write put and call options on securities and market indexes, if such
positions are covered by other securities or outstanding put and call
positions of the Fund, and purchase put and call options to close out
any positions thus established, and
(ii) enter into futures contracts on securities or market indexes, or
purchase or write put or call options on such futures contracts, for
hedging or speculative (non-hedging) purposes, and enter into
offsetting transactions to close out any positions thus established;
provided that none of these Funds may purchase, sell or write such
futures or options other than for bona fide hedging purposes if
immediately thereafter the Fund's margin deposits on such non-hedging
positions, plus the amount of premiums paid for outstanding options on
futures contracts that are not for bona fide hedging purposes (less
any amount by which any such option is "in the money" at the time of
purchase) exceeds 5% of the market value of the Fund's net assets;
(D) the Large Cap Growth, Active Bond and Active Bond II Funds may
enter into futures contracts and purchase or write options thereon to the
same extent as is permitted in (C)(ii), above, with respect to the Funds
listed therein, and the Growth & Income, Real Estate Equity, and Health
Sciences Funds may enter into futures contracts and purchase or write
options thereon to the same extent as if permitted in (A)(iii) and (C)(ii)
above; and
30
(E) the Managed, Aggressive Balanced, Equity Index, Large Cap Value,
Large Cap Value CORE, Large Cap Value CORE II, Large Cap Aggressive Growth,
Large/Mid Cap Value, Large/Mid Cap Value II, Mid Cap Growth, Fundamental
Growth, Mid Cap Blend, Small/Mid Cap CORE, Small Cap Equity, Small Cap
Value, Small Cap Growth, Global Balanced, International Equity Index,
International Equity, International Opportunities, Emerging Markets Equity,
Active Bond II, Global Bond, and High Yield Bond Funds may purchase or
write put or call options on foreign currencies, may purchase put or call
options on securities, and may enter into closing transactions with respect
to any of such options.
(4) Engage in the underwriting of securities of other issuers, except to
the extent the Fund may be deemed an underwriter in selling as part of an
offering registered under the Securities Act of 1933 securities which it has
acquired.
(5) Borrow money, except from banks as a temporary measure where such
borrowings would not exceed 5% of the market value of total assets of the Fund
as of the time each such borrowing is made, or 10% as to the Aggressive
Balanced, Large Cap Value CORE, Large Cap Value CORE II, Large Cap Aggressive
Growth, Large/Mid Cap Value, Fundamental Growth, Mid Cap Blend, Small/Mid Cap
CORE, Small Cap Value, Health Sciences, International Equity Index,
International Equity, Emerging Markets Equity, Bond Index, Active Bond II and
High Yield Bond Funds, subject to a non-fundamental policy that none of these
Funds will make additional investments at any time when such borrowings plus any
amounts payable by the Fund under reverse repurchase agreements exceed 5% of
that Fund's total assets.
(6) Except as set forth in the following sentence, neither the Managed and
Active Bond Funds, nor the Growth & Income, Large Cap Growth, Real Estate
Equity, or Money Market Funds may purchase securities which are subject to legal
or contractual delays in or restrictions on resale. The Managed, Growth &
Income, Large Cap Growth, Real Estate Equity, and Active Bond Funds may,
however, purchase restricted securities, including those eligible for resale to
"qualified institutional buyers" pursuant to Rule 144A under the Securities Act
of 1933, subject to a non fundamental restriction limiting all illiquid
securities held by each Fund to not more than 15% of the Trust's net assets.
(7) Purchase securities on margin, except for short-term credits as may be
necessary for the clearance of purchases or sales of securities, or effect a
short sale of any security. Neither the use of futures contracts as permitted
by restriction (3), above nor the use of option contracts as permitted by
restriction (3) above, shall be deemed to be the purchase of a security on
margin.
(8) Invest for the purpose of exercising control over or management of any
company.
(9) Unless received as a dividend or as a result of an offer of exchange
approved by the Securities and Exchange Commission ("SEC") or of a plan of
reorganization, purchase or otherwise acquire any security issued by an
investment company if the Fund would immediately thereafter own (a) more than 3%
of the outstanding voting stock of the investment company, (b) securities of the
investment company having an aggregate value in excess of 5% of the Fund's total
assets, (c) securities of investment companies having an aggregate value in
excess of 10% of the Fund's total assets, or (d) together with investment
companies having the same investment adviser as the Fund (and companies
controlled by such investment companies), more than 10% of the outstanding
voting stock of any registered closed-end investment company. A real estate or
mortgage investment trust is not considered an investment company. This
restriction (9) does not apply to the Aggressive Balanced, Equity Index, Large
Cap Value, Large Cap Value CORE, Large Cap Value CORE II, Large Cap Aggressive
Growth, Large/Mid Cap Value, Large/Mid Cap Value II, Mid Cap Growth, Fundamental
Growth, Mid Cap Blend, Small/Mid Cap CORE, Small Cap Equity, Small Cap Value,
Small Cap Growth, Health Sciences, International Equity, Global Balanced,
International Opportunities, Emerging Markets Equity, Bond Index, Active Bond
II, Global Bond, or High Yield Bond Funds.
(10) Purchase securities of any issuer, if (a) with respect to 75% of the
market value of its total assets, more than 5% of the Fund's total assets taken
at market value would at the time be invested in the securities of such issuer,
unless such issuer is the United States Government or its agency or
instrumentality, or (b) such purchase would result in more than 10% of the
outstanding voting securities of such issuer being held by the Fund. This
31
restriction (10) does not apply to the Managed, Growth & Income, Large Cap
Growth, Large Cap Aggressive Growth, Mid Cap Growth, Health Sciences, Global
Balanced, or Global Bond Funds.
(11) Issue senior securities. For the purposes of this restriction, the
following shall not be deemed to be the issuance of a senior security: the use
of futures contracts as permitted by restriction (3), above; the use of option
contracts as permitted by restriction (3), above; and the use of foreign
currency contracts.
The Aggressive Balanced, Equity Index, Large Cap Value, Large Cap Value
CORE, Large Cap Value CORE II, Large Cap Aggressive Growth, Large/Mid Cap Value,
Large/Mid Cap Value II, Mid Cap Growth, Fundamental Growth, Mid Cap Blend,
Small/Mid Cap Growth, Small/Mid Cap CORE, Small Cap Equity, Small Cap Value,
Small Cap Growth, Global Balanced, International Equity Index, International
Equity, International Opportunities, Emerging Markets Equity, Short-Term Bond,
Bond Index, Active Bond, Active Bond II, Global Bond, and High Yield Bond Funds
will not purchase the securities of issuers conducting their principal business
activity in the same industry if, immediately after such purchase, the value of
the Fund's investments in such industry would exceed 25% of its total assets
taken at market value. For the purpose of this restriction, telephone, water,
gas and electric public utilities are each regarded as separate industries, and
wholly-owned finance companies are considered to be in the industry of their
parents if their activities are primarily related to financing the activities of
their parent. In conformity with its understanding of current interpretations of
the Investment Company Act by the staff of the SEC, the Trust, as a non-
fundamental policy, interprets this limitation not to apply to securities issued
by the Federal government, or state and local governments within the U.S., or
political subdivisions thereof; but this exception does not apply to securities
of foreign government entities. If these interpretations change, however, the
Trust may modify its practices to conform to such changes.
For purposes of any restrictions or limitation to which the Trust is
subject, no Fund, by entering into any futures contract or acquiring or writing
any option thereon or on any security or market index, shall be deemed
(1) to have acquired or invested in any securities of any exchange or
clearing corporation for any such instrument or
(2) to have acquired or invested in any debt obligations or in any stocks
comprising indexes on which such instrument is based, but which the Fund does
not hold directly in its portfolio.
32
BOARD OF TRUSTEES AND OFFICERS OF THE TRUST
The Board of Trustees of the Trust is responsible for overall management of
the Trust. The Board may exercise all powers of the Trust, except those powers
which are conferred solely upon or reserved to the shareholders. The following
table provides information about the members of the Board of Trustees and the
officers of the Trust:
NAME, ADDRESS AND AGE POSITIONS HELD WITH TRUST PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS
--------------------- ------------------------- ----------------------------------------------
Michele G. Van Leer* (age 43) Chairman and Trustee Senior Vice President, Product Management, John
John Hancock Place Hancock Life Insurance Company; Vice Chairman,
Boston, Massachusetts 02117 President & Director, John Hancock Variable
Life Insurance Company
Thomas J. Lee* (age 46) Vice Chairman, President Vice President, Life and Annuity Services, John
John Hancock Place and Trustee Hancock Life Insurance Company; Vice President
Boston, Massachusetts 02117 & Director, John Hancock Variable Life
Insurance Company
Elizabeth G. Cook (age 63) Trustee Expressive Arts Therapist (Clients:
85 East India Row Massachusetts General Hospital, Dana-Farber
Boston, Massachusetts 02110 Cancer Institute); President, The Advertising
Club of Greater Boston
Diane C. Kessler (age 54) Trustee Executive Director, Massachusetts Council of
325 Parker Street Churches
Newton Centre, Massachusetts 02159
Robert Verdonck (age 55) Trustee Chairman, President and Chief Executive
One Bennington Street Officer, East Boston Savings Bank
East Boston, Massachusetts
02128
Hassell H. McClellan (age 55) Trustee Associate Professor and Graduate Dean, The
Boston College Wallace E. Carroll School of Management, Boston
Graduate School of Management College
140 Commonwealth Avenue
Chestnut Hill, Massachusetts
02467
Raymond F. Skiba (age 55) Treasurer Director, Fund Financial Management, John
John Hancock Place Hancock Funds, Inc.
Boston, Massachusetts 02117
Karen Q. Visconti (age 47) Secretary Senior Marketing Consultant, Life Product
John Hancock Place Management, John Hancock Life Insurance Company
Boston, Massachusetts 02117
* Ms. Van Leer and Mr. Lee are the only Trustees who are "interested persons"
as defined in the Investment Company Act.
33
Certain members of the Trust's Board of Trustees may own either
variable annuity contracts or variable life insurance policies that are
supported by one of the Separate Accounts and, in that sense, have an interest
in shares of the Trust.
The combined interest of all the Trust's officers and Trustees, however, does
not aggregate as much as 1% of any Fund's net assets.
Compensation paid by the Trust to its current disinterested
Trustees during 2000 was as follows:
Ms. Cook $52,100
Ms. Kessler $47,800
Mr. Verdonk $51,300
Mr. McClellan $43,900
The Trust paid no compensation to any other officer or Trustee. Mr McClellan did
not become a Trustee until February 16, 2000.
34
INVESTMENT ADVISORY ARRANGEMENTS
THE TRUST'S INVESTMENT ADVISORY ARRANGEMENTS WITH JOHN HANCOCK
John Hancock, the Trust's investment adviser, is a Massachusetts
corporation. Until February 1, 2000, John Hancock was a mutual life insurance
company. Now, it is a subsidiary of John Hancock Financial Services, Inc., a
publicly-traded holding company. John Hancock provides advisory services to the
Funds pursuant to several investment advisory agreements. The Trust is party to
each of these investment advisory agreements with John Hancock.
The Trust pays John Hancock investment advisory fees at the following
rates:
JOHN HANCOCK'S INVESTMENT ADVISORY FEE
AS AN ANNUAL PERCENTAGE OF EACH PORTION
FUND OF THE FUND'S AVERAGE DAILY NET ASSETS
---- --------------------------------------
Managed .74% of first $500 million; .68% of next $500 million; .65% above $1 billion
Large Cap Growth .40% of first $500 million; .35% of next $500 million; .30% above $1 billion
Growth & Income .71% of first $150 million; .69% of next $150 million; .67% above $300 million
Aggressive Balanced .675% of first $250 million; .625% of next $250 million; .60% above $500 million
Large Cap Value CORE .75% of first $50 million; .65% of next $150 million; .60% above $200 million
Large Cap Value CORE II .75% of first $50 million; .65% of next $150 million; .60% above $200 million
Large Cap Aggressive Growth 1.00% of first $10 million; .875% of next $10 million; .75% above $20 million
Active Bond .70% of first $100 million; .65% of next $150 million; .61% of next $250 million;
.58% of next $500 million; .55% above $1 billion
Active Bond II .70% of first $100 million; .65% of next $150 million; .61% of next $250 million;
.58% of next $500 million; .55% above $1 billion
Money Market .25%
Small Cap Growth .75%
Large Cap Value .75%
Equity Index .15% of first $75 million; .14% of next $50 million; .13% above $125 million
Large/Mid Cap Value .95% of first $25 million; .85% of next $25 million; .75% of next $50 million;
65% above $100 million
35
JOHN HANCOCK'S INVESTMENT ADVISORY FEE
AS AN ANNUAL PERCENTAGE OF EACH PORTION
FUND OF THE FUND'S AVERAGE DAILY NET ASSETS - CONTINUED
---- --------------------------------------------------
Large/Mid Cap Value II .95% of first $25 million; .85% of next $25 million; .75% of next $50 million;
65% above $100 million
Small Cap Equity .90% of first $150 million; .75% of next $150 million; .65% of next $200 million;
.60% above $500 million
Mid Cap Growth .85% of first $100 million; .80% above $100 million
Fundamental Growth .90% of first $250 million; .85% above $250 million
Real Estate Equity 1.10% of first $50 million; 1.00% of the next $50 million; .90% of the
next $100 million; .80% above $200 million
Health Sciences 1.00% of first $250 million; .95% above $250 million
Mid Cap Blend .75% of first $250 million; .70% of next $250 million; .65% above $500 million
Small/Mid Cap Growth .75% of first $250 million; .70% of next $250 million; .65% above $500 million
Small Cap Value .95%
Small/Mid Cap CORE .80% of first $50 million; .70% above $50 million
Global Balanced 1.05% of first $150 million; .95% of next $150 million; .80% of next
$200 million; .75% above $500 million
International Equity Index .18% of first $100 million; .15% of next $100 million; .11% above $200 million
International Equity 1.00% of first $50 million; .95% of next $150 million; .90% above $200 million
International Opportunities 1.00% of first $20 million; .85% of next $30 million; .75% above $50 million
Emerging Markets Equity 1.30% of first $10 million; 1.20% of next $140 million; 1.10% above $150 million
Short-Term Bond .30%
Bond Index .15% of first $100 million; .13% of next $150 million; .11% above $250 million
Global Bond .85% of first $150 million; .80% of next $150 million; .75 of next $200 million;
.70% above $500 million
High Yield Bond .65% of first $100 million; .60% of next $100 million; .50% above $200 million
36
Under its investment advisory agreements with the Trust, John Hancock
advises the Trust in connection with policy and strategy decisions; provides
administration of much of the Trust's day-to-day operations; serves as the
Trust's transfer agent and dividend disbursing agent; prepares the Trust's
financial statements; maintains records required by the Investment Company Act
of 1940; and supervises activities of the subadvisers (discussed below) and of
other service providers to the Trust. John Hancock also provides the Trust with
office space, supplies and other facilities required for the business of the
Trust. John Hancock pays the compensation of Trust officers and employees and
the expenses of clerical services relating to the administration of the Trust.
To the extent that any administrative or legal services for the Trust are
provided by John Hancock's Law Department, however, John Hancock charges the
Trust separately, and the Trust pays such charges in accordance with the terms
of the investment advisory agreements.
All other expenses not expressly assumed by John Hancock under the
investment advisory agreements are paid by the Trust. These include, but are
not limited to, the Trust's taxes (if any); custodian fees; auditing fees;
brokerage commissions; advisory fees; the compensation of Trustees who are not
affiliated with John Hancock; the Trust's fidelity bond coverage; the costs of
printing and distributing annual and semi-annual reports and voting materials to
holders of variable annuity contracts and variable life insurance policies that
participate in the Trust; tabulating votes; fees for certain accounting,
valuation, and compliance services; legal fees; SEC registration costs; proxy
costs; costs of organizing any new Funds; and other expenses related to the
Trust's operations.
THE TRUST'S ARRANGEMENTS WITH SUBADVISERS
Set forth below are the names to the Funds' subadvisers and
certain persons who may control them.
SUBADVISER GENERAL NATURE
AND THE FUNDS SUBADVISER'S OF
IT MANAGES CONTROLLING PERSON BASIS OF CONTROL CONTROL PERSON'S BUSINESS
-------------------------------- ------------------ ----------------------- --------------------------------
1. Independence Investment LLC John Hancock Indirectly owns 100% Financial services holding
(Managed, Growth & Income, Financial Services of voting stock company
Large Cap Growth, Real Estate Inc.
Equity, Short-Term Bond,
Aggressive Balanced, Mid-Cap John Hancock Indirectly owns Life insurance and other
Blend and International Equity Life Insurance 100% of voting stock financial services provided
Index Funds) Company directly or through subsidiaries
2. John Hancock Advisers, Inc. Same as 1. above.
(Small Cap Growth, Active Bond
and Active Bond II Funds)
3. SSgA Funds Management, Inc. State Street Owns 100% of the Financial services holding
(Equity Index Fund) Corporation subadviser company
4. T. Rowe Price Associates, Inc. T. Rowe price Owns 100% of the Publicly traded financial
(Large Cap Value and Small Cap Group, Inc. subadviser services holding company
Value Funds)
37
SUBADVISER GENERAL NATURE
AND THE FUNDS SUBADVISER'S OF
IT MANAGES--CONTINUED CONTROLLING PERSON BASIS OF CONTROL CONTROL PERSON'S BUSINESS
-------------------------------- ------------------ ----------------------- --------------------------------
5. Janus Capital Corporation Stilwell Indirectly owns 88.7% Publicly traded financial asset
(Mid Cap Growth Fund) Financial, Inc. of the subadviser management company
Owns 6.2% of the
Thomas H. Bailey subadviser and, by CEO and Chairman of the Board,
contract, may elect Janus Capital Corporation
majority of the
subadviser's directors
(subject to approval
of Stilwell Financial,
Inc.)
6. Goldman Sachs Asset Management Goldman, Sachs & The subadviser is a Publicly traded investment
(Small/Mid Cap CORE, Large Cap Co. unit of the Investment banking and financial services
Value CORE, Large Cap Value Management Division of company
CORE II and International Goldman, Sachs & Co.
Equity Funds)
7. T. Rowe Price International, T. Rowe Indirectly owns 100% Publicly traded financial
Inc. (International PriceGroup, Inc. of the subadviser services holding company
Opportunities Fund)
8. Morgan Stanley Dean Witter Morgan Stanley Directly owns 100% of Publicly traded financial
Investment Management Inc. Dean Witter & Co. voting stock services company
(Emerging Markets Equity and
Real Estate Equity Funds)
9. Mellon Bond Associates, LLP Mellon Financial Directly owns 100% of Bank holding company
(Bond Index Fund) Corporation the subadviser
10. Wellington Management Company, Laurie A. Gabriel; Managing Partners Investment management
LLP (High Yield Bond, Small/Mid Duncan M.
Cap Growth, Large/Mid Cap McFarland;
Value, Large/Mid Cap Value II John R. Ryan
and Money Market Funds)
11. Alliance Capital Management, AXA Financial, AXA and its Life insurance and other
LLP (Large Cap Aggressive Inc. ("AXA") subsidiaries owned financial services
Growth) (as of 10/2/00) 55.38%
partnership interest
in the subadviser
38
12. Capital Guardian Trust Company The Capital Group The subadviser is an Financial services holding
(Managed, Small Cap Equity, Companies, Inc. indirect wholly owned company
Global Balanced and Global Bond ("CGCI") subsidiary of CGCI
Funds)
13. Putnam Investment Management, Marsh & McLennan The subadviser is an Publicly owned holding company
LLC Companies, Inc indirect wholly owned whose principal businesses are
(Growth & Income, Fundamental (Marsh") subsidiary of Marsh international insurance and
Growth and Health Sciences reinsurance brokerage,
Funds) employment benefit counseling
and investment management
Set forth below are the sub-advisory fees that John Hancock pays the subadvisers
for each Fund. THE BELOW FEES ARE PAID BY JOHN HANCOCK AND NOT BY THE FUNDS.
SUBADVISORY FEES PAYABLE BY JOHN HANCOCK,
FUND AS A PERCENTAGE OF EACH FUND'S AVERAGE DAILY NET ASSETS
------------------------- ---------------------------------------------------------------------------------------
Managed Assets managed by Independence Investment Associates, Inc. : .30% of first $500 million;
.2625% of next $500 million; and .2250% above $1 billion
Assets managed by Capital Guardian Trust Company : .50% of first $150 million;
.45% of next $150 million; .30% of next $200 million; and .25% above $500 million
Large Cap Growth, .30% of first $500 million; .2625% of next $500 million; and .225% above $1 billion
Growth & Income Assets managed by Independence Investment Associates, Inc. : .1875%
Assets managed by Putnam Investment Management, Inc. : .50% of first $150 million;
.45% of next $150 million; and .35% above $300 million
Active Bond .25% of first $100 million; .20% of next $150 million; .16% of next $250 million;
.125% of next $500 million; and .10% above $1 billion
Active Bond II .25% of first $100 million; .20% of next $150 million; .16% of next $250 million;
.125% of next $500 million; and .10% above $1 billion
Real Estate Equity Assets managed by Independence Investment Associates, Inc. : .30% of first
$300 million; .25% of next $500 million; and .20% above $800 million
Assets managed by Morgan Stanley Dean Witter Investment Management Inc.: .70% of
first $50 million; .60% of next $50 million; .50% of next $100 million; and .40% above
$200 million
Health Sciences .55% of first $250 million; and .50% above $250 million
Short-Term Bond .19% of first $250 million; .17% of next $250 million; and .15% above $500 million
Aggressive Balanced .325% of first $250 million; .275% of next $250 million; and .25% above $500 million
Mid Cap Blend .40% of first $250 million; .35% of next $250 million; and .30% above $500 million
39
SUBADVISORY FEES PAYABLE BY JOHN HANCOCK,
FUND--CONTINUED AS A PERCENTAGE OF EACH FUND'S AVERAGE DAILY NET ASSETS--CONTINUED
------------------------- ---------------------------------------------------------------------------------------
Small Cap Growth .50%
Equity Index .07% of first $75 million; .06% of next $50 million; .05% of next $275 million; and
.03% above $400 million
Large Cap Value .40%
Mid Cap Growth .60% of first $100 million; .55% of the next $400 million; and .45% above $500
million
Small/Mid Cap .60% of first $50 million; and .50% above $50 million
CORE
Large Cap Value .40% of first $50 million; .30% of next $150 million; and .25% above $200 million
CORE
Large Cap Value .40% of first $50 million; .30% of next $150 million; and .25% above $200 million
CORE II
International Equity .60% of first $50 million; .55% of next $150 million; and .50% above $200 million
Small Cap Equity .65% of first $150 million; .50% of next $150 million;.40% of next $200 million; and
.35% above $500 million
Small Cap Value .60%
Global Balanced .65% of first $150 million; .55% of next $150 million; .40 of next $200 million; and
.35% above $500 million
International Equity .125% of first $100 million; .10% of next $100 million; and .06% above $200 million
Index
International .75% of first $20 million; .60% of next $30 million; .50% of next $150 million; and
Opportunities .50% of all assets if the Fund reaches $200 million of net assets
Emerging Markets 1.10% of first $10 million; .90% of next $140 million; and .80% above $150 million.
Equity
Bond Index .08% of first $100 million; .06% of next $150 million; and .04% above $250 million
Global Bond .40% of first $150 million; .35% of next $150 million; .30% of next $200 million; and
.25% above $500 million
High Yield Bond .50% of first $100 million; .45% of next $100 million; and .35% above $200 million.
Small/Mid Cap .55% of first $100 million; .45% of next $100 million; and .40% above $200 million
Growth
Large/Mid Cap .60% of first $25 million; .50% of next $25 million; .40% of next $50 million; and
Value .30% above $100 million
40
SUBADVISORY FEES PAYABLE BY JOHN HANCOCK,
FUND--CONTINUED AS A PERCENTAGE OF EACH FUND'S AVERAGE DAILY NET ASSETS--CONTINUED
------------------------- ---------------------------------------------------------------------------------------
Large/Mid Cap .60% of first $25 million; .50% of next $25 million; .40% of next $50 million; and
Value II .30% above $100 million
Large Cap .75% of first $10 million; .625% of next $10 million; and .50% above $20 million
Aggressive Growth
Fundamental Growth .50% of first $250 million; and .45% above $250 million
Money Market .09% of first $250 million; .05% of next $500 million; and .02% above $750 million
41
Dollar Amounts of Advisory Fees, Subadvisory Fees, and Expense Reimbursements
Set out below are the dollar amounts of advisory fees that the Trust
paid to John Hancock and the subadvisory fees that John Hancock paid to
subadvisers for the past three years:
FUND INVESTMENT ADVISER SUBADVISERS*
---- ------------------------------------ --------------------------------------
2000 1999 1998 2000 1999 1998
---- ---- ---- ---- ---- ----
Aggressive Balanced....... $ 103,557 23,956 -- $ 50,277 11,118 --
Managed................... 12,069,024 10,789,553 9,825,708 7,988,141 8,001,416 7,369,096
Growth & Income........... 12,188,384 9,806,770 7,959,851 7,674,810 7,269,220 5,970,179
Equity Index.............. 682,347 448,044 270,965 252,856 181,624 134,418
Large Cap Value........... 1,222,357 1,087,807 746,229 811,804 710,068 497,498
Large Cap Value CORE...... 81,748 13,622 -- 43,874 6,990 --
Large Cap Value CORE II... 22,112 11,056
Large Cap Growth.......... 4,955,653 4,378,106 3,445,963 3,756,913 3,250,179 2,584,378
Large Cap Aggressive
Growth................. 214,471 38,421 -- 156,294 27,498 --
Large/Mid Cap Value....... 87,948 16,857 -- 55,933 10,259 --
Large/Mid Cap Value II.... 829,660 735,223 708,164 522,783 469,451 486,843
Mid Cap Growth............ 4,303,524 1,646,277 506,917 3,001,588 1,119,977 357,811
Real Estate Equity........ 946,388 835,184 1,071,226 473,629 413,496 535,611
Small/Mid Cap Growth...... 1,382,046 1,360,053 1,490,558 939,041 902,527 993,730
Fundamental Growth........ 249,227 17,491 -- 144,847 9,805 --
Mid Cap Blend............. 83,854 13,034 -- 44,970 6,703 --
Small/Mid Cap CORE........ 131.301 47,616 24,490 99,006 35,177 18,367
Small Cap Equity.......... 602,274 512,633 444,992 409,844 348,363 305,920
Small Cap Value........... 126,890 15,837 -- 87,204 10,454 --
Small Cap Growth.......... 1,965,285 732,594 420,449 1.319,650 478,916 280,306
Global Balanced........... 261,293 253,044 235,511 149,889 147,136 138,538
International Equity Index 354,066 313,649 503,992 240,625 210,822 339,357
International Equity...... 139,438 35,992 -- 84,469 20,788 --
International
Opportunities.......... 819,520 582,128 440,905 589,537 409,561 821,925
Emerging Markets 408,779
Equity................. 523,867 182,265 67,915 145,114 57,466
Short-Term Bond........... 220,826 216,170 192,680 114,279 135,464 122,022
Bond Index................ 72,662 48,433 26,490 39,093 25,498 14,128
Active Bond............... 2,573,480 2,214,912 2,127,466 1,534,969 1,643,765 1,595,666
Active Bond II............ 18,261 7,826
Global Bond............... 467,803 488,070 328,177 290,135 306,570 211,575
High Yield Bond........... 159,282 111,177 49,428 123,619 84,425 38,023
Money Market.............. 1,038,533 965,427 748,405 1,038,533 953,183 --
* Paying these fees to the sub-advisers is solely the responsibility of John
Hancock and not the Trust.
42
Under the investment advisory agreements, for any fiscal year in which
the normal operating costs and expenses of any Fund, exclusive of the investment
advisory fee, interest, brokerage commissions, taxes and extraordinary expenses
outside the control of John Hancock exceed 0.10% (.25% prior to April 23, 1999)
of that Fund's average daily net assets, John Hancock will reimburse that Fund
in an amount equal to such excess. These reimbursements have been as follows
for the past three years (rounded to the nearest $1,000 for 1998):
FUND 2000 1999 1998
---- ---- ---- ----
Aggressive Balanced................. $ 17,933 $ 6,609 $ --
Equity Index........................ -- 275,336 543,000
Large Cap Value..................... -- -- --
Large Cap Value CORE................ 26,638 5,824 --
Large Cap Aggressive Growth......... 11,479 3,504 --
Large/Mid Cap Value................. 28,895 6,512 --
Mid Cap Growth...................... -- -- 15,000
Small/Mid Cap Growth................ -- 1,790 --
Small Cap Equity.................... 23,198 6,224 17,000
Small Cap Value..................... 32,214 9,254 --
Small Cap Growth.................... -- 27,000
Global Balanced..................... 85,676 91,146 199,000
International Equity Index.......... 195,833 21,900 124,000
International Equity................ 92,396 21,901 --
International Opportunities......... 154,310 92,017 145,000
Global Bond......................... 63,735 1,445 31,000
Fundamental Growth.................. 10,455 2,888 --
Mid Cap Blend....................... 21,030 6,011 --
Small/Mid Cap CORE.................. 53,769 77,179 107,000
Emerging Markets Equity............. 499,569 294,354 111,000
Bond Index.......................... 11,335 17,185 56,000
High Yield Bond..................... 29,620 42,314 85,000
Active Bond......................... 201,827 -- --
43
ARRANGEMENTS WITH OTHER SERVICE PROVIDERS
TO THE TRUST
UNDERWRITING AND INDEMNITY AGREEMENT
Pursuant to an Underwriting and Indemnity Agreement, Signator Investors,
Inc. ("Signator") serves as the Trust's principal underwriter, and John Hancock
provides certain indemnities to the Trust and its Trustees. Neither Signator nor
John Hancock receives any additional compensation from the Trust for the
services and indemnities they provide pursuant to the Underwriting and Indemnity
Agreement. The offering of the Trust's shares through Signator is a continuous
offering on a "best efforts" basis. Signator is a wholly-owned subsidiary of
John Hancock and is located at 197 Clarendon Street, Boston, MA 02117.
CUSTODY OF THE TRUST'S ASSETS
State Street Bank and Trust Company ("State Street Bank") is the primary
custodian of the assets of all Funds. State Street Bank's principal business
address is 225 Franklin Street, Boston MA 02110. The primary custodian's duties
include safeguarding and controlling the Trust's cash and investments, handling
the receipt and delivery of securities, and collecting interest and dividends on
the Trust's investments. Fund securities purchased in the United States are
maintained in the custody of State Street Bank, although such securities may be
deposited in the book-entry system of the Federal Reserve System, with
Depository Trust Company, or with other qualified domestic book-entry systems or
depositories. Also, pursuant to its agreement with the Trust, State Street Bank
provides certain accounting and recordkeeping services to the Trust and
generally values the Trust's assets by computing each Fund's net asset value
each day. The Trust compensates State Street Bank for these functions through
the payment of an annual custody asset fee of .01% of the total net assets of
the Trust, allocated to each Fund based on the percentage of that Fund's total
net assets to the total net assets of the Trust; miscellaneous transaction
charges ranging from $7.00 to $25.00; global asset and transaction fees that
vary by the country in which a Fund's assets are held or traded; a monthly
accounting fee charge that is allocated to each Fund based on the percentage of
that Fund's total net assets to the total net assets of the Trust; valuation and
monthly quote charge; special service fees for activities of a non-recurring
nature; and reimbursement of specified out-of-pocket expenses.
Foreign securities are generally held through subcustodian banks and
depositories around the world with whom State Street Bank has relationships.
In some cases, Funds whose securities are held in this manner may be exposed to
greater risks of loss. This is because the soundness of such foreign entities,
as well as foreign regulatory practices and procedures, may provide less
protection to security holders than is available in the U.S.
In certain circumstances, brokers may have access to assets that a Fund
posts as "margin" in connection with futures and options transactions. In the
event of a broker's insolvency or bankruptcy, a Fund could experience a delay or
incur costs in recovering such assets or might recover less than the full amount
due. Also the value of such assets could decline by the time the Trust could
effect such recovery.
If on any day a Fund experiences net realized or unrealized gains with
respect to financial futures contracts held through a given broker, it will be
entitled immediately to receive from the broker the net amount of such gains.
The Trust will request payment of such amounts promptly after notification by
the broker that such amounts are due. Thereupon, these assets will be deposited
in the Trust's general or segregated account with its primary custodian, as
appropriate.
SUBADMINISTRATION AGREEMENT WITH STATE STREET BANK
Pursuant to a subadministration agreement, with the Trust, State Street
Bank also provides assistance to John Hancock and the subadvisers in computing
total return information for the Trust and in monitoring each Fund's compliance
with the Fund's investment objectives and restrictions, as well as compliance
with certain other applicable legal requirements, . The Trust compensates State
Street Bank for these services through payment of an annual fee that accrues
daily and is billed monthly in arrears. The annual fee is based on the average
net assets of the Trust and is 0.012% of the first $1 billion of average net
assets, 0.0075% of the next $1 of average net assets,
44
and 0.0025% of average net assets after that. Each Fund is allocated the greater
of a minimum monthly Fund fee or the basis point annual fee, based on the pro-
rata total net asset value of that Fund. The minimum monthly Fund fee is phased-
in for new Funds at the rate of 1/12 in month one, 2/12th in month two,
increasing incrementally per month until the full monthly minimum is in effect
in month 12 ($1,333).
INDEPENDENT AUDITORS
Ernst & Young LLP, 200 Clarendon Street, Boston, Massachusetts, are the
independent auditors of the Trust. Ernst & Young audits the financial statements
of the Trust, prepares the Trust's tax returns, and renders other advice to the
Trust concerning accounting and tax matters. Ernst & Young also meets
periodically with the Trust's Board and with the Audit Committee of the Board to
discuss matters within the scope of Ernst & Young's activities with respect to
the Trust.
PORTFOLIO TRANSACTIONS AND BROKERAGE ALLOCATION
The Funds pay brokers' commissions, transfer taxes, and other fees relating
to their specific portfolio transactions. (Investments in debt securities are,
however, generally traded on a "net" basis through issuers or dealers acting for
their own account as principals and not as brokers. Therefore, no brokerage
commissions are payable on most such transactions, although the price to the
Trust usually reflects a dealer "spread" or "mark-up.")
AMOUNTS OF BROKERAGE PAID
Brokerage commissions paid by the Funds were as follows for the past three
years:
FUND 2000 1999 1998
---- ---- ---- ----
Aggressive Balanced............. $ 12,367 $ 4,424 $ --
Managed......................... 2,752,720 2,385,643 1,843,929
Growth & Income................. 5,189,868 4,741,953 2,673,170
Equity Index.................... 64,982 61,865 33,797
Large Cap Value................. 155,165 110,393 63,944
Large Cap Value CORE............ 13,236 3,240 --
Large Cap Value CORE II......... 5,471 -- --
Large Cap Growth................ 1,695,781 1,389,454 815,587
Large Cap Aggressive Growth..... 33,476 11,885 --
Large/Mid Cap Value............. 19,805 6,876 --
Large/Mid Cap Value II.......... 703,137 383,634 495,154
Mid Cap Growth.................. 486,217 245,913 146,033
Real Estate Equity.............. 341,413 122,021 177,186
Fundamental Growth.............. 40,554 3,082 --
Mid Cap Blend................... 27,104 5,586 --
Small/Mid Cap CORE.............. 29,151 12,371 7,225
Small/Mid Cap Growth............ 214,360 621,068 893,945
Small Cap Equity................ 325,733 284,381 176,549
Small Cap Value................. 142,364 21,848 --
Small Cap Growth................ 236,981 146,206 103,248
Global Balanced................. 76,975 47,678 51,205
International Equity Index...... 87,614 133,746 730,529
International Equity............ 36,616 16,561 --
International Opportunities..... 277,851 74,940 117,083
Emerging Markets Equity......... 235,636 189,025 10,018
Bond Index...................... 1,770 598 --
Global Bond..................... 5,910 -- --
High Yield Bond................. -- 200 --
45
HOW BROKERS AND DEALERS ARE SELECTED
Orders for the purchase and sale of Fund portfolio investments are placed
by the respective subadvisers to the Funds. All of these subadvisers place
orders in such manner as, in their opinion, will offer the best overall price
and execution of each transaction. In seeking the best price and execution for
equity securities traded only in the over-the-counter market, they normally deal
directly with the principal market-makers. It is not the practice of sub-
advisers to seek the lowest available commission if, in their reasonable
judgement, there is a material risk that the total cost or proceeds from the
transaction might be less favorable than what may be obtainable elsewhere.
The subadvisers are governed in the selection of brokers and dealers and
the negotiation of brokerage commission rates (or the payment of net prices in
the case of debt securities) by the reliability and quality of the broker's or
dealer's services. Although some weight is given to the availability and value
of research and statistical assistance (discussed immediately below) furnished
by the broker or dealer to the subadviser, it is not always possible to place a
dollar value on such information and services. Because it is only supplementary
to the subadvisers' own research efforts, the receipt of research information
and statistical assistance is not expected to reduce their expenses measurably.
RESEARCH AND STATISTICAL SERVICES FURNISHED BY BROKERS AND DEALERS
Research and statistical assistance typically furnished by brokers or
dealers includes, but is not limited to, analysts' reports on companies and
industries, market forecasts, and economic analyses. Brokers or dealers may also
provide reports on pertinent federal and state legislative developments and
changes in accounting practices; direct access by telephone or meetings with
leading research analysts throughout the financial community, corporate
management personnel, industry experts, leading economists and government
officials; comparative performance and evaluation and technical performance
measurement services; portfolio optimization software; economic advice;
quotation services; and services from recognized experts on investment matters
of particular interest to the subadviser. In addition, the foregoing services
may comprise the use of or be delivered by computer systems whose software and
hardware components may be provided to the subadviser as part of the services.
In any case in which the foregoing systems can be used for both research and
non-research purposes, the subadviser will make an appropriate allocation of
those uses and will pay for any non-research portion of the systems with its own
funds.
Research and statistical services furnished by brokers and dealers handling
the Funds' transactions may be used by the subadvisers for the benefit of all of
the accounts managed by them, and not all of such research and statistical
services may be used by the subadvisers in connection with the Funds.
RELATIONSHIP BETWEEN BROKERAGE COMMISSIONS AND RESEARCH AND STATISTICAL SERVICES
FURNISHED BY BROKERS AND DEALERS
The subadvisers or the Funds will not at any time make a commitment
pursuant to an agreement with a broker because of research services provided.
Nor, except as set forth below, will John Hancock or the subadvisers direct
brokerage upon any prescribed basis to a broker because of research services
provided. The subadviser for the Mid Cap Growth Fund may have an internal
procedure for allocating transactions, in a manner consistent with its execution
policy, to brokers that it has identified as providing superior executions,
research, or research related products or services which benefit its advisory
clients, including the Fund.
Evaluations of the overall reasonableness of any broker's commissions are
made by the subadvisers' traders for the Funds on the basis of their experience
and judgment. To the extent permitted by Section 28(e) of the Securities
Exchange Act of 1934, such traders are authorized to pay a brokerage commission
on a particular transaction in excess of what another broker might have charged
in recognition of the value of the broker's brokerage and research services
46
BROKERAGE TRANSACTIONS IN FOREIGN MARKETS
Brokerage transactions in securities of companies domiciled in countries
other than the United States are anticipated to be normally conducted on the
stock exchanges or other markets of those countries in which the particular
security is traded. Fixed commissions on foreign stock exchange transactions are
generally higher than negotiated commissions available in the United States.
Moreover, there is generally less government supervision and regulation of
foreign stock exchanges and broker-dealers than in the United States. Settlement
periods in non-U.S. markets may differ from the normal settlement period in the
United States.
SIMULTANEOUS TRANSACTIONS WITH OTHER ACCOUNTS
The subadvisers also perform investment advisory services for a number of
other accounts and clients, none of which is given preference over the Trust in
allocating investment opportunities. When opportunities occur which are
consistent with the investment objective of more than one account, it is the
policy of each subadviser to avoid favoring any one account over another.
Accordingly, investment opportunities in such cases are allocated in a manner
deemed equitable by the subadvisers to the particular accounts involved. The
allocation may be based, for example, on such factors as the accounts'
respective investment objectives and then current investment and cash positions.
Subject to these requirements, Trust orders may be combined with orders of other
accounts or clients advised by any of the subadvisers at prices which are
approximately averaged.
USE OF BROKERS WHO ARE AFFILIATED WITH A SUBADVISER
A Fund may place portfolio transactions through certain brokers who are
affiliated with the Fund's subadviser. The Trust has implemented special
procedures governing the circumstances of these transactions. In addition to
complying with any applicable provisions of the Trust's procedures, these
transactions must comply with all applicable legal requirements, including,
where applicable, Rule 17e-1 under the Investment Company Act. Among other
things, that rule requires the commissions or other compensation paid to the
affiliated broker to be reasonable and fair compared to those in similar
transactions between unrelated parties.
47
Set forth below is information about transactions by each Fund with affiliated
brokers in reliance on Rule 17e-1 for each of the past three years:
AMOUNT OF COMMISSIONS
NAME NATURE OF BROKER'S PAID BY FUND
OF AFFILIATION WITH ----------------------------------------
FUND AFFILIATED BROKER FUND'S SUB-ADVISER 2000 1999 1998
-------------------------- --------------------- --------------------------- ---- ---- ----
International Ord Minnett Group Wholly-owned subsidiary of $ 0 $ 34 $ 263
Opportunities Ltd. sub-adviser's parent
International Jardine Fleming & Co. Wholly-owned subsidiary of $ 518 $ 710 $ 311
Opportunities sub-adviser's parent
International Robert Fleming Wholly-owned subsidiary of $ 527 $ 1,166 $ 1,018
Opportunities Securities, Ltd. sub-adviser's parent
International Jardine Fleming & Co. Wholly-owned subsidiary of $4,485 $ 0 $ 0
Opportunities II sub-adviser's parent
International Robert Fleming Wholly-owned subsidiary of $ 77 $ 0 $ 0
Opportunities II Securities, Ltd sub-adviser's parent
Large/Mid Cap Value II Neuberger Berman, Dual operating division of $ 890 $80,598 $366,985
LLC * sub-adviser's parent
Large Cap Value CORE Goldman, Sachs & Co. Dual operating division of $ 0 $ 96 $ 0
sub-adviser's parent
Large Cap Value Neuberger Berman Affiliated broker of Trust $ 190 $ 0 $ 0
LLC * affiliated sub-adviser
Small/Mid Cap CORE Goldman, Sachs & Co. Dual operating division of $ 753 $ 120 $ 0
parent of sub-adviser
International Equity Goldman, Sachs & Co. Dual operating division of $ 128 $ 0 $ 0
parent of sub-adviser
Emerging Markets Equity Morgan Stanley Asia Wholly-owned subsidiary of $1,785 $ 2,779 $ 0
Limited sub-adviser's parent
Emerging Markets Equity Morgan Stanley Wholly-owned subsidiary of $ 880 $ 3,276 $ 0
International Limited sub-adviser's parent
* Neuberger Berman, LLC is an affiliate of Neuberger & Berman, LLC, which is no
longer the sub-adviser of the Large/Mid Cap Value II Fund.
For 2000, the total dollar amount of such transactions through affiliated
brokers as a percentage of all brokerage-type transactions was 5.13% for the
International Opportunities Fund, 4.89% for the International Opportunities II
Fund, 3.89% for the Large/Mid Cap Value II Fund, 0.82% for the Large Cap Value
Fund, 1.84% for the International Equity Fund, 2.26% for the Small/Mid Cap CORE
Fund, and 1.82% of the Emerging Markets Equity Fund. For 2000, the total
brokerage commissions on such transactions through affiliated brokers, as a
percentage of commissions paid on all brokerage-type transactions was 0.57% for
the International Opportunities Fund, 4.88 for the International Opportunities
II Fund, 0.13% for the Large/Mid Cap Value II Fund, 0.12% for the Large Cap
Value Fund, 2.64% for the Small/Mid Cap CORE Fund, 0.38% for the International
Equity Fund, and 1.13% for the Emerging Markets Equity Fund.
48
CODES OF ETHICS
Employees of John Hancock Life Insurance Company, the Trust, and the sub-
advisers to the Trust and officers and Trustees of the Trust are subject to
restrictions on engaging in personal securities transactions. These restrictions
are set forth in the John Hancock Insider Information Policy and Procedures, the
Variable Series Trust Code of Ethics, and the Codes of Ethics of the sub-
advisers to the various funds of the Trust ("Sub-Advisers' Codes of Ethics"),
(combined, "Codes"). The Codes, in accordance with rule 17j-1 of the Investment
Company Act of 1940, as amended, contain provisions and requirements designed to
identify and address certain conflicts of interest between personal investment
activities of employees of the adviser and sub-advisers to the funds and the
interests of the funds. These Codes do not prohibit personnel from investing in
securities that may be purchased or held by the funds within the Trust. However,
the Codes, consistent with standards recommended by the Investment Company
Institute's Advisory Group on Personal Investing and requirements established by
rule 17j-1, among other things, prohibit personal securities investments without
pre-clearance for certain employees, impose time periods during which personal
transactions may not be made in certain securities by employees with access to
investment information, and require the timely submission of broker
confirmations and quarterly reporting of personal securities transactions.
Additional restrictions apply to portfolio managers, traders, research analysts
and others involved in the investment advisory process. The Variable Series
Trust Code of Ethics incorporates and applies its restrictions to officers and
Trustees of the Trust who are affiliated with John Hancock Life Insurance
Company. The Variable Series Trust Code of Ethics does not prohibit unaffiliated
officers and Trustees from investing in securities that may be held by the
Trust; however, the Variable Series Trust Code of Ethics regulates the personal
securities transactions of unaffiliated Trustees of the Trust, including
limiting the time periods during which they may personally buy and sell certain
securities about which they may receive information. The Trust's Trustees, in
compliance with rule 17j-1, approve the Variable Series Trust's Codes of Ethics
and the Sub-Advisers' Codes of Ethics and are required to approve any material
changes to the Variable Series Trust Code of Ethics as well as to the Sub-
Advisers' Codes of Ethics. The Trustees also provide continuing oversight of
personal investment policies and annually evaluate the implementation and
effectiveness of the Codes. The Codes are on public file with, and are
available from, the Securities and Exchange Commission.
FEATURES OF THE TRUST'S SHARES
The shares of beneficial interest of the Trust currently are divided into
33 series, each corresponding to one of the Trust's 33 Funds. The Trust has the
right to establish additional series and issue additional shares without the
consent of its shareholders.
If the holders of variable annuity contracts and variable life insurance
policies show minimal interest in any Fund, the Trust's Board of Trustees, by
majority vote, may eliminate the Fund or substitute shares of another investment
company. Any such action by the Board would be subject to compliance with any
requirements for governmental approvals or exemptions or for shareholder
approval. The holders of variable annuity contracts and variable life insurance
policies participating in any such Fund will be notified in writing of the
Trust's intention to eliminate the Fund and given 30 days to transfer amounts
from such Fund to other Funds without incurring any transaction fee. Amounts not
transferred or withdrawn would automatically be transferred, at the discretion
of the Fund's management.
The assets received by the Trust for the issuance or sale of shares of each
Fund and all income, earnings, profits, and proceeds thereof are specifically
allocated to that Fund. They constitute the underlying assets of each Fund, are
segregated on the books of the Trust, and are to be charged with the expenses of
such Fund. Any assets which are not clearly allocable to a particular Fund or
Funds are allocated in a manner determined by the Board of Trustees. Accrued
liabilities which are not clearly allocable to one or more Funds would generally
be allocated among the Funds in proportion to their relative net assets before
adjustment for such unallocated liabilities.
Each issued and outstanding share in a Fund is entitled to participate
equally in dividends and distributions declared with respect to such Fund and in
the net assets of such Fund upon liquidation or dissolution remaining after
satisfaction of outstanding liabilities.
49
A dividend from the net investment income of the Money Market Fund will be
declared and distributed daily. Dividends from net investment income of the
other Funds will be declared and distributed monthly. The Trust will distribute
all of its net realized capital gains annually. Dividends and capital gains
distributions will normally be reinvested in additional full or fractional
shares of the Fund to which they relate and will be appropriately credited to
investment performance under the variable life insurance policies and variable
annuity contracts participating in that Fund.
The shares of each Fund, when issued, will be fully paid and non-
assessable, and will have no preference, preemptive, exchange or similar rights.
Shares do not have cumulative voting rights.
SHAREHOLDER MEETINGS AND VOTING RIGHTS
Under the Trust's Declaration of Trust, the Trust is not required to hold
an annual shareholders' meeting. Normally, for example, there will be no
shareholders meetings for the purpose of electing Trustees.
In addition, it is expected that the Trustees generally will elect their
own successors and appoint Trustees to fill any vacancy, so long as, after
filling the vacancy, at least two-thirds of the Trustees then in office have
been elected by the shareholders.
Notwithstanding the above if at any time less than a majority of Trustees
in office have been elected by the shareholders, the Trustees must call a
special shareholders' meeting promptly. Also the Trustees will promptly call a
meeting of shareholders for the purpose of voting upon the question of removal
of any Trustee or all of the Trustees, if requested in writing to do so by
holders of 10% or more of the outstanding shares. In this regard, whenever ten
or more shareholders who have been such for at least six months and who hold in
the aggregate either shares having a net asset value of at least $25,000 or at
least 1% of the outstanding shares, whichever is less, apply to the Trustees in
writing stating that they wish to communicate with other shareholders with a
view to obtaining signatures to a request for a shareholders' meeting, for
consideration of the removal of any or all of the Trustees and accompanied by
the material which they wish to transmit, the Trustees will within five business
days after receipt either afford to such applicants access to the Trust's
shareholder list or inform such applicants as to the approximate number of
shareholders of record, and the approximate cost of mailing the material. If the
Trustees elect the latter, the Trustees, upon written request of such
applicants, accompanied by the material to be mailed and the reasonable expenses
of mailing, shall promptly mail such material to all shareholders of record,
unless within five business days the Trustees shall mail to such applicants and
file with the SEC, together with a copy of the material to be mailed, a written
statement signed by at least a majority of the Trustees to the effect that, in
their opinion, either such material is misleading or in violation of applicable
law and specifying the basis of such opinion.
At any shareholders' meeting, all shares of the Trust of whatever class are
entitled to one vote, and the votes of all classes are cast on an aggregate
basis, except on matters where the interests of the Funds differ. Where the
interests of the Funds differ, the voting is on a Fund-by-Fund basis. Approval
or disapproval by the shareholders in one Fund on such a matter would not
generally be a prerequisite of approval or disapproval by shareholders in
another Fund; and shareholders in a Fund not affected by a matter generally
would not be entitled to vote on that matter. Examples of matters which would
require a Fund-by-Fund vote are changes in the fundamental investment policy of
a particular Fund and approval of investment management or sub-investment
management agreements.
50
SALES AND REDEMPTIONS OF FUND SHARES
"SEED MONEY" SHARES
Typically, when a new Fund is added to the Trust, John Hancock (or one
of its affiliates) initially purchases a substantial amount of that Fund's
shares to provide the new fund with a reasonable asset base with which to
commence operations. For example, the most recent such contributions of "seed
money" have been as follows:
"SEED MONEY" DATE
HARES PURCHASED BY OF
FUND JOHN HANCOCK PURCHASE
---- ------------ -------
Aggressive Balanced $10,000,000 8/31/99
Equity Index 15,000,000 5/1/98
Large Cap Value CORE 5,000,000 8/31/99
Large Cap Value CORE II 5,000,000 6/30/00
Large Cap Aggressive Growth 10,000,000 8/31/99
Large/Mid Cap Value 5,000,000 8/31/99
Fundamental Growth 5,000,000 8/31/99
Mid Cap Blend 5,000,000 8/31/99
Small/Mid Cap CORE 5,000,000 5/1/98
Small Cap Value 5,000,000 8/31/99
Health Sciences 20,000,000 5/1/01
International Opportunities 15,000,000 5/1/98
Global Balanced 20,000,000 5/1/96
International Equity 10,000,000 8/31/99
Emerging Markets Equity 10,000,000 5/1/98
Bond Index 25,000,000 5/1/98
High Yield Bond 10,000,000 5/1/98
Active Bond II 5,000,000 6/30/00
John Hancock (or its affiliate) may redeem these shares (and thus withdraw
its seed money investment) at some time. However, before withdrawing any part of
their interests in any Fund, John Hancock (or its affiliate) will consider any
possible adverse impact the withdrawal might have on that Fund.
Purchases and redemptions of seed money shares are made at the applicable
Fund's net asset value per share (with no additions or deductions for charges)
next computed after the purchase or redemption order is placed.
SHARES SOLD AND REDEEMED IN CONNECTION WITH TRANSACTIONS UNDER VARIABLE ANNUITY
CONTRACTS AND VARIABLE LIFE INSURANCE POLICIES
Fund shares are sold at their net asset value as next determined after
receipt of net premiums by the Separate Account, without the addition of any
selling commission or sales load.
Shares are redeemed at their net asset value as next determined after
receipt of net surrender requests by the Separate Account. No fee is charged on
redemption. Redemption payments will usually be paid within seven days after
receipt of the redemption request, except that the right of redemption may be
suspended or payments postponed whenever permitted by applicable law and
regulations. Redemptions are normally made in cash, but the Trust reserves the
right, at its discretion, to make full or partial payment by assignment to the
appropriate Separate Account of portfolio securities at their value used in
determining the redemption price. In such cases, the Separate Account would
incur brokerage costs should it wish to liquidate these portfolio securities.
Trust shares are also sold and redeemed as a result of transfer requests,
loans, loan repayments, and similar Separate Account transactions, in each case
without any sales load or commission or at the net asset value per share
computed for the day as of which such Separate Account transactions are
effected.
51
COMPUTING THE FUNDS' NET ASSET VALUE
The net asset value per share of each Fund is determined once daily, after
the declaration of dividends, if any, as of 4:00 p.m., New York City time, on
each business day the New York Stock Exchange ("Exchange") is open for regular
trading. For this purpose, however, certain derivative instruments may be valued
using prices as late as 4:15 p.m.
The net asset value per share of each Fund is determined by adding the
value of all portfolio securities and other assets, deducting all portfolio
liabilities, and dividing by the number of outstanding shares. All Trust
expenses will be accrued daily for this purpose.
Short-term investments with a remaining maturity of 60 days or less, and
all investments of the Money Market Fund, are valued at "amortized cost," which
approximates market value. This involves valuing a security at its cost and
thereafter assuming a constant amortization to maturity of any discount or
premium, regardless of the impact of fluctuating interest rates. While this
method provides certainty in valuation, it may result in periods during which
the value of an instrument, as determined by amortized cost, is higher or lower
than the price the Fund would receive upon the sale of the instrument.
The Board of Trustees has established procedures designed to stabilize the
Money Market Fund's price per share, as computed for the purpose of sales and
redemptions, at $1. There can be no assurance, however, that the Fund will at
all times be able to maintain a constant $1 net asset value per share. Such
procedures include review of the Fund's holdings at such intervals as is deemed
appropriate to determine whether the Fund's net asset value, calculated by using
available market quotations, deviates from $1 per share and, if so, whether such
deviation may result in material dilution, or is otherwise unfair to existing
shareholders. In the event that it is determined that such a deviation exists,
the Board of Trustees will take such corrective action as it regards as
necessary and appropriate. Such action may cause losses or gains to be recorded
for the Fund, including decreases or increases in the Fund's net asset value per
share.
Securities and covered call and put options that are listed on a stock
exchange are normally valued at the closing sales price. If there were no sales
during the day, they are normally valued at the last previous sale or bid price
reported, as are equity securities that are traded in the over-the-counter
market.
Non-exchange traded debt securities (other than certain short-term
investments) are valued on the basis of valuations furnished by a pricing
service which uses electronic data processing techniques, without exclusive
reliance upon quoted prices.
Any other security for which market quotations are not readily available,
and any other property for which valuation is not otherwise available, is valued
at fair value as determined in good faith by, or under the direction of, the
Board of Trustees.
Financial futures contracts, options thereon and options on stock indexes
are valued at the last trade price of the day. In the absence of a trade on a
given day, the value generally is used which is established by the exchange on
which the instrument is traded.
Trading in securities on European and Far Eastern securities exchanges and
over-the-counter markets is normally completed at various times before the close
of business on each day on which the New York Stock Exchange is open. The values
of such securities used in computing net asset value per share are normally
determined as of such times. Trading of these securities may not take place on
every New York Stock Exchange business day and may take place on days which are
not business days in New York. The Trust calculates net asset value per share as
of the close of regular trading on the New York Stock Exchange on each day on
which that exchange is open. Therefore, such calculation does not take place
contemporaneously with the determination of the prices of many of the Funds'
securities used in such calculation. If events affecting the value of such
securities occur between the time when their price is determined and the time as
of which the Fund's net asset value is calculated, such securities may be valued
at fair value by or under the direction of the Board of Trustees.
52
TAXES
The Trust intends that each Fund qualify as a regulated investment company
under Subchapter M of the Internal Revenue Code ("Code"). This requires that
each Fund comply with certain requirements as to the nature of its income and
amounts of dividends and other distributions it pays. Also, in order to qualify
under Subchapter M, at the end of each quarter of a Fund's taxable year, (i) at
least 50% of the market value of the Fund's assets must be represented by cash
and cash items, U.S. Government securities, securities of other regulated
investment companies, and other securities, with such other securities limited,
in respect of any one issuer, to an amount that does not exceed 10% of the
voting securities of such issuer or 5% of the value of the Fund's total assets;
and (ii) not more than 25% of the value of its assets may be invested in the
securities (other than U.S. Government securities and securities of other RICs)
of any one issuer or two or more issuers which the Fund controls and which are
engaged in the same, similar or related trades or businesses.
The Trust also intends that each Fund comply with certain other
diversification requirements, promulgated under Section 817(h) of the Code.
Under these requirements, no more than 55% of the total value of the assets of
each Fund may be represented by any one investment, no more than 70% by any two
investments, no more than 80% by three investments and no more than 90% by four
investments. Generally, for these purposes, all securities of the same issuer
are treated as one investment. In the context of U.S. Government securities
(including any security that is issued, guaranteed or insured by the United
States or an instrumentality of the United States), each U.S. Government agency
or instrumentality is treated as a separate issuer.
Assuming the Funds qualify as regulated investment companies under
Subchapter M, they will not owe any income taxes. On the other hand, if a Fund
fails to qualify under Subchapter M, it may incur income tax liabilities, which
will negatively affect its investment performance.
Also, qualification under Subchapter M, as well as compliance with the
Section 817(h) diversification requirements, (among other things) are necessary
to secure the tax treatment intended for holders of variable annuity contracts
and variable life insurance policies that are supported by the Trust. Therefore,
any such failure to qualify under Subchapter M or to meet the diversification
standards under Section 817(h) could have serious adverse consequences for such
investors.
For a discussion of these and other tax implications of owning a variable
annuity contract or a variable life insurance policy for which the Fund serves
as the investment medium, please refer to the Prospectus for such contract or
policy attached at the front of this Prospectus.
Those Funds that invest substantial amounts of their assets in foreign
securities may be able to make an election to pass through to the insurance
company issuing the variable annuity contract or a variable life insurance
policy any taxes withheld by foreign taxing jurisdictions on foreign source
income. Such an election will result in additional taxable income and income tax
to the insurance company. The amount of additional income tax, however, may be
more than offset by credits for the foreign taxes withheld, which are also
passed through.
INFORMATION ABOUT FUND PERFORMANCE
HOW MONEY MARKET FUND YIELDS ARE CALCULATED
The Money Market Fund may advertise investment performance figures,
including its current yield and its effective yield.
The Money Market Fund's yield is its current investment income, expressed
in annualized terms. The current yield is based on a specified seven-calendar-
day period. It is computed by (1) determining the net change (exclusive of
capital changes) in the value of a hypothetical pre-existing account having a
balance of one share at the beginning of the period, (2) dividing the net change
in account value by the value of the account at the beginning of the base period
to get the base period return, then (3) multiplying the base period return by
52.15 (365 divided by 7). The resulting yield figure is carried to the nearest
hundredth of one percent.
53
The calculations include the value of additional shares purchased with any
dividends paid on the original share and the value of dividends declared on both
the original share and any such additional shares. The capital changes excluded
from the calculation are realized capital gains and losses from the sale of
securities and unrealized appreciation and depreciation.
Compound (effective) yield for the Fund will be computed by dividing the
seven-day annualized yield (determined as above) by 365, adding 1 to the
quotient, raising the sum to the 365th power, and subtracting 1 from the result.
For the seven-day period ending December 31, 2000, the Money Market Fund's
current yield was 6.38%; its effective yield was 6.58%.
The Fund's yield will fluctuate depending upon market conditions, the type,
quality, and maturity of the instruments in the Fund, and its expenses.
CHARGES UNDER VARIABLE LIFE INSURANCE AND VARIABLE ANNUITY POLICIES
Yield and total return quotations do not reflect any charges imposed on any
Separate Account or otherwise imposed pursuant to the variable life insurance
policies and variable annuity contracts that are supported by the Funds. (Those
charges are discussed in the prospectus for such policies or contracts.)
Therefore, the yield or total return of any Fund is not comparable to that of a
publicly available fund. Nor should yield or total return quotations be
considered representative of the Fund's yield or total return in any future
period.
LEGAL MATTERS
The law firm of Foley & Lardner of Washington, D.C., advises the Trust on
certain legal matters relating to the Federal securities laws.
REPORTS TO CONTRACTHOLDERS
Annual and semi-annual reports containing financial statements of the
Trust, as well as any materials soliciting voting instructions for Trust shares,
will be sent to variable life insurance and annuity contractowners having an
interest in the Trust.
54
APPENDIX A
----------
CORPORATE BOND RATINGS
Moody's Investors Service, Inc., describes its ratings for corporate bonds
as follows:
. Bonds which are rated Aaa are judged to be of the best quality. They
carry the smallest degree of investment risk and are generally referred
to as "gilt edge." Interest payments are protected by a large or by an
exceptionally stable margin, and principal is secure. While the various
protective elements are likely to change, such changes as can be
visualized are most unlikely to impair the fundamentally strong position
of such issues.
. Bonds which are rated Aa are judged to be of high quality by all
standards. Together with the Aaa group they comprise what are generally
known as high grade bonds. They are rated lower than the best bonds
because margins of protection may not be as large as in Aaa securities,
or fluctuation of protection elements may be of greater amplitude, or
there may be other elements present which make the long term risks
appear somewhat larger than in Aaa securities.
. Bonds which are rated A possess many favorable investment attributes and
are to be considered as upper medium grade obligations. Factors giving
security to principal and interest are considered adequate but elements
may be present which suggest a susceptibility to impairment some time in
the future.
. Bonds which are rated Baa are considered as medium grade obligations,
i.e., they are neither highly protected nor poorly secured. Interest
payments and principal security appear adequate for the present but
certain protective elements may be lacking or may be characteristically
unreliable over any great length of time. Such bonds lack outstanding
investment characteristics and in fact have speculative characteristics
as well.
. Bonds which are rated Ba have speculative elements and their future
cannot be considered as well assured. The protection of interest and
principal payments may be very moderate and thereby not well safeguarded
during both good and bad times over the future. Bonds in this class are
characterized by uncertainty of position.
. Bonds which are rated B generally lack characteristics of a desirable
investment; assurance of interest and principal payments or of
maintenance of other terms of the contract over any long period of time
may be small.
. Bonds which are rated Caa are of poor standing. Issues may be in default
or there may be present elements of danger with respect to principal or
interest.
. Bonds which are rated Ca are speculative in a high degree. They are
often in default or have other marked shortcomings.
. Bonds which are rated C are the lowest rated class of bonds. They can be
regarded as having extremely poor prospects of ever attaining any real
investment standing.
Standard & Poor's Corporation describes its ratings for corporate bonds as
follows:
. AAA -- This is the highest rating assigned by Standard & Poor's to a debt
obligation and indicates an extremely strong capacity to pay principal and
interest.
55
. AA -- Bonds rated AA also qualify as high-quality obligations. Capacity
to pay principal and interest is very strong, and in the majority of instances,
they differ from AAA issues only in small degree.
. A -- Bonds rated A have a strong capacity to pay principal and interest,
although they are somewhat more susceptible to the adverse effects of changes in
circumstances and economic conditions.
. BBB -- Bonds rated BBB are regarded as having an adequate capacity to pay
principal and interest. Whereas they normally exhibit protection parameters,
adverse economic conditions or changing circumstances are more likely to lead to
a weakened capacity to pay principal and interest for bonds in this category
than for bonds in the A category.
. BB, B, CCC, CC, C -- Bonds rated in these categories are regarded, on
balance, as predominantly speculative with respect to capacity to pay interest
and repay principal in accordance with the terms of the obligation. BB
indicates the lowest degree of speculation and C the highest degree of
speculation. While this debt will likely have some quality and protective
characteristics, these are outweighed by large uncertainties or major risk
exposures to adverse conditions.
. C1 -- This rating is reserved for income bonds on which no interest is
being paid.
. D -- Bonds rated D are in default and payment of interest and/or
repayment of principal is in arrears.
56
JOHN HANCOCK
VARIABLE SERIES TRUST I
SUPPLEMENT dated October 1, 2001
TO
STATEMENT OF ADDITIONAL INFORMATION dated May 1, 2001
INVESTMENT ADVISORY ARRANGEMENTS
On September 5, 2001, shareholders of the Small Cap Growth, Mid Cap Growth,
Small/Mid Cap Growth, International Equity, International Opportunities,
Short-Term Bond and High Yield Bond Funds each approved a proposal to increase
the investment advisory fees paid by their Fund to John Hancock. On September
14, 2001, the shareholders of the Emerging Markets Equity Fund also approved a
proposal to increase the investment advisory fees paid by their Funds to John
Hancock. The following table, which appears on page 35 of the Statement of
Additional Information, is amended to reflect changes to those increases in
investment advisory fees.
Effective October 1, 2001, investment advisory fees are paid to John Hancock at
the following rates:
John Hancock's Investment Advisory Fee
as an Annual Percentage of Each Portion
Fund of the Fund's Average Daily Net Assets
---- --------------------------------------
Small Cap Growth .30% of the Fund's average daily net assets
Mid Cap Growth 1.00% of first $100 million; .90% above
$100 million
Small/Mid Cap Growth 1.00% of first $50 million; .95% of next
$150 million; .90% above $200 million
International Equity 1.20% of first $50 million; 1.05% of next
$150 million; 1.00% above $200 million
International Opportunities 1.30% of first $20 million; 1.15% of next
$30 million; 1.05% above $50 million
Emerging Markets Equity 1.65% of first $10 million; 1.45% of next
$140 million; 1.35% above $150 million
Short-Term Bond .30% of the Fund's average daily net assets
High Yield Bond .80% of first $100 million; .70% above $100
million
October 1, 2001
ATTACHMENT 2.
[LOGO OF JOHN HANCOCK]
Annual Report
December 31, 2000
Investment Vision
The Variable Series | Variable Series Trust
--------------------------------------------------------------------------------
Insurance Products:
. Are NOT FDIC insured; NOT insured by the FDIC, NCUSIF, or any other federal
entity;
. Are NOT deposits or other obligations of any bank and are NOT guaranteed by
any bank; and
. Are subject to investment risk, including the possible loss of principal
investment.
--------------------------------------------------------------------------------
[LOGO OF JOHN HANCOCK]
[LOGO OF INDEPENDENCE INVESTMENT ASSOCIATES, INC.]
[LOGO OF ALLIANCE CAPITAL]
[LOGO OF THE BOSTON COMPANY]
[LOGO OF CAPITAL GUARDIAN TRUST COMPANY]
[LOGO OF FEDERATED]
[LOGO OF GOLDMAN SACHS]
[LOGO OF JANUS]
[LOGO OF MELLON BOND]
[LOGO OF MORGAN STANLEY DEAN WITTER]
[LOGO OF NEUBERGER BERMAN]
[LOGO OF PUNAM INVESTMENTS]
[LOGO OF STATE STREET GLOBAL ADVISORS]
[LOGO OF T. ROWE PRICE]
[LOGO OF WELLINGTON MANAGEMENT]
Dear Shareholder,
The economic and financial landscape has shifted dramatically since our last
report to you six months ago The Federal Reserve has finally achieved its goal
of slowing economic growth, and market sentiment has moved abruptly toward fear
of an impending recession.
The Fed acknowledged in December that economic weakness is now a greater concern
than inflation, but stopped short of lowering interest rates to stimulate the
economy at that time. However, the rate was cut at a special meeting called on
January 3, 2001. The overall macroeconomic picture right now is almost exactly
what Alan Greenspan has been targeting; growth still positive but slightly below
the economy's potential, minimal inflation, and a slight increase in the
unemployment rate.
There are two key reasons for the bleak mood in financial markets. First, the
economic slowdown, even if it proceeds exactly according to the Fed's plan,
implies a jarring halt to the recent pace of growth in corporate earnings.
Stocks and bonds are both being hit by changed expectations of profits and
defaults. Second, there is a legitimate fear that the Fed may have made a
mistake, overdoing the monetary tightening earlier in 2000. It takes up to a
year for the full impact of interest rate changes to work its way through the
economy, so there could still be more tightening in the pipeline from last May's
50-basis-point increase. While the best guess is that the Fed is getting it
right, and stands ready to ease rates again if the need is compelling, markets
are still reflecting a valid concern that we might already be on a slippery
slope.
But while the market was turbulent this past year, not everyone faired poorly.
Most financial pundits agree that those who had their assets well diversified in
year 2000 were generally much better off than those who weren't diversified.
John Hancock offers a unique and highly diversified group of funds for our
shareholders to select from for their variable life and annuity products.
Further, we monitor all of our funds regularly to ensure that each maintains its
stated investment style. By offering you many choices across all investment
styles, you can make sure that your variable life or variable annuity assets are
properly diversified.
It may be time for you to review the fund choices in your variable life and/or
annuity policies to see if the asset allocation you selected is still
appropriate for your current situation. If so, please contact the registered
representative who assisted you with the purchase of your policy and he or she
will assist you in that process. We want to help you get the most out of your
John Hancock variable products. Diversification of investment choices, which
meet your asset allocation preferences, is another way we may be able to achieve
your objectives.
Thank you for purchasing your variable life and/or annuity products from John
Hancock. You can rest assured that we will continue to work on your behalf.
Sincerely,
/s/ Michele G. Van Leer /s/ Thomas J. Lee
Michele G. Van Leer Thomas J. Lee
Chairman President and Vice Chairman
[PHOTO] [PHOTO]
Michele G. Van Leer Thomas J. Lee
Chairman President and Vice Chairman
Economic Overview
John Hancock Economic Research
Economic conditions in the US shifted dramatically during 2000, slowing from
over a 5% pace of growth in the first half to just over 2% in the second. The
abrupt downshift cut sharply into corporate earnings, resulting in rising loan
losses and bond defaults, and slumping equity prices for high-flying technology
stocks.
Changing conditions brought a chastened mood in financial markets and the
media, with widespread fears of recession for the first time in several years.
The Federal Reserve announced in December a reassessment of the relative risk
of recession and inflation, followed in January by a surprise half-point cut in
short-term interest rates.
Investors seemed reassured by the Fed's action, seeing it as proof that
Chairman Greenspan was on the job and ready to prevent a recession, despite
some fear that his surprise rate cut showed that the economy must be even
weaker than we had thought. Stock prices recovered some lost ground, and credit
spreads narrowed as money started moving back into higher-risk corporate bonds.
Overall, however, markets have remained volatile.
A soft landing: soft for whom?
We still appear to be headed for a soft landing rather than a recession. But
"soft" means only that overall growth remains positive--it does not mean
comfortable. A downshift from over 5% growth to under 2% may cause just as much
pain to many sectors as past recessions. In financial markets, the impact of
precipitous drops in corporate earnings can make a soft landing for the economy
feel very bumpy.
In addition, the risk of an actual recession has increased. Consumer confidence
has fallen sharply, which may cut into spending (auto sales are already down),
while lower stock prices and tighter credit cut into both the desire and the
ability of businesses to finance new capital investment. We still believe that
the Federal Reserve will successfully avert a recession, but the chance that a
mistake or an external shock will put us over the edge are clearly much higher
when growth is already sluggish.
Inflation: dead but not buried
With the economy slowing, the specter of inflation has almost evaporated as
cost pressures which had been building in the services sectors start to abate.
Wage
growth will probably slow as jobs become less plentiful.
Nonetheless, oil costs remain a constant worry, as OPEC tries to sustain high
prices. In addition, falling interest rates normally weaken the dollar,
boosting goods prices across the board. For the moment it seems that foreign
interest rates will follow US rates down, so that there will not necessarily be
any relative weakening of the dollar. But with slower US growth and a huge
trade deficit, there is a real risk that imported inflation could at some point
limit the Fed's freedom to stimulate the economy with more interest rate cuts.
1
Inception: March 29, 1986
Growth & Income Fund
Independence Investment Associates, Inc. Paul F. McManus
Putnam Investments C. Beth Cotner
Effective November 1, the Fund was modified to a multi-managed investment
approach
The Growth & Income Fund is a multi-manager fund with two sub-advisers each
independently managing their own portion of the Fund. The two managers employ
a distinct and complementary investment strategy. This unique multi-manager
approach seeks to produce more consistent investment returns over market
cycles and to reduce the risk of any one manager or strategy being out of
favor in certain market environments.
IIA selects stocks using a combination of fundamental equity research and
quantitative tools and focuses on large cap stocks that are undervalued
relative to the stock's history and have improving earnings growth prospects.
Putnam selects stocks using a systematic screening approach and fundamental
equity research and focuses on large and mid cap stocks with opportunities for
above average growth.
As of December 31, 2000, IIA managed approximately 77% and Putnam managed
approximately 23% of the Fund's assets. For the year, the Fund performed -
13.10% below the benchmark's performance of -9.11%.
Independence Investment Associates, Inc.
The Fund outperformed the benchmark in the fourth quarter. Stock prices
declined in the period as fears over an accelerating economic slowdown were
discounted in the market. Increasing numbers of technology companies began to
preannounce earnings shortfalls. The Fund was modestly underweight technology
stocks, and this benefited portfolio performance, although specific stock
selection skill was slightly negative. Health care was over weighted,
particularly in large drug companies. Both stock selection and the active
overweight benefited performance for the quarter. Holdings in Bristol Meyers,
Merck and Pharmacia Upjohn helped the portfolio. Electric utilities were
another positive are as investors were becoming even more defensive as the
economy was slowing. Perceived as safer technology stocks, information
services companies like First Data Corp and EDS did relatively well and helped
portfolio performance.
With the market being defensive, food and beverage stocks did well. We had an
underweight there as valuations did not justify the purchases of some of the
stocks. This relative underweight negatively impacted performance in the
quarter. In the media area, fears of the slowing economy affected the
broadcasters as advertising budgets became suspect. Also, the delay of Time
Warner--AOL adversely affected performance of those stocks.
Looking forward, we continue to maintain a broad sector neutral strategy
while emphasizing individual stock selection. Based upon the relative
valuation of stocks we will continue to select the best stocks within
industries based upon their valuation and outlook for sustainable earnings
growth.
Putnam Investments
The Fund benefited from overweighting the robust energy, conglomerate,
utilities, and financial sectors, along with strong stock selection. In
particular, exceptional stock performance by one of our holdings (Tyco) made
conglomerates the greatest contributor to performance. The next-largest
contribution came from energy, where oil services stocks boosted returns; in
financial services, insurance (American International Group) and investment
banking/brokerage (Goldman Sachs) aided performance.
The single largest detractor from performance came from technology, where the
benefit of being underweight in a very weak sector was more than offset by
poor stock performance in software (Openwave Systems, Veritas Software),
communications equipment (Redback Networks, Juniper Networks), and business
applications software (Agile Software, I2 Technologies). Fund performance was
also hindered by health care (underweighting pharmaceuticals and weak stock
selection in biotechnology); overweighting communications services (the worst-
performing sector), along with weak stock performance from that sector in the
cellular industry (Sprint PCS, Nextel); underweighting consumer staples (along
with not owning non-alcoholic beverage companies and owning weak TV
broadcasting companies); and finally, underweighting consumer cyclicals.
In the volatile environment of the new year, we anticipate additional
earnings disappointments, especially in stocks leveraged to the consumer. We
believe that the current environment will continue to place pressure on
rapidly expanding, high-quality growth companies. We have concentrated the
Fund on companies with a proven record of expanding profits even in unsettled
economic times. Higher energy prices should benefit oil and gas producers and
energy services companies. Going forward, we will be overweight energy (oil
services) and financial services (banking/brokerage services and insurance)
stocks while underweighting technology (communications equipment and software)
and consumer staples (media and TV broadcasting.)
2
Inception: March 29, 1986
Growth & Income Fund
Independence Investment Associates, Inc. Paul F. McManus
Putnam Investments C. Beth Cotner
[GRAPH]
Growth & Income S&P 500. Growth & Income S&P 500.
Fund Index Fund Index
12/31/90 $10,000 $10,000 01/31/96 $21,300 $22,266
01/31/91 10,449 10,442 02/29/96 21,576 22,479
02/28/91 11,145 11,190 03/31/96 21,852 22,695
03/31/91 11,406 11,456 04/30/96 22,098 23,029
04/30/91 11,401 11,488 05/31/96 22,609 23,623
05/31/91 11,844 11,980 06/30/96 22,733 23,720
06/31/91 11,266 11,432 07/31/96 21,659 22,664
07/31/91 11,655 11,967 08/31/96 22,175 23,145
08/31/91 11,905 12,249 09/30/96 23,205 24,445
09/30/91 11,760 12,048 10/31/96 23,772 25,115
10/31/91 11,933 12,209 11/30/96 25,354 27,021
11/30/91 11,518 11,716 12/31/96 24,918 26,492
12/31/91 12,596 13,055 01/31/97 26,201 28,137
01/31/92 12,375 12,812 02/28/97 26,344 28,365
02/29/92 12,522 12,976 03/31/97 25,318 27,185
03/31/92 12,311 12,722 04/30/97 26,545 28,808
04/30/92 12,702 13,092 05/31/97 27,985 30,577
05/31/92 12,827 13,163 06/30/97 29,088 31,940
06/30/92 12,732 12,972 07/31/97 31,688 34,476
07/31/92 12,734 13,495 08/31/97 30,083 32,559
08/31/92 12,911 13,222 09/30/97 31,832 34,344
09/30/92 13,056 13,374 10/31/97 30,635 33,197
10/31/92 13,033 13,422 11/30/97 31,787 34,734
11/30/92 13,541 13,875 12/31/97 32,341 35,331
12/31/92 13,717 14,056 01/31/98 32,690 35,723
01/31/93 13,858 14,159 02/28/98 35,358 38,299
02/28/93 14,052 14,350 03/31/98 37,336 40,260
03/31/93 14,487 14,659 04/30/98 37,439 40,666
04/30/93 14,101 14,299 05/31/98 37,030 39,967
05/31/93 14,467 14,686 06/30/98 38,602 41,590
06/30/93 14,609 14,734 07/31/98 38,151 41,149
07/31/93 14,530 14,665 08/31/98 32,294 35,199
08/31/93 15,115 15,223 09/30/98 33,951 37,455
09/30/93 15,142 15,111 10/31/98 36,978 40,500
10/31/93 15,400 15,418 11/30/98 39,191 42,954
11/30/93 15,263 15,273 12/31/98 42,123 45,428
12/31/93 15,545 15,460 01/31/99 43,536 47,327
01/31/94 16,007 15,978 02/28/99 42,184 45,855
02/28/94 15,541 15,547 03/31/99 43,433 47,690
03/31/94 14,939 14,871 04/30/99 45,263 49,535
04/30/94 15,199 15,064 05/31/99 43,943 48,366
05/31/94 15,257 15,310 06/30/99 46,973 51,051
06/30/94 14,980 14,931 07/31/99 45,365 49,458
07/31/94 15,385 15,426 08/31/99 44,829 49,210
08/31/94 15,957 16,053 09/30/99 43,592 47,862
09/30/94 15,486 15,667 10/31/99 46,142 50,892
10/31/94 15,733 16,025 11/30/99 46,676 51,925
11/30/94 15,211 15,437 12/31/99 47,579 54,983
12/31/94 15,459 15,663 01/31/00 47,808 52,223
01/31/95 15,777 16,070 02/29/00 48,957 51,236
02/28/95 16,400 16,693 03/31/00 45,974 56,247
03/31/95 16,763 17,187 04/30/00 44,819 54,554
04/30/95 17,252 17,688 05/31/00 49,836 53,436
05/31/95 17,826 18,386 06/30/00 48,617 54,750
06/30/95 18,232 18,818 07/31/00 47,976 53,896
07/31/95 18,814 19,445 08/31/00 48,744 57,243
08/31/95 18,936 19,498 09/30/00 48,151 54,221
09/30/95 19,757 20,314 10/31/00 51,130 53,993
10/31/95 19,628 20,243 11/30/00 48,040 49,738
11/30/95 20,456 21,134 12/31/00 34,913 49,982
12/31/95 20,748 21,525
Top Ten Holdings (as of December 31, 2000)
---------------------------------------------------------------------------
% of six months ago
investments % of investments
General Electric Co. 3.3% 5.9%
Pfizer, Inc. 3.0% 0.9%
Cisco Systems, Inc. 2.4% 4.6%
Citigroup, Inc. 2.3% 4.1%
Merck & Co., Inc. 2.2% 1.6%
Microsoft Corp. 2.1% 7.1%
Exxon Mobil Corp. 2.1% 1.4%
Wal-Mart Stores, Inc. 1.9% 1.5%
Intel Corp. N/A 3.1%
Tyco International, Ltd. 1.9% 1.5%
Average Annual Total Returns*
---------------------------------------------------------------------------
Growth & Income S&P 500 MorningStar
Fund Index Peer Group+
-------- ----------- -----------
1 Year -13.10% -9.11% -7.52%
3 Years 9.57 12.26 11.71
5 Years 15.44 18.35 17.02
10 Years 15.58 16.56 16.58
Top Ten Sectors (as of December 31, 2000)
---------------------------------------------------------------------------
% of % of
investments investments
Technology 28.1% Energy 5.6%
Health Care 17.9% Consumer Cyclical 4.9%
Financial 15.4% Utility 4.5%
Capital Equipment 13.6% Consumer Staple 1.7%
Retail 5.6% Basic Material 1.6%
* Total returns are for the period ended December 31, 2000. Returns
represent past performance, assume reinvestment of all distributions and
are not indicative of future performance. "Results may have been achieved
during market conditions or pursuing performance opportunities that may
not continue to occur in the future." Investment returns and principal
value of fund shares will fluctuate so that shares, when redeemed, may be
worth more or less than their original cost. The performance of the Fund
on this page is reported net of Trust level charges (i.e. investment
management fees and operating expenses). It does not reflect expense and
charges of the applicable separate accounts and variable products, all
of which vary to a considerable extent and are described in your product
prospectus.
. "Standard & Poor's 500" is a trademark of the McGraw-Hill companies, Inc.
and has been licensed for use by John Hancock Life Insurance Company. The
product is not sponsored, endorsed, fold or promoted by Standard & Poor's
and Standard & Poor's makes no representation regarding the advisability
of investing in the product.
+ Source: MorningStar, Inc. Data as of 12/31/00. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for all variable annuity and
life sub-accounts within the MorningStar variable universe having a
Large Blend investment category.
3
Inception: May 1, 1996
Equity Index Fund
State Street Global Advisors Management Team
The year 2000 provided the first negative return of the S&P 500 since 1990.
This is only the second calendar year since 1980 to finish in the red. For the
year, the S&P 500 was down 9.09%. Technology stocks grabbed most of the
headlines during the year. The Nasdaq Composite Index fell more than 50% from
its high on March 10, and finished the year down approximately 40%.
The news was not all bad, as Financials, Health Care and Utilities all posted
strong returns. In fact, the S&P 500 ex-Technology posted a gain for 2000. The
smaller stocks in the Index performed much better than the giants in 2000. The
top quartile of names lost about 15% in 2000, while the other 4 quartiles all
posted gains ranging from 9.6% to 17.3%*. Value stocks outperformed their
growth counterparts by over 28% during the year.
The Equity Index Fund return was -9.15% for the year. The Index return was -
9.09% for the year. Fees cost the Fund -0.17% during the year. Removing these
from the calculation shows the Fund slightly outperformed its goal for the
year.
The Equity Index Fund attempts to track the performance of The S&P 500 Index
by fully replicating the index. The Fund attempts to match the index holdings
and weights for each security in order to provide returns close to the index
return.
[GRAPH]
Equity Index S&P 500.
Fund Index
5/1/96 $10,000 $10,000
5/31/96 10,210 10,258
6/28/96 10,231 10,300
7/31/96 9,825 9,842
8/30/96 9,971 10,050
9/30/96 10,509 10,615
10/31/96 10,787 10,906
11/29/96 11,561 11,734
12/31/96 11,423 11,504
1/31/97 12,133 12,218
2/28/97 12,221 12,317
3/31/97 11,736 11,805
4/30/97 12,409 12,510
5/30/97 13,119 13,278
6/30/97 13,727 13,870
7/31/97 14,821 14,971
8/29/97 13,993 14,139
9/30/97 14,756 14,913
10/31/97 14,267 14,415
11/28/97 14,887 15,083
12/31/97 15,169 15,342
1/1/98 15,336 15,513
2/27/98 16,441 16,631
3/31/98 17,280 17,482
4/30/98 17,455 17,659
5/29/98 17,151 17,355
6/30/98 17,850 18,060
7/31/98 17,664 17,868
8/31/98 15,096 15,285
9/30/98 16,067 16,264
10/30/98 17,369 17,587
11/30/98 18,419 18,653
12/31/98 19,484 19,727
1/29/99 20,296 20,551
2/26/99 19,669 19,912
3/31/99 20,464 20,709
4/30/99 21,252 21,510
5/28/99 20,743 21,003
6/30/99 21,904 22,168
7/31/99 21,220 21,477
8/31/99 21,115 21,369
9/30/99 20,541 20,784
10/31/99 21,833 22,099
11/30/99 22,274 22,548
12/31/99 23,592 23,876
1/31/00 22,400 22,677
2/29/00 21,978 22,249
3/31/00 24,120 24,425
4/30/00 23,394 23,690
5/31/00 22,910 23,204
6/30/00 23,475 23,775
7/31/00 23,108 23,404
8/31/00 24,546 24,857
9/30/00 23,245 23,545
10/31/00 23,146 23,446
11/30/00 21,326 21,598
12/31/00 21,433 21,704
Top Ten Holdings (as of December 31, 2000)
---------------------------------------------------------------------------
% of six months ago
investments % of investments
General Electric Co. 2.5% 3.6%
Exxon Mobil Corp. 2.4% 2.0%
Pfizer, Inc. 2.2% 0.9%
Cisco Systems, Inc. 2.0% 2.5%
Citigroup, Inc. 2.0% 1.3%
Wal-Mart Stores, Inc. 2.0% 2.2%
Microsoft Corp. 1.8% 4.3%
American International Group, Inc. 1.7% 1.2%
Merck & Co., Inc. N/A 1.1%
Intel Corp. 1.4% 2.0%
Average Annual Total Returns*
---------------------------------------------------------------------------
Equity Index S&P 500. MorningStar
Fund(1) Index Peer Group+
------------- ----------- -----------
1 Year -9.15% -9.11% -7.52%
3 Years 12.21 12.26 11.71
Since Inception (5/1/96) 17.74 18.06 N/A
Top Ten Sectors (as of December 31, 2000)
---------------------------------------------------------------------------
% of % of
investments investments
Technology 23.7% Consumer Staple 6.5%
Financial 16.9% Retail 6.3%
Health Care 13.5% Utility 6.2%
Capital Equipment 10.2% Consumer Cyclical 5.5%
Energy 6.8% Basic Material 2.4%
(1) Returns reflect waiver of advisory fee, reimbursement of all non-advisory
fund expenses, and extra-ordinary capital contributions of $84,000 in 1996
and $250,000 in 1997.
* Total returns are for the period ended December 31, 2000. Returns represent
past performance, assume reinvestment of all distributions and are not
indicative of future performance. "Results may have been achieved during
market conditions or pursuing performance opportunities that may not
continue to occur in the future." Investment returns and principal value of
fund shares will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. The performance of the fund does not
reflect expense and charges of the applicable separate accounts and variable
products, all of which vary to a considerable extent and are described in
your product prospectus.
. "Standard & Poor's 500" is a trademark of The McGraw-Hill Companies, Inc.
and has been licensed for use by John Hancock Life Insurance Company. The
product is not sponsored, endorsed, sold or promoted by Standard & Poor's
and Standard & Poor's makes no representation regarding the advisability of
investing in the product.
+ Source: MorningStar, Inc. Data as of 12/31/00. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for all the variable annuity and
life sub-accounts within the Morningstar variable universe having a Large
Blend investment category.
* Source: Prudential Securities.
4
Inception: May 1, 1996
Large Cap Value Fund
T. Rowe Price Associates, Inc. Brian C. Rogers
In what will be remembered as one of the most tumultuous years in recent
history, the stock market limped to the finish line with its first loss in
several years and its worst overall showing in more than two decades. During
the year, the Fed maintained a generally restrictive monetary policy, the
economy showed signs of deceleration, and once high-flying sectors finally
experienced the effects of gravity. In this challenging environment, the trust
enjoyed an outstanding year as value stocks returned to favor.
The Fund posted a strong gain for the 12-month period ended December 31,
2000, 13.83%, comfortably ahead of the Russell 1000 Value Index, 7.01%.
Many of the beneficiaries of this difficult environment were companies with
defensive characteristics and those that appeared, according to our
assessment, to be undervalued. Companies with predictable revenue and earnings
streams fared especially well in the turmoil of 2000. After all, at the
beginning of the year, who would have guessed that the best performing S&P
sector would be the electric and gas utility industry?
Over the past 12 months, holdings in the utility, consumer products,
financial, and energy sectors helped the Fund's performance. These sectors
provided positive returns at a time when many stocks struggled. The trust also
benefited from continued merger and acquisition activity, such as the
acquisitions of Fort James, J.P. Morgan, and Honeywell International. Despite
the trust's strong return, we also had some losers in the Fund, including
Xerox and AT&T. Fortunately, some of the trust's better performing positions
more than offset the drag of declining share prices.
We made several transactions that are representative of how we manage the
trust. Many of the positions we reduced or eliminated had generated good
returns over the time we held the stocks. Our general strategy is to reduce
position size when price appreciation results in less attractive valuations
for the shares. For example, as Duke Energy's price rose last year, its
relative valuation appeal (the relationship between upside potential and
downside risk) became less attractive and we trimmed our stake. On the other
hand, the stock of Sprint had declined fairly sharply, increasing the appeal
of its relative valuation, which induced us to initiate a position in the
shares. Honeywell International's price declined so sharply in the first half
of the year that General Electric decided its relative valuation and strategic
appeal was so compelling that it opted to buy Honeywell in its entirety. In
making these Fund adjustments, we slightly increased the trust's volatility
relative to the S&P 500. As the market's value structure has changed, it makes
sense for us to take on slightly more risk. For example, at certain levels,
some technology companies may offer better opportunities as value plays than
utility stocks that have appreciated strongly.
[GRAPH]
Russell 1000 Large Cap
Value Index Value Fund
5/1/96 $10,000 $10,000
5/31/96 10,125 10,190
6/28/96 10,133 10,255
7/31/96 9,750 9,977
8/30/96 10,029 10,186
9/30/96 10,428 10,618
10/31/96 10,832 10,860
11/29/96 11,617 11,451
12/31/96 11,468 11,390
1/31/97 12,024 11,699
2/28/97 12,201 11,979
3/31/97 11,762 11,724
4/30/97 12,256 12,016
5/30/97 12,941 12,582
6/30/97 13,496 13,059
7/31/97 14,511 13,805
8/29/97 13,995 13,447
9/30/97 14,840 14,081
10/31/97 14,426 13,703
11/28/97 15,063 14,220
12/31/97 15,503 14,643
1/30/98 15,283 14,538
2/27/98 16,312 15,249
3/31/98 17,310 15,954
4/30/98 17,426 15,869
5/29/98 17,168 15,598
6/30/98 17,388 15,561
7/31/98 17,082 15,106
8/31/98 14,540 13,634
9/30/98 15,375 14,373
10/30/98 16,566 15,261
11/30/98 17,338 15,884
12/31/98 17,928 15,999
1/29/99 18,071 15,599
2/26/99 17,816 15,470
3/31/99 18,185 15,889
4/30/99 19,883 17,600
5/28/99 19,665 17,469
6/30/99 20,235 17,932
7/30/99 19,642 17,537
8/31/99 18,913 17,003
9/30/99 18,251 16,393
10/29/99 19,303 16,973
11/30/99 19,152 16,131
12/31/99 19,244 16,523
1/31/00 18,617 15,751
2/29/00 17,234 14,460
3/31/00 19,336 16,066
4/28/00 19,112 16,208
5/31/00 19,312 16,987
6/30/00 18,430 16,140
7/31/00 18,660 16,308
8/31/00 19,698 17,100
9/30/00 19,879 17,218
10/31/00 20,368 18,043
11/30/00 19,612 17,845
12/31/00 20,595 18,667
Top Ten Holdings (as of December 31, 2000)
-----------------------------------------------------------------------------
% of six months ago
investments % of investments
Mellon Financial Corp. 2.7% 1.5%
Exxon Mobil Corp. 2.3% 2.9%
American Home Products Corp. 2.1% 1.5%
Lockheed Martin Corp. 1.9% 0.9%
BP Amoco plc 1.9% 1.6%
Federal National Mortgage Assoc. 1.8% 1.0%
International Paper Co. 1.8% 1.7%
Minnesota Mining & Manufacturing Co. 1.8% 1.2%
SBC Communications, Inc. 1.8% 1.7%
Verizon Communications 1.8% N/A
Average Annual Total Returns*
-----------------------------------------------------------------------------
Large Cap Russell 1000 MorningStar
Value Fund Value Index Peer Group+
----------- ------------ -----------
1 Year 12.97% 7.01% 7.01%
3 Years 8.43 9.93 8.37
Since Inception (5/1/96) 14.30 16.74 N/A
Top Ten Sectors (as of December 31, 2000)
-----------------------------------------------------------------------------
% of % of
investments investments
Financial 20.3% Capital Equipment 8.8%
Consumer Staple 12.3% Technology 8.3%
Energy 12.0% Basic Material 7.4%
Utility 10.3% Health Care 4.6%
Consumer Cyclical 9.0% Retail 2.8%
* Total returns are for the period ended December 31, 2000. Returns represent
past performance, assume reinvestment of all distributions and are not
indicative of future performance. "Results may have been achieved during
market conditions or pursuing performance opportunities, including investment
in initial public offerings, that may not continue to occur in the future."
Investment returns and principal value of fund shares will fluctuate so that
shares, when redeemed, may be worth more or less than their original cost.
The performance of the fund on this page is reported net of Trust level
charges (i.e. investment management fees and operating expenses). It does not
reflect expense and charges of the applicable separate accounts and variable
products, all of which vary to a considerable extent and are described in
your product prospectus.
+ Source: MorningStar, Inc. Data as of 12/31/00. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for all variable annuity and life
sub-accounts within the Morningstar variable universe having a Large Value
investment category.
5
Inception: August 31, 1999
Large Cap Value Core Fund
Goldman Sachs Asset Management Brown/Jones/Pinter
During the one-year reporting period the Large Cap Value CORE Fund generated a
total cumulative return of 5.12%, versus the 7.01% total cumulative return of
the Fund's benchmark, the Russell 1000 Value Index.
The Fund's strategy is a well-defined investment process that has historically
provided consistent, risk-managed performance. The diversification of our
models typically adds value because, when one theme doesn't work, others
usually do. For example, when momentum stocks underperform, value stocks
typically advance more than average.
Over the reporting period the returns of our various investment themes were
extremely erratic. In fact, virtually every theme experienced one of its best
months since inception, as well as at least one of its worst months ever. In
addition, some months saw extremely positive returns for one variable and
extremely negative for another--reflecting the high overall return dispersion
nature of the market.
The CORE themes struggled within the Index universe, especially the Value
theme. In particular, Value had its two worst quarters (second and fourth
quarters) since inception, and the fourth quarter of 2000 marked the worst
quarter since inception of our Momentum and Stability themes. Though Research
did not do as badly as the other three themes, it did have a slightly negative
return for the year. Strong stock selection within the Financial and Consumer
Non-Cyclical sectors helped returns, though we lagged the benchmark in the
Consumer Services and Consumer Cyclical sectors.
Looking ahead, we continue to believe that cheaper stocks should outpace more
expensive ones, good momentum stocks should do better than poor momentum
stocks, lower-risk stocks should perform better than higher risk stocks, as
should those favored by research analysts. As such, we anticipate remaining
fully invested and expect that the value we add over time will be due to stock
selection, as opposed to sector or size allocations.
[GRAPH]
Large Cap Value Russell 1000
CORE Fund Value Index
8/31/99 $10000.00 $10000.00
9/30/99 9710.99 9650.00
10/31/99 10331.58 10205.84
11/30/99 10222.01 10126.23
12/31/99 10357.99 10174.84
1/31/00 9966.70 9843.14
2/29/00 9306.14 9111.80
3/31/00 10353.69 10223.43
4/30/00 10235.53 10104.84
5/31/00 10315.02 10210.94
6/30/00 9925.40 9744.30
7/31/00 10094.18 9866.11
8/31/00 10735.04 10414.66
9/30/00 10780.50 10510.48
10/31/00 10929.67 10769.04
11/30/00 10420.97 10369.50
12/31/00 10888.02 10889.02
Top Ten Holdings (as of December 31, 2000)
--------------------------------------------------------------------------
% of six months ago
investments % of investments
Citigroup, Inc. 4.3% 1.4%
Exxon Mobil Corp. 3.9% 2.2%
SBC Communications, Inc. 2.4% 1.1%
Johnson & Johnson 2.3% 0.1%
American International Group, Inc. 2.3% 0.8%
Merck & Co., Inc. 2.1% N/A
Verizon Communications 1.9% N/A
Wells Fargo & Co. 1.8% 0.6%
Chevron Corp. 1.6% 0.7%
Morgan Stanley, Dean Witter, Discover & Co. 1.4% 0.4%
Average Annual Total Returns*
---------------------------------------------------------------------------
Large Cap Russell 1000 MorningStar
Value CORE Fund Value Index Peer Group+
---------------- ------------ -----------
1 Year 5.12% 7.01% 7.01%
Since Inception (8/31/99) 6.58 6.60 N/A
Top Ten Sectors (as of December 31, 2000)
---------------------------------------------------------------------------
% of % of
investments investments
Financial 29.8% Consumer Cyclical 8.0%
Energy 11.0% Capital Equipment 7.8%
Health Care 9.4% Technology 7.4%
Utility 8.7% Basic Material 4.0%
Consumer Staple 8.1% Retail 3.0%
* Total returns are for the period ended December 31, 2000. Returns represent
past performance, assume reinvestment of all distributions and are not
indicative of future performance. "Results may have been achieved during
market conditions or pursuing performance opportunities that may not continue
to occur in the future." Investment returns and principal value of fund shares
will fluctuate so that shares, when redeemed, may be worth more or less than
their original cost. The performance of the fund on this page is reported net
of Trust level charges (i.e. investment management fees and operating
expenses). It does not reflect expense and charges of the applicable separate
accounts and variable products, all of which vary to a considerable extent and
are described in your product prospectus.
+ Source: MorningStar, Inc. Data as of 12/31/00. Although gathered from reliable
sources, data completeness and accuracy cannot be guaranteed. Represents an
average annual return for all variable annuity and life sub-accounts within
the MorningStar variable universe having a Large Value investment category.
6
Inception: June 30, 2000
American Leaders Large Cap Value Fund
Federated Investment Management Company M. Donnelly/K. McCloskey
The fourth quarter marked a dramatic shift in market leadership and investor
sentiment. Value strategies outperformed growth strategies during the quarter
as investors continued to flee technology and telecommunications shares, as
many of these companies lowered current and future earnings expectations. The
American Leaders Large Cap Value Fund returned 2.89% during the fourth quarter,
underperforming the benchmark Russell 1000 Value Index, which returned 3.6%.
Relative to the Russell 1000 Value Index, positive influences on performance
included an underweight position in Utilities and overweight positions in
Healthcare and Other. Additional positive influences on performance included
good security selection in Financial Services (Conseco up 73%, Cigna up 27%),
Consumer Discretionary (Waste Management up 59%, Charter Communications up
39%), and Consumer Staples (Philip Morris up 51%, Sara Lee up 22%). Offsetting
these positive influences on relative performance was an overweight position
and unfavorable security selection in Technology (Sun Microsystems down 53%,
Novell down 47%), as well as an underweight position in Consumer Staples.
Unfavorable security selection in Utilities (Worldcom down 54%, AT&T down 41%),
Producer Durables (Philips Electronics down 15%, Northrop Grumman down 8%) and
an unassigned sector (News Corp. Ltd down 38%) also detracted from relative
returns.
For the six-month period, positive influences on relative performance were an
underweight position in Utilities as well as an overweight position and
favorable security selection in Healthcare (Healthsouth up 127%, Unitedhealth
Group up 43%, Baxter Intl. up 27%). Favorable security selection in Financial
Services (Washington Mutual up 87%, PNC Financial up 58%, Allstate up 97%) and
Consumer Discretionary (Waste Management up 46%, Kimberly-Clark up 25%, Charter
Communications up 38%) also aided relative returns. Offsetting these positive
influences on performance were overweight positions in Technology and
Unassigned names, as well as unfavorable security selection in Other Energy
(Ensco Intl. down 5%) and Integrated Oils (Chevron up 1%, Royal Dutch Petroleum
down 1%).
[GRAPH]
Russell 1000 American Leaders Large
Value Index Cap Value Fund
6/30/00 $ 9,543 $10,000
7/31/00 9,662 9,842
8/31/00 10,200 10,692
9/30/00 10,293 10,499
10/31/00 10,547 10,827
11/30/00 10,155 10,283
12/31/00 10,664 10,802
Top Ten Holdings (as of December 31, 2000)
--------------------------------------------------------------------------
% of six months ago
investments % of investments
Phillip Morris Cos., Inc. 2.9% N/A
Exxon Mobile Corp. 2.4% N/A
Bristol-Meyers Squibb Co. 2.3% N/A
UnitedHealth Group, Inc. 2.1% N/A
Verizon Communications 2.1% N/A
PNC Bank Corp. 2.0% N/A
HEALTHSOUTH Corp. 2.0% N/A
Allstate Corp. 2.0% N/A
Kimberley-Clark Corp. 2.0% N/A
Waste Management, Inc. 1.9% N/A
Average Annual Total Returns*
---------------------------------------------------------------------------
American Leaders Russell 1000 MorningStar
Large Cap Value Fund Value Index Peer Group+
-------------------- ------------ -----------
Since Inception
(6/30/00) 8.02% 11.65% N/A
Top Ten Sectors (as of December 31, 2000)
---------------------------------------------------------------------------
% of % of
investments investments
Financial 24.0% Consumer Cyclical 8.6%
Technology 15.0% Utility 7.7%
Health Care 12.4% Consumer Staple 5.6%
Energy 9.4% Basic Material 5.4%
Capital Equipment 9.3% Retail 1.4%
* Total returns are for the period ended December 31, 2000. Returns represent
past performance, assume reinvestment of all distributions and are not
indicative of future performance. "Results may have been achieved during
market conditions or pursuing performance opportunities, including investment
in initial public offerings, that may not continue to occur in the future."
Investment returns and principal value of fund shares will fluctuate so that
shares, when redeemed, may be worth more or less than their original cost.
Small-company investing entails special risks outlined in the prospectus. The
performance of the fund on this page is reported net of Trust level charges
(i.e. investment management fees and operating expenses). It does not reflect
expense and charges of the applicable separate accounts and variable products,
all of which vary to a considerable extent and are described in your product
prospectus.
+ Source: MorningStar, Inc. Data as of 12/31/00. Although gathered from reliable
sources, data completeness and accuracy cannot be guaranteed. Represents an
average annual return for all variable annuity and life sub-accounts within
the Morningstar variable universe having a Large Value investment category.
7
Inception: March 29, 1986
Large Cap Growth Fund
Independence Investment Associates, Inc. Mark Lapman
We are pleased to report that your Fund ended a difficult and volatile
partial year well ahead of its benchmark. Your Fund returned -17.89% for the
year, over 4.5% ahead of the -22.42% return of the Russell 1000 Growth Index.
During 2000, there was an overall broadening of the US equity market, which we
view as healthy despite the market's negative absolute return.
While fourth quarter returns were negative, we were able to add value through
solid stock selection. Your Fund returned -18.29% over 3% ahead of the -21.35%
return of the Russell Growth Index. During the quarter, health care names such
as Universal Health Services, Merck and St. Jude Medical were especially
strong, due to their consistent and reliable earnings growth. Financial stocks
also performed well, driven higher by the sentiment that the Fed will soon
begin to cut interest rates. Holdings in Fannie Mae and Partnerre benefited
from this trend. Resistant to an economic slowdown, consumer non-cyclicals
such as Colgate Palmolive performed strongly, as investors focused on the fact
that people buy toothpaste no matter what the economy is doing. After taking a
beating earlier in the year, many retailers came back strong in the fourth
quarter. Investors began to anticipate the positive impact of lower interest
rates on consumer spending and snapped up shares of TJX and Kohls.
It was a difficult, emotional year for the stock market, yet we were pleased
to deliver a competitive return on your Fund, which exceeded your benchmark.
These results were achieved by sticking to our philosophy that cheap stocks
with improving fundamentals are attractive. We feel confident that with our
unique blend of strong fundamental research, a disciplined investment
philosophy and process, and strong risk control positions us well to have
another.
[GRAPH]
Large Cap Large Cap Large Cap Large Cap
Growth Growth Growth Growth
Fund Benchmark(1) Fund Benchmark(1)
6/29/90 $10,000 $10,000 7/31/95 $18,981 $22,266
7/31/90 10,052 10,442 8/31/95 19,127 22,479
8/31/90 9,532 11,190 9/29/95 19,903 22,695
9/28/90 9,162 11,456 10/31/95 19,674 23,029
10/31/90 9,172 11,488 11/30/95 20,491 23,832
11/30/90 9,809 11,980 12/29/95 20,777 23,866
12/31/90 10,155 11,432 1/31/96 21,264 22,467
1/31/91 10,632 11,967 2/29/96 21,514 23,047
2/28/91 11,363 12,249 3/29/96 21,787 24,725
3/28/91 11,712 12,048 4/30/96 22,154 24,873
4/30/91 11,742 12,209 5/31/96 22,643 26,741
5/31/91 12,250 11,716 6/28/96 22,617 26,217
6/28/91 11,658 13,055 7/31/96 21,114 28,055
7/31/91 12,034 12,812 8/30/96 21,788 27,864
8/30/91 12,278 12,976 9/30/96 23,122 26,356
9/30/91 12,073 12,722 10/31/96 23,293 28,107
10/31/91 12,129 13,092 11/29/96 24,983 30,136
11/27/91 11,705 13,163 12/31/96 24,572 31,341
12/31/91 12,739 12,972 1/31/97 25,978 34,112
1/31/92 12,545 13,495 2/28/97 26,171 32,116
2/28/92 12,686 13,222 3/31/97 24,939 33,696
3/31/92 12,460 13,374 4/30/97 26,258 32,450
4/30/92 12,853 13,422 5/30/97 27,770 33,829
5/29/92 13,001 13,875 6/30/97 28,869 34,208
6/30/92 12,897 14,056 7/31/97 31,656 35,230
7/31/92 13,358 14,159 8/29/97 30,080 37,880
8/31/92 13,109 14,350 9/30/97 31,954 39,391
9/30/92 13,239 14,659 10/31/97 30,666 39,935
10/30/92 13,255 14,299 11/28/97 31,806 38,801
11/30/92 13,746 14,686 12/31/97 32,163 41,175
12/31/92 14,006 14,734 1/31/98 33,023 40,903
1/29/93 14,138 14,665 2/27/98 36,148 34,764
2/26/93 14,395 15,223 3/31/98 38,193 37,434
3/31/93 14,832 15,111 4/30/98 38,483 40,443
4/30/93 14,297 15,418 5/29/98 37,652 43,521
5/28/93 14,726 15,273 6/30/98 39,523 47,447
6/30/93 14,940 15,460 7/31/98 39,331 50,232
7/30/93 14,825 15,978 8/31/98 33,172 47,936
8/31/93 15,468 15,547 9/30/98 35,113 50,462
9/30/93 15,661 14,871 10/30/98 37,758 50,528
10/29/93 15,897 15,064 11/30/98 40,758 48,977
11/30/93 15,722 15,310 12/31/98 44,872 52,405
12/31/93 15,939 14,931 1/29/99 47,369 50,739
1/31/94 16,423 15,426 2/26/99 45,089 51,566
2/28/94 15,914 16,053 3/31/99 46,987 50,483
3/31/94 15,400 15,667 4/30/99 47,680 54,294
4/29/94 15,702 16,025 5/28/99 46,300 57,226
5/31/94 15,651 15,437 6/30/99 49,748 63,178
6/30/94 15,417 15,663 7/30/99 48,102 60,215
7/29/94 15,803 16,070 8/31/99 48,377 63,159
8/31/94 16,356 16,693 9/30/99 47,268 67,681
9/30/94 15,865 17,187 10/29/99 50,039 64,460
10/31/94 16,016 17,688 11/30/99 51,727 61,211
11/30/94 15,549 18,386 12/31/99 55,671 65,851
12/30/94 15,782 18,818 1/31/00 52,340 63,105
1/31/95 16,078 19,445 2/29/00 53,994 68,816
2/28/95 16,687 19,498 3/31/00 59,753 62,306
3/31/95 17,065 20,314 4/28/00 57,723 59,359
4/28/95 17,487 20,243 5/31/00 55,633 50,609
5/31/95 18,082 21,134 6/30/00 58,852 49,010
6/30/95 18,386 21,525 7/31/00 56,070 63,105
8/31/00 61,542 68,816
9/30/00 55,095 62,306
10/31/00 53,458 59,359
11/30/00 46,338 50,609
12/31/00 45,017 49,010
Top Ten Holdings (as of December 31, 2000)
---------------------------------------------------------------------------
% of six months ago
investments % of investments
General Electric Co. 5.7% 5.4%
Pfizer, Inc. 3.7% 1.9%
Cisco Systems, Inc. 3.3% 7.0%
Intel Corp. 2.9% 4.9%
EMC Corp. 2.6% 0.9%
Microsoft Corp. 2.5% 7.5%
Merck & Co., Inc. 2.1% 2.0%
Oracle Corp. 2.1% 3.4%
America Online, Inc. 2.0% 4.1%
International Business Machines Corp. 1.8% 2.1%
Average Annual Total Returns*
---------------------------------------------------------------------------
Large Cap Large Cap Growth MorningStar
Growth Fund Benchmark(1) Peer Group+
--------------- ---------------- -----------
1 Year -17.89% -22.42% -15.05%
3 Years 12.43 12.74 18.46
5 Years 17.08 17.89 18.78
10 Years 16.24 16.34 17.43
Top Ten Sectors (as of December 31, 2000)
---------------------------------------------------------------------------
% of % of
investments investments
Technology 50.0% Consumer Cyclical 3.9%
Health Care 21.6% Energy 1.0%
Capital Equipment 13.1% Utility 0.7%
Retail 6.9% Governmental 0.2%
Financial 4.0% Consumer Staple N/A
(1) The benchmark is represented by the S&P 500 for the period April 1986
to April 1996 and the Russell Large Cap Growth Index for the period
May 1996 to present.
* Total returns are for the period ended December 31, 2000. Returns
represent past performance, assume reinvestment of all distributions
and are not indicative of future performance. "Results may have been
achieved during market conditions or pursuing performance
opportunities that may not continue to occur in the future."
Investment returns and principal value of fund shares will fluctuate
so that shares, when redeemed, may be worth more or less than their
original cost. The performance of the fund on this page is reported
net of Trust level charges (i.e. investment management fees and
operating expenses). It does not reflect expense and charges of the
applicable separate accounts and variable products, all of which
vary to a considerable extent and are described in your product
prospectus.
+ Source: MorningStar, Inc. Data as of 12/31/00. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for all variable annuity and
life sub-accounts within the MorningStar variable universe having a
Large Cap Growth investment category. Prior to May 1996 (concurrent
with the Fund's strategy change), the peer group represents the Large
Blend investment category.
8
Inception: August 31, 1999
Large Cap Aggressive Growth Fund
Alliance Capital Management L.P. J. Fogarty/A. Harrison
The Fund returned -18.77% compared to the Russell 1000 Growth Index return of
-22.4% for the year ended December 31, 2000. The Fund outperformed due to an
underweight in the poor-performing technology sector and an overweight and
strong stock performance in financial services. Strong gains from capital
goods stocks were also positive contributors to performance. Although the
market is likely to remain volatile as sentiment vacillates with the economic
data and corporate earnings reports, we believe the stage is set for a rebound
during 2001. Looking out over the next six to twelve months, the most ideal,
and we believe the most likely, economic scenario continues to be a "soft
landing." In an economic environment of solid, albeit lower, growth and benign
inflation, high quality, industry dominant growth companies traditionally
outperform. We expect further interest rate cuts by the Federal Reserve to
provide a positive tailwind for the market. While the next few months will
likely bring more earnings disappointments and re-acceleration of earnings
growth may not be visible until mid-year, the speculative excesses have been
substantially reduced and many premier growth stocks, especially in
technology, have been beaten down to valuation levels not seen in two years.
We remain focussed on a relatively concentrated list of high quality growth
stocks in technology, consumer services, financial services and healthcare
that we believe will continue to generate superior investment returns. We will
actively trade the core holdings in the Fund to take advantage of the natural
volatility that is observed in the market and continue to strive to marry the
Fundamentals with price considerations on each specific stock decision.
[GRAPH]
Large Cap Aggressive Russell 1000
Growth Fund Growth Index
8/31/99 $10,000 $10,000
9/30/99 9,948 9,790
10/31/99 10,811 10,529
11/30/99 11,047 11,098
12/31/99 12,018 12,252
1/31/00 11,465 11,677
2/29/00 11,569 12,248
3/31/00 12,833 13,125
4/30/00 12,364 12,501
5/31/00 11,692 11,870
6/30/00 12,284 12,770
7/31/00 12,151 12,238
8/31/00 12,933 13,345
9/30/00 11,513 12,083
10/31/00 11,116 11,511
11/30/00 9,841 9,815
12/31/00 9,762 9,504
Top Ten Holdings (as of December 31, 2000)
---------------------------------------------------------------------------
% of six months ago
investments % of investments
Citigroup, Inc. 5.8% 1.7%
Pfizer, Inc. 5.6% 0.8%
Cisco Systems, Inc. 5.6% 2.5%
Nokia Oyj 5.3% 3.2%
Tyco International, Ltd. 4.8% 2.2%
Time Warner, Inc. 4.8% 0.8%
Honeywell International, Inc. 4.2% 0.8%
EMC Corp. 3.7% 1.1%
MBNA Corp. N/A 1.4%
Schering-Plough Corp. 3.1% 1.7%
Average Annual Total Returns*
---------------------------------------------------------------------------
Large Cap
Aggressive Russell 1000 MorningStar
Growth Fund Growth Index Peer Group+
----------- ------------ -----------
1 Year -18.77% -22.42% -15.15%
Since Inception (8/31/99) -1.79 -3.74 N/A
Top Ten Sectors (as of December 31, 2000)
---------------------------------------------------------------------------
% of % of
investments investments
Technology 34.2% Retail 6.6%
Financial 17.8% Governmental 2.3%
Health Care 14.0% Consumer Staple 1.6%
Capital Equipment 11.8% Utility 1.5%
Consumer Cyclical 10.2%
* Total returns are for the period ended December 31, 2000. Returns represent
past performance, assume reinvestment of all distributions and are not
indicative of future performance. "Results may have been achieved during
market conditions or pursuing performance opportunities, including investment
in initial public offerings, that may not continue to occur in the future".
Investment returns and principal value of fund shares will fluctuate so that
shares, when redeemed, may be worth more or less than their original cost. The
performance of the fund on this page is reported net of Trust level charges
(i.e. investment management fees and operating expenses). It does not reflect
expense and charges of the applicable separate accounts and variable products,
all of which vary to a considerable extent and are described in your product
prospectus.
+ Souce: MorningStar, Inc. Data as of 12/31/00. Although gathered from reliable
sources, data completeness and accuracy cannot be guaranteed. Represents an
average annual total return for all variable annuity and life sub-accounts
within MorningStar variable universe having a Large Growth investment
category.
9
Inception: August 31, 1999
Large/Mid Cap Value Fund
Wellington Management Company, LLP D. Chu/L. Gabriel
During the fourth quarter, the Large/Mid Cap Value Fund gained 4.14%,
outperforming the Fund's benchmark, the Russell 1000 Value Index, which
increased 3.6% for the quarter ended December 31, 2000. For the one-year
period ending December 31, 2000 the Fund returned 13.41% well ahead of its
2001 benchmark which only increased 7.0%.
The US equity market lost ground during the fourth quarter due to fears over
eroding corporate earnings, high energy prices, and uncertainty concerning the
outcome of the US presidential election. Growth stocks lagged while value
issues led the way as the Russell 1000 Value Index (3.6%) outperformed the
Russell 1000 Growth Index (-21.4%) during the fourth quarter.
During the quarter, the Fund's sector weights were kept closely in line with
those of the Russell 1000 Value Index. The sectors in the Fund that added the
most value were finance and energy. Conversely, the utilities and health care
sectors detracted from returns.
Some of the Fund's largest contributors through stock selection during the
quarter include: Washington Mutual, which was the Fund's top performer,
Ultramar Diamond Shamrock, which was a solid performer in the energy sector,
and Fannie Mae, which was able to beat expectations, driven by strong loan
growth and stable credit conditions.
The year 2000 was the beginning of what we believe to be a longer-term rally
in US larger capitalization value stocks. A Euro that has strengthened from
the 2000 lows will boost larger-company profits, while continued consolidation
in many economically sensitive sectors will drive the returns of many value
stocks upward in the quarters to come. As we begin the New Year, we continue
to believe that broad diversification across economic sectors is a central
tenet of the investment strategy. We will continue to look for opportunities
in large cap stocks that represent value through active Fund management.
[GRAPH]
Large/Mid Cap Russell 1000
Value Fund Value Index
8/31/99 $10,000 $10,000
9/30/99 9,787 9,650
10/31/99 10,352 10,206
11/30/99 10,295 10,126
12/31/99 10,472 10,175
1/31/00 10,031 9,843
2/29/00 9,614 9,112
3/31/00 10,829 10,223
4/30/00 10,445 10,105
5/31/00 10,607 10,211
6/30/00 10,218 9,744
7/31/00 10,452 9,866
8/31/00 11,179 10,415
9/30/00 11,405 10,510
10/31/00 11,710 10,769
11/30/00 11,229 10,370
12/31/00 11,877 10,889
Top Ten Holdings (as of December 31, 2000)
--------------------------------------------------------------------------
% of six months ago
investments % of investments
Citigroup, Inc. 3.3% 2.2%
Verizon Communications 3.1% N/A
Washington Mutual, Inc. 2.9% N/A
Exxon Mobile Corp. 2.6% N/A
Federal National Mortgage Assoc. 2.4% 1.0%
American International Group, Inc. 2.4% 0.8%
Cigna Corp. 2.2% 0.7%
Wachovia Corp. 2.0% 0.7%
KeyCorp N/A N/A
Sara Lee Corp. 1.9% 0.3%
Average Annual Total Returns*
---------------------------------------------------------------------------
Large/Mid Cap Russell 1000 MorningStar
Value Fund Value Index Peer Group+
------------- ------------ -----------
1 Year 13.41% 7.01% 11.37%
Since Inception (8/31/99) 13.76 6.60 N/A
Top Ten Sectors (as of December 31, 2000)
---------------------------------------------------------------------------
% of % of
investments investments
Financial 8.6% Utility 5.1%
Technology 8.5% Health Care 4.7%
Capital Equiptment 7.9% Consumer Staple 4.1%
Energy 7.6% Basic Material N/A
Consumer Staple 7.5% Retail 2.9%
* Total returns are for the period ended December 31, 2000. Returns represent
past performance, assume reinvestment of all distributions and are not
indicative of future performance. "Results may have been achieved during
market conditions or pursuing performance opportunities, including
investment in initial public offerings, that may not continue to occur in
the future." Investment returns and principal value of fund shares will
fluctuate so that shares, when redeemed, may be worth more or less than
their original cost. Small-company investing entails special risks outlined
in the prospectus. The performance of the fund on this page is reported net
of Trust level charges (i.e. investment management fees and operating
expenses). It does not reflect expense and charges of the applicable
separate accounts and variable products, all of which vary to a
considerable extent and are described in your product prospectus.
+ Source: MorningStar, Inc. Data as of 12/31/00. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for all variable annuity and
life sub-accounts within the Morningstar variable universe having a 50%
weighting of the Large Cap Value category and a 50% weighting of the
Mid Cap Value category.
10
Inception: May 1, 1996
Mid Cap Value Fund
Neuberger Berman, LLC R. Gendelman
For the fourth quarter ended December 31, 2000, the Mid Cap Value Fund/1/
returned 6.20%. This gain fell short of the Russell Mid-Cap Value Index's/2/
return of 9.44%. However, the fund significantly outperformed the index for
the one-year period: the Mid Cap Value rose an impressive 28.38% while the
Russell Mid-Cap Value gained 19.18%.
In the fourth quarter, we continued our commitment to invest in good
businesses at attractive prices that possess positive risk-reward
characteristics. Our holdings within Financial Services (33.04% of total
market value as of 12-31-2000) had the most favorable impact on portfolio
total return. We were overweight the Russell Mid-Cap Value and our stock
selection led to better absolute returns. Dime Bancorp (1.75% of total net
assets) and M&T Bank Corp. (1.64% of total net assets) were two of the top
performers in the period. The Producer Durables sector (7.35% of total market
value) also had a positive impact on total return. As with Financial Services,
the fund was overweight the index and achieved superior absolute returns.
Waste Management (1.32% of total net assets) and General Dynamics (1.56% of
total net assets) both made solid contributions to portfolio return.
Contrarily, many of our Technology holdings (6.20% of total market value) were
not immune to the weakness in the sector and detracted from total return. 3Com
and Comdisco, both of which were sold during the period, had negative impacts
on return. Holdings within Materials & Processing (4.91% of total market
value) and Utilities (11.01%) led to lost ground versus the index. The fund
was underweight the M&P sector and had inferior returns. And while Utilities
did have a small positive impact on total return, the fund was underweight the
sector and had lower returns as compared to the index.
(1) 28.32% and 14.01% were the average annual returns for the 1-year and
since inception (5/01/96) periods through December 31, 2000. Results are
shown on a total return basis and include reinvestment of all dividends
and capital gains distributions. Performance data quoted represents past
performance, which is no guarantee of future results. The investment
return and principal value of an investment will fluctuate so that the
shares, when redeemed, may be worth more or less than their original
cost.
(2) The Russell Midcap Index measures the performance of the 800 smallest
companies in the Russell 1000 Index, which represents approximately 26%
of the total market capitalization of the Russell 1000 Index (which, in
turn, consists of the 1,000 largest U.S. companies, based on market
capitalization). The Russell Midcap Value Index measures the performance
of those Russell Midcap Index companies with lower price-to-book ratios
and lower forecasted growth values. Please note that indices do not take
into account any fees and expenses of investing in the individual
securities that they track, and that individuals cannot invest directly
in any index. Data about the performance of this index are prepared or
obtained by Neuberger Berman Management Inc. and include reinvestment of
all dividends and capital gain distributions. The Portfolio may invest in
many securities not included in the above-described index.
[GRAPH]
Russell Mid Cap Mid Cap
Value Index Value Fund
5/1/96 $10,000 $10,000
5/31/96 10,096 10,249
6/28/96 10,107 10,095
7/31/96 9,626 9,572
8/30/96 10,030 10,035
9/30/96 10,398 10,516
10/31/96 10,672 10,708
11/29/96 11,342 11,616
12/31/96 11,294 11,618
1/31/97 11,649 12,270
2/28/97 11,846 12,227
3/31/97 11,486 11,872
4/30/97 11,775 12,211
5/30/97 12,470 13,281
6/30/97 12,933 13,423
7/31/97 13,892 14,692
8/29/97 13,730 14,905
9/30/97 14,581 15,713
10/31/97 14,138 15,047
11/28/97 14,614 15,249
12/31/97 15,174 15,355
1/30/98 14,880 15,248
2/27/98 15,873 16,325
3/31/98 16,691 16,945
4/30/98 16,597 16,838
5/29/98 16,209 16,044
6/30/98 16,261 15,464
7/31/98 15,437 14,323
8/31/98 13,266 11,803
9/30/98 14,041 12,171
10/30/98 14,951 13,019
11/30/98 15,476 13,328
12/31/98 15,946 13,615
1/29/99 15,574 13,381
2/26/99 15,232 13,015
3/31/99 15,450 13,076
4/30/99 16,913 14,378
5/28/99 16,984 14,538
6/30/99 17,177 15,114
7/30/99 16,748 14,647
8/31/99 16,168 13,726
9/30/99 15,350 13,080
10/29/99 15,803 13,153
11/30/99 15,514 13,151
12/31/99 15,930 14,367
1/31/00 14,977 13,761
2/29/00 14,351 14,119
3/31/00 16,090 15,577
4/28/00 16,155 14,892
5/31/00 16,433 15,197
6/30/00 15,820 15,190
7/31/00 16,190 15,190
8/31/00 17,182 16,066
9/30/00 17,347 16,906
10/31/00 17,677 17,369
11/30/00 17,447 17,574
12/31/00 18,986 18,445
Top Ten Holdings (as of December 31, 2000)
---------------------------------------------------------------------------
% of six months ago
investments % of investments
Choicepoint, Inc. 2.4% N/A
Exelon Corp. 2.2% N/A
FMC Corp. 2.0% N/A
Dime Bancorp, Inc. 1.8% N/A
GATX Corp. 1.8% N/A
XL Capital, Ltd. 1.8% 1.0%
Countrywide Credit Industries, Inc. 1.7% 1.4%
Termo Electron Corp. 1.7% N/A
M & T Bank Corp. 1.7% N/A
Ace, Ltd. 1.7% N/A
Average Annual Total Returns*
---------------------------------------------------------------------------
Mid Cap Russell Mid Cap MorningStar
Value Fund Value Index Peer Group+
---------- --------------- -----------
1 Year 28.38% 19.18% 14.98%
3 Years 6.30 7.75 7.42
Since Inception (5/1/96) 14.01 14.73 N/A
Top Ten Sectors (as of December 31, 2000)
---------------------------------------------------------------------------
% of % of
investments investments
Financial 8.9% Consumer Cyclical 4.9%
Capital Equipment 8.8% Health Care 3.6%
Energy 8.5% Basic Material 2.7%
Technology 7.5% Transportation N/A
Utility 6.7% Retail 1.5%
* Total returns are for the period ended December 31, 2000. Returns
represent past performance, assume reinvestment of all distributions and
are not indicative of future performance. *Results may have been achieved
during market conditions or pursuing performance opportunities that may
not continue to occur in the future.*Investment returns and principal
value of fund shares will fluctuate so that shares, when redeemed, may be
worth more or less than their original cost. The performance of the Fund
on this page is reported net of Trust level charges (i.e. investment
management fees and operating expenses). It does not reflect expense and
charges of the applicable separate accounts and variable products, all
of which vary to a considerable extent and are described in your product
prospectus.
+ Source: MorningStar, Inc Data as of 12/31/00. Although gathered from reliable
sources, data completeness and accuracy cannot be guaranteed. represents an
average annual total return for all variable annuity and life sub-accounts
within the morningStar variable universe having a Mid Cap Value Investment
category.
11
Inception: August 31, 1999
Fundamental Growth Fund (formerly Fundamental Mid Cap Growth Fund)
Putnam Investments Eric M. Wetlaufer
Effective August 1, 2000 Putnam Investments assumed management of the Fund.
The Fund returned -20.91% for the fourth quarter, outpacing the Russell Mid
Cap Growth Index return of -23.25%. Outperformance in this hostile environment
for growth investing was largely due to adept stock selection, particularly in
the battered technology sector. Selection in health care contributed early in
the period but detracted in the fourth quarter largely due to weakness in
biotechnology. Energy, utilities, and financial holdings benefited performance
throughout the period. Communications services holdings hurt results.
The U.S. equity market remains extremely volatile as we begin the new year.
We anticipate additional earnings disappointments, especially in stocks
leveraged to the consumer. In the light of signs that the economy is slowing
significantly, we expect several interest-rate cuts over the first half of
2001.
High energy prices will continue to act as a tax on the economy, reducing
consumers' disposable income and adding pressure to corporate profit margins.
A forecasted colder-than-average winter will exacerbate the effect of higher
oil and natural gas prices on local economies and on consumer spending.
We expect growing unemployment and business failures--especially in the dot-
com universe. As a result, consumer confidence will continue to erode,
creating a difficult environment for retailers.
We have concentrated the Fund on growth companies with a proven track record
of expanding profits even in unsettled economic times. Higher energy prices
should benefit oil and gas producers and energy services companies. Within the
financial sector we will emphasize the regional banks and credit-cards issuers
that should benefit from Fed rate cuts. While underweighting technology as a
whole--particularly semiconductors and components--we will overweight software
and communications and equipment. Within the underweight sector of consumer
staples, we will emphasize broadcasting and restaurants, while underweighting
foods.
[GRAPH]
Fundamental Russell Mid Cap
Growth Fund Growth Index
8/31/99 $10,000 $10,000
9/30/99 10,000 9,915
10/31/99 10,836 10,681
11/30/99 12,529 11,788
12/31/99 15,457 13,829
1/31/00 15,972 13,826
2/29/00 22,030 16,732
3/31/00 18,801 16,749
4/30/00 16,532 15,122
5/31/00 14,461 14,020
6/30/00 18,224 15,507
7/31/00 17,402 14,526
8/31/00 18,979 16,716
9/30/00 18,950 15,899
10/31/00 17,465 14,811
11/30/00 13,822 11,593
12/31/00 14,989 12,204
Top Ten Holdings (as of December 31, 2000)
---------------------------------------------------------------------------
% of six months ago
investments % of investments
Allergan, Inc. 2.6% N/A
Brocade Communications Systems, Inc. 2.4% 0.2%
Palm, Inc. 2.2% N/A
Applera Corporation - 2.2% N/A
Applied Biosystems Group
Medimmune, Inc. 1.9% 0.4%
Rational Software Corp. 1.9% 0.2%
PerkinElmer, Inc. 1.8% N/A
Immunex Corp. 1.8% N/A
Transocean Sedco Forex, Inc. N/A N/A
Symbol Technologies, Inc. 1.7% N/A
Average Annual Total Returns*
---------------------------------------------------------------------------
Fundamental Russell Mid Cap MorningStar
Growth Fund Growth Index Peer Group+
--------------- --------------- -----------
1 Year -3.03% -11.75 -7.87
Since Inception (8/31/99) 35.44 16.11 N/A
Top Ten Sectors (as of December 31, 2000)
---------------------------------------------------------------------------
% of % of
investments investments
Technology 37.5% Retail 4.5%
Health Care 25.3% Utility 3.3%
Energy 9.9% Consumer Cyclical 2.8%
Financial 7.5% Consumer Staple 1.9%
Capital Equipment 6.0% Transportation 1.4%
* Total returns are for the period ended December 31, 2000. Returns
represent past performance, assume reinvestment of all distributions and
are not indicative of future performance. "Results may have been achieved
during market conditions or pursuing performance opportunities, including
investment in initial public offerings, that may not continue to occur in
the future." Investment returns and principal value of fund shares will
fluctuate so that shares, when redeemed, may be worth more or less than
their original cost. Small-company investing entails special risks as
outlined in the prospectus. The performance of the fund on this page is
reported net of Trust level charges (i.e. investment management fees and
operating expenses). It does not reflect expense and charges of the
applicable separate accounts and variable products, all of which vary to
a considerable extent and are described in your product prospectus.
+ Source: MorningStar, Inc. Data as of 12/31/00. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for all variable annuity and
life sub-accounts within the MorningStar variable universe having a
Mid Cap Growth investment category.
12
Inception: August 31, 1999
Mid Cap Blend Fund
Independence Investment Associates, Inc. Coreen Kraysler
The Mid Cap Blend Fund posted another strong quarter, returning -1.5% vs. the
Frank Russell Midcap Index return of -3.59%, while for the year the Fund
returned 18.58%, far exceeding the benchmark return of 8.25%. Worried about an
impending economic slowdown, investors took a defensive posture during the most
recent quarter, and thus placed their bets on consumer noncyclical stocks such
as the food and beverage names. As a result, holdings in Archer-Daniels-Midland
and Conagra performed strongly. Unable to sustain high valuations after a
string of earnings disappointments, technology and telecom names remained weak,
hurting positions in Portal Software, Jabil Circuit and Vishay Intertechnology.
Instead, investors preferred to seek out value in beaten down basic materials
stocks. Consequently, paper & forest product holdings in Abitibi and Westvaco
performed well. Similarly, chemical stocks such as Avery Dennison, Eastman
Chemical and Air Products also outperformed. Industrial stocks such as
Ingersoll Rand and Parker Hannifin also made a comeback. In anticipation of a
decline in interest rates, financial stocks also outperformed. Holdings in
Golden West and Torchmark benefited from this trend. In addition to the
positive interest rate environment, property & casualty insurance stocks, such
as St. Paul, XL Capital and Partner Re benefited from an upturn in insurance
prices.
During the quarter, we sold Stryker Corp., Capital One Financial and Hispanic
Broadcasting after they met our price targets. We initiated positions in
Lincare, Southern Energy and Southtrust. As always, we continue to look for
inexpensive mid cap stocks with good growth potential.
[GRAPH]
Mid Cap Russell Mid
Blend Fund Cap Index
8/31/99 $10,000 $10,000
9/30/99 9,729 9,648
10/29/99 10,182 10,105
11/30/99 10,633 10,396
12/31/99 11,153 11,311
1/31/00 10,739 10,937
2/29/00 11,484 11,778
3/31/00 12,645 12,453
4/28/00 12,620 11,864
5/31/00 12,361 11,549
6/30/00 12,610 11,891
7/31/00 12,437 11,758
8/31/00 13,789 12,884
9/30/00 13,427 12,701
10/31/00 13,612 12,506
11/30/00 12,237 11,380
12/31/00 13,226 12,246
Top Ten Holdings (as of December 31, 2000)
---------------------------------------------------------------------------
% of six months ago
investments % of investments
Comerica, Inc. 2.0% 0.2%
Stillwell Financial, Inc. 1.9% N/A
St. Paul Cos., Inc. 1.9% 0.3%
Southern Energy, Inc. 1.7% N/A
Waters Corp. 1.7% 0.5%
Lincoln National Corp. 1.7% N/A
Noble Drilling Corp. 1.6% N/A
Golden West Financial Corp. 1.5% 0.3%
Exelon Corp. N/A N/A
El Paso Energy Corp. 1.4% 0.3%
Average Annual Total Returns*
---------------------------------------------------------------------------
Mid Cap Russell Mid MorningStar
Blend Fund Cap Index Peer Group+
---------- ----------- -----------
1 Year 18.58% 8.25% 6.70%
Since Inception (8/31/99) 23.31 16.41 N/A
Top Ten Sectors (as of December 31, 2000)
---------------------------------------------------------------------------
% of % of
investments investments
Technology 16.6% Energy 8.3%
Health Care 12.5% Capital Equipment 5.6%
Financial 11.0% Retail 4.1%
Utility 9.6% Basic Material 3.9%
Consumer Cyclical 8.3% Consumer Staple 2.3%
* Total returns are for the period ended December 31, 2000. Returns
represent past performance, assume reinvestment of all distributions and
are not indicative of future performance. "Results may have been achieved
during market conditions or pursuing performance opportunities, including
investment in initial public offerings, that may not continue to occur in
the future." Investment returns and principal value of fund shares will
fluctuate so that shares, when redeemed, may be worth more or less than
their original cost. Small-company investing entails special risks as
outlined in the prospectus. The performance of the Fund on this page is
reported net of Trust level charges (i.e. investment management fees and
operating expenses). It does not reflect expense and charges of the
applicable separate accounts and variable products, all of which vary to
a considerable extent and are described in your product prospectus.
+ Source: MorningStar, Inc. Data as of 12/31/00. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for all variable annuity and
life sub-accounts within the MorningStar variable universe having a
Mid Cap Blend investment category.
13
Inception: May 1, 1996
Mid Cap Growth Fund
Janus James Goff
The Mid Cap Growth Fund lost 29.24% during the fourth quarter, a period that
saw our benchmark, the Russell Mid Cap Growth Index, lose 23.25% of its value.
For the year ended December 31, 2000, the Fund lost 35.86%, while the Index
lost 11.75%.
Both the Fund and its benchmark were pressured by evidence suggesting the
U.S. economy was slowing faster than many analysts expected--a development
that forced stocks lower nearly across the board. Fast-growing companies
suffered the most, as illustrated by the Nasdaq Composite Index's more than
32% plunge as disappointing earnings news from a number of high-profile
technology companies magnified the impacts of a slowing economy. Although
small- and mid-sized stocks fared somewhat better than the market at large,
many of the midcap market's most significant successes during the quarter fell
toward the value side of the spectrum.
Individual disappointments included biotechnology Millennium Pharmaceuticals
and Human Genome Sciences, both of which fell sharply as investors shied away
from the sector. While we were discouraged by the declines recorded by both
companies, Millennium's performance was particularly difficult to understand
given the progress of its anti-Leukemia drug Campath with FDA regulators.
Other setbacks included Web hosting company Exodus Communications and Internet
security and domain name registrar VeriSign.
Meanwhile, notable successes included Hanover Compressor, a company that
provides compression services critical to the production of natural gas from
existing wells. The company reported a 48% increase in net income and a
massive 60% increase in cash flow during the quarter, a strong performance
that provided lift for the shares.
Looking ahead, stocks could remain volatile as investors factor economic
weakness and uncertainty surrounding the corporate earnings outlook into share
prices. However, there is growing evidence that several key areas of the
market may finally be oversold, and we have actively tried to position the
Fund to benefit by using focused research to identify outstanding growth.
[GRAPH]
Russell Mid Cap Mid Cap
Growth Index Growth Fund
5/1/96 $10,000 $10,000
5/31/96 10,204 10,252
6/28/96 9,896 10,020
7/31/96 9,128 9,186
8/30/96 9,622 9,881
9/30/96 10,233 10,473
10/31/96 10,113 10,325
11/29/96 10,709 10,408
12/31/96 10,529 10,269
1/31/97 10,994 9,994
2/28/97 10,752 9,827
3/31/97 10,145 9,079
4/30/97 10,393 9,186
5/30/97 11,325 10,176
6/30/97 11,638 10,693
7/31/97 12,752 10,907
8/29/97 12,627 10,950
9/30/97 13,266 11,734
10/31/97 12,601 11,385
11/28/97 12,734 11,547
12/31/97 12,900 11,980
1/30/98 12,668 11,743
2/27/98 13,859 12,728
3/31/98 14,440 13,429
4/30/98 14,636 13,656
5/29/98 14,035 13,098
6/30/98 14,432 14,211
7/31/98 13,814 14,045
8/31/98 11,177 11,448
9/30/98 12,022 12,370
10/30/98 12,907 13,332
11/30/98 13,777 14,295
12/31/98 15,204 16,660
1/29/99 15,660 17,539
2/26/99 14,894 16,892
3/31/99 15,724 19,064
4/30/99 16,441 20,313
5/28/99 16,229 20,063
6/30/99 17,362 21,164
7/30/99 16,810 20,863
8/31/99 16,635 21,977
9/30/99 16,493 22,828
10/29/99 17,768 26,427
11/30/99 19,609 29,295
12/31/99 23,003 36,370
1/31/00 22,999 37,510
2/29/00 27,833 44,729
3/31/00 27,861 37,361
4/28/00 25,156 32,525
5/31/00 23,322 30,325
6/30/00 25,796 34,862
7/31/00 24,163 32,535
8/31/00 27,807 36,543
9/30/00 26,447 32,968
10/31/00 24,638 30,025
11/30/00 19,284 21,906
12/31/00 20,301 23,328
Top Ten Holdings (as of December 31, 2000)
---------------------------------------------------------------------------
% of six months ago
investments % of investments
EOG Resources, Inc. 4.8% N/A
American Tower Corp. 4.5% 0.8%
Cree, Inc. 4.2% N/A
Paychex, Inc. 4.1% 4.5%
Crown Castle International Corp. 3.9% 3.5%
Avanex, Corp. 3.8% N/A
Apollo Group, Inc. 3.5% 2.2%
Human Genome Sciences, Inc. 3.2% N/A
Integrated Device Technology, Inc. N/A N/A
Millenium Pharmaceuticals, Inc. 3.0% N/A
Average Annual Total Returns*
---------------------------------------------------------------------------
Mid Cap Russell Mid Cap MorningStar
Growth Fund Growth Index Peer Group+
--------------- --------------- -----------
1 Year -35.86% -11.75% -7.87%
3 Years 24.88 16.32 20.03
Since Inception (5/1/96) 19.90 16.38 N/A
Top Ten Sectors (as of December 31, 2000)
---------------------------------------------------------------------------
% of % of
investments investments
Technology 42.4% Financial 6.3%
Health Care 21.9% Consumer Cyclical 5.1%
Capital Equipment 10.2% Utility 0.7%
Energy 8.0%
* Total returns are for the period ended December 31, 2000. Returns
represent past performance, assume reinvestment of all distributions and
are not indicative of future performance. "Results may have been achieved
during market conditions or pursuing performance opportunities, including
investment in initial public offerings, that may not continue to occur in
the future." Investment returns and principal value of fund shares will
fluctuate so that shares, when redeemed, may be worth more or less than
their original cost. The performance of the fund on this page is reported
net of Trust level charges (i.e. investment management fees and operating
expenses). It does not reflect expense and charges of the applicable
separate accounts and variable products, all of which vary to a
considerable extent and are described in your product prospectus.
+ Source: MorningStar, Inc. Data as of 12/31/00. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for all variable annuity and
life sub-accounts within the MorningStar variable universe having a
Mid Cap Growth investment category.
14
Inception: August 31, 1999
Small/Mid Cap Value Fund
The Boston Company Asset Management, LLC Peter I. Higgins
Value stocks have continued their dominance over growth stocks on a year-to-
date basis. The Fund was up 4.67% for the quarter while the Russell 2500 Value
Index was up 8.62%. For the year ended December 31, 2000 the Fund ended up
34.19% while the Russell 2500 Value ended up 20.79%
Our holdings in the energy, health care, consumer services and capital goods
sectors were up nicely and outperformed their respective sectors in the index.
Our energy holdings, with emphasis on natural gas exploration and production
and energy service companies, were again a successful strategy. These holdings
remain attractively priced even with the dramatic rise in oil prices in recent
quarters. Our best performing energy companies included Devon Energy Corp.,
Noble Affiliates, and Weatherford International. Our top performers in the
health care sector included Bausch & Lomb, Healthsouth and Bergen Brunswig.
The Fund has benefited from our overweight in the consumer services sector.
Our emphasis in this sector is in retailing and related areas where continued
strength in consumer spending has been the major earnings driver. Albertson's,
TJX, and Valassis Communications all had strong positive impacts on this
sector.
Sectors that lagged the index this quarter included utilities and financial
services and technology. Underweights in utilities and financial services had
negative contributions relative to the index. The Fund has a zero weighting in
utilities because we feel that stocks within that sector are trading at fair
valuations. We continue to emphasize the technology sector as our holdings
represent good value and growth prospects appear favorable.
The current investment strategy has yielded strong gains and will remain
unchanged. We will maintain our focus on undervalued securities with improving
business momentum and we believe that the Fund is well positioned to
outperform the benchmark over the long term
[GRAPH]
Russell
Small/Mid Cap 2500 Value
Value Fund Index
8/31/99 $10,000 $10,000
9/30/99 9,560 9,685
10/31/99 9,443 9,695
11/30/99 9,942 9,748
12/31/99 10,508 10,080
1/31/00 9,756 9,661
2/29/00 9,775 9,828
3/31/00 11,918 10,552
4/30/00 12,266 10,547
5/31/00 12,275 10,528
6/30/00 12,414 10,488
7/31/00 12,368 10,716
8/31/00 13,857 11,277
9/30/00 13,472 11,210
10/31/00 13,915 11,203
11/30/00 12,936 11,061
12/31/00 14,101 12,176
Top Ten Holdings (as of December 31, 2000)
---------------------------------------------------------------------------
% of six months ago
investments % of investments
Cendant Corp. 2.3% N/A
Emmis Communications Corp. 2.3% N/A
Circuit City Stores, inc. 2.1% N/A
Devon Energy Corp. 2.0% N/A
Agrium, Inc. 2.0% N/A
Entercom Communications Corp. 1.9% N/A
Stillwell Financial, Inc. 1.9% N/A
Varco International, Inc. 1.8% N/A
R&B Falcon Corp. N/A N/A
Weatherford International, Inc. 1.8% 0.5%
Average Annual Total Returns*
---------------------------------------------------------------------------
Small/Mid Cap Russell 2500 MorningStar
Value Fund Value Index Peer Group+
------------- ------------ -----------
1 Year 34.19% 20.79% 18.29%
Since Inception (8/31/99) 29.38 15.91 N/A
Top Ten Sectors (as of December 31, 2000)
---------------------------------------------------------------------------
% of % of
investments investments
Consumer Cyclical 18.6% Capital Equipment 7.6%
Technology 16.6% Financial 4.8%
Energy 14.7% Consumer Staple 3.5%
Retail 14.6% Transportation 2.6%
Basic Material 13.9% Health Care 2.5%
* Total returns for the period ended December 31, 2000. returns represent past
performance, assume reinvestment of all distributions and are not indicative of
future performance. *Results may have been achieved during market conditions or
pursuing performance oppotunities, including investment in initial public
offerings, that may not continue to occur in the future.* Investment returns and
principal value of fund shares will fluctuate so that shares, when redeemed, may
be worth more or less than their original cost. Small-
company investing entails
special risks as outlined in the prospectus. The performance of the fund on this
page is reported net of the Trust level charges (i.e. investment management fees
and operating expenses). It does not reflect expense and charges of the
applicable separate accounts and variable products, all of which vary to a
considerable extent and are described in your product prospectus.
+ Source: MorningStar, Inc. Data as of 12/31/00. Although gathered from reliable
sources, data completeness and accuracy cannot be guaranteed. Represents an
average annual total return for all variable annuity and life sub-accounts
within the MorningStar variable universe having a 50% weighting of the Mid Cap
Value category and a 50% weighting of the Small Cap Value category.
15
Inception: May 1, 1998
Small/Mid Cap CORE Fund
Goldman Sachs Asset Management Jones/Brown/Pinter
During the one-year reporting period the Fund generated a total cumulative
return of 4.63%, versus the 4.27% total cumulative return of the Fund's
benchmark, the Russell 2500 Index. The Fund's strategy is a well-defined
investment process that has historically provided consistent, risk-managed
performance. The diversification of our models typically adds value because,
when one theme doesn't work, others usually do. For example, when momentum
stocks underperform, value stocks typically advance more than average.
Overall, within the Index, the CORE themes performed well this year. Momentum
and Research had their highest positive returns of the year in the first
quarter, while Value's best quarter this year was the fourth quarter. However,
on a month-by-month basis, the themes varied significantly. For example,
Stability had its worst month ever among small/mid-cap stocks in April, but
came back to have one of its best ever in June. Value had its worst month ever
in February, followed by its best ever in March. For the period on average,
the returns to Momentum, Research, and Value were positive among Index names,
though Stability produced negative results. In the Fund, return to risk factor
exposures, especially positive exposures to earnings yield, value and earnings
variation, has been very positive. Stock selection was strongest within the
technology sector, followed by the Consumer Non-Cyclicals sector. The
Industrial and Basic Materials sectors lagged the benchmark in stock selection
for the year.
Looking ahead, we continue to believe that cheaper stocks should outpace more
expensive ones, good momentum stocks should do better than poor momentum
stocks, lower-risk stocks should perform better than higher risk stocks, as
should those favored by research analysts. As such, we anticipate remaining
fully invested and expect that the value we add over time will be due to stock
selection, as opposed to sector or size allocations.
[GRAPH]
Small/Mid Cap Russell
CORE Fund 2500 Index
4/30/98 $10,000 $10,000
5/31/98 9,577 9,536
6/30/98 9,721 9,547
7/31/98 9,040 8,892
8/31/98 7,377 7,215
9/30/98 7,776 7,727
10/31/98 7,960 8,149
11/30/98 8,422 8,553
12/31/98 9,019 9,071
1/31/99 8,940 9,056
2/28/99 8,305 8,461
3/31/99 8,438 8,642
4/30/99 9,172 9,415
5/31/99 9,251 9,561
6/30/99 9,810 10,058
7/31/99 9,648 9,861
8/31/99 9,347 9,553
9/30/99 9,224 9,410
10/31/99 9,430 9,616
11/30/99 9,887 10,160
12/31/99 10,871 11,262
1/31/00 10,456 11,003
2/29/00 11,807 12,592
3/31/00 11,700 12,399
4/30/00 11,257 11,732
5/31/00 10,720 11,169
6/30/00 11,414 11,903
7/31/00 11,267 11,599
8/31/00 12,208 12,598
9/30/00 11,766 12,189
10/31/00 11,467 11,855
11/30/00 10,396 10,811
12/31/00 11,375 11,742
Top Ten Holdings (as of December 31, 2000)
---------------------------------------------------------------------------
% of six months ago
investments % of investments
Brown-Forman Corp. 0.7% N/A
Spleker Properties, Inc. 0.7% N/A
Peoples Energy Corp. 0.7% 0.1%
PPL Corp. 0.6% N/A
R.J. Reynolds Tobacco Holdings, Inc. 0.6% N/A
GreenPoint Financial Corp. 0.6% 0.1%
Thermo Electron Corp. 0.6% 0.0%
Allegheny Energy, Inc. 0.6% N/A
The MONEY Group, Inc. N/A 0.1%
Pinnacle West Capital Corp. 0.6% 0.1%
Average Annual Total Returns*
---------------------------------------------------------------------------
Small/Mid Cap Russell 2500 MorningStar
CORE Fund Index Peer Group+
------------- ------------ -----------
1 Year 4.63% 4.27% 4.54%
Since Inception (5/1/98) 4.94 6.21 N/A
Top Ten Sectors (as of December 31, 2000)
---------------------------------------------------------------------------
% of % of
investments investments
Financial 22.3% Utility 6.3%
Technology 18.5% Energy 5.8%
Health Care 11.5% Basic Material 5.3%
Capital Equipment 10.8% Retail 4.1%
Consumer Cyclical 9.5% Consumer Staple 3.8%
* Total returns are for the period ended December 31, 2000. Returns represent
past performance, assume reinvestment of all distributions and are not
indicative of future performance. "Results may have been achieved during
market conditions or pursuing performance opportunities that may not continue
to occur in the future." Investment returns and principal value of fund shares
will fluctuate so that shares, when redeemed, may be worth more or less than
their original cost. Small company investing entails special risks as outlined
in the prospectus. The performance of the fund on this page is reported net of
Trust level charges (i.e. investment management fees and operating expenses).
It does not reflect expense and charges of the applicable separate accounts
and variable products, all of which vary to a considerable extent and are
described in your product prospectus.
+ Source: MorningStar, Inc. Data as of 12/31/00. Although gathered from reliable
sources, data completeness and accuracy cannot be guaranteed. Represents an
average annual total return for the sub-accounts of all variable annuity and
life products within the Morningstar variable universe. The peer group
represents a 50% weighting of the Mid Cap Blend category and a 50% weighting
of the Small Cap Blend style for periods since May 1999.
16
Inception: May 1, 1994
Small/Mid Cap Growth Fund
Wellington Management Company, LLP Frank V. Wisneski
During the quarter, the Fund decreased by -4.32% compared to a -19.36% return
of the Russell 2500 Growth Index. For the one-year period ended December 31,
2000, the Fund gained 9.25% considerably ahead of the -16.11% return of the
Russell 2500 Growth Index.
The Fund's outperformance was achieved primarily through stock selection.
Strong positive performances in the Health Care and Energy sectors also led to
better than index returns. Even though the Technology sector performed poorly
during the quarter, the Fund was still able to benefit from its focus on
service companies within this sector. Companies with strong balance sheets
paid off as our technology names performed better than the index.
Some of the recent stock successes include ACNielsen Corp, which was the top
performing stock in the information and entertainment sector, IMS Health Inc.,
which is a leader in global marketing research and analysis for the healthcare
industry, and Hanover Compressor, which was the strongest contributor to
performance in the energy sector. In terms of additions to the Fund, we sought
to add names where we had strong conviction that the downside risk was
minimal. An example of this strategy would be CDW Computer Centers, a
distributor of laptops, PCs, and computer-related equipment.
The first quarter of 2001 will be challenging. The economy is cooling.
Layoffs have increased. Energy prices remain relatively high, and many
companies have cautioned about a much more lean 2001. On the positive side, a
stronger Euro, lower interest rates, a more favorable labor market are all
positives for equity investors. Nonetheless, we have positioned the Fund
somewhat defensively in this environment, but maintain our focus on growth. We
also believe that our investment approach, with its focus on stable
predictable growth companies, solid balance sheets, and sound business models
should continue to serve us well.
[GRAPH]
Small/Mid Cap Small/Mid Cap
Growth Fund Growth Benchmark(1)
04/01/94 $10,000 $10,000
5/31/94 10,020 10,015
6/30/94 10,043 9,584
7/29/94 10,066 9,850
8/31/94 10,359 10,437
9/30/94 10,094 10,265
10/31/94 10,263 10,442
11/30/94 9,992 9,982
12/30/94 10,056 10,122
1/31/95 9,934 10,243
2/28/95 10,283 10,788
3/31/95 10,798 11,216
4/28/95 11,069 11,310
5/31/95 11,087 11,589
6/30/95 11,652 12,116
7/31/95 12,564 12,878
8/31/95 12,807 13,020
9/29/95 12,764 13,310
10/31/95 12,361 12,973
11/30/95 13,160 13,553
12/29/95 13,672 13,560
1/31/96 14,151 13,800
2/29/96 14,612 14,322
3/29/96 14,939 14,435
4/30/96 16,011 15,132
5/31/96 16,455 15,441
6/28/96 16,237 14,974
7/31/96 14,615 13,812
8/30/96 15,484 14,560
9/30/96 16,411 15,484
10/31/96 16,926 15,303
11/29/96 17,438 16,204
12/31/96 17,820 15,932
1/31/97 17,845 16,636
2/28/97 16,824 16,270
3/31/97 15,825 15,351
4/30/97 15,365 15,727
5/30/97 16,487 17,136
6/30/97 16,713 17,611
7/31/97 18,028 19,296
8/29/97 17,686 19,107
9/30/97 19,025 20,074
10/31/97 18,622 19,068
11/28/97 18,188 19,268
12/31/97 18,432 19,521
1/1/98 18,106 19,169
2/27/98 19,666 20,971
3/31/98 20,641 21,850
4/30/98 20,584 22,147
5/29/98 19,648 21,237
6/30/98 20,389 21,838
7/31/98 19,268 20,903
8/31/98 15,227 16,913
9/30/98 16,009 18,192
10/30/98 16,874 19,530
11/30/98 17,602 20,847
12/31/98 19,466 23,007
1/29/99 19,610 23,697
2/26/99 18,154 22,538
3/31/99 19,356 23,793
4/30/99 20,435 24,878
5/28/99 20,604 25,135
6/30/99 21,478 26,912
7/31/99 20,970 26,363
8/31/99 19,348 25,793
9/30/99 18,728 25,979
10/31/99 18,829 27,244
11/30/99 19,019 30,461
12/31/99 20,468 36,207
1/31/00 19,750 36,004
2/29/00 20,275 45,239
3/31/00 21,919 41,687
4/30/00 21,322 37,627
5/31/00 20,907 34,278
6/30/00 22,219 38,810
7/31/00 22,048 35,628
8/31/00 23,961 40,270
9/30/00 23,370 37,664
10/31/00 23,161 35,337
11/30/00 21,058 28,601
12/31/00 22,361 30,375
Top Ten Holdings (as of December 31, 2000)
---------------------------------------------------------------------------
% of six months ago
investments % of investments
Herman Miller, Inc. 2.5% 2.1%
Acxiom Corp. 2.5% 2.3%
Family Dollar Stores, Inc. 2.4% 1.6%
IMS Health, Inc. 2.4% N/A
Reinsurance Group of America 2.4% 2.5%
Rational Software Corp. 2.4% N/A
Catalina Marketing Corp. 2.3% 3.8%
Helmerich & Payne, Inc. 2.2% N/A
Symbol Technologies, Inc. N/A 2.2%
G & K Services, Inc. 2.2% 2.4%
Average Annual Total Returns*
---------------------------------------------------------------------------
Small/Mid Small/Mid Cap MorningStar
Cap Growth Fund Growth Benchmark(1) Peer Group+
--------------- ------------------- -----------
1 Year 9.25% -16.11% -8.45%
3 Years 6.65 15.88 20.87
5 Years 10.34 17.50 18.36
Since Inception (5/1/94) 12.85 18.13 N/A
Top Ten Sectors (as of December 31, 2000)
---------------------------------------------------------------------------
% of % of
investments investments
Technology 34.8% Energy 7.4%
Capital Equipment 13.7% Retail 6.5%
Health Care 9.6% Utility 4.7%
Consumer Cyclical 9.4% Consumer Staple 3.0%
Energy 8.7% Transportation 1.3%
(1) The Small/Mid Cap Growth Fund benchmark is the Russell Mid Cap Growth Index
from May 1994 to April 1999 and the Russell 2500 Growth Index May 1999-
present.
* Total returns are for the period ended December 31, 2000, returns represent
past performance, assume reinvestment of all distributions, and are not
indicative of future performance. "Results may have been achieved during
market conditions or pursuing performance opportunities, including
investment in initial public offerings, that may not continue to occur in
the future." Investment returns and principal value of fund shares will
fluctuate that shares, when redeemed, may be worth more or less than their
original cost. Sector investing entail special risks as discussed in the
prospectus. The performance of the fund on this page is reported net of
Trust level charges (i.e. investment management fees and operating
expenses). It does not reflect expense and charges of the applicable
separate accounts and variable products, all of which vary to a considerable
extent and are described in your product prospectus.
+ Source: MorningStar, Inc. Data as of 12/31/00. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for the sub-accounts of all
variable annuity and life products within the Morningstar variable universe
having a Mid Cap Growth and a Small-Cap Growth investment style. The peer
group represents a 50% weighting of the Mid Cap Growth category and a 50%
weighting of the Small Cap Growth category. Prior to May 1999, the peer
group represents the Mid Cap Growth investment category.
17
Inception: May 1, 1996
Small Cap Equity Fund (formerly the Small Cap Value Fund)
Capital Guardian Trust Company Management Team
Effective November 1, the Fund's sub-adviser changed to Capital Guardian Trust
Company.
The positioning of the Fund did not change since November and remains
overweight technology, media, and biotechnology companies, all of which hurt
relative performance significantly as these sectors fell the most in the recent
period.
One positive contributor to relative performance was the Fund's holdings in
the financial services sector, especially insurance companies, banks, and
investment management companies, which enjoyed the benefit of market rotation
into more stable sectors. These interest-rate-sensitive stocks also were helped
by the growing belief that the Federal Reserve would move to lower rates in
early 2001.
From a top-down perspective, small-cap stocks still represent good value
relative to large caps, and continue to trade at a large discount to them. We
feel the recent volatility in the small-cap universe is short-term oriented and
not related to the quality of individual companies within the universe. Looking
forward three to five years, the technology, media, and biotechnology companies
in the Fund are positioned to deliver superior results despite near-term
volatility, and we are enthusiastic about the potential for earnings growth of
our individual holdings. With financial services stocks having performed well
recently we would expect to reduce our holdings in some of these names.
[GRAPH]
Small Cap Equity Small Cap Equity
Benchmark(1) Fund
4/30/96 $10,000 $10,000
5/31/96 10,324 10,232
6/30/96 10,051 10,126
7/31/96 9,346 9,630
8/31/96 9,820 10,161
9/30/96 10,146 10,450
10/31/96 10,126 10,340
11/30/96 10,607 10,678
12/31/96 10,918 11,033
1/31/97 11,111 11,115
2/28/97 11,029 10,927
3/31/97 10,621 10,594
4/30/97 10,714 10,831
5/31/97 11,736 11,818
6/30/97 12,284 12,513
7/31/97 12,828 13,256
8/31/97 13,077 13,389
9/30/97 13,989 14,242
10/31/97 13,491 13,761
11/30/97 13,521 13,863
12/31/97 13,869 13,855
1/31/98 13,634 13,514
2/28/98 14,550 14,524
3/31/98 15,146 15,130
4/30/98 15,224 15,214
5/31/98 14,545 14,450
6/30/98 14,519 14,450
7/31/98 13,363 13,262
8/31/98 11,019 10,895
9/30/98 11,762 11,407
10/31/98 12,176 11,727
11/30/98 12,660 12,313
12/31/98 13,250 13,029
1/31/99 13,187 12,708
2/28/99 12,204 11,869
3/31/99 12,249 11,819
4/30/99 13,356 12,612
5/31/99 13,659 12,790
6/30/99 14,215 13,622
7/31/99 13,851 13,436
8/31/99 13,341 12,841
9/30/99 13,075 12,613
10/31/99 12,813 12,358
11/30/99 12,880 12,260
12/31/99 13,275 12,583
1/31/00 12,927 11,848
2/29/00 13,717 12,338
3/31/00 13,782 12,567
4/30/00 13,863 12,780
5/31/00 13,651 12,663
6/30/00 14,049 12,733
7/31/00 14,517 12,996
8/31/00 15,166 13,754
9/30/00 15,080 13,766
10/31/00 15,026 13,760
11/30/00 13,484 10,726
12/31/00 14,642 11,464
Top Ten Holdings (as of December 31, 2000)
---------------------------------------------------------------------------
% of six months ago
investments % of investments
EMCORE Corporation 1.8% N/A
Anaren Micro Circuits, Inc. 1.7% N/A
Everest Re Group, Ltd. 1.6% N/A
Polaris Industries Inc. 1.4% N/A
Fidelity National Financial, Inc. 1.2% 0.2%
Werner Enterprises, Inc. 1.2% 0.3%
About.com, Inc. 1.2% N/A
LTX Corp. 1.2% N/A
Trimeris, Inc. N/A N/A
First American Financial Corp. 1.2% N/A
Average Annual Total Returns*
---------------------------------------------------------------------------
Small Cap Small Cap Equity MorningStar
Equity Fund Benchmark(1) Peer Group+
----------- ---------------- ------------
1 Year -8.89% 10.32% 10.08%
3 Years -6.12 1.83 2.42
Since Inception (5/1/96) 2.97 8.51 N/A
Top Ten Sectors (as of December 31, 2000)
---------------------------------------------------------------------------
% of % of
investments investments
Technology 30.5% Retail 3.6%
Consumer Cyclical 16.2% Utility 3.2%
Health Care 11.3% Transportation 3.1%
Financial 10.2% Consumer Staple 2.2%
Capital Equipment 8.4% Basic Material 1.7%
(1) The Small Cap Equity Benchmark is 50% Russell 2000 and 50% Russell 2000
Value Index, May 1996 thru August 1999 and the Russell 2000 Value,
September 1999 thru October 2000 and thru the Russell 2000 Index October
2000 to present.
* Total returns are for the period ended December 31, 2000. Returns
represent past performance, assume reinvestment of all distributions and
are not indicative of future performance. "Results may have been achieved
during market conditions or pursuing performance opportunities, including
investment in initial public offerings, that may not continue to occur in
the future." Investment returns and principal value of fund shares will
fluctuate so that shares, when redeemed, may be worth more or less than
their original cost. Small-company investing entails special risks as
outlined in the prospectus. The performance of the fund on this page is
reported net of Trust level charges (i.e. investment management fees and
operating expenses). It does not reflect expense and charges of the
applicable separate accounts and variable products, all of which vary to
a considerable extent and are described in your product prospectus.
+ Source: MorningStar, Inc. Data as of 12/31/00. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for the sub-accounts of all
variable annuity and life products within the MorningStar variable
universe having a Small Cap Blend investment category. Prior to
November 2000, the peer group represents the Small Cap Value investment
category.
18
Inception: May 1, 1996
Small Cap Growth Fund
John Hancock Advisers, Inc. Bernice Behar
The fourth quarter brought yet another challenging environment for equity
investors. A steady stream of pessimistic news fueled the volatility. Many
companies, across a broad spectrum of industries, reported lower than expected
earnings or reduced future growth rates. This led investors to more value-
oriented sectors such as utilities, energy, financial services and certain
health care groups. The trend caused a wide divergence between growth and
value--a trend most pronounced in the small caps. The Fund was hurt by this
market environment and underperformed the benchmark declining (21.43)% versus
(20.2%) for the Russell 2000 Growth Index.
Our healthcare holdings produced mixed results. After many months of
impressive performance, biotechnology stocks stalled in October. Our sizeable
allocation hurt performance as they underperformed through quarter end.
Fortunately, we purchased many biotechnology names in early 2000 at prices
well below current levels. Recently, their Fundamental outlook has weakened.
As a result, we expect to lock-in current profits. We also owned several
strong performing health care services companies. These stocks benefited from
increased government reimbursement due to the Balanced Budget Refinement Act.
The more reasonable reimbursement levels improved profit margins and revenue
growth. In addition, patient volumes have increased as HMOs eased restrictions
on admissions. We remain positive on the longer-term position for these stocks
and expect maintain a focus to this group.
Technology stocks were among the weakest performers in the benchmark
declining over 36%. Lofty valuations coupled with a barrage of bad news caused
the dramatic sell-off. We were underweight which helped relative performance
versus our benchmark. Despite our reduced exposure, the sector's dismal
results adversely impacted absolute performance. We expect negative news to
continue through early 2001 extending the period of volatility. Accordingly,
we will continue to underweight this sector.
[GRAPH]
Russell 2000 Small Cap
Growth Index Growth Fund
5/1/96 $10,000 $10,000
5/31/96 10,513 10,599
6/28/96 9,830 10,294
7/31/96 8,629 9,480
8/30/96 9,268 10,298
9/30/96 9,745 11,151
10/31/96 9,325 10,170
11/29/96 9,585 9,976
12/31/96 9,771 9,950
1/31/97 10,016 10,302
2/28/97 9,411 9,638
3/31/97 8,746 8,962
4/30/97 8,645 8,763
5/30/97 9,944 9,781
6/30/97 10,281 10,514
7/31/97 10,808 11,205
8/29/97 11,132 11,571
9/30/97 12,020 12,817
10/31/97 11,298 11,834
11/28/97 11,029 11,387
12/31/97 11,036 11,370
1/1/98 10,889 11,170
2/27/98 11,850 12,062
3/31/98 12,348 12,788
4/30/98 12,423 12,730
5/29/98 11,521 11,856
6/30/98 11,639 12,366
7/31/98 10,667 11,537
8/31/98 8,205 8,966
9/30/98 9,037 9,701
10/30/98 9,509 10,230
11/30/98 10,247 11,424
12/31/98 11,174 13,017
1/29/99 11,677 13,456
2/26/99 10,609 12,384
3/31/99 10,986 13,341
4/30/99 11,956 13,873
5/28/99 11,975 13,626
6/30/99 12,606 14,903
7/31/99 12,217 15,022
8/31/99 11,760 14,920
9/30/99 11,987 15,236
10/31/99 12,294 16,337
11/30/99 13,593 18,479
12/31/99 15,988 22,179
1/31/00 15,840 21,633
2/29/00 19,526 27,928
3/31/00 17,474 25,551
4/30/00 15,709 21,939
5/31/00 14,333 19,338
6/30/00 16,184 23,398
7/31/00 14,797 21,153
8/31/00 16,354 23,673
9/30/00 15,541 22,478
10/31/00 14,279 20,010
11/30/00 11,686 16,004
12/31/00 12,401 17,425
Top Ten Holdings (as of December 31, 2000)
-----------------------------------------------------------------------------
% of six months ago
investments % of investments
Bindley Western Industries, Inc. 1.4% N/A
Corporate Executive Board Co. 1.3% 0.6%
LifePoint Hospitals, Inc. 1.3% N/A
Province Healthcare Co. 1.3% N/A
AmeriSource Health Corp. 1.3% N/A
NewField Exploration Co. 1.2% 0.5%
Fidelity National Financial, Inc. 1.2% N/A
Universal Compression Holdings 1.2% N/A
Affiliated Managers Group, Inc. N/A 0.4%
NPS Pharmaceuticals, Inc. 1.2% N/A
Average Annual Total Returns*
-----------------------------------------------------------------------------
Small Cap Russell 2000 MorningStar
Growth Fund Growth Index Peer Group+
----------- ------------ -----------
1 Year -21.43% -22.43% -9.18%
3 Years 15.30 3.96 15.10
Since Inception (5/1/96) 12.63 4.72 N/A
Top Ten Sectors (as of December 31, 2000)
-----------------------------------------------------------------------------
% of % of
investments investments
Technology 26.5% Energy 7.3%
Health Care 23.0% Capital Equipment 5.2%
Financial 11.7% Transportation 1.8%
Retail 7.7% Utility 0.9%
Consumer Cyclical 7.6% Basic Material 0.8%
* Total returns are for the period ended December 31, 2000. Returns represent
past performance, assume reinvestment of all distributions and are not
indicative of future performance. "Results may have been achieved during
market conditions or pursuing performance opportunities, including investment
in initial public offerings, that may not continue to occur in the future."
Investment returns and principal value of fund shares will fluctuate so that
shares, when redeemed, may be worth more or less than their original cost.
Small company investing entails special risks as outlined in the prospectus.
The performance of the fund on this page is reported net of Trust level
charges (i.e. investment management fees and operating expenses). It does not
reflect expense and charges of the applicable separate accounts and variable
products, all of which vary to a considerable extent and are described in
your product prospectus.
+ Source: MorningStar, Inc. Data as of 12/31/00. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for the sub-accounts of all
variable annuity and life products within the Morningstar variable universe
having a Small Growth investment category.
19
Inception: May 2, 1988
International Equity Index Fund
Independence International Associates, Inc. B. Greenleaf/D. Nolan
During the fourth quarter of 2000, The International Equity Index Fund
returned -3.80%, outperforming its custom blended benchmark return of -5.32%.
In gross total return terms, the Fund has tracked the Custom Benchmark within
18 basis points for the quarter. For the year 2000, the Fund tracked its
benchmark within 54 basis points in net terms and within 32 basis points in
gross terms. This resulting tracking error is well within our expectations.
The source of outperformance during this last quarter of 2000 was attributable
to exchange rate differences between the fund administrator and the MSCI Index
in order to value securities in the Fund. The difference set of exchange rates
accounted for 14 basis points of performance. The most noticeable rate
differences came from the Japanese yen, the British pound and the Euro. If the
same set of rates were used, the Fund would have performed the Custom Benchmark
within 2 basis points.
It was generally a weak fourth quarter for both the developed and the emerging
markets. Among the developed markets as measured by the MSCI EAFE GDP Index,
information technology and telecommunications related shares were the bottom
performers while consumer staples and materials related shares were the top
performers. Country performance ranged from +15% in Switzerland to -15% in
Japan. The emerging markets experienced the same results as the developed
countries. Information technology shares plunged while consumer staples
climbed. Twenty-three of the twenty-six MSCI emerging market country indices
declined during the quarter. Individual market performance ranged from +18% in
Poland to -32% in Russia.
Our performance objective is to approximately track the Custom Index of 90%
EAFE GDP Index and 10% MSCI Emerging Markets Index. We manage the Fund using a
risk model that allows us to identify and capture the risk characteristics of
the custom index. In this way we can avoid the expense associated with full
replication.
[GRAPH]
International International International International
Equity Equity Index Equity Equity Index
Index Fund Benchmark(1) Index Fund Benchmark(1)
12/31/90 $10,000 $10,000 1/31/96 $16,511 $15,958
1/31/91 10,153 10,326 2/29/96 16,698 16,015
2/28/91 10,749 11,436 3/29/96 16,857 16,360
3/28/91 10,888 10,752 4/30/96 17,482 16,839
4/30/91 10,934 10,861 5/31/96 17,304 16,533
5/31/91 11,188 10,977 6/28/96 17,343 16,630
6/28/91 10,602 10,173 7/31/96 16,607 16,148
7/31/91 11,128 10,676 8/30/96 16,737 16,187
8/30/91 11,239 10,461 9/30/96 17,050 16,620
9/30/91 11,327 11,054 10/31/96 16,945 16,454
10/31/91 11,522 11,213 11/29/96 17,703 17,112
11/27/91 11,261 10,692 12/31/96 17,748 16,897
12/31/91 12,337 11,247 1/31/97 17,441 16,309
1/31/92 12,307 11,010 2/28/97 17,507 16,579
2/28/92 12,284 10,619 3/31/97 17,181 16,644
3/31/92 11,722 9,922 4/30/97 17,303 16,736
4/30/92 11,689 9,971 5/30/97 18,761 17,828
5/29/92 12,020 10,642 6/30/97 19,732 18,816
6/30/92 11,792 10,141 7/31/97 20,353 19,125
7/31/92 11,724 9,884 8/29/97 18,135 17,700
8/31/92 11,595 10,508 9/30/97 19,446 18,695
9/30/92 11,554 10,304 10/31/97 16,811 17,263
10/30/92 11,492 9,766 11/28/97 16,806 17,090
11/30/92 11,973 9,861 12/31/97 16,856 17,244
12/31/92 12,134 9,915 1/31/98 16,868 18,037
1/29/93 12,208 9,917 2/27/98 18,163 19,199
2/26/93 12,146 10,220 3/31/98 18,900 19,794
3/31/93 12,549 11,114 4/30/98 19,405 19,954
4/30/93 12,627 12,172 5/29/98 19,520 20,241
5/28/93 13,268 12,433 6/30/98 19,757 20,436
6/30/93 13,151 12,241 7/31/98 19,918 20,708
7/30/93 13,383 12,672 8/31/98 17,384 17,985
8/31/93 14,132 13,359 9/30/98 16,844 17,488
9/30/93 14,317 13,061 10/30/98 18,667 19,440
10/29/93 15,240 13,466 11/30/98 19,571 20,453
11/30/93 14,670 12,292 12/31/98 20,365 21,281
12/31/93 16,053 13,181 1/29/99 20,410 21,309
1/31/94 16,164 14,299 2/26/99 19,719 20,644
2/28/94 15,975 14,262 3/31/99 20,753 21,736
3/31/94 15,142 13,650 4/30/99 21,547 22,614
4/29/94 15,427 14,233 5/28/99 20,504 21,434
5/31/94 15,608 14,155 6/30/99 21,561 22,516
6/30/94 15,205 14,359 7/30/99 22,067 23,077
7/29/94 15,555 14,499 8/31/99 22,268 23,238
8/31/94 16,275 14,846 9/30/99 22,425 23,524
9/30/94 15,937 14,381 10/29/99 23,177 24,307
10/31/94 16,256 14,863 11/30/99 24,199 25,314
11/30/94 15,192 14,153 12/31/99 26,652 27,853
12/30/94 15,048 14,245 1/31/00 25,088 26,488
1/31/95 14,208 13,700 2/29/00 25,943 27,407
2/28/95 14,450 13,665 3/31/00 26,643 28,158
3/31/95 14,975 14,522 4/28/00 24,930 26,342
4/28/95 15,426 15,072 5/31/00 24,449 25,710
5/31/95 15,741 14,896 6/30/00 25,308 26,812
6/30/95 15,590 14,638 7/31/00 24,105 25,466
7/31/95 16,456 15,553 8/31/00 24,338 25,736
8/31/95 15,988 14,963 9/29/00 23,159 24,439
9/29/95 16,215 15,260 10/31/00 22,395 23,638
10/31/95 15,933 14,854 11/30/00 21,420 22,583
11/30/95 16,007 15,271 12/31/00 22,009 23,139
12/31/95 16,255 15,890
Top Ten Holdings (as of December 31, 2000)
-----------------------------------------------------------------------------
% of six months ago
investments % of investments
Toyota Motor Corp. 1.8% 2.7%
Deutsche Telekom AG 1.7% 4.0%
Nippon Telegraph & Telephone Corp. 1.5% 3.3%
Allianz AG 1.5% 1.5%
Siemens AG 1.2% 1.3%
Vodafone AirTouch plc 1.2% N/A
Telecom Italia Mobile SpA 1.1% 1.9%
Muenchener Rueckversicherungs- 1.0% 0.7%
Gesellschaft AG
Total Fina SA 1.0% N/A
BP Amoco plc 1.0% 1.3%
Average Annual Total Returns*
-----------------------------------------------------------------------------
International International Equity MorningStar
Equity Index Fund Index Benchmark(1) Peer Group+
----------------- -------------------- -----------
1 Year -17.42% -16.93% -15.21%
3 Years 9.30 10.30 9.84
5 Years 6.25 7.81 9.60
10 Years 8.21 8.32 10.59
Top Ten Countries (as of December 31, 2000)
-----------------------------------------------------------------------------
% of % of
investments investments
Germany 13.5% Netherlands 2.9%
United Kingdom 10.7% Australia 2.8%
France 9.6% Sweden 1.9%
Italy 8.1% Switzerland 1.7%
Spain 3.9% Hong Kong 1.5%
(1)The International Equity Index Benchmark represents the MSCI EAFE from May
1998 to April 1998 and then MSCI EAFE GDP weighted from May 1998 to June 1999
and now 90% MSCI EAFE GDP weighted/10% MSCI Emerging Markets Free from July
1999 to present.
* Total returns are for the period ended December 31, 2000, returns represent
past performance, assume reinvestment of all distributions, and are not
indicative of future performance. "Results may have been achieved during
market conditions or pursuing performance opportunities that may not continue
to occur in the future." Investment returns and principal value of fund
shares will fluctuate so that shares, when redeemed, may be worth more or
less than their original cost. The performance of the fund on this page is
reported net of Trust level charges (i.e. investment management fees and
operating expenses). It does not reflect expense and charges of the
applicable separate accounts and variable products, all of which vary to a
considerable extent and are described in your product prospectus. There are
special risks associated with international investing, including currency
fluctuations, political and economic instability, foreign taxation and
different accounting standards, as outlined in the current prospectus.
+ Source: MorningStar, Inc. Data as of 12/31/00. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for the sub-accounts of all
variable annuity and life products within the Morningstar variable universe
having a 90% weighting of the Foreign Stock, Large Cap category and a 10%
weighting of the Diversified Emerging Markets category. Prior to July 1999,
the peer group represents the Foreign Stock, Large Cap category.
20
Inception: May 1, 1996
International Opportunities Fund
T. Rowe Price International, Inc. Warren/Ford/Seddan/Bickford-Smith
International stocks fell sharply during the second half of 2000,
contributing to steep losses for the full year. In the first quarter, telecom,
media, and technology stocks carried over their heady performance of 1999. But
leadership began to change in the spring as a severe correction hit these
sectors, while the more defensive consumer staple, pharmaceutical, and banking
stocks found their footing. The recovery in defensive issues, however, failed
to compensate for the steep decline in tech stocks.
Broader concerns weighing on the equities markets included slower economic
growth, high oil prices, and euro weakness. Economic growth eased in Europe,
but the euro staged a recovery in the fourth quarter, cutting its losses to
just 6% against the U.S. dollar for the year. In Japan the consumer sector
remained weak and rising bankruptcies failed to alleviate concerns about
unemployment. Economic growth in the rest of Asia was strong, although
financial instability and political turmoil plagued Korea and Taiwan.
Fund performance during the 12-month period ended December 31, 2000
underperformed both the MSCI EAFE Index and the Lipper Variable Annuity
Average. The Fund's focus on telecom, media, and technology stocks and its
lower exposure to recovering defensive shares hurt results compared with the
benchmarks. The Fund's underweighted position in Japan aided results, but
underweighting Switzerland (where the financial sector was strong) and
overweighting Taiwan and Korea (where technology stocks were weak) crimped
performance. Within the telecom, media, and technology sectors, however, your
Fund's stocks outperformed those of the index.
[GRAPH]
International International
Opportunities Opportunities
Benchmark(1) Fund
4/30/96 $10,000 $10,000
5/31/96 9,818 10,024
6/30/96 9,876 10,129
7/31/96 9,590 9,820
8/31/96 9,613 9,971
9/30/96 9,870 10,191
10/31/96 9,771 10,150
11/30/96 10,162 10,609
12/31/96 10,034 10,672
1/31/97 9,685 10,544
2/28/97 9,846 10,672
3/31/97 9,884 10,659
4/30/97 9,939 10,701
5/31/97 10,588 11,332
6/30/97 11,174 11,796
7/31/97 11,357 12,113
8/31/97 10,511 10,992
9/30/97 11,102 11,719
10/31/97 10,252 10,863
11/30/97 10,149 10,859
12/31/97 10,240 10,880
1/31/98 10,711 11,254
2/28/98 11,401 11,932
3/31/98 11,755 12,346
4/30/98 11,850 12,435
5/31/98 11,795 12,391
6/30/98 11,887 12,416
7/31/98 12,011 12,560
8/31/98 10,525 10,980
9/30/98 10,205 10,715
10/31/98 11,272 11,681
11/30/98 11,852 12,199
12/31/98 12,323 12,612
1/31/99 12,309 12,484
2/28/99 12,034 12,268
3/31/99 12,615 12,769
4/30/99 13,246 13,241
5/31/99 12,623 12,623
6/30/99 13,204 13,113
7/31/99 13,514 13,359
8/31/99 13,561 13,495
9/30/99 13,653 13,582
10/31/99 14,161 14,039
11/30/99 14,728 15,022
12/31/99 16,133 16,901
1/31/00 15,257 15,834
2/29/00 15,669 16,712
3/31/00 16,258 16,885
4/30/00 15,351 15,946
5/31/00 14,958 15,446
6/30/00 15,595 16,251
7/31/00 14,979 15,693
8/31/00 15,165 16,034
9/30/00 14,323 15,020
10/31/00 13,868 14,414
11/30/00 13,245 13,656
12/31/00 13,698 14,136
Top Ten Holdings (as of December 31, 2000)
-----------------------------------------------------------------------------
% of six months ago
investments % of investments
GlaxoSmithKline plc 2.6% N/A
Royal Bank of Scotland Group 2.3% N/A
Nokia Oyj 2.2% 1.9%
Vodafone AirTouch plc 1.9% N/A
Total Fina SA 1.8% N/A
Shell Transport & Trading Co. plc 1.8% 1.2%
ING Groep NV 1.6% 1.0%
Reed International plc 1.5% 0.7%
Vivendi Universal SA N/A N/A
Granada Compass plc 1.5% N/A
Average Annual Total Returns*
-----------------------------------------------------------------------------
Intl. Opportunities Intl. Opportunities MorningStar
Fund Benchmark(1) Peer Group+
----------- ------------ -----------
1 Year -16.36% -15.09% -15.51%
3 Years 9.12 10.18 10.19
Since Inception (5/1/96) 7.70 6.98 N/A
Top Ten Countries (as of December 31, 2000)
-----------------------------------------------------------------------------
% of % of
investments investments
Japan 17.0% Switzerland 3.3%
France 10.6% Sweden 3.1%
Netherlands 5.5% Spain 2.7%
Italy 4.4% Hong Kong 2.4%
Germany 3.4% Finland 2.1%
(1)The International Opportunities Benchmark represents the MSCI EAFE from may
1996 to December 1998 and the MSCI All Country World Free Ex. US from January
1999 to present.
* Total returns are for the period ended December 31, 2000. Returns represent
past performance, assume reinvestment of all distributions and are not
indicative of future performance. "Results may have been achieved during
market conditions or pursuing performance opportunities, including investment
in initial public offerings, that may not continue to occur in the future."
Investment returns and principal value of fund shares will fluctuate so that
shares, when redeemed, may be worth more or less than their original cost.
There are special risks associated with international investing including
currency fluctuations, political and economic instability, foreign taxation
and different accounting standards, as outlined in the current prospectus.
The performance of the fund on this page is reported net of Trust level
charges (i.e. investment management fees and operating expenses). It does not
reflect expense and charges of the applicable separate accounts and variable
products, all of which vary to a considerable extent and are described in
your product prospectus.
+ Source: MorningStar, Inc. Data as of 12/31/00. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for the sub-accounts of all
variable annuity and life products within the Morningstar variable universe
having a Foreign Stock, Large Cap investment category.
21
Inception: August 31, 1999
International Equity Fund
Goldman Sachs Asset Management Maeda/Noble/Orchard
During the one-year reporting period the International Equity Fund generated a
total cumulative return of -14.37% at net asset value versus the -13.96% total
cumulative return of the Fund's benchmark, the MSCI EAFE Index. As these
returns indicate, it has been an extremely challenging period in the financial
markets. During the period we strategically moved to reduce the size of our
sector positions (overweight or underweight) in response to high market
volatility and intra-market rotation. We have focused instead on our key
strength, bottom-up stock selection.
Very few equity markets posted positive returns during the year. From a
country standpoint the Fund's strongest absolute returns came from Sweden and
Switzerland, while our stocks originating from Japan and The Netherlands
generated weak performance. On a sector basis, our Consumer Staples and
Utilities stocks enhanced returns, while our Telecom Services, Information
Technology and Industrial stocks produced poor results. In terms of individual
stocks, Epcos (0.0% of the total Fund at 12/31/00), Reuters Group (0.6%) and
Unilever (1.6%) were examples of stocks that enhanced performance. Conversely,
Advantest (0.2%), Rohm Co. (0.6%), TDK Corp. (0.0%) and United Pan-Europe
Communications (0.3%) all produced disappointing results.
[GRAPH]
International MSCI EAFE
Equity Fund Index
8/31/99 $10,000 $10,000
9/30/99 9,936 10,103
10/31/99 10,308 10,484
11/30/99 11,104 10,851
12/31/99 12,149 11,826
1/31/00 11,524 11,077
2/29/00 12,106 11,377
3/31/00 12,440 11,820
4/30/00 11,838 11,201
5/31/00 11,567 10,930
6/30/00 11,852 11,359
7/31/00 11,411 10,886
8/31/00 11,366 10,983
9/30/00 10,814 10,450
10/31/00 10,580 10,205
11/30/00 10,129 9,825
12/31/00 10,403 10,177
Top Ten Holdings (as of December 31, 2000)
--------------------------------------------------------------------------
% of six months ago
investments % of investments
Vodafone AirTouch plc 2.5% 1.4%
GlaxoSmithKline plc 2.1% N/A
Nokia Oyj 2.0% 2.5%
Nestle SA 1.9% 0.6%
Royal Dutch Petroleum Co. 1.7% N/A
ING Groep NV 1.7% 0.8%
BP Amoco plc 1.6% 1.1%
Unilever plc 1.5% 0.4%
Telefonaktiebolaget LM Ericsson AB N/A N/A
Roche Holding AG 1.4% 0.9%
Average Annual Total Returns*
---------------------------------------------------------------------------
International MSCI EAFE MorningStar
Equity Fund Index Peer Group+
------------- ------------ -----------
1 Year -14.37% -13.95% -15.51%
Since inception (8/31/99) 3.01 1.32 N/A
Top Ten Countries (as of December 31, 2000)
---------------------------------------------------------------------------
% of % of
investments investments
United Kingdom 20.0% Sweden 4.7%
France 10.1% Italy 2.7%
Netherlands 7.3% Finland 2.6%
Switzerland 6.6% Australia 2.4%
Germany 6.0% Spain 2.3%
* Total returns are for the period ended December 31, 2000, returns represent
past performance, assume reinvestment of all distributions, and are not
indicative of future performance. "Results may have been achieved during
market conditions or pursuing performance opportunities, including investment
in initial public offerings, that may not continue to occur in the future."
Investment returns and principal value of fund shares will fluctuate so that
shares, when redeemed, may be worth more or less than their original cost.
The performance of the fund on this page is reported net of Trust level
charges (i.e. investment management fees and operating expenses). It does not
reflect expense and charges of the applicable separate accounts and variable
products, all of which vary to a considerable extent and are described in
your product prospectus. There are special risks associated with
international investing, including currency fluctuations, political and
economic instability, foreign taxation and different accounting standards,
as outlined in the current prospectus.
+ Source: MorningStar, Inc. Data as of 12/31/00. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for all variable annuity and
life sub-accounts within the Morningstar variable universe having a
Foreign Stock with Large Cap investment category.
22
Inception: May 1, 1998
Emerging Markets Equity Fund
MSDW INV. MGMT., INC. Meyer/Ramachandran
The Fund declined 20.41% during the quarter versus a decline of 13.32% for
the MSCI EMF Index. Underperformance was attributable to both stock selection
and country allocation. Stock selection in Mexico, South Korea, India, Israel,
and Turkey detracted from relative performance. Our overweight stance in South
Korea (index return, -27.1%), Russia (-32.2%) and our underweight positions in
Chile (-3.9%), Malaysia (-3.1%) and South Africa (+4.5%) detracted from
performance. Our underweight position in Taiwan (-26.2%) contributed
positively to relative performance.
In the near term, the emerging markets continue to suffer from fears of a
significant global economic slowdown and incredibly high levels of global
market volatility. However, we continue to be encouraged by trends in economic
recovery, greater fiscal discipline, and improved privatization prospects. We
are overweight Brazil and market weight Mexico, as we believe equities in
these markets shall fare well in the near term given a more benign global
backdrop and a supportive macroeconomic environment. We are currently
underweight the Latin American region as a whole due to underweights in the
smaller markets. We expect to maintain our underweight in Asia in the near
term. Within Asia, our largest overweight is in South Korea, which we believe
shall benefit in the longer term restructuring of its corporate and banking
sectors. We are underweight Emerging Europe, the Middle East and Africa, with
various overweight and underweight positions within the region. Our largest
overweight there is in Israel, where exporters of technology-related products
and services remain extremely competitive, possess excellent management and
are global leaders in their respective areas. We have a significant
underweight stance in Greek equities as we believe the market remains
expensive vis-a-vis other emerging markets. We expect to maintain our
underweight stance in South Africa, as we believe equities are likely to be
negatively affected in the near term by a downturn in the commodity cycle.
[GRAPH]
Emerging Markets MSCI Emerging
Equity Fund Markets Free Index
4/30/98 $10,000 $10,000
5/31/98 8,688 8,630
6/30/98 7,960 7,725
7/31/98 8,533 7,970
8/31/98 5,845 5,666
9/30/98 6,556 6,025
10/31/98 7,081 6,659
11/30/98 7,668 7,213
12/31/98 7,113 7,109
1/31/99 6,934 6,994
2/28/99 6,732 7,062
3/31/99 7,578 7,993
4/30/99 8,290 8,982
5/31/99 7,990 8,929
6/30/99 9,228 9,943
7/31/99 8,932 9,672
8/31/99 8,752 9,760
9/30/99 8,575 9,431
10/31/99 9,056 9,631
11/30/99 10,560 10,495
12/31/99 12,901 11,830
1/31/00 12,556 11,901
2/29/00 13,603 12,058
3/31/00 13,830 12,118
4/30/00 12,048 10,969
5/31/00 11,235 10,516
6/30/00 12,012 10,886
7/31/00 11,066 10,326
8/31/00 11,162 10,377
9/30/00 9,707 9,471
10/31/00 8,762 8,784
11/30/00 7,692 8,017
12/31/00 7,726 8,210
Top Ten Holdings (as of December 31, 2000)
--------------------------------------------------------------------------
% of six months ago
investments % of investments
Samsung Electronics 5.5% 7.4%
Telefonos de Mexico SA 4.3% 4.1%
Korea Telecom Corp. 3.5% 2.0%
ECI Telecommunications, Ltd. 3.4% 1.4%
China Telecom (Hong Kong), Ltd. 3.2% 1.8%
SK Telecom Co., Ltd. 3.0% 5.0%
Check Point Software Technologies, Ltd. 2.0% 0.6%
Infosys Technologies, Ltd. 2.0% 2.6%
Teva Pharmaceutical Industries, Ltd. 1.9% N/A
Petroleo Brasileiro SA 1.4% 0.3%
Average Annual Total Returns*
---------------------------------------------------------------------------
Emerging Markets MSCI Emerging MorningStar
Equity Fund(1) Markets Free Index Peer Group+
-------------------- ------------------ -----------
1 Year -40.11% -30.61% -31.75%
Since Inception
(5/1/98) -9.21 -7.14 N/A
Top Ten Countries (as of December 31, 2000)
---------------------------------------------------------------------------
% of % of
investments investments
South Korea 15.3% Hong Kong 6.7%
Israel 11.6% South Africa 4.8%
Mexico 11.1% Soviet Union 2.7%
Taiwan 9.3% Turkey 2.3%
India 7.2% Poland 1.9%
(1) Returns reflect extra-ordinary capital contribution of $445,000 in
June 1999
* Total returns are for the period ended December 31, 2000. Returns represent
past performance, assume reinvestment of all distributions and are not
indicative of future performance. "Results may have been achieved during
market conditions or pursuing performance opportunities, including
investment in initial public offerings, that may not continue to occur in
the future." Investment returns and principal value of fund shares will
fluctuate so that shares, when redeemed, may be worth more or less than
their original cost. International investing entails special risks as
outlined in the prospectus. The performance of the fund on this page is
reported net of Trust level charges (i.e. investment management fees and
operating expenses). It does not reflect expense and charges of the
applicable separate accounts and variable products, all of which vary to a
considerable extent and are described in your product prospectus.
+ Source: MorningStar, Inc. Data as of 12/31/00. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for the sub-accounts of all
variable annuity and life products within the Morningstar variable universe
having a Diversified Emerging Markets investment category.
23
Inception: May 16, 1988
Real Estate Equity Fund
Independence Investment Associates, Inc. J. DeSantis/T. Spicer
MSDW Inv. Mgmt., Inc. T. Bigman/D. Funke
Effective June 30, the Fund was modified to a multi-managed investment
approach.
The Real Estate Equity Fund is multi-manager fund with two sub-advisers each
of which employs its own independent investment approach in managing its
portion of the Fund. The two managers employ a distinct and complementary
investment strategy. The multi-manager seeks to produce more consistent
investment returns over market cycles and to reduce the risk of any one
manager or strategy being out of favor in certain market environments.
IIA selects real estate stocks using a combination of bottom-up fundamental
equity research and quantitative tools. Real estate stocks are purchased that
are undervalued relative to the stock's history and have improving earnings
growth prospects.
Morgan Stanley Dean Witter (MSDW) uses a combination of top down market
analysis to identify undervalued real estate property sectors and geographic
regions and fundamental, bottom-up equity and real estate research to select
stocks that attractively priced relative to the underlying real estate value.
As of December 31, 2000, IIA managed approximately 49% and MSDW managed
approximately 51% of the Fund's assets. In the fourth quarter of 2000, the
Fund returned 4.95% versus 4.61% for the Wilshire Real Estate Securities
Index.
Independence Investment Associates, Inc.
To say the least, the year 2000 was a rewarding year for real estate
investors with the sector substantially outperforming the broad market and
returns exceeding 30%. The year began with an extension of the 1999 market in
which large cap, growth stocks continued to outperform value stocks by
historical proportions. Returns were dominated by technology and
telecommunications stocks while other sectors lagged significantly. In March,
however, this trend finally reversed as technology and telecommunications
names began to falter based on their inability to meet the inflated
expectations supporting valuation extremes. At the same time, many of the
recently under-appreciated and under-valued sectors, including REITs and
utilities, began to lead the market as the predictability of earnings growth
began to once again matter to investors. This was evident as REIT mutual funds
saw net inflows of $528 million for the year.
From a fundamental standpoint, real estate markets should remain healthy
going forward. These securities have solid and highly predictable earnings and
cash flow prospects. Their valuations relative to this growth are fair to
attractive. The sector has high current dividend yields and there are
expectations of rising payout announcements. Real estate supply and demand
will remain in approximate equilibrium and rent growth should continue to
outpace inflation. Additionally, REIT management's are committed to
maintaining conservative balance sheets with a continued focus on capital
recycling. With these characteristics in place, we believe REIT's will be a
sound investment into next year.
It was a difficult, emotional year for the stock market, yet we were pleased
to deliver a competitive return on your portfolio. These results were achieved
by sticking to our philosophy that cheap stocks with improving fundamentals
are attractive. We feel confident that with our unique blend of strong
fundamental research, a disciplined investment philosophy and process, and
strong risk control position us well to have another successful year in 2001.
MSDW Inv. Mgmt., Inc.
Modest outperformance resulted primarily from top-down sector allocation and
to a lesser degree by outperformance from stock selection. An overweight to
the manufactured home community sector--the top performer for the month--and
an underweight to the mixed office and industrial sector provided a positive
impact on performance. An overweight to owners of office space, an
underperforming sector, and an underweight to hotels, an outperforming sector,
detracted from performance. Bottom-up outperformance was strongest in the
lodging sector and in the multifamily sector. Bottom-up underperformance in
the office sector was a result of weaker performance from the companies with
concentrations on the West Coast and in markets with tech-led demand.
The top-down weightings in the Fund remain similar to last quarter with a
modest shift to a more defensive stance within the sector weightings. We
increased our overweighting to central business district and coastal office
markets as a large gap exists between lease rates and current market rents and
vacancy rates remain below equilibrium. We also added to the defensive
apartment and self storage sectors. We reduced our retail weighting to reflect
the continuation of oversupply and retailer problems.
We believe the outlook for the REIT market continues to be favorable. Given
the declining levels of construction versus total supply outstanding and low
vacancy rates, we believe the real estate market is prepared for a slowdown in
the economy. Based on the current discount to its underlying property value of
7.5% and the sector's defensive characteristics we believe the sector should
be able to produce its historical average returns, which investors may find
attractive given the recent volatility in the equity markets.
24
Inception: May 16, 1988
Real Estate Equity Fund
Independence Investment Associates, Inc. J. DeSantis/T. Spicer
MSDW Inv. Mgmt., Inc. T. Bigman/D. Funke
[GRAPH]
Wilshire Wilshire
Real Estate Real Estate Real Estate Real Estate
Equity Fund Index Equity Fund Index
12/31/90 $10,000 $10,000 1/31/96 $21,232 $17,391
1/31/91 11,297 10,973 2/29/96 21,455 17,735
2/28/91 11,644 11,618 3/29/96 21,648 17,879
3/28/91 12,582 12,653 4/30/96 21,575 17,959
4/30/91 12,612 12,551 5/31/96 21,976 18,360
5/31/91 12,972 12,745 6/28/96 22,434 18,727
6/28/91 12,517 12,117 7/31/96 22,364 18,560
7/31/91 12,507 12,066 8/30/96 23,307 19,349
8/30/91 12,556 11,920 9/30/96 23,951 19,833
9/30/91 12,709 11,784 10/31/96 24,574 20,370
10/31/91 12,483 11,519 11/29/96 25,424 21,216
11/27/91 12,242 11,137 12/31/96 27,928 23,480
12/31/91 13,351 12,003 1/31/97 28,235 23,815
1/31/92 13,882 12,569 2/28/97 28,212 23,830
2/28/92 13,732 12,535 3/31/97 28,051 23,911
3/31/92 13,690 12,264 4/30/97 27,206 23,138
4/30/92 13,508 12,060 5/30/97 28,058 23,828
5/29/92 13,902 12,108 6/30/97 29,497 25,010
6/30/92 13,551 11,744 7/31/97 30,290 25,832
7/31/92 13,950 11,787 8/29/97 30,098 25,641
8/31/92 13,992 11,609 9/30/97 32,714 28,170
9/30/92 14,338 12,051 10/31/97 31,535 26,972
10/30/92 14,594 12,180 11/28/97 31,937 27,514
11/30/92 14,766 12,284 12/31/97 32,738 28,128
12/31/92 15,489 12,886 1/31/98 31,808 27,731
1/29/93 16,687 13,782 2/27/98 31,245 27,377
2/26/93 17,422 14,449 3/31/98 32,032 27,916
3/31/93 18,644 15,418 4/30/98 31,031 27,036
4/30/93 17,618 14,544 5/29/98 30,816 26,777
5/28/93 17,334 14,316 6/30/98 30,718 26,635
6/30/93 17,686 14,691 7/31/98 28,640 24,781
7/30/93 17,926 14,989 8/31/98 26,056 22,206
8/31/93 18,045 15,301 9/30/98 27,852 23,450
9/30/93 19,100 15,997 10/30/98 27,157 23,129
10/29/93 18,744 15,546 11/30/98 27,542 23,564
11/30/93 17,937 14,868 12/31/98 27,269 23,227
12/31/93 18,167 14,850 1/29/99 26,522 22,723
1/31/94 18,598 15,296 2/26/99 25,874 22,543
2/28/94 19,368 15,921 3/31/99 25,744 22,421
3/31/94 18,787 15,184 4/30/99 28,471 24,811
4/29/94 18,911 15,354 5/28/99 29,218 25,231
5/31/94 19,294 15,674 6/30/99 28,910 24,802
6/30/94 18,784 15,365 7/30/99 27,946 23,852
7/29/94 18,677 15,400 8/31/99 27,819 23,494
8/31/94 18,703 15,390 9/30/99 26,495 22,435
9/30/94 18,598 15,133 10/29/99 25,940 22,017
10/31/94 17,801 14,579 11/30/99 25,735 21,672
11/30/94 17,200 14,009 12/31/99 26,809 22,486
12/30/94 18,687 15,094 1/31/00 26,846 22,579
1/31/95 18,042 14,607 2/29/00 26,274 22,147
2/28/95 18,421 15,064 3/31/00 27,683 23,117
3/31/95 18,471 15,151 4/28/00 29,309 24,766
4/28/95 18,235 15,042 5/31/00 29,708 25,063
5/31/95 19,010 15,540 6/30/00 30,474 25,908
6/30/95 19,312 15,811 7/31/00 33,484 28,234
7/31/95 19,677 16,065 8/31/00 32,388 27,218
8/31/95 19,813 16,261 9/29/00 33,806 28,102
9/29/95 20,286 16,560 10/31/00 32,329 26,883
10/31/95 19,603 16,047 11/30/00 33,026 27,487
11/30/95 19,683 16,214 12/31/00 35,465 29,398
12/31/95 20,988 17,154
Top Ten Holdings (as of December 31, 2000)
---------------------------------------------------------------------------
% of six months ago
investments % of investments
Equity Office Properties Trust 5.0% 4.1%
Avalonbay Communities, Inc. 4.4% 4.2%
Equity Residential Properties Trust 4.3% 4.3%
Boston Properties, Inc. 4.2% N/A
CarrAmerica Realty Corp. 4.0% 2.1%
Spieker Properties, Inc. 3.6% 3.9%
Simon Property Group, Inc. 3.5% 2.3%
Public Storage, Inc. 3.3% 2.1%
Archstone Communities Trust N/A N/A
Prologis Trust 3.2% 1.8%
Average Annual Total Returns*
---------------------------------------------------------------------------
Real Estate Wilshire Real MorningStar
Equity Fund Estate Index Peer Group+
--------------- ------------- -----------
1 Year 31.29% 30.74% 27.22%
3 Years 2.70 1.48 2.00
5 Years 11.06 11.38 10.92
10 Years 13.50 10.82 12.31
Top Industries (as of December 31, 2000)
---------------------------------------------------------------------------
% of
investments
Real Estate Investment Trust 95.9%
Real Estate Development 2.6%
Real Estate Operations 1.5%
* Total returns are for the period ended December 31, 2000. Returns
represent past performance, assume reinvestment of all distributions and
are not indicative of future performance. "Results may have been achieved
during market conditions or pursuing performance opportunities that may
not continue to occur in the future." Investment returns and principal
value of fund shares will fluctuate so that shares, when redeemed, may be
worth more or less than their original costs. Sector investing entails
special risks as discussed in the prospectus. The performance of the
fund on this page is reported net of Trust level charges (i.e.
investment management fees and operating expenses). It does not reflect
expense and charges of the applicable separate accounts and variable
products, all of which vary to a considerable extent and are described
in your product prospectus.
+ Source: MorningStar, Inc. Data as of 12/31/00. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for all variable annuity and
life sub-accounts within the MorningStar variable universe having a
Speciality Real Estate investment category.
25
Inception: March 29, 1986
Managed Fund
Independence Investment Associates, Inc. J. Forrelli/J. Leu
Capital Guardian Trust Company Management Team
Effective November 1, the Fund was modified to a multi-managed investment
approach.
The Managed Fund is a multi-manager fund with two sub-advisers, each of which
employs its own investment approach and independently manages its portion of
the Fund. The two managers employ a distinct and complementary investment
strategy. The multi-manager approach seeks to produce more consistent
investment returns over market cycles and to reduce the risk of any one
manager or strategy being out of favor in certain market environments.
Independence has a normal target mix of 60% stocks and 40% bonds and selects
stocks and bonds using a combination of fundamental equity research and
quantitative tools Capital Guardian has a normal target of 70% stocks and 30%
bonds and selects stocks and bonds using a fundamental, research-driven
approach. Capital Guardian also employs a multiple-manager approach by which
each portfolio manager and the research analysts as a group each manage a
separate portion of the portfolio to capture the highest conviction ideas of
the investment team.
As of December 31, 2000, IIA managed approximately 84% and Capital Guardian
managed approximately 16% of the Fund's assets. The Fund returned 0.03%
compared to -0.99% for the benchmark.
Independence Investment Associates, Inc.
We are pleased to report that your portfolio ended a difficult and volatile
year ahead of its benchmark.
We were able to add value above the S&P 500 through solid stock selection
during the fourth quarter. Health care names such as Bristol Myers and Merck
were especially strong, due to their consistent and reliable earnings growth.
Financial stocks also performed well, driven higher by the sentiment that the
Fed will soon begin to cut interest rates. Finally, many retailers, such as
TJX and Kohls, came back strong in the fourth quarter.
The domestic fixed income portion of your portfolio outperformed the Lehman
Aggregate index during the quarter due to its overweight in agency bonds as
spreads tightened. The domestic fixed income portion benefited from its
overweight in finance, which was the stronger-performing corporate sector.
Your bond portfolio's international bond exposure was raised to 20% during the
quarter. The exposure to international bonds also had a positive impact on
your portfolio's performance.
The pressure on US corporate profits will continue into 2001. We project flat
corporate earnings in 2001, followed by a rebound in 2002. We expect US GDP to
increase 2% in 2001 after roaring ahead by 5% in 2000. A better environment
will unfold later in 2001 as central banks led by the US Fed begin to ease and
investors look past the slowdown. We also remain constructive on the fixed
income markets. Shorter-term interest rates should decline further as the
economy continues to moderate. Looking forward, corporate bonds will be helped
by a more accommodative Fed and a steepening yield curve. Deteriorating
fundamentals in the short term will make issue and sector selection critical.
Capital Guardian Trust Company
Overweighting stocks versus bonds hindered returns in the fourth quarter.
Within U.S. equities, owning significantly less in technology-related stocks
than the index was beneficial to returns. Holding several software stocks that
bucked the downward trend also helped. Over the quarter we reduced our
exposure to the communications services and equipment areas and increased our
exposure to food, beverage, drug, and semi-conductor-related companies.
Within the fixed-income Fund returns within sectors were good, though our
sector mix worked against us. Our overweight position in corporate securities
hindered relative returns. Duration was kept close to neutral, though more
importantly, we increased our exposure to the intermediate part of the yield
curve, which was helpful.
We are continuing to shift assets away from fixed income and toward U.S.
equities. Stock prices and interest rates have both declined significantly,
bringing equity valuations back to reasonable levels. From a bottom-up view,
our U.S. equity analysts are finding attractive opportunities. While we are
optimistic about equities in general, we continue to have concerns in the
technology, media, and telecommunications area, and another downturn would not
surprise us. Earnings estimates for these companies might be lowered further,
given the cooler economic environment.
Bonds, on the other hand, have rallied and real yields have dropped from near
the top of their traditional range to near the bottom. While we were early in
shifting away from bonds, we believe the market has now fully priced in a
major economic slowdown. Within our bond Funds we have an emphasis on
corporate securities. While government bonds have led the rally, spreads to
corporate securities are as wide or wider than in the early 1990s and have
much room for improvement.
26
Inception: March 29, 1986
Managed Fund
Independence Investment Associates, Inc. J. Forelli/J. Leu
Capital Guardian Trust Company Management Team
[GRAPH]
Managed Fund Managed Benchmark(1)
12/31/90 $10,000 $10,000
01/31/91 10,282 10,277
02/28/91 10,683 10,689
03/28/91 10,836 10,854
04/30/91 10,889 10,931
05/31/91 11,166 11,191
06/28/91 10,876 10,929
07/31/91 11,134 11,254
08/30/91 11,400 11,515
09/30/91 11,433 11,540
10/31/91 11,576 11,668
11/27/91 11,420 11,491
12/31/91 12,198 12,341
01/31/92 12,009 12,135
02/28/92 12,093 12,244
03/31/92 11,938 12,090
04/30/92 12,190 12,303
05/29/92 12,364 12,455
06/30/92 12,401 12,457
07/31/92 12,746 12,866
08/31/92 12,649 12,794
09/30/92 12,808 12,956
10/30/92 12,688 12,879
11/30/92 12,941 13,090
12/31/92 13,139 13,289
01/29/93 13,307 13,483
02/26/93 13,509 13,715
03/31/93 13,753 13,887
04/30/93 13,548 13,770
05/28/93 13,751 13,953
06/30/93 13,957 14,135
07/30/93 13,941 14,146
08/31/93 14,413 14,579
09/30/93 14,469 14,551
10/29/93 14,636 14,729
11/30/93 14,497 14,575
12/31/93 14,663 14,696
01/31/94 15,006 15,052
02/28/94 14,608 14,685
03/31/94 14,180 14,185
04/29/94 14,253 14,219
05/31/94 14,255 14,322
06/30/94 14,113 14,129
07/29/94 14,431 14,504
08/31/94 14,655 14,803
09/30/94 14,346 14,513
10/31/94 14,409 14,671
11/30/94 14,186 14,388
12/30/94 14,336 14,541
01/31/95 14,605 14,869
02/28/95 15,043 15,330
03/31/95 15,239 15,609
04/28/95 15,578 15,945
05/31/95 16,175 16,594
06/30/95 16,412 16,856
07/31/95 16,673 17,104
08/31/95 16,873 17,237
09/29/95 17,373 17,687
10/31/95 17,407 17,786
11/30/95 17,966 18,323
12/29/95 18,220 18,627
01/31/96 18,501 19,005
02/29/96 18,424 18,895
03/29/96 18,445 18,907
04/30/96 18,482 18,980
05/31/96 18,704 19,208
06/28/96 18,882 19,377
07/31/96 18,468 18,968
08/30/96 18,626 19,146
09/30/96 19,211 19,855
10/31/96 19,679 20,359
11/29/96 20,434 21,320
12/31/96 20,173 20,992
01/31/97 20,651 21,655
02/28/97 20,722 21,766
03/31/97 20,239 21,182
04/30/97 20,787 21,970
05/30/97 21,389 22,748
06/30/97 21,969 23,392
07/31/97 23,211 24,678
08/29/97 22,554 23,854
09/30/97 23,311 24,694
10/31/97 23,079 24,479
11/28/97 23,632 25,110
12/31/97 23,949 25,457
01/31/98 24,214 25,770
02/27/98 25,313 26,865
03/31/98 26,249 27,725
04/30/98 26,427 27,947
05/29/98 26,341 27,765
06/30/98 27,082 28,537
07/31/98 26,802 28,377
08/31/98 24,292 26,101
09/30/98 25,127 27,349
10/30/98 26,464 28,626
11/30/98 27,569 29,731
12/31/98 28,838 30,796
01/29/99 29,276 31,655
02/26/99 28,479 30,844
03/31/99 29,086 31,653
04/30/99 29,923 32,428
05/28/99 29,450 31,854
06/30/99 30,496 32,873
07/30/99 29,856 32,203
08/31/99 29,669 32,100
09/30/99 29,293 31,721
10/29/99 30,426 32,971
11/30/99 30,621 33,373
12/31/99 31,463 34,488
01/31/00 30,286 33,401
02/29/00 29,874 33,184
03/31/00 32,026 35,308
04/28/00 31,551 34,630
05/31/00 31,278 34,197
06/30/00 31,845 34,987
07/31/00 31,673 34,788
08/31/00 33,123 36,287
09/29/00 32,100 35,227
10/31/00 32,267 35,231
11/30/00 30,904 33,797
12/31/00 31,471 34,149
Top Ten Holdings (as of December 31, 2000)
---------------------------------------------------------------------------
% of six months ago
investments % of investments
Federal National Mortgage Assoc. 2.7% 11.1%
U.S. Treasury 2.2% 3.1%
Pfizer, Inc. 1.8% 0.5%
General Electric Co. 1.6% 3.1%
Citigroup, Inc. 1.6% 2.2%
Government National Mortgage Assoc. 1.4% 3.4%
Republic of Italy 1.4% 1.2%
Bank of America Corp. 1.4% N/A
Exxon Mobil Corp. N/A 1.0%
Cisco Systems, Inc. 1.2% 2.6%
Average Annual Total Returns*
---------------------------------------------------------------------------
Managed Managed MorningStar
Fund Benchmark (1) Peer Group+
------- ------------- -----------
1 Year 0.03% -0.99% 2.10%
3 Years 9.53 10.28 8.39
5 Years 11.55 12.89 11.47
10 Years 12.15 12.41 12.21
Top Ten Sectors (as of December 31, 2000)
---------------------------------------------------------------------------
% of % of
investments investments
Financial 23.7% Consumer Cyclical 5.3%
Governmental 22.7% Retail 4.1%
Technology 13.0% Energy 4.0%
Health Care 11.0% Utility 3.9%
Capital Equipment 7.3% Consumer Staple 2.8%
(1) The Managed Benchmark represents 50% S&P 500/50% Lehman Brothers
Government/Corporate Bond from April 1986 to December 1997 then 60% S&P
500/40% Lehman Brothers Government/Corporate Bond from 1998 to April 1998
and now 60% S&P 500/40% Lehman Brothers Aggregate Bond from May 1998 to
present.
* Total returns are for the period ended December 31, 2000. Returns
represent past performance, assume reinvestment of all distributions and
are not indicative of future performance. "Results may have been achieved
during market conditions or pursuing performance opportunities that may
not continue to occur in the future." Investment returns and principal
value of fund shares will fluctuate so that shares, when redeemed, may be
worth more or less than their original cost. The performance of the fund
on this page is reported net of Trust level charges (i.e. investment
management fees and operating expenses). It does not reflect expense and
charges of the applicable separate accounts and variable products, all
of which vary to a considerable extent and are described in your product
prospectus.
+ Source: MorningStar, Inc. Data as of 12/31/00. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for all variable annuity and
life sub-accounts within the Morningstar variable universe having a
Domestic Hybrid investment category.
27
Inception: August 31, 1999
Aggressive Balanced Fund
Independence Investment Associates, Inc. J. Forelli/J. Leu
Your Fund returned -1.53% compared to -4.07% for your benchmark,
outperforming by over 2.5%. The importance of diversification between fixed
income and equities, stock selection, risk control, and the benefits of a
strong fundamental research team are highlighted during this past year of
tremendous uncertainty and unprecedented volatility.
We were able to add value above the S&P 500 through solid stock selection.
During the quarter, health care stocks were especially strong, due to their
consistent and reliable earnings growth. Financial stocks such also performed
well, driven higher by the sentiment that the Fed will soon begin to cut
interest rates. Finally, we also helped the Fund's performance by avoiding
very expensive technology stocks.
The domestic fixed income portion of your Fund matched the Lehman Aggregate
index during the quarter. An overweight in agency bonds helped the Fund as
spreads tightened and an overweight in the financial and energy sectors also
added to performance. However, this advantage was offset by an overweight in
BBB securities and the Fund's bar belled structure.
The pressure on US corporate profits will continue into 2001. We project flat
corporate earnings in 2001, followed by a rebound in 2002. We expect US GDP to
increase 2% in 2001 after roaring ahead by 5% in 2000. A better environment
will unfold later in 2001 as central banks led by the US Fed begin to ease and
investors look past the slowdown. We also remain constructive on the fixed
income markets. Shorter-term interest rates should decline further as the
economy continues to moderate. Looking forward, corporate bonds will be helped
by a more accommodative Fed and a steepening yield curve. Deteriorating
fundamentals in the short term will make issue and sector selection critical.
[GRAPH]
Aggressive Aggressive Balanced
Balanced Fund Benchmark(1)
8/31/99 $10,000 $10,000
9/30/99 9,830 9,823
10/31/99 10,274 10,298
11/30/99 10,383 10,455
12/17/99 10,466 10,905
1/31/00 10,222 10,485
2/29/00 10,011 10,367
3/31/00 10,876 11,162
4/30/00 10,679 10,902
5/31/00 10,611 10,733
6/30/00 10,782 10,988
7/31/00 10,730 10,884
8/31/00 11,341 11,431
9/30/00 10,889 10,997
10/31/00 10,984 10,980
11/30/00 10,411 10,376
12/31/00 10,545 10,462
Top Ten Holdings (as of December 31, 2000)
---------------------------------------------------------------------------
% of six months ago
investments % of investments
Federal National Mortgage Assoc. 10.8% 5.0%
U.S. Treasury 9.4% 3.7%
General Electric Co. 3.3% 1.5%
Citigroup, Inc. 2.3% 1.6%
Pfizer, Inc. 2.2% 0.3%
Cisco Systems, Inc. 2.1% 1.7%
Merck & Co., Inc. 1.7% 0.3%
Microsoft Corp. 1.7% 2.4%
Intel Corp. 1.6% 1.1%
Bank of America Corp. 1.4% N/A
Average Annual Total Returns*
---------------------------------------------------------------------------
Aggressive Aggressive MorningStar
Balanced Fund Balanced Benchmark(1) Peer Group+
------------- --------------------- -----------
1 Year -1.53% -4.07% 2.10%
Since Inception 4.06 3.44 N/A
(8/31/99)
Top Ten Sectors (as of December 31, 2000)
---------------------------------------------------------------------------
% of % of
investments investments
Governmental 20.4% Consumer Cyclical 5.5%
Technology 16.2% Retail 4.9%
Financial 15.3% Utility 4.9%
Health Care 11.9% Energy 3.2%
Capital Equipment 8.2% Basic Material 1.7%
(1) The benchmark represents 75% S&P 500 and 25% Lehman Brothers Aggregate Bond
Index.
* Total returns are for the period ended December 31, 2000. Returns represent
past performance, assume reinvestment of all distributions and are not
indicative of future performance. "Results may have been achieved during
market conditions or pursuing performance opportunities that may not
continue to occur in the future." Investment returns and principal value of
fund shares will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. Small-company investing entails special
risks as outlined in the prospectus. The performance of the fund on this
page is reported net of Trust level charges (i.e. investment management fees
and operating expenses). It does not reflect expense and charges of the
applicable separate accounts and variable products, all of which vary to a
considerable extent and are described in your product prospectus.
+ Source: MorningStar, Inc. Data as of 12/31/00. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for all variable annuity and
life sub-accounts within the MorningStar variable universe having a
Domestic Hybrid investment category.
28
Inception: May 1, 1996
Global Balanced Fund (Formerly International Balanced Fund)
Capital Guardian Trust Company Management Team
Effective November 1, Capital Guardian Trust Company assumed management of the
Fund.
We began the period slightly underweight equities, and we increased our equity
exposure during the quarter. This was not helpful to returns. Within our equity
allocation, however, our overweight position in non-U.S. large caps along with
good relative returns from our U.S. large-cap Fund softened the blow. Within
our U.S. equity Fund, owning significantly less than the index in technology-
related stocks was helpful. On the fixed-income side, returns within sectors
were good, though our emphasis on corporate securities worked against us.
Most of our shift into equities has been the result of moving assets away from
U.S. fixed income and toward U.S. large caps. Equity valuations in the U.S.
have come down significantly in absolute terms as well as relative to other
developed markets. At the same time, interest rates have declined more in the
U.S. than in other markets, and real yields have moved from the top end of
their range to the bottom. These events have brought U.S. equity valuations
back to reasonable levels. From a bottom-up view, our analysts are finding
attractive opportunities. Today, our U.S. large cap position is only slightly
underweight, whereas it was significantly underweight earlier in the year on
valuation concerns. We continue to be overweight non-U.S. large caps, U.S.
small caps, and emerging markets equity, and underweight non-U.S. small caps.
While we were early in moving away from U.S. bonds, we believe the market has
now fully priced in a major economic slowdown. Non-U.S. bonds, while also
underweight, appear relatively more attractive having lagged the U.S. market
and due to our belief that the dollar will continue to weaken against the euro.
Within our bond Funds we have an emphasis on corporate securities. While
government bonds have led the rally, credit spreads have widened, leaving
corporate bonds room for improvement.
[GRAPH]
Global Balanced Global Balanced
Fund Composite Benchmark(1)
4/30/96 $10,000 $10,000
5/31/96 9,992 9,892
6/30/96 10,055 9,941
7/31/96 9,956 9,850
8/31/96 10,007 9,899
9/30/96 10,257 10,068
10/31/96 10,315 10,086
11/30/96 10,678 10,398
12/31/96 10,673 10,280
1/31/97 10,509 9,927
2/28/97 10,624 9,986
3/31/97 10,568 9,972
4/30/97 10,507 9,943
5/31/97 11,089 10,499
6/30/97 11,433 10,910
7/31/97 11,471 10,942
8/31/97 10,986 10,437
9/30/97 11,470 10,908
10/31/97 11,127 10,460
11/30/97 10,967 10,292
12/31/97 10,955 10,321
1/31/98 11,195 10,633
2/28/98 11,630 11,137
3/31/98 11,808 11,313
4/30/98 11,952 11,458
5/31/98 11,952 11,415
6/30/98 11,915 11,442
7/31/98 11,962 11,497
8/31/98 11,270 10,654
9/30/98 11,435 10,703
10/31/98 12,221 11,598
11/30/98 12,443 11,699
12/31/98 12,925 12,315
1/31/99 12,914 12,251
2/28/99 12,390 11,902
3/31/99 12,558 12,235
4/30/99 12,778 12,572
5/31/99 12,313 12,072
6/30/99 12,412 12,280
7/31/99 12,785 12,663
8/31/99 12,772 12,718
9/30/99 12,781 12,890
10/31/99 12,912 13,211
11/30/99 12,992 13,450
12/31/99 13,289 14,251
1/31/00 13,586 13,539
2/29/00 12,794 13,717
3/31/00 12,820 14,253
4/28/00 13,195 13,557
5/31/00 12,657 13,372
6/30/00 12,991 13,779
7/30/00 12,725 13,448
8/30/00 12,892 13,699
9/30/00 12,571 13,216
10/30/00 12,497 13,014
11/30/00 11,946 12,645
12/31/00 12,353 12,949
Top Ten Holdings (as of December 31, 2000)
--------------------------------------------------------------------------
% of six months ago
investments % of investments
Netherlands Government 9.2% N/A
U.S. Treasury 8.3% N/A
Federal Republic of Germany 3.2% 2.0%
Federal National Mortgage Assoc. 2.5% N/A
AstraZeneca Group plc 2.3% 0.3%
U.K. Treasury 1.8% 4.4%
Nokia Oyj 1.7% 1.0%
Kingdom of Spain 1.5% N/A
Vodafone AirTouch plc 1.5% N/A
Asian Development Bank 1.4% N/A
Average Annual Total Returns*
---------------------------------------------------------------------------
Global Balanced Global Balanced MorningStar
Fund Composite Benchmark(1) Peer Group+
-------------- ---------------------- -----------
1 Year -9.08% -9.14% -6.85%
3 Years 4.08 7.85 5.80
Since inception (5/1/96) 4.63 5.69 N/A
Top Ten Countries (as of December 31, 2000)
---------------------------------------------------------------------------
% of % of
investments investments
Japan 13.8% Canada 3.5%
France 8.4% Spain 3.1%
United Kingdom 8.0% Australia 2.0%
Germany 4.8% Netherlands 2.0%
Italy 4.5% Sweden 2.0%
(1) International Balanced Composite Index: 65% Morgan Stanley Capital
International World Index Excluding US, and 35% Salomon Brothers Non-US
Govt. Bond Index, unhedged, May 1996 to April 2000, 65% MSCI World/35%
Salomon Brothers World Government Bond, Unhedged, May 2000 to October 2000
and 60% MSCI World/40% Salomon Brothers World Government Bond, Unhedged,
November 2000 to present
There are special risks associated with international investing, including
currency fluctuations, political and economic instability, foreign taxation
and different accounting standards, as outlined in the current prospectus.
* Total returns are for the period ended December 31, 2000. Returns
represent past performance, assume reinvestment of all distributions and
are not indicative of future performance. "Results may have been achieved
during market conditions or pursuing performance opportunities, including
investment in initial public offerings, that may not continue to occur in
the future." Investment returns and principal value of fund shares will
fluctuate so that shares, when redeemed, may be worth more or less than
their original cost. There are special risks associated with international
investing including currency fluctuations, political and economic
instability, foreign taxation and different accounting standards, as
outlined in the current prospectus. The performance of the fund on this page
is reported net of Trust level charges (i.e. investment management fees and
operating expenses). It does not reflect expense and charges of the
applicable separate accounts and variable products, all of which vary to a
considerable extent and are described in your product prospectus.
+ Source: MorningStar, Inc. Data as of 12/31/00. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for the sub-accounts of all
variable annuity and life products within the Morningstar variable universe
having a 60% World Stock, Large Cap, 10% General Bond Intermediate and 30%
International Bond then prior to November 2000, 65% weighting of the World
Stock, Large Cap category, a 12% weighting of the General Bond Intermediate
category and a 23% weighting of the International Bond category. Prior to
May 2000 (concurrent with the Fund's strategy change), the peer group
represents the International Hybrid investment category.
29
Inception: May 1, 1994
Short-Term Bond Fund
Independence Investment Associates, Inc. Jay Leu
Interest rates across all maturities continued to fall during the quarter
because of evidence of a sharper economic slowdown and equity market jitters.
The yield curve continued to "disinvert" with short and intermediate rates
falling more than longer term rates on expectations that the Federal Reserve
will need to aggressively lower interest rates. The Fund benefited from
investing in shorter maturity securities whose yields fell the farthest in the
fourth quarter.
Investment grade corporate bonds underperformed Treasury securities in the
fourth quarter. Corporate bonds have been impacted by deteriorating
fundamentals as the economy's growth rate slowed significantly. Corporate
bonds have been helped by the steepening or "disinverting" of the yield curve
as well as by the Federal Reserve's move to an accommodative stance. Corporate
bond performance has varied significantly by industry and issuer, though.
Within the corporate bond market, the finance sector led the way followed by
the utilities and then industrials.
The Short-Term Bond Fund outperformed its benchmark for the quarter despite
the difficult environment for corporate bonds. The Fund continues to benefit
from a yield advantage provided by an overweight in corporate and asset-backed
securities relative to the benchmark. The Fund also benefited from its
overweight in asset-backed securities that outperformed corporate bonds. Our
individual securities held in the Fund outperformed relative to the average
corporate bond in the benchmark. Strong performers included: Gulf Canada,
BankBoston, Donaldson, Lufkin, and Jenrette, Philip Morris, and FNMA.
Looking forward, corporate bonds will be helped by attractive valuations, a
more accommodative Federal Reserve, and a steepening yield curve.
Deteriorating fundamentals in the short term will make issue and sector
selection critical. We believe short maturity corporate bonds and asset-backed
securities are attractively priced relative to Treasury securities and we will
continue to overweight them.
[GRAPH]
Short-Term Short-Term
Bond Benchmark(1) Bond Fund
4/30/94 $10,000 $10,000
5/31/94 10,013 9,999
6/30/94 10,032 10,010
7/31/94 10,137 10,109
8/31/94 10,171 10,130
9/30/94 10,117 10,075
10/31/94 10,129 10,078
11/30/94 10,074 10,032
12/31/94 10,102 10,033
1/31/95 10,258 10,172
2/28/95 10,431 10,324
3/31/95 10,489 10,367
4/30/95 10,597 10,462
5/31/95 10,844 10,694
6/30/95 10,908 10,769
7/31/95 10,935 10,780
8/31/95 11,011 10,844
9/30/95 11,072 10,892
10/31/95 11,181 10,996
11/30/95 11,300 11,098
12/31/95 11,400 11,187
1/31/96 11,502 11,273
2/29/96 11,420 11,183
3/31/96 11,385 11,143
4/30/96 11,374 11,124
5/31/96 11,381 11,123
6/30/96 11,476 11,211
7/31/96 11,516 11,238
8/31/96 11,544 11,260
9/30/96 11,669 11,392
10/31/96 11,827 11,527
11/30/96 11,940 11,607
12/31/96 11,910 11,591
1/31/97 11,964 11,642
2/28/97 11,983 11,661
3/31/97 11,954 11,631
4/30/97 12,068 11,727
5/31/97 12,154 11,805
6/30/97 12,248 11,894
7/31/97 12,426 12,058
8/31/97 12,408 12,033
9/30/97 12,522 12,138
10/31/97 12,636 12,241
11/30/97 12,663 12,247
12/31/97 12,758 12,334
1/31/98 12,906 12,464
2/28/98 12,903 12,460
3/31/98 12,952 12,503
4/30/98 13,013 12,559
5/31/98 13,089 12,622
6/30/98 13,155 12,679
7/31/98 13,216 12,737
8/31/98 13,339 12,872
9/30/98 13,523 13,007
10/31/98 13,554 12,999
11/30/98 13,591 13,019
12/31/98 13,645 13,051
1/31/99 13,721 13,081
2/28/99 13,673 13,035
3/31/99 13,781 13,105
4/30/99 13,841 13,154
5/31/99 13,824 13,122
6/30/99 13,867 13,165
7/31/99 13,896 13,192
8/31/99 13,927 13,225
9/30/99 14,028 13,327
10/31/99 14,079 13,363
11/30/99 14,120 13,412
12/31/99 14,139 13,438
1/31/00 14,146 13,435
2/29/00 14,248 13,530
3/31/00 14,318 13,598
4/30/00 14,329 13,630
5/31/00 14,380 13,679
6/30/00 14,536 13,841
7/31/00 14,629 13,928
8/31/00 14,741 14,031
9/30/00 14,856 14,152
10/31/00 14,936 14,182
11/30/00 15,081 14,330
12/31/00 15,266 14,510
Top Ten Holdings (as of December 31, 2000)
---------------------------------------------------------------------------
% of six months ago
investments % of investments
Federal National Mortgage Assoc. 4.3% 4.0%
U.S. Treasury 2.6% 2.7%
General Electric Capital Corp. 2.6% N/A
Norfolk Southern Corp. 2.4% 2.8%
Dial Corp. 2.4% 2.7%
BankBoston Corp. 2.3% 2.6%
Donaldson, Lufkin & Jenrette, Inc. 1.9% 2.6%
Residential Asset Securitization Trust 1.9% N/A
Heller Financial, Inc. N/A 2.1%
Cox Communications, Inc. 1.9% 2.1%
Average Annual Total Returns*
---------------------------------------------------------------------------
Short-Term Short-Term Bond MorningStar
Bond Fund Benchmark(1) Peer Group+
---------- --------------- -----------
1 Year 7.98% 7.98% 7.45%
3 Years 5.57 6.16 5.27
5 Years 5.34 6.01 5.30
Since Inception (5/1/94) 5.74 6.55 N/A
Fund Composition (as of December 31, 2000)
---------------------------------------------------------------------------
Credit Quality Duration
-------------- --------
Short Term 1.61% less than 1 Year 35.17%
AAA 44.98% 1-3 Years 50.02%
AA 3.11% 3-5 Years 14.81%
A 24.32% 5-10 Years 0.00%
BBB 22.95% greater than 10 Years 0.00%
BB 3.03%
Below B 0.00%
NR/NA 0.00%
* Total returns are for the period ended December 31, 2000. Returns
represent past performance, assume reinvestment of all distributions and are
not indicative of future performance. "Results may have been achieved during
market conditions or pursuing performance opportunities that may not
continue to occur in the future." Investment returns and principal value of
fund shares will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. The performance of the fund on this page
is reported net of Trust level charges (i.e. investment management fees and
operating expenses). It does not reflect expense and charges of the
applicable separate accounts and variable products, all of which vary to a
considerable extent and are described in your product prospectus.
+ Source: MorningStar, Inc. Data as of 12/31/00. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for all variable annuity and
life sub-accounts within the MorningStar variable universe having a
Short Term Bond investment category. Prior to May 1998 (concurrent with the
Fund's strategy change), the peer group represents the Short Term Government
Bond category.
(1) Short-Term Bond Index represents the Merrill Lynch 1 to 5 year Government
Bond from May 1994 to April 1998, 65% Lehman Brothers 1 to 3 year Credit
Bond. 35% Lehman Brothers 1-3 year Government Index, May 1998 to present.
30
Inception: May 1, 1998
Bond Index Fund
Mellon Bond Associates, LLP Gregory Curran
The Fund continues to meet its investment objective: to match the performance
of the Lehman Brothers Government Credit Index, which includes U.S. dollar-
based, fixed-coupon debt from the U.S. Government, its agencies and
investment-grade corporations. Performance net of fees for the portfolio was
2.03% for December, 4.59% for the fourth quarter, 11.81% for the year.
Corresponding returns for the benchmark were 1.97%, 4.37%, and 11.84%. The
Fund uses a representative sample of issues selected through proprietary
quantitative techniques. Selected issues have the best risk-adjusted expected
return and, as a group, match the characteristics of the 4,750 issues in the
Index including price sensitivity, industry, and quality exposures. An indexed
portfolio typically eliminates many risks associated with active management
and has lower fees and expenses.
Recent changes in supply of debt to the investment grade fixed income markets
are being reflected in the Lehman Brothers Government Credit Index, and
therefore in the portfolio as well. As the Treasury Department decreases the
new issuance of Treasury notes and bonds due to the budget surplus, the
representation in the Index has decreased. Treasuries were 51.53% of the Index
on December 31, 1999 and were only 43.58% of the Index on December 31, 2000.
We expect this trend to continue. The Government Sponsored Enterprises,
particularly Fannie Mae and Freddie Mac, have increased the size and liquidity
of their issuance to fund their portfolio growth and as an attempt to become
the replacement asset class of choice for Treasury investors. Agencies were
14.46% of the Index of the end of 1999 and were 17.62% of the Index at year
end 2000. Corporates have grown from 34.02% of the Index to 38.80% because of
the addition of 144A's to the Index in June and increased issuance in the
Telecom sector as they funded the purchase of licenses to expand their
businesses.
[GRAPH]
Lehman Brothers
Bond Index Gov't./Corp.
Fund Bond Index
4/30/98 $10,000 $10,000
5/31/98 10,102 10,107
6/30/98 10,211 10,210
7/31/98 10,220 10,218
8/31/98 10,461 10,418
9/30/98 10,757 10,715
10/31/98 10,689 10,639
11/30/98 10,703 10,703
12/31/98 10,720 10,729
1/31/99 10,795 10,805
2/28/99 10,521 10,548
3/31/99 10,584 10,601
4/30/99 10,609 10,627
5/31/99 10,485 10,518
6/30/99 10,450 10,485
7/31/99 10,420 10,456
8/31/99 10,414 10,447
9/30/99 10,497 10,541
10/31/99 10,514 10,569
11/30/99 10,513 10,562
12/31/99 10,445 10,498
1/31/00 10,425 10,495
2/29/00 10,551 10,626
3/31/00 10,713 10,779
4/30/00 10,666 10,726
5/31/00 10,640 10,717
6/30/00 10,855 10,935
7/31/00 10,956 11,051
8/31/00 11,122 11,207
9/30/00 11,165 11,250
10/31/00 11,244 11,320
11/30/00 11,445 11,514
12/31/00 11,678 11,741
Top Ten Holdings (as of December 31, 2000)
--------------------------------------------------------------------------
% of six months ago
investments % of investments
U.S. Treasury 7.2% 34.6%
Federal National Mortgage Assoc. 3.1% 3.7%
Federal Home Loan Mortgage Corp. 1.7% 4.6%
Federal Home Loan Bank 0.9% 0.5%
Ford Motor Credit Co. 0.7% N/A
General Motors Acceptance Corp. 0.5% 0.6%
DaimlerChrysler NA Holding Co. 0.5% 0.3%
Wells Fargo & Co. 0.5% 0.3%
Lockheed Martin Corp. N/A N/A
KFW International Finance 0.5% 0.5%
Average Annual Total Returns*
---------------------------------------------------------------------------
Bond Index L/B Govt./Credit MorningStar
Fund Bond Index Peer Group+
---------- ---------------- -----------
1 Year 11.81% 11.84% 11.08%
Since Inception (5/1/98) 5.98 6.20 N/A
Fund Composition (as of December 31, 2000)
---------------------------------------------------------------------------
Credit Quality Duration
-------------- --------
Short Term 1.80% less than 1 Year 5.70%
AAA 66.80% 1-3 Years 22.46%
AA 6.40% 3-5 Years 18.96%
A 15.60% 5-10 Years 23.77%
BBB 9.40% greater than 10 Years 29.16%
Below BB 0.00%
NR/NA 0.00%
* Total returns are for the period ended December 31, 2000. Returns represent
past performance, assume reinvestment of all distributions and are not
indicative of future performance. "Results may have been achieved during
market conditions or pursuing performance opportunities that may not continue
to occur in the future." Investment returns and principal value of fund shares
will fluctuate so that shares, when redeemed, may be worth more or less than
their original cost. Small-company investing entails special risks as
outlined in the prospectus. The performance of the fund on this page is
reported net of Trust level charges (i.e. investment management fees and
operating expenses). It does not reflect expense and charges of the applicable
separate accounts and variable products, all of which vary to a considerable
extent and are described in your product prospectus.
+ Source: MorningStar, Inc. Data as of 12/31/00. Although gathered from reliable
sources, data completeness and accuracy cannot be guaranteed. Represents an
average annual return for all variable annuity and life sub-accounts within
the MorningStar variable universe having a General Bond Intermediate High
Quality investment category.
31
Inception: March 29, 1986
Active Bond Fund (Formerly Sovereign Bond Fund)
John Hancock Advisers, Inc. James Ho
During the quarter the Fund gained 3.84%, underperforming the Lehman
Aggregate Index at 4.21%. YTD the Fund performed well on an absolute basis,
returning 10.45%, though underperforming the index return of 11.63%.
Underperformance can be attributed to the Fund's bias towards spread product,
as most spread sectors underperformed Treasuries for both periods. Treasuries
had their best year of performance since 1995. Our underweight position in
this sector relative to the benchmark, for both the quarter and year,
detracted from performance results. The Fund's overweight position in
corporate bonds relative to the index detracted from performance results for
both the quarter and 2000.
With the unexpected and aggressive rate cut on January 3rd, the Fed
effectively put a floor under the economy and the risk of recession is greatly
reduced. Given an expected upturn in the economy later in 2001 in response to
this stimulus action, we think interest rates may be close to bottom. We plan
to use periods of market strength to reduce interest rate sensitivity by
shortening duration. With a backdrop of a stronger economy expected, we plan
to reduce our defensive stance. We'll likely reduce our Treasury holdings and
asset backed securities and increase investments in the high-yield sector,
which currently offers very attractive values and yields. We'll also look for
attractive values among lower-rated investment grade issues. Additionally,
we're likely to move away from defensive industry sectors-- such as energy,
health care and utilities-in favor of more economically sensitive sectors such
as autos, home building and financials. Our neutral weighting in mortgage
securities is likely to remain constant, and we will emphasize prepayment-
resistant securities with coupons of between 6% and 7%. Emerging markets may
present opportunities, especially if the U.S. economy rebounds.
[GRAPH]
Active Bond Active Bond Active Bond Active Bond
Fund Benchmark Fund Benchmark
12/31/90 $10,000 $10,000 01/31/96 $16,299 $16,061
01/31/91 10,081 10,112 02/29/96 15,986 15,721
02/28/91 10,204 10,199 03/31/96 15,888 15,589
03/31/91 10,298 10,269 04/30/96 15,808 15,481
04/30/91 10,448 10,387 05/31/96 15,804 15,455
05/31/91 10,526 10,436 06/30/96 15,964 15,662
06/30/91 10,534 10,425 07/31/96 16,015 15,698
07/31/91 10,648 10,556 08/31/96 16,027 15,660
08/31/91 10,889 10,799 09/30/96 16,317 15,939
09/30/91 11,110 11,025 10/31/96 16,664 16,311
10/31/91 11,219 11,123 11/30/96 16,925 16,611
11/30/91 11,313 11,234 12/31/96 16,868 16,426
12/31/91 11,666 11,613 01/31/97 16,931 16,446
01/31/92 11,553 11,441 02/28/97 17,011 16,481
02/29/92 11,583 11,501 03/31/97 16,831 16,284
03/31/92 11,554 11,438 04/30/97 17,061 16,522
04/30/92 11,628 11,507 05/31/97 17,253 16,676
05/31/92 11,822 11,730 06/30/97 17,479 16,876
06/30/92 11,976 11,902 07/31/97 18,003 17,392
07/31/92 12,265 12,207 08/31/97 17,826 17,198
08/31/92 12,398 12,316 09/30/97 18,115 17,468
09/30/92 12,565 12,483 10/31/97 18,271 17,747
10/31/92 12,412 12,292 11/30/97 18,372 17,841
11/30/92 12,374 12,281 12/31/97 18,573 18,028
12/31/92 12,559 12,492 01/31/98 18,828 18,283
01/31/93 12,783 12,765 02/28/98 18,812 18,246
02/28/93 13,049 13,030 03/31/98 18,919 18,303
03/31/93 13,121 13,075 04/30/98 19,011 18,394
04/30/93 13,203 13,175 05/31/98 19,180 18,591
05/31/93 13,196 13,169 06/30/98 19,364 18,781
06/30/93 13,467 13,468 07/31/98 19,400 18,796
07/31/93 13,581 13,554 08/31/98 19,591 19,162
08/31/93 13,868 13,865 09/30/98 20,040 19,710
09/30/93 13,936 13,914 10/31/98 19,852 19,570
10/31/93 13,951 13,971 11/30/98 20,043 19,688
11/30/93 13,846 13,813 12/31/98 20,102 19,735
12/31/93 13,911 13,874 01/31/99 20,287 19,875
01/31/94 14,114 14,082 02/28/99 19,871 19,402
02/28/94 13,855 13,775 03/31/99 20,013 19,499
03/31/94 13,561 13,438 04/30/99 20,076 19,548
04/30/94 13,440 13,326 05/31/99 19,859 19,346
05/31/94 13,417 13,302 06/30/99 19,809 19,286
06/30/94 13,404 13,271 07/31/99 19,769 19,232
07/31/94 13,621 13,537 08/31/99 19,730 19,217
08/31/94 13,654 13,542 09/30/99 19,906 19,390
09/30/94 13,495 13,338 10/31/99 19,946 19,462
10/31/94 13,473 13,323 11/30/99 20,016 19,460
11/30/94 13,448 13,299 12/31/99 19,913 19,366
12/31/94 13,554 13,387 01/31/00 19,830 19,302
01/31/95 13,812 13,644 02/29/00 20,053 19,536
02/28/95 14,143 13,960 03/31/00 20,256 19,794
03/31/95 14,253 14,054 04/30/00 20,178 19,736
04/30/95 14,459 14,249 05/31/00 20,160 19,727
05/31/95 15,081 14,846 06/30/00 20,583 20,137
06/30/95 15,211 14,965 07/31/00 20,748 20,320
07/31/95 15,145 14,907 08/31/00 21,062 20,615
08/31/95 15,320 15,098 09/30/00 21,181 20,745
09/30/95 15,474 15,252 10/31/00 21,293 20,882
10/31/95 15,726 15,476 11/30/00 21,576 21,224
11/30/95 15,960 15,731 12/31/00 21,994 21,619
12/31/95 16,203 15,962
Top Ten Holdings (as of December 31, 2000)
---------------------------------------------------------------------------
% of six months ago
investments % of investments
Government National Mortgage Assoc. 25.9% 22.1%
U.S. Treasury 11.4% 18.4%
Federal National Mortgage Assoc. 8.8% 10.4%
GMAC Commercial Mortgage Securities, Inc. 1.4% 1.4%
Peco Energy Transition Trust 1.3% 0.3%
Hydro-Quebec 1.1% 1.1%
Amresco Residential Securities 1.0% 1.0%
Morgan Stanley Capital 1.0% N/A
UCFC Home Equity Loan 1.0% 1.5%
Cleveland Electric Illuminating Co. 0.8% 0.8%
Average Annual Total Returns*
---------------------------------------------------------------------------
Active Bond Active Bond MorningStar
Fund Benchmark(1) Peer Group+
-------- --------------- -----------
1 Year 10.45% 11.63% 8.21%
3 Years 5.80 6.24 4.86
5 Years 6.30 6.25 5.69
10 Years 8.20 7.62 7.80
Fund Composition (as of December 31, 2000)
---------------------------------------------------------------------------
Credit Quality Duration
-------------- --------
Short Term 5.30% less than 1 Year 5.30%
AAA 44.80% 1-3 Years 0.30%
AA 8.0% 3-5 Years 0.00%
A 13.80% 5-10 Years 86.60%
BBB 15.40% greater than 10 Years 7.80%
BB 8.80%
B 3.50%
Below B 0.00%
NR/NA 0.40%
(1) The Active Bond Benchmark represents the Lehman Brothers Government/
Corporate Bond Index from April 1986 to September 1999 and Lehman
Brothers Aggregate Bond Index from October 1999 to present.
* Total returns are for the period ended December 31, 2000, returns
represent past performance, assume reinvestment of all distributions,
and are not indicative of future performance. "Results may have been
achieved during market conditions or pursuing performance
opportunities that may not continue to occur in the future."
Investment returns and principal value of fund shares will fluctuate
so that shares, when redeemed, may be worth more or less than their
original cost. The performance of the fund on this page is reported
net of Trust level charges (i.e. investment management fees and
operating expenses). It does not reflect expense and charges of the
applicable separate accounts and variable products, all of which vary
to a considerable extent and are described in your product
prospectus.
+ Source: MorningStar, Inc. Data as of 12/31/00. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for all variable annuity and
life sub-accounts within the MorningStar variable universe having an
Intermediate Term Bond investment category.
32
Inception: June 30, 2000
Core Bond Fund
Federated Investment Management Company Balestrino/Ellenberger/Durbiano
The 6 months ended December 31, 2000 were very profitable for bond investors
as interest rates fell precipitously on weak economic growth. The bond market
typically thrives on bad economic news as interest rates fall and, conversely,
bond prices rise.
Interest rates generally fell 50 to 125 basis points over the past three
months. Intermediate interest rates, such as the 2-year and 5-year Treasury
yields, experienced the greatest declines, falling 127 and 121 basis points,
respectively. This steep decline in the "belly of the yield curve" benefited
the Core Bond Fund, given that it has the bulk of investments in the 2 to 10
year maturity area. The Federal Reserve Board held monetary policy steady
throughout the whole period, causing the yield curve to be quite inverted with
long-term interest rates lower than short-term rates.
In terms of relative fixed income sector performance, the six months
demonstrated a preference for Treasury securities and other high quality,
highly liquid securities over less liquid or lower quality securities. The
higher quality spread sectors performed relatively well, while the lower
quality sectors underperformed the treasury market. The lower quality sectors
were undoubtedly dragged down by stock market volatility and nervousness that
spread worldwide. The election-results stalemate also caused quite a bit of
concern to the equity, high yield and investment-grade corporate markets.
The Fund outperformed the Lehman Brothers Aggregate Bond Index returning
4.11% during the fourth quarter of 2000 versus 4.21% for the benchmark. The
NAV of the Fund ended the quarter at $10.33 per share versus $10.00 at
initiation of the Fund on June 30, 2000.
For the six months, outperformance of the Fund versus the benchmark can be
attributed to positioning on the yield curve and security selection. Sector
allocation was a drag on the Fund for the quarter due to the overweight in
corporates and mortgage-backed securities, which performed relatively poorly
during the quarter. Duration stance was a slight negative for the six months.
Yield curve stance and security selection were definite positives to the Fund,
from holdings in 20-year Treasuries, Tosco, United Airlines, USA Waste,
Enterprise Oil, Lockheed Martin, Clear Channel Communications, and Inco.
[GRAPH]
Lehmen Brothers
Core Bond Fund Aggregate Bond Index
6/30/00 9,990 10,208
7/31/00 10,076 10,301
8/31/00 10,214 10,450
9/30/00 10,278 10,516
10/31/00 10,339 10,586
11/30/00 10,511 10,759
12/31/00 10,700 10,959
Top Ten Holdings (as of December 31, 2000)
------------------------------------------------------------------------------
--
% of six months ago
investments % of investments
Federal National Mortgage Assoc. 34.5% N/A
U.S. Treasury 15.4% N/A
Federal Home Loan Mortgage Corp. 9.3% N/A
Government National Mortgage Assoc. 3.8% N/A
TOSCO Corp. 2.1% N/A
United Airlines 2.0% N/A
National Bank of Canada 2.0% N/A
Target Corp. 2.0% N/A
Hertz Corp. 2.0% N/A
International Speedway Corp. 2.0% N/A
Average Annual Total Returns*
------------------------------------------------------------------------------
--
Core Bond Fund Lehman Brothers MorningStar
Aggregate Bond Index Peer Group+
-------------- -------------------- ----------
-
Since Inception (6/30/00) 7.00% 7.36% N/A
Fund Composition (as of December 31, 2000)
------------------------------------------------------------------------------
--
Credit Quality Duration
-------------- --------
Short Term 2.54%
AAA 67.09% Less than 1 Year 6.35%
AA 1.46% 1-3 Years 34.11%
A 15.38% 3-5 Years 26.13%
BBB 12.82% 5-10 Years 23.47%
BB 0.00% Greater than 10 Years 9.94%
B 0.71%
* Total returns are for the period ended December 31, 2000. Returns
represent past performance, assume reinvestment of all distributions and are
not indicative of future performance. "Results may have been achieved during
market conditions or pursuing performance opportunities that may not
continue to occur in the future." Investment returns and principal value of
fund shares will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. The performance of the fund on this page
is reported net of Trust level charges (i.e. investment management fees and
operating expenses). It does not reflect expense and charges of the
applicable separate accounts and variable products, all of which vary to a
considerate extent and are described in your product prospectus.
+ Source: MorningStar, Inc. Data as of 12/31/00. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for all variable annuity and life
sub-accounts within the MorningStar variable universe having a Intermediate
Term Bond investment category.
33
Inception: May 1, 1998
High Yield Bond Fund
Wellington Management Company, LLP Crawford/Smith/McEvoy
During the quarter, the Fund decreased by -8.8% compared to a -5.24% return
of the Lehman High Yield Index.
In the fourth quarter of 2000, the US high yield market, as measured by the
Lehman HY Index, had a return of -5.2%. This performance lagged the 4.2%
return of investment grade bonds, as measured by the Lehman Brothers Aggregate
Index. This underperformance of the high yield market versus higher quality
bonds came from the widening of the spread of high yield versus the 10-year
treasury from 707 basis points on September 30 to 934 basis points on December
31, 2000. This widening of spreads was due to equity market volatility,
corporate earnings warnings, high yield mutual Fund outflows, and default
rates. However, the high yield market did stabilize in December, matching the
1.9% performance of the Lehman Aggregate. December's high yield market rebound
was attributed to high yield spreads widening to their most attractive levels
in nearly 10 years and prospects for improving liquidity conditions.
Within high yield, lower quality ("B- rated") bonds continued to lag higher
quality bonds ("BB-rated") throughout the quarter.
During the quarter, we continued to adhere to our long-running preference for
issuers that have recurring revenue from repeat customers. To that end, health
care, media/entertainment, and cable continue to be the three largest industry
weightings in the Fund.
[GRAPH]
High-Yield Bond Fund High-Yield Bond Index
4/30/98 $10,000 $10,000
5/31/98 9,987 10,035
6/30/98 10,028 10,071
7/31/98 10,075 10,129
8/31/98 9,309 9,569
9/30/98 9,280 9,613
10/31/98 9,120 9,415
11/30/98 9,802 9,806
12/31/98 9,702 9,817
1/31/99 9,819 9,962
2/28/99 9,884 9,903
3/31/99 10,062 9,998
4/30/99 10,214 10,192
5/31/99 9,992 10,054
6/30/99 9,989 10,033
7/31/99 9,993 10,073
8/31/99 9,925 9,961
9/30/99 9,874 9,889
10/31/99 9,806 9,824
11/30/99 10,090 9,940
12/31/99 10,200 10,051
1/31/00 10,132 10,008
2/29/00 10,123 10,027
3/31/00 9,876 9,817
4/30/00 9,945 9,832
5/31/00 9,777 9,731
6/30/00 10,007 9,930
7/31/00 10,121 10,005
8/31/00 10,203 10,073
9/30/00 9,975 9,985
10/31/00 9,578 9,666
11/30/00 9,016 9,283
12/31/00 9,097 9,462
Top Ten Holdings (as of December 31, 2000)
------------------------------------------------------------------------------
--
% of six months ago
investments % of investments
Nextel Communications, Inc. 2.2% 2.0%
EchoStar DBS Corp. 2.2% 1.5%
Lyondell Chemical Co. 1.9% 1.3%
Charter Communications Holdings, LLC 1.8% 1.2%
Lin Holdings Corp. 1.7% 1.3%
Duane Reade, Inc. 1.7% 1.3%
Lear Corp. 1.7% 0.4%
Intermedia Communications, Inc. 1.6% 1.3%
McLeodUSA, Inc. N/A 0.8%
John Q. Hammons Hotels 1.6% N/A
Average Annual Total Returns*
------------------------------------------------------------------------------
--
High Yield L/B High Yield MorningStar
Bond Fund Bond Index Peer Group+
---------- -------------- -----------
1 Year -10.81% -5.86% -7.01%
Since Inception (5/1/98) -3.48 -2.05 N/A
Fund Composition (as of December 31, 2000)
------------------------------------------------------------------------------
--
Credit Quality Duration
-------------- --------
Short Term 4.50% Less than 1 Year 4.50%
AAA 0.00% 1-3 Years 2.40%
AA 0.00% 3-5 Years 9.60%
A 0.00% 5-10 Years 81.67%
BBB 1.50% Greater than 10 Years 1.83%
BB 17.80%
B 75.30%
Below B 8.40%
NR/NA 0.90%
* Total returns are for the period ended December 31, 2000. Returns represent
past performance, assume reinvestment of all distributions and are not
indicative of future performance. "Results may have been achieved during
market conditions or pursuing performance opportunities that may not
continue to occur in the future." Investment returns and principal value of
fund shares will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. Small-company investing entails special
risks as outlined in the prospectus. The performance of the fund on this
page is reported net of Trust level charges (i.e. investment management fees
and operating expenses). It does not reflect expense and charges of the
applicable separate accounts and variable products, all of which vary to a
considerable extent and are described in your product prospectus.
+ Source: MorningStar, Inc. Data as of 12/31/00. Although gathered from
reliable sources, date completeness and accuracy cannot be guaranteed.
represents an average annual total return for all variable annuity and life
sub-accounts within the MorningStar variable universe having a High Yield
investment category.
34
Inception: May 1, 1996
Global Bond Fund
Capital Guardian Trust Company Management Team
Effective November 1, Capital Guardian Trust Company assumed management of the
Fund.
The Fund's slight overweight in U.S. bonds certainly added to overall
performance. Because we maintained our belief that there is little upside
potential in Japanese bonds, our underweight in Japan during the quarter hurt
Fund returns.
As has been the case for most of the year, exposure to corporate bonds in the
U.S. and Europe also hurt returns. Credit spreads continued to widen in even
the highest quality, most liquid sectors as corporate earnings downgrades
stung the markets. Additionally, spread widening in Europe was worse than the
U.S. due to liquidity concerns. Following the change in Fed policy in
December, however, corporate bonds showed signs of meaningful improvement.
The global government bond markets have priced in the beginning of a central
bank easing cycle. Despite the evidence of a slowdown in the global economy,
we believe there is little chance of an economic hard landing. With U.S.
government bonds becoming richly valued we will look for opportunities to add
quality corporate credits to the Fund. We will also continue to evaluate our
overweight position in the euro and add to our exposure as warranted. Finally,
based on the very attractive yield spreads available in corporate bonds
globally, we expect them to measurably outperform government bonds in 2001.
[GRAPH]
Global Bond Fund Global Bond Benchmark(1)
4/30/96 $10,000 $10,000
5/31/96 9,983 10,002
6/30/96 10,068 10,123
7/31/96 10,103 10,163
8/31/96 10,112 10,184
9/30/96 10,297 10,371
10/31/96 10,490 10,587
11/30/96 10,674 10,775
12/31/96 10,671 10,704
1/31/97 10,723 10,763
2/28/97 10,755 10,801
3/31/97 10,634 10,697
4/30/97 10,761 10,847
5/31/97 10,871 10,938
6/30/97 11,021 11,082
7/31/97 11,262 11,351
8/31/97 11,194 11,281
9/30/97 11,396 11,456
10/31/97 11,459 11,599
11/30/97 11,518 11,661
12/31/97 11,637 11,787
1/31/98 11,774 11,939
2/28/98 11,795 11,958
3/31/98 11,844 12,015
4/30/98 11,899 12,078
5/31/98 12,012 12,206
6/30/98 12,101 12,296
7/31/98 12,133 12,344
8/31/98 12,315 12,556
9/30/98 12,624 12,852
10/31/98 12,538 12,796
11/30/98 12,639 12,886
12/31/98 12,702 12,910
1/31/99 12,811 13,019
2/28/99 12,564 12,826
3/31/99 12,667 12,917
4/30/99 12,704 12,990
5/31/99 12,577 12,912
6/30/99 12,446 12,766
7/31/99 12,562 12,739
8/31/99 12,512 12,753
9/30/99 12,435 12,818
10/31/99 12,430 12,844
11/30/99 12,454 12,887
12/31/99 12,428 12,889
1/31/00 12,395 12,899
2/29/00 12,496 13,029
3/31/00 12,673 13,245
4/30/00 12,670 13,279
5/31/00 12,739 13,357
6/30/00 12,827 13,473
7/31/00 12,903 13,575
8/31/00 12,936 13,638
9/30/00 13,005 13,717
10/31/00 13,113 13,832
11/30/00 13,319 14,107
12/31/00 13,919 14,613
Top Ten Holdings (as of December 31, 2000)
---------------------------------------------------------------------------
% of six months ago
investments % of investments
U.S. Treasury 9.8% 15.8%
Federal Republic of Germany 4.6% 1.4%
Federal National Mortgage Assoc. 4.6% N/A
International Bank of Reconstruction
& Development 4.6% N/A
Republic of Finland 4.5% N/A
Government of France 4.2% 17.8%
Bundesrepublic Deutschland 4.0% 1.9%
U.K. Treasury 4.0% 5.9%
Government of Netherlands N/A 5.3%
Kingdom of Spain 3.4% N/A
Average Annual Total Returns*
---------------------------------------------------------------------------
Global Bond Global Bond MorningStar
Fund Benchmark(1) Peer Group+
-------- ------------ -----------
1 Year 12.00% 13.37% 8.89%
3 Years 6.15 7.42 4.90
Since Inception (5/1/96) 7.34 8.46 5.38
Fund Composition (as of December 31, 2000)
---------------------------------------------------------------------------
Credit Quality Duration
-------------- --------
Short Term 4.17% less than 1 Year 4.17%
AAA 83.26% 1-3 Years 18.29%
AA 1.78% 3-5 Years 25.00%
A 8.39% 5-10 Years 51.45%
BBB 1.69% greater than 10 Years 1.09%
BB 0.00%
B 0.71%
Below B 0.00%
Foreign Currency 60.35%
(1) Global Bond Benchmark: 75% Lehman Brothers Aggregate Bond and 25% J.P.
Morgan Non-US Government Bond Index, Hedged, from May 1996 to April 1999,
the J.P. Morgan Global Bond Index (Hedged) May 1999 to October 2000 and the
Salomon Brothers World Government Bond Index, Unhedged, November 2000 to
present.
* Total returns are for the period ended December 31, 2000. Returns
represent past performance, assume reinvestment of all distributions and are
not indicative of future performance. "Results may have been achieved during
market conditions or pursuing performance opportunities that may not
continue to occur in the future." Investment returns and principal value of
fund shares will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. There are special risks associated with
international investing including currency fluctuations, political and
economic instability, foreign taxation and different accounting standards,
as outlined in the current prospectus. The performance of the fund on this
page is reported net of Trust level changes (i.e. investment management fees
and operating expenses). It does not reflect expense and charges of the
applicable separate accounts and variable products, all of which vary to a
considerable extent and are described in your product prospectus.
+ Source: MorningStar, Inc. Data as of 12/31/00. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for all variable annuity and life
sub-accounts within the MorningStar variable universe having a 75%
International Bond and 25% General Bond Intermediate category. Prior to
November 2000, General Bond Intermediate High Quality investment style and
an International Bond investment style. The peer group represents a 35%
weighting of the General Bond Intermediate High Quality category and a 65%
weighting of the International Bond category. Prior to May 1999 (concurrent
with the Fund's strategy change), the peer group represents a 75% weighting
of the General Bond Intermediate High Quality category and a 25% weighting
of the International Bond category.
35
Inception: March 29, 1986
Money Market Fund
John Hancock Life Insurance Co. Peter Mitsopoulos
The Federal Reserve's monetary tightening actions starting in 1999 continued
as we entered 2000, but by mid-year the Fed abandoned further rate increases
as the economy showed signs of weakness. The Fed Funds target rate stood at
6.50% and the Fed remained on hold through December 31. Just a few days after
the New Year, however, the Fed enacted a 50 basis point reduction in the rate
to 6.0%. During the first half of the year we shortened the fund's weighted
average maturity (WAM) in order to capture higher yields under the tightening
policy. The WAM of the Fund was approximately 45 days at year-end 1999 and had
reached a low of 21 days in late April. We made efforts to push the level into
the 30 day to 40 day range for the later part of the year given growing
expectations for an end to fed tightening and ended the year with a WAM of 31
days.
The Fund performed generally in-line with expectations during the year. We
had become more cautious in our acquisition of adjustable rate securities
because of two factors: They were becoming more expensive and some of the more
active issuers were developing credit concerns. The Fund ended with only a 16%
position versus 22% at year-end 1999. The market continues to make it
difficult to pick up any appreciable yield differential by going out beyond
one or two months. However, when we see value out on the curve, we will
acquire securities in an effort to lock in yield and increase the Fund's
weighted average maturity.
The Fund is invested primarily in commercial paper (78%), adjustable rate
notes (16%) with other money market securities making up the balance.
[GRAPH]
Money
Market
Fund
12/31/90 $10,000
1/31/91 10,063
2/28/91 10,115
3/31/91 10,165
4/30/91 10,222
5/31/91 10,271
6/30/91 10,315
7/31/91 10,369
8/31/91 10,417
9/30/91 10,465
10/31/91 10,511
11/30/91 10,549
12/31/91 10,596
1/31/92 10,633
2/29/92 10,664
3/31/92 10,700
4/30/92 10,735
5/31/92 10,767
6/30/92 10,804
7/31/92 10,838
8/31/92 10,870
9/30/92 10,901
10/31/92 10,920
11/30/92 10,950
12/31/92 10,981
1/31/93 11,009
2/28/93 11,035
3/31/93 11,065
4/30/93 11,093
5/31/93 11,118
6/30/93 11,147
7/31/93 11,175
8/31/93 11,204
9/30/93 11,232
10/31/93 11,258
11/30/93 11,287
12/31/93 11,316
1/31/94 11,346
2/28/94 11,372
3/31/94 11,403
4/30/94 11,432
5/31/94 11,467
6/30/94 11,505
7/31/94 11,542
8/31/94 11,588
9/30/94 11,632
10/31/94 11,673
11/30/94 11,719
12/31/94 11,773
1/31/95 11,829
2/28/95 11,880
3/31/95 11,939
4/30/95 11,992
5/31/95 12,054
6/30/95 12,110
7/31/95 12,168
8/31/95 12,225
9/30/95 12,279
10/31/95 12,338
11/30/95 12,394
12/31/95 12,453
1/31/96 12,511
2/29/96 12,562
3/31/96 12,613
4/30/96 12,668
5/31/96 12,723
6/30/96 12,773
7/31/96 12,833
8/31/96 12,888
9/30/96 12,945
10/31/96 13,002
11/30/96 13,051
12/31/96 13,116
1/31/97 13,174
2/28/97 13,226
3/31/97 13,284
4/30/97 13,341
5/31/97 13,400
6/30/97 13,461
7/31/97 13,522
8/31/97 13,579
9/30/97 13,643
10/31/97 13,706
11/30/97 13,762
12/31/97 13,830
1/31/98 13,894
2/28/98 13,949
3/31/98 14,012
4/30/98 14,074
5/31/98 14,138
6/30/98 14,200
7/31/98 14,264
8/31/98 14,329
9/30/98 14,392
10/31/98 14,456
11/30/98 14,517
12/31/98 14,579
1/31/99 14,640
2/28/99 14,693
3/31/99 14,752
4/30/99 14,807
5/31/99 14,866
6/30/99 14,923
7/31/99 14,984
8/31/99 15,047
9/30/99 15,109
10/31/99 15,176
11/30/99 15,242
12/31/99 15,315
1/31/00 15,388
2/29/00 15,457
3/31/00 15,531
4/30/00 15,604
5/31/00 15,684
6/30/00 15,766
7/31/00 15,851
8/31/00 15,937
9/30/00 16,020
10/31/00 16,105
11/30/00 16,190
12/31/00 16,278
Top Ten Holdings (as of December 31, 2000)
---------------------------------------------------------------------------
% of six months ago
investments % of investments
Monte Rosa Capital Corp. 4,2% 1.0%
Falcon Asset Securitization Corp. 3.7% 2.1%
Sigma Finance, Inc. 3.6% 4.2%
Centric Capital Corp. 3.6% 3.2%
Sheffield Receivables Corp. 3.3% 4.1%
Merrill Lynch & Co., Inc. 3.3% 0.5%
DOVER Corp. YRS 3+4 3.2% N/A
Lehman Brothers Holdings 2.9% N/A
Enterprise Funding Corp. 2.7% N/A
K2 USA LLC 2.6% 2.9%
Average Annual Total Returns*
---------------------------------------------------------------------------
Money Market
Fund/1/
------------
1 Year 6.29%
3 Years 5.58%
5 Years 5.50%
10 Years 4.99%
---------------------------------------------------------------------------
Top Ten Sectors (as of December 31, 2000)
---------------------------------------------------------------------------
% of % of
investments investments
Financial 83.9% Consumer Staple 2.3%
Capital Equipment 5.7% Technologyyclical 1.3%
Consumer Cyclical 3.5% Basic Material 0.4%
Utility 2.9%
---------------------------------------------------------------------------
The Money Market Fund is neither insured nor guaranteed by the U.S.
Government and there is no guarantee the fund will be able to maintain a
stable net asset value of $10.00/share.
* Total returns are for the period ended December 31, 2000. Returns
represent past performance, assume reinvestment of all distributions and are
not indicative of future performance. "Results may have been achieved during
market conditions or pursuing performance opportunities that may not
continue to occur in the future." The performance of the Fund on this page
is reported net of Trust level charges (i.e. investment management fees and
operating expenses). It does not reflect expense and charges of the
applicable separate accounts and variable products, all of which vary to a
considerable extent and are described in your product prospectus.
/1/ Returns reflect extra-ordinary capital contribution of $284,471 in October
2000
36
STATEMENT OF ASSETS AND LIABILITIES
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
(000's Omitted)
Emerging
Large Cap Fundamental Aggressive Active Markets International International
Growth Growth Balanced Bond CORE Bond Equity Equity Index Equity
---------- ----------- ---------- -------- --------- -------- ------------- -------------
ASSETS
Long-Term Investments at
cost.................... $1,127,776 $49,497 $20,328 $768,472 $5,100 $41,395 $ 183,681 $15,406
Net unrealized
appreciation
(depreciation) of
investments............. 14,405 (5,942) 182 12,367 166 (12,835) 4,768 (699)
Short-Term Investments
at market............... 10,374 2,023 1,853 50,033 69 2,076 5,935 800
---------- ------- ------- -------- ------ ------- --------- -------
Total Investments...... 1,152,555 45,578 22,363 830,872 5,335 30,636 194,384 15,507
Cash.................... 1,258 428 203
Receivable for:
Investments sold....... 544 153 541
Fund shares sold....... 165 15 21 25
Interest............... 69 11,939 73
Dividends.............. 667 7 16 26 230 22
Unrealized appreciation
in forward foreign
currency contracts..... 63
---------- ------- ------- -------- ------ ------- --------- -------
TOTAL ASSETS........... 1,153,222 46,294 22,463 844,069 5,429 31,243 195,218 15,757
LIABILITIES
Payables for:
Due to custodian....... 1
Investments purchased.. 5,558 164 1,506 1,258 60 24
Fund shares purchased.. 84 292 131 3
Futures contracts
variation margin....... 18 3
Other liabilities...... 792 16 16 220 1 42 185 14
---------- ------- ------- -------- ------ ------- --------- -------
TOTAL LIABILITIES...... 6,435 180 1,522 1,770 1 233 206 41
---------- ------- ------- -------- ------ ------- --------- -------
NET ASSETS.............. $1,146,787 $46,114 $20,941 $842,299 $5,428 $31,010 $ 195,012 $15,716
========== ======= ======= ======== ====== ======= ========= =======
Shares of beneficial
interest outstanding.... 60,719 3,684 2,046 89,197 525 4,629 12,668 1,595
---------- ------- ------- -------- ------ ------- --------- -------
Net asset value per
share................... $ 18.89 $ 12.52 $ 10.24 $ 9.44 $10.33 $ 6.70 $ 15.39 $ 9.85
========== ======= ======= ======== ====== ======= ========= =======
Composition of net
assets:
Capital Paid in........ 1,172,736 54,265 21,000 862,827 5,259 47,462 190,658 16,478
Accumulated net
realized gain (loss) on
investments............ (40,354) (2,209) (243) (38,924) (3,468) 150 (58)
Undistributed
(distribution in excess
of) net investment
income (loss).......... 2 6,029 3 (151) (441) 20
Net unrealized
appreciation
(depreciation) of:
Investments............ 14,405 (5,942) 182 12,367 166 (12,835) 4,768 (699)
Foreign currency
translation............ 2 47 (2)
Futures contracts...... (170) (23)
---------- ------- ------- -------- ------ ------- --------- -------
Net Assets.............. $1,146,787 $46,114 $20,941 $842,299 $5,428 $31,010 $ 195,012 $15,716
========== ======= ======= ======== ====== ======= ========= =======
See notes to financial statements.
37
STATEMENT OF ASSETS AND LIABILITIES--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
(000's Omitted)
Small Cap Global Mid Cap Mid Cap Large Cap Large Cap American Leaders Large/Mid
Growth Balanced Growth Blend Value Value CORE Large Cap Value Cap Value
--------- -------- -------- ------- --------- ---------- ---------------- ---------
ASSETS
Long-Term Investments at
cost.................... $237,946 $27,948 $426,286 $19,357 $179,326 $15,509 $5,383 $13,535
Net unrealized
appreciation
(depreciation) of
investments............. (9,242) (552) (59,334) 1,370 16,076 697 373 1,531
Short-Term Investments
at market............... 6,544 800 26,942 409 10,401 1,701 246 461
-------- ------- -------- ------- -------- ------- ------ -------
Total Investments...... 235,248 28,196 393,894 21,136 205,803 17,907 6,002 15,527
Cash.................... 152 105 143
Receivable for:
Investments sold....... 368 4 1,421 81
Fund shares sold....... 31 114 75 104 21 150
Interest............... 301
Dividends.............. 31 25 20 276 22 7 15
Unrealized appreciation
in forward foreign
currency contracts.....
-------- ------- -------- ------- -------- ------- ------ -------
TOTAL ASSETS........... 235,647 28,709 395,420 21,270 206,154 18,176 6,030 15,773
LIABILITIES
Payables for:
Due to custodian....... 2
Investments purchased.. 293 161 240 1,607 36
Fund shares purchased.. 755 1,120
Other liabilities...... 57 21 72 11 10 12 1 9
-------- ------- -------- ------- -------- ------- ------ -------
TOTAL LIABILITIES...... 1,105 182 1,432 11 1,619 12 1 45
-------- ------- -------- ------- -------- ------- ------ -------
NET ASSETS.............. $234,542 $28,527 $393,988 $21,259 $204,535 $18,164 $6,029 $15,728
======== ======= ======== ======= ======== ======= ====== =======
Shares of beneficial
interest outstanding.... 17,409 3,076 25,254 1,753 14,225 1,743 563 1,360
-------- ------- -------- ------- -------- ------- ------ -------
Net asset value per
share................... $ 13.47 $ 9.27 $ 15.60 $ 12.12 $ 14.38 $ 10.42 $10.71 $ 11.57
======== ======= ======== ======= ======== ======= ====== =======
Composition of net
assets:
Capital Paid in........ 256,144 29,929 494,657 20,346 188,660 17,535 5,656 14,276
Accumulated net
realized gain (loss) on
investments............ (12,360) (201) (41,335) (457) (252) (68) (79)
Undistributed
(distribution in excess
of) net investment
income................. (667) 51
Net unrealized
appreciation
(depreciation) of:
Investments............ (9,242) (552) (59,334) 1,370 16,076 697 373 1,531
Foreign currency
translation............ 18
-------- ------- -------- ------- -------- ------- ------ -------
Net Assets.............. $234,542 $28,527 $393,988 $21,259 $204,535 $18,164 $6,029 $15,728
======== ======= ======== ======= ======== ======= ====== =======
See notes to financial statements.
38
STATEMENT OF ASSETS AND LIABILITIES--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
(000's Omitted)
Money Mid Cap Small/Mid Cap Bond Large Cap Small/Mid Cap Small/Mid Cap Real Estate
Market Value Growth Index Aggressive Growth CORE Value Equity
-------- -------- ------------- ------- ----------------- ------------- ------------- -----------
ASSETS
Long-Term Investments
at cost................ $103,554 $176,651 $61,775 $28,690 $20,277 $28,089 $132,782
Net unrealized
appreciation
(depreciation) of
investments............ 18,934 3,509 698 (3,085) 281 (143) 21,083
Short-Term Investments
at market.............. $489,445 6,504 10,456 1,167 1,122 800 975 4,220
-------- -------- -------- ------- ------- ------- ------- --------
Total Investments..... 489,445 128,992 190,616 63,640 26,727 21,358 28,921 158,085
Cash................... 1 1 218 20
Receivable for:
Investments sold...... 1,366 106
Fund shares sold...... 5,891 180 62 64 71 64 508 332
Interest.............. 1,598 1,091
Dividends............. 80 38 6 27 21 992
-------- -------- -------- ------- ------- ------- ------- --------
TOTAL ASSETS.......... 496,935 129,252 192,082 64,795 26,805 21,667 29,470 159,515
LIABILITIES
Payables for:
Investments purchased. 2,024 550 20 637
Futures contracts
variation margin...... 16
Other liabilities..... 82 19 48 27 11 15 14 67
-------- -------- -------- ------- ------- ------- ------- --------
TOTAL LIABILITIES..... 82 19 2,072 27 561 31 34 704
-------- -------- -------- ------- ------- ------- ------- --------
NET ASSETS............. $496,853 $129,233 $190,010 $64,768 $26,244 $21,636 $29,436 $158,811
======== ======== ======== ======= ======= ======= ======= ========
Shares of beneficial
interest outstanding... 49,685 8,819 13,866 6,648 2,758 2,204 2,515 11,617
-------- -------- -------- ------- ------- ------- ------- --------
Net asset value per
share.................. $ 10.00 $ 14.65 $ 13.70 $ 9.74 $ 9.52 $ 9.82 $ 11.70 $ 13.67
======== ======== ======== ======= ======= ======= ======= ========
Composition of net
assets:
Capital Paid in....... 496,853 111,999 186,447 64,748 30,148 21,435 29,574 136,878
Accumulated net
realized gain (loss)
on investments........ (92) (1,700) 24 (723) (819) (112) 5 (87)
Undistributed
(distribution in
excess of) net
investment income..... 92 45 936
Net unrealized
appreciation
(depreciation) of:
Investments........... 18,934 3,509 698 (3,085) 281 (143) 21,083
Foreign currency
translation........... 1
Futures contracts..... 32
-------- -------- -------- ------- ------- ------- ------- --------
Net Assets............. $496,853 $129,233 $190,010 $64,768 $26,244 $21,636 $29,436 $158,811
======== ======== ======== ======= ======= ======= ======= ========
See notes to financial statements.
39
STATEMENT OF ASSETS AND LIABILITIES--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
(000's Omitted)
Growth & Short-Term Small Cap International Equity High Yield Global
Income Managed Bond Equity Opportunities Index Bond Bond
---------- ---------- ---------- --------- ------------- -------- ---------- -------
ASSETS
Long-Term Investments at
cost.................... $3,093,579 $2,733,012 $77,268 $ 81,153 $119,383 $491,247 $29,399 $62,664
Net unrealized
appreciation
(depreciation) of
investments............. 167,294 189,423 309 (13,694) (4,033) 15,336 (5,393) 2,743
Short-Term Investments
at market............... 106,957 242,351 1,289 3,191 3,919 18,699 1,127 1,716
---------- ---------- ------- -------- -------- -------- ------- -------
Total Investments...... 3,367,830 3,164,786 78,866 70,650 119,269 525,282 25,133 67,123
Cash.................... 512 761 68 29
Receivable for:
Investments sold....... 2,711 57,348 3
Fund shares sold....... 147 268 77
Interest............... 16,640 1,129 775 1,802
Dividends.............. 2,683 1,627 39 147 428
Futures contracts
variation margin....... 175
Unrealized appreciation
in forward foreign
currency contracts..... 3,780 21
---------- ---------- ------- -------- -------- -------- ------- -------
TOTAL ASSETS........... 3,373,224 3,244,868 80,142 70,689 120,177 526,046 26,014 68,949
LIABILITIES
Payables for:
Due to custodian.......
Investments purchased.. 46,640 238,293 175 29
Fund shares purchased.. 466 1,091 480 30 34
Futures contracts
variation margin....... 241
Unrealized depreciation
in forward foreign
currency contracts..... 8,831 434
Other liabilities...... 1,130 859 33 3 113 146 7 8
---------- ---------- ------- -------- -------- -------- ------- -------
TOTAL LIABILITIES...... 48,236 249,074 33 658 143 387 36 476
---------- ---------- ------- -------- -------- -------- ------- -------
NET ASSETS.............. $3,324,988 $2,995,794 $80,109 $ 70,031 $120,034 $525,659 $25,978 $68,473
========== ========== ======= ======== ======== ======== ======= =======
Shares of beneficial
interest outstanding.... 234,464 216,688 8,122 7,661 10,128 29,793 3,543 6,623
---------- ---------- ------- -------- -------- -------- ------- -------
Net asset value per
share................... $ 14.18 $ 13.82 $ 9.86 $ 9.14 $ 11.85 $ 17.64 $ 7.33 $ 10.34
========== ========== ======= ======== ======== ======== ======= =======
Composition of net
assets:
Capital Paid in........ 3,184,314 2,754,839 81,811 83,810 124,544 511,015 32,140 67,985
Accumulated net
realized gain (loss) on
investments............ (26,620) 7,732 (2,145) (100) (469) (119) (796) (3,395)
Undistributed
(distribution in excess
of) net investment
income................. 47,075 134 15 27 1,463
Net unrealized
appreciation
(depreciation) of:
Investments............ 167,294 189,423 309 (13,694) (4,033) 15,336 (5,393) 2,743
Foreign currency
translation............ (4,920) (8) (323)
Futures contracts...... 1,645 (573)
---------- ---------- ------- -------- -------- -------- ------- -------
Net Assets.............. $3,324,988 $2,995,794 $80,109 $ 70,031 $120,034 $525,659 $25,978 $68,473
========== ========== ======= ======== ======== ======== ======= =======
See notes to financial statements.
40
STATEMENT OF OPERATIONS
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
(000's Omitted)
Emerging
Large Cap Fundmental Aggressive Active CORE Markets International International
Growth Growth Balanced Bond Bond* Equity Equity Index Equity
--------- ---------- ---------- ------- ----- -------- ------------- -------------
INVESTMENT INCOME
Income
Interest............... $ 1,135 $ 129 $ 268 $60,911 $178 $ 112 $ 357 $ 53
Dividends (Note B)..... 6,567 40 139 334 2,899 175
Securities lending..... 130 162 172
--------- ------- ----- ------- ---- -------- -------- -------
7,832 169 407 61,073 178 446 3,428 228
Expenses
Investment advisory fee
(Note C)............... 4,956 249 104 2,573 18 524 354 139
Auditors fees.......... 102 2 1 59 3 16 1
Custodian fees......... 401 19 29 357 529 346 102
Fidelity Bond fees..... 1 1
Legal fees............. 22 13 1 4
Printing & mailing
fees................... 909 16 3 580 1 8 34 3
Trustees fees.......... 22 13 1 4
Other fees............. 9 2 5 6 1
--------- ------- ----- ------- ---- -------- -------- -------
6,422 288 137 3,601 19 1,066 764 246
Less expenses
reimbursed (Note C).... 10 18 202 500 196 92
--------- ------- ----- ------- ---- -------- -------- -------
6,422 278 119 3,399 19 566 568 154
--------- ------- ----- ------- ---- -------- -------- -------
Net Investment Income
(Loss).................. 1,410 (109) 288 57,674 159 (120) 2,860 74
REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENTS
Net realized gain
(loss) on sales of
investments............ 101,421 2,219 (221) (11,679) 27 (614) 6,657 454
Increase in unrealized
appreciation
(depreciation) of:
Investments............ (356,204) (8,121) (433) 36,205 166 (21,121) (51,096) (2,652)
Foreign currency
translation............ 144 70 (2)
Futures................ (177) (559) (43)
--------- ------- ----- ------- ---- -------- -------- -------
Net realized and
unrealized gain (loss)
on investments......... (254,783) (5,902) (654) 24,349 193 (21,591) (44,928) (2,243)
--------- ------- ----- ------- ---- -------- -------- -------
Net increase (decrease)
in net assets resulting
from operations ....... $(253,373) $(6,011) $(366) $82,023 $352 $(21,711) $(42,068) $(2,169)
========= ======= ===== ======= ==== ======== ======== =======
(*) Commenced investment operations on June 30, 2000
See notes to financial statements.
41
STATEMENT OF OPERATIONS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
(000's Omitted)
Small Cap Global Mid Cap Mid Cap Large Cap Large Cap American Leaders Large/Mid Cap Money
Growth Balanced Growth Blend Value Value CORE Large Cap Value* Value Market
--------- -------- --------- ------- --------- ---------- ---------------- ------------- -------
INVESTMENT INCOME
Income
Interest............ $ 306 $ 707 $ 1,570 $ 23 $ 442 $ 35 $ 9 $ 18 $26,023
Dividends (Note B).. 122 272 141 121 4,257 226 48 169
Securities lending.. 418 506 24
-------- ------- --------- ------ ------- ---- ---- ------ -------
846 979 2,217 144 4,723 261 57 187 26,023
Expenses
Investment advisory
fee (Note C)........ 1,965 261 4,303 84 1,222 82 22 88 1,026
Auditors fees....... 19 2 39 1 11 1 1 28
Custodian fees...... 127 100 140 30 68 36 36 91
Fidelity Bond fees.. 1
Legal fees.......... 4 1 9 3 7
Printing & mailing
fees................ 31 12 24 1 1 1 1 37
Trustees fees....... 4 1 9 2 6
Other fees.......... 4 3 1 1
-------- ------- --------- ------ ------- ---- ---- ------ -------
2,154 377 4,528 116 1,307 120 23 126 1,196
Less expenses
reimbursed (Note C). 86 21 27 29
-------- ------- --------- ------ ------- ---- ---- ------ -------
2,154 291 4,528 95 1,307 93 23 97 1,196
-------- ------- --------- ------ ------- ---- ---- ------ -------
Net Investment Income
(Loss)............... (1,308) 688 (2,311) 49 3,416 168 34 90 24,827
REALIZED AND
UNREALIZED GAIN
(LOSS) ON INVESTMENTS
Net realized gain
(loss) on sales of
investments......... (9,498) (789) (7,215) 324 7,226 79 18 103
Increase in
unrealized
appreciation
(depreciation) of:
Investments......... (67,925) (2,824) (229,686) 1,064 11,967 627 373 1,310
Foreign currency
translation......... 86
Futures............. (8)
-------- ------- --------- ------ ------- ---- ---- ------ -------
Net realized and
unrealized gain
(loss) on
investments......... (77,423) (3,527) (236,901) 1,388 19,193 698 391 1,413
-------- ------- --------- ------ ------- ---- ---- ------ -------
Net increase
(decrease) in net
assets resulting
from operations .... $(78,731) $(2,839) $(239,212) $1,437 $22,609 $866 $425 $1,503 $24,827
======== ======= ========= ====== ======= ==== ==== ====== =======
(*) Commenced investment operations on June 30, 2000
See notes to financial statements.
42
STATEMENT OF OPERATIONS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
(000's Omitted)
Mid Cap Small/Mid Bond Large Cap Small/Mid Cap Small/Mid Cap Real Estate
Value Cap Growth Index Aggressive Growth CORE Value Equity
------- ---------- ------ ----------------- ------------- ------------- -----------
INVESTMENT INCOME
Income
Interest............... $ 221 $ 489 $3,416 $ 55 $ 44 $ 31 $ 174
Dividends (Note B)..... 1,080 644 95 195 127 9,360
Securities lending..... 34 72
------- ------- ------ ------- ----- ------ -------
1,335 1,205 3,416 150 239 158 9,534
Expenses
Investment advisory fee
(Note C)............... 830 1,382 73 214 131 127 946
Auditors fees.......... 7 13 3 2 1 1 10
Custodian fees......... 52 74 48 29 67 43 42
Legal fees............. 1 3 2
Printing & mailing
fees................... 9 95 7 4 2 1 74
Trustees fees.......... 2 3 1 2
Other fees............. 1 1 1 2
------- ------- ------ ------- ----- ------ -------
902 1,571 132 249 202 172 1,078
Less expenses
reimbursed (Note C).... 11 11 54 32
------- ------- ------ ------- ----- ------ -------
902 1,571 121 238 148 140 1,078
------- ------- ------ ------- ----- ------ -------
Net Investment Income
(Loss).................. 433 (366) 3,295 (88) 91 18 8,456
REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENTS
Net realized gain
(loss) on sales of
investments ........... 12,793 18,384 (532) (648) 669 3,781 4,057
Increase in unrealized
appreciation
(depreciation) of:
Investments............ 13,928 (2,257) 2,964 (5,205) (561) (223) 25,633
Foreign currency
translation............ 1
Futures................ 25
------- ------- ------ ------- ----- ------ -------
Net realized and
unrealized gain (loss)
on investments......... 26,721 16,127 2,432 (5,853) 133 3,558 29,691
------- ------- ------ ------- ----- ------ -------
Net increase (decrease)
in net assets resulting
from operations ....... $27,154 $15,761 $5,727 $(5,941) $ 224 $3,576 $38,147
======= ======= ====== ======= ===== ====== =======
See notes to financial statements.
43
STATEMENT OF OPERATIONS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
(000's Omitted)
Growth & Short-Term Small Cap International Equity High Yield Global
Income Managed Bond Equity Opportunities Index Bond Bond
--------- -------- ---------- --------- ------------- -------- ---------- ------
INVESTMENT INCOME
Income
Interest............... $ 3,666 $ 83,116 $4,870 $ 120 $ 281 $ 336 $ 2,348 $3,593
Dividends (Note B)..... 44,115 22,600 1,479 1,049 6,368 11
Securities lending..... 255 391 7 53 19
--------- -------- ------ ------- -------- -------- ------- ------
48,036 106,107 4,877 1,599 1,383 6,704 2,359 3,612
Expenses
Investment advisory fee
(Note C)............... 12,188 12,069 221 602 820 682 159 468
Auditors fees.......... 283 230 4 5 7 35 2 5
Custodian fees......... 1,038 1,017 35 52 177 165 48 61
Fidelity Bond fees..... 4 3
Legal fees............. 64 52 1 1 1 7 1
Printing & mailing
fees................... 1,796 1,358 40 65 73 4 59
Trustees fees.......... 61 49 1 1 2 8 1 1
Other fees............. 24 19 1 11
--------- -------- ------ ------- -------- -------- ------- ------
15,458 14,797 262 702 1,072 981 214 595
Less expenses
reimbursed (Note C).... 23 154 30 64
--------- -------- ------ ------- -------- -------- ------- ------
15,458 14,797 262 679 918 981 184 531
--------- -------- ------ ------- -------- -------- ------- ------
Net Investment Income .. 32,578 91,310 4,615 920 465 5,723 2,175 3,081
REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENTS
Net realized gain
(loss) on sales of
investments ........... 445,349 237,169 (582) 4,551 4,855 18,724 (518) (126)
Increase in unrealized
appreciation
(depreciation) of:
Investments............ (990,353) (319,332) 1,702 (12,268) (22,685) (76,321) (4,604) 6,101
Foreign currency
translation ........... (11,297) (3) (1,596)
Futures................ 1,645 (928) (90)
--------- -------- ------ ------- -------- -------- ------- ------
Net realized and
unrealized gain (loss)
on investments.......... (545,004) (91,815) 1,120 (7,717) (17,833) (58,525) (5,122) 4,289
--------- -------- ------ ------- -------- -------- ------- ------
Net increase (decrease)
in net assets resulting
from operations ........ $(512,426) $ (505) $5,735 $(6,797) $(17,368) $(52,802) $(2,947) $7,370
========= ======== ====== ======= ======== ======== ======= ======
See notes to financial statements.
44
STATEMENT OF CHANGES IN NET ASSETS
JOHN HANCOCK VARIABLE SERIES TRUST I
--------------------------------------------------------------------------------
(000's Omitted)
Large Cap Growth Fundamental Growth Aggressive Balanced
------------------------- -------------------------------- --------------------------------
Period from Period from
Year Ended Year Ended Year Ended August 31, 1999 (*) Year Ended August 31, 1999 (*)
December 31, December 31, December 31, to December 31, December 31, to December 31,
2000 1999 2000 1999 2000 1999
------------ ------------ ------------ ------------------- ------------ -------------------
INCREASE/(DECREASE)
IN NET ASSETS
From Operations
Net investment
income (loss).... $ 1,410 $ 4,048 $ (109) $ (11) $ 288 $ 60
Net realized gain
(loss) on sales
of investments... 101,421 246,459 2,219 786 (221) 73
Change in net
unrealized
appreciation
(depreciation) of
Investments...... (356,204) 20,524 (8,121) 2,179 (433) 615
Futures..........
---------- ---------- ------- ------ ------- -------
Net increase
(decrease) in net
assets resulting
from operations.. (253,373) 271,031 (6,011) 2,954 (366) 748
Distributions to
Shareholders From:
Net investment
income........... (2,000) (3,925) (289) (56)
In excess of net
investment
income...........
Realized gain on
investments...... (137,737) (208,789) (2,478) (516) (41) (39)
In excess of
realized gain.... (40,230) (2,097) (15)
Capital paid in.. (3,418) (111)
---------- ---------- ------- ------ ------- -------
Decrease in net
assets resulting
from
distributions... (183,385) (212,714) (4,686) (516) (345) (95)
Trust Share
Transactions
Proceeds from
shares sold...... 206,257 154,558 76,255 6,365 10,598 11,694
Distributions
reinvested....... 183,384 212,714 4,686 516 345 95
Payment for
shares redeemed.. (188,569) (169,880) (33,305) (144) (1,174) (559)
---------- ---------- ------- ------ ------- -------
Increase
(decrease) from
trust share
transactions.... 201,072 197,392 47,636 6,737 9,769 11,230
---------- ---------- ------- ------ ------- -------
NET INCREASE
(DECREASE) IN NET
ASSETS............ (235,686) 255,709 36,939 9,175 9,058 11,883
NET ASSETS
Beginning of
Period........... 1,382,473 1,126,764 9,175 11,883
---------- ---------- ------- ------ ------- -------
End of Period.... $1,146,787 $1,382,473 $46,114 $9,175 $20,941 $11,883
========== ========== ======= ====== ======= =======
Analysis of Trust
Share
Transactions:
Sold............. 7,547 5,540 4,670 608 1,004 1,164
Reinvested....... 9,625 8,043 383 41 33 9
Redeemed......... (7,033) (6,019) (2,005) (13) (110) (54)
---------- ---------- ------- ------ ------- -------
Net increase
(decrease) in
shares
outstanding....... 10,139 7,564 3,048 636 927 1,119
========== ========== ======= ====== ======= =======
Active Bond
-------------------------
Year Ended Year Ended
December 31, December 31,
2000 1999
------------ ------------
INCREASE/(DECREASE)
IN NET ASSETS
From Operations
Net investment
income (loss).... $ 57,674 $ 61,745
Net realized gain
(loss) on sales
of investments... (11,679) (25,838)
Change in net
unrealized
appreciation
(depreciation) of
Investments...... 36,205 (44,681)
Futures.......... (177) 177
------------ ------------
Net increase
(decrease) in net
assets resulting
from operations.. 82,023 (8,597)
Distributions to
Shareholders From:
Net investment
income........... (53,480) (65,478)
In excess of net
investment
income...........
Realized gain on
investments......
In excess of
realized gain....
Capital paid in..
------------ ------------
Decrease in net
assets resulting
from
distributions... (53,480) (65,478)
Trust Share
Transactions
Proceeds from
shares sold...... 95,188 86,852
Distributions
reinvested....... 53,480 65,478
Payment for
shares redeemed.. (185,198) (135,090)
------------ ------------
Increase
(decrease) from
trust share
transactions.... (36,530) 17,240
------------ ------------
NET INCREASE
(DECREASE) IN NET
ASSETS............ (7,987) (56,835)
NET ASSETS
Beginning of
Period........... 850,286 907,121
------------ ------------
End of Period.... $842,299 $850,286
============ ============
Analysis of Trust
Share
Transactions:
Sold............. 10,355 9,038
Reinvested....... 5,823 6,931
Redeemed......... (20,181) (14,198)
------------ ------------
Net increase
(decrease) in
shares
outstanding....... (4,003) 1,771
============ ============
(*) Commencement of operations
See notes to financial statements.
45
STATEMENT OF CHANGES IN NET ASSETS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
--------------------------------------------------------------------------------
(000's Omitted)
International Equity
CORE Bond Emerging Markets Equity Index International Equity
----------------- ------------------------- ------------------------- -----------------------------
Period from Period from
June 29, 2000 (*) Year Ended Year Ended Year Ended Year Ended Year Ended August 1,1999(*)
to December 31, December 31, December 31, December 31, December 31, December 31, to December 31,
2000 2000 1999 2000 1999 2000 1999
----------------- ------------ ------------ ------------ ------------ ------------ ----------------
INCREASE/(DECREASE)
IN NET ASSETS
From Operations
Net investment
income (loss)....... $ 159 $ (120) $ 27 $ 2,860 $ 2,404 $ 74 $ 7
Net realized gain
(loss) on sales of
investments......... 27 (614) 1,607 6,657 4,750 454 190
Change in net
unrealized
appreciation
(depreciation) of
Investments......... 166 (21,121) 9,598 (51,096) 48,346 (2,652) 1,953
Foreign currency
translation......... 144 (142) 70 (133) (2)
Futures............. (559) 517 (43) 20
------ ------- ------- -------- -------- ------- -------
Net increase
(decrease) in net
assets resulting
from operations..... 352 (21,711) 11,090 (42,068) 55,884 (2,169) 2,170
Distributions to
Shareholders From:
Net investment
income.............. (156) (17) (2,257) (2,382) (47) (12)
In excess of net
investment income... (44)
Realized gain on
investments......... (27) (2,658) (250) (7,138) (4,633) (471) (175)
In excess of
realized gain....... (936) (583) (58)
Capital paid in..... (47) (916)
------ ------- ------- -------- -------- ------- -------
Decrease in net
assets resulting
from distributions. (183) (2,705) (1,247) (10,311) (7,598) (576) (187)
Capital Contribution. 445
Trust Share
Transactions
Proceeds from shares
sold................ 5,120 59,279 29,538 61,181 62,080 13,293 10,271
Distributions
reinvested.......... 183 2,705 1,247 10,313 7,598 576 187
Payment for shares
redeemed............ (44) (39,154) (15,787) (68,120) (47,084) (7,838) (11)
------ ------- ------- -------- -------- ------- -------
Increase from trust
share transactions. 5,259 22,830 14,998 3,374 22,594 6,031 10,447
------ ------- ------- -------- -------- ------- -------
NET INCREASE
(DECREASE) IN NET
ASSETS............... 5,428 (1,586) 25,286 (49,005) 70,880 3,286 12,430
NET ASSETS
Beginning of Period. 32,596 7,310 244,017 173,137 12,430
------ ------- ------- -------- -------- ------- -------
End of Period....... $5,428 $31,010 $32,596 $195,012 $244,017 $15,716 $12,430
====== ======= ======= ======== ======== ======= =======
Analysis of Trust
Share Transactions:
Sold................ 512 5,177 3,232 3,450 3,668 1,223 1,024
Reinvested.......... 18 408 113 651 428 59 17
Redeemed............ (5) (3,614) (1,719) (3,854) (2,802) (727) (1)
------ ------- ------- -------- -------- ------- -------
Net increase
(decrease) in shares
outstanding.......... 525 1,971 1,626 247 1,294 555 1,040
====== ======= ======= ======== ======== ======= =======
(*) Commencement of operations
See notes to financial statements.
46
STATEMENT OF CHANGES IN NET ASSETS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
--------------------------------------------------------------------------------
(000's Omitted)
Small Cap Growth Global Balanced Mid Cap Growth Mid Cap Blend
------------------------- ------------------------- ------------------------- -------------------------------
Period from
Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended August 31, 1999(*)
December 31, December 31, December 31, December 31, December 31, December 31, December 31, to December 31,
2000 1999 2000 1999 2000 1999 2000 1999
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------------
INCREASE
(DECREASE) IN NET
ASSETS
From Operations
Net investment
income (loss)... $ (1,308) $ (679) $ 688 $ 813 $ (2,311) $ (1,351) $ 49 $ 14
Net realized
gain (loss) on
sales of
investments..... (9,498) 24,283 (789) 1,839 (7,215) 55,989 324 268
Change in net
unrealized
appreciation
(depreciation)
of Investments.. (67,925) 41,804 (2,824) (519) (229,686) 148,557 1,064 306
Foreign currency
translation..... 86 (606) (33)
-------- -------- ------- ------- --------- -------- ------- ------
Net increase
(decrease) in
net assets
resulting from
operations...... (78,731) 65,408 (2,839) 1,527 (239,212) 203,162 1,437 588
Distributions to
Shareholders
From:
Net investment
income.......... (703) (565) (51) (13)
In excess of net
investment
income..........
Realized gain on
investments..... (1,933) (21,491) (41) (1,836) (8,563) (46,186) (391) (204)
In excess of
realized gain... (283) (33,799) (455)
Capital paid in. (20,976) (355) (230) (22,185)
-------- -------- ------- ------- --------- -------- ------- ------
Decrease in net
assets resulting
from
distributions... (22,909) (21,491) (1,382) (2,631) (64,547) (46,186) (897) (217)
Trust Share
Transactions
Proceeds from
shares sold..... 239,410 66,717 8,360 6,406 311,599 192,846 17,016 5,275
Distributions
reinvested...... 22,968 21,491 1,382 2,631 64,547 46,186 897 217
Payment for
shares redeemed. (105,766) (27,404) (8,571) (6,772) (131,336) (37,156) (3,004) (53)
-------- -------- ------- ------- --------- -------- ------- ------
Increase from
trust share
transactions.... 156,612 60,804 1,171 2,265 244,810 201,876 14,909 5,439
-------- -------- ------- ------- --------- -------- ------- ------
NET INCREASE
(DECREASE) IN NET
ASSETS........... 54,972 104,721 (3,050) 1,161 (58,949) 358,852 15,449 5,810
NET ASSETS
Beginning of
Period.......... 179,570 74,849 31,577 30,416 452,937 94,085 5,810
-------- -------- ------- ------- --------- -------- ------- ------
End of Period... $234,542 $179,570 $28,527 $31,577 $ 393,988 $452,937 $21,259 $5,810
======== ======== ======= ======= ========= ======== ======= ======
Analysis of Trust
Share
Transactions:
Sold............ 11,984 4,233 848 590 10,835 9,353 1,377 526
Reinvested...... 1,788 1,245 145 251 4,228 1,749 75 22
Redeemed........ (5,757) (1,847) (867) (625) (5,305) (1,830) (242) (5)
-------- -------- ------- ------- --------- -------- ------- ------
Net increase in
shares
outstanding...... 8,015 3,631 126 216 9,758 9,272 1,210 543
======== ======== ======= ======= ========= ======== ======= ======
(*) Commencement of operations
See notes to financial statements.
47
STATEMENT OF CHANGES IN NET ASSETS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
--------------------------------------------------------------------------------
(000's Omitted)
American Leaders
Large Cap Large Cap
Large Cap Value Value CORE Value Large/Mid Cap Value
------------------------- ------------------------------- ---------------- -------------------------------
Period from Period from Period from
Year Ended Year Ended Year Ended August 31, 1999(*) June 30, 2000(*) Year Ended August 31, 1999(*)
December 31, December 31, December 31, to December 31, to December 31, December 31, to December 31,
2000 1999 2000 1999 2000 2000 1999
------------ ------------ ------------ ------------------ ---------------- ------------ ------------------
INCREASE
(DECREASE) IN NET
ASSETS
From Operations
Net investment
income.......... $ 3,416 $ 2,774 $ 168 $ 21 $ 34 $ 90 $ 17
Net realized
gain on sales of
investments..... 7,226 7,671 79 100 18 103 11
Change in net
unrealized
appreciation
(depreciation)
of
Investments..... 11,967 (7,556) 627 70 373 1,310 221
Futures......... (8) 8
-------- -------- ------- ------ ------ ------- ------
Net increase
(decrease) in
net assets
resulting from
operations...... 22,609 2,889 866 199 425 1,503 249
Distributions to
Shareholders
From:
Net investment
income.......... (3,459) (2,733) (169) (19) (34) (91) (15)
In excess of net
investment
income.......... (6)
Realized gain on
investments..... (7,200) (7,756) (93) (82) (18) (106) (11)
In excess of
realized gain... (131) (28) (59) (4) (71) (4)
Capital paid in. (90) (14) (9)
-------- -------- ------- ------ ------ ------- ------
Decrease in net
assets resulting
from
distributions... (10,886) (10,517) (335) (114) (52) (268) (30)
Trust Share
Transactions
Proceeds from
shares sold..... 73,820 64,676 11,275 6,323 6,694 8,712 5,905
Distributions
reinvested...... 10,886 10,517 335 114 51 268 30
Payment for
shares redeemed. (47,743) (35,081) (348) (151) (1,089) (588) (53)
-------- -------- ------- ------ ------ ------- ------
Increase from
trust share
transactions.... 36,963 40,112 11,262 6,286 5,656 8,392 5,882
-------- -------- ------- ------ ------ ------- ------
NET INCREASE
(DECREASE) IN NET
ASSETS........... 48,686 32,484 11,793 6,371 6,029 9,627 6,101
NET ASSETS
Beginning of
Period.......... 155,849 123,365 6,371 6,101
-------- -------- ------- ------ ------ ------- ------
End of Period... $204,535 $155,849 $18,164 $6,371 $6,029 $15,728 $6,101
======== ======== ======= ====== ====== ======= ======
Analysis of Trust
Share
Transactions:
Sold............ 5,462 4,383 1,118 630 662 806 588
Reinvested...... 780 774 33 12 4 24 3
Redeemed........ (3,569) (2,404) (35) (15) (103) (56) (5)
-------- -------- ------- ------ ------ ------- ------
Net increase in
shares
outstanding...... 2,673 2,753 1,116 627 563 774 586
======== ======== ======= ====== ====== ======= ======
(*) Commencement of operations
See notes to financial statements.
48
STATEMENT OF CHANGES IN NET ASSETS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
--------------------------------------------------------------------------------
(000's Omitted)
Money Market Mid Cap Value Small/Mid Cap Growth Bond Index
------------------------- ------------------------- ------------------------- -------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended
December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31,
2000 1999 2000 1999 2000 1999 2000 1999
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
INCREASE
(DECREASE) IN NET
ASSETS
From Operations
Net investment
income (loss)... $ 24,827 $ 19,133 $ 433 $ 584 $ (366) $ (497) $ 3,295 $ 2,119
Net realized
gain (loss) on
sales of
investments..... 12,793 (2,104) 18,384 26,575 (532) (186)
Change in net
unrealized
appreciation
(depreciation)
of investments.. 13,928 5,960 (2,257) (17,156) 2,964 (2,724)
-------- -------- -------- ------- -------- -------- ------- -------
Net increase
(decrease) in
net assets
resulting from
operations...... 24,827 19,133 27,154 4,440 15,761 8,922 5,727 (791)
Distributions to
Shareholders
From:
Net investment
income.......... (25,112) (19,133) (434) (580) (26,069) (3,317) (2,057)
In excess of net
investment
income..........
Realized gain on
investments..... (3,233) (17,683) (1,884)
In excess of
realized gain... (9,663) (1,947)
Capital paid in.
-------- -------- -------- ------- -------- -------- ------- -------
Decrease in net
assets resulting
from
distributions... (25,112) (19,133) (13,330) (580) (19,630) (27,953) (3,317) (2,057)
Capital
Contribution..... 284
Trust Share
Transactions
Proceeds from
shares sold..... 582,795 557,157 46,034 29,586 35,984 22,355 45,465 14,617
Distributions
reinvested...... 25,121 19,133 13,330 580 19,630 27,953 1,488 2,057
Payment for
shares redeemed. (562,297) (520,250) (36,105) (36,696) (43,666) (42,678) (23,031) (3,391)
-------- -------- -------- ------- -------- -------- ------- -------
Increase
(decrease) from
trust share
transactions.... 45,619 56,040 23,259 (6,530) 11,948 7,630 23,922 13,283
-------- -------- -------- ------- -------- -------- ------- -------
NET INCREASE
(DECREASE) IN NET
ASSETS........... 45,618 56,040 37,083 (2,670) 8,079 (11,401) 26,332 10,435
NET ASSETS
Beginning of
Period.......... 451,235 395,195 92,150 94,820 181,931 193,332 38,436 28,001
-------- -------- -------- ------- -------- -------- ------- -------
End of Period... $496,853 $451,235 $129,233 $92,150 $190,010 $181,931 $64,768 $38,436
======== ======== ======== ======= ======== ======== ======= =======
Analysis of Trust
Share
Transactions:
Sold............ 58,279 55,717 3,243 2,380 2,392 1,398 4,808 1,516
Reinvested...... 2,512 1,913 935 48 1,474 2,105 158 213
Redeemed........ (56,230) (52,025) (2,571) (2,997) (2,963) (2,669) (2,443) (352)
-------- -------- -------- ------- -------- -------- ------- -------
Net increase
(decrease) in
shares
outstanding...... 4,561 5,605 1,607 (569) 903 834 2,523 1,377
======== ======== ======== ======= ======== ======== ======= =======
See notes to financial statements.
49
STATEMENT OF CHANGES IN NET ASSETS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
--------------------------------------------------------------------------------
(000's Omitted)
Large Cap Aggressive Growth Small/Mid Cap CORE Small/Mid Cap Value
-------------------------------- ------------------------- --------------------------------
Period from Period from
Year Ended August 31, 1999 (*) Year Ended Year Ended Year Ended August 31, 1999 (*)
December 31, to December 31, December 31, December 31, December 31, to December 31,
2000 1999 2000 1999 2000 1999
------------ ------------------- ------------ ------------ ------------ -------------------
INCREASE
(DECREASE) IN NET
ASSETS
From Operations
Net investment
income (loss).... $ (88) $ (15) $ 91 $ 18 $ 18 $ (2)
Net realized gain
(loss) on sales
of investments... (648) 133 669 714 3,781 190
Change in net
unrealized
appreciation
(depreciation) of
Investments...... (5,205) 2,120 (561) 578 (223) 80
Foreign currency
translation......
Futures.......... 25 7
------- ------- ------- ------ ------- ------
Net increase
(decrease) in net
assets resulting
from operations.. (5,941) 2,238 224 1,317 3,576 268
Distributions to
Shareholders From:
Net investment
income........... (90) (18) (17)
In excess of net
investment
income...........
Realized gain on
investments...... (28) (93) (671) (715) (3,779) (185)
In excess of
realized gain.... (168) (102)
Capital paid in.. (284) (53)
------- ------- ------- ------ ------- ------
Decrease in net
assets resulting
from
distributions.... (480) (93) (916) (733) (3,796) (185)
Trust Share
Transactions
Proceeds from
shares sold...... 24,586 12,920 22,514 5,301 21,624 5,326
Distributions
reinvested....... 481 93 669 733 3,796 185
Payment for
shares redeemed.. (7,476) (84) (9,103) (3,385) (1,334) (24)
------- ------- ------- ------ ------- ------
Increase
(decrease) from
trust share
transactions.... 17,591 12,929 14,080 2,649 24,086 5,487
------- ------- ------- ------ ------- ------
NET INCREASE
(DECREASE) IN NET
ASSETS............ 11,170 15,074 13,388 3,233 23,866 5,570
NET ASSETS
Beginning of
Period........... 15,074 8,248 5,015 5,570
------- ------- ------- ------ ------- ------
End of Period.... $26,244 $15,074 $21,636 $8,248 $29,436 $5,570
======= ======= ======= ====== ======= ======
Analysis of Trust
Share
Transactions:
Sold............. 2,136 1,262 2,174 557 1,733 533
Reinvested....... 51 8 70 80 339 19
Redeemed......... (692) (7) (880) (353) (107) (2)
------- ------- ------- ------ ------- ------
Net increase
(decrease) in
shares
outstanding....... 1,495 1,263 1,364 284 1,965 550
======= ======= ======= ====== ======= ======
Real Estate Equity
-------------------------
Year Ended Year Ended
December 31, December 31,
2000 1999
------------ ------------
INCREASE
(DECREASE) IN NET
ASSETS
From Operations
Net investment
income (loss).... $ 8,456 $ 8,880
Net realized gain
(loss) on sales
of investments... 4,057 (5,679)
Change in net
unrealized
appreciation
(depreciation) of
Investments...... 25,633 (5,829)
Foreign currency
translation...... 1
Futures..........
------------ ------------
Net increase
(decrease) in net
assets resulting
from operations.. 38,147 (2,628)
Distributions to
Shareholders From:
Net investment
income........... (8,456) (8,957)
In excess of net
investment
income........... (404)
Realized gain on
investments...... (649)
In excess of
realized gain.... (3,328)
Capital paid in.. (1,440)
------------ ------------
Decrease in net
assets resulting
from
distributions.... (14,277) (8,957)
Trust Share
Transactions
Proceeds from
shares sold...... 51,873 19,688
Distributions
reinvested....... 14,277 8,957
Payment for
shares redeemed.. (57,423) (43,635)
------------ ------------
Increase
(decrease) from
trust share
transactions.... 8,727 (14,990)
------------ ------------
NET INCREASE
(DECREASE) IN NET
ASSETS............ 32,597 (26,575)
NET ASSETS
Beginning of
Period........... 126,214 152,789
------------ ------------
End of Period.... $158,811 $126,214
============ ============
Analysis of Trust
Share
Transactions:
Sold............. 4,031 1,643
Reinvested....... 1,085 756
Redeemed......... (4,499) (3,662)
------------ ------------
Net increase
(decrease) in
shares
outstanding....... 617 (1,263)
============ ============
(*) Commencement of operations
See notes to financial statements.
50
STATEMENT OF CHANGES IN NET ASSETS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
--------------------------------------------------------------------------------
(000's Omitted)
Growth & Income Managed Short-Term Bond Small Cap Equity
------------------------- ------------------------- ------------------------- -------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended
December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31,
2000 1999 2000 1999 2000 1999 2000 1999
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
INCREASE
(DECREASE) IN NET
ASSETS
From Operations
Net investment
income........... $ 32,578 $ 38,514 $ 91,310 $ 92,042 $ 4,615 $ 4,503 $ 920 $ 501
Net realized gain
(loss) on sales
of investments... 445,349 516,452 237,169 287,125 (582) (1,350) 4,551 950
Change in net
unrealized
appreciation
(depreciation) of
Investments...... (990,353) 38,349 (319,332) (97,986) 1,702 (1,085) (12,268) (3,703)
Foreign currency
translation...... (11,297) 11,252
Futures.......... 1,645 (316)
---------- ---------- ---------- ---------- ------- -------- ------- --------
Net increase
(decrease) in net
assets resulting
from operations.. (512,426) 593,315 (505) 292,117 5,735 2,068 (6,797) (2,252)
Distributions to
Shareholders From:
Net investment
income........... (33,412) (37,895) (93,117) (89,766) (4,591) (4,483) (1,004) (419)
In excess of net
investment
income...........
Realized gain on
investments...... (519,555) (444,028) (235,437) (236,198) (990) (92)
In excess of
realized gain.... (25,745) (1,431) (1,087)
Capital paid in . (44,762) (2,130)
---------- ---------- ---------- ---------- ------- -------- ------- --------
Decrease in net
assets resulting
from
distributions.... (623,474) (481,923) (328,554) (325,964) (4,591) (4,483) (5,555) (1,598)
Trust Share
Transactions
Proceeds from
shares sold...... 110,896 271,718 66,759 229,925 29,529 33,554 33,823 26,942
Distributions
reinvested....... 623,473 481,923 328,531 325,964 4,591 4,483 5,555 1,598
Payment for
shares redeemed.. (492,322) (316,977) (501,356) (393,033) (23,999) (43,972) (25,895) (19,885)
---------- ---------- ---------- ---------- ------- -------- ------- --------
Increase
(decrease) from
trust share
transactions.... 242,047 436,664 (106,066) 162,856 10,121 (5,935) 13,483 8,655
---------- ---------- ---------- ---------- ------- -------- ------- --------
NET INCREASE
(DECREASE) IN NET
ASSETS............ (893,853) 548,056 (435,125) 129,009 11,265 (8,350) 1,131 4,805
NET ASSETS
Beginning of
Period........... 4,218,841 3,670,785 3,430,919 3,301,910 68,844 77,194 68,900 64,095
---------- ---------- ---------- ---------- ------- -------- ------- --------
End of Period.... $3,324,988 $4,218,841 $2,995,794 $3,430,919 $80,109 $ 68,844 $70,031 $ 68,900
========== ========== ========== ========== ======= ======== ======= ========
Analysis of Trust
Share
Transactions:
Sold............. 5,816 13,198 4,373 14,370 3,035 3,382 3,114 2,410
Reinvested....... 43,333 24,670 23,203 21,188 472 455 614 152
Redeemed......... (25,508) (15,364) (32,979) (24,638) (2,466) (4,438) (2,378) (1,782)
---------- ---------- ---------- ---------- ------- -------- ------- --------
Net increase
(decrease) in
shares
outstanding....... 23,641 22,504 (5,403) 10,920 1,041 (601) 1,350 780
========== ========== ========== ========== ======= ======== ======= ========
See notes to financial statements.
51
STATEMENT OF CHANGES NET ASSETS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
--------------------------------------------------------------------------------
(000's Omitted)
International
Opportunities Equity Index High Yield Bond Global Bond
------------------------- ------------------------- ------------------------- -------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended
December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31,
2000 1999 2000 1999 2000 1999 2000 1999
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
INCREASE
(DECREASE) IN NET
ASSETS
From Operations
Net investment
income.......... $ 465 $ 518 $ 5,723 $ 4,679 $ 2,175 $ 1,357 $ 3,081 $ 3,346
Net realized
gain (loss) on
sales of
investments..... 4,855 4,853 18,724 14,409 (518) (275) (126) (178)
Change in net
unrealized
appreciation
(depreciation)
of
Investments..... (22,685) 15,077 (76,321) 45,659 (4,604) (223) 6,101 (5,951)
Foreign currency
translation..... (3) (7) (1,596) 1,134
Futures......... (928) 99 (90) 75
-------- -------- -------- -------- ------- -------- ------- -------
Net increase
(decrease) in
net assets
resulting from
operations...... (17,368) 20,441 (52,802) 64,846 (2,947) 859 7,370 (1,574)
Distributions to
Shareholders
From:
Net investment
income.......... (423) (565) (5,292) (4,536) (2,186) (1,323) (4,040) (3,871)
In excess of net
investment
income.......... (2)
Realized gain on
investments..... (4,722) (4,642) (20,438) (13,884)
In excess of
realized gain... (390) (180) (231)
Capital paid in. (749) (555)
-------- -------- -------- -------- ------- -------- ------- -------
Decrease in net
assets resulting
from
distributions... (6,284) (5,389) (26,516) (18,420) (2,186) (1,323) (4,040) (3,871)
Trust Share
Transactions
Proceeds from
shares sold..... 81,609 34,115 226,311 220,255 22,157 18,264 11,709 29,103
Shares issued in
reorganization
(Note F)........ 22,528
Distributions
reinvested...... 6,285 5,389 26,516 18,420 2,227 1,323 4,046 3,871
Payment for
shares redeemed. (46,530) (39,012) (99,146) (66,383) (13,194) (13,991) (21,603) (23,329)
-------- -------- -------- -------- ------- -------- ------- -------
Increase
(decrease) from
trust share
transactions.... 63,892 492 153,681 172,292 11,190 5,596 (5,848) 9,645
-------- -------- -------- -------- ------- -------- ------- -------
NET INCREASE
(DECREASE) IN NET
ASSETS........... 40,240 15,544 74,363 218,718 6,057 5,132 (2,518) 4,200
NET ASSETS
Beginning of
Period.......... 79,794 64,250 451,296 232,578 19,921 14,789 70,991 66,791
-------- -------- -------- -------- ------- -------- ------- -------
End of Period... $120,034 $ 79,794 $525,659 $451,296 $25,978 $ 19,921 $68,473 $70,991
======== ======== ======== ======== ======= ======== ======= =======
Analysis of Trust
Share
Transactions:
Sold............ 5,776 2,657 11,361 11,477 2,663 2,003 1,168 2,816
Shares issued in
reorganization
(Note F)........ 1,947
Reinvested...... 536 388 1,473 939 273 146 401 382
Redeemed........ (3,390) (3,046) (5,101) (3,495) (1,610) (1,534) (2,176) (2,269)
-------- -------- -------- -------- ------- -------- ------- -------
Net increase
(decrease) in
shares
outstanding...... 4,869 (1) 7,733 8,921 1,326 615 (607) 929
======== ======== ======== ======== ======= ======== ======= =======
See notes to financial statements.
52
FINANCIAL HIGHLIGHTS
JOHN HANCOCK VARIABLE SERIES TRUST I
--------------------------------------------------------------------------------
Selected data for each share of beneficial interest outstanding throughout the
year end indicated:
Income from Investment Operations Less Distributions
--------------------------------------- -------------------------------------------------------
Net Realized
Net Asset Net and Total Distribution Distribution Distribution in Distributions
Value at Investment Unrealized From From Net From Net Excess of From
Beginning Income Gain (Loss) Investment Investment Gains on Net Investment Capital
of Period (Loss) on Investments(a) Operations Income Investments Income/Gains Paid in
--------- ---------- ----------------- ---------- ------------ ------------ --------------- -------------
Large Cap Growth
Year Ended
December 31,
2000............ $27.33 $0.03 $(4.89) $(4.86) $(0.04) $(2.69) $(0.78) $(0.07)
1999............ 26.19 0.09 6.03 6.12 (0.09) (4.89) -- --
1998............ 20.82 0.14 8.05 8.19 (0.14) (2.68) -- --
1997............ 17.49 0.17 5.21 5.38 (0.17) (1.88) -- --
1996............ 17.37 0.25 2.89 3.14 (0.25) (2.77) -- --
------------------------------------------------------------------------------------------------------------------------------------
Fundamental
Growth
Year Ended
December 31,
2000 (c)........ 14.42 (0.02) (0.44) (0.46) -- (0.76) (0.65) (0.03)
Period from
August 31, to
December 31,
1999 (e)........ 10.00 (0.02) 5.34 5.32 -- (0.90) -- --
------------------------------------------------------------------------------------------------------------------------------------
Aggressive
Balanced
Year Ended
December 31,
2000............ 10.62 0.19 (0.35) (0.16) (0.19) (0.02) (0.01) --
Period from
August 31, to
December 31,
1999 (e)........ 10.00 0.06 0.64 0.70 (0.05) (0.03) -- --
------------------------------------------------------------------------------------------------------------------------------------
Active Bond
Year Ended
December 31,
2000............ 9.12 0.64 0.28 0.92 (0.60) -- -- --
1999............ 9.92 0.67 (0.76) (0.09) (0.71) -- -- --
1998............ 9.95 0.69 0.11 0.80 (0.69) (0.14) -- --
1997............ 9.77 0.71 0.24 0.95 (0.71) (0.06) -- --
1996............ 10.13 0.69 (0.31) 0.38 (0.69) (0.05) -- --
------------------------------------------------------------------------------------------------------------------------------------
CORE Bond
Period from June
30, to
December 31,
2000 (e)........ 10.00 0.32 0.37 0.69 (0.31) (0.05) -- --
------------------------------------------------------------------------------------------------------------------------------------
Emerging Markets
Equity
Year Ended
December 31,
2000............ 12.26 (0.02) (4.91) (4.93) -- (0.62) -- (0.01)
1999 (k)........ 7.09 0.03 5.35 5.38 (0.01) (0.10) (0.42) --
Period from May
1, to
December 31,
1998 (e)........ 10.00 0.03 (2.91) (2.88) (0.02) -- -- (0.01)
------------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
--------------------------------------------
Number of Net
Net Asset Shares Net Assets Operating Investment
Value at Outstanding Total End of Period Expenses to Income (Loss)
Total Capital End (000's Investment (000's Average to Average
Distributions Contributions of Period Omitted) Return(b) Omitted) Net Assets Net Assets
------------- ------------- --------- ----------- ------------- ------------- --------------- -------------
Large Cap Growth
Year Ended
December 31,
2000............ $(3.58) -- $18.89 60,719 (17.89)% $1,146,787 0.46% 0.10%
1999............ (4.98) -- 27.33 50,580 24.07% 1,382,473 0.39% 0.33%
1998............ (2.82) -- 26.19 43,016 39.51% 1,126,764 0.41% 0.59%
1997............ (2.05) -- 20.82 36,236 30.89% 754,398 0.44% 0.86%
1996............ (3.02) -- 17.49 29,965 18.27% 524,145 0.44% 1.35%
------------------------------------------------------------------------------------------------------------------------------
Fundamental
Growth
Year Ended
December 31,
2000 (c)........ (1.44) -- 12.52 3,684 (3.03)% 46,114 0.96%(d) (0.38)%
Period from
August 31, to
December 31,
1999 (e)........ (0.90) -- 14.42 636 54.57%(f) 9,175 0.95%(d)(g) (0.55)%(g)
------------------------------------------------------------------------------------------------------------------------------
Aggressive
Balanced
Year Ended
December 31,
2000............ (0.22) -- 10.24 2,046 (1.53)% 20,941 0.78%(h) 1.87%
Period from
August 31, to
December 31,
1999 (e)........ (0.08) -- 10.62 1,119 7.09%(f) 11,883 0.78%(g)(h) 1.68%(g)
------------------------------------------------------------------------------------------------------------------------------
Active Bond
Year Ended
December 31,
2000............ (0.60) -- 9.44 89,197 10.45% 842,299 0.41%(i) 6.98%
1999............ (0.71) -- 9.12 93,200 (0.94)% 850,286 0.28% 6.97%
1998............ (0.83) -- 9.92 91,429 8.23% 907,121 0.29% 6.84%
1997............ (0.77) -- 9.95 80,789 10.11% 803,770 0.31% 7.18%
1996............ (0.74) -- 9.77 74,315 4.10% 726,111 0.29% 7.07%
------------------------------------------------------------------------------------------------------------------------------
CORE Bond
Period from June
30, to
December 31,
2000 (e)........ (0.36) -- 10.33 525 7.00%(f) 5,428 0.75%(g) 16.09%(g)
------------------------------------------------------------------------------------------------------------------------------
Emerging Markets
Equity
Year Ended
December 31,
2000............ (0.63) -- 6.70 4,629 (40.11)% 31,010 1.32%(j) (0.28)%
1999 (k)........ (0.53) $0.32 12.26 2,658 81.37%(12) 32,596 1.39%(j) 0.19%
Period from May
1, to
December 31,
1998 (e)........ (0.03) -- 7.09 1,032 (28.87)%(f) 7,310 1.55%(g)(j) 0.51%(g)
-------------------------------------------------------------------------------------------------------------------------------
Portfolio
Turnover
Rate
---------
Large Cap Growth
Year Ended
December 31,
2000............ 89.30%
1999............ 37.42%
1998............ 56.41%
1997............ 83.82%
1996............ 135.98%
----------------------------------------------
Fundamental
Growth
Year Ended
December 31,
2000 (c)........ 250.46%
Period from
August 31, to
December 31,
1999 (e)........ 61.66%(f)
----------------------------------------------
Aggressive
Balanced
Year Ended
December 31,
2000............ 164.89%
Period from
August 31, to
December 31,
1999 (e)........ 70.28%(f)
----------------------------------------------
Active Bond
Year Ended
December 31,
2000............ 164.34%
1999............ 182.90%
1998............ 228.74%
1997............ 138.29%
1996............ 119.12%
----------------------------------------------
CORE Bond
Period from June
30, to
December 31,
2000 (e)........ 131.71%(f)
----------------------------------------------
Emerging Markets
Equity
Year Ended
December 31,
2000............ 103.90%
1999 (k)........ 196.32%
Period from May
1, to
December 31,
1998 (e)........ 53.95%(f)
----------------------------------------------
53
FINANCIAL HIGHLIGHTS
JOHN HANCOCK VARIABLE SERIES TRUST I
--------------------------------------------------------------------------------
Selected data for each share of beneficial interest outstanding throughout the
year end indicated:
Income from Investment Operations Less Distributions
--------------------------------------- -------------------------------------------------------
Net Realized
Net Asset Net and Total Distribution Distribution Distribution in Distributions
Value at Investment Unrealized From From Net From Net Excess of From
Beginning Income Gain (Loss) Investment Investment Gains on Net Investment Capital
of Period (Loss) on Investments(a) Operations Income Investments Income/Gains Paid in
--------- ---------- ----------------- ---------- ------------ ------------ --------------- -------------
International
Equity Index
Year Ended
December 31,
2000............ $19.64 $0.23 $(3.64) $(3.41) $(0.18) $(0.59) -- $(0.07)
1999............ 15.56 0.21 4.51 4.72 (0.21) (0.38) $(0.05) --
1998............ 15.20 0.23 2.91 3.14 (0.23) (2.55) -- --
1997............ 16.83 0.13 (0.97) (0.84) (0.13) (0.66) -- --
1996............ 15.61 0.21 1.22 1.43 (0.21) -- -- --
-----------------------------------------------------------------------------------------------------------------------------
International
Equity
Year ended
December 31,
2000............ 11.95 0.06 (1.78) (1.72) (0.04) (0.30) (0.04) --
Period from
August 31, to
December 31,
1999 (e)........ 10.00 0.01 2.12 2.13 (0.01) (0.17) -- --
-----------------------------------------------------------------------------------------------------------------------------
Small Cap Growth
Year ended
December 31,
2000............ 19.12 (0.02) (4.16) (4.18) -- (0.12) -- (1.35)
1999............ 12.99 (0.21) 9.06 8.85 -- (2.72) -- --
1998............ 11.34 (0.05) 1.70 1.65 -- -- -- --
1997............ 9.93 (0.02) 1.44 1.42 -- -- -- (0.01)
Period from May
1, to December
31, 1996 (e).... 10.00 0.01 (0.06) (0.05) (0.02) -- -- --
-----------------------------------------------------------------------------------------------------------------------------
Global Balanced
Year ended
December 31,
2000 (o)........ 10.71 0.23 (1.20) (0.97) (0.24) (0.01) (0.10) (0.12)
1999............ 11.12 0.29 0.25 0.54 (0.29) (0.44) (0.16) (0.06)
1998............ 10.11 0.34 1.44 1.78 (0.34) (0.42) -- (0.01)
1997............ 10.39 0.33 (0.05) 0.28 (0.33) (0.22) -- (0.01)
Period from May
1, to December
31, 1996 (e).... 10.00 0.24 0.41 0.65 (0.24) (0.02) -- --
-----------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
--------------------------------------------------------
Number of Net
Net Asset Shares Net Assets Operating Investment
Value at Outstanding Total End of Period Expenses to Income (Loss) Portfolio
Total End (000's Investment (000's Average to Average Turnover
Distributions of Period Omitted) Return(b) Omitted) Net Assets Net Assets Rate
------------- --------- ----------- ------------- ------------- --------------- ------------- ------------
International
Equity Index
Year Ended
December 31,
2000............ $(0.84) $15.39 12,668 (17.42)% $195,012 0.28%(l) 1.40% 14.86%
1999............ (0.64) 19.64 12,421 30.87% 244,017 0.31%(l) 1.26% 19.01%
1998............ (2.78) 15.56 11,127 20.82% 173,137 0.56%(l) 1.45% 158.63%
1997............ (0.79) 15.20 10,024 (5.03)% 152,359 0.79% 0.78% 83.13%
1996............ (0.21) 16.83 9,254 9.19% 155,753 0.76% 1.30% 92.03%
-----------------------------------------------------------------------------------------------------------------------------
International
Equity
Year ended
December 31,
2000............ (0.38) 9.85 1,595 (14.37)% 15,716 1.10%(m) 0.53% 75.41%
Period from
August 31, to
December 31,
1999 (e)........ (0.18) 11.95 1,040 21.49%(f) 12,430 1.10%(g)(m) 0.21%(g) 26.76%(f)
-----------------------------------------------------------------------------------------------------------------------------
Small Cap Growth
Year ended
December 31,
2000............ (1.47) 13.47 17,409 (21.43)% 234,542 0.82% (0.50)% 97.73%
1999............ (2.72) 19.12 9,394 70.38% 179,570 0.89% (0.70)% 113.11%
1998............ -- 12.99 5,763 14.49% 74,849 1.00%(n) (0.65)% 101.16%
1997............ (0.01) 11.34 4,298 14.26% 48,761 1.00%(n) (0.28)% 86.23%
Period from May
1, to December
31, 1996 (e).... (0.02) 9.93 2,077 (0.50)%(f) 20,633 1.00%(g)(n) 0.12%(g) 50.93%(f)
-----------------------------------------------------------------------------------------------------------------------------
Global Balanced
Year ended
December 31,
2000 (o)........ (0.47) 9.27 3,076 (9.08)% 28,527 0.98%(p) 2.32% 171.38%
1999............ (0.95) 10.71 2,950 5.11% 31,577 1.00%(p) 2.73% 131.21%
1998............ (0.77) 11.12 2,734 17.99% 30,416 1.10%(p) 3.20% 103.55%
1997............ (0.56) 10.11 2,514 2.65% 25,420 1.10%(p) 3.18% 81.04%
Period from May
1, to December
31, 1996 (e).... (0.26) 10.39 2,319 6.73%(f) 24,098 1.10%(g)(p) 3.59%(g) 22.21%(f)
-----------------------------------------------------------------------------------------------------------------------------
54
FINANCIAL HIGHLIGHTS
JOHN HANCOCK VARIABLE SERIES TRUST I
--------------------------------------------------------------------------------
Selected data for each share of beneficial interest outstanding throughout the
year end indicated:
Income from Investment Operations Less Distributions
------------------------------------ -----------------------------------------------------
Net Realized
Net Asset Net and Distribution Distribution Distribution
Value at Investment Unrealized Total From From Net From Net in Excess of Distribution
Beginning Income Gain (Loss) on Investment Investment Gains on Net Investment From Capital
of Period (Loss) Investments(a) Operations Income Investments Income/Gains Paid in
--------- ---------- -------------- ---------- ------------ ------------ -------------- ------------
Mid Cap Growth
Year ended
December 31,
2000............ $29.22 $(0.05) $(10.49) $(10.54) -- $(0.41) $(1.61) $(1.06)
1999............ 15.12 (0.19) 17.70 17.51 -- (3.41) -- --
1998............ 11.93 (0.09) 4.75 4.66 -- (1.32) -- (0.15)
1997............ 10.22 (0.02) 1.73 1.71 -- -- -- --
Period from May
1, to December
31, 1996 (e).... 10.00 0.05 0.22 0.27 $(0.05) -- -- --
----------------------------------------------------------------------------------------------------------------------------
Mid Cap Blend
Year ended
December 31,
2000............ 10.70 0.04 1.93 1.97 (0.04) (0.24) (0.27) --
Period from
August 31, to
December 31,
1999 (e)........ 10.00 0.03 1.10 1.13 (0.03) (0.40) -- --
----------------------------------------------------------------------------------------------------------------------------
Large Cap Value
Year ended
December 31,
2000............ 13.49 0.27 1.45 1.72 (0.28) (0.53) (0.01) (0.01)
1999............ 14.02 0.27 0.18 0.45 (0.27) (0.71) -- --
1998............ 13.57 0.28 0.96 1.24 (0.28) (0.51) -- --
1997............ 11.09 0.29 2.84 3.13 (0.29) (0.36) -- --
Period from May
1, to December
31, 1996 (e).... 10.00 0.16 1.22 1.38 (0.16) (0.13) -- --
----------------------------------------------------------------------------------------------------------------------------
Large Cap Value
CORE
Year ended
December 31,
2000............ 10.16 0.15 0.36 0.51 (0.15) (0.06) (0.03) ((0.01)
Period from
August 31, to
December 31,
1999 (e)........ 10.00 0.04 0.31 0.35 (0.03) (0.14) (0.01) (0.01)
----------------------------------------------------------------------------------------------------------------------------
American Leaders
Large Cap Value
Period from June
30, to December
31, 2000 (e).... 10.00 0.06 0.74 0.80 (0.06) (0.03) -- --
----------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
--------------------------------------------------------
Number of Net
Net Asset Shares Net Assets Operating Investment
Value at Outstanding Total End of Period Expenses to Income (Loss) Portfolio
Total End (000's Investment (000's Average to Average Turnover
Distributions of Period Omitted) Return(b) Omitted) Net Assets Net Assets Rate
------------- --------- ----------- ------------ ------------- --------------- ------------- ------------
Mid Cap Growth
Year ended
December 31,
2000............ $(3.08) $15.60 25,254 (35.86)% $393,988 0.85% (0.43)% 140.94%
1999............ (3.41) 29.22 15,496 118.31% 452,937 0.93% (0.68)% 106.06%
1998............ (1.47) 15.12 6,224 39.07% 94,085 1.10%(q) (0.64)% 137.01%
1997............ -- 11.93 3,374 16.66% 40,235 1.10%(q) (0.26)% 124.04%
Period from May
1, to December
31, 1996 (e).... (0.05) 10.22 1,613 2.69%(f) 16,492 1.10%(g)(q) 0.92%(g) 71.25%(f)
----------------------------------------------------------------------------------------------------------------------------
Mid Cap Blend
Year ended
December 31,
2000............ (0.55) 12.12 1,753 18.58% 21,259 0.85%(r) 0.44% 138.64%
Period from
August 31, to
December 31,
1999 (e)........ (0.43) 10.70 543 11.53%(f) 5,810 0.85%(g)(r) 0.82%(g) 55.68%(f)
----------------------------------------------------------------------------------------------------------------------------
Large Cap Value
Year ended
December 31,
2000............ (0.83) 14.38 14,225 12.97% 204,535 0.78% 2.04% 42.12%
1999............ (0.98) 13.49 11,552 3.28% 155,849 0.85% 1.88% 32.62%
1998............ (0.79) 14.02 8,799 9.26% 123,365 0.92% 2.08% 18.46%
1997............ (0.65) 13.57 5,399 28.56% 73,269 1.00%(s) 2.42% 19.21%
Period from May
1, to December
31, 1996 (e).... (0.29) 11.09 1,784 13.90%(f) 19,781 1.00%(g)(s) 2.74%(g) 19.95%(f)
----------------------------------------------------------------------------------------------------------------------------
Large Cap Value
CORE
Year ended
December 31,
2000............ (0.25) 10.42 1,743 5.12% 18,164 0.85%(t) 1.54% 59.15%
Period from
August 31, to
December 31,
1999 (e)........ (0.19) 10.16 627 3.58%(f) 6,371 0.85%(g)(t) 1.13%(g) 30.90%(f)
----------------------------------------------------------------------------------------------------------------------------
American Leaders
Large Cap Value
Period from June
30, to December
31, 2000 (e).... (0.09) 10.71 563 8.02%(f) 6,029 0.85%(g) 1.22%(g) 17.16%(f)
----------------------------------------------------------------------------------------------------------------------------
55
FINANCIAL HIGHLIGHTS
JOHN HANCOCK VARIABLE SERIES TRUST I
--------------------------------------------------------------------------------
Selected data for each share of beneficial interest outstanding throughout the
year end indicated:
Income from Investment Operations Less Distributions
--------------------------------------- -----------------------------------------------------
Net Realized
Net Asset and Distribution Distribution Distribution
Value at Net Unrealized Total From From Net From Net in Excess of Distribution
Beginning Investment Gain/(Loss) on Investment Investment Gains on Net Investment From Capital
of Period Income/(Loss) Investments(a) Operations Income Investments Income/Gains Paid in
--------- ------------- -------------- ---------- ------------ ------------ -------------- ------------
Large/Mid Cap
Value
Year ended
December 31,
2000............ $10.42 $ 0.09 $ 1.30 $ 1.39 $(0.10) $(0.08) $(0.06) --
Period from
August 31, to
December 31,
1999 (e)........ 10.00 0.03 0.45 0.48 (0.03) (0.02) (0.01) --
------------------------------------------------------------------------------------------------------------------------------------
Money Market
Year ended
December 31,
2000............ 10.00 0.60 -- 0.60 (0.60) -- -- $(0.01)
1999............ 10.00 0.45 -- 0.45 (0.45) -- -- --
1998............ 10.00 0.53 -- 0.53 (0.53) -- -- --
1997............ 10.00 0.53 -- 0.53 (0.53) -- -- --
1996............ 10.00 0.52 -- 0.52 (0.52) -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Mid Cap Value
Year ended
December 31,
2000............ 12.78 0.06 3.51 3.57 (0.06) (0.41) (1.23) --
1999............ 12.19 0.08 0.59 0.67 (0.08) -- -- --
1998............ 13.87 0.11 (1.68) (1.57) (0.11) -- -- --
1997............ 11.35 0.05 3.59 3.64 (0.05) (1.07) -- --
Period from May
1, to December
31, 1996 (e).... 10.00 0.04 1.57 1.61 (0.04) (0.22) -- --
------------------------------------------------------------------------------------------------------------------------------------
Small/Mid Cap
Growth
Year ended
December 31,
2000............ 14.03 (0.02) 1.27 1.25 -- (1.43) (0.15) --
1999............ 15.94 (0.07) 0.74 0.67 -- (2.41) -- (0.17)
1998............ 15.39 (0.02) 0.88 0.86 -- (0.31) -- --
1997............ 16.52 0.01 0.56 0.57 (0.01) (1.69) -- --
1996............ 13.18 0.02 3.99 4.01 (0.02) (0.65) -- --
------------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
-------------------------------------------
Number of Net
Net Asset Shares Net Assets Operating Investment
Value at Outstanding Total End of Period Expenses to Income (Loss)
Total Capital End (000's Investment (000's Average to Average
Distributions Contributions of Period Omitted) Return(b) Omitted) Net Assets Net Assets
------------- ------------- --------- ----------- ------------ ------------- --------------- -------------
Large/Mid Cap
Value
Year ended
December 31,
2000............ $(0.24) -- $11.57 1,360 13.41% $ 15,728 1.05%(u) 0.97%
Period from
August 31, to
December 31,
1999 (e)........ (0.06) -- 10.42 586 4.72%(f) 6,101 1.05%(g)(u) 0.94%(g)
------------------------------------------------------------------------------------------------------------------------------
Money Market
Year ended
December 31,
2000............ (0.61) $0.01 10.00 49,685 6.29%(v) 496,853 0.29% 6.05%
1999............ (0.45) -- 10.00 45,124 5.05% 451,235 0.31% 4.95%
1998............ (0.53) -- 10.00 39,519 5.40% 395,195 0.31% 5.29%
1997............ (0.53) -- 10.00 22,944 5.38% 229,443 0.33% 5.32%
1996............ (0.52) -- 10.00 21,324 5.32% 213,235 0.30% 5.20%
------------------------------------------------------------------------------------------------------------------------------
Mid Cap Value
Year ended
December 31,
2000............ (1.70) -- 14.65 8,819 28.38% 129,233 0.87% 0.42%
1999............ (0.08) -- 12.78 7,212 5.52% 92,150 0.92% 0.64%
1998............ (0.11) -- 12.19 7,781 (11.33)% 94,820 0.96% 0.93%
1997............ (1.12) -- 13.87 4,686 32.17% 64,973 1.05%(w) 0.53%
Period from May
1, to December
31, 1996 (e).... (0.26) -- 11.35 963 16.18%(f) 10,926 1.05%(g)(w) 0.69%(g)
------------------------------------------------------------------------------------------------------------------------------
Small/Mid Cap
Growth
Year ended
December 31,
2000............ (1.58) -- 13.70 13,866 9.25% 190,010 0.85% (0.20)%
1999............ (2.58) -- 14.03 12,963 5.15% 181,931 0.85% (0.27)%
1998............ (0.31) -- 15.94 12,129 5.61% 193,332 0.89% (0.11)%
1997............ (1.70) -- 15.39 13,884 3.44% 213,612 0.85% 0.09%
1996............ (0.67) -- 16.52 11,749 30.33% 194,108 0.84% 0.18%
------------------------------------------------------------------------------------------------------------------------------
Portfolio
Turnover
Rate
---------
Large/Mid Cap
Value
Year ended
December 31,
2000............ 86.97%
Period from
August 31, to
December 31,
1999 (e)........ 23.03%(f)
--------------------------------------
Money Market
Year ended
December 31,
2000............ n/a
1999............ n/a
1998............ n/a
1997............ n/a
1996............ n/a
--------------------------------------
Mid Cap Value
Year ended
December 31,
2000............ 235.80%
1999............ 137.06%
1998............ 173.33%
1997............ 93.78%
Period from May
1, to December
31, 1996 (e).... 62.99%(f)
--------------------------------------
Small/Mid Cap
Growth
Year ended
December 31,
2000............ 103.19%
1999............ 172.58%
1998............ 162.21%
1997............ 331.19%
1996............ 217.84%
--------------------------------------
56
FINANCIAL HIGHLIGHTS
JOHN HANCOCK VARIABLE SERIES TRUST I
--------------------------------------------------------------------------------
Selected data for each share of beneficial interest outstanding throughout the
year end indicated:
Income from Investment Operations Less Distributions
------------------------------------ -----------------------------------------------------
Net Realized
Net Asset and Distribution Distribution Distribution
Value at Net Unrealized Total From From Net From Net in Excess of Distribution
Beginning Investment Gain/(Loss) on Investment Investment Gains on Net Investment From Capital
of Period Income Investments(a) Operations Income Investments Income/Gains Paid in
--------- ---------- -------------- ---------- ------------ ------------ -------------- ------------
Bond Index
Year ended
December 31,
2000............ $ 9.32 $ 0.62 $ 0.43 $ 1.05 $(0.63) -- -- --
1999............ 10.19 0.63 (0.89) (0.26) (0.61) -- -- --
Period from May
1, to December
31, 1998 (e).... 10.00 0.42 0.29 0.71 (0.42) $(0.10) -- --
------------------------------------------------------------------------------------------------------------------------------
Large Cap
Aggressive Growth
Year ended
December 31,
2000............ 11.94 (0.03) (2.21) (2.24) -- (0.01) $(0.06) $(0.11)
Period from
August 31, to
December 31,
1999 (e)........ 10.00 (0.01) 2.03 2.02 -- (0.08) -- --
------------------------------------------------------------------------------------------------------------------------------
Small/Mid Cap
CORE
Year ended
December 31,
2000............ 9.82 0.05 0.39 0.44 (0.05) (0.32) (0.05) (0.02)
1999............ 9.02 0.02 1.77 1.79 (0.03) (0.96) -- --
Period from May
1, to December
31, 1998 (e).... 10.00 -- (0.98) (0.98) -- -- -- --
------------------------------------------------------------------------------------------------------------------------------
Small/Mid Cap
Value
Year ended
December 31,
2000............ 10.13 0.01 3.37 3.38 (0.01) (1.80) -- --
Period from
August 31, to
December 31,
1999 (e)........ 10.00 -- 0.49 0.49 -- (0.36) -- --
------------------------------------------------------------------------------------------------------------------------------
Real Estate
Equity
Year ended
December 31,
2000 (k)........ 11.47 0.76 2.73 3.49 (0.76) (0.06) (0.17) (0.30)
1999............ 12.46 0.78 (0.99) (0.21) (0.78) -- -- --
1998............ 15.91 0.77 (3.38) (2.61) (0.70) (0.14) -- --
1997............ 14.64 0.77 1.68 2.45 (0.71) (0.41) -- (0.06)
1996............ 11.70 0.76 2.97 3.73 (0.76) (0.03) -- --
------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
---------------------------------------------------------
Number of Net
Net Asset Shares Net Assets Operating Investment
Value at Outstanding Total End of Period Expenses to Income (Loss) Portfolio
Total End (000's Investment (000's Average to Average Turnover
Distributions of Period Omitted) Return(b) Omitted) Net Assets Net Assets Rate
------------- --------- ----------- ------------- ------------- --------------- -------------- ------------
Bond Index
Year ended
December 31,
2000............ $(0.63) $ 9.74 6,648 11.81% $ 64,768 0.25%(x) 6.80% 33.14%
1999............ (0.61) 9.32 4,125 (2.57)% 38,436 0.29%(x) 6.56% 17.06%
Period from May
1, to December
31, 1998 (e).... (0.52) 10.19 2,748 7.20%(f) 28,001 0.40%(g)(x) 6.17%(g) 21.09%(f)
------------------------------------------------------------------------------------------------------------------------------
Large Cap
Aggressive Growth
Year ended
December 31,
2000............ (0.18) 9.52 2,758 (18.77)% 26,244 1.00%(y) (0.37)% 75.97%
Period from
August 31, to
December 31,
1999 (e)........ (0.08) 11.94 1,263 20.18%(f) 15,074 1.08%(g)(y) (0.39)%(g) 18.97%(f)
------------------------------------------------------------------------------------------------------------------------------
Small/Mid Cap
CORE
Year ended
December 31,
2000............ (0.44) 9.82 2,204 4.63% 21,636 0.90%(z) 0.56% 94.78%
1999............ (0.99) 9.82 840 20.54% 8,248 0.94%(z) 0.30% 109.12%
Period from May
1, to December
31, 1998 (e).... -- 9.02 556 (9.81)%(f) 5,015 1.05%(g)(z) (0.01)%(g) 60.51%(f)
------------------------------------------------------------------------------------------------------------------------------
Small/Mid Cap
Value
Year ended
December 31,
2000............ (1.81) 11.70 2,515 34.19% 29,436 1.05%(1) 0.13% 220.80%
Period from
August 31, to
December 31,
1999 (e)........ (0.36) 10.13 550 5.08%(f) 5,570 1.05%(g)(1) (0.12)%(g) 51.97%(f)
------------------------------------------------------------------------------------------------------------------------------
Real Estate
Equity
Year ended
December 31,
2000 (k)........ (1.29) 13.67 11,617 31.29% 158,811 0.76% 5.99% 58.81%
1999............ (0.78) 11.47 11,000 (1.69)% 126,214 0.70% 6.38% 12.95%
1998............ (0.84) 12.46 12,263 (16.71)% 152,789 0.69% 5.48% 22.69%
1997............ (1.18) 15.91 12,830 17.22% 204,131 0.69% 5.12% 20.04%
1996............ (0.79) 14.64 10,325 33.07% 151,105 0.69% 6.14% 18.37%
------------------------------------------------------------------------------------------------------------------------------
57
FINANCIAL HIGHLIGHTS
JOHN HANCOCK VARIABLE SERIES TRUST I
--------------------------------------------------------------------------------
Selected data for each share of beneficial interest outstanding throughout the
year end indicated:
Income from Investment Operations Less Distributions
------------------------------------ -----------------------------------------------------
Net Realized
Net Asset and Distribution Distribution Distribution
Value at Net Unrealized Total From From Net From Net in Excess of Distribution
Beginning Investment Gain/(Loss) on Investment Investment Gains on Net Investment From Capital
of Period Income Investments(a) Operations Income Investments Income/Gains Paid in
--------- ---------- -------------- ---------- ------------ ------------ -------------- ------------
Growth & Income
Year ended
December 31,
2000 (c)........ $20.01 $0.17 $(2.77) $(2.60) $(0.17) $(2.69) $(0.14) $(0.23)
1999............ 19.49 0.20 2.88 3.08 (0.20) (2.36) -- --
1998............ 16.61 0.23 4.75 4.98 (0.23) (1.87) -- --
1997............ 14.65 0.27 4.07 4.34 (0.27) (2.11) -- --
1996............ 13.94 0.34 2.43 2.77 (0.34) (1.72) -- --
-------------------------------------------------------------------------------------------------------------------------
Managed
Year ended
December 31,
2000 (o)........ 15.45 0.44 (0.45) (0.01) (0.44) (1.18) -- --
1999............ 15.64 0.44 0.94 1.38 (0.43) (1.14) -- --
1998............ 14.35 0.46 2.43 2.89 (0.46) (1.09) -- (0.05)
1997............ 13.35 0.59 1.86 2.45 (0.59) (0.78) -- (0.08)
1996............ 13.73 0.61 0.81 1.42 (0.61) (1.19) -- --
-------------------------------------------------------------------------------------------------------------------------
Short-Term Bond
Year ended
December 31,
2000............ 9.72 0.61 0.14 0.75 (0.61) -- -- --
1999............ 10.05 0.61 (0.33) 0.28 (0.61) -- -- --
1998............ 10.08 0.61 (0.03) 0.58 (0.61) -- -- --
1997............ 10.05 0.59 0.03 0.62 (0.59) -- -- --
1996............ 10.23 0.54 (0.18) 0.36 (0.54) -- -- --
-------------------------------------------------------------------------------------------------------------------------
Small Cap Equity
Year ended
December 31,
2000 (o)........ 10.92 0.14 (1.13) (0.99) (0.15) (0.14) (0.20) (0.30)
1999............ 11.59 0.09 (0.50) (0.41) (0.07) (0.01) (0.18) --
1998............ 12.40 0.07 (0.81) (0.74) (0.07) -- -- --
1997............ 10.73 0.08 2.66 2.74 (0.08) (0.99) -- --
Period from May
1, to December
31, 1996 (e).... 10.00 0.07 0.96 1.03 (0.07) (0.23) -- --
-------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------
Number of Net
Net Asset Shares Net Assets Operating Investment
Value at Outstanding Total End of Period Expenses Income to Portfolio
Total End (000's Investment (000's to Average Average Turnover
Distributions of Period Omitted) Return(b) Omitted) Net Assets Net Assets Rate
------------- --------- ----------- ------------ ------------- -------------- ----------- ------------
Growth & Income
Year ended
December 31,
2000 (c)........ $(3.23) $14.18 234,464 (13.10)% $3,324,988 0.40% 0.84% 112.94%
1999............ (2.56) 20.01 210,823 16.23% 4,218,841 0.28% 0.98% 70.16%
1998............ (2.10) 19.49 188,319 30.25% 3,670,785 0.27% 1.24% 48.45%
1997............ (2.38) 16.61 167,773 29.79% 2,785,964 0.28% 1.61% 74.56%
1996............ (2.06) 14.65 139,748 20.10% 2,047,927 0.27% 2.24% 81.02%
-------------------------------------------------------------------------------------------------------------------------
Managed
Year ended
December 31,
2000 (o)........ (1.62) 13.82 216,688 0.03% 2,995,794 0.46% 2.86% 199.27%
1999............ (1.57) 15.45 222,091 9.10% 3,430,919 0.36% 2.75% 203.86%
1998............ (1.60) 15.64 211,171 20.42% 3,301,910 0.36% 2.99% 160.57%
1997............ (1.45) 14.35 195,139 18.72% 2,800,127 0.37% 4.18% 200.41%
1996............ (1.80) 13.35 178,745 10.72% 2,386,660 0.36% 4.41% 113.61%
-------------------------------------------------------------------------------------------------------------------------
Short-Term Bond
Year ended
December 31,
2000............ (0.61) 9.86 8,122 7.98% 80,109 0.36% 6.27% 45.27%
1999............ (0.61) 9.72 7,081 2.96% 68,844 0.43% 6.25% 100.04%
1998............ (0.61) 10.05 7,682 5.82% 77,194 0.53% 6.17% 184.50%
1997............ (0.59) 10.08 5,070 6.41% 51,120 0.57% 5.67% 108.29%
1996............ (0.54) 10.05 5,840 3.61% 58,676 0.75%(2) 5.66% 20.68%
-------------------------------------------------------------------------------------------------------------------------
Small Cap Equity
Year ended
December 31,
2000 (o)........ (0.79) 9.14 7,661 (8.89)% 70,031 0.92%(3) 1.25% 189.57%
1999............ (0.26) 10.92 6,311 (3.43)% 68,900 0.95%(3) 0.78% 117.33%
1998............ (0.07) 11.59 5,531 5.96% 64,095 1.05%(3) 0.63% 100.83%
1997............ (1.07) 12.40 3,488 25.57% 43,261 1.05%(3) 0.68% 126.10%
Period from May
1, to December
31, 1996 (e).... (0.30) 10.73 982 10.33%(f) 10,541 1.05%(g)(3) 1.15%(g) 66.31%(f)
-------------------------------------------------------------------------------------------------------------------------
58
FINANCIAL HIGHLIGHTS
JOHN HANCOCK VARIABLE SERIES TRUST I
--------------------------------------------------------------------------------
Selected data for each share of beneficial interest outstanding throughout the
year end indicated:
Income from Investment Operations Less Distributions
------------------------------------ -----------------------------------------------------
Net Realized
Net Asset and Distribution Distribution Distribution
Value at Net Unrealized Total From From Net From Net in Excess of Distribution
Beginning Investment Gain/(Loss) on Investment Investment Gains on Net Investment From Capital
of Period Income Investments(a) Operations Income Investments Income/Gains Paid in
--------- ---------- -------------- ---------- ------------ ------------ -------------- ------------
International
Opportunities
Year ended
December 31,
2000 (4)........ $15.17 $0.07 $(2.57) $(2.50) $(0.06) $(0.62) $(0.05) $(0.09)
1999............ 12.21 0.10 3.95 4.05 (0.11) (0.94) (0.04) --
1998............ 10.63 0.11 1.57 1.68 (0.10) -- -- --
1997............ 10.60 0.10 0.11 0.21 (0.10) (0.08) -- --
Period from May
1, to December
31, 1996 (e).... 10.00 0.07 0.60 0.67 (0.07) -- -- --
------------------------------------------------------------------------------------------------------------------------------
Equity Index
Year ended
December 31,
2000............ 20.46 0.22 (2.09) (1.87) (0.22) (0.72) -- (0.01)
1999............ 17.70 0.27 3.41 3.68 (0.26) (0.66) -- --
1998............ 14.21 0.25 3.76 4.01 (0.24) (0.28) -- --
1997............ 11.10 0.24 3.41 3.65 (0.24) (0.25) -- (0.05)
Period from May
1, to December
31, 1996 (e).... 10.00 0.15 1.26 1.41 (0.15) (0.10) -- (0.06)
------------------------------------------------------------------------------------------------------------------------------
High Yield Bond
Year ended
December 31,
2000............ 8.99 0.73 (1.65) (0.92) (0.74) -- -- --
1999............ 9.23 0.72 (0.26) 0.46 (0.70) -- -- --
Period from May
1, to December
31, 1998 (e).... 10.00 0.46 (0.76) (0.30) (0.46) (0.01) -- --
------------------------------------------------------------------------------------------------------------------------------
Global Bond
Year ended
December 31,
2000 (o)........ 9.82 0.48 0.67 1.15 (0.63) -- -- --
1999............ 10.60 0.48 (0.70) (0.22) (0.56) -- -- --
1998............ 10.24 0.54 0.38 0.92 (0.29) (0.09) -- (0.18)
1997............ 10.16 0.59 0.30 0.89 (0.61) (0.15) -- (0.05)
Period from May
1, to December
31, 1996 (e).... 10.00 0.38 0.28 0.66 (0.38) (0.12) -- --
Ratios/Supplemental Data
-------------------------------------------------------
Number of Net
Net Asset Shares Net Assets Operating Investment
Value at Outstanding Total End of Period Expenses to Income to Portfolio
Total End (000's Investment (000's Average Average Turnover
Distributions of Period Omitted) Return(b) Omitted) Net Assets Net Assets Rate
------------- --------- ----------- --------------- ------------- ---------------- ----------- ------------
International
Opportunities
Year ended
December 31,
2000 (4)........ $(0.82) $11.85 10,128 (16.36)%(6) $120,034 0.93%(5) 0.47% 37.92%
1999............ (1.09) 15.17 5,259 34.01% 79,794 1.02%(5) 0.77% 34.02%
1998............ (0.10) 12.21 5,260 15.92% 64,250 1.16%(5) 0.89% 18.67%
1997............ (0.18) 10.63 2,882 1.95% 30,631 1.22%(5) 0.65% 21.09%
Period from May
1, to December
31, 1996 (e).... (0.07) 10.60 1,689 6.72%(f) 17,898 1.25%(g)(5) 0.87%(g) 5.46%(f)
------------------------------------------------------------------------------------------------------------------------------
Equity Index
Year ended
December 31,
2000............ (0.95) 17.64 29,793 (9.15)% 525,659 0.19% 1.12% 34.11%
1999............ (0.92) 20.46 22,060 21.08% 451,296 0.00%(7) 1.42% 55.24%
1998............ (0.52) 17.70 13,139 28.45% 232,578 0.00%(7) 1.59% 43.31%
1997............ (0.54) 14.21 7,134 32.79%(8) 101,390 0.00%(7) 1.97% 64.56%
Period from May
1, to December
31, 1996 (e).... (0.31) 11.10 1,320 14.23%(f)(9) 14,650 0.00%(g)(7) 2.47%(g) 15.72%(f)
------------------------------------------------------------------------------------------------------------------------------
High Yield Bond
Year ended
December 31,
2000............ (0.74) 7.33 3,543 (10.81)% 25,978 0.75%(10) 8.88% 21.94%
1999............ (0.70) 8.99 2,217 5.13% 19,921 0.80%(10) 7.94% 38.62%
Period from May
1, to December
31, 1998 (e).... (0.47) 9.23 1,602 (2.98)%(f) 14,789 0.90%(g)(10) 7.43%(g) 17.67%(f)
------------------------------------------------------------------------------------------------------------------------------
Global Bond
Year ended
December 31,
2000 (o)........ (0.63) 10.34 6,623 12.00% 68,473 0.81%(11) 4.71% 209.39%
1999............ (0.56) 9.82 7,230 (2.16)% 70,991 0.83%(11) 4.70% 332.06%
1998............ (0.56) 10.60 6,301 9.15% 66,791 0.95%(11) 5.27% 186.70%
1997............ (0.81) 10.24 2,797 9.05% 28,647 1.00%(11) 5.80% 69.38%
Period from May
1, to December
31, 1996 (e).... (0.50) 10.16 1,271 6.71%(f) 12,907 1.00%(g)(11) 6.05%(g) 171.39%(f)
59
(a) The amount shown at this caption for each share outstanding throughout the
year may not accord with the change in the aggregate gains and losses in
the portfolio securities for the year because of the timing of the
purchases and withdrawals of the shares in relation to the fluctuation
market values of the portfolio.
(b) The performance of the Funds shown on this page does not reflect expenses
and charges of the applicable separate accounts and variable products, all
of which vary to a considerable extent and are described in your product's
prospectus.
(c) The Fund entered into a new Sub-Advisory agreement with Putnam Investment
Management, Inc. during the period shown.
(d) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.00%, and 1.09% for the years
ended December 31, 2000 and 1999, respectively.
(e) Commencement of investment operations.
(f) Not annualized.
(g) Annualized.
(h) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been .89%, and .96% for the years
ended December 31, 2000 and 1999, respectively.
(i) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been .44% for the year ended
December 31, 2000.
(j) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 2.49%, 3.44%, and 3.69% for
the years ended December 31, 2000, 1999 and 1998, respectively.
(k) The Fund entered into a new Sub-Advisory agreement with Morgan Stanley
Investment Management, Inc. during the period shown.
(l) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been .37%, .38% and .63% for the
years ended December 31, 2000, 1999 and 1998, respectively.
(m) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.76% and 1.71% for the years
ended December 31, 2000 and 1999, respectively.
(n) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.05%, 1.12%, and 1.55%, for
the years ended December 31, 1998, 1997 and 1996, respectively.
(o) The Fund entered into a new Sub-Advisory agreement with Capital Guardian
Trust Company during the period shown.
(p) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.27%, 1.31%, 1.82, 1.56% and
1.44% for the years ended December 31, 2000, 1999, 1998, 1997 and 1996,
respectively.
(q) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.13%, 1.42%, and 2.34% for
the years ended December 31, 1998, 1997 and 1996, respectively.
(r) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.04% and 1.20% for the years
ended December 31, 2000 and 1999, respectively.
(s) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.06% and 2.74% for the years
ended December 31, 1997 and 1996 respectively.
(t) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.09% and 1.17% for the years
ended December 31, 2000 and 1999, respectively.
(u) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.36%, and 1.42% for the years
ended December 31, 2000 and 1999, respectively.
(v) The Total Investment Return includes the effect of the capital
contribution of $0.01 per share. The Total Investment Return without the
capital contribution would have been 6.18%.
(w) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.14% and 2.15% for the years
ended December 31, 1997 and 1996, respectively.
(x) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been .27%, .35%, and .71%, for the
years ended December 31, 2000, 1999 and 1998, respectively.
(y) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.05% and 1.17% for the years
ended December 31, 2000 and 1999, respectively.
(z) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.23%, 2.24%, and 4.55% for
the years ended December 31, 2000, 1999 and 1998, respectively.
60
(1) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.29% and 1.61% for the years
ended December 31, 2000 and 1999, respectively.
(2) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been .79% for the year ended
December 31, 1996.
(3) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been .95%, .96%, 1.08%, 1.30% and
2.06% for the years ended December 31, 2000, 1999, 1998, 1997 and 1996,
respectively.
(4) The Fund entered into a new Sub-Advisory agreement with T. Rowe Price
International, Inc. during the period shown.
(5) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.09%, 1.15%, 1.46%, 1.57% and
2.76% for the years ended December 31, 2000, 1999, 1998, 1997 and 1996,
respectively.
(6) The Total Investment Return rate excludes merger activity.
(7) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been .22%, .34%, .65%, and 1.61%
for the years ended December 31, 1999, 1998, 1997 and 1996, respectively.
(8) The Total Investment Return includes the effect of the capital
contribution of $.04 per share. The Total Investment Return without the
capital contribution would have been 32.47%.
(9) The Total Investment Return includes the effect of the capital
contribution of $.06 per share. The Total Investment Return without the
capital contribution would have been 13.59%.
(10) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been .87%, 1.04% and 2.03% for the
years ended December 31, 2000, 1999 and 1998, respectively.
(11) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been .91%, .84%, 1.02%, 1.32%, and
1.57% for the years ended December 31, 2000, 1999, 1998, 1997 and 1996,
respectively.
(12) The Total Investment Return includes the effect of the capital
contribution of $.32 per share. The Total Investment Return without the
capital contribution would have been 79.02%.
61
SCHEDULE OF INVESTMENTS
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
LARGE CAP GROWTH FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Auto & Truck Parts - 0.4%
General Motors Corp. - Cl. H ................ 180,600 $ 4,154
Business Services - 0.5%
Automatic Data Processing, Inc. ............. 96,000 6,078
Commercial Sevices - 2.0%
Convergys Corp. * ........................... 169,300 7,671
Interpublic Group Cos., Inc. ................ 106,600 4,537
Lamar Advertising Co. * ..................... 117,700 4,543
Omnicom Group, Inc. ......................... 66,900 5,544
----------
22,295
Computer Equipment - 9.3%
Brocade Communications Systems,
Inc. * .................................... 67,600 6,207
Compaq Computer Corp. ....................... 150,500 2,265
Comverse Technology, Inc. * ................. 89,400 9,711
Hewlett-Packard Co. ......................... 216,200 6,824
Intel Corp. ................................. 1,400,000 42,087
International Business Machines Corp ........ 276,000 23,460
Network Appliance, Inc. * ................... 93,200 5,982
VERITAS Software Corp. * .................... 112,900 9,879
----------
106,415
Computer Software & Services - 18.6%
Adobe Systems, Inc. ......................... 126,800 7,378
America Online, Inc. * ...................... 677,100 23,563
Cadence Design Systems, Inc. * .............. 130,900 3,600
DST Systems, Inc. * ......................... 114,700 7,685
EMC Corp. * ................................. 570,000 37,905
First Data Corp. ............................ 224,700 11,839
Fiserv, Inc. ................................ 85,700 4,065
Intuit, Inc. * .............................. 109,900 4,334
Juniper Networks, Inc. * .................... 74,400 9,379
Microsoft Corp. ............................. 773,000 33,529
Oracle Corp. * .............................. 1,000,000 29,063
Siebel Systems, Inc. * ...................... 148,900 10,069
Sun Microsystems, Inc. * .................... 799,700 22,292
SunGard Data Systems, Inc. .................. 105,000 4,948
Yahoo!, Inc. * .............................. 121,500 3,666
----------
213,315
Consumer Miscellaneous - 0.6%
Black & Decker Corp. ........................ 186,700 7,328
Cosmetic & Personal Care - 0.5%
Colgate-Palmolive Co. ....................... 80,000 5,164
Diversified Operations - 10.4%
Corning, Inc. ............................... 251,534 13,284
El Paso Energy Corp. ........................ 139,200 9,970
General Electric Co. ........................ 1,900,000 91,082
Tyco International, Ltd. .................... 90,000 4,995
----------
119,331
Electric Power - 1.1%
AES Corp. * ................................. 120,000 6,645
Calpine Corp. * ............................. 137,900 6,214
----------
12,859
Electronic Products & Services - 14.3%
Altera Corp. * .............................. 214,700 5,649
Analog Devices, Inc. * ...................... 190,000 9,726
Applied Materials, Inc. * ................... 169,400 6,469
Atmel Corp. * ............................... 400,000 4,650
Cisco Systems, Inc. * ....................... 1,689,200 64,612
Jabil Circuit, Inc. * ....................... 115,600 2,933
Linear Technology Corp. ..................... 170,000 7,862
Maxim Integrated Products, Inc. * ........... 152,800 7,306
Motorola, Inc. .............................. 156,000 3,159
Novellus Systems, Inc. * .................... 182,200 6,548
PMC-Sierra, Inc. * .......................... 33,000 2,595
Sanmina Corp. * ............................. 91,200 6,988
SCI Systems, Inc. * ......................... 125,700 3,315
Texas Instruments, Inc. ..................... 378,600 17,936
Vishay Intertechnology, Inc. * .............. 160,400 2,426
Vitesse Semiconductor Corp. * ............... 82,400 4,558
Xilinx, Inc. * .............................. 150,000 6,919
----------
163,651
Energy - Alternative Source - 0.8%
Dynegy, Inc. - Cl.A ......................... 169,500 9,503
Financial Services - 1.4%
Citigroup, Inc. ............................. 313,333 16,000
Health Care Products - 21.5%
Allergan, Inc. .............................. 116,900 11,317
ALZA Corp. * ................................ 176,300 7,493
American Home Products Corp. ................ 219,000 13,917
Aviron * .................................... 42,800 2,860
Baxter International, Inc. .................. 50,000 4,416
Bristol-Myers Squibb Co. .................... 167,000 12,348
Cardinal Health, Inc. ....................... 27,900 2,780
Cephalon, Inc. * ............................ 53,100 3,362
CV Therapeutics, Inc. * ..................... 48,200 3,410
Eli Lilly & Co. ............................. 110,500 10,283
ENZON , Inc. ................................ 56,700 3,519
Forest Laboratories, Inc. * ................. 43,400 5,767
Genetech, Inc. * ............................ 52,200 4,254
Invitrogen Corp. * .......................... 47,700 4,120
King Pharmaceuticals, Inc. * ................ 65,400 3,380
Laboratory Corporation of America
Holdings .................................. 34,300 6,037
Merck & Co., Inc. ........................... 311,100 29,127
Pfizer, Inc. ................................ 1,616,900 74,377
Pharmacia Corp. ............................. 229,500 13,999
Schering-Plough Corp. ....................... 339,600 19,272
Waters Corp. * .............................. 131,700 10,997
----------
247,035
62
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
LARGE CAP GROWTH FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Health Care Services - 0.7%
Universal Health Services, Inc. - Cl. B * ............... 76,000 $ 8,493
Insurance - 2.8%
Hartford Financial Services Group, Inc. ................. 182,300 12,875
Lincoln National Corp. .................................. 137,000 6,482
PartnerRe, Ltd. ......................................... 86,200 5,258
St. Paul Cos., Inc. ..................................... 135,000 7,332
---------
31,947
Machinery - 0.4%
Ingersoll-Rand Co. ...................................... 94,700 3,966
Media - Publishing - 0.3%
AT&T Corp. - Liberty Media Group -
Cl. A * ............................................... 216,500 2,936
Media - TV/Radio - 2.8%
Clear Channel Communications, Inc. * .................... 62,200 3,013
Infinity Broadcasting Corp. - Cl. A * ................... 148,200 4,140
Time Warner, Inc. ....................................... 182,400 9,529
Univision Communications, Inc. -
Cl. A * ............................................... 117,600 4,814
Viacom, Inc. - Cl. B * .................................. 173,600 8,116
Westwood One, Inc. * .................................... 124,400 2,402
---------
32,014
Oil & Natural Gas Exploration & Production - 0.3%
Noble Drilling Corp. * .................................. 80,000 3,475
Retail - Department Stores - 6.0%
Family Dollar Stores, Inc. .............................. 176,400 3,782
Home Depot, Inc. ........................................ 442,700 20,226
Kohl's Corp. ............................................ 237,200 14,469
Lowe's Cos., Inc. ....................................... 92,100 4,098
RadioShack Corp. ........................................ 178,800 7,655
Tiffany & Co. ........................................... 135,700 4,291
Wal-Mart Stores, Inc. ................................... 272,500 14,477
---------
68,998
Retail - Drug Stores - 1.6%
CVS Corp. ............................................... 75,000 4,495
TJX Cos., Inc. .......................................... 134,300 3,727
Walgreen Co. ............................................ 250,000 10,453
---------
18,675
Telecommunication Equipment - 1.8%
ADC Telecommunications, Inc. * .......................... 277,600 5,032
CIENA Corp. * ........................................... 20,000 1,625
JDS Uniphase Corp. * .................................... 139,400 5,811
Nokia Oyj - ADR ......................................... 67,100 2,919
Nortel Networks Corp. ................................... 78,200 2,507
Scientific-Atlanta, Inc. ................................ 96,500 3,142
---------
21,036
Telecommunication Services - 1.0%
Qwest Communications International,
Inc. * ................................................ 165,000 6,765
Sprint PCS (PCS Group) * ................................ 250,000 5,109
---------
11,874
U.S. Government Agencies - 0.5%
Federal National Mortgage Assoc. ........................ 65,000 5,639
---------
TOTAL COMMON STOCK- .............................. 99.6% 1,142,181
Par
Value
(000's)
SHORT-TERM INVESTMENTS - 0.9%
Investment in joint trading account
(Note B)
6.695% due 01/02/01 ..................................... $ 10,374 10,374
-------- ---------
TOTAL INVESTMENTS- 100.5% 1,152,555
Payables, less cash and receivables- (0.5)% (5,768)
-------- ---------
NET ASSETS- 100.0% 1,146,787
======== =========
* Non-income producing security.
ADR-American Depository Receipt
See notes to financial statements.
63
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
FUNDAMENTAL GROWTH FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Bank - 1.7%
M & T Bank Corp. ......................... 6,100 $ 415
Zions Bancorp ............................ 5,900 368
-------
783
Brokerage & Investment Management - 1.8%
Investment Technology Group, Inc. ........ 8,500 355
Legg Mason, Inc. ......................... 8,400 458
-------
813
Business Services - 0.3%
DiamondCluster, Inc. * ................... 4,600 140
Commercial Sevices - 4.9%
Cintas Corp. ............................. 11,100 590
Convergys Corp. * ........................ 14,300 648
Ecolab, Inc. ............................. 8,300 359
Lamar Advertising Co. * .................. 4,900 189
Macrovision Corp. * ...................... 2,700 200
The Dun & Bradstreet Corp. * ............. 11,300 290
-------
2,276
Computer Equipment - 7.4%
Brocade Communications Systems, Inc. * ... 13,600 1,249
Comverse Technology, Inc. * .............. 3,500 380
Palm, Inc. ............................... 40,500 1,147
Redback Networks, Inc. * ................. 11,600 475
SanDisk Corp. * .......................... 6,300 175
-------
3,426
Computer Software & Services - 13.6%
Ariba, Inc. * ............................ 3,600 193
Electronic Arts, Inc. * .................. 2,000 85
Fiserv, Inc. ............................. 14,300 678
Internet Security System, Inc. ........... 4,900 384
Intuit, Inc. * ........................... 7,000 276
Mercury Interactive Corp. * .............. 5,600 506
Micromuse, Inc. * ........................ 7,800 471
Openwave Systems, Inc. * ................. 5,900 283
Peregrine Systems, Inc. * ................ 34,300 678
Portal Software, Inc. * .................. 6,500 51
Rational Software Corp. * ................ 24,200 942
Research in Motion, Ltd. * ............... 6,300 504
Retek, Inc. * ............................ 4,300 105
Tibco Software, Inc. * ................... 10,100 484
Vignette Corp. * ......................... 20,000 360
webMethods, Inc. * ....................... 2,800 249
-------
6,249
Cosmetic & Personal Care - 0.4%
Estee Lauder Cos., Inc. - Cl. A .......... 3,900 171
Diversified Operations - 0.7%
Danaher Corp. ............................ 4,700 321
Electric Power - 2.2%
Calpine Corp. * .......................... 11,300 509
CMS Energy Corp. ......................... 9,400 298
Southern Energy, Inc. * .................. 6,600 187
-------
994
Electronic Products & Services - 8.6%
Applied Micro Circuits Corp. * ........... 9,800 735
Atmel Corp. * ............................ 35,500 413
Emulex Corp. * ........................... 7,800 624
GlobeSpan, Inc. * ........................ 6,750 186
Maxim Integrated Products, Inc. * ........ 3,500 167
PerkinElmer, Inc. ........................ 7,900 830
QLogic Corp. * ........................... 1,700 131
Sawtek, Inc. * ........................... 7,500 346
Vitesse Semiconductor Corp. * ............ 9,550 528
-------
3,960
Energy - Alternative Source - 0.8%
Dynegy, Inc. - Cl.A ...................... 6,700 376
Financial Services - 1.2%
Providian Financial Corp. * .............. 9,800 563
Food, Beverage & Tobacco - 1.4%
Starbucks Corp. * ........................ 14,500 642
Health Care Products - 21.6%
Abgenix, Inc. * .......................... 3,850 227
Allergan, Inc. ........................... 13,600 1,317
Andrx Corp - Andrx Group * ............... 3,200 185
Applera Corporation - Applied Biosystems
Group .................................. 11,300 1,063
Diversa Corp. ............................ 3,800 68
Forest Laboratories, Inc. * .............. 4,000 532
Gilead Sciences, Inc. * .................. 4,200 348
Human Genome Sciences, Inc. * ............ 2,200 153
IDEXX Laboratories, Inc. * ............... 7,900 174
Immunex Corp. * .......................... 19,900 808
Inhale Therapeutic Systems, Inc. * ....... 8,400 424
IVAX Corp. ............................... 15,800 605
Laboratory Corporation of America Holdings 1,600 282
Medarex, Inc. * .......................... 3,800 155
MedImmune, Inc. * ........................ 19,800 944
Millennium Pharmaceuticals, Inc. * ....... 11,600 718
Protein Design Labs, Inc. * .............. 3,700 321
Sepracor, Inc. * ......................... 8,600 689
UnitedHealth Group, Inc. ................. 5,400 331
Waters Corp. * ........................... 7,300 610
-------
9,954
Health Care Services - 2.3%
Idec Pharmaceuticals Corp. ............... 3,200 607
Quest Diagnostics, Inc. * ................ 3,200 454
-------
1,061
Insurance - 0.7%
Ace, Ltd. * .............................. 2,900 123
64
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
FUNDAMENTAL GROWTH FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Insurance - Continued
XL Capital, Ltd. - Cl. A ..................... 2,100 $ 183
--------
306
Leisure & Recreation - 0.8%
Four Seasons Hotels, Inc. .................... 3,300 210
International Game Technology ................ 3,700 177
--------
387
Media - Publishing - 0.2%
Radio One, Inc. - Cl. D * .................... 7,600 84
Media - TV / Radio - 1.7%
Cox Radio, Inc. - Cl. A * .................... 9,600 217
Radio One, Inc. * ............................ 4,900 52
Spanish Broadcasting Systems, Inc. * ......... 8,500 43
Univision Communications, Inc. - Cl. A * ..... 11,200 458
--------
770
Oil - 1.5%
BJ Services Co. * ............................ 6,100 420
Cooper Cameron Corp. * ....................... 4,400 291
--------
711
Oil & Natural Gas Exploration & Production - 4.8%
Devon Energy Corp. * ......................... 7,600 463
Global Marine, Inc. * ........................ 21,000 596
Murphy Oil Corp. ............................. 6,300 381
Transocean Sedco Forex, Inc. ................. 17,100 786
--------
2,226
Oil - Equipment & Service - 2.1%
Nabors Industries, Inc. * .................... 9,800 580
Smith International, Inc. .................... 5,500 410
--------
990
Personal & Commercial Lending - 1.1%
Capital One Financial Corp. .................. 7,800 513
Real Estate Investment Trust - 0.3%
Boston Properties, Inc. ...................... 3,500 152
Retail - Department Stores - 3.4%
BJ's Wholesale Club, Inc. .................... 9,900 380
Family Dollar Stores, Inc. ................... 24,700 529
RadioShack Corp. ............................. 6,700 287
Tiffany & Co. ................................ 12,367 391
--------
1,587
Retail - Food - 0.8%
Darden Restaurants, Inc. ..................... 15,900 364
Telecommunication Equipment - 4.8%
Avanex Corp. * ............................... 2,800 167
Crown Castle International Corp. ............. 13,600 368
Finisar Corp. * .............................. 21,900 635
Polycom, Inc. * .............................. 6,700 216
Sonus Networks, Inc. * ....................... 3,400 86
Symbol Technologies, Inc. .................... 21,200 763
--------
2,235
Telecommunication Services - 1.0%
Allegiance Telecom, Inc. * ................... 6,200 138
McLeodUSA, Inc. - Cl. A * .................... 22,000 311
--------
449
Telephone - 0.9%
Telephone and Data Systems, Inc. ............. 4,700 424
Transportation Services - 1.4%
Harley-Davidson, Inc. ........................ 15,800 628
--------
TOTAL COMMON STOCK- ................... 94.4% 43,555
Par
Value
(000's)
SHORT-TERM INVESTMENTS - 4.4%
Investment in joint trading account
(Note B) 6.695% due 01/02/01 ................. $ 2,023 2,023
------- --------
TOTAL INVESTMENTS- 98.8% 45,578
Cash and Receivables, less payables- 1.2% 536
------- --------
NET ASSETS- 100.0% 46,114
======= ========
* Non-income producing security.
See notes to financial statements.
65
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
AGGRESSIVE BALANCED FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Aerospace & Defense - 1.3%
General Dynamics Corp. .................... 1,100 $ 86
Honeywell International, Inc. ............. 900 43
United Technologies Corp. ................. 1,900 149
--------
278
Automobile - 0.5%
Ford Motor Co. ............................ 4,700 110
Bank - 4.4%
Bank of America Corp. ..................... 3,600 165
Bank of New York Co., Inc. ................ 3,900 215
Comerica, Inc. ............................ 900 53
Firstar Corp. ............................. 3,400 79
FleetBoston Financial Corp. ............... 7,200 271
J.P. Morgan & Co., Inc. ................... 900 149
--------
932
Business Services - 0.8%
Automatic Data Processing, Inc. ........... 2,600 165
Chemical - 1.1%
Air Products & Chemicals, Inc. ............ 1,900 78
Dow Chemical Co. .......................... 2,700 99
Praxair, Inc. ............................. 1,900 84
--------
261
Commercial Sevices - 1.3%
Convergys Corp. ........................... 1,700 77
Interpublic Group Cos., Inc. .............. 2,400 102
Omnicom Group, Inc. ....................... 1,100 91
--------
270
Computer Equipment - 3.2%
Comverse Technology, Inc. ................. 400 43
Hewlett-Packard Co. ....................... 2,200 69
Intel Corp. ............................... 9,300 280
International Business Machines Corp. ..... 2,100 178
Network Appliance, Inc. ................... 700 45
VERITAS Software Corp. .................... 600 53
--------
668
Computer Software & Services - 6.1%
Adobe Systems, Inc. ....................... 400 23
America Online, Inc. ...................... 4,000 139
DST Systems, Inc. ......................... 700 47
EMC Corp. ................................. 3,200 213
First Data Corp. .......................... 4,600 243
Microsoft Corp. ........................... 6,000 260
Oracle Corp. .............................. 6,200 180
Siebel Systems, Inc. ...................... 700 47
Sun Microsystems, Inc. .................... 4,200 117
--------
1,269
Consumer Miscellaneous - 1.1%
Avery Dennison Corp. ...................... 1,600 88
Black & Decker Corp. ...................... 2,200 86
Parker-Hannifin Corp. ..................... 1,300 57
--------
231
Cosmetic & Personal Care - 0.5%
Colgate-Palmolive Co. ..................... 1,000 65
Procter & Gamble Co. ...................... 500 39
--------
104
Diversified Operations - 6.4%
Corning, Inc. ............................. 1,400 74
El Paso Energy Corp. ...................... 2,400 172
General Electric Co. ...................... 16,100 772
Minnesota Mining & Manufacturing Co. ...... 800 96
Tyco International, Ltd. .................. 4,100 227
--------
1,341
Electric Power - 2.4%
AES Corp. ................................. 1,200 67
Allegheny Energy, Inc. .................... 900 43
Constellation Energy Group ................ 800 36
Dominion Resources, Inc. .................. 200 14
Duke Energy Co. ........................... 1,700 145
Exelon Corp. .............................. 1,600 112
Pinnacle West Capital Corp. ............... 800 38
Reliant Energy, Inc. ...................... 1,000 43
--------
498
Electronic Products & Services - 4.3%
Altera Corp. ............................. 1,200 32
Analog Devices, Inc. ...................... 1,300 67
Cisco Systems, Inc. ....................... 9,800 375
Linear Technology Corp. ................... 1,500 69
Maxim Integrated Products, Inc. ........... 800 38
Millipore Corp. ........................... 700 44
Motorola, Inc. ............................ 2,200 45
Novellus Systems, Inc. .................... 1,000 36
Sanmina Corp. ............................. 600 46
Texas Instruments, Inc. ................... 1,800 85
Xilinx, Inc. .............................. 1,200 55
--------
892
Energy - Alternative Source - 0.6%
Dynegy, Inc. - Cl.A ....................... 2,100 118
Financial Services - 3.3%
Citigroup, Inc. ........................... 11,000 562
Mellon Financial Corp. .................... 700 34
Stillwell Financial, Inc. ................. 2,300 91
--------
687
Food, Beverage & Tobacco - 1.2%
Anheuser-Busch Cos., Inc. ................. 1,200 55
ConAgra, Inc. ............................. 2,400 62
66
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
AGGRESSIVE BALANCED FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Food, Beverage & Tobacco - Continued
PepsiCo, Inc. ................................ 600 $ 30
Philip Morris Cos., Inc. ..................... 2,300 101
--------
248
Health Care Products - 12.2%
Abbott Laboratories .......................... 3,000 145
Allergan, Inc. ............................... 1,000 97
ALZA Corp. ................................... 1,100 47
American Home Products Corp. ................. 2,700 172
Baxter International, Inc. ................... 1,200 106
Bristol-Myers Squibb Co. ..................... 4,300 318
Eli Lilly & Co. .............................. 200 19
ENZON , Inc. ................................. 700 43
Forest Laboratories, Inc. .................... 200 27
Johnson & Johnson ............................ 2,800 294
Laboratory Corporation of America
Holdings ................................... 400 70
Merck & Co., Inc. ............................ 4,300 403
Pfizer, Inc. ................................. 11,100 511
Pharmacia Corp. .............................. 2,200 134
Schering-Plough Corp. ........................ 2,000 113
Waters Corp. ................................. 700 58
--------
2,557
Health Care Services - 0.3%
St. Jude Medical, Inc. ....................... 400 25
Wellpoint Health Networks, Inc. .............. 300 34
--------
59
Insurance - 4.5%
Allstate Corp. ............................... 1,200 52
American International Group, Inc. ........... 1,400 138
Chubb Corp. .................................. 1,100 95
Hartford Financial Services Group, Inc. ...... 2,500 177
Lincoln National Corp. ....................... 2,500 118
Marsh & McLennan Cos., Inc. .................. 600 70
St. Paul Cos., Inc. .......................... 2,000 109
Torchmark, Inc. .............................. 2,300 89
XL Capital, Ltd. - Cl. A ..................... 1,000 87
--------
935
Machinery - 0.5%
Ingersoll-Rand Co. ........................... 2,500 105
Media - Publishing - 0.4%
AT&T Corp. - Liberty Media Group -
Cl. A ...................................... 8,400 114
Media - TV / Radio - 1.7%
Clear Channel Communications, Inc. ........... 2,000 97
Infinity Broadcasting Corp. - Cl. A .......... 1,800 50
The Walt Disney Co. .......................... 1,800 52
Time Warner, Inc. ............................ 1,200 63
Viacom, Inc. - Cl. B ......................... 1,900 89
--------
351
Metals & Mining - 0.4%
Alcoa, Inc. .................................. 2,300 77
Oil - 0.7%
Royal Dutch Petroleum Co. - NY
Shares ..................................... 2,400 145
Oil & Natural Gas Exploration & Production - 2.2%
Chevron Corp. ................................ 700 59
Exxon Mobil Corp. ............................ 3,200 278
Kerr-McGee Corp. ............................. 700 47
Noble Drilling Corp. ......................... 800 35
USX-Marathon Group ........................... 1,200 33
--------
452
Oil - Equipment & Service - 0.4%
Baker Hughes, Inc. ........................... 1,800 75
Paper & Forest Products - 0.4%
Kimberly-Clark Corp. ......................... 1,300 92
Retail - Department Stores - 4.0%
Gap, Inc. .................................... 1,600 41
Home Depot, Inc. ............................. 3,400 155
Kohl's Corp. ................................. 2,600 159
Limited, Inc. ................................ 1,700 29
Lowe's Cos., Inc. ............................ 1,400 62
RadioShack Corp. ............................. 2,700 116
Tiffany & Co. ................................ 1,700 54
Wal-Mart Stores, Inc. ........................ 4,000 212
--------
828
Retail - Drug Stores - 0.9%
CVS Corp. .................................... 800 48
TJX Cos., Inc. ............................... 2,800 78
Walgreen Co. ................................. 1,300 54
--------
180
Retail - Food - 0.2%
Brinker International, Inc. .................. 800 34
Shoe & Apparel Manufacturing - 0.1%
Intimate Brands, Inc. ........................ 1,800 27
Steel - 0.2%
Nucor Corp. .................................. 1,100 44
Telecommunication Equipment - 0.7%
JDS Uniphase Corp. ........................... 800 33
Nortel Networks Corp. ........................ 3,400 109
--------
142
Telecommunication Services - 1.3%
Qwest Communications International, Inc. ..... 2,900 119
Sprint PCS (PCS Group) ....................... 2,100 43
67
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
AGGRESSIVE BALANCED FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Telecommunication Services - Continued
Verizon Communications .................... 2,200 $ 110
-------
272
Telephone - 1.1%
SBC Communications, Inc. .................. 3,600 172
Sprint Corp. .............................. 2,400 49
-------
221
Transportation Services - 0.1%
Union Pacific Corp. ....................... 600 30
U.S. Government Agencies - 1.3%
Federal National Mortgage Assoc ........... 3,200 278
-------
TOTAL COMMON STOCK- .................. 72.1% 15,090
Par
Value
(000's)
PUBLICLY-TRADED BONDS
Aerospace & Defense - 0.1%
Lockheed Martin Corp. - Bonds
8.5% due 12/01/29 ....................................... $ 15 17
Automobile - 0.2%
Ford Motor Co. - Bonds
6.625% due 10/01/28 ..................................... 60 51
Bank - 1.1%
Bank of America Corp. - Sub. Notes
7.8% due 02/15/10 ....................................... 80 83
BankBoston Corp. - Sr. Notes
6.125% due 03/15/02 ..................................... 50 50
Korea Development Bank - Bonds
7.125% due 09/17/01 ..................................... 50 50
Wells Fargo Bank NA - Sub.
7.55% due 06/21/10 ...................................... 40 43
-------
226
Brokerage & Investment Management - 0.2%
Lehman Brothers Holdings, Inc. -
Notes
6.5% due 10/01/02 ....................................... 50 50
Computer Equipment - 0.1%
International Business Machines Corp.
- Notes
5.625% due 04/12/04 ..................................... 30 29
Financial Services - 1.3%
Associates Corp. of North America -
Sr. Notes
6.25% due 11/01/08 ...................................... 45 43
First Union National Nank - Sub.
Notes
7.8% due 08/18/10 ....................................... 40 41
General Electric Capital Corp.
7.5% due 05/15/05 ....................................... 30 32
General Motors Acceptance Corp.
7.5% due 07/15/05 ....................................... 40 41
Green Tree Financial Corp. - Ser
1996-8 Cl. A6
7.6% due 10/15/27 ....................................... 50 52
PNC Funding Corp.
7.0% due 09/01/04 ....................................... 50 51
-------
260
Foreign Governmental - 0.2%
Province of Quebec - Debs
7.5% due 09/15/29 ....................................... 45 48
Media - TV / Radio - 0.3%
News America, Inc. - Debs
7.125% due 04/08/28 ..................................... 20 16
Time Warner, Inc.
6.625% due 05/15/29 ..................................... 20 18
Viacom, Inc.
7.7% due 07/30/10 ....................................... 30 32
-------
66
Natural Gas Distribution - 0.2%
Enron Corp. - Debs
9.125% due 04/01/03 ..................................... 30 32
Oil & Natural Gas Exploration & Production - 0.1%
Amerada Hess Corp. - Bonds
7.875% due 10/01/29 ..................................... 20 21
Oil - Equipment & Service - 0.1%
Petroleum Geo-Services ASA - Sr
Notes
7.125% due 03/30/28 ..................................... 20 16
Personal & Commercial Lending - 0.5%
Goldman Sachs Group, Inc.
7.8% due 01/28/10 ....................................... 40 42
Household Finance Corp. - Notes
6.0% due 05/01/04 ....................................... 30 29
8.0% due 07/15/10 ....................................... 30 32
U.S. West Capital Funding, Inc.
6.875% due 07/15/28 ..................................... 10 9
-------
112
Retail - Department Stores - 0.2%
Wal Mart Stores, Inc.
7.55% due 02/15/30 ...................................... 40 44
U.S. Government Agencies - 12.2%
Federal National Mortgage Assoc
6.0% due 12/01/99 ....................................... 150 148
6.0% due 12/01/99 ....................................... 350 339
6.625% due 11/15/30 ..................................... 168 178
7.0% due 12/01/99 ....................................... 310 310
7.125% due 06/15/10 ..................................... 270 292
7.25% due 05/15/30 ...................................... 60 68
68
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
AGGRESSIVE BALANCED FUND
Par Market
Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - Continued
U.S. Government Agencies - Continued
7.5% due 12/01/99 ................. $ 420 $ 429
7.5% due 12/01/99 ................. 279 283
Federal National Mortgage Assoc. -
Notes
4.75% due 11/14/03 ................ 50 49
7.0% due 07/15/05 ................. 420 441
-------
2,537
U.S. Governmental - 9.1%
U.S. Treasury
5.875% due 02/15/04 ............... 300 306
U.S. Treasury - Bonds
5.25% due 02/15/29 ................ 47 45
5.875% due 11/15/04 ............... 450 462
8.875% due 08/15/17 ............... 210 286
U.S. Treasury - Notes
6.25% due 10/31/01 ................ 265 266
6.5% due 02/15/10 ................. 105 115
6.625% due 05/15/07 ............... 400 431
-------
1,911
-------
TOTAL PUBLICLY-TRADED
BONDS- 25.9% 5,420
SHORT-TERM INVESTMENTS - 8.8%
Investment in joint trading account
(Note B)
6.695% due 01/02/01 1,852 1,853
-------- -------
TOTAL INVESTMENTS- 106.8% 22,363
Payables, less cash and receivables- (6.8)% (1,422)
-------- -------
NET ASSETS- 100.0% 20,941
======== =======
See notes to financial statements.
69
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
ACTIVE BOND FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS
Aerospace & Defense - 1.2%
Jet Equipment Trust
10.91% due 08/15/14 ........................... $ 2,100 $ 2,305
Lockheed Martin Corp. - Bonds
8.5% due 12/01/29 ............................. 2,635 2,990
Raytheon Co.
7.9% due 03/01/03 ............................. 2,605 2,678
Raytheon Co. - Notes
8.3% due 03/01/10 ............................. 1,650 1,808
--------
9,781
Agricultural Operations - 0.3%
Marlin Water Trust - Sr. Notes 144A (a)
7.09% due 12/15/01 ............................ 2,553 2,557
Automobile - 0.8%
Ford Motor Co. - Bonds
7.45% due 07/16/31 ............................ 2,675 2,516
Toyota Auto Receivables Owner Trust - Ser
2000-B Cl. A4
6.8% due 04/15/07 ............................. 3,715 3,804
--------
6,320
Bank - 3.2%
Abbey National First Capital - Sr
Sub. Notes
8.2% due 10/15/04 ............................. 4,000 4,242
Bank of America Corp. - Sub. Notes
7.8% due 02/15/10 ............................. 2,685 2,795
BNP PARIBAS Capital Trust
9.003% due 12/29/49 ........................... 1,785 1,857
International Bank of Reconstruction &
Development - Debs
8.25% due 09/01/16 ............................ 2,150 2,571
National Westminister Bank, NY - Sub.
Notes
9.45% due 05/01/01 ............................ 5,000 5,050
NB Capital Trust IV
8.25% due 04/15/27 ............................ 1,680 1,593
RBSG Capital Corp. - Notes
10.125% due 03/01/04 .......................... 5,000 5,489
Royal Bank of Scotland Group plc
8.817% due 03/31/05 ........................... 1,870 1,958
--------
25,555
Brokerage & Investment Management - 0.2%
Salomon Brothers Mortgage Securities VII
6.75% due 07/25/24 ............................ 1,890 1,886
Chemical - 0.2%
Akzo Nobel, Inc. - Bonds 144A (a)
6.0% due 11/15/03 ............................. 1,630 1,609
Cosmetic & Personal Care - 0.2%
Procter & Gamble Co. - Debs
6.45% due 01/15/26 ............................ 1,755 1,681
Electric Power - 8.4%
AES Corp.
9.375% due 09/15/10 ........................... 725 747
AES Corp. - Sr. Notes
9.5% due 06/01/09 ............................. 1,645 1,703
AES Corp. - Sr. Sub. Notes
10.25% due 07/15/06 ........................... 2,243 2,316
AES Eastern Energy
9.0% due 01/02/17 ............................. 2,130 2,166
Beaver Valley Funding Corp. - Debs
9.0% due 06/01/17 ............................. 2,365 2,586
BVPS II Funding Corp. - Coll. Lease Bonds
8.89% due 06/01/17 ............................ 2,464 2,622
CalEnergy Co., Inc. - Bonds
8.48% due 09/15/28 ............................ 2,685 2,904
Calpine Corp. - Sr. Notes
10.5% due 05/15/06 ............................ 1,920 1,978
Cleveland Electric Illuminating Co.
7.88% due 11/01/17 ............................ 480 483
Cleveland Electric Illuminating Co. - 1st
Mtge
9.5% due 05/15/05 ............................. 5,775 5,932
CMS Energy Corp. - Sr. Notes
6.75% due 01/15/04 ............................ 2,040 1,921
8.125% due 05/15/02 ........................... 2,650 2,625
CMS ENERGY Corp.
9.875% due 10/15/07 ........................... 730 763
Connecticut Light & Power Co.
7.75% due 06/01/02 ............................ 1,090 1,108
Connecticut Light & Power Co. - Notes
144A (a)
8.59% due 06/04/03 ............................ 1,310 1,316
East Coast Power LLC - Secd. Notes
7.066% due 03/31/12 ........................... 1,855 1,776
Long Island Lighting Co. - Debs
8.2% due 03/15/23 ............................. 3,235 3,313
Midland Cogeneration Venture - Debs
10.33% due 07/23/02 ........................... 411 421
10.33% due 07/23/02 ........................... 1,694 1,735
Monterrey Power SA de CV - Sec. Bonds
144A (a)
9.625% due 11/15/09 ........................... 650 633
Niagara Mohawk Power Corp. - Debs
8.77% due 01/01/18 ............................ 3,909 4,223
North Atlantic Energy Corp. - 1st Mtge
9.05% due 06/01/02 ............................ 1,230 1,245
Peco Energy Transition Trust
7.625% due 03/01/10 ........................... 7,630 8,016
PNPP II Funding Corp. - Debs
9.12% due 05/30/16 ............................ 2,455 2,641
Quest Diagnostic, Inc.
10.75% due 12/15/06 ........................... 1,847 1,939
Sierra Pacific Resources - Notes
8.75% due 05/15/05 ............................ 2,535 2,660
70
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
ACTIVE BOND FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - Continued
Electric Power - Continued
System Energy Resources, Inc. - 1st Mtge.
7.71% due 08/01/01..................................... $ 2,590 $ 2,604
TXU Electric & Gas
8.175% due 01/30/37 ................................... 1,810 1,665
Waterford 3 Funding - Entergy - Bonds
8.09% due 01/02/17 .................................... 4,488 4,409
XCEL Energy, Inc. - Sr. Notes
7.0% due 12/01/10 ..................................... 2,470 2,449
--------
70,899
Energy - Alternative Source - 0.2%
Pugent Sound Energy, Inc.
7.69% due 02/01/11 .................................... 1,785 1,861
Financial Services - 4.6%
Associates Corp. of North America - Debs.
6.95% due 11/01/18 .................................... 1,465 1,388
Bank of New York Institution Capital -
144A (a)
7.78% due 12/01/26 .................................... 3,350 3,157
Barclays North America Capital Corp. -
Debs.
9.75% due 05/15/21 .................................... 4,650 4,886
Citigroup , Inc.
7.25% due 10/01/10 .................................... 3,280 3,380
ERAC USA Finance Co.
7.95% due 12/15/09 .................................... 1,675 1,660
General Electric Cap Corp. - Notes
6.875% due 11/15/10 ................................... 2,670 2,800
General Motors Acceptance Corp.
7.5% due 07/15/05 ..................................... 2,535 2,595
HSBC Capital Funding LP - Ser. 144A (a)
9.547% due 12/31/49 ................................... 2,115 2,325
ING Capital Funding Trust III
8.439% due 12/31/49 ................................... 1,770 1,801
NiSource Finance Corp. - 144A (a)
7.875% due 11/15/10 ................................... 1,980 2,080
Peco Energy Transition Trust
6.05% due 03/01/09 .................................... 2,600 2,579
Spear Leeds & Kellogg lp - Notes
8.25% due 08/15/05 .................................... 2,015 2,135
Sun Canada Financial Co. - Bonds 144A (a)
6.625% due 12/15/07 ................................... 3,345 3,329
The MONY Group, Inc. - Sr. Notes
7.45% due 12/15/05 .................................... 1,155 1,169
UBS Preferred Funding TRI
8.622% due 10/29/49 ................................... 1,805 1,894
URC Holdings Corp. - Sr. Notes 144A (a)
7.875% due 06/30/06 ................................... 1,840 1,913
--------
39,091
Food, Beverage & Tobacco - 0.6%
Canandaigua Brands, Inc. - Sr. Sub. Notes
8.75% due 12/15/03 ................................ 2,365 2,318
Earthgrains Co.
8.375% due 08/01/03................................ 2,500 2,519
--------
4,837
Foreign Governmental - 2.1%
Hydro-Quebec - Debs. Ser. IF
7.375% due 02/01/03 ............................... 1,000 1,026
Hydro-Quebec - Debs.
9.4% due 02/01/21 ................................. 610 761
Hydro-Quebec - Debs. Ser. FU
11.75% due 02/01/12 ............................... 5,000 7,019
Nova Scotia
8.75% due 04/01/22 ................................ 3,000 3,608
Province of Quebec - Debs
7.5% due 09/15/29 ................................. 2,970 3,198
Province of Saskatchewan
9.375% due 12/15/20 ............................... 1,500 1,889
--------
17,501
Health Care Products - 0.2%
Fresenius Medical Capital Trust II
7.875% due 02/01/08 ............................... 1,740 1,583
Health Care Services - 0.5%
Dynacare, Inc. - Sr. Notes
10.75% due 01/15/06 ............................... 2,125 1,997
HCA - The Healthcare Co. - Notes
8.75% due 09/01/10 ................................ 910 958
Tenet Healthcare Corp. - Sr. Notes
8.0% due 01/15/05 ................................. 1,295 1,311
--------
4,266
Insurance - 1.3%
AXA - Sub Notes
8.6% due 12/15/30 ................................. 1,770 1,822
Equitable Life Assurance Society USA -
Notes 144A (a)
6.95% due 12/01/05 ................................ 1,240 1,251
Mass. Mutual Life Insurance Co. - Notes
144A (a)
7.625% due 11/15/23 ............................... 2,640 2,629
New York Life Insurance Co. - Sr. Notes
144A (a)
7.5% due 12/15/23 ................................. 5,970 5,324
--------
11,026
Leisure & Recreation - 0.2%
MGM Mirage, Inc.
8.5% due 09/15/10 ................................. 1,430 1,472
Media - TV / Radio - 2.3%
Adelphia Communications Corp. - Sr. Notes
8.125% due 07/15/03 ............................... 1,270 1,181
9.25% due 10/01/02 ................................ 2,460 2,374
British Sky Broadcasting
8.2% due 07/15/09 ................................. 1,845 1,741
71
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
ACTIVE BOND FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - Continued
Media - TV / Radio - Continued
Clear Channel Communications - Sr. Notes
7.875% due 06/15/05 ................................. $ 1,690 $ 1,757
Continental Cablevision - Sr. Notes
8.3% due 05/15/06 ................................... 2,165 2,320
EchoStar DBS Corp. - Sr. Notes
9.375% due 02/01/09 .................................
Lenfest Communications, Inc.
8.375% due 11/01/05 ................................. 1,690 1,808
News America Holdings, Inc. - Debs.
8.25% due 08/10/18 .................................. 1,275 1,250
Rogers Cablesystems - Sr. Notes
10.0% due 03/15/05 .................................. 1,205 1,271
TCI Communications, Inc. - Debs.
7.875% due 02/15/26 ................................. 1,780 1,739
Time Warner, Inc. - Debs.
9.125% due 01/15/13 ................................. 3,133 3,640
----------
19,081
Metal Production & Fabrication - 0.2%
Yanacocha Receivables - Pass thru Certs.
144A (a)
8.4% due 06/15/05 ................................... 1,466 1,397
Municipals - 0.4%
New Hampshire State - Taxable Pease Dev.
Auth.
7.7% due 07/01/12 ................................... 3,000 3,182
Natural Gas Distribution - 0.4%
Keyspan Corp. - Notes
7.625% due 11/15/10 ................................. 1,775 1,886
Louis Dreyfus Natural Gas Corp.
6.875% due 12/01/07 ................................. 1,690 1,675
----------
3,561
Oil - 0.3%
TOSCO Corp. 8.125% due 02/15/30 ..................... 2,650 2,854
Oil & Natural Gas Exploration & Production - 1.6%
Alberta Energy Co., Ltd. - Notes
8.125% due 09/15/30 ................................. 1,800 1,910
Amerada Hess Corp. - Bonds
7.875% due 10/01/29 ................................. 2,625 2,745
Apache Finance of Canada
7.75% due 12/15/29 .................................. 2,685 2,833
Occidental Petroleum Corp. - Sr. Debs.
10.125% due 09/15/09 ................................ 3,000 3,531
Ocean Energy, Inc.
8.875% due 07/15/07 ................................. 1,325 1,358
Snyder Oil Corp.
8.75% due 06/15/07 .................................. 805 835
----------
13,212
Oil - Equipment & Service - 0.6%
EL Paso Energy Corp. 8.05% due 10/15/30 ............. 2,635 2,770
Humpuss Funding Corp. - 144A (a)
7.72% due 12/15/09 .................................. 1,038 816
Petroleum Geo-Services ASA - Sr. Notes
7.125% due 03/30/28 ................................. 2,165 1,745
----------
5,331
Paper & Forest Products - 0.3%
International Paper Co. Notes 144A (a)
8.125% due 07/08/05 ................................. 2,540 2,636
Personal & Commercial Lending - 8.3%
Boeing Cap. Corp.
7.375% due 09/27/10 ................................. 2,685 2,877
Commercial Mortgage Acceptance Corp. -
Ser. 1991-C1 A1
6.79% due 06/15/31 .................................. 3,278 3,348
CS First Boston Mortgage Securities Corp. -
Ser. 1998-C1 A1A
6.26% due 04/11/30 .................................. 2,567 2,576
Deutsche Mortgage & Asset Receiving
Corp. - Ser. 1998-C1 Cl. C
6.861% due 03/15/08 ................................. 2,170 2,168
EQCC Home Equity Loan Trust
6.57% due 02/15/29 .................................. 2,120 2,118
Ford Credit Auto Owner Trust
6.58% due 11/15/04 .................................. 5,025 5,119
Ford Motor Credit Co. - Notes
6.125% due 04/28/03 ................................. 3,185 3,157
GMAC Commercial Mortgage Securities,
Inc.
6.566% due 11/15/07 ................................. 3,385 3,402
GMAC Commercial Mortgage Securities,
Inc. - 1997-C1 A2
6.853% due 09/15/06 ................................. 7,325 7,483
Household Finance Corp. - Notes
5.875% due 11/01/02 ................................. 3,955 3,923
Household Finance Corp. - Sr. Unsub.
5.875% due 02/01/09 ................................. 1,820 1,678
LB Commercial Conduit Mortgage Trust -
Ser. 1999-C1
6.41% due 08/15/07 .................................. 3,348 3,379
Midland Funding Corp. II - Debs.
11.75% due 07/23/05 ................................. 3,185 3,344
MMCA Auto Owner Trust
6.86% due 06/15/05 .................................. 4,092 4,195
Money Store Home Equity Trust - Ser. 1997-
C1 DAF7
6.485% due 12/15/28 ................................. 4,060 4,061
Morgan Stanley Capital Ser. 1999-CAM1
Cl. A3
6.92% due 11/15/18 .................................. 7,605 7,828
72
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
ACTIVE BOND FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - Continued
Personal & Commercial Lending - Continued
U.S. West Capital Funding, Inc.
6.875% due 07/15/28 ................................. $ 2,675 $ 2,339
UCFC Home Equity Loan
7.18% due 02/15/25 .................................. 1,115 1,137
UCFC Home Equity Loan - Ser. 1997-A1 A8
7.22% due 06/15/28 .................................. 6,177 6,289
---------
70,421
Pollution Control - 0.3%
Enron Corp. - Notes 144A (a)
8.0% due 08/15/05 ................................... 2,510 2,622
Real Estate Investment Trust - 2.4%
American Health Properties, Inc. - Notes
7.5% due 01/15/07 ................................... 1,350 1,278
Amresco Residential Securities - Mtge. Loan
6.51% due 08/25/27 .................................. 7,885 7,873
Cabot Industrial Properties LP - Notes
7.125% due 05/01/04 ................................. 1,975 1,976
Camden Property Trust - Sr. Notes
7.0% due 04/15/04 ................................... 2,170 2,148
IMC Home Equity Loan Trust - Ser. 1998-1
A4
6.6% due 03/20/25 ................................... 3,280 3,292
Liberty Property LP - Notes
6.6% due 06/05/02 ................................... 1,675 1,679
TriNet Corp. Realty Trust, Inc. - Notes
7.3% due 05/15/01 ................................... 2,070 2,027
---------
20,273
Real Estate Operations - 0.2%
HMH Properties, Inc. - Ser. A
7.875% due 08/01/05 ................................. 2,075 1,992
Telecommunication Equipment - 0.2%
BellSouth Capital Funding - Debs
7.875% due 02/15/30 ................................. 1,755 1,801
Telecommunication Services - 2.1%
Cox Communications, Inc. - Notes
7.75% due 11/01/10 .................................. 1,785 1,854
CSC Holdings, Inc. - Sr. Notes
8.125% due 07/15/09 ................................. 2,055 2,101
Dominion Resources, Inc.
8.125% due 06/15/10 ................................. 2,680 2,895
McLeodUSA, Inc. - Sr. Notes
9.5% due 11/01/08 ................................... 1,520 1,368
NTL Communications Corp. - Sr. Notes
11.5% due 10/01/08 .................................. 1,625 1,446
Telecorp PCS, Inc.
11.625% due 04/15/09 ................................ 1,715 1,175
Verizon Global Funding Corp. - Bonds
144A (a)
7.75% due 12/01/30 .................................. 2,640 2,686
Voicestream Wireless Corp. Sr. Notes
10.375% due 11/15/09 ................................ 545 586
Voicestream Wireless Corp.
11.5% due 09/15/09 .................................. 1,540 1,709
Worldcom, Inc.
8.0% due 05/15/06 ................................... 2,350 2,391
---------
18,211
Telephone - 1.0%
Calpine Corp.
8.25% due 08/15/05 .................................. 3,450 3,426
LCI International, Inc. - Sr. Notes
7.25% due 06/15/07 .................................. 2,205 2,230
MetroNet Communications Corp. - Sr. Notes
12.0% due 08/15/07 .................................. 1,770 1,948
Pinnacle Partners
8.83% due 08/15/04 .................................. 1,350 1,395
---------
8,999
Transportation Services - 2.4%
America West Airlines, Inc. - Pass thru Certs.
6.93% due 01/02/08 .................................. 1,522 1,504
Burlington North Santa Fe
7.95% due 08/15/30 .................................. 2,625 2,746
Continental Airlines, Inc. - Pass thru Certs.
7.206% due 06/30/04 ................................. 2,634 2,640
Delta Air Lines - Ser. 00-1
7.57% due 11/18/10 .................................. 1,785 1,884
Erac USA Finance Co. - Notes 144A (a)
6.625% due 02/15/05 ................................. 900 874
Northwest Airlines Corp.
8.375% due 03/15/04 ................................. 1,350 1,296
Northwest Airlines Corp. - Ser. 1996-1
8.97% due 01/02/15 .................................. 211 222
NWA Trust - Sr. Notes
9.25% due 06/21/14 .................................. 2,248 2,455
Railcar Trust - Pass thru Notes Ser
1992 -1
7.75% due 06/01/04 .................................. 1,476 1,511
U.S. Air, Inc. - Pass thru Certs. Ser. 1990 -
A1
11.2% due 03/19/05 .................................. 1,193 1,209
United Air Lines
7.032% due 04/01/12 ................................. 2,475 2,533
Wisconsin Central Transportation Corp. -
Notes
6.625% due 04/15/08 ................................. 1,360 1,343
---------
20,217
U.S. Government Agencies - 31.9%
Federal National Mortgage Assoc.
6.0% due 09/01/14 ................................... 9,209 9,091
6.5% due 09/01/13 ................................... 131 131
6.5% due 07/01/14 ................................... 8,314 8,312
6.5% due 11/01/14 ................................... 125 125
73
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
ACTIVE BOND FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - Continued
U.S. Government Agencies - Continued
6.5% due 01/01/15 ................................. $ 59 $ 59
6.5% due 02/01/15 ................................. 99 99
6.5% due 06/01/15 ................................. 439 439
6.5% due 11/01/28 ................................. 10,199 10,065
6.625% due 09/15/09 ............................... 9,920 10,337
Federal National Mortgage Assoc. Ser. 1997-M8 Cl.A
6.94% due 01/25/22 ................................ 1,418 1,455
Federal National Mortgage Assoc.
7.0% due 09/01/10 ................................. 4,039 4,093
7.0% due 11/01/14 ................................. 5,778 5,839
7.385% due 03/25/21 ............................... 1,010 1,036
Federal National Mortgage Assoc. - Notes
7.125% due 01/15/30 ............................... 13,165 14,736
Government National Mortgage Assoc.
6.0% due 01/15/29 ................................. 9,564 9,280
6.5% due 01/15/29 ................................. 4,362 4,313
6.5% due 07/15/28 ................................. 14,515 14,352
6.5% due 02/15/29 ................................. 12,211 12,073
6.5% due 04/15/29 ................................. 8,031 7,940
6.5% due 05/15/29 ................................. 8,921 8,821
6.5% due 06/15/29 ................................. 26,859 26,557
6.5% due 08/15/29 ................................. 6,947 6,868
7.0% due 09/15/25 ................................. 2,104 2,117
7.0% due 08/15/28 ................................. 6,421 6,449
7.0% due 03/15/29 ................................. 7,492 7,525
7.0% due 04/15/29 ................................. 12,036 12,089
7.0% due 06/15/29 ................................. 422 424
7.0% due 09/15/29 ................................. 31,713 31,852
7.0% due 10/15/30 ................................. 6,201 6,228
7.5% due 09/15/29 ................................. 17,845 18,151
7.5% due 12/15/29 ................................. 8,583 8,731
7.5% due 10/15/30 ................................. 6,196 6,302
7.5% due 11/15/30 ................................. 864 879
8.0% due 05/15/25 ................................. 290 298
8.0% due 06/15/25 ................................. 273 281
8.0% due 09/15/25 ................................. 563 578
8.0% due 01/15/26 ................................. 276 283
8.0% due 08/15/27 ................................. 1,473 1,512
8.0% due 07/15/30 ................................. 6,650 6,824
8.5% due 09/15/21 ................................. 607 631
9.0% due 05/15/21 ................................. 415 437
9.0% due 08/15/21 ................................. 486 511
9.5% due 06/15/16 ................................. 321 339
---------
268,462
U.S. Governmental - 13.6%
U.S. Treasury - Notes
5.625% due 05/15/08 ............................... 15,490 15,897
5.75% due 08/15/03 ................................ 39,750 40,328
5.75% due 08/15/10 ................................ 3,625 3,799
7.0% due 07/15/06 ................................. 4,799 5,223
U.S. Treasury - Bonds
6.125% due 08/15/29 ............................... 3,705 4,035
7.125% due 02/15/23 ............................... 2,057 2,451
U.S. Treasury - Notes
7.5% due 02/15/05 ................................. 27,721 30,142
U.S. Treasury - Bonds
8.875% due 08/15/17 ............................... 9,239 12,558
---------
114,433
---------
TOTAL PUBLICLY-TRADED BONDS- 92.7% 780,610
WARRANTS
Telephone - 0.0%
MetroNet Communications Corp. - CW07
144A (a)
expires 08/15/07 (Cost $58)........................ 2 229
---------
TOTAL WARRANTS- 0.0% 229
SHORT-TERM INVESTMENTS - 5.9%
Investment in joint trading account (Note B)
6.695% due 01/02/01 50,007 50,033
--------- ---------
TOTAL INVESTMENTS- 98.6% 830,872
Cash and Receivables, less payables- 1.4% 11,427
--------- ---------
NET ASSETS- 100.00% 842,299
========= =========
(a) Pursuant to Rule 144A (a) under the Securities Act of 1993, these
securities may be resold in transactions exempt from registration, normally
to qualified institutional buyers. At December 31, 2000, securities
aggregated $35,217 or 4.18% of net assets of the Portfolio.
See notes to financial statements.
74
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
CORE BOND FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS
Aerospace & Defense - 1.0%
Lockheed Martin Corp.
8.2% due 12/01/09 .................................... $ 50 $ 55
Automobile - 1.9%
Hertz Corp.
7.625% due 08/15/07 .................................. 100 103
Bank - 4.3%
Barclays Bank plc - Bonds 144A (a)
8.55% due 09/29/49 ................................... 75 79
Korea Development Bank
6.5% due 11/15/02 .................................... 50 49
National Bank of Canada - Notes Ser. B
8.125% due 08/15/04 .................................. 100 105
------
233
Brokerage & Investment Management - 1.0%
Lehman Brothers Holdings, Inc.
7.875% due 08/15/10 .................................. 50 52
Computer Equipment - 2.4%
Adaptec Inc.
4.75% due 02/01/04 ................................... 50 38
Dell Computer Corp.
7.1% due 04/15/28 .................................... 100 90
------
128
Electric Power - 1.9%
Isreal Electric Corp. Ltd.
8.25% due 10/15/09 ................................... 100 102
Financial Services - 5.1%
Amvescap plc
6.6% due 05/15/05 .................................... 75 74
General Electric Capital Corp.
6.65% due 09/03/02 ................................... 100 101
General Motors Acceptance Corp.
7.5% due 07/15/05 .................................... 100 103
------
278
Leisure & Recreation - 1.9%
International Speedway Corp.
7.875% due 10/15/04 .................................. 100 103
Media - TV / Radio - 0.9%
Clear Channel Communications
7.65% due 09/15/10 ................................... 50 51
Metals & Mining - 0.7%
Inco, Ltd. - Debs.
9.6% due 06/15/22 .................................... 40 40
Oil - 2.0% TOSCO Corp.
8.125% due 02/15/30 .................................. 100 108
Oil & Natural Gas Exploration & Production - 1.8%
Union Pacific Resources Group, Inc.
7.0% due 10/15/06 .................................... 50 51
Enterprise Oil - Bonds
7.0% due 05/01/18 .................................... 50 47
------
98
Personal & Commercial Lending - 1.0%
Prime Credit Card Master Trust
6.7% due 11/15/05 .................................... 50 50
Pollution Control - 1.3%
USA Waste Service , Inc.
7.125% due 10/01/07 .................................. 75 72
Real Estate Development - 0.5%
EOP Operating LP - Notes
7.375% due 11/15/03 .................................. 25 25
Retail - Department Stores - 1.9%
Target Corp.
7.5% due 02/15/05 .................................... 100 104
Telecommunication Services - 3.5%
Deutsche Telekom International Finance
8.25% due 06/15/30 ................................... 100 99
Sprint Capital Corp.
6.375% due 05/01/09 .................................. 100 90
------
189
Transportation Services - 2.9%
Delta Air Lines - Ser. 00-1
7.57% due 11/18/10 ................................... 50 53
United Airlines
7.73% due 07/01/10 ................................... 100 105
------
158
U.S. Government Agencies - 46.1%
Federal Home Loan Mortgage Corp. - Notes
5.75% due 07/15/03 ................................... 200 200
Federal Home Loan Mortgage Corp.
6.0% due 01/01/29 .................................... 194 188
7.5% due 01/01/30 .................................... 99 100
Federal National Mortgage Assoc.
5.125% due 02/13/04 .................................. 350 345
6.0% due 11/01/28 .................................... 194 188
7.0% due 07/01/30 .................................... 195 196
7.5% due 08/01/15 .................................... 387 396
7.5% due 07/01/30 .................................... 199 202
8.0% due 12/01/29 .................................... 280 287
8.5% due 01/01/31 .................................... 200 206
Government National Mortgage Assoc.
7.0% due 08/15/29 .................................... 99 100
75
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
CORE BOND FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - Continued
U.S. Government Agencies - Continued
7.5% due 07/15/30 ................................. $ 97 $ 99
--------
2,507
U.S. Governmental - 14.9%
U.S. Treasury
4.25% due 01/15/10 ................................ 103 107
U.S. Treasury - Notes
5.25% due 05/15/04 ................................ 50 50
U.S. Treasury - Bonds
7.25% due 05/15/16 ................................ 350 412
7.25% due 08/15/22 ................................ 200 241
--------
810
--------
TOTAL PUBLICLY-TRADED BONDS- 97.0% 5,266
SHORT-TERM INVESTMENTS - 1.3%
Investment in joint trading account
(Note B)
6.695% due 01/02/01 69 69
------- --------
TOTAL INVESTMENTS- 98.3% 5,335
Cash and Receivables, less payables- 1.7% 93
------- --------
NET ASSETS- 100.0% 5,428
======= ========
(a) Pursuant to Rule 144A under the Securities Act of 1993, these securities
may be resold in transactions exempt from registration, normally to
qualified institutional buyers. At December 31, 2000, securities aggregated
$79 or 1.5% of net assets of the Portfolio.
See notes to financial statements
76
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
EMERGING MARKETS EQUITY FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Argentina - 0.5%
Acindar Industria Argentina de Aceros
SA - Ser. B * (STEE) ............................ 6,311 $ 5
Banco Frances del Rio de la Plata SA -
ADR (BANK) ...................................... 560 12
Grupo Financiero Galicia SA (FINL) ................ 2,384 35
IRSA Inverionses York Represent
(READ) .......................................... 953 16
Siderar SAIC - Cl. A * (STEE) ..................... 2,797 7
Telecom Argentina Stet-France Telecom
SA - ADR (TELS) ................................. 4,860 76
-------
151
Brazil - 8.9%
Centrais Electricas Brasileiras SA (UTIE) ......... 845,000 16
Centrais Electricas Brasileiras SA ADR -
ADR (UTIE) ...................................... 1,000 9
Companhia Energetica de Minas Gerias -
ADR (UTIE) ...................................... 3,540 51
Companhia Vale do Rio Doce - ADR
(META) .......................................... 1,605 39
Embraer - Empresa Brasileira de
Aeronautica SA (AERO) ........................... 4,800 191
Embratel Participacoes SA - ADR (UTIT) ............ 15,286 240
Petroleo Brasileiro SA * (OILX) ................... 11,400 288
Petroleo Brasileiro SA - ADR (OILX) ............... 3,545 83
Tele Celular Sul Participacoes SA - ADR
(TELS) .......................................... 3,798 99
Tele Norte Leste Participacoes SA - ADR
(TELS) .......................................... 14,832 338
Telecomunicacoes Brasileiras SA - ADR
(UTIT) .......................................... 4,943 360
Telecomunicacoes do Parana SA (TELS) .............. 5,205 307
Telemig Celular Participacoes SA - ADR
(TELS) .......................................... 997 59
Telesp Celular Participacoes SA - ADR
(TELS) .......................................... 7,424 201
Unibanco - Uniao de Bancos Brasileiros
SA - GDR (BANK) ................................. 13,501 398
Votorantim Celulose e Papel SA - ADR
(PAPR) .......................................... 4,400 61
--------
2,740
Cayman Islands - 0.0%
SINA.com * (SOFT) ................................. 1,100 3
Chile - 0.2%
Compania de Telecomunicaciones de
Chile SA (UTIT) ................................. 4,700 62
China - 0.9%
China Petroleum (OILE) ............................ 313,000 49
Great Wall Technology Co. * (ETRN) ................ 393,000 128
Guandong Kelon Electrical Holdings Co.,
Ltd. - H Shares (APPL) .......................... 34,000 6
Nanjing Panda Electric (UTIE) ..................... 222,000 49
Yanzhou Coal Mining Co., Ltd. ADR -
ADR (META) ...................................... 3,960 55
--------
287
Czech Republic - 0.3%
Cesky Telecom AS - GDR * (TELS) ................... 4,270 57
SPT Telecom AS (TELS) ............................. 3,510 48
--------
105
Egypt - 0.6%
Egypt Gas Co. (OILX) .............................. 700 27
Egypt Mobile Phone * (TELS) ....................... 8,448 165
--------
192
Greece - 1.3%
Alpha Credit Bank * (BANK) ........................ 1,770 61
Bank of Piraeus (BANK) ............................ 2,770 43
Commercial Bank of Greece (BANK) .................. 980 48
EFG Eurobank * (BANK) ............................. 494 10
Hellenic Telecommunications
Organization SA (UTIT) .......................... 948 14
Hellenic Telecommunications
Organization SA - ADR (UTIT) .................... 20,974 152
National Bank of Greece SA (BANK) ................. 1,940 74
National Bank of Greece SA - ADR *
(BANK) .......................................... 680 5
--------
407
Hong Kong - 6.2%
Asia Satellite Telecommunications
Holdings, Ltd. (TELS) ........................... 17,000 35
China Merchants Holdings International
Co., Ltd. (CNSU) ................................ 123,000 89
China Mobile (Hong Kong) Limited
(TELS) .......................................... 13,100 355
China Telecom (Hong Kong), Ltd.
(TELS) .......................................... 140,000 765
China Unicom, Ltd. * (TELS) ....................... 1,900 28
China Unicom, Ltd. * (TELS) ....................... 18,000 28
Citic Pacific, Ltd. (DIOP) ........................ 33,000 117
Cosco Pacific, Ltd. (COMM) ........................ 141,000 109
Founder Holdings, Ltd. (META) ..................... 136,000 38
Legend Holdings (COMP) ............................ 205,000 129
Sun Television Cybernetworks
Holdings, Ltd. (MEDI) ............................. 1,269,000 30
TCL International Holdings, Ltd. *
(ETRN) .......................................... 452,000 103
Timeless Software, Ltd. * (SOFT) .................. 204,000 26
Yue Yuen Industrial Holdings (APPA) ............... 32,000 55
--------
1,907
77
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
EMERGING MARKETS EQUITY FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Hungary - 1.1%
Gedeon Richter Rt. (HEAL) ......................... 585 $ 35
Magyar Tavkozlesi Rt. (UTIT) ...................... 12,354 51
Magyar Tavkozlesi Rt. - ADR (UTIT) ................ 7,637 156
OTP Bank Rt. (BANK) ............................... 1,620 91
--------
333
India - 6.7%
Aptech, Ltd. * (SOFT) ............................. 5,600 45
Bharat Heavy Electricals, Ltd. (ELEQ) ............. 38,200 134
BSES, Ltd. * (UTIE) ............................... 12,500 53
Cipla, Ltd. (HEAL) ................................ 1,750 39
Container Corp. of India, Ltd. (TRAN) ............. 24,092 87
Dabur India, Ltd. (HEAL) .......................... 22,000 32
Dr. Reddy's Laboratories, Ltd. (HEAL) ............. 3,500 95
HCL Technologies, Ltd. * (SOFT) ................... 5,500 63
Hero Honda Motors, Ltd. * (AUTO) .................. 3,550 66
Hindustan Lever Ltd. (CNSU) ....................... 24,750 109
Housing Development Financing Corp.,
Ltd. (LEND) ..................................... 12,380 144
Indialnfo, Ltd. (SOFT) ............................ 10,639 44
Indo Gulf Corp., Ltd. (CHEM) ...................... 20,500 19
Infosys Technologies, Ltd. * (SOFT) ............... 2,565 313
Lupin Laboratories, Ltd. (HEAL) ................... 4,600 22
Mahanagar Telephone Nigam, Ltd.
(TELS) .......................................... 29,750 135
NIIT, Ltd. (SOFT) ................................. 2,850 97
Ranbaxy Laboratories, Ltd. * (HEAL) ............... 12,250 176
Reliance Industries, Ltd. - GDR *
(CHEM) .......................................... 7,950 129
Satyam Computer Services Limited
(SOFT) .......................................... 17,435 121
STERLITE Industries (DIOP) ........................ 5,950 20
Strides Arcolab, Ltd. (CNSU) ...................... 2,500 9
Tata Engineering and Locomotive Co.,
Ltd. - GDR (AUTO) ............................... 11,000 20
Zee Telefilms Ltd. (MEDI) ......................... 14,800 88
--------
2,060
Indonesia - 0.6%
PT Gudang Garam Tbk (FOOD) ........................ 99,500 134
PT Indah Kiat Pulp & Paper Corp. Tbk
(PAPR) .......................................... 159,000 13
PT Telekomunikasi Indonesia - ADR
(UTIT) .......................................... 7,510 31
--------
178
Israel - 10.7%
Aladdin Knowledge Systems (SOFT) .................. 5,187 19
AudioCodes, Ltd. * (TELE) ......................... 9,000 122
BATM Advanced Communications
Limited (COMP) .................................. 3,557 6
Breezecom, Ltd. * (TELE) .......................... 7,644 109
CERAGON NETWORKS, Ltd. (TELE) ..................... 2,300 28
Check Point Software Technologies, Ltd.
* (SOFT) ........................................ 5,428 725
ECI Telecommunications, Ltd. (MEDI) ............... 49,540 693
Galileo Technology, Ltd. * (ETRN) ................. 12,926 174
Gilat Satellite Networks, Ltd. * (TELE) ........... 969 25
Nice Systems, Ltd. (TELE) ......................... 813 27
Nice Systems, Ltd. - ADR * (TELE) ................. 2,619 53
Optibase, Ltd. * (COMP) ........................... 5,826 39
RADVision, Ltd. * (SOFT) .......................... 7,767 96
Radware, Ltd. * (SOFT) ............................ 8,889 150
Tecnomatix Technologies, Ltd. * (SOFT) ............ 5,682 30
Teva Pharmaceutical Industries, Ltd. ..............
(HEAL) .......................................... 1,490 105
Teva Pharmaceutical Industries, Ltd. -
ADR (HEAL) ...................................... 10,750 786
TTI Team Telecom International, Ltd. *
(TELS) .......................................... 8,556 128
--------
3,315
Malaysia - 2.1%
British American Tobacco (Malaysia)
Berhad (FOOD) ................................... 14,000 129
Commerce Asset Holding Bhd (BANK) ................. 14,000 30
Digi Swisscom * (TELS) ............................ 40,000 51
Malayan Banking Berhad (BANK) ..................... 38,000 135
Malaysian Pacific Industries (ETRN) ............... 10,000 41
Resorts World Berhad (LEIS) ....................... 19,000 31
Telekom Malaysia Berhad (TELS) .................... 36,000 107
Tenaga Nasional Berhad (UTIE) ..................... 38,000 116
--------
640
Mexico - 10.2%
Alfa, SA * (DIOP) ................................. 44,890 62
Cemex SA de CV - ADR Participation
Certificates * (CONS) ........................... 3,448 62
Cemex SA de CV - CPO * (CONS) ..................... 54,839 198
Cifra SA de CV - Ser. V (RETS) .................... 49,700 99
Fomento Economico Mexicano SA de CV
(FOOD) .......................................... 15,699 47
Fomento Economico Mexicano SA de CV
- ADR (FOOD) .................................... 8,750 261
Grupo Aeroportuario del Sureste SA de
CV * (TRAN) ..................................... 18,100 29
Grupo Aeroportuario Sur - ADR *
(TRAN) .......................................... 5,900 98
Grupo Carso SA de CV - Ser. A1 (DIOP) ............. 15,200 38
Grupo Financiero Banamex Accival, SA
de CV (FINL) .................................... 223,700 368
Grupo Financiero Bancomer SA de CV -
Cl. O (FINL) .................................... 296,850 164
Grupo Modelo SA de CV - Ser. C
(FOOD) .......................................... 8,200 22
Grupo Sanborns SA - Ser. B1 * (RETS) .............. 2,025 3
Grupo Televisa SA - GDR * (MEDI) .................. 7,184 323
78
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
EMERGING MARKETS EQUITY FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Mexico - Continued
IRSA Inversiones y Representaciones SA
- GDR (FINL) .................................... 2,100 $ 23
Kimberly-Clark de Mexico SA de CV
(PAPR) .......................................... 38,030 105
Telefonos de Mexico SA - ADR (UTIT) ............... 25,800 1,164
Wal-Mart de Mexico SA de CV - ADR *
(RETS) .......................................... 3,216 64
Wal-Mart de Mexico SA de CV - Ser. C
(RETS) .......................................... 18,300 34
--------
3,164
Poland - 1.8%
Bank Polska Kasa Opieki SA * (BANK) ............... 1,963 30
BRE Bank SA (BANK) ................................ 170 5
Elektrim Spolka Akcyjna SA (ETRN) ................. 4,506 55
Powszechny Bank Kredytowy SA
(BANK) .......................................... 126 3
Telekomunikacja Polska - GDR * (TELS) ............. 66,965 452
Wielkopolski Bank Kredytowy SA
(BANK) .......................................... 240 2
--------
547
South Africa - 4.4%
Anglo American Platinum Corp., Ltd.
(PMET) .......................................... 3,628 169
Bidvest Group, Ltd. (DIOP) ........................ 13,801 83
De Beers - ADR (PMET) ............................. 1,131 30
De Beers Centenary AG (UTIE) ...................... 7,815 207
Dimension Data Holdings plc (SOFT) ................ 12
Ellerine Holdings, Ltd. (RETS) .................... 10,560 24
FirstRand, Ltd. (FINL) ............................ 12,100 13
Impala Platinum Holdings, Ltd. (META) ............. 509 26
Liberty Life Association of Africa, Ltd.
(INSU) .......................................... 3,600 32
M-Cell, Ltd. (TELS) ............................... 25,170 84
Nedcor, Ltd. (BANK) ............................... 5,400 122
Rembrandt Group, Ltd. (DIOP) ...................... 21,380 57
Remgro, Ltd. * (DIOP) ............................. 21,380 146
Sanlam, Ltd. * (INSU) ............................. 52,300 66
Sasol, Ltd. (OILX) ................................ 25,213 163
South African Breweries plc (FOOD) ................ 21,400 151
--------
1,373
South Korea - 13.9%
39SHOPPING Corp. (RETS) ........................... 1,270 14
Cheil Communications, Inc. (MEDP) ................. 2,120 104
Communication Network Interface, Inc. *
(TELE) .......................................... 9,530 16
Hana Bank (BANK) .................................. 7,020 33
Housing & Commercial Bank, Korea
(BANK) .......................................... 11,664 265
Humax Co., Ltd. * (APPL) .......................... 11,105 92
Hyundai Electronics Industries Co.
(ETRN) .......................................... 27,870 89
Hyundai Motor Co., Ltd. (AUTO) .................... 6,330 61
Kookmin Bank (BANK) ............................... 14,423 170
Korea Electric Power Corp. (UTIE) ................. 6,050 113
Korea Electric Power Corp. - ADR
(UTIE) .......................................... 5,950 61
Korea Telecom Corp. * (TELS) ...................... 10,640 563
Korea Telecom Corp. - ADR * (TELS) ................ 12,490 387
Korea Telecom Freetel * (TELS) .................... 1,630 42
LG Home Shopping, Inc. (RETS) ..................... 1,390 31
LG Investment & Securities Co., Ltd.
(FINL) .......................................... 7,760 36
Pohang Iron & Steel Co., Ltd. (STEE) .............. 530 32
Samsung Electro-Mechanics Co. (ETRN) .............. 4,970 135
Samsung Electronics (ETRN) ........................ 9,100 1,137
Samsung Securities Co., Ltd. (FUND) ............... 3,870 71
Shinhan Bank (BANK) ............................... 15,860 130
SK Telecom Co., Ltd. (TELS) ....................... 2,920 584
SK Telecom Co., Ltd. - ADR (TELS) ................. 3,740 88
Telson Electronics Co., Ltd. (TELE) ............... 11,084 47
Tongyang Cement Co. (CONS) ........................ 1,940 26
--------
4,327
Soviet Union - 2.5%
LUKoil Holding - ADR (OILS) ....................... 8,002 252
RAO Unified Energy Systems - GDR
(UTIE) .......................................... 14,476 119
Rostelecom - ADR * (TELS) ......................... 2,660 14
Surgutneftegaz - ADR (OILS) ....................... 34,786 362
Surgutneftegaz JSC (OILS) ......................... 1,270 11
Vimpel-Communications - ADR *
(TELS) .......................................... 1,550 23
--------
781
Taiwan - 8.5%
Advantech Co., Ltd. (ETRN) ........................ 19,000 60
Ambit Microsystems Corp. (COMP) ................... 17,000 72
Ase Test, Ltd. * (ETRN) ........................... 3,700 31
Asustek Computer (COMP) ........................... 3,000 9
Asustek Computer, Inc. - GDR (COMP) ............... 27,424 82
Chinatrust Commercial Bank (BANK) ................. 94,000 57
Compal Electronics Inc. (COMP) .................... 81,000 110
Delta Electronics Inc. (ETRN) ..................... 78,000 244
Far Eastern Textile, Ltd. - GDR * (APPA) .......... 2,849 20
Far Eastern Textile, Ltd. - GDR 144A (a)
* (APPA) ........................................ 2,780 19
Hon Hai Precision Industry Co., Ltd. -
GDR * (ETRN) .................................... 18,890 219
Hon Hai Precision Insustry Co., Ltd. Cl. G
* (ETRN) ........................................ 17,000 86
Macronix International Co., Ltd. *
(COMP) .......................................... 53,000 64
Powerchip Semiconductor Corp. *
(ETRN) .......................................... 110,000 55
President Chain Store Corp. (RETS) ................ 21,000 55
79
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
EMERGING MARKETS EQUITY FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Taiwan - Continued
Pro Mos Technologies Inc. * (COMP) ................ 20,000 $ 18
Quanta Computer, Inc. (COMP) ...................... 35,000 92
Siliconware Precision (SOFT) ...................... 90,000 50
Siliconware Precision - ADR * (ETRN) .............. 15,552 39
Taishin International Bank (BANK) ................. 43,000 18
Taiwan Semiconductor (ETRN) ....................... 81,000 194
Taiwan Semiconductor Manufacturing
Co., Ltd. ADR (ETRN) ............................ 24,405 421
Uni-President Enterprises Co. * (FOOD) ............ 50,000 33
United Microelectronics Corp. (COMP) .............. 258,000 375
Winbond Electronic (ETRN) ......................... 39,000 37
Winbond Electronics Corp. - GDR *
(ETRN) .......................................... 9,847 92
Yageo Corp. * (ETRN) .............................. 104,000 82
Zinwell Corp. * (TELE) ............................ 9,000 13
--------
2,647
Thailand - 1.3%
Advanced Info Service Public Co., Ltd.
(TELS) .......................................... 15,900 154
BEC World Public Co., Ltd. (MEDI) ................. 12,700 58
Delta Electronics (Thailand) Public Co.,
Ltd. (ETRN) ..................................... 17,020 73
Shin Corp. Public Co., Ltd. (COMP) ................ 14,700 54
Thai Farmers Bank Public Co., Ltd.
(BANK) .......................................... 58,600 29
Total Access Communication Public Co.,
Ltd (TELS) ...................................... 14,000 38
--------
406
Turkey - 2.1%
Alcatel Teletas Telekomunikasyon
Endustri ve Ticaret AS (TELE) ................... 197,626 21
Anadolu Efes Biracilik ve Malt Sanayii
AS (FOOD) ....................................... 1,209,995 59
Netas Northern Electric
Telekomunikasyon AS (TELE) ...................... 1,521,639 157
Turkcell Iletisim Hizmetleri AS (TELS) ............ 7,008 49
Turkiye Garanti Bankasi AS (BANK) ................. 9,650,518 54
Vestel Elektronik Sanayi ve Ticaret A.S
(ETRN) .......................................... 9,097,620 34
Yapi ve Kredi Bankasi AS - GDR *
(BANK) .......................................... 1,045 5
Yapi ve Kredi Bankasi AS (BANK) ................... 55,623,378 286
--------
665
United Kingdom - 0.1%
South African Breweries plc * (FOOD) .............. 3,923 28
United States - 1.6%
Advanced Semiconductor (ETRN) ..................... 14,175 44
Amdocs, Ltd. * (TELS) ............................. 1,861 123
AsiaInfo Holdings, Inc. * (SOFT) .................. 30
Comverse Technology, Inc. * (COMP) ................ 1,638 178
Metalink, Ltd. * (ETRN) ........................... 2,300 22
Netease.com, Inc. (SOFT) .......................... 6,500 20
Sohu.com, Inc. (SOFT) ............................. 5,100 12
Wipro, Ltd. * (DIOP) .............................. 600 30
Zoran Corp. * (ETRN) .............................. 4,215 66
--------
495
--------
TOTAL COMMON STOCK- 86.5% 26,813
PREFERRED STOCK
Brazil - 5.4%
Banco Itau SA (BANK) .............................. 893,000 85
Celular CRT Participacoes * (TELS) ................ 1,045,321 338
Centrais Electricas Brasileires SA - Cl. B
(UTIE) .......................................... 453,000 8
Companhia Energetica de Minas Gerais -
CEMIG (UTIE) .................................... 2,843,400 41
Companhia Riograndense de
Telecomunicacoes * (TELS) ....................... 800,100 322
Companhia Vale do Rio Doce - Cl. A *
(META) .......................................... 11,639 284
Embratel Participacoes SA (UTIT) .................. 7,783,000 118
Petroleo Brasileiro SA - Petrobras (OILS) ......... 6,236 147
Tele Celular Sul Participacoes SA (TELS) .......... 8,034,000 21
Tele Centro Sul Participacoes SA (UTIT) ........... 6,041,000 69
Tele Nordeste Celular Participacoes SA
(TELS) .......................................... 12,797,600 26
Tele Norte Leste Participacoes SA (UTIT) .......... 4,093,062 88
Telemig Celular Participacoes SA (TELS) ........... 13,849,850 42
Telesp Celular Participacoes SA * (TELS) .......... 9,982,286 105
--------
1,694
South Korea - 0.2%
Samsung Electronics (ETRN) ........................ 960 53
--------
TOTAL PREFERRED STOCK- 5.6% 1,747
80
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
EMERGING MARKETS EQUITY FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
SHORT-TERM INVESTMENTS - 6.7%
Investment in joint trading account
(Note B)
6.695% due 01/02/01 ............... $ 2,076 $ 2,076
----------- ---------
TOTAL INVESTMENTS- 98.8% 30,636
Cash and Receivables, less payables- 1.2% 374
NET ASSETS- 100.0% 31,010
=========== =========
* Non-income producing security.
ADR-American Depositary Receipt
GDR-Global Depository Receipt
(a) Pursuant to Rule 144A under the Securities Act of 1993, these
securities may be resold in transactions exempt from registration,
normally to qualified institutional buyers. At December 31, 2000,
securities aggregated $19 or .06% of net assets of the Portfolio.
See notes to financial statements.
SUMMARY OF LONG-TERM SECURITIES BY INDUSTRY
Market % of
Industry Value Long-Term
Industry Abbreviation (000s) Investments
Telecommunication Services...... TELS 6,438 22.5%
Electronic Products & Services.. ETRN 3,713 13.0%
Telephone ...................... UTIT 2,507 8.8%
Bank ........................... BANK 2,199 7.7%
Computer Software & Services.... SOFT 1,815 6.4%
Health Care Products ........... HEAL 1,292 4.5%
Computer Equipment ............. COMP 1,226 4.3%
Media - TV / Radio ............. MEDI 1,192 4.2%
Food, Beverage & Tobacco ....... FOOD 862 3.0%
Electric Power ................. UTIE 843 3.0%
Oil ............................ OILS 772 2.7%
Financial Services ............. FINL 640 2.2%
Telecommunication Equipment..... TELE 617 2.2%
Oil & Natural Gas...............
Exploration & Production ....... OILX 562 2.0%
Diversified Operations ......... DIOP 551 1.9%
Metals & Mining ................ META 441 1.5%
Retail - Department Stores...... RETS 323 1.1%
Construction ................... CONS 287 1.0%
Transportation Services ........ TRAN 214 0.8%
Consumer Miscellaneous ......... CNSU 207 0.7%
Precious Metals/Gems/Stones..... PMET 200 0.7%
Aerospace & Defense ............ AERO 191 0.7%
Paper & Forest Products ........ PAPR 180 0.6%
Chemical ....................... CHEM 148 0.5%
Automobile ..................... AUTO 147 0.5%
Personal & Commercial Lending .. LEND 144 0.5%
Electrical Equipment ........... ELEQ 134 0.5%
Commercial Sevices ............. COMM 109 0.4%
Media - Publishing ............. MEDP 104 0.4%
Insurance ...................... INSU 98 0.3%
Household Appliances /
Furnishings .................. APPL 98 0.3%
Shoe & Apparel Manufacturing ... APPA 95 0.3%
Brokerage & Investment .........
Management ................... FUND 71 0.2%
Oil - Equipment & Service ...... OILE 49 0.2%
Steel .......................... STEE 44 0.2%
Leisure & Recreation ........... LEIS 30 0.1%
Real Estate Development ........ READ 16 0.1%
-------- --------
$ 28,560 100.0%
======== ========
81
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Argentina - 0.2%
Banco Frances SA (BANK) .......................... 10,000 $ 69
GPO Finance GALICIA (FINL) ....................... 40,460 60
IRSA Inversiones y Representaciones
SA (READ) ...................................... 29,022 49
PC Holdings SA - Cl. B (FINL) .................... 53,132 82
Siderca SAIC (STEE) .............................. 35,000 68
---------
328
Australia - 2.4%
Amcor, Ltd. (CONT) ............................... 25,300 74
AMP Diversified Property Trust (REIT)............. 106,700 145
AMP, Ltd. * (INSU) ............................... 33,300 375
Aristocrat Leisure Limited (LEIS) ................ 30,900 89
Brambles Industries, Ltd. (DIOP) ................. 7,200 168
Broken Hill Proprietary Co., Ltd. (DIOP).......... 35,100 370
Coles Myer, Ltd. (RETS) .......................... 39,400 153
CSL Limited (HEAL) ............................... 2,600 56
CSR, Ltd. (CONS) ................................. 37,900 99
Foster's Brewing Group, Ltd. (FOOD) .............. 70,100 184
General Property Trust (REIT) .................... 53,300 82
Lend Lease Corp. (FINL) .......................... 13,200 123
National Australia Bank, Ltd. (BANK) ............. 30,600 490
News Corp., Ltd. (MEDI) .......................... 45,600 355
ONESTEEL (STEE) .................................. 8,775 5
Orica, Ltd. (DIOP) ............................... 15,500 50
Pacific Dunlop, Ltd. (DIOP) ...................... 59,000 49
Paperlinx (PAPR) ................................. 4,800 9
QBE Insurance Group, Ltd. (INSU) ................. 11,200 62
Rio Tinto, Ltd. (PMET) ........................... 7,900 129
Santos, Ltd. (OILX) .............................. 38,000 127
TABCORP Holdings, Ltd. (LEIS) .................... 16,400 100
Telstra Corp., Ltd. (TELS) ....................... 166,200 594
Westfield Trust (REIT) ........................... 54,000 102
Westpac Banking Corp., Ltd. (BANK) ............... 46,600 342
WMC, Ltd. (DIOP) ................................. 29,500 126
Woolworth's, Ltd. (RETS) ......................... 30,300 142
---------
4,600
Austria - 1.3%
Austria Tabak AG (FOOD) .......................... 3,700 205
Austrian Airlines (TRAN) ......................... 5,550 64
Bank Austria AG (BANK) ........................... 16,200 892
BBAG Oesterreichische Brau
Beteiligungs AG (FOOD) ......................... 2,150 93
Bohler-Uddeholm AG (STEE) ........................ 1,500 49
BWT AG (POLL) .................................... 2,000 66
EA-Generali AG (INSU) ............................ 1,050 181
Flughafen Wien AG (TRAN) ......................... 4,000 151
Mayr-Melnhof Karton Ag (PAPR) .................... 1,800 79
Oesterreichische
Elektrizitaetswirtschafts AG (UTIE) ............ 3,900 396
OMV AG (OILX) .................................... 3,000 232
VA Technologie AG (ENGI) ......................... 2,100 63
Wienerberger Baustoffindustrie AG
(CONS) ......................................... 7,200 129
---------
2,600
Belgium - 1.5%
Barco NV (ETRN) ............................... 559 42
BarcoNet NV * (ETRN) .......................... 1,118 9
Bekaert NV (METP) ............................. 1,390 65
Colruyt, NV (RETF) ............................ 1,870 82
Compagnie Maritime Belge SA (TRAN)............. 1,921 144
D' Ieteren SA (AUTO) .......................... 190 42
Delhaize "Le Lion" SA (RETF) .................. 1,255 60
Electrabel SA (UTIE) .......................... 1,536 347
Fortis (B) (INSU) ............................. 30,692 997
Groupe Bruxelles Lambert SA (FUND)............. 1,094 260
KBC Bancassurance Holding NV (BANK) 10,840 470
N.V. Union Miniere SA * (META) ................ 1,461 55
Solvay SA (FINL) .............................. 2,115 118
Suez Lyonnaise des Eaux SA - Strip
VVPR * (DIOP) ............................... 2,341
Total Fina SA - Strip VVPR * (DIOP) 3,609
UCB SA (HEAL) ................................. 4,800 178
---------
2,869
Bermuda - 0.0%
Brierly Investments, Ltd. (FUND) .............. 295,300 38
Brazil - 0.2%
Centrais Electricas Brasileiras SA
(UTIE) ...................................... 10,577,000 196
Companhia de Bebidas das Americas *
(FOOD) ...................................... 482,000 116
Tele Norte Leste Participacoes SA
(UTIT) ...................................... 11,096,000 182
---------
494
Chile - 0.4%
Banco Santiago SA - ADR (BANK) ................ 2,900 57
Compania Cervecerias Unidas SA -
ADR (FOOD) .................................. 3,900 84
Compania de Telecomunicaciones de
Chile SA (UTIT) ............................. 8,000 106
Embotelladora Andina SA - ADR
(FOOD) ...................................... 6,100 73
Empresa Nacional de Electricidad SA -
ADR (UTIE) .................................. 10,100 110
Enersis SA - ADR (UTIE) ....................... 3,700 65
Laboratorio Chile SA - ADR (HEAL) 5,700 102
Madeco SA - ADR (META) ........................ 13,000 62
Sociedad Quimica y Minera de Chile SA
- ADR (CHEM) ................................ 3,400 71
---------
730
82
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
China - 0.1%
Beijing Datang Power Generation
Company Limited (UTIE) ......................... 287,000 $ 75
Guangshen Railway Company Limited
(TRAN) ......................................... 544,000 68
Huaneng Power International, Inc. -
ADR * (UTIE) ................................... 4,900 92
---------
235
Czech Republic - 0.2%
Ceska Sporitelna AS (BANK) ....................... 9,500 59
Ceske Energeticke Zavody AS (UTIE)................ 35,500 94
Komercni Banka AS (BANK) ......................... 4,100 99
SPT Telecom AS (TELS) ............................ 6,300 85
---------
337
Denmark - 1.0%
A/S Dampskibsselskabet Svendborg -
Cl. B (TRAN) ................................... 27 316
D/S 1912 - Cl. B (TRAN) .......................... 40 348
Danisco AS (FOOD) ................................ 1,650 68
Danske Bank (BANK) ............................... 11,500 207
ISS AS (COMM) .................................... 1,650 112
Novo Nordisk AS - Cl. B .......................... 2,350 422
(HEAL)
Novozymes AS - Ser. B * (HEAL) ................... 2,350 47
Tele Danmark AS (TELS) ........................... 6,850 279
Vestas Wind Systems AS (ENER) .................... 2,500 135
---------
1,934
Finland - 0.7%
Nokia Oyj (HEAL) ................................. 24,900 1,111
Sampo Insurance Co. plc (INSU) ................... 1,900 102
Sonera Oyj (TELS) ................................ 5,432 98
UPM-Kymmene Corp. * (PAPR) ....................... 2,700 93
---------
1,404
France - 9.0%
Accor SA (LEIS) .................................. 5,285 223
Air Liquide (CHEM) ............................... 1,306 195
Alcatel (TELE) ................................... 18,887 1,073
AXA SA (INSU) .................................... 7,233 1,046
Banque Nationale de Paris (BANK) ................. 7,536 662
Bouygues SA (CONT) ............................... 6,110 277
Canal Plus (MEDI) ................................ 2,215 8
Cap Gemini SA (COMM) ............................. 1,622 262
Carrefour SA (RETF) .............................. 11,715 736
Casino Guichard-Perrachon SA (RETF)............... 2,053 207
Club Mediterranee SA (LEIS) ...................... 838 71
Compagnie de St. Gobain (CONS) ................... 1,795 282
Dassault Systemes SA (SOFT) ...................... 1,995 137
Eridania Beghin-Say SA (FOOD) .................... 98 8
Essilor International SA (HEAL) .................. 188 61
France Telecom (TELS) ............................ 17,681 1,527
Groupe Danone (FOOD) ............................. 2,269 342
Imercys (CONS) ................................... 794 90
L'Oreal SA (HNBA) ................................ 11,360 974
Lafarge SA (CONS) ................................ 2,526 212
Lagardere SCA (DIOP) ............................. 2,436 141
LVMH (Louis Vuitton Moet Hennessy)
(FOOD) ......................................... 8,190 542
Michelin (PART) .................................. 1,649 60
Pernod Ricard (FOOD) ............................. 1,763 122
Pinault-Printemps-Redoute SA (RETS)............... 1,992 428
PSA Peugeot Citroen (AUTO) ....................... 921 209
Rhone-Poulenc SA (BANK) .......................... 13,304 1,168
Sagem SA (ETRN) .................................. 627 84
Sanofi-Synthelabo SA * (HEAL) .................... 12,652 843
Schneider SA (MACH) .............................. 2,599 190
Sidel SA (MACH) .................................. 1,162 53
Societe BIC SA (COMM) ............................ 1,234 48
Societe Eurafrance SA (FINL) ..................... 128 93
Societe Generale - Cl. A (BANK) .................. 7,301 454
STMICROELECTRONICS (ETRN) ........................ 15,453 675
Suez Lyonnaise des Eaux (FOOD) ................... 3,904 713
Thomson CFS (ETRN) ............................... 3,440 165
Total Fina SA - Cl. B (OILX) ..................... 13,079 1,945
Unibail (REAL) ................................... 700 112
Usinor SA (STEE) ................................. 5,194 69
Valeo SA (PART) .................................. 1,712 76
Vivendi Universal SA (DIOP) ...................... 15,051 991
---------
17,574
Germany - 12.2%
Adidas-Salomon AG (APPA) ......................... 1,920 119
Allianz AG - Reg. (INSU) ......................... 8,130 3,043
BASF AG (CHEM) ................................... 20,210 914
Bayer AG (CHEM) .................................. 22,930 1,203
Bayerische Vereinsbank AG (BANK) ................. 13,272 751
Beiersdorf AG (HNBA) ............................. 2,220 232
Continental AG (PART) ............................ 1,100 18
DaimlerChrysler AG (AUTO) ........................ 31,945 1,342
Deutsche Bank AG (BANK) .......................... 19,450 1,635
Deutsche Telekom AG (UTIT) ....................... 100,890 3,041
Douglas Holding AG (HNBA) ........................ 1,090 42
Dresdner Bank AG (BANK) .......................... 18,460 805
E.On AG (DIOP) ................................... 23,048 1,402
EM.TV & Merchandising AG (MEDI) .................. 4,391 24
Fresenius Medical Care AG (HEAL) ................. 2,350 192
Heidelberg Zement (CONS) ......................... 1,480 68
Heidelberger Zement AG * (CONS) .................. 1,048 46
Hochtief AG (CONS) ............................... 3,810 75
Kamps AG (FOOD) .................................. 2,666 28
Karstadt AG (RETS) ............................... 4,100 127
Linde AG (ENGI) .................................. 3,300 160
Lufthansa AG (TRAN) .............................. 9,730 251
MAN AG (DIOP) .................................... 4,400 112
Merck KGaA (HEAL) ................................ 6,110 270
Metro AG * (RETS) ................................ 9,200 430
83
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Germany - Continued
Muenchener Rueckversicherungs-
Gesellschaft AG - Reg. (INSU) .................... 5,760 $ 2,061
Preussag AG (DIOP) ............................... 6,400 231
RWE AG (UTIE) .................................... 14,500 651
SAP AG (SOFT) .................................... 6,160 716
Schering AG (HEAL) ............................... 4,890 278
SGL Carbon AG (CHEM) ............................. 1,190 64
Siemens AG (DIOP) ................................ 19,860 2,596
Thyssen Krupp AG (CONS) .......................... 16,413 254
Volkswagen AG (AUTO) ............................. 10,119 529
WCM Beteiligungs-und Grundbesitz AG
(DIOP) ......................................... 7,132 106
----------
23,816
Greece - 0.5%
Alpha Credit Bank (BANK) ......................... 4,410 153
Commercial Bank of Greece (BANK).................. 1,780 87
EFG Eurobank * (BANK) ............................ 4,407 85
Hellenic Bottling Co. SA (FOOD) .................. 3,500 57
Hellenic Telecommunication
Organization SA (UTIT) ......................... 13,420 200
Intracom SA (TELE) ............................... 4,860 110
National Bank of Greece SA (BANK)................. 5,160 197
Titan Cement Co. SA (CONS) ....................... 1,400 55
----------
944
Hong Kong - 1.5%
Cathay Pacific Airways (TRAN) .................... 32,000 59
China Southern Airlines Company
Limited * (TRAN) ............................... 286,000 87
China Telecom (Hong Kong), Ltd.
(TELS) ......................................... 107,000 584
CLP Holdings, Ltd. (UTIE) ........................ 25,500 127
Hang Seng Bank, Ltd. (BANK) ...................... 22,700 306
Henderson Land Development Co., Ltd.
(READ) ......................................... 22,000 112
Hutchison Whampoa, Ltd. (COMM) ................... 52,500 655
LEGEND Holdings (COMP) ........................... 122,000 77
Li & Fung, Ltd. (COMM) ........................... 36,000 65
New World Development Co., Ltd.
(READ) ......................................... 48,000 58
Pacific Century Cyberworks, Ltd. *
(TELE) ......................................... 202,380 130
Sun Hung Kai Properties, Ltd.(REIT)............... 31,000 309
Swire Pacific, Ltd. - Cl. A (DIOP)................ 23,500 169
Wharf (Holdings), Ltd. (DIOP) .................... 44,000 107
----------
2,845
Hungary - 0.3%
Danubius Hotel and Spa Rt. (LEIS)................. 3,600 56
Gedeon Richter Rt. (HEAL) ........................ 900 53
Magyar Tavkozlesi Rt. (UTIT) ..................... 36,200 151
MOL Magyar Olaj-es Gazipari Rt.
(OILX) ......................................... 7,500 127
OTP Bank Rt. (BANK) .............................. 2,300 129
----------
516
India - 0.7%
Bajaj Auto, Ltd. - GDR (AUTO) .................... 14,300 79
EIH, Ltd. - GDR (REAL) ........................... 23,000 122
Grasim Industries, Ltd. - GDR (DIOP).............. 15,000 101
Gujarat Ambuja Cements, Ltd. - GDR
(CONS) ......................................... 23,800 80
Hindalco Industries, Ltd. - GDR
(META) ......................................... 5,500 98
Indian Hotels Co., Ltd. - GDR (REAL).............. 16,700 79
ITC, Ltd. - GDR * (FOOD) ......................... 13,600 262
Larsen & Toubro, Ltd. - GDR (DIOP)................ 13,500 113
Mahindra & Mahindra, Ltd. - GDR *
(AUTO) ......................................... 16,500 50
Ranbaxy Laboratories, Ltd. - GDR
(HEAL) ......................................... 5,700 91
Reliance Industries, Ltd. - GDR *
(CHEM) ......................................... 13,100 212
Tata Engineering and Locomotive Co.,
Ltd. - GDR (AUTO) .............................. 34,600 62
----------
1,349
Ireland - 0.6%
Allied Irish Banks plc (BANK) .................... 26,800 311
CRH plc (CONS) ................................... 13,300 248
Eircom plc * (TELS) .............................. 69,432 176
Greencore Group plc (FOOD) ....................... 26,000 68
Irish Life & Permanent plc (FINL)................. 9,553 118
Jefferson Smurfit Group plc
(CONT) ......................................... 47,000 93
Kerry Group plc (FOOD) ........................... 8,400 109
Ryanair Holdings plc * (TRAN) .................... 11,421 123
----------
1,246
Israel - 0.6%
Bank Hapoalim (BANK) ............................. 43,700 127
Bezeq Israeli Telecommunication Corp.,
Ltd. (UTIT) .............................. 28,300 152
Check Point Software Technologies, Ltd.
* (SOFT) ....................................... 3,200 427
IDB Holding Corp., Ltd. (FUND) ................... 5,700 201
Industrial Building Corp. (CONS).................. 45,100 68
Makteshim-Agan Industries, Ltd. *
(CHEM) ......................................... 26,900 66
Teva pharmaceutical Industries, Ltd.
(HEAL) ......................................... 3,200 226
----------
1,267
Italy - 7.7%
Alitalia SpA (TRAN) .............................. 60,000 108
Assicurazioni Generali (INSU) .................... 44,632 1,773
Autogrill SpA (RETF) ............................. 10,001 123
Banca Di Roma (BANK) ............................. 60,000 65
84
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Italy - Continued
Banca Intesa SpA (BANK) .......................... 178,800 $ 860
Banca Intesa SpA - RNC (BANK) .................... 37,400 108
Banca Popolare di Milano (BANK)................... 18,100 90
Benetton Group SpA (APPA) ........................ 103,979 217
Bulgari SpA (RETS) ............................... 8,900 110
Enel SpA * (UTIE) ................................ 248,583 966
ENI SpA (OILS) ................................... 285,800 1,825
Fiat SpA (AUTO) .................................. 15,350 361
Fiat SpA - RNC (AUTO) ............................ 720 10
Italcementi SpA (CONS) ........................... 10,920 91
ITALGAS(SOC ITAL) (UTIG) ......................... 12,650 128
La Rinascente SpA (CONS) ......................... 10,500 62
Marzotto & Figli SpA (APPA) ...................... 7,500 89
Mediaset SpA (MEDI) .............................. 44,200 528
Mediobanca SpA (FUND) ............................ 24,000 272
Mondadori (Arnoldo) Editore SpA
(MEDP) ......................................... 10,800 100
Olivetti SpA (COMM) .............................. 178,400 426
Parmalat Finanziaria SpA (FOOD)................... 77,600 126
Pirelli SpA (DIOP) ............................... 71,100 253
Riunione Adriatica di Sicorta SpA
(INSU) ......................................... 25,379 396
Riunione Adriatica di Sicorta SpA -
RNC (INSU) ..................................... 2,920 35
SAI spa (INSU) ................................... 4,300 85
San Paolo-IMI SpA (BANK) ......................... 57,310 927
Seat Pagine Gialle SpA (MEDP) .................... 10,012 22
Sirti SpA (TELE) ................................. 11,100 19
Telecom Italia Mobile SpA (TELS).................. 240,100 1,916
Telecom Italia Mobile SpA - RNC
(TELS) ......................................... 48,200 210
Telecom Italia SpA (TELS) ........................ 131,500 1,455
Telecom Italia SpA - RNC (TELS)................... 47,300 284
UniCredito Italiano SpA (BANK) ................... 196,600 1,028
----------
15,068
Japan - 26.8%
77 Bank, Ltd. (BANK) ............................. 18,000 103
Acom Co., Ltd. (LEND) ............................ 4,200 310
Ajinomoto Co., Inc. (FOOD) ....................... 20,000 260
Alps Electric Co. (ETRN) ......................... 6,000 91
Amada Co., Ltd (MACH) ............................ 13,000 97
Asahi Bank, Ltd. (BANK) .......................... 73,000 248
Asahi Breweries, Ltd. (FOOD) ..................... 13,000 132
Asahi Chemical Industry Co., Ltd.
(CHEM) ......................................... 42,000 242
Asahi Glass Co., Ltd. (APPL) ..................... 39,000 322
Bank of Tokyo-Mitsubishi (BANK)................... 127,000 1,263
Bank of Yokohama, Ltd. (BANK) .................... 22,000 100
Benesse Corp. (COMM) ............................. 2,600 96
Bridgestone Corp. (PART) ......................... 21,000 191
Canon, Inc. (COMM) ............................... 22,000 770
Casio Computer Co. (ETRN) ........................ 9,000 76
Central Japan Railway Co. (TRAN).................. 61 375
Chugai Pharmaceutical Co., Ltd.
(HEAL) ......................................... 4,000 67
Citizen Watch Co., Ltd. (RETS) ................... 10,000 73
Cosmo Oil Co., Ltd. (OILX) ....................... 33,000 59
Credit Saison Co., Ltd. (FINL) ................... 5,600 120
CSK Corp. (SOFT) ................................. 3,200 47
Dai Nippon Printng Co., Ltd. (COMM)............... 19,000 283
Daicel Chemical Industries, Ltd.
(CHEM) ......................................... 16,000 49
Daiichi Pharmaceutical Co., Ltd.
(HEAL) ......................................... 10,000 297
Daikin Industries, Ltd. (CONS) ................... 10,000 192
Dainippon Ink & Chemicals, Inc.
(CHEM) ......................................... 28,000 83
Dainippon Screen Manufacturing Co.,
Ltd. (ELEQ) .................................... 15,000 72
Daito Trust Construction Co., Ltd.
(REAL) ......................................... 3,600 65
Daiwa House Industry Co., Ltd.(HOUS).............. 17,000 106
Daiwa Securities Group, Inc. (FUND)............... 37,000 386
Denso Corp. (ETRN) ............................... 19,000 411
East Japan Railway Co. (TRAN) .................... 107 627
Ebara Corp. (MACH) ............................... 9,000 98
Eisai Co. Ltd. (HEAL) ............................ 10,000 350
Fanuc, Ltd. (ELEQ) ............................... 6,300 428
Fuji Machine Mfg. CO., LTD. (MACH)................ 1,000 27
Fuji Photo Film (LEIS) ........................... 14,000 585
Fuji Soft ABC, Inc. (SOFT) ....................... 1,000 64
Fujikura (ELEQ) .................................. 11,000 82
Fujitsu, Ltd. (ELEQ) ............................. 51,000 751
Furukawa Electric Co. (TELE) ..................... 16,000 279
Hankyu Corp. (TRAN) .............................. 18,000 57
Hirose Electric Co., Ltd. (ETRN).................. 1,200 115
Hitachi, Ltd. (ETRN) ............................. 88,000 784
Honda Motor Co. (AUTO) ........................... 25,000 932
Hoya Corp. (ETRN) ................................ 3,000 220
Isetan Co., Ltd. (RETS) .......................... 14,000 148
Ishikawajima-Harima Heavy Industries
Co., Ltd. (DIOP) ............................... 28,000 60
Ito-Yokado Co., Ltd. (RETS) ...................... 11,000 548
Itochu Corp. (DIOP) .............................. 42,000 195
Japan Airlines Co., Ltd. (TRAN)................... 50,000 229
Japan Energy Corp. (OILX) ........................ 54,000 84
Japan Tobacco, Inc. (FOOD) ....................... 45 349
Joyo Bank, Ltd. (BANK) ........................... 29,000 92
JUSCO Co., Ltd. * (RETS) ......................... 10,000 217
Kajima Corp. (CONS) .............................. 35,000 97
Kaneka Corp. (CHEM) .............................. 5,000 47
Kansai Electric Power Co., Inc.(UTIE)............. 22,800 387
KAO Corp. (HNBA) ................................. 16,000 465
Kawasaki Heavy Industry, Ltd. (DIOP).............. 46,000 49
Kawasaki Steel Corp. (STEE) ...................... 100,000 103
85
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Japan - Continued
Keihin Electric Express Railway Co.,
Ltd. (TRAN) .................................... 17,000 $ 68
Kinden Corp. (ENGI) .............................. 12,000 69
Kinki Nippon Railway (TRAN) ...................... 35,000 146
Kirin Brewery Co. (FOOD) ......................... 21,000 188
Kokuyo Co. (COMM) ................................ 6,000 89
Komatsu, Ltd. (MACH) ............................. 30,000 133
Komori Corp. (MACH) .............................. 4,000 67
Konami Co., Ltd. (COMP) .......................... 3,700 277
Konica Corp. (LEIS) .............................. 17,000 139
Kubota Corp. (MACH) .............................. 48,000 146
Kuraray Co., Ltd. (APPA) ......................... 10,000 93
Kurita Water Industries, Ltd. (POLL).............. 5,000 65
Kyocera Corp. (ETRN) ............................. 5,200 567
Kyowa Hakko Kogyo Co., LTD.
(HEAL) ......................................... 9,000 62
Makita Corp. (CNSU) .............................. 8,000 56
Marubeni Corp. (DIOP) ............................ 31,000 73
Marui Co., Ltd. (RETS) ........................... 13,000 196
Matsushita Electric Industrial Co.
(ETRN) ......................................... 53,000 1,266
Minebea Co., Ltd. (ETRN) ......................... 4,000 37
Mitsubishi Chemical Corp. (CHEM) ................. 61,000 161
Mitsubishi Corp. (DIOP) .......................... 44,000 324
Mitsubishi Electric Corp. (ETRN) ................. 52,000 320
Mitsubishi Estate Co., Ltd. (REAL)................ 37,000 395
Mitsubishi Heavy Industries, Ltd.
(MACH) ......................................... 90,000 392
Mitsubishi Logistcs Corp. (TRAN) ................. 7,000 61
Mitsubishi Materials Corp. (PMET) ................ 39,000 93
Mitsubishi Rayon Co., Ltd. (APPA) ................ 27,000 81
Mitsubishi Trust & Banking Corp.
(BANK) ......................................... 37,000 254
Mitsui & Co., Ltd. (DIOP) ........................ 31,000 195
Mitsui Fudosan Co., Ltd. (REAL) .................. 24,000 238
Mitsui Marine & Fire Insurance Co.,
Ltd. (INSU) .................................... 25,000 143
Mitsui Mining & Smelting Co., Ltd.
(META) ......................................... 17,000 131
Mitsukoshi, Ltd. (RETS) .......................... 14,000 57
Mizuho Holdings, Inc. * (FINL) ................... 160 991
Mori Seiki Co., Ltd. (MACH) ...................... 5,000 55
Murata Manufacturing Co., Ltd. (ETRN)............. 6,500 762
Mycal Corp. (RETS) ............................... 20,000 43
NAMCO, Ltd. (LEIS) ............................... 3,800 70
NEC Corp. (COMP) ................................. 43,000 786
NGK Insulators (PART) ............................ 11,000 146
NGK Spark Plug Co. (PART) ........................ 9,000 131
Nidec Corp. (MACH) ............................... 2,000 94
Nikon Corp. (LEIS) ............................... 11,000 118
Nintendo Corp., Ltd. (LEIS) ...................... 3,800 598
Nippon Comsys Corp. (ENGI) ....................... 6,000 108
Nippon Express Co., Ltd. (TRAN) .................. 31,000 187
Nippon Mitsubishi Oil Co., Ltd. (OILX)............ 27,000 130
Nippon Paper Industries Co. (PAPR)................ 25,000 149
Nippon Sheet Glass Co., Ltd. (DIOP)............... 14,000 171
Nippon Steel Co. (STEE) .......................... 133,000 220
Nippon Telegraph & Telephone Corp.
(UTIT) ......................................... 333 2,397
Nippon Yusen Kabushiki Kaisha
(TRAN) ......................................... 40,000 165
Nissan Motor Acceptance Corp. (FINL).............. 101,000 581
Nitto Denko Corp. (ETRN) ......................... 4,000 108
Nomura Securities Co., Ltd. (FUND)................ 53,000 953
NSK, Ltd. (META) ................................. 20,000 122
NTN Corp. (METP) ................................. 19,000 59
Obayashi Corp. (CONS) ............................ 22,000 95
Oji Paper Co. (PAPR) ............................. 27,000 139
Olympus Optical Co. (LEIS) ....................... 9,000 156
Omron Corp. (ETRN) ............................... 8,000 166
Onward Kashiyama Co., Ltd. (APPA) ................ 9,000 75
Oriental Land Co., Ltd. (LEIS) ................... 2,000 134
Orix Corp. (FINL) ................................ 2,400 241
Osaka Gas Co. (UTIG) ............................. 81,000 246
Pioneer Corp. (ETRN) ............................. 6,000 160
Promise Co., Ltd. (LEND) ......................... 2,600 184
Rohm Co., Ltd. (ETRN) ............................ 3,100 588
Sakura Bank, Ltd. (BANK) ......................... 112,000 676
Sankyo Co., Ltd. (HEAL) .......................... 13,000 312
Sanrio Co., Ltd. * (CNSU) ........................ 3,000 52
Sanyo Electric Co. (ETRN) ........................ 52,000 432
Secom Co. (COMM) ................................. 7,000 456
Sega Enterprises (CNSU) .......................... 4,300 42
Sekisui Chemical Co. (CHEM) ...................... 20,000 57
Sekisui House, Ltd. (CONS) ....................... 23,000 210
Sharp Corp. (ETRN) ............................... 29,000 350
Shimamura Co., Ltd. (RETS) ....................... 1,000 55
SHIMANO, Inc. (LEIS) ............................. 5,000 98
Shimizu Corp. (CONS) ............................. 29,000 86
Shin-Etsu Chemical Co. (CHEM) .................... 9,000 346
Shionogi & Co., Ltd. (HEAL) ...................... 14,000 285
Shiseido Co., Ltd. (CHEM) ........................ 14,000 156
Shizuoka Bank, Ltd. (BANK) ....................... 19,000 173
Showa Shell Sekiyu K.K. (OILX) ................... 21,000 88
Skylark Co., Ltd. (FOOD) ......................... 3,000 84
SMC Corp. (MACH) ................................. 2,000 257
Softbank Corp. (SOFT) ............................ 8,800 306
Sony Corp. (ETRN) ................................ 23,500 1,624
Sumitomo Bank (BANK) ............................. 86,000 882
Sumitomo Chemical Co. (CHEM) ..................... 48,000 238
Sumitomo Corp. (DIOP) ............................ 22,000 158
Sumitomo Electric Industries (TELE)............... 19,000 311
Sumitomo Heavy Industry (MACH) ................... 31,000 48
Sumitomo Marine & Fire Insurance Co.,
Ltd. (INSU) .................................... 24,000 155
Sumitomo Metal Industries (STEE) ................. 102,000 58
Sumitomo Metal Mining Co. (PMET) ................. 17,000 89
86
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Japan - Continued
Taisho Pharmaceutical Co., Ltd.(HEAL) 10,000 $ 270
Taiyo Yuden Co., Ltd. (ELEQ) ........... 4,000 134
Takara Shuzo Co., LTD. (FOOD) .......... 4,000 70
Takashimaya Co. (RETS) ................. 12,000 82
Takeda Chemical Industries (CHEM) ...... 24,000 1,419
Takefuji Corp. (LEND) .................. 5,000 315
Teijin, Ltd. (APPA) .................... 30,000 155
Teikoku Oil Co., Ltd. (OILX) ........... 19,000 79
Terumo Corp. (HEAL) .................... 4,000 87
The Bank of Fukuoka, Ltd. (BANK) ....... 8,000 34
The Chuo Mitsui Trust and Banking Co., .
Ltd. (BANK) .......................... 17,000 52
The Daiwa Bank, Ltd. (BANK) ............ 52,000 85
Tobu Railway Co., Ltd. (TRAN) .......... 36,000 106
Toho Co., Ltd. (MEDI) .................. 1,200 165
Tohoku Electric Power (UTIE) ........... 13,000 174
Tokai Bank Ltd. (BANK) ................. 53,000 230
Tokio Marine & Fire Insurance Co.
(INSU) ............................... 42,000 481
Tokyo Broadcasting (MEDI) .............. 4,000 118
Tokyo Electric Power (UTIE) ............ 35,700 885
Tokyo Electron, Ltd. (ETRN) ............ 4,700 258
Tokyo Gas Co. (OILX) ................... 27,000 80
Tokyu Corp. (TRAN) ..................... 26,000 140
Toppan Printing Co. (CNSU) ............. 20,000 174
Toray Industries, Inc. (APPA) .......... 33,000 124
Toshiba Corp. (ETRN) ................... 78,000 521
Tostem Corp. (CONS) .................... 8,000 99
Toto, Ltd. (APPL) ...................... 13,000 93
Toyo Seikan Kaisha, Ltd. (CONT) ........ 8,000 130
Toyota Motor Corp. (AUTO) .............. 95,700 3,056
Trans Cosmos, Inc. (SOFT) .............. 700 30
Uni-Charm Corp. (PAPR) ................. 3,000 152
UNY Co., Ltd. (RETS) ................... 10,000 107
Wacoal Corp. (APPA) .................... 11,000 92
WORLD CO., LTD. (APPA) ................. 1,400 53
Yamaha Corp. (LEIS) .................... 6,000 59
Yamanouchi Pharmaceutical Co., Ltd.
(HEAL) ............................... 10,000 432
Yamato Transport Co., Ltd. (TRAN) ...... 13,000 239
Yokogawa Electric (ETRN) ............... 11,000 93
--------
52,322
Malaysia - 0.6%
Berjaya Sports Toto Berhad (LEIS) ...... 47,000 57
Commerce Asset Holding Bhd (BANK) ...... 40,000 86
Gamuda Berhad (CONS) ................... 52,000 51
IJM Corporation Berhad (CONS) .......... 77,000 54
Magnum Corp. Berhad (LEIS) ............. 158,000 61
Malayan Banking Berhad (BANK) .......... 48,000 170
Malaysia International Shipping Berhad
(TRAN) ............................... 61,000 100
Public Bank Berhad (FINL) .............. 58,000 45
Resorts World Berhad (LEIS) ............ 35,000 56
RHB Capital Berhad (BANK) .............. 63,000 40
Sime Darby Berhad (FINL) ............... 68,000 85
Telekom Malaysia Berhad (TELS) ......... 60,000 178
Tenaga Nasional Berhad (UTIE) .......... 61,000 186
YTL Corp., Berhad (DIOP) ............... 65,000 84
--------
1,253
Mexico - 1.0%
Cemex SA de CV - CPO * (CONS) .......... 34,000 123
Cifra SA de CV - Ser. V (RETS) ......... 96,000 191
Fomento Economico Mexicano SA de
CV (FOOD) ............................ 20,000 60
Grupo Carso SA de CV - Ser. A1(DIOP) 24,000 59
Grupo Financiero Banamex Accival, SA
de CV (FINL) ......................... 105,000 173
Grupo Financiero Bancomer SA de CV -
Cl. O (FINL) ......................... 157,000 87
Grupo Modelo SA de CV - Ser. C
(FOOD) ............................... 62,000 165
Grupo Televisa SA * (MEDI) ............. 60,000 135
Kimberly-Clark de Mexico SA de CV
(PAPR) ............................... 47,000 130
Nuevo Grupo Mexico * (META) ............ 18,000 54
Telephonos de Mexico SA - Ser. L
(UTIT) ............................... 326,000 732
Wal-Mart de Mexico SA de CV - Ser. C
(RETS) ............................... 25,000 46
--------
1,955
Netherlands - 2.8%
ABN Amro Holding NV (BANK) ............. 18,400 419
Aegon NV (INSU) ........................ 14,500 600
Akzo Nobel NV (CHEM) ................... 3,850 207
ASM Lithography Holding NV (COMP) ...... 5,900 134
Elsevier NV (MEDP) ..................... 10,500 154
Heineken NV (FOOD) ..................... 4,375 265
ING Groep NV (BANK) .................... 9,800 783
Koninklije KPN NV (TELS) ............... 11,420 131
Koninklijke (Royal) Philips Electronics
NV (ETRN) ............................ 13,656 500
Koninklijke Ahold NV (RETF) ............ 7,000 226
Royal Dutch Petroleum Co. (OILE) ....... 22,650 1,388
TNT Post Group NV (TRAN) ............... 5,610 136
Unilever NV - CVA (CNSU) ............... 5,819 368
Wolters Kluwer NV - CVA (MEDP) ......... 4,400 120
--------
5,431
New Zealand - 0.3%
Carter Holt Harvey, Ltd. (PAPR) ........ 75,200 55
Contact Energy Limited (UTIE) .......... 62,600 73
87
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
New Zealand - Continued
Fisher & Paykel Industries Limited
(APPL) ......................... 23,000 $ 81
Fletcher Challenge Building
(CONS) ......................... 73,900 64
Telecom Corp. of New Zealand, Ltd.
(TELS) ......................... 111,100 237
The Warehouse Group Limited
(RETS) ......................... 29,000 77
--------
587
Norway - 1.1%
Bergesen d.y. ASA - Cl. A (TRAN) . 4,300 68
Den Norske Bank (BANK) ........... 43,960 238
Elkem ASA (META) ................. 4,400 70
Kvaerner plc (CONS) .............. 7,600 54
Leif Hoegh & Co. ASA (TRAN) ...... 8,340 70
Merkantildata ASA (SOFT) ......... 9,800 38
Norsk Hydro ASA (DIOP) ........... 11,140 472
Norske Skogsindustrier ASA - Cl. A
(PAPR) ......................... 3,800 160
Orkla ASA (DIOP) ................. 23,420 463
Petroleum Geo-Services ASA
(OILE) ......................... 6,240 82
SMEDVIG (OILS) ................... 7,000 67
Smedvig ASA - B Shares (OILS) .... 7,600 61
Storebrand ASA (INSU) ............ 16,140 115
Tomra Systems ASA (POLL) ......... 11,200 218
--------
2,176
Philippines - 0.1%
Ayala Land, Inc. (READ) .......... 36,460 4
Metropolitan Bank & Trust Co.
(BANK) ......................... 13,090 48
Petron Corp. (OILS) .............. 468,400 11
Philippine Long Distance Telephone
Co. (UTIT) ..................... 3,200 56
SM Prime Holdings, Inc. (READ) ... 545,000 63
--------
182
Portugal - 0.6%
Banco Comercial Portgues, SA
(BANK) ......................... 33,000 175
BPI-SGPS, SA - Registered Shares
(FUND) ......................... 32,490 102
Brisa-Auto Estradas de Portugal,
SA (CONS) ...................... 8,375 75
Electricidade de Portugal, SA
(UTIE) ......................... 67,500 223
Jeronimo Martins, SGPS, SA
(RETF) ......................... 3,600 37
Portugal Telecom, SA (TELS) ...... 46,000 421
Sonae, SGPS, SA (RETS) ........... 87,600 98
--------
1,131
Singapore - 0.5%
Chartered Semiconductor
Manufacturing * (ETRN) ......... 12,000 33
City Developments, Ltd. (READ) ... 29,000 135
Cycle & Carriage, Ltd. (AUTO) .... 14,000 27
DBS Group Holdings, Ltd. (BANK) .. 17,000 192
Oversea-Chinese Banking
Corporation Limited (BANK) ..... 16,000 119
Singapore Airlines (TRAN) ........ 12,000 119
Singapore Telecommunications, Ltd.
(TELS) ......................... 114,000 177
United Overseas Bank, Ltd.
(BANK) ......................... 13,448 101
--------
903
South Africa - 1.1%
ABSA Group, Ltd. (BANK) .......... 24,600 93
Anglo American Platinum Corp.,
Ltd. (PMET) .................... 5,400 252
Barlow, Ltd. (DIOP) .............. 11,700 74
De Beers Centenary AG (UTIE) ..... 9,100 241
Dimension Data Holdings plc
(SOFT) ......................... 28,883 196
FirstRand, Ltd. (FINL) ........... 164,400 182
Foschini, Ltd. * (RETS) .......... 37,100 32
Impala Platinum Holdings, Ltd.
(META) ......................... 2,600 132
Imperial Holdings, Ltd. (DIOP) ... 9,952 79
Investec Group, Ltd. (FUND) ...... 2,300 77
Liberty Life Association of
Africa, Ltd. (INSU) ............ 12,400 111
M-Cell, Ltd. (TELS) .............. 40,200 134
Nampak, Ltd. (CONT) .............. 25,500 37
Nedcor, Ltd. (BANK) .............. 6,600 149
Rembrandt Group, Ltd. (DIOP) ..... 15,300 41
Remgro, Ltd. * (DIOP) ............ 15,300 104
Sappi, Ltd. (READ) ............... 10,900 78
Sasol, Ltd. (OILX) ............... 12,800 83
--------
2,095
South Korea - 0.8%
Cheil Jedang Corp. (FOOD) ........ 1,246 30
Hyundai Motor Co., Ltd. (AUTO) ... 6,490 62
Kookmin Bank (BANK) .............. 8,310 98
Korea Electric Power Corp.
(UTIE) ......................... 11,760 219
Korea Telecom Corp. * (TELS) ..... 920 49
LG Chemicals, Ltd. (CHEM) ........ 4,630 42
LG Electronics (ETRN) ............ 3,990 38
Pohang Iron & Steel Co., Ltd.
(STEE) ......................... 1,230 74
Samsung Corp. (ETRN) ............. 6,120 25
Samsung Display Devices Co.
(ETRN) ......................... 1,410 52
Samsung Electro-Mechanics Co.
(ETRN) ......................... 2,760 75
Samsung Electronics (ETRN) ....... 3,520 440
Samsung Fire & Marine Insurance
(INSU) ......................... 2,272 49
Shinhan Bank (BANK) .............. 7,310 60
SK Telecom Co., Ltd. (TELS) ...... 1,530 306
--------
1,619
88
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Spain - 3.6%
ACS, Actividades de Construccion y
Servicios, SA * (CONS) .......... 2,419 $ 57
Autopistas Concesionaria Espanola
SA (TRAN) ....................... 13,503 118
Banco Bilbao Vizcaya SA (BANK) .... 90,135 1,342
Banco Santander Central Hispano SA
(BANK) .......................... 118,400 1,267
Corporacion Financiera Alba SA
(FUND) .......................... 6,000 139
Endesa SA (UTIE) .................. 28,100 479
Fomento de Construcciones y
Contratas SA (CONS) ............. 4,600 87
Gas Natural SDG SA - E Shares
(UTIG)........................... 13,800 251
Grupo Dragados SA (CONS) .......... 8,400 91
Iberdrola SA (UTIE) ............... 27,500 345
Repsol SA (OILX) .................. 30,000 479
Sociedad General de Aguas de
Barcelona SA (FOOD) ............. 8,484 104
Sol Melia SA (LEIS) ............... 5,700 59
Tabacalera SA - Cl. A (FOOD) ...... 7,714 120
Telefonica SA (UTIT) .............. 101,745 1,681
TelePizza, SA * (RETF) ............ 7,559 18
Union Electrica Fenosa SA (UTIE) .. 12,200 224
Vallehermoso SA (READ) ............ 8,700 53
Zardoya Otis SA (MACH) ............ 9,752 86
--------
7,000
Sweden - 1.5%
Drott AB - B Shares (REAL) ........ 8,300 114
ForeningsSparbanken AB (BANK) ..... 8,700 133
Hennes & Mauritz AB - B Shares
(RETS) .......................... 10,300 159
NetCom Systems, Inc. - Cl. B
(TELS) .......................... 1,732 72
NORDIC BALTIC Holding (BANK) ...... 29,218 228
Nordic Baltic Holding AB (BANK) ... 20,910 158
SANDVIK AB (MACH) ................. 4,950 119
Securitas AB - B Shares (COMM) .... 8,250 153
Skand Enskilda Banken - Cl. A
(BANK) .......................... 10,200 112
Skandia Forsakrings AB (INSU) ..... 13,900 226
Skanska AB (CONS) ................. 3,100 128
Svenska Cellulosa AB - Cl. B
(PAPR) .......................... 4,500 96
Svenska Handelsbanken, Inc. -
A Shares (BANK) ................. 6,350 109
Telefonaktiebolaget LM Ericsson
AB * (TELS) ..................... 82,050 935
Telia AB * (TELS) ................. 17,050 88
Volvo AB (AUTO) ................... 5,750 95
--------
2,925
Switzerland - 2.0%
ABB, Ltd. * (ENGI) ................ 2,168 231
Adecco SA - Reg. (COMM) ........... 60 38
Credit Suisse Group - Reg. (BANK) . 1,970 374
Givaudan * (HNBA) ................. 55 15
Nestle SA (FOOD) .................. 260 606
Novartis AG - Reg. (HEAL) ......... 380 672
Roche Holding AG (HEAL) ........... 55 582
Schweizerische Rueckversicherungs-
Gesellschaft (INSU) ............. 110 264
Swisscom AG - Reg. (UTIT) ......... 400 104
Syngenta AG * (CHEM) .............. 547 29
UBS AG (BANK) ..................... 3,226 526
Zurich Finance (FINL) ............. 633 382
--------
3,823
Thailand - 0.1%
ABN Amro Asia Secuities Public Co.,
Ltd. (FINL) ..................... 23,000 13
Advanced Info Service Public Co.,
Ltd. (TELS) ..................... 7,700 74
PTT Exploration & Production Public
Co., Ltd. (OILX) ................ 22,200 52
Siam Cement Public Co., Ltd. (CONS) 4,000 38
TelecomAsia Corp. Public Co.,
Ltd. * (UTIT) ................... 113,200 46
--------
223
Turkey - 0.3%
Arcelik AS (APPL) .............. 2,623,000 45
Kartonsan Karton Sanayi Ve
Ticaret AS (PAPR) ............ 1,083,000 56
Migros Turk TAS (RETF) ......... 387,000 50
Tupras-Turkiye Petrol
Rafinerileri A.S. (OILX) ..... 1,009,000 37
Turkiye Garanti Bankasi AS
(BANK) ....................... 12,113,000 68
Turkiye Is Bankasi (Isbank) -
Cl. C (BANK) ................. 11,517,060 189
Yapi ve Kredi Bankasi AS (BANK) 12,211,870 63
--------
508
United Kingdom - 10.1%
Abbey National First Capital BV
(BANK) ....................... 16,000 292
Airtours plc (LEIS) ............ 11,300 34
Amvescap plc (BANK) ............ 5,300 109
ARM Holdings plc * (ETRN) ...... 9,700 73
AstraZeneca Group plc (HEAL) ... 18,239 920
Barclay's plc (BANK) ........... 16,300 505
Barratt Developments plc (CONS) 10,100 45
Bass plc (FOOD) ................ 17,200 188
Berkeley Group (The) plc (READ) 6,100 69
BG Group plc (UTIG) ............ 37,866 148
BOC Group plc (CHEM) ........... 7,000 106
Boots Co. plc (RETD) ........... 13,800 126
BP Amoco plc (OILE) ............ 233,500 1,885
British Aerospace plc (AERO) ... 32,263 184
British Airport Authority plc
(TRAN) ....................... 11,700 108
British Airways plc (TRAN) ..... 11,300 66
89
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
United Kingdom - Continued
British American Tobacco plc * (FOOD)....... 26,500 $ 202
British Land Co. plc (REAL) ................ 11,000 78
British Sky Broadcast plc (MEDI) ........... 19,900 334
British Telecommunications plc (TELS)....... 68,700 588
Cadbury Schweppes plc (FOOD) ............... 26,600 184
Canary Wharf Finance PLC * (REIT) .......... 11,700 85
Carlton Communications plc (MEDI) .......... 16,300 149
Centrica plc * (UTIG) ...................... 58,900 228
CGU plc (INSU) ............................. 23,900 387
Diageo plc (FOOD) .......................... 30,200 339
Dixons Group plc * (TELE) .................. 23,200 78
EMI Group plc (LEIS) ....................... 12,400 102
GKN plc (AUTO) ............................. 9,200 97
GlaxoSmithKline plc * (HEAL) ............... 62,893 1,760
Granada Compass plc (LEIS) ................. 25,122 274
Halifax Group plc (LEND) ................... 24,700 245
Hanson plc (CONS) .......................... 8,990 62
Hays plc (DIOP) ............................ 14,400 83
Hilton Group plc (LEIS) .................... 27,700 87
HSBC Holdings plc (BANK) ................... 100,300 1,478
Imperial Chemical Industries plc
(CHEM) ................................... 7,100 59
Innogy Holdings * (UTIG) ................... 16,500 48
Invensys, plc (DIOP) ....................... 38,785 91
J Sainsbury plc (RETF) ..................... 24,100 143
Kingfisher plc (RETS) ...................... 18,500 138
Land Securities plc (REAL) ................. 8,400 106
Lattice Group * (ETRN) ..................... 37,866 85
Legal & General Group plc (INSU) ........... 62,800 173
Lloyds TSB Group plc (BANK) ................ 58,900 624
Logica plc (SOFT) .......................... 6,700 175
Marconi plc (TELE) ......................... 28,600 307
Marks & Spencer plc (RETS) ................. 39,600 110
Misys plc (COMP) ........................... 6,300 62
National Grid Group plc (UTIE) ............. 22,500 205
National Power plc (UTIE) .................. 16,500 62
Nycomed Amersham plc (HEAL) ................ 5,700 48
P&O Princess Cruises plc * (LEIS) .......... 12,900 55
Pearson plc (MEDP) ......................... 8,100 193
Peninsular & Oriental Steam Navigation
Co. (TRAN) ............................... 6,800 32
Prudential Corp. (INSU) .................... 22,500 362
Railtrack Group plc (TRAN) ................. 6,700 93
Rank Group plc (DIOP) ...................... 35,700 93
Reed International plc (MEDP) .............. 15,400 161
Rentokil Initial plc (DIOP) ................ 29,600 102
Reuters Group plc (BUSI) ................... 15,900 269
Rio Tinto plc - Reg. (DIOP) ................ 12,700 224
Royal Bank of Scotland Group (BANK) ........ 11,500 272
Schroders (BANK) ........................... 4,050 80
Scottish Power plc (UTIE) .................. 17,100 135
Slough Estates Finance plc * (READ) ........ 9,900 61
Tesco plc (FOOD) ........................... 76,800 313
The Great Universal Stores plc (RETS) ...... 15,500 122
The Sage Group plc (MEDI) .................. 22,100 101
Unilever plc (CNSU) ........................ 26,703 229
United Utilities plc (AGRI) ................ 10,400 103
Vodafone AirTouch plc (TELS) ............... 648,818 2,364
WPP Group plc * (COMM) ..................... 7,500 98
--------
19,596
United States - 0.0%
Great Eastern Shipping Co. - GDR *
(TRAN) .......................... 25,120 85
--------
TOTAL COMMON STOCK- 94.4% 184,040
PREFERRED STOCK
Australia - 0.2%
News Corp., Ltd. (MEDI) .................... 342
Brazil - 0.7%
Aracruz Celulose SA (TELS) ................. 108
Banco Bradesco SA (BANK) ................... 109
Banco Itau SA (BANK) ....................... 109
Bradespar SA (FINL) ........................ 108
Centrais Electricas Brasileires SA
(UTIE) ................................... 109
Compahnia de Bebidas das Americas
(FOOD) ................................... 109
Companhia Energetica de Minas Gerais -
CEMIG (UTIE) ............................. 108
Companhia Vale do Rio Doce (META) .......... 109
Embratel Participacoes SA (UTIT) ........... 108
Tele Centro Sul Participacoes SA
(UTIT) ................................... 108
Tele Norte Leste Participacoes SA
(UTIT) ................................... 109
Telesp Celular Participacoes SA (TELS) ..... 108
Telesp Participacoes SA (TELS) ............. 108
--------
1,410
Germany - 0.4%
Dyckerhoff AG (CONS) ....................... 263
SAP AG - Vorzug (SOFT) ..................... 264
Volkswagen AG (AUTO ........................ 264
--------
791
--------
TOTAL PREFERRED STOCK - 1.3% 2,543
90
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS
United Kingdom - 0.0%
British Aerospace plc - Bonds (AERO)
7.45% due 11/29/03................ $ 4 $ 6
---------
TOTAL PUBLICLY-TRADED
BONDS- 0.0% 6
WARRANTS
Mexico - 0.0%
Cemex SA de CV (CONS)
expires 12/12/02 (Cost $1)........ 2,000 0
United States - 1.0%
Morgan Stanley Capital Llc (FINL)
expires 04/07/07 (Cost $3,107).... 23,600 1,854
---------
TOTAL WARRANTS- 1.0% 1,854
RIGHTS
Brazil - 0.0%
Banco Bradesco SA (BANK)
expires 12/26/00 (Cost $0)........ 1,012,456 3
Bradespar SA (FINL)
expires 01/10/01 (Cost $0)........ 5,919,441 0
---------
3
Malaysia - 0.0%
Gamuda Berhad (CONS)
expires 12/11/00 (Cost $0)........ 13,000 0
Thailand - 0.0%
TelecomAsia (UTIT)
expires 04/03/00 (Cost $0)........ 35,747 0
---------
TOTAL RIGHTS- 0.0% 3
SHORT-TERM INVESTMENTS - 3.0%
Investment in joint trading account
(Note B)
6.695% due 01/02/01........... 5,587 5,587
U.S. Treasury Bill
5.88% due 03/15/01 #.......... 300 299
U.S. Treasury Bill
5.92% due 03/15/01 #.......... 50 49
--------- ---------
5,937 5,935
--------- ---------
TOTAL INVESTMENTS- 99.7% 194,384
Cash and Receivables, less payables- 0.3% 628
--------- ---------
NET ASSETS- 100.0% 195,012
========= =========
* Non-income producing security.
ADR-American Depository Receipt
GDR-Global Depository Receipt
# Securities, or a portion thereof, with an aggregate market value of $333 have
been segregated to collateralize financial futures contracts.
See notes to financial statements.
SUMMARY OF LONG-TERM SECURITIES BY INDUSTRY
Market % of
Industry Value Long-Term
Industry Abbreviation (000s) Investments
Bank ..................... BANK 27,848 14.8%
Insurance ................ INSU 13,220 7.0%
Telecommunication
Services ............... TELS 13,099 6.9%
Electronic Products &
Services ............... ETRN 11,246 6.0%
Diversified Operations ... DIOP 10,281 5.5%
Health Care Products ..... HEAL 10,093 5.4%
Telephone ................ UTIT 9,217 4.9%
Electric Power ........... UTIE 7,211 3.8%
Automobile ............... AUTO 7,069 3.7%
Food, Beverage & Tobacco . FOOD 6,979 3.7%
Chemical ................. CHEM 5,966 3.2%
Financial Services ....... FINL 5,357 2.8%
Transportation Services .. TRAN 5,113 2.7%
Retail -
Department Stores ...... RETS 3,854 2.0%
Construction ............. CONS 3,612 1.9%
Oil & Natural Gas
Exploration & Production . OILX 3,603 1.9%
Commercial Sevices ....... COMM 3,552 1.9%
Oil - Equipment &
Service................. OILE 3,356 1.8%
Leisure & Recreation ..... LEIS 3,279 1.7%
Computer Software &
Services ............... SOFT 2,766 1.5%
Brokerage & Investment
Management ............. FUND 2,428 1.3%
Telecommunication
Equipment .............. TELE 2,308 1.2%
Media - TV / Radio ....... MEDI 2,260 1.2%
Oil ...................... OILS 1,964 1.0%
Machinery ................ MACH 1,861 1.0%
Cosmetic & Personal Care . HNBA 1,727 0.9%
Retail - Food ............ RETF 1,682 0.9%
Electrical Equipment ..... ELEQ 1,468 0.8%
Computer Equipment ....... COMP 1,336 0.7%
Real Estate Operations ... REAL 1,308 0.7%
Paper & Forest Products .. PAPR 1,173 0.6%
Shoe & Apparel
Manufacturing .......... APPA 1,097 0.6%
Personal & Commercial
Lending ................ LEND 1,054 0.6%
Natural Gas Distribution . UTIG 1,050 0.6%
Consumer Miscellaneous ... CNSU 921 0.5%
Metals & Mining .......... META 920 0.5%
Media - Publishing ....... MEDP 751 0.4%
Real Estate Investment
Trust .................. REIT 724 0.4%
Real Estate Development .. READ 681 0.4%
Steel .................... STEE 646 0.3%
Engineering &
Construction ........... ENGI 631 0.3%
Auto & Truck Parts ....... PART 622 0.3%
Container ................ CONT 611 0.3%
Precious ................. PMET 563 0.3%
Metals/Gems/Stones
Household Appliances /
Furnishings .............. APPL 541 0.3%
Pollution Control ........ POLL 349 0.2%
Business Services ........ BUSI 269 0.1%
Aerospace & Defense ...... AERO 190 0.1%
Energy - Alternative
Source ................. ENER 135 0.1%
--------- ---------
$188,449 100.0%
========= =========
91
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Australia - 2.1%
Brambles Industries, Ltd. (DIOP) ...... 1,836 $ 43
Broken Hill Proprietary Co., Ltd.
(DIOP) ................................ 10,015 106
TABCORP Holdings, Ltd. (LEIS) ......... 13,628 83
Woolworth's, Ltd. (RETS) .............. 21,099 99
--------
331
Finland - 2.5%
Nokia Oyj (HEAL) ...................... 8,305 370
Sonera Oyj (TELS) ..................... 1,098 20
--------
390
France - 10.6%
Air Liquide (CHEM) .................... 825 123
Alcatel (TELE) ........................ 3,193 181
Alstom (MACH) ......................... 2,631 68
AXA SA (INSU) ......................... 1,158 168
Cap Gemini SA (COMM) .................. 300 48
Carrefour SA (RETF) ................... 624 39
France Telecom (TELS) ................. 1,288 111
Havas Advertising SA (BUSI) ........... 3,288 48
Lafarge SA (CONS) ..................... 1,426 120
LVMH (Louis Vuitton Moet Hennessy)
(FOOD) .............................. 758 50
Rhone-Poulenc SA (BANK) ............... 1,434 126
Suez Lyonnaise des Eaux (FOOD) ........ 488 89
Total Fina SA - Cl. B (OILX) .......... 1,407 209
Vivendi Environment (POLL) ............ 2,138 93
Vivendi Universal SA (DIOP) ........... 3,016 199
--------
1,672
Germany - 4.1%
Allianz AG - Reg. (INSU) .............. 377 141
Bayerische Motoren Werke AG (AUTO) .... 1,199 39
DaimlerChrysler AG (AUTO) ............. 636 27
Deutsche Bank AG (BANK) ............... 2,095 176
Deutsche Telekom AG (UTIT) ............ 2,808 85
Muenchener Rueckversicherungs-
Gesellschaft AG - Reg. (INSU) ....... 304 109
Siemens AG (DIOP) ..................... 566 74
--------
651
Hong Kong - 2.4%
Giordano International Ltd. (APPA) .... 44,000 20
Hang Seng Bank, Ltd. (BANK) ........... 10,100 136
Hutchison Whampoa, Ltd. (COMM) ........ 6,700 84
Li & Fung, Ltd. (COMM) ................ 36,000 65
Swire Pacific, Ltd. - Cl. A (DIOP) .... 10,000 72
--------
377
Ireland - 1.1%
Bank of Ireland (BANK) ................ 11,718 118
Elan Corp. plc - ADR * (HEAL) ......... 1,100 51
--------
169
Italy - 3.3%
Banca Nazionale del Lavoro (BANK) ..... 27,684 85
San Paolo-IMI SpA (BANK) .............. 10,300 166
Telecom Italia Mobile SpA (TELS) ...... 9,000 72
Telecom Italia SpA (TELS) ............. 9,983 110
UniCredito Italiano SpA (BANK) ........ 16,000 84
--------
517
Japan - 24.0%
ADERANS Co., Ltd. (HNBA) .............. 2,400 99
Advantest (ETRN) ...................... 400 37
Asahi Chemical Industry Co., Ltd.
(CHEM) ................................ 17,000 98
Asahi Glass Co., Ltd. (APPL) .......... 9,000 74
Bank of Tokyo-Mitsubishi (BANK) ....... 4,000 40
Canon, Inc. (COMM) .................... 4,000 140
Chiba Bank, Ltd. (BANK) ............... 13,000 51
Circle K Japan Co., Ltd. (RETF) ....... 2,400 84
Daiwa Securities Group, Inc. (FUND) ... 4,000 42
Fanuc, Ltd. (ELEQ) .................... 1,000 68
Fuji Photo Film (LEIS) ................ 3,000 126
Fujitsu, Ltd. (ELEQ) .................. 3,000 44
Honda Motor Co. (AUTO) ................ 2,000 75
KAO Corp. (HNBA) ...................... 6,000 174
Kirin Brewery Co. (FOOD) .............. 11,000 98
Minebea Co., Ltd. (ETRN) .............. 5,000 46
Mitsui Marine & Fire Insurance Co., Ltd.
(INSU) .............................. 14,000 80
Mizuho Holdings, Inc. * (FINL) ........ 19 118
Murata Manufacturing Co., Ltd. (ETRN) . 1,000 117
NEC Corp. (COMP) ...................... 3,000 55
NGK Insulators (PART) ................. 4,000 53
Nintendo Corp., Ltd. (LEIS) ........... 700 110
Nippon Telegraph & Telephone Corp.
(UTIT) .............................. 21 151
Nomura Securities Co., Ltd. (FUND) .... 4,000 72
Ricoh Co., Ltd. (ETRN) ................ 7,000 129
Rohm Co., Ltd. (ETRN) ................. 500 95
Sakura Bank, Ltd. (BANK) .............. 6,000 36
Sanwa Bank, Ltd. (BANK) ............... 5,000 35
Sanyo Electric Co. (ETRN) ............. 9,000 75
Secom Co. (COMM) ...................... 1,500 98
Sharp Corp. (ETRN) .................... 6,000 72
Shin-Etsu Chemical Co. (CHEM) ......... 2,000 77
Skylark Co., Ltd. (FOOD) .............. 3,000 84
SMC Corp. (MACH) ...................... 500 64
Sony Corp. (ETRN) ..................... 1,000 69
Sumitomo Corp. (DIOP) ................. 15,000 108
Takeda Chemical Industries (CHEM) ..... 2,000 118
Takefuji Corp. (LEND) ................. 1,900 120
Terumo Corp. (HEAL) ................... 2,000 44
Tokyo Electric Power (UTIE) ........... 5,500 136
Toppan Forms Co., Ltd. (COMM) ......... 4,400 66
Toyota Motor Corp. (AUTO) ............. 4,800 153
92
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Japan - Continued
Yamanouchi Pharmaceutical Co., Ltd.
(HEAL)............................... 3,000 $ 130
--------
3,761
Netherlands - 7.1%
ASM Lithography Holding NV (COMP)...... 4,004 91
Fortis (NL) NV (INSU).................. 2,315 75
ING Groep NV (BANK).................... 3,424 273
Koninklije KPN NV (TELS)............... 7,389 85
Koninklijke (Royal) Philips Electronics
NV (ETRN)............................ 4,527 166
Royal Dutch Petroleum Co. (OILE)....... 4,713 289
United Pan Europe (TELS)............... 5,005 51
VNU NV (MEDP).......................... 1,931 95
--------
1,125
Portugal - 0.6%
Electricidade de Portugal, SA (UTIE)... 26,971 89
Singapore - 1.6%
City Developments, Ltd. (READ)......... 6,000 28
DBS Group Holdings, Ltd. (BANK)........ 6,000 68
Singapore Press Holdings, Ltd. (MEDP).. 3,000 44
Singapore Technology Engineering, Ltd.
(ENGI)............................... 45,000 73
Singapore Telecommunications, Ltd.
(TELS)............................... 26,000 40
--------
253
Spain - 1.9%
Acerinox SA (STEE)..................... 2,695 82
Banco Santander Central Hispano SA
(BANK)............................... 4,120 44
Telefonica SA (UTIT)................... 10,175 168
--------
294
Sweden - 4.9%
Investor AB - B Shares (FUND).......... 7,799 117
Nordic Baltic Holding AB (BANK)........ 15,169 115
Securitas AB - B Shares (COMM)......... 6,675 124
Skandia Forsakrings AB (INSU).......... 10,884 177
Telefonaktiebolaget LM Ericsson AB *
(TELS)............................... 20,415 232
--------
765
Switzerland - 7.9%
ABB, Ltd. * (ENGI)..................... 978 104
Adecco SA - Reg. (COMM)................ 92 58
Nestle SA (FOOD)....................... 134 313
Novartis AG - Reg. (HEAL).............. 95 168
Roche Holding AG (HEAL)................ 22 224
Schweizerische Rueckversicherungs-
Gesellschaft (INSU).................. 59 141
UBS AG (BANK).......................... 1,007 164
Zurich Finance (FINL).................. 119 72
--------
1,244
United Kingdom - 18.7%
Amvescap plc (BANK).................... 2,908 60
AstraZeneca Group plc (HEAL)........... 1,392 70
BP Amoco plc (OILE).................... 30,507 246
British Aerospace plc (AERO)........... 7,766 44
British American Tobacco plc (FOOD).... 6,518 50
British Telecommunications plc (TELS).. 19,191 164
Cable & Wireless plc (TELS)............ 4,324 58
Diageo plc (FOOD)...................... 15,463 173
GKN plc (AUTO)......................... 765 8
GlaxoSmithKline plc * (HEAL)........... 15,882 449
HSBC Holdings plc (BANK)............... 13,550 200
Imperial Chemical Industries plc (CHEM) 6,542 54
Lloyds TSB Group plc (BANK)............ 4,338 46
Marconi plc (TELE)..................... 4,324 47
National Grid Group plc (UTIE)......... 6,463 59
P&O Princess Cruises plc * (LEIS)...... 23,650 100
Reuters Group plc (BUSI)............... 5,577 95
Royal Bank of Scotland Group (BANK).... 4,954 117
Tesco plc (FOOD)....................... 34,560 141
Unilever plc (CNSU).................... 28,527 244
Vodafone AirTouch plc (TELS)........... 139,652 513
--------
2,938
--------
TOTAL COMMON STOCK-................. 92.8% 14,576
PREFERRED STOCK - 0.8%
Germany - 0.8%
SAP AG - Vorzug)........................ 131
Par
Value
(000's)
SHORT-TERM INVESTMENTS - 5.1%
Investment in joint repurchase agreement
with Goldman Sachs & Co. dated
12/29/00, 6.481% due 01/02/01 (Secured
by various U.S. Treasury
obligations and U.S.
Government Agency Bonds) $ 800 800
------ ------
TOTAL INVESTMENTS- 98.7% 15,507
Cash and Receivables, less payables- 1.3% 209
------ ------
NET ASSETS- 100.0% 15,716
====== ======
* Non-income producing security.
ADR-American Depository Receipts
See notes to financial statements.
93
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
SUMMARY OF LONG-TERM SECURITIES BY INDUSTRY
Market % of
Industry Value Long-Term
Industry Abbreviation (000s) Investments
Bank ...................... BANK 2,140 14.6%
Health Care Products ...... HEAL 1,506 10.2%
Telecommunication
Services ................ TELS 1,458 9.9%
Food, Beverage & Tobacco .. FOOD 998 6.8%
Insurance ................. INSU 891 6.1%
Electronic Products &
Services ................ ETRN 807 5.5%
Commercial Sevices ........ COMM 683 4.6%
Diversified Operations .... DIOP 601 4.1%
Oil - Equipment & Service . OILE 535 3.6%
Chemical .................. CHEM 470 3.2%
Leisure & Recreation ...... LEIS 419 2.8%
Telephone ................. UTIT 404 2.7%
Automobile ................ AUTO 302 2.1%
Electric Power ............ UTIE 284 1.9%
Cosmetic & Personal Care .. HNBA 273 1.9%
Consumer Miscellaneous .... CNSU 245 1.7%
Brokerage & Investment
Management .............. FUND 230 1.6%
Telecommunication
Equipment ............... TELE 228 1.5%
Oil & Natural Gas
Exploration &
Production ............ OILX 209 1.4%
Financial Services ........ FINL 189 1.3%
Engineering &
Construction ............ ENGI 177 1.2%
Computer Equipment ........ COMP 146 1.0%
Business Services ......... BUSI 142 1.0%
Media - Publishing ........ MEDP 139 0.9%
Machinery ................. MACH 132 0.9%
Computer Software &
Services ................ SOFT 130 0.9%
Retail - Food ............. RETF 124 0.8%
Construction .............. CONS 120 0.8%
Personal & Commercial
Lending ................. LEND 120 0.8%
Electrical Equipment ...... ELEQ 112 0.8%
Retail - Department
Stores .................. RETS 99 0.7%
Pollution Control ......... POLL 93 0.6%
Steel ..................... STEE 82 0.6%
Household Appliances /
Furnishings ............. APPL 74 0.5%
Auto & Truck Parts ........ PART 53 0.4%
Aerospace & Defense ....... AERO 44 0.3%
Real Estate Development ... READ 28 0.2%
Shoe & Apparel
Manufacturing ........... APPA 20 0.1%
-------- --------
$ 14,707 100.0%
======== ========
94
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
SMALL CAP GROWTH FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Bank - 3.4%
Greater Bay Bancorp ........................... 61,600 $ 2,526
Investors Financial Services Corp. ............ 23,500 2,021
Southwest Bancorporation of Texas, Inc. * ..... 39,600 1,700
Sterling Bancshares, Inc. ..................... 81,900 1,618
--------
7,865
Brokerage & Investment Management - 1.2%
Affiliated Managers Group, Inc. * ............. 50,700 2,782
Business Services - 5.7%
Corporate Executive Board Co. * ............... 79,700 3,169
Forrester Research, Inc. * .................... 50,100 2,508
Heidrick & Struggles International, Inc. ...... 43,200 1,817
Management Network Group, Inc. * .............. 110,100 1,308
On Assignment, Inc. * ......................... 94,600 2,696
ProBusiness Services, Inc. * .................. 70,800 1,881
--------
13,379
Commercial Sevices - 3.8%
Corinthian Colleges, Inc. ..................... 58,000 2,200
Education Management Corp. * .................. 58,600 2,095
Plexus Corp. * ................................ 38,400 1,167
ProsoftTraining.com, Inc. * ................... 76,300 925
Quanta Services, Inc. * ....................... 33,749 1,086
Veritas DGC, Inc. * ........................... 44,100 1,425
--------
8,898
Computer Equipment - 2.7%
Cerner Corp. * ................................ 37,700 1,743
M-Systems Flash Disk Pioneers, Ltd. * ......... 92,700 1,292
PRI Automation, Inc. * ........................ 65,700 1,232
Quantum Corp. - Hard Disk Drive * ............. 70,000 560
Tech Data Corp. * ............................. 53,600 1,450
--------
6,277
Computer Software & Services - 6.4%
Advent Software, Inc. * ....................... 41,000 1,643
Aspen Technologies, Inc. * .................... 22,000 732
Avantgo, Inc. * ............................... 106,200 664
Avocent Corporation * ......................... 27,646 746
Broadbase Software, Inc. * .................... 45,200 283
Data Return Corp. * ........................... 133,400 500
Embarcadero Technologies, Inc. * .............. 39,800 1,791
Intranet Solutions, Inc. * .................... 30,500 1,555
Manugistics Group, Inc. * ..................... 34,400 1,961
National Instruments Corp. * .................. 25,350 1,231
Pivotal Corp. * ............................... 27,200 1,008
Secure Computing Corp. * ...................... 124,000 1,224
TeleCommunication Systems, Inc. ............... 60,200 203
WatchGuard Technologies, Inc. ................. 47,500 1,502
--------
15,043
Construction - 0.5%
Toll Brothers, Inc. * ......................... 31,300 1,279
Consumer Miscellaneous - 2.6%
DigitalThink, Inc. * .......................... 64,700 1,104
NetRatings, Inc. * ............................ 81,400 1,196
ScanSource, Inc. * ............................ 50,000 1,950
University of Phoenix Online * ................ 57,000 1,838
--------
6,088
Diversified Operations - 0.9%
CoorsTek, Inc. * .............................. 31,900 1,001
Varian, Inc. * ................................ 35,300 1,196
--------
2,197
Electric Power - 1.0%
Wilson Greatbatch Technologies, Inc. * ........ 81,800 2,311
Electrical Equipment - 0.2%
Nu Horizons Electronics Corp. * ............... 47,650 426
Electronic Products & Services - 10.3%
Aeroflex, Inc. * .............................. 77,000 2,220
Atmi, Inc. * .................................. 59,300 1,156
Brooks Automation, Inc. * ..................... 29,100 817
Caliper Technologies Corp. * .................. 14,500 681
Credence Systems Corp. * ...................... 51,200 1,178
Cytyc Corp. * ................................. 33,600 2,102
DDI, Corp. * .................................. 61,400 1,673
DuPont Photomasks, Inc. * ..................... 47,000 2,484
Elantec Semiconductor, Inc. * ................. 25,400 705
Electro Scientific Industries, Inc. * ......... 37,700 1,056
Exar, Corp. * ................................. 47,700 1,478
Kent Electronics Corp. * ...................... 50,200 828
Merix Corp. * ................................. 53,250 712
Microsemi Corp. ............................... 53,700 1,494
Nanometrics, Inc. * ........................... 53,400 738
Pixelworks, Inc. * ............................ 44,750 1,001
PLX Technology, Inc. * ........................ 105,400 876
Rudolph Technologies, Inc. * .................. 55,500 1,675
Semtech Corp. * ............................... 58,800 1,297
--------
24,171
Financial Services - 1.3%
Actrade Financial Technologies, Ltd. * ........ 67,500 1,489
Advest Group, Inc. ............................ 30,300 1,078
Medallion Financial Corp. ..................... 36,600 535
--------
3,102
Food, Beverage & Tobacco - 0.6%
Performance Food Group Co. .................... 25,700 1,318
Health Care Products - 12.3%
Alexion Pharmaceuticals, Inc. * ............... 24,800 1,610
Alkermes, Inc. * .............................. 51,600 1,619
Alpharma, Inc. - Cl. A ........................ 44,800 1,966
Aurora Biosciences Corp. * .................... 40,100 1,261
Cell Therapeutics, Inc. * ..................... 31,000 1,397
COR Therapeutics, Inc. * ...................... 47,500 1,671
Corvas International, Inc. * .................. 89,500 1,287
95
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
SMALL CAP GROWTH FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Health Care Products - Continued
CV Therapeutics, Inc. * ....................... 31,900 $ 2,257
Exelixis, Inc. * .............................. 67,400 986
Inhale Therapeutic Systems, Inc. * ............ 47,000 2,374
Inspire Pharmaceuticals, Inc. ................. 52,600 1,371
Interpore International, Inc. * ............... 6,200 24
Invitrogen Corp. * ............................ 25,100 2,168
NPS Pharmaceuticals, Inc. * ................... 57,000 2,736
Renal Care Group, Inc. * ...................... 77,500 2,125
Techne Corp. * ................................ 39,000 1,406
Titan Pharmeceuticals, Inc. * ................. 43,000 1,521
Virologic, Inc. * ............................. 131,500 1,200
--------
28,979
Health Care Services - 10.1%
Accredo Health, Inc. .......................... 52,600 2,640
AmeriSource Health Corp. - Cl. A * ............ 60,200 3,040
Arena Pharmaceuticals, Inc. ................... 3,200 50
Bindley Western Industries, Inc. .............. 77,200 3,209
Genome Therapeutics Corp. * ................... 5,400 38
GENOMICA Corp. ................................ 22,400 118
IDX Systems Corp. ............................. 65,500 1,638
LifePoint Hospitals, Inc. * ................... 62,600 3,138
Lincare Holdings, Inc. * ...................... 38,400 2,191
Physiometrix, Inc. ............................ 74,800 1,192
Province Healthcare Co. * ..................... 78,100 3,075
Transgenomic, Inc. ............................ 67,650 710
Vascular Solutions, Inc. ...................... 82,500 608
Visible Genetics, Inc. * ...................... 54,600 2,061
--------
23,708
Insurance - 2.7%
Fidelity National Financial, Inc. ............. 77,600 2,866
HCC Insurance Holdings, Inc. .................. 71,600 1,929
Philadelphia Consolidated Holding Corp. * ..... 15,900 491
Renaissancere Holdings, Ltd. .................. 14,000 1,096
--------
6,382
Leisure & Recreation - 0.2%
Six Flags, Inc. ............................... 20,800 358
Media - Publishing - 2.0%
Houghton Mifflin Co. .......................... 44,200 2,050
Radio One, Inc. - Cl. D * ..................... 61,200 673
Scholastic Corp. * ............................ 22,500 1,994
--------
4,717
Media - TV / Radio - 3.0%
Entercom Communications Corp. * ............... 23,200 799
Getty Images, Inc. ............................ 68,600 2,195
Pegasus Communications Corp. * ................ 17,200 443
Radio One, Inc. * ............................. 49,900 533
Regent Communications, Inc. * ................. 190,600 1,132
Sinclair Broadcast Group, Inc. ................ 113,800 1,142
Westwood One, Inc. * .......................... 40,700 786
--------
7,030
Oil & Natural Gas Exploration & Production - 4.7%
Newfield Exploration Co. * .................... 60,600 2,874
Patterson Energy, Inc. * ...................... 70,500 2,626
Pride International, Inc. * ................... 105,700 2,603
Spinnaker Exploration Co. * ................... 5,100 217
Stone Energy Corp. * .......................... 41,300 2,666
--------
10,986
Oil - Equipment & Service - 4.6%
Dril Quip, Inc. * ............................. 31,300 1,070
Hanover Compressor Co. * ...................... 57,700 2,571
Hydril Co. * .................................. 72,000 1,265
Marine Drilling Companies, Inc. * ............. 96,700 2,587
Natco Group, Inc. - Cl. A ..................... 74,600 615
Universal Compression Holdings * .............. 74,200 2,796
--------
10,904
Personal & Commercial Lending - 0.8%
Metris Cos., Inc. ............................. 67,400 1,774
Real Estate Development - 0.5%
Standard Pacific Corp. ........................ 49,600 1,159
Retail - Department Stores - 3.2%
99 Cents Only Stores * ........................ 58,799 1,610
Cost Plus, Inc. * ............................. 69,050 2,028
Insight Enterprises, Inc. * ................... 73,050 1,310
The Gymboree Corporation * .................... 69,600 966
Too, Inc. * ................................... 78,900 986
Tweeter Home Entertainment Group, Inc. ........ 57,100 696
--------
7,596
Retail - Drug Stores - 0.6%
Duane Reade, Inc. * ........................... 43,400 1,326
Retail - Food - 2.9%
Applebee's International, Inc. ................ 49,300 1,550
P.F. Chang's China Bistro, Inc. * ............. 32,400 1,018
RARE Hospitality International, Inc. * ........ 82,600 1,843
Whole Foods Market, Inc. * .................... 40,000 2,445
--------
6,856
Shoe & Apparel Manufacturing - 0.8%
Columbia Sportswear Co. * ..................... 40,000 1,990
Steel - 1.1%
Lone Star Technologies, Inc. * ................ 65,800 2,533
Telecommunication Equipment - 3.9%
Brightpoint, Inc. * ........................... 210,300 736
Novatel Wireless, Inc. ........................ 96,700 1,197
Powertel, Inc. ................................ 15,700 972
Powerwave Technologies, Inc. * ................ 23,300 1,363
Repeater Technologies, Inc. ................... 113,400 227
SBA Communications Corp. * .................... 60,000 2,464
Stratos Lightwave, Inc. * ..................... 66,200 1,129
WJ Communications, Inc. * ..................... 75,500 1,076
--------
9,164
96
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
SMALL CAP GROWTH FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Telecommunication Services - 1.9%
Airgate PCS, Inc. * ........................... 55,800 $ 1,981
Intermedia Communications, Inc. * ............. 101,600 730
Jupiter Media Metrix, Inc. * .................. 34,243 319
o2wireless Solutions, Inc. * .................. 14,200 132
Rural Cellular Corp. - Cl. A * ................ 27,800 824
Ubiquitel, Inc. * ............................. 62,500 344
Wink Communications, Inc. * ................... 18,900 113
--------
4,443
Transportation Services - 1.6%
Expeditors International of Washington,
Inc ......................................... 33,200 1,782
Forward Air Corp. * ........................... 50,400 1,881
--------
3,663
--------
TOTAL COMMON STOCK- 97.5% 228,704
Par
Value
(000's)
SHORT-TERM INVESTMENTS - 2.8%
Investment in joint repurchase agreement
with UBS Securities dated 12/29/00,
5.95% due 01/02/01 (Secured by various
U.S. Treasury obligations and U.S.
Government Agency Bonds) $ 6,544 6,544
-------- --------
TOTAL INVESTMENTS- 100.3% 235,248
Cash and Receivables, less payables- (0.3)% (706)
-------- --------
NET ASSETS- 100.0% 234,542
======== ========
* Non-income producing security.
See notes to financial statements.
97
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
GLOBAL BALANCED FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Australia - 1.5%
Australia & New Zealand Banking Group, Ltd.
(FINL) ...................................... 5,000 $ 40
Broken Hill Proprietary Co., Ltd. (DIOP) ...... 9,300 98
CSL Limited (HEAL) ............................ 6,900 150
National Australia Bank, Ltd. (BANK) .......... 2,100 34
QBE Insurance Group, Ltd. (INSU) .............. 7,100 39
WMC, Ltd. (DIOP) .............................. 18,200 77
--------
438
Bermuda - 0.1%
PartnerRe, Ltd. (INSU) ........................ 700 43
Canada - 1.4%
Alcan Aluminum, Ltd. (META) ................... 1,700 58
Bombardier Inc. - Cl. B (DIOP) ................ 4,600 71
Investors Group, Inc. (FINL) .................. 6,400 111
Magna International, Inc. (AUTO) .............. 900 38
Nortel Networks Corp. (TELE) .................. 1,000 32
The Thomson Corp. (SOFT) ...................... 2,000 76
--------
386
Cayman Islands - 0.2%
Transocean Sedco Forex, Inc. (OILX) ........... 1,000 46
Finland - 1.7%
Nokia Oyj (HEAL) .............................. 9,500 424
Nokia Oyj - ADR (TELE) ........................ 1,500 65
--------
489
France - 1.9%
Bouygues SA (CONT) ............................ 1,800 82
Groupe Danone (FOOD) .......................... 600 90
Louis Vuitton Moet Hennessy (FOOD) ............ 1,300 86
Sanofi-Synthelabo SA (HEAL) ................... 2,100 140
Societe Television Francaise 1 (MEDI) ......... 1,800 97
ST Microelectronics (ETRN) .................... 1,100 48
--------
543
Germany - 1.3%
DaimlerChrysler AG (AUTO) ..................... 3,400 141
Infineon Technologies AG (ETRN) ............... 3,200 119
Metro AG (RETS) ............................... 1,100 51
Siemens AG (DIOP) ............................. 500 65
--------
376
Hong Kong - 2.0%
Cheung Kong (Holdings), Ltd. (READ) ........... 7,000 89
China Telecom (Hong Kong), Ltd. (TELS) ........ 13,500 74
Hutchison Whampoa, Ltd. (COMM) ................ 5,000 62
Li & Fung, Ltd. (COMM) ........................ 48,000 87
Sun Hung Kai Properties, Ltd. (REIT) .......... 12,000 120
Swire Pacific, Ltd. - Cl. A (DIOP) ............ 18,500 133
--------
565
Italy - 0.9%
Assicurazioni Generali (INSU) ................. 1,500 59
ENI SpA (OILS) ................................ 18,600 119
Olivetti SpA (COMM) ........................... 30,100 72
--------
250
Japan - 7.4%
Advantest (ETRN) .............................. 1,100 103
DISCO Corp. (MACH) ............................ 600 33
Enplas Corp. (ETRN) ........................... 1,800 61
Hirose Electric Co., Ltd. (ETRN) .............. 400 39
JUSCO Co., Ltd. (RETS) ........................ 5,000 108
Matsumotokiyoshi Co., Ltd. (RETD) ............. 1,000 27
Mitsubishi Heavy Industries, Ltd. (MACH) ...... 19,000 83
Mitsui Fudosan Co., Ltd. (REAL) ............... 4,000 40
Mitsui Marine & Fire Insurance Co., Ltd.
(INSU) ...................................... 16,000 92
Murata Manufacturing Co., Ltd. (ETRN) ......... 900 106
NEC Corp. (COMP) .............................. 8,000 146
Nintendo Corp., Ltd. (LEIS) ................... 400 63
Nippon Television Network Corp. (MEDP) ........ 100 34
Nissan Motor Acceptance Corp. (FINL) .......... 25,000 144
NTT Mobile Communications Network, Inc.
(TELS) ...................................... 10 172
Rohm Co., Ltd. (ETRN) ......................... 600 114
Sakura Bank, Ltd. (BANK) ...................... 9,000 54
Sanwa Bank, Ltd. (BANK) ....................... 13,000 91
Shionogi & Co., Ltd. (HEAL) ................... 5,000 102
Sony Corp. (ETRN) ............................. 2,000 138
Suzuki Motor Corp. (AUTO) ..................... 3,000 32
Taiyo Yuden Co., Ltd. (ELEQ) .................. 2,000 67
Tokyo Seimitsu Co., Ltd. (ETRN) ............... 2,400 136
Toray Industries, Inc. (APPA) ................. 18,000 68
USHIO, Inc. (ELEQ) ............................ 3,000 49
--------
2,102
Mexico - 0.6%
Telefonos de Mexico SA - ADR (UTIT) ........... 4,100 185
Netherlands - 1.9%
Aegon NV (INSU) ............................... 4,400 182
ASM Lithography Holding NV (COMP) ............. 4,200 95
Heineken NV (FOOD) ............................ 1,500 91
ING Groep NV (BANK) ........................... 1,100 88
Koninklijke (Royal) Philips Electronics NV
(ETRN) ...................................... 1,200 44
United Pan Europe (TELS) ...................... 2,900 30
--------
530
Norway - 0.5%
Norsk Hydro ASA (DIOP) ........................ 3,300 140
Panama - 0.6%
Carnival Corp. (LEIS) ......................... 5,400 167
Singapore - 0.6%
DBS Group Holdings, Ltd. (BANK) ............... 7,000 79
98
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
GLOBAL BALANCED FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Singapore - Continued
Singapore Technology Engineering, Ltd.
(ENGI) ...................................... 53,000 $ 86
--------
165
South Korea - 0.7%
Samsung Electronics 144A (a) (ETRN) ........... 2,800 198
Soviet Union - 0.2%
LUKoil Holding - ADR (OILS) ................... 1,600 57
Spain - 0.6%
Banco Bilbao Vizcaya SA (BANK) ................ 6,900 103
Telefonica SA (UTIT) .......................... 5,000 82
--------
185
Sweden - 0.7%
ForeningsSparbanken AB (BANK) ................. 7,200 110
Telefonaktiebolaget LM Ericsson AB ............ 7,200 82
--------
192
Switzerland - 2.1%
Compagnie Financiere Richemont AG (RETS) ...... 50 134
Holderbank Financiere Glarus AG - Cl. B
(CONS) ...................................... 99 119
Nestle SA (FOOD) .............................. 18 42
Novartis AG - Reg. (HEAL) ..................... 101 178
Schweizerische Rueckversicherungs-
Gesellschaft (INSU) ......................... 50 120
Syngenta AG (CHEM) ............................ 383 21
--------
614
Taiwan - 0.4%
Taiwan Semiconductor Manufacturing Co.,
Ltd. - ADR (ETRN) ........................... 6,700 116
United Kingdom - 6.3%
AstraZeneca Group plc (HEAL) .................. 12,200 616
Corus Group (STEE) ............................ 59,000 62
Dimension Data Holdings plc (SOFT) ............ 8,900 60
Dixons Group plc (TELE) ....................... 16,900 57
Halifax Group plc (LEND) ...................... 4,800 48
Lloyds TSB Group plc (BANK) ................... 14,800 157
Reuters Group plc (BUSI) ...................... 4,600 78
Shell Transport & Trading Co. plc (OILX) ...... 24,700 203
Unilever plc (CNSU) ........................... 9,400 80
Vodafone AirTouch plc (TELS) .................. 122,400 449
--------
1,810
United States - 25.9%
Advanced Micro Devices, Inc. (ETRN) ........... 6,700 93
AES Corp. (UTIE) .............................. 3,000 166
Agilent Technologies, Inc. (ETRN) ............. 2,000 109
Alcoa, Inc. (META) ............................ 3,100 104
Allstate Corp. (INSU) ......................... 2,300 100
America Online, Inc. (SOFT) ................... 1,700 59
American Greetings Corp. - Cl. A (COMM) ....... 5,200 49
Anheuser-Busch Cos., Inc. (FOOD) .............. 1,600 73
Applied Materials, Inc. (ETRN) ................ 3,700 141
AT&T Corp. - Liberty Media Group - Cl. A (MEDP) 12,000 163
Baker Hughes, Inc. (OILE) ..................... 2,400 100
Bank of America Corp. (BANK) .................. 6,000 275
Berkshire Hathaway Inc. - Cl. A (DIOP) ........ 2 142
Cablevision Systems Corp. - Cl. A (MEDI) ...... 2,500 212
Cadence Design Systems, Inc. (SOFT) ........... 2,100 58
Campbell Soup Co. (FOOD) ...................... 3,300 114
Charter Communications, Inc. - Cl. A (MEDI) ... 3,000 68
CheckFree Corp. (SOFT) ........................ 1,900 81
Circuit City Stores, Inc. (RETS) .............. 6,900 79
Cisco Systems, Inc. (ETRN) .................... 2,000 77
Compaq Computer Corp. (COMP) .................. 9,300 140
Dell Computer Corp. (COMP) .................... 3,200 56
Delphi Automotive Systems Corp. (AUTO) ........ 6,700 75
DoubleClick, Inc. (SOFT) ...................... 3,100 34
Ecolab, Inc. (COMM) ........................... 1,300 56
Exxon Mobil Corp. (OILX) ...................... 400 35
FleetBoston Financial Corp. (BANK) ............ 4,200 158
Fluor Corp. (UTIE) ............................ 2,700 89
General Mills, Inc. (FOOD) .................... 2,300 102
Genetech, Inc. (HEAL) ......................... 1,200 98
H.J. Heinz Co. (FOOD) ......................... 1,300 62
Hewlett-Packard Co. (COMP) .................... 2,500 79
Household International, Inc. (FINL) .......... 3,800 209
Illinois Tool Works, Inc. (DIOP) .............. 4,800 286
IMC Global, Inc. (CHEM) ....................... 7,200 112
Intel Corp. (COMP) ............................ 2,100 63
International Business Machines Corp.
(COMP) ...................................... 900 77
International Paper Co. (PAPR) ................ 1,300 53
Intersil Holding Corp. (ETRN) ................. 1,700 39
Kellogg Co. (FOOD) ............................ 3,200 84
Kimberly-Clark Corp. (PAPR) ................... 1,700 120
KLA-Tencor Corp. (ETRN) ....................... 2,900 98
Limited, Inc. (RETS) .......................... 2,900 49
Lowe's Cos., Inc. (RETS) ...................... 3,300 147
Macromedia, Inc. (SOFT) ....................... 1,200 73
Maxim Integrated Products, Inc. (ETRN) ........ 1,500 72
Medtronic, Inc. (HEAL) ........................ 1,800 109
Motorola, Inc. (ETRN) ......................... 3,800 77
Nike, Inc. - Cl. B (APPA) ..................... 2,400 134
Novellus Systems, Inc. (ETRN) ................. 1,200 43
PepsiCo, Inc. (FOOD) .......................... 2,200 109
Pfizer, Inc. (HEAL) ........................... 5,000 230
PMC-Sierra, Inc. (ETRN) ....................... 800 63
Raytheon Co. - Cl. A (AERO) ................... 6,500 188
Sprint PCS (PCS Group) (TELS) ................. 2,500 51
Teradyne, Inc. (ETRN) ......................... 4,300 160
Texas Instruments, Inc. (ETRN) ................ 2,700 128
Time Warner, Inc. (MEDI) ...................... 2,000 104
TMP Worldwide, Inc. (COMM) .................... 600 33
99
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
GLOBAL BALANCED FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
United States - Continued
TyCom, Ltd. (TELE) ............................ 2,700 $ 60
UAL Corp. (TRAN) .............................. 2,700 105
United Parcel Service, Inc. - Cl. B (BUSI) .... 700 41
United Technologies Corp. (AERO) .............. 1,800 142
USA Education, Inc. (LEND) .................... 2,600 177
USA Networks, Inc. (MEDI) ..................... 4,500 87
Viacom, Inc. - Cl. B (MEDI) ................... 2,000 94
W.W. Grainger, Inc. (DIOP) .................... 2,300 84
Washington Mutual, Inc. (BANK) ................ 4,300 228
Weatherford International, Inc. (OILE) ........ 1,200 57
Williams Cos., Inc. (FOOD) .................... 2,700 108
WorldCom, Inc. (TELS) ......................... 2,100 30
--------
7,371
--------
TOTAL COMMON STOCK- 59.5% 16,968
Par
Value
(000's)
PUBLICLY-TRADED BONDS
Canada - 1.0%
Government of Canada (GOVF)
7.25% due 06/01/07 ............................ $ 405 297
Denmark - 0.6%
Kingdom of Denmark - Bullet Bond (GOVF)
8.0% due 03/15/06 ............................. 1,100 157
Finland - 0.9%
Republic of Finland - Bonds (GOVF)
5.75% due 02/23/11 ............................ 250 247
France - 1.1%
Government of France - Debs. (GOVF)
4.0% due 10/25/09 ............................. 370 321
Germany - 4.7%
Federal Republic of Germany - Bonds (GOVF)
5.25% due 01/04/08 ............................ 1,000 966
Treuhandanstalt (FORG)
7.375% due 12/02/02 ........................... 375 370
--------
1,336
Japan - 1.1%
International Bank of
Reconstruction &
Development - Debs. (BANK)
4.75% due 12/20/04 ............................ 30,000 303
Netherlands - 9.5%
Deutsche Telekom International Finance
(TELS)
6.625% due 07/06/10 ........................... 250 239
Netherlands Government - Bonds Ser. 1 & 2
(GOVF)
6.0% due 01/15/06 ............................. 2,500 2,486
--------
2,725
Spain - 1.7%
Kingdom of Spain - Notes (GOVF)
3.1% due 09/20/06 ............................. 50,000 488
Supra National - 3.4%
Asian Development Bank (BANK)
5.625% due 02/18/02 ........................... 40,000 371
Bank of Ireland (BANK)
6.45% due 02/10/10 ............................ 250 241
International-American Development Bank -
Bonds (BANK)
1.9% due 07/08/09 ............................. 40,000 364
--------
976
United Kingdom - 1.8%
U.K. Treasury (GOVF)
7.25% due 12/07/07 ............................ 300 504
United States - 10.7%
Amazon.Com, Inc. (RETS)
4.75% due 02/01/09 ............................ 127 48
Federal National Mortgage Assoc. - Sr. Notes
(GOVF)
2.125% due 10/09/07 ........................... 40,000 369
Federal National Mortgage Assoc. (GOVA)
5.25% due 01/15/09 ............................ 340 325
KFW International Finance (BANK)
1.0% due 12/20/04 ............................. 30,000 264
U.S. Treasury - Notes (GOVE)
5.75% due 08/15/03 ............................ 740 751
6.625% due 05/31/02 ........................... 489 496
U.S. Treasury - Bonds (GOVE)
8.0% due 11/15/21 ............................. 635 821
--------
3,074
--------
TOTAL PUBLICLY-TRADED BONDS- 36.5% 10,428
SHORT-TERM INVESTMENTS - 2.8%
Investment in joint trading account (Note B)
6.695% due 01/02/01 $ 800 800
-------- --------
TOTAL INVESTMENTS- 98.8% 28,196
Cash and Receivables, less payables- 1.2% 331
-------- --------
NET ASSETS- 100.0% 28,527
======== ========
ADR-American Depository Receipts
(a) Pursuant to Rule 144A under the Securities Act of 1993, these securities
may be resold in transactions exempt from registration, normally to
qualified institutional buyers. At December 31, 2000, securities aggregated
$198 or 0.7% of net assets of the Portfolio.
See notes to financial statements.
100
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
GLOBAL BALANCED FUND
SUMMARY OF LONG-TERM SECURITIES BY INDUSTRY
Market % of
Industry Value Long-Term
Industry Abbreviation (000s) Investments
Foreign Governmental ................. GOVF 5,835 21.3%
Bank ................................. BANK 2,920 10.7%
Electronic Products & Services ....... ETRN 2,321 8.5%
U.S. Governmental .................... GOVE 2,069 7.6%
Health Care Products ................. HEAL 2,046 7.5%
Telecommunication Services ........... TELS 1,127 4.1%
Diversified Operations ............... DIOP 1,096 4.0%
Food, Beverage & Tobacco ............. FOOD 739 2.7%
Media - TV / Radio ................... MEDI 663 2.4%
Insurance ............................ INSU 635 2.3%
Retail - Department Stores ........... RETS 618 2.3%
Computer Equipment ................... COMP 600 2.2%
Financial Services ................... FINL 504 1.8%
Computer Software & Services ......... SOFT 407 1.5%
Foreign .............................. FORG 370 1.4%
Commercial Sevices ................... COMM 360 1.3%
Aerospace & Defense .................. AERO 330 1.2%
U.S. Government Agencies ............. GOVA 325 1.2%
Automobile ........................... AUTO 286 1.1%
Oil & Natural Gas Exploration &
Production ........................ OILX 284 1.0%
Telephone ............................ UTIT 268 1.0%
Electric Power ....................... UTIE 255 0.9%
Leisure & Recreation ................. LEIS 229 0.8%
Personal & Commercial Lending ........ LEND 224 0.8%
Food, Beverage & Tobacco ............. FOOD 222 0.8%
Telecommunication Equipment .......... TELE 214 0.8%
Shoe & Apparel Manufacturing ......... APPA 202 0.7%
Media - Publishing ................... MEDP 197 0.7%
Oil .................................. OILS 176 0.7%
Paper & Forest Products .............. PAPR 173 0.6%
Metals & Mining ...................... META 162 0.6%
Oil - Equipment & Service ............ OILE 156 0.6%
Chemical ............................. CHEM 133 0.5%
Real Estate Investment Trust ......... REIT 120 0.4%
Business Services .................... BUSI 119 0.4%
Construction ......................... CONS 119 0.4%
Electrical Equipment ................. ELEQ 116 0.4%
Machinery ............................ MACH 115 0.4%
Transportation Services .............. TRAN 105 0.4%
Real Estate Development .............. READ 89 0.3%
Engineering & Construction ........... ENGI 85 0.3%
Container ............................ CONT 82 0.3%
Consumer Miscellaneous ............... CNSU 81 0.3%
Steel ................................ STEE 62 0.2%
Computer Equipment ................... COMP 56 0.2%
Real Estate Operations ............... REAL 40 0.2%
Computer Software & Services ......... SOFT 34 0.1%
Retail - Drug Stores ................. RETD 27 0.1%
------- ------
$27,396 100.0%
======= ======
101
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
MID CAP GROWTH FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Brokerage & Investment Management - 0.9%
E*TRADE Group, Inc. * ......................... 489,625 $ 3,611
Commercial Sevices - 9.7%
Apollo Group, Inc. - Cl. A * .................. 289,694 14,249
Lamar Advertising Co. * ....................... 280,820 10,838
Plexus Corp. * ................................ 127,490 3,875
TMP Worldwide, Inc. * ......................... 168,820 9,285
--------
38,247
Computer Equipment - 1.3%
VeriSign, Inc. * .............................. 66,430 4,928
Computer Software & Services - 1.3%
Exodus Communications, Inc. * ................. 248,285 4,966
Consumer Miscellaneous - 0.8%
University of Phoenix Online * ................ 100,000 3,225
Electronic Products & Services - 15.8%
Cree, Inc. * .................................. 500,610 17,787
Integrated Device Technology, Inc. * .......... 386,120 12,790
Intersil Holding Corp. * ...................... 361,680 8,296
SDL, Inc. * ................................... 22,010 3,262
Semtech Corp. * ............................... 271,890 5,998
Viasytsems Group, Inc. * ...................... 366,505 3,047
Vitesse Semiconductor Corp. * ................. 200,855 11,110
--------
62,290
Financial Services - 4.1%
Paychex, Inc. ................................. 336,013 16,339
Health Care Products - 19.3%
Abgenix, Inc. * ............................... 162,380 9,591
Alexion Pharmaceuticals, Inc. * ............... 79,925 5,190
Andrx Corp - Andrx Group * .................... 65,200 3,774
Biovail Corp. * ............................... 32,040 1,244
CuraGen Corp. * ............................... 112,785 3,080
Human Genome Sciences, Inc. * ................. 199,130 13,802
Maxygen, Inc. * ............................... 100,930 2,473
Medarex, Inc. * ............................... 267,655 10,907
Millennium Pharmaceuticals, Inc. * ............ 188,905 11,689
MiniMed, Inc. * ............................... 85,705 3,602
Sepracor, Inc. * .............................. 134,465 10,774
--------
76,126
Media - TV / Radio - 4.0%
Cox Radio, Inc. - Cl. A * ..................... 211,295 4,767
Entercom Communications Corp. * ............... 108,070 3,722
Hispanic Broadcasting Corp. * ................. 291,030 7,421
--------
15,910
Oil & Natural Gas Exploration & Production - 8.1%
Apache Corp. .................................. 58,810 4,121
Devon Energy Corp. * .......................... 66,430 4,050
EOG Resources, Inc. ........................... 432,825 23,670
--------
31,841
Oil - Equipment & Service - 4.0%
Barrett Resources Corp. * ..................... 18,020 1,024
Hanover Compressor Co. * ...................... 243,065 10,831
Universal Compression Holdings * .............. 108,420 4,086
--------
15,941
Telecommunication Equipment - 17.8%
ADC Telecommunications, Inc. * ................ 392,010 7,105
American Tower Corp. - Cl. A .................. 507,070 19,205
Avanex Corp. * ................................ 252,500 15,040
Crown Castle International Corp. * ............ 564,155 15,268
ONI Systems Corp. * ........................... 8,115 321
Powertel, Inc. ................................ 88,000 5,451
SBA Communications Corp. * .................... 79,520 3,265
TriQuint Semiconductor, Inc. * ................ 101,750 4,445
--------
70,100
Telecommunication Services - 5.4%
AT&T Canada, Inc. * ........................... 65,930 1,924
McLeodUSA, Inc. - Cl. A * ..................... 680,035 9,605
Microcell Telecommunications, Inc. * .......... 99,846 1,897
Western Wireless Corp. - Cl. A * .............. 196,045 7,683
--------
21,109
Telephone - 0.6%
Metromedia Fiber Network, Inc. - Cl. A * ...... 229,045 2,319
--------
TOTAL COMMON STOCK- 93.1% 366,952
Par
Value
(000's)
COMMERCIAL PAPER - 6.9%
Financial Services - 4.4%
CIT Group Holdings, Inc.
6.5% due 01/02/01 ............................. $ 17,000 16,997
U.S. Government Agencies - 2.5%
Federal Home Loan Bank Discount Note
6.38% due 02/02/01 ............................ 10,000 9,945
-------- --------
27,000 26,942
-------- --------
TOTAL INVESTMENTS- 100.0% 393,894
Cash and Receivables, less payables- 0.0% 94
-------- --------
NET ASSETS- 100.0% 393,988
======== ========
* Non-income producing security.
See notes to financial statements.
102
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
MID CAP BLEND FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Aerospace & Defense - 0.6%
General Dynamics Corp. ........................ 1,500 $ 117
Auto & Truck Parts - 1.8%
B.F. Goodrich Co. ............................. 2,700 98
Dana Corp. .................................... 4,400 67
Johnson Controls, Inc. ........................ 900 47
Lear Corp. .................................... 2,600 65
Visteon Corp. ................................. 9,500 109
--------
386
Bank - 4.6%
Comerica, Inc. ................................ 8,100 481
Golden West Financial Corp. ................... 5,100 344
SouthTrust Corp. .............................. 3,700 151
--------
976
Chemical - 2.6%
Air Products & Chemicals, Inc. ................ 4,700 193
Ashland, Inc. ................................. 1,400 50
Eastman Chemical Co. .......................... 2,100 102
Praxair, Inc. ................................. 3,500 155
Rohm & Haas Co. ............................... 1,500 55
--------
555
Commercial Sevices - 3.1%
Convergys Corp. ............................... 6,100 276
Lamar Advertising Co. ......................... 5,400 208
R.R. Donnelley & Sons Co. ..................... 1,800 49
Sybase, Inc. .................................. 4,100 81
WPP Group plc - ADR ........................... 900 57
--------
671
Computer Software & Services - 6.1%
Cadence Design Systems, Inc. .................. 7,800 215
DST Systems, Inc. ............................. 3,900 261
Fiserv, Inc. .................................. 3,600 171
Intuit, Inc. .................................. 4,900 193
NCR Corp. ..................................... 4,400 216
Network Associates, Inc. ...................... 8,100 34
SunGard Data Systems, Inc. .................... 4,400 207
--------
1,297
Consumer Miscellaneous - 3.2%
Avery Dennison Corp. .......................... 3,400 187
Black & Decker Corp. .......................... 6,300 247
Clorox Co. .................................... 2,700 96
Parker-Hannifin Corp. ......................... 2,700 119
Sherwin-Williams Co. .......................... 1,600 42
--------
691
Container - 0.1%
Sealed Air Corp. .............................. 900 27
Cosmetic & Personal Care - 0.8%
Avon Products, Inc. ........................... 3,400 163
Diversified Operations - 2.5%
Danaher Corp. ................................. 1,300 89
El Paso Energy Corp. .......................... 4,200 301
ITT Industries, Inc. .......................... 2,500 97
Reynolds & Reynolds Co. - Cl. A ............... 2,300 46
--------
533
Electric Power - 11.1%
Allegheny Energy, Inc. ........................ 4,500 217
Calpine Corp. ................................. 3,900 176
Constellation Energy Group .................... 4,300 194
DPL, Inc. ..................................... 5,200 173
DQE, Inc. ..................................... 6,300 206
Energy East Corp. ............................. 2,900 57
Exelon Corp. .................................. 4,600 323
Pinnacle West Capital Corp. ................... 3,700 176
Reliant Energy, Inc. .......................... 4,400 191
Southern Energy, Inc. ......................... 14,200 402
Teco Energy, Inc. ............................. 2,300 74
UtiliCorp United, Inc. ........................ 5,000 155
--------
2,344
Electrical Equipment - 0.3%
American Power Conversion ..................... 4,900 61
Electronic Products & Services - 10.2%
Atmel Corp. ................................... 25,700 299
Jabil Circuit, Inc. ........................... 6,700 170
Lam Research Corp. ............................ 9,500 138
Linear Technology Corp. ....................... 1,700 79
Maxim Integrated Products, Inc. ............... 1,100 52
Millipore Corp. ............................... 2,700 170
Novellus Systems, Inc. ........................ 7,500 269
Pitney Bowes, Inc. ............................ 4,500 149
Rockwell International Corp. .................. 1,800 86
Sanmina Corp. ................................. 2,000 153
Sawtek, Inc. .................................. 2,200 102
SCI Systems, Inc. ............................. 6,600 174
Tektronix, Inc. ............................... 4,600 155
Teradyne, Inc. ................................ 1,600 60
Vishay Intertechnology, Inc. .................. 7,700 116
--------
2,172
Financial Services - 2.1%
Stillwell Financial, Inc. ..................... 11,500 454
Food, Beverage & Tobacco - 2.5%
Archer-Daniels-Midland Co. .................... 11,600 174
Coca-Cola Enterprises, Inc. ................... 2,200 42
ConAgra, Inc. ................................. 6,700 174
Kellogg Co. ................................... 1,600 42
Ralston Purina Group .......................... 4,200 110
--------
542
Health Care Products - 9.2%
Allergan, Inc. ................................ 2,800 271
103
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
MID CAP BLEND FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Health Care Products - Continued
Boston Scientific Corp. ....................... 5,500 $ 75
Cephalon, Inc. ................................ 2,400 152
CV Therapeutics, Inc. ......................... 900 64
ENZON , Inc. .................................. 2,900 180
Forest Laboratories, Inc. ..................... 1,300 173
Genzyme Corp. (General Division) .............. 1,000 90
Invitrogen Corp. .............................. 1,600 138
King Pharmaceuticals, Inc. .................... 4,500 232
Laboratory Corporation of America Holdings .... 1,000 176
Waters Corp. .................................. 4,800 401
--------
1,952
Health Care Services - 4.1%
Biogen, Inc. .................................. 2,700 162
Idec Pharmaceuticals Corp. .................... 500 95
Lincare Holdings, Inc. ........................ 2,400 137
St. Jude Medical, Inc. ........................ 3,000 184
Universal Health Services, Inc. - Cl. B ....... 2,200 246
Wellpoint Health Networks, Inc. ............... 500 58
--------
882
Housing - 1.5%
Centex Corp. .................................. 2,900 109
Masco Corp. ................................... 7,800 200
--------
309
Insurance - 6.2%
Lincoln National Corp. ........................ 7,600 360
PartnerRe, Ltd. ............................... 2,200 134
St. Paul Cos., Inc. ........................... 7,700 418
Torchmark, Inc. ............................... 5,100 196
XL Capital, Ltd. - Cl. A ...................... 2,200 192
--------
1,300
Leisure & Recreation - 1.7%
Marriott International, Inc. - Cl. A .......... 3,300 140
SABRE Group Holdings, Inc. .................... 5,200 224
--------
364
Machinery - 1.3%
Deere & Co. ................................... 2,300 105
Ingersoll-Rand Co. ............................ 4,200 176
--------
281
Media - Publishing - 0.9%
Knight-Ridder, Inc. ........................... 2,100 120
New York Times Co. - Cl. A .................... 1,700 68
--------
188
Media - TV / Radio - 2.1%
Clear Channel Communications, Inc. ............ 1,700 82
Univision Communications, Inc. - Cl. A ........ 6,100 250
Westwood One, Inc. ............................ 6,200 120
--------
452
Metals & Mining - 0.4%
Alcan Aluminum, Ltd. .......................... 2,600 89
Oil - 0.5%
Conoco, Inc. - Cl. A .......................... 3,600 103
Oil & Natural Gas Exploration & Production - 7.3%
Amerada Hess Corp. ............................ 1,900 139
Anadarko Petroleum Corp. ...................... 2,500 178
Apache Corp. .................................. 3,100 217
Devon Energy Corp. ............................ 1,800 110
Kerr-McGee Corp. .............................. 1,100 74
Noble Drilling Corp. .......................... 8,100 352
Sunoco, Inc. .................................. 2,600 87
Transocean Sedco Forex, Inc. .................. 5,600 258
USX-Marathon Group ............................ 4,700 130
--------
1,545
Paper & Forest Products - 0.5%
Abitibi-Consolidated, Inc. .................... 5,100 47
Westvaco Corp. ................................ 2,100 61
--------
108
Retail - Department Stores - 2.8%
Family Dollar Stores, Inc. .................... 4,700 101
Limited, Inc. ................................. 5,000 85
RadioShack Corp. .............................. 5,300 227
Tiffany & Co. ................................. 5,500 174
--------
587
Retail - Drug Stores - 0.7%
TJX Cos., Inc. ................................ 5,300 147
Retail - Food - 0.4%
Brinker International, Inc. ................... 2,100 89
Shoe & Apparel Manufacturing - 0.2%
Intimate Brands, Inc. ......................... 3,300 49
Steel - 0.3%
Nucor Corp. ................................... 1,600 63
Telecommunication Equipment - 0.6%
Scientific-Atlanta, Inc. ...................... 4,000 130
Telecommunication Services - 1.4%
Broadwing, Inc. ............................... 6,800 155
EchoStar Communications Corp. - Cl. A ......... 6,600 150
--------
305
Telephone - 0.9%
CenturyTel, Inc. .............................. 2,100 75
Telephone and Data Systems, Inc. .............. 1,200 108
--------
183
Transportation Services - 2.9%
AMR Corp. ..................................... 2,400 94
Burlington Northern Santa Fe .................. 4,800 136
Canadian Pacific, Ltd. ........................ 3,100 89
104
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
MID CAP BLEND FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Transportation Services - Continued
Continental Airlines, Inc. - Cl. B ............ 800 $ 41
Northwest Airlines Corp. ...................... 2,700 81
Southwest Airlines Co. ........................ 5,100 171
--------
612
--------
TOTAL COMMON STOCK- 97.5% 20,727
Par
Value
(000's)
SHORT-TERM INVESTMENTS - 1.9%
Investment in joint trading
account (Note B)
6.695% due 01/02/01 ........................... $ 409 409
-------- --------
TOTAL INVESTMENTS- 99.4% 21,136
Cash and Receivables, less payables- 0.6% 123
-------- --------
NET ASSETS- 100.0% 21,259
ADR-American Depository Receipts
See notes to financial statements.
105
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
LARGE CAP VALUE FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Aerospace & Defense - 2.5%
Honeywell International, Inc. ................. 28,400 $ 1,344
Lockheed Martin Corp. ......................... 111,000 3,768
--------
5,112
Auto & Truck Parts - 0.6%
Dana Corp. .................................... 7,400 113
Genuine Parts Co. ............................. 45,400 1,189
--------
1,302
Automobile - 0.5%
Ford Motor Co. ................................ 43,500 1,020
Bank - 7.8%
Bank of America Corp. ......................... 37,200 1,706
Bank One Corp. ................................ 69,700 2,553
Firstar Corp. ................................. 43,700 1,016
FleetBoston Financial Corp. ................... 82,972 3,117
J.P. Morgan & Co., Inc. ....................... 17,900 2,962
Mercantile Bankshares Corp. ................... 20,900 903
National City Corp. ........................... 44,100 1,268
Wells Fargo & Co. ............................. 43,900 2,445
--------
15,970
Business Services - 0.8%
Dun & Bradstreet Corp. ........................ 15,700 406
H & R Block, Inc. ............................. 28,000 1,159
--------
1,565
Chemical - 3.3%
Dow Chemical Co. .............................. 40,800 1,494
E.I. du Pont de Nemours & Co. ................. 59,500 2,874
Great Lakes Chemical Corp. .................... 29,600 1,101
Hercules, Inc. ................................ 71,700 1,367
--------
6,836
Commercial Sevices - 0.9%
R.R. Donnelley & Sons Co. ..................... 41,700 1,126
The Dun & Bradstreet Corp. * .................. 31,400 807
--------
1,933
Computer Equipment - 1.7%
Compaq Computer Corp. ......................... 43,400 653
Hewlett-Packard Co. ........................... 58,000 1,831
Intel Corp. ................................... 28,400 854
Xerox Corp. ................................... 33,800 156
--------
3,494
Computer Software & Services - 1.1%
BMC Software, Inc. * .......................... 17,700 248
Microsoft Corp. ............................... 39,400 1,709
Unisys Corp. * ................................ 15,200 222
--------
2,179
Construction - 0.0%
Armstrong Holdings, Inc. ...................... 18,400 38
Consumer Miscellaneous - 1.7%
Black & Decker Corp. .......................... 17,700 695
Clorox Co. .................................... 5,000 177
Fortune Brands, Inc. .......................... 39,300 1,179
Stanley Works ................................. 47,300 1,475
--------
3,526
Cosmetic & Personal Care - 3.0%
Gillette Co. .................................. 76,800 2,774
International Flavors & Fragrances, Inc. ...... 46,200 939
Procter & Gamble Co. .......................... 30,100 2,361
--------
6,074
Diversified Operations - 3.6%
Cooper Industries, Inc. ....................... 13,000 597
Eaton Corp. ................................... 9,500 714
Illinois Tool Works, Inc. ..................... 19,400 1,156
Minnesota Mining & Manufacturing Co. .......... 29,400 3,543
Pall Corp. .................................... 62,500 1,332
--------
7,342
Electric Power - 4.6%
Duke Energy Co. ............................... 20,400 1,739
Exelon Corp. .................................. 36,375 2,554
Firstenergy Corp. ............................. 38,800 1,224
Niagara Mohawk Holdings, Inc. ................. 30,900 516
Reliant Energy, Inc. .......................... 27,100 1,174
Southern Co. .................................. 65,900 2,191
--------
9,398
Electronic Products & Services - 3.2%
Hubbell, Inc. - Cl. B ......................... 35,600 943
Motorola, Inc. ................................ 94,400 1,912
Rockwell International Corp. .................. 59,000 2,810
Texas Instruments, Inc. ....................... 18,400 872
--------
6,537
Financial Services - 3.9%
Citigroup, Inc. ............................... 51,566 2,633
Mellon Financial Corp. ........................ 108,400 5,332
--------
7,965
Food, Beverage & Tobacco - 8.7%
Brown-Forman Corp. - Cl. B .................... 20,000 1,330
Campbell Soup Co. ............................. 61,300 2,123
General Mills, Inc. ........................... 51,200 2,282
H.J. Heinz Co. ................................ 49,800 2,362
Hershey Foods Corp. ........................... 46,000 2,961
Kellogg Co. ................................... 33,900 890
McCormick & Co., Inc. ......................... 40,100 1,446
Philip Morris Cos., Inc. ...................... 66,200 2,913
UST, Inc. ..................................... 55,600 1,560
--------
17,867
Health Care Products - 4.6%
Abbott Laboratories ........................... 44,500 2,156
106
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
LARGE CAP VALUE FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Health Care Products - Continued
American Home Products Corp. .................. 63,500 $ 4,035
Becton, Dickinson & Co. ....................... 23,600 817
Bristol-Myers Squibb Co. ...................... 15,900 1,176
Pharmacia Corp. ............................... 20,875 1,273
--------
9,457
Insurance - 5.9%
American General Corp. ........................ 36,400 2,967
Aon Corp. ..................................... 32,600 1,116
Chubb Corp. ................................... 29,500 2,552
Lincoln National Corp. ........................ 31,800 1,504
Safeco Corp. .................................. 25,700 845
St. Paul Cos., Inc. ........................... 28,652 1,556
UnumProvident Corp. ........................... 60,200 1,618
--------
12,158
Leisure & Recreation - 2.9%
Eastman Kodak Co. ............................. 47,400 1,866
Hasbro, Inc. .................................. 88,400 939
Hilton Hotels Corp. ........................... 96,800 1,017
Starwood Hotels & Resorts Worldwide, Inc. ..... 61,900 2,182
--------
6,004
Media - Publishing - 1.8%
Dow Jones & Co., Inc. ......................... 18,200 1,031
Knight-Ridder, Inc. ........................... 35,700 2,030
Readers Digest Association, Inc. - Cl. A ...... 15,900 622
--------
3,683
Media - TV / Radio - 1.0%
The Walt Disney Co. ........................... 71,900 2,081
Metals & Mining - 0.5%
Phelps Dodge Corp. ............................ 17,100 954
Oil - 1.4%
Royal Dutch Petroleum Co. - NY Shares ......... 46,900 2,840
Oil & Natural Gas Exploration & Production - 9.4%
Amerada Hess Corp. ............................ 20,200 1,476
BP Amoco plc - ADR ............................ 77,232 3,697
Chevron Corp. ................................. 32,100 2,710
Exxon Mobil Corp. ............................. 51,067 4,440
Texaco, Inc. .................................. 49,200 3,057
Unocal Corp. .................................. 66,400 2,569
USX-Marathon Group ............................ 42,500 1,179
--------
19,128
Oil - Equipment & Service - 0.8%
Baker Hughes, Inc. ............................ 37,100 1,542
Paper & Forest Products - 3.1%
Georgia-Pacific Corp. ......................... 11,426 356
International Paper Co. ....................... 87,170 3,557
Kimberly-Clark Corp. .......................... 28,800 2,036
Mead Corp. .................................... 10,000 314
--------
6,263
Pollution Control - 1.4%
Waste Management, Inc. ........................ 101,290 2,811
Precious Metals/Gems/Stones - 0.2%
Newmont Mining Corp. .......................... 18,500 316
Real Estate Investment Trust - 0.6%
Simon Property Group, Inc. .................... 50,700 1,217
Real Estate Operations - 0.4%
Rouse Co. ..................................... 32,800 836
Retail - Department Stores - 1.8%
J.C. Penney Co., Inc. ......................... 12,800 139
May Department Stores Co. ..................... 57,650 1,888
Toys "R" Us, Inc. * ........................... 101,400 1,692
--------
3,719
Retail - Food - 0.8%
Albertson's, Inc. ............................. 33,900 898
McDonald's Corp. .............................. 22,900 779
--------
1,677
Telecommunication Equipment - 0.3%
Lucent Technologies, Inc. ..................... 46,900 633
Telecommunication Services - 1.7%
Verizon Communications ........................ 68,716 3,444
Telephone - 5.2%
Alltel Corp. .................................. 42,400 2,647
AT&T Corp. .................................... 70,700 1,224
BellSouth Corp. ............................... 40,300 1,650
SBC Communications, Inc. ...................... 73,355 3,503
Sprint Corp. .................................. 81,400 1,653
--------
10,677
Transportation Services - 2.0%
Norfolk Southern Corp. ........................ 72,800 969
Union Pacific Corp. ........................... 63,900 3,243
--------
4,212
U.S. Government Agencies - 1.8%
Federal National Mortgage Assoc ............... 41,400 3,592
--------
TOTAL COMMON STOCK- 95.5% 195,402
Par
Value
(000's)
SHORT-TERM INVESTMENTS
Automobile - 0.6%
BMW US Capital Corp.
6.45% due 01/02/01 ............................ $ 1,202 1,202
Commercial Sevices - 1.5%
Yale University
107
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
LARGE CAP VALUE FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
SHORT-TERM INVESTMENTS - Continued
Commercial Sevices - Continued
6.52% due 02/21/01 ............................ $ 3,000 $ 2,972
Electric Power - 1.5%
Wisconsin Energy Corp.
6.52% due 02/08/01 ............................ 3,000 2,979
Financial Services - 0.6%
KFW International Finance
6.5% due 02/08/01 ............................. 1,275 1,266
Telecommunication Services - 0.9%
Verizon Global Funding Corp.
6.5% due 02/23/01 ............................. 2,000 1,982
--------
TOTAL SHORT-TERM INVESTMENTS- 5.1% 10,401
------- --------
TOTAL INVESTMENTS- 100.6% 205,803
Cash and Receivables, less payables- (0.6)% (1,268)
------- --------
NET ASSETS- 100.0% 204,535
======= ========
* Non-income producing security.
See notes to financial statements.
108
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
LARGE CAP VALUE CORE FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Aerospace & Defense - 3.1%
Boeing Co. .................................... 2,100 $ 139
Honeywell International, Inc. ................. 1,700 80
Northrop Grumman Corp. ........................ 1,300 108
Raytheon Co. - Cl. B .......................... 700 22
United Technologies Corp. ..................... 2,700 212
--------
561
Auto & Truck Parts - 1.3%
B.F. Goodrich Co. ............................. 400 14
General Motors Corp. .......................... 3,000 153
General Motors Corp. - Cl. H .................. 1,200 28
Johnson Controls, Inc. ........................ 700 36
--------
231
Automobile - 0.5%
Delphi Automotive Systems Corp. ............... 2,100 23
Ford Motor Co. ................................ 2,971 70
--------
93
Bank - 7.7%
Bank of America Corp. ......................... 4,300 197
Bank of New York Co., Inc. .................... 1,300 72
Bank One Corp. ................................ 2,400 88
BB&T Corporation .............................. 300 11
City National Corp. ........................... 300 12
Comerica, Inc. ................................ 1,800 107
Fifth Third Bancorp ........................... 150 9
First Union Corp. ............................. 300 8
Firstar Corp. ................................. 900 21
FleetBoston Financial Corp. ................... 4,176 157
Golden West Financial Corp. ................... 1,600 108
J.P. Morgan & Co., Inc. ....................... 400 66
PNC Bank Corp. ................................ 1,300 95
Popular, Inc. ................................. 500 13
Silicon Valley Bancshares * ................... 700 24
SouthTrust Corp. .............................. 200 8
Suntrust Banks, Inc. .......................... 800 50
UnionBanCal Corp. ............................. 1,200 29
Washington Mutual, Inc. ....................... 500 27
Wells Fargo & Co. ............................. 5,300 295
--------
1,397
Brokerage & Investment Management - 2.5%
A.G. Edwards, Inc. ............................ 1,400 66
Merrill Lynch & Co., Inc. ..................... 2,400 164
Morgan Stanley, Dean Witter, Discover & Co. ... 2,900 230
--------
460
Business Services - 0.6%
Comdisco, Inc. ................................ 1,100 13
Internet Capital Group, Inc. * ................ 300 1
Manpower, Inc. ................................ 400 15
Robert Half International, Inc. ............... 1,400 37
United Parcel Service, Inc. - Cl. B * ......... 700 41
--------
107
Chemical - 2.0%
Air Products & Chemicals, Inc. ................ 1,700 70
Cabot Corp. ................................... 300 8
Cytec Industries, Inc. * ...................... 900 36
Dow Chemical Co. .............................. 3,600 132
E.I. du Pont de Nemours & Co. ................. 700 34
Praxair, Inc. ................................. 1,700 75
--------
355
Commercial Sevices - 0.2%
Quanta Services, Inc. * ....................... 500 16
TeleTech Holdings, Inc. * ..................... 700 13
--------
29
Computer Equipment - 0.9%
3Com Corp. * .................................. 700 6
Apple Computer, Inc. * ........................ 800 12
Compaq Computer Corp. ......................... 800 12
Hewlett-Packard Co. ........................... 2,400 76
International Business Machines Corp. ......... 400 34
Network Appliance, Inc. * ..................... 100 6
Tech Data Corp. * ............................. 400 11
VERITAS Software Corp. * ...................... 150 13
--------
170
Computer Software & Services - 1.4%
At Home Corp. - Ser. A ........................ 100 1
Computer Sciences Corp. * ..................... 300 18
Critical Path, Inc. * ......................... 100 3
DST Systems, Inc. * ........................... 700 47
Electronic Data Systems Corp. ................. 800 46
First Data Corp. .............................. 2,300 121
Intuit, Inc. * ................................ 100 4
SunGard Data Systems, Inc. .................... 400 19
--------
259
Construction - 0.1%
Dycom Industries, Inc. * ...................... 300 11
Lafarge Corp. ................................. 400 9
--------
20
Consumer Miscellaneous - 0.6%
Clorox Co. .................................... 400 14
Sherwin-Williams Co. .......................... 400 11
Unilever NV - NY Shares ....................... 1,200 75
--------
100
Container - 0.1%
Bemis Co., Inc. ............................... 300 10
Cosmetic & Personal Care - 1.8%
Alberto-Culver Co. - Cl. B .................... 300 13
Avon Products, Inc. ........................... 2,000 96
109
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
LARGE CAP VALUE CORE FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Cosmetic & Personal Care - Continued
Colgate-Palmolive Co. ......................... 500 $ 32
Estee Lauder Cos., Inc. - Cl. A ............... 600 26
Procter & Gamble Co. .......................... 2,100 165
--------
332
Diversified Operations - 1.8%
Cendant Corp. * ............................... 400 4
Corning, Inc. ................................. 500 26
General Electric Co. .......................... 2,000 96
ITT Industries, Inc. .......................... 400 16
Minnesota Mining & Manufacturing Co. .......... 1,200 145
Textron, Inc. ................................. 500 23
Tyco International, Ltd. ...................... 350 19
--------
329
Electric Power - 3.6%
Calpine Corp. * ............................... 600 27
Consolidated Edison, Inc. ..................... 200 8
Constellation Energy Group .................... 1,600 72
Dominion Resources, Inc. ...................... 221 15
Energy East Corp. ............................. 1,200 23
Entergy Corp. ................................. 3,400 144
Exelon Corp. .................................. 750 53
Firstenergy Corp. ............................. 400 13
FPL Group, Inc. ............................... 900 64
PG & E Corp. .................................. 2,500 50
PPL Corp. ..................................... 1,300 59
Public Services Enterprise Group, Inc. ........ 1,600 78
Reliant Energy, Inc. .......................... 300 13
Southern Co. .................................. 1,100 36
--------
655
Electrical Equipment - 1.2%
Emerson Electric Co. .......................... 800 63
Molex, Inc. ................................... 2,900 103
TXU Corp. ..................................... 1,100 49
--------
215
Electronic Products & Services - 0.7%
Advanced Micro Devices, Inc. * ................ 800 11
Arrow Electronics, Inc. * ..................... 700 20
Avnet, Inc. ................................... 600 13
AVX Corp. ..................................... 900 15
Integrated Device Technology, Inc. * .......... 200 7
Kemet Corp. * ................................. 700 10
Motorola, Inc. ................................ 600 12
National Semiconductor Corp. * ................ 600 12
Vishay Intertechnology, Inc. * ................ 2,100 32
--------
132
Energy - Alternative Source - 0.3%
Dynegy, Inc. - Cl.A ........................... 1,100 62
Financial Services - 6.0%
American Express Co. .......................... 1,100 60
Citigroup, Inc. ............................... 13,600 695
Household International, Inc. ................. 200 11
Jersey Puerto MORGAN CHASE + Co. .............. 2,600 118
Lehman Brothers Holdings, Inc. ................ 2,000 135
Mellon Financial Corp. ........................ 200 10
Providian Financial Corp. * ................... 1,200 69
--------
1,098
Food, Beverage & Tobacco - 5.4%
Adolph Coors Co. - Cl. B ...................... 300 24
Brown-Forman Corp. - Cl. B .................... 1,200 80
ConAgra, Inc. ................................. 2,000 52
IBP, Inc. ..................................... 1,600 43
Pepsi Bottling Group, Inc. .................... 2,900 116
PepsiCo, Inc. ................................. 3,200 158
Philip Morris Cos., Inc. ...................... 3,000 132
R.J. Reynolds Tobacco Holdings, Inc. * ........ 2,000 97
Ralston-Ralston Purina Group .................. 2,500 65
Starbucks Corp. * ............................. 400 18
Suiza Foods Corp. * ........................... 200 10
Sysco Corp. ................................... 3,400 102
Tricon Global Restaurants, Inc. * ............. 2,200 73
Tyson Foods, Inc. - Cl. A ..................... 800 10
--------
980
Health Care Products - 7.8%
Abbott Laboratories ........................... 3,800 184
Allergan, Inc. ................................ 600 58
Alpharma, Inc. - Cl. A ........................ 700 31
Baxter International, Inc. .................... 200 17
Bristol-Myers Squibb Co. ...................... 1,100 81
Cardinal Health, Inc. ......................... 800 80
Celgene Corp. * ............................... 200 6
Chiron Corp. * ................................ 200 9
Forest Laboratories, Inc. * ................... 300 40
Genetech, Inc. * .............................. 400 32
IVAX Corp. .................................... 700 27
Johnson & Johnson ............................. 3,500 368
Merck & Co., Inc. ............................. 3,600 337
Sepracor, Inc. * .............................. 200 16
UnitedHealth Group, Inc. ...................... 2,000 123
Waters Corp. * ................................ 200 17
--------
1,426
Health Care Services - 0.5%
AmeriSource Health Corp. - Cl. A * ............ 300 15
HCA-The Healthcare Corporation ................ 600 26
PacifiCare Health Systems, Inc. * ............. 300 5
Quest Diagnostics, Inc. * ..................... 200 28
Trigon Healthcare, Inc. * ..................... 200 16
WebMD Corp. * ................................. 200 2
--------
92
110
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
LARGE CAP VALUE CORE FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Housing - 0.6%
Centex Corp. .................................. 2,000 $ 75
Pulte Corp. ................................... 600 25
--------
100
Insurance - 8.5%
AFLAC, Inc. ................................... 400 29
Allstate Corp. ................................ 4,800 209
American General Corp. ........................ 1,000 82
American International Group, Inc. ............ 3,700 365
Cigna Corp. ................................... 1,300 172
Cincinnati Financial Corp. .................... 500 20
Everest Re Group, Ltd. ........................ 300 21
Hartford Financial Services Group, Inc. ....... 1,200 85
Jefferson-Pilot Corp. ......................... 100 7
Lincoln National Corp. ........................ 300 14
Loews Corp. ................................... 1,400 145
Marsh & McLennan Cos., Inc. ................... 600 70
MGIC Investment Corp. ......................... 900 61
Nationwide Financial Services - Cl. A ......... 300 14
Old Republic International Corp. .............. 1,300 42
Radian Group, Inc. ............................ 200 15
St. Paul Cos., Inc. ........................... 500 27
The MONY Group, Inc. .......................... 1,600 79
The PMI Group, Inc. ........................... 1,200 81
--------
1,538
Leisure & Recreation - 0.8%
Brunswick Corp. ............................... 3,700 61
Eastman Kodak Co. ............................. 1,300 51
SABRE Group Holdings, Inc. * .................. 300 13
Starwood Hotels & Resorts Worldwide, Inc. ..... 600 21
--------
146
Machinery - 0.4%
FMC Corp. * ................................... 500 36
Ingersoll-Rand Co. ............................ 700 29
--------
65
Media - Publishing - 0.7%
AT&T Corp. - Liberty Media Group - Cl. A * .... 1,800 25
Dow Jones & Co., Inc. ......................... 500 28
Gannett Co., Inc. ............................. 100 6
Knight-Ridder, Inc. ........................... 600 34
New York Times Co. - Cl. A .................... 1,000 40
--------
133
Media - TV / Radio - 2.4%
Clear Channel Communications, Inc. * .......... 300 15
Comcast Corp. - Cl. A ......................... 600 25
Fox Entertainment Group, Inc. - Cl. A * ....... 1,200 21
Infinity Broadcasting Corp. - Cl. A * ......... 2,800 78
McGraw-Hill Cos., Inc. ........................ 200 12
The Walt Disney Co. ........................... 7,600 220
Time Warner, Inc. ............................. 500 26
USA Networks, Inc. * .......................... 200 4
Viacom, Inc. - Cl. B * ........................ 917 43
--------
444
Metals & Mining - 0.7%
Alcan Aluminum, Ltd. .......................... 1,600 55
Alcoa, Inc. ................................... 612 20
Inco, Ltd. .................................... 2,100 35
Precision Castparts Corp. ..................... 400 17
--------
127
Natural Gas Distribution - 0.1%
KeySpan Corp. ................................. 400 17
Oil - 0.5%
Conoco, Inc. - Cl. B .......................... 3,300 96
Oil & Natural Gas Exploration & Production - 8.8%
Amerada Hess Corp. ............................ 1,300 95
Apache Corp. .................................. 900 63
Chevron Corp. ................................. 3,100 262
Exxon Mobil Corp. ............................. 7,252 630
Kerr-McGee Corp. .............................. 2,200 147
Murphy Oil Corp. .............................. 1,200 73
Noble Affiliates, Inc. ........................ 500 23
Noble Drilling Corp. * ........................ 300 13
Occidental Petroleum Corp. .................... 4,900 119
Phillips Petroleum Co. ........................ 300 17
Texaco, Inc. .................................. 1,300 81
USX-Marathon Group ............................ 2,700 75
--------
1,598
Paper & Forest Products - 0.9%
Georgia-Pacific Corp. ......................... 1,000 31
Kimberly-Clark Corp. .......................... 1,600 113
Westvaco Corp. ................................ 200 6
Weyerhaeuser Co. .............................. 300 15
--------
165
Personal & Commercial Lending - 0.3%
Countrywide Credit Industries, Inc. ........... 400 20
MBNA Corp. .................................... 500 18
Metris Cos., Inc. ............................. 300 8
--------
46
Pollution Control - 0.2%
Republic Services, Inc. - Cl. A ............... 2,000 34
Real Estate Development - 0.2%
Lennar Corp. .................................. 1,200 44
Real Estate Investment Trust - 0.8%
Equity Office Properties Trust ................ 1,400 46
Equity Residential Properties Trust ........... 1,300 72
Prologis Trust ................................ 700 15
Simon Property Group, Inc. .................... 400 10
--------
143
111
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
LARGE CAP VALUE CORE FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Retail - Department Stores - 2.0%
Federated Department Stores, Inc. * ........... 500 $ 18
Harcourt General, Inc. ........................ 900 52
Kohl's Corp. .................................. 700 43
Limited, Inc. ................................. 600 10
Neiman Marcus Group, Inc. - Cl. A ............. 1,700 60
Sears, Roebuck & Co. .......................... 4,300 149
Tiffany & Co. ................................. 400 13
Zale Corp. * .................................. 700 20
--------
365
Retail - Food - 0.7%
Brinker International, Inc. * ................. 900 38
Darden Restaurants, Inc. ...................... 500 12
McDonald's Corp. .............................. 100 3
Safeway, Inc. * ............................... 1,200 75
--------
128
Shoe & Apparel Manufacturing - 0.2%
Intimate Brands, Inc. ......................... 400 6
Liz Claiborne, Inc. ........................... 300 13
Nike, Inc. - Cl. B ............................ 400 22
--------
41
Telecommunication Equipment - 0.2%
Aether Systems, Inc. * ........................ 100 4
Covad Communications Group, Inc. * ............ 100
JDS Uniphase Corp. * .......................... 800 34
Nortel Networks Corp. ......................... 128 4
--------
42
Telecommunication Services - 3.3%
BCE, Inc. ..................................... 3,200 93
Level 3 Communications, Inc. * ................ 300 10
Qwest Communications International, Inc. * .... 3,400 139
United States Cellular Corp. * ................ 100 6
Verizon Communications ........................ 6,274 314
WorldCom, Inc. * .............................. 1,900 27
XO Communications, Inc. ....................... 300 5
--------
594
Telephone - 4.2%
AT&T Corp. .................................... 8,160 141
AT&T Wireless Group * ......................... 500 9
BellSouth Corp. ............................... 4,700 193
SBC Communications, Inc. ...................... 8,237 393
Sprint Corp. .................................. 1,300 26
--------
762
Transportation Services - 1.0%
AMR Corp. * ................................... 700 28
Burlington Northern Santa Fe .................. 500 14
Canadian National Railway Co. ................. 2,600 77
Delta Air Lines, Inc. ......................... 1,100 55
--------
174
U.S. Government Agencies - 1.6%
Federal Home Loan Mortgage Corp. .............. 1,200 83
Federal National Mortgage Assoc ............... 2,400 208
--------
291
--------
TOTAL COMMON STOCK- 89.2% 16,206
Par
Value
(000's)
SHORT TERM INVESTMENTS - 9.4%
Investment in joint repurchase agreement with
Goldman Sachs & Co. dated 12/29/00,
6.481% due 01/02/01 (Secured by various
U.S. Treasury obligations and U.S.
Government Agency Bonds) $ 1,701 1,701
---------- --------
TOTAL INVESTMENTS- 98.6% 17,907
Cash and Receivables, less payables- 1.4% 257
---------- --------
NET ASSETS- 100.0% 18,164
========== ========
* Non-income producing security.
See notes to financial statements.
112
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
AMERICAN LEADERS LARGE CAP VALUE FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Aerospace & Defense - 2.2%
Honeywell International, Inc. ................. 1,400 $ 66
Northrop Grumman Corp. ........................ 800 67
--------
133
Auto & Truck Parts - 2.0%
General Motors Corp. .......................... 700 36
General Motors Corp. - Cl. H .................. 200 5
Johnson Controls, Inc. ........................ 1,100 57
TRW, Inc. ..................................... 600 23
--------
121
Automobile - 0.9%
Ford Motor Co. ................................ 2,372 56
Bank - 6.2%
Bank of America Corp. ......................... 1,800 82
First Union Corp. ............................. 2,400 67
PNC Bank Corp. ................................ 1,600 117
Washington Mutual, Inc. ....................... 2,000 106
--------
372
Brokerage & Investment Management - 3.1%
Bear Stearns Cos., Inc. ....................... 1,600 81
Morgan Stanley, Dean Witter, Discover &
Co .......................................... 1,300 103
--------
184
Business Services - 0.9%
H & R Block, Inc. ............................. 1,300 54
Chemical - 2.2%
Ashland, Inc. ................................. 1,700 61
E.I. du Pont de Nemours & Co. ................. 1,400 68
--------
129
Computer Equipment - 3.8%
Compaq Computer Corp. ......................... 2,900 44
International Business Machines Corp. ......... 1,000 85
Lexmark International Group, Inc. - Cl. A * ... 1,000 44
VERITAS Software Corp. * ...................... 669 58
--------
231
Computer Software & Services - 5.2%
Computer Sciences Corp. * ..................... 1,100 66
Electronic Data Systems Corp. ................. 1,300 75
First Data Corp. .............................. 2,000 106
Novell, Inc. * ................................ 6,200 32
Sun Microsystems, Inc. * ...................... 1,100 31
--------
310
Consumer Miscellaneous - 0.6%
Parker-Hannifin Corp. ......................... 800 35
Diversified Operations - 4.0%
Cendant Corp. * ............................... 5,500 53
PPG Industries, Inc. .......................... 1,100 51
Textron, Inc. ................................. 800 37
Tyco International, Ltd. ...................... 1,800 100
--------
241
Electric Power - 6.0%
Edison International .......................... 2,900 45
Entergy Corp. ................................. 1,900 81
FPL Group, Inc. ............................... 1,200 86
Public Services Enterprise Group, Inc. ........ 1,600 78
Reliant Energy, Inc. .......................... 1,600 69
--------
359
Electronic Products & Services - 2.4%
Motorola, Inc. ................................ 2,400 48
Philips Electronics NV ........................ 2,643 96
--------
144
Financial Services - 1.0%
CIT Group, Inc. - Cl. A ....................... 3,100 62
Food, Beverage & Tobacco - 5.4%
General Mills, Inc. ........................... 1,400 63
Philip Morris Cos., Inc. ...................... 3,800 167
Sara Lee Corp. ................................ 3,800 93
--------
323
Health Care Products - 10.0%
Abbott Laboratories ........................... 1,900 92
Baxter International, Inc. .................... 1,100 97
Bristol-Myers Squibb Co. ...................... 1,800 133
Merck & Co., Inc. ............................. 1,000 94
Pharmacia Corp. ............................... 1,000 61
UnitedHealth Group, Inc. ...................... 2,000 123
--------
600
Health Care Services - 1.9%
HEALTHSOUTH Corp. * ........................... 7,100 116
Insurance - 11.8%
Allmerica Financial Corp. ..................... 1,100 80
Allstate Corp. ................................ 2,600 113
Cigna Corp. ................................... 700 92
Conseco, Inc. ................................. 7,100 94
Lincoln National Corp. ........................ 1,600 76
Loews Corp. ................................... 900 93
Marsh & McLennan Cos., Inc. ................... 600 70
MBIA, Inc. .................................... 1,200 89
--------
707
Machinery - 0.8%
Ingersoll-Rand Co. ............................ 1,200 50
Media - Publishing - 1.1%
Knight-Ridder, Inc. ........................... 1,100 63
113
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
AMERICAN LEADERS LARGE CAP VALUE FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Media - TV / Radio - 3.6%
Charter Communications, Inc. - Cl. A * ........ 3,000 $ 68
The News Corp., Ltd. - ADR .................... 2,200 64
Viacom, Inc. .................................. 1,400 66
Viacom, Inc. - Cl. B * ........................ 500 23
--------
221
Oil - 2.2%
Royal Dutch Petroleum Co. - NY Shares ......... 1,200 73
Tosco Corp. ................................... 1,800 61
--------
134
Oil & Natural Gas Exploration & Production - 6.7%
Chevron Corp. ................................. 900 76
ENSCO International, Inc. ..................... 2,300 78
Exxon Mobil Corp. ............................. 1,600 139
Texaco, Inc. .................................. 900 56
USX-Marathon Group ............................ 2,000 56
--------
405
Paper & Forest Products - 3.0%
International Paper Co. ....................... 1,700 69
Kimberly-Clark Corp. .......................... 1,600 113
--------
182
Pollution Control - 1.8%
Waste Management, Inc. ........................ 4,000 111
Retail - Department Stores - 1.3%
Federated Department Stores, Inc. * ........... 1,300 46
Wal-Mart Stores, Inc. ......................... 700 37
--------
83
Telecommunication Equipment - 0.5%
Lucent Technologies, Inc. ..................... 2,500 34
Telecommunication Services - 2.4%
Verizon Communications ........................ 2,400 120
WorldCom, Inc. * .............................. 1,900 27
--------
147
Telephone - 1.4%
AT&T Corp. .................................... 2,000 34
Sprint Corp. .................................. 2,400 49
--------
83
Transportation Services - 1.1%
Union Pacific Corp. ........................... 1,300 66
--------
TOTAL COMMON STOCK- 95.5% 5,756
Par
Value
(000s)
SHORT-TERM INVESTMENTS - 4.1%
Investment in joint trading account
(Note B)
6.695% due 01/02/01 ........................... 246 $ 246
-------- --------
TOTAL INVESTMENTS- 99.6% 6,002
Cash and Receivables, less payables- 0.4% 27
-------- --------
NET ASSETS- 100.0% 6,029
======== ========
* Non-income producing security.
ADR-American Depositary Receipt
114
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
LARGE/MID CAP VALUE FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Aerospace & Defense - 2.4%
Boeing Co. .................................... 2,200 $ 145
Honeywell International, Inc. ................. 2,300 109
United Technologies Corp. ..................... 1,500 118
--------
372
Auto & Truck Parts - 0.5%
General Motors Corp. - Cl. H .................. 3,596 83
Automobile - 0.9%
Ford Motor Co. ................................ 6,370 149
Bank - 10.5%
KeyCorp ....................................... 11,600 325
Mercantile Bankshares Corp. ................... 5,700 246
U.S. Bancorp .................................. 5,600 163
UnionBanCal Corp. ............................. 3,200 77
Wachovia Corp. ................................ 6,100 355
Washington Mutual, Inc. ....................... 9,300 493
--------
1,659
Brokerage & Investment Management - 4.4%
Goldman Sachs Group, Inc. ..................... 2,300 246
Merrill Lynch & Co., Inc. ..................... 3,600 246
Morgan Stanley, Dean Witter, Discover & Co .... 2,500 198
--------
690
Business Services - 0.2%
Manpower, Inc. ................................ 800 30
Chemical - 1.8%
Air Products & Chemicals, Inc. ................ 1,800 74
E.I. du Pont de Nemours & Co. ................. 3,000 145
Rohm & Haas Co. ............................... 1,800 65
--------
284
Computer Equipment - 1.6%
Compaq Computer Corp. ......................... 3,700 56
Hewlett-Packard Co. ........................... 2,000 63
International Business Machines Corp. ......... 1,500 128
Palm, Inc. .................................... 9 0
--------
247
Computer Software & Services - 1.5%
Affiliated Computer Services, Inc. - Cl. A * .. 1,500 91
Cabletron Systems, Inc. * ..................... 800 12
First Data Corp. .............................. 2,500 132
--------
235
Construction - 0.5%
Vulcan Materials Co. .......................... 1,600 77
Consumer Miscellaneous - 0.2%
Avery Dennison Corp. .......................... 700 38
Cosmetic & Personal Care - 1.7%
Procter & Gamble Co. .......................... 3,500 274
Diversified Operations - 3.9%
Eaton Corp. ................................... 2,200 165
El Paso Energy Corp. .......................... 2,400 172
General Electric Co. .......................... 1,600 77
Illinois Tool Works, Inc. ..................... 2,300 137
Minnesota Mining & Manufacturing Co. .......... 500 60
--------
611
Electric Power - 4.5%
Calpine Corp. * ............................... 3,400 153
Duke Energy Co. ............................... 1,200 102
Exelon Corp. .................................. 3,412 240
Montana Power Co. ............................. 3,500 73
Pinnacle West Capital Corp. ................... 2,900 138
--------
706
Electrical Equipment - 0.5%
Emerson Electric Co. .......................... 900 71
Electronic Products & Services - 0.0%
Advanced Micro Devices, Inc. * ................ 300 4
Financial Services - 5.7%
Citigroup, Inc. ............................... 11,766 601
Lehman Brothers Holdings, Inc. ................ 4,300 291
--------
892
Food, Beverage & Tobacco - 5.8%
PepsiCo, Inc. ................................. 4,200 208
Philip Morris Cos., Inc. ...................... 2,900 128
R.J. Reynolds Tobacco Holdings, Inc. * ........ 5,700 278
Sara Lee Corp. ................................ 12,400 304
--------
918
Health Care Products - 7.0%
Abbott Laboratories ........................... 2,800 136
American Home Products Corp. .................. 1,800 114
Baxter International, Inc. .................... 1,800 159
Gilead Sciences, Inc. * ....................... 800 66
Merck & Co., Inc. ............................. 1,500 140
Mylan Laboratories, Inc. ...................... 2,400 61
Pharmacia Corp. ............................... 4,547 277
Schering-Plough Corp. ......................... 2,500 142
--------
1,095
Health Care Services - 0.2%
McKesson HBOC, Inc. ........................... 1,000 36
Household Appliances / Furnishings - 0.0%
Leggett & Platt, Inc. ......................... 300 6
Insurance - 9.4%
Ambac Financial Group, Inc. ................... 700 41
American International Group, Inc. ............ 4,050 399
Cigna Corp. ................................... 2,700 357
Marsh & McLennan Cos., Inc. ................... 2,500 293
MBIA, Inc. .................................... 2,600 193
115
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
LARGE/MID CAP VALUE FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Insurance - Continued
XL Capital, Ltd. - Cl. A ...................... 2,200 $ 192
--------
1,475
Leisure & Recreation - 0.2%
Eastman Kodak Co. ............................. 600 24
Machinery - 1.0%
Caterpillar, Inc. ............................. 1,800 85
Thermo Electron Corp. * ....................... 2,500 75
--------
160
Media - Publishing - 0.9%
AT&T Corp. - Liberty Media Group - Cl. A * .... 5,800 79
Gannett Co., Inc. ............................. 1,100 69
--------
148
Media - TV / Radio - 2.0%
Charter Communications, Inc. - Cl. A * ........ 4,700 107
E.W. Scripps Co. - Cl. A ...................... 1,400 88
Time Warner, Inc. ............................. 300 16
USA Networks, Inc. * .......................... 3,000 58
Viacom, Inc. - Cl. B * ........................ 1,100 51
--------
320
Metals & Mining - 0.8%
Alcoa, Inc. ................................... 3,700 124
Natural Gas Distribution - 0.6%
Enron Corp. ................................... 1,100 91
Oil - 1.7%
Conoco, Inc. - Cl. B .......................... 4,000 116
Suncor Energy, Inc. ........................... 5,900 151
--------
267
Oil & Natural Gas Exploration & Production - 6.2%
Chevron Corp. ................................. 2,000 169
Exxon Mobil Corp. ............................. 5,450 474
Ultramar Diamond Shamrock Corp. ............... 4,700 145
Unocal Corp. .................................. 4,700 182
--------
970
Oil - Equipment & Service - 0.2%
Weatherford International, Inc. * ............. 800 38
Paper & Forest Products - 2.0%
Bowater, Inc. ................................. 1,600 90
Kimberly-Clark Corp. .......................... 1,300 92
Smurfit-Stone Container Corp. * ............... 3,700 55
Weyerhaeuser Co. .............................. 1,300 66
--------
303
Real Estate Investment Trust - 1.1%
Archstone Communities Trust ................... 900 23
Equity Office Properties Trust ................ 2,200 72
Kimco Realty Corp. ............................ 1,700 75
--------
170
Retail - Department Stores - 2.0%
Family Dollar Stores, Inc. .................... 7,300 156
Target Corp. .................................. 4,700 152
--------
308
Retail - Food - 2.0%
McDonald's Corp. .............................. 2,700 92
Safeway, Inc. * ............................... 3,600 225
--------
317
Telecommunication Equipment - 0.5%
Sonus Networks, Inc. * ........................ 3,100 78
Telecommunication Services - 5.4%
Broadwing, Inc. ............................... 2,300 53
Qwest Communications International, Inc. * .... 4,437 182
Verizon Communications ........................ 10,700 536
WorldCom, Inc. * .............................. 5,200 73
--------
844
Telephone - 2.2%
AT&T Corp. .................................... 3,600 63
SBC Communications, Inc. ...................... 5,995 286
--------
349
Transportation Services - 1.0%
Canadian National Railway Co. ................. 1,100 33
Continental Airlines, Inc. - Cl. B * .......... 600 31
Delta Air Lines, Inc. ......................... 400 20
Southwest Airlines Co. ........................ 2,300 77
--------
161
U.S. Government Agencies - 2.8%
Federal National Mortgage Assoc ............... 5,100 442
--------
TOTAL COMMON STOCK- 95.8% 15,066
Par
Value
(000's)
SHORT-TERM INVESTMENTS - 2.9%
Investment in joint trading account (Note B)
6.695% due 01/02/01 ........................... $ 461 461
--------- --------
TOTAL INVESTMENTS- 98.7% 15,527
Cash and Receivables, less payables- 1.3% 201
--------- --------
NET ASSETS- 100.0% 15,728
========= ========
* Non-income producing security.
See notes to financial statements.
116
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
MONEY MARKET FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS
Bank - 8.4%
Bank America NA Charlotte
6.826% due 09/06/01 ........................... $ 5,000 $ 5,002
Bank of New York
7.22% due 05/09/01 ............................ 4,005 4,007
Bankers Trust Corp.
6.627% due 03/16/01 ........................... 1,000 1,000
Credit Suisse First Boston, Inc.
6.727% due 08/09/01 ........................... 5,000 5,000
Fleet National Bank - Sr. Notes
6.727% due 09/07/01 ........................... 3,000 3,001
Fleet National Bank of Rhode Island
6.83% due 01/29/01 ............................ 1,000 1,000
FleetBoston Financial Corp. - Sr. Notes
6.81% due 05/11/01 ............................ 10,000 10,003
Key Bank
6.731% due 03/01/01 ........................... 5,000 4,999
Merrill Lynch & Co., Inc. - Notes
6.776% due 03/05/01 ........................... 3,000 3,001
National City Bank
6.78% due 04/23/01 ............................ 5,000 5,001
--------
42,014
Brokerage & Investment Management - 2.0%
Lehman Brothers Holdings, Inc. - Notes
6.375% due 03/15/01 ........................... 5,000 4,996
Morgan Stanley Dean Witter
5.875% due 02/28/01 ........................... 5,000 4,992
--------
9,988
Cosmetic & Personal Care - 0.5%
Unilever Capital Corp. - 144A (a)
6.707% due 09/07/01 ........................... 2,500 2,500
Financial Services - 3.7%
Associates Corp. NA - Sr. Notes
6.598% due 03/16/01 ........................... 2,000 2,000
Goldman Sach Group, Inc. Mountain
6.89% due 11/26/01 ............................ 2,000 2,002
Lehman Brothers Holdings - Notes
6.9% due 03/30/01 ............................. 6,000 6,002
Lehman Brothers Holdings, Inc. - Notes
6.9% due 01/29/01 ............................. 3,000 3,000
Merrill Lynch & Co., Inc. - Notes
7.101% due 01/12/01 ........................... 5,000 5,001
--------
18,005
Personal & Commercial Lending - 4.7%
American Honda Finance Corp. - Notes
6.788% due 01/16/01 ........................... 5,000 5,000
American Honda Finance Corp. Mountain
6.688% due 02/16/01 ........................... 5,000 5,000
General Motors Acceptance Corp.
6.528% due 03/30/01 ........................... 4,125 4,126
Household Finance Corp.
6.908% due 08/01/01 ........................... 4,000 4,002
7.261% due 04/24/01 ........................... 5,000 5,007
--------
23,135
Telecommunication Services - 1.3%
SBC Communications Capital Corp.
6.752% due 05/01/01 ........................... 5,000 5,000
TCI Communications, Inc. - Sr. Notes
7.136% due 03/12/01 ........................... 1,500 1,502
--------
6,502
--------
TOTAL PUBLICLY-TRADED BONDS- 20.6% 102,144
COMMERCIAL PAPER
Bank - 11.1%
Abbey National
6.51% due 02/20/01 ............................ 4,198 4,160
Abbey National America
6.52% due 01/24/01 ............................ 8,000 7,967
Credit Suisse
6.51% due 02/26/01 ............................ 3,000 2,970
6.55% due 01/05/01 ............................ 5,000 4,996
CSN Overseas Barclays Bank
6.5% due 02/08/01 ............................. 4,000 3,973
Den Denske Corp.
6.56% due 01/05/01 ............................ 3,000 2,998
Deutsche Bank AG
6.25% due 03/05/01 ............................ 5,000 4,945
Deutsche Bank Fina
6.53% due 01/19/01 ............................ 8,000 7,973
Fleet National Bank
6.56% due 01/16/01 ............................ 1,500 1,496
Royal Bank of Canada
6.52% due 02/13/01 ............................ 8,900 8,830
Svenska Handelsbanken NY
6.75% due 02/14/01 ............................ 5,000 4,999
--------
55,307
Brokerage & Investment Management - 4.6%
Merrill Lynch & Co., Inc.
6.53% due 02/09/01 ............................ 8,000 7,943
Prudential Funding Corp.
6.54% due 01/04/01 ............................ 5,000 4,997
Salomon Smith Barney Holdings, Inc.
6.6% due 01/04/01 ............................. 10,000 9,995
--------
22,935
Chemical - 0.4%
Sinochem American CP, Inc.
6.52% due 02/06/01 ............................ 2,000 1,987
117
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
MONEY MARKET FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
COMMERCIAL PAPER - Continued
Diversified Operations - 1.6%
Ciesco L.P.
6.5% due 01/22/01 ............................. $ 3,587 $ 3,573
Diageo Capital plc
6.52% due 01/23/01 ............................ 4,650 4,632
--------
8,205
Electric Power - 1.4%
General Electric Credit Capital of Puerto Rico
6.56% due 01/05/01 ............................ 3,961 3,958
National Rural Utilities
Cooperative Finance Corp.
6.55% due 01/12/01 ............................ 3,000 2,994
--------
6,952
Financial Services - 41.5%
Asset Securitization Cooperative Corp.
6.55% due 01/08/01 ............................ 2,354 2,351
6.55% due 01/09/01 ............................ 4,536 4,529
AWB Finance, Ltd.
6.4% due 02/20/01 ............................. 3,000 2,973
CBA Delaware Finance
6.44% due 02/08/01 ............................ 4,360 4,330
Centric Capital Corp.
6.28% due 03/29/01 ............................ 4,000 3,939
6.47% due 02/16/01 ............................ 4,000 3,967
6.55% due 01/25/01 ............................ 3,000 2,987
6.6% due 01/08/01 ............................. 5,850 5,842
6.6% due 01/10/01 ............................. 4,600 4,592
Clipper Receivables Corp.
6.62% due 01/02/01 ............................ 1,511 1,511
6.62% due 01/30/01 ............................ 4,000 3,979
Delaware Funding Corp.
6.43% due 02/26/01 ............................ 3,475 3,440
6.53% due 01/17/01 ............................ 2,000 1,994
6.53% due 01/18/01 ............................ 2,182 2,175
6.53% due 01/23/01 ............................ 4,000 3,984
Eagle Funding Capital Corp.
6.31% due 03/20/01 ............................ 1,391 1,372
6.56% due 02/12/01 ............................ 4,000 3,969
6.57% due 02/12/01 ............................ 3,750 3,721
6.59% due 01/04/01 ............................ 2,306 2,305
6.6% due 01/04/01 ............................. 1,057 1,056
Enterprise Funding Corp.
6.25% due 03/28/01 ............................ 7,142 7,035
6.53% due 02/23/01 ............................ 6,257 6,197
Falcon Asset Securitization Corp.
6.4% due 02/27/01 ............................. 6,000 5,939
6.6% due 01/02/01 ............................. 9,985 9,983
6.6% due 01/03/01 ............................. 2,000 1,999
Fleet Funding Corp.
6.53% due 01/03/01 ............................ 6,000 5,998
International Lease Finance Corp.
6.53% due 01/30/01 ............................ 6,210 6,177
Lexington Parker Capital Corp.
6.42% due 03/02/01 ............................ 7,767 7,685
Lexignton Parker Capital Corp. CP
6.38% due 03/02/01 ............................ 1,000 989
6.55% due 02/20/01 ............................ 2,000 1,982
Monte Rosa Capital Corp.
6.5% due 02/05/01 ............................. 4,844 4,813
6.56% due 02/01/01 ............................ 5,000 4,972
6.57% due 01/16/01 ............................ 2,883 2,875
Monte Rosa Capital Corp.
6.56% due 01/11/01 ............................ 8,000 7,986
Old Line Funding Corp.
6.61% due 01/02/01 ............................ 4,000 3,999
Old Line Funding, Corp.
6.6% due 01/05/01 ............................. 4,897 4,893
Philip Morris Capital Corp.
6.42% due 02/21/01 ............................ 4,000 3,964
Preferred Receivables Corp.
6.55% due 01/23/01 ............................ 2,112 2,104
6.63% due 01/25/01 ............................ 5,000 4,979
Receivables Capital Corp.
6.61% due 01/02/01 ............................ 1,138 1,138
Sheffield Receivables Corp.
6.43% due 02/23/01 ............................ 4,000 3,962
6.47% due 02/06/01 ............................ 6,000 5,961
6.6% due 01/02/01 ............................. 2,382 2,382
6.6% due 01/12/01 ............................. 3,780 3,772
Sigma Finance, Inc.
6.43% due 02/28/01 ............................ 3,750 3,711
6.53% due 01/22/01 ............................ 1,870 1,863
6.53% due 02/23/01 ............................ 1,150 1,139
6.54% due 02/14/01 ............................ 4,221 4,187
6.57% due 01/08/01 ............................ 6,747 6,739
Windmill Funding Corp.
6.42% due 02/07/01 ............................ 3,560 3,537
6.48% due 02/15/01 ............................ 5,000 4,960
6.65% due 01/03/01 ............................ 3,345 3,344
--------
206,280
Food, Beverage & Tobacco - 1.8%
Coca-Cola Co.
6.5% due 01/29/01 ............................. 4,000 3,980
Philip Morris Companies, Inc.
6.7% due 01/12/01 ............................. 5,000 4,990
--------
8,970
Leisure & Recreation - 2.6%
K2 USA LLC
6.3% due 03/28/01 ............................. 1,000 985
6.57% due 01/10/01 ............................ 5,000 4,992
6.57% due 02/01/01 ............................ 3,000 2,983
118
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
MONEY MARKET FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
COMMERCIAL PAPER - Continued
Leisure & Recreation - Continued
6.57% due 02/05/01 ............................ $ 4,000 $ 3,974
--------
12,934
Machinery - 4.0%
Dover Corp.
6.4% due 02/22/01 ............................. 4,000 3,963
6.5% due 02/15/01 ............................. 4,000 3,968
6.55% due 01/26/01 ............................ 4,000 3,982
6.56% due 01/31/01 ............................ 8,000 7,956
--------
19,869
Media - Publishing - 0.8%
Reed Elsevier, Inc.
6.52% due 01/26/01 ............................ 4,000 3,982
Personal & Commercial Lending - 6.7%
American General Finance Corp.
6.52% due 01/22/01 ............................ 6,000 5,977
Ford Motor Credit Co.
6.46% due 02/07/01 ............................ 4,000 3,973
6.48% due 02/02/01 ............................ 8,000 7,955
6.53% due 01/17/01 ............................ 6,028 6,011
6.54% due 01/09/01 ............................ 2,000 1,997
General Motors Acceptance Corp.
6.54% due 01/10/01 ............................ 3,000 2,995
Toyota Motor Credit Co.
6.35% due 02/22/01 ............................ 4,000 3,963
--------
32,871
Telephone - 1.4%
AT & T Corp.
6.52% due 01/09/01 ............................ 1,872 1,869
6.53% due 01/18/01 ............................ 5,156 5,140
--------
7,009
--------
TOTAL COMMERCIAL PAPER- 77.9% 387,301
-------- --------
TOTAL INVESTMENTS- 98.5% 489,445
Cash and Receivables, less payables- 1.5% 7,408
-------- --------
NET ASSETS- 100.0% 496,853
See notes to financial statements.
(a) Pursuant to Rule 144A (a) under the Securities Act of 1993, these
securities may be resold in transactions exempt from registration, normally
to qualified institutional buyers. At December 31, 2000, securities
aggregated $2,500 or 0.51% of net assets of the Portfolio.
119
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
MID CAP VALUE FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Aerospace & Defense - 2.3%
General Dynamics Corp. ........................ 26,100 $ 2,036
Raytheon Co. - Cl. A .......................... 32,000 928
--------
2,964
Auto & Truck Parts - 1.4%
Lear Corp. * .................................. 74,400 1,846
Bank - 8.2%
Astoria Financial Corp. ....................... 14,300 777
Dime Bancorp, Inc. ............................ 76,200 2,253
Golden State Bancorp, Inc. .................... 40,700 1,279
Golden West Financial Corp. ................... 29,500 1,991
M & T Bank Corp. .............................. 31,200 2,122
Mercantile Bankshares Corp. ................... 12,900 557
SouthTrust Corp. .............................. 21,800 887
Valley National Bancorp ....................... 20,900 696
--------
10,562
Brokerage & Investment Management - 0.5%
A.G. Edwards, Inc. ............................ 12,900 612
Business Services - 1.6%
Dun & Bradstreet Corp. ........................ 58,200 1,506
H & R Block, Inc. ............................. 13,500 558
--------
2,064
Chemical - 4.2%
Air Products & Chemicals, Inc. ................ 16,500 676
Cabot Corp. ................................... 43,400 1,145
Cytec Industries, Inc. * ...................... 16,800 671
Engelhard Corp. ............................... 60,400 1,231
Lyondell Chemical Co. ......................... 43,300 663
Sigma-Aldrich Corp. ........................... 26,100 1,026
--------
5,412
Commercial Sevices - 4.4%
Choicepoint, Inc. ............................. 44,200 2,898
Iron Mountain, Inc. * ......................... 19,400 720
Moody's Corp. * ............................... 78,100 2,006
--------
5,624
Computer Equipment - 0.9%
Mentor Graphics Corp. * ....................... 42,200 1,158
Computer Software & Services - 4.2%
Cadence Design Systems, Inc. * ................ 31,900 877
Citrix Systems, Inc. * ........................ 39,400 887
DST Systems, Inc. * ........................... 18,700 1,253
NCR Corp. * ................................... 25,600 1,258
SunGard Data Systems, Inc. .................... 25,600 1,206
--------
5,481
Consumer Miscellaneous - 0.6%
Harman International Industries, Inc. ......... 21,300 777
Diversified Operations - 3.7%
Cooper Industries, Inc. ....................... 25,700 1,181
Crane Co. ..................................... 41,700 1,186
Danaher Corp. ................................. 17,900 1,224
Pall Corp. .................................... 59,100 1,259
--------
4,850
Electric Power - 7.7%
American Electric Power Co. ................... 16,600 772
Dominion Resources, Inc. ...................... 21,300 1,427
DPL, Inc. ..................................... 53,400 1,772
Edison International .......................... 50,800 794
Entergy Corp. ................................. 7,700 326
Exelon Corp. .................................. 39,175 2,750
Teco Energy, Inc. ............................. 24,300 787
UtiliCorp United, Inc. ........................ 43,500 1,348
--------
9,976
Electronic Products & Services - 2.2%
Arrow Electronics, Inc. * ..................... 21,200 607
KLA-Tencor Corp. * ............................ 17,300 583
Sensormatic Electronics Corp. * ............... 38,400 770
Teradyne, Inc. * .............................. 24,300 905
--------
2,865
Financial Services - 1.4%
Federated Investors, Inc. Cl. B ............... 35,400 1,031
GreenPoint Financial Corp. .................... 17,500 716
--------
1,747
Food, Beverage & Tobacco - 1.5%
Hershey Foods Corp. ........................... 15,000 966
Wm. Wrigley Jr. Co. ........................... 9,500 910
--------
1,876
Health Care Products - 3.9%
Beckman Coulter, Inc. ......................... 17,600 738
Bergen Brunswig Corp. - Cl. A ................. 92,200 1,460
Carter Wallace, Inc. .......................... 46,600 1,555
Charles River Laboratories * .................. 29,200 799
Genzyme Corp. (General Division) * ............ 5,500 495
--------
5,047
Health Care Services - 2.5%
Health Management Associates, Inc. -
Cl. A * ..................................... 52,900 1,098
Omnicare, Inc. ................................ 63,400 1,371
Wellpoint Health Networks, Inc. * ............. 6,200 714
--------
3,183
Housing - 0.9%
Centex Corp. .................................. 31,300 1,176
Insurance - 8.3%
Ace, Ltd. * ................................... 48,700 2,067
Allmerica Financial Corp. ..................... 22,200 1,610
Ambac Financial Group, Inc. ................... 19,650 1,146
Aon Corp. ..................................... 24,300 832
120
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
MID CAP VALUE FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Insurance - Continued
Loews Corp. ....................................... 18,900 $ 1,957
MBIA, Inc. ........................................ 12,900 956
XL Capital, Ltd. - Cl. A .......................... 24,900 2,176
-------
10,744
Leisure & Recreation - 0.7%
Carnival Corp. .................................... 29,800 918
Machinery - 4.0%
FMC Corp. * ....................................... 33,900 2,430
SPX Corp. ......................................... 5,500 595
Thermo Electron Corp. * ........................... 72,000 2,142
-------
5,167
Media - TV / Radio - 3.4%
A.H. Belo Corp. ...................................101,800 1,629
Cablevision Systems Corp. - Cl. A * ............... 13,300 1,130
E.W. Scripps Co. - Cl. A .......................... 26,800 1,685
-------
4,444
Oil & Natural Gas Exploration & Production - 6.8%
Apache Corp. ...................................... 25,700 1,801
Burlington Resources, Inc. ........................ 20,700 1,045
Cross Timbers Oil Company ......................... 46,900 1,301
EOG Resources, Inc. ............................... 37,400 2,045
Kinder Morgan, Inc. ............................... 13,000 678
Louis Dreyfus Natural Gas Corp. * ................. 21,600 990
USX-Marathon Group ................................ 34,800 966
-------
8,826
Oil - Equipment & Service - 1.6%
Gulf Canada Resources, Ltd. * .....................161,200 816
Tidewater, Inc. ................................... 12,600 559
Weatherford International, Inc. * ................. 14,400 681
-------
2,056
Paper & Forest Products - 0.5%
Bowater, Inc. ..................................... 10,600 598
Personal & Commercial Lending - 2.4%
Countrywide Credit Industries, Inc. ............... 43,000 2,161
USA Education, Inc. ............................... 14,700 999
-------
3,160
Pollution Control - 2.5%
Allied Waste Industries, Inc. * ...................108,600 1,582
Waste Management, Inc. ............................ 61,300 1,701
-------
3,283
Real Estate Development - 1.4%
Lennar Corp. ...................................... 48,300 1,751
Real Estate Investment Trust - 2.5%
Boston Properties, Inc. ........................... 27,100 1,179
Equity Office Properties Trust .................... 42,400 1,383
Spieker Properties, Inc. .......................... 14,400 722
-------
3,284
Real Estate Operations - 1.2%
IndyMac Mortgage Holdings, Inc.................... 53,600 1,581
Retail - Department Stores - 2.1%
Barnes & Noble, Inc. * ............................ 38,600 1,023
Federated Department Stores, Inc. * ............... 24,200 847
Staples, Inc. * ................................... 68,500 809
-------
2,679
Retail - Drug Stores - 0.5%
TJX Cos., Inc. .................................... 22,600 627
Telecommunication Services - 1.0%
Broadwing, Inc. ................................... 54,300 1,239
Telephone - 0.4%
Telephone and Data Systems, Inc. .................. 5,200 468
Transportation Services - 3.4%
Burlington Northern Santa Fe ...................... 32,800 929
Continental Airlines, Inc. - Cl. B * .............. 24,600 1,270
GATX Corp. ........................................ 45,000 2,244
-------
4,443
-------
TOTAL COMMON STOCK- 94.8% 122,488
Par
Value
(000's)
SHORT-TERM INVESTMENTS - 5.0%
Investment in joint trading account (Note B)
6.695% due 01/02/01 $ 6,504 6,504
------- -------
TOTAL INVESTMENTS- 99.8% 128,992
Cash and Receivables, less payables- 0.2% 241
------- -------
NET ASSETS- 100.0% 129,233
======= =======
* Non-income producing security.
See notes to financial statements.
121
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
SMALL/MID CAP GROWTH FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Automobile - 2.0%
United Rentals, Inc. * ............................279,500 $ 3,756
Bank - 2.2%
Mercantile Bankshares Corp. ....................... 36,700 1,585
Westamerica Bancorporation ........................ 35,600 1,531
Wilmington Trust Trust Corp. ...................... 16,900 1,049
-------
4,165
Brokerage & Investment Management - 1.3%
Investment Technology Group, Inc. ................. 60,000 2,505
Business Services - 1.3%
American Management Systems, Inc. * ...............121,700 2,411
Chemical - 0.7%
MacDermid, Inc. ................................... 75,000 1,425
Commercial Sevices - 7.5%
ACNielson Corp. * ................................. 46,200 1,675
DeVry, Inc. * ..................................... 67,700 2,556
G & K Services, Inc. - Cl. A ......................141,400 3,977
NOVA Corp. - Georgia * ............................145,000 2,891
TMP Worldwide, Inc. * ............................. 58,500 3,217
-------
14,316
Computer Equipment - 0.4%
CDW Computer Centers, Inc. * ...................... 15,000 418
Extreme Networks, Inc. * .......................... 11,200 438
-------
856
Computer Software & Services - 21.9%
Acxiom Corp. * ................................... 123,300 4,801
Affiliated Computer Services, Inc. - Cl. A * ..... 36,000 2,185
Agile Software Corp. * ........................... 10,000 494
Black Box Corp. * ................................ 43,300 2,092
CheckFree Corp. .................................. 14,000 595
DST Systems, Inc. * .............................. 34,700 2,325
E.piphany, Inc. * ................................ 8,000 431
Fiserv, Inc. ..................................... 54,900 2,604
IMS Health, Inc. ................................. 167,800 4,531
Intuit, Inc. * ................................... 53,600 2,114
Macromedia, Inc. * ............................... 43,000 2,612
Mercury Interactive Corp. * ...................... 6,900 623
National Instruments Corp. * ..................... 33,000 1,602
Openwave Systems, Inc. * ......................... 4,000 192
Peoplesoft, Inc. ................................. 20,000 744
Radiant Systems, Inc. * .......................... 22,000 451
Rational Software Corp. * ........................ 110,700 4,310
Research in Motion, Ltd. * ....................... 10,000 800
SunGard Data Systems, Inc. ....................... 37,900 1,786
Systems & Computer Technology Corp. * ............ 183,900 2,264
Trizetto Group, Inc. * ........................... 46,000 768
Verity, Inc. * ................................... 104,600 2,517
Vignette Corp. * ................................. 39,500 711
-------
41,552
Consumer Miscellaneous - 2.2%
Catalina Marketing Corp. * ....................... 110,100 4,287
Container - 2.0%
Bemis Co., Inc. ................................... 79,000 2,652
Sealed Air Corp. * ................................ 36,200 1,104
-------
3,756
Cosmetic & Personal Care - 0.8%
AptarGroup, Inc. .................................. 50,000 1,469
Diversified Operations - 1.4%
Ionics, Inc. * .................................... 92,400 2,622
Electric Power - 4.5%
Calpine Corp. * ................................... 67,000 3,019
Montana Power Co. .................................180,400 3,743
Pinnacle West Capital Corp. ....................... 36,500 1,739
-------
8,501
Electrical Equipment - 2.1%
Littelfuse, Inc. * ............................... 138,400 3,962
Electronic Products & Services - 3.6%
Cymer, Inc. * ..................................... 37,900 975
Dallas Semiconductor Corp. ........................ 96,500 2,473
Novellus Systems, Inc. * .......................... 10,900 392
QLogic Corp. * .................................... 8,000 616
TranSwitch Corp. * ................................ 6,000 235
Veeco Instruments Inc. * .......................... 52,000 2,086
-------
6,777
Food, Beverage & Tobacco - 2.1%
Pepsi Bottling Group, Inc. ........................ 98,100 3,918
Health Care Products - 8.4%
ALZA Corp. * ...................................... 44,400 1,887
Becton, Dickinson & Co. ........................... 72,100 2,496
Biomet, Inc. ...................................... 73,250 2,907
Cephalon, Inc. * .................................. 19,000 1,203
COR Therapeutics, Inc. * .......................... 15,200 535
CV Therapeutics, Inc. * ........................... 11,500 813
Gene Logic, Inc. * ................................ 37,000 680
Genzyme Corp. (General Division) * ................ 30,500 2,743
Gilead Sciences, Inc. * ........................... 11,500 954
Haemonetics Corp. * ............................... 27,100 837
NPS Pharmaceuticals, Inc. * ....................... 17,500 840
-------
15,895
Health Care Services - 0.7%
Regeneron Pharmaceuticals * ....................... 17,000 599
Trigon Healthcare, Inc. * ......................... 10,100 786
-------
1,385
Household Appliances / Furnishings - 2.6%
Herman Miller, Inc. ...............................171,400 4,928
Insurance - 2.3%
Reinsurance Group of America ......................121,900 4,327
122
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
SMALL/MID CAP GROWTH FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Leisure & Recreation - 2.0%
Speedway Motorsports, Inc. * ...................... 162,000 $ 3,888
Oil - 1.9%
Petro-Canada ...................................... 145,900 3,711
Oil & Natural Gas Exploration & Production - 4.5%
Atwood Oceanics, Inc. * ........................... 30,400 1,332
Helmerich & Payne, Inc. ........................... 97,700 4,286
Murphy Oil Corp. .................................. 47,200 2,853
--------
8,471
Oil - Equipment & Service - 1.8%
Hanover Compressor Co. * .......................... 78,300 3,489
Retail - Department Stores - 5.4%
Bed Bath & Beyond, Inc. * ......................... 116,500 2,607
Family Dollar Stores, Inc. ........................ 214,000 4,587
Staples, Inc. * ................................... 261,400 3,088
--------
10,282
Retail - Food - 0.8%
Whole Foods Market, Inc. * ........................ 24,800 1,516
Telecommunication Equipment - 5.8%
CommScope, Inc. * ................................. 137,700 2,281
DMC Stratex Networks, Inc. - Notes * .............. 136,100 2,041
Symbol Technologies, Inc. ......................... 113,600 4,089
Tekelec, Inc. ..................................... 69,900 2,097
TriQuint Semiconductor, Inc. * .................... 9,400 411
Westell Technologies, Inc. Cl. A * ................ 49,200 151
--------
11,070
Telecommunication Services - 1.3%
Allegiance Telecom, Inc. * ........................ 40,500 902
Broadwing, Inc. ................................... 25,500 582
McLeodUSA, Inc. - Cl. A * ......................... 72,100 1,018
--------
2,502
Transportation Services - 1.3%
EGL, Inc. * ...................................... 101,000 2,418
--------
TOTAL COMMON STOCK- 94.8% 180,160
Par
Value
(000's)
SHORT-TERM INVESTMENTS - 5.5%
Investment in joint trading account (Note B)
6.695% due 01/02/01 ............................. $ 10,456 10,456
-------- --------
TOTAL INVESTMENTS- 100.3% 190,616
Payables, less cash and receivables- (0.3)% (606)
-------- --------
NET ASSETS- 100.0% 190,010
======== ========
* Non-income producing security.
See notes to financial statements.
123
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
BOND INDEX FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS
Aerospace & Defense - 1.3%
Lockheed Martin Corp.
7.25% due 05/15/06 .................................$ 300 $ 311
Northrop-Grumman Corp. - Debs.
7.75% due 03/01/16 ................................... 75 76
Raytheon Co. - Notes
6.75% due 08/15/07 ................................... 200 199
United Technologies Corp. - Debs.
8.875% due 11/15/19 .................................. 50 58
United Technology Corp.
6.625% due 11/15/04 .................................. 200 204
------
848
Auto & Truck Parts - 0.7%
Dana Corp. - Notes
7.0% due 03/15/28 .................................... 75 39
TRW, Inc.
7.125% due 06/01/09 .................................. 150 136
Visteon Corp.
7.95% due 08/01/05 ................................... 250 251
------
426
Automobile - 1.0%
DaimlerChrysler NA Holding Co.
6.9% due 09/01/04 .................................... 450 446
Delphi Automotive Systems Corp. - Debs.
7.125% due 05/01/29 .................................. 50 42
Hertz Corp. - Sr. Notes
8.25% due 06/01/05 ................................... 125 131
------
619
Bank - 4.4%
Abbey National plc - Debs.
7.95% due 10/26/29 ................................... 100 106
African Development Bank - Sub. Notes
6.875% due 10/15/15 .................................. 35 36
Asian Development Bank - Bonds
5.5% due 04/23/04 .................................... 270 267
Bank of America Corp. - Sub. Notes
7.8% due 02/15/10 .................................... 250 260
Bank One Corp. - Sr. Notes
5.625% due 02/17/04 .................................. 150 146
BankAmerica Corp. - Sub. Notes
6.5% due 03/15/06 .................................... 150 149
Chase Manhattan Corp. - Sub. Notes
7.125% due 02/01/07 .................................. 225 229
First Union Corp. - Sub. Notes
8.125% due 06/24/02 .................................. 230 235
Fleet Boston Corp. - Sub. Notes
7.375% due 12/01/09 .................................. 100 103
Fleet Financial Group - Sub. Debs.
6.7% due 07/15/28 .................................... 75 66
Golden West Financial Corp. - Sub. Notes
6.7% due 07/01/02 ................................... 150 150
HSBC Holdings plc
7.5% due 07/15/09 ................................... 150 156
InterAmerican Development Bank - Debs.
8.5% due 03/15/11 ................................... 200 236
Korea Development Bank - Bonds
7.375% due 09/17/04 ................................. 120 120
National City Bank of Pennsylvania - Sub.
Notes
7.25% due 10/21/11 .................................. 50 50
Royal Bank of Scotland plc - Sub.
Notes
6.4% due 04/01/09 ................................... 150 145
Wachovia Corp. - Sub. Notes
5.625% due 12/15/08 ................................. 75 68
Wells Fargo & Co. - Sub. Notes
6.875% due 04/01/06 ................................. 150 153
Wells Fargo Co. - notes
6.625% due 07/15/04 ................................. 175 177
------
2,852
Brokerage & Investment Management - 1.0%
Bear Stearns Co., Inc.
7.625% due 02/01/05 ................................. 250 256
Lehman Brothers Holdings, Inc. - Notes
8.5% due 05/01/07 ................................... 100 106
Merrill Lynch & Co., Inc. - Notes
8.0% due 06/01/07 ................................... 200 212
Morgan Stanley, Discover & Co.
6.875% due 03/01/07 ................................. 100 101
------
675
Business Services - 0.2%
Electronic Data Systems Corp.
7.125% due 10/15/09 ................................. 100 104
Chemical - 0.9%
Eastman Chemical - Debs.
7.6% due 02/01/27 ................................... 150 136
ICI Wilmington, Inc. - Debs.
8.75% due 05/01/01 .................................. 300 301
Morton International, Inc. - Debs.
9.25% due 06/01/20 .................................. 40 46
Rohm & Haas Co. - Notes
7.4% due 07/15/09 ................................... 80 82
------
565
Computer Equipment - 0.5%
Hewlett - Packard Co. - Notes
7.15% due 06/15/05 .................................. 200 207
International Business Machines Corp. - Debs.
7.0% due 10/30/25 ................................... 100 98
------
305
124
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
BOND INDEX FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - Continued
Consumer Miscellaneous - 0.3%
Fortune Brands, Inc. - Debs.
7.875% due 01/15/23 ................................$ 100 $ 99
United Utilities plc - Notes
6.875% due 08/15/28 .................................. 100 84
------
183
Cosmetic & Personal Care - 0.0%
Procter & Gamble Co. - Debs.
6.45% due 01/15/26 ................................... 100 96
Diversified Operations - 0.6%
Diageo Capital plc
6.125% due 08/15/05 .................................. 200 199
Honeywell International, Inc. - Notes
7.5% due 03/01/10 .................................... 75 81
John Deere Capital Corp. - Notes
6.0% due 02/15/09 .................................... 60 56
Tyco International Group SA
6.375% due 06/15/05 .................................. 80 80
------
416
Electric Power - 1.4%
CalEnergy Co., Inc. - Bonds
8.48% due 09/15/28 ................................... 60 65
Duke Energy Co. - 1st Ref. Mtg.
6.75% due 08/01/25 ................................... 100 89
Enersis SA - Notes
6.9% due 12/01/06 .................................... 30 28
Florida Power & Light Co.
7.75% due 02/01/23 ................................... 50 49
Niagara Mohawk Power Corp.
7.75% due 10/01/08 ................................... 200 209
Ontario Hydro - Local Govt. Gtd.
6.1% due 01/30/08 .................................... 100 100
Philadelphia Electric Co. - 1st Ref. Mtg.
7.125% due 09/01/02 .................................. 100 101
Tennessee Valley Authority
6.75% due 11/01/25 ................................... 100 105
Virginia Electric Power Co. - 1st Mtge.
7.625% due 07/01/07 .................................. 150 156
------
902
Financial Services - 3.1%
Ameritech Capital Funding Corp.
6.875% due 10/15/27 .................................. 60 56
Associates Corp. of North America
5.5% due 02/15/04 .................................... 175 171
Citicorp Capital II
8.015% due 02/15/27 .................................. 100 96
Ford Capital B.V. - Debs.
9.5% due 06/01/10 .................................... 150 169
Financial Services - Continued
GATX Capital Corp. - Notes
6.875% due 12/15/06 .................................. 100 94
General Electric Capital Corp. - Debs.
8.75% due 05/21/07 ................................... 250 282
Goldman Sachs Group, Inc. - Notes
7.35% due 10/01/09 ................................... 100 102
Hartford Financial Services Group - Sr. Notes
7.75% due 06/15/05 ................................... 150 158
KFW International Finance - Debs.
9.125% due 05/15/01 .................................. 300 303
Morgan Stanley, Dean Witter, Discover & Co. -
Notes
6.875% due 03/01/03 .................................. 200 202
Newcourt Credit Group, Inc. Ser. B
6.875% due 02/16/05 .................................. 100 99
Qwest Capital Funding - 144A (a)
7.9% due 08/15/10 .................................... 90 92
Sumitomo Bank International Finance NV -
Notes
8.5% due 06/15/09 .................................... 100 107
Washington Mutual Capital I
8.375% due 06/01/27 .................................. 60 56
------
1,987
Food, Beverage & Tobacco - 1.3%
Archer Daniels Midland Co. - Notes
6.25% due 05/15/03 ................................... 275 275
Coca-Cola Enterprises, Inc. - Debs.
8.5% due 02/01/22 .................................... 100 115
Conagra, Inc. - Debs.
9.75% due 03/01/21 ................................... 75 91
Pepsi Bottling Group, Inc. - Sr.
Notes Ser. B
7.0% due 03/01/29 .................................... 100 99
Philip Morris Cos., Inc. - Debs.
8.25% due 10/15/03 ................................... 100 103
SUPERVALU, Inc. - Notes
7.625% due 09/15/04 .................................. 150 153
------
836
Foreign Governmental - 2.5%
Government of New Zealand - Debs.
8.75% due 12/15/06 ................................... 120 135
Hydro-Quebec
8.4% due 01/15/22 .................................... 100 115
Kingdom of Sweden - Debs.
12.0% due 02/01/10 ................................... 75 103
Malaysia - Bonds
8.75% due 06/01/09 ................................... 50 54
Province of Manitoba - Debs.
6.875% due 09/15/02 .................................. 200 203
Province of Newfoundland - Debs.
9.0% due 10/15/21 .................................... 60 71
125
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
BOND INDEX FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - Continued
Foreign Governmental - Continued
Province of Ontario
8.0% due 10/17/01 ................................. $ 200 $ 203
Province of Quebec - Debs.
7.5% due 07/15/23 ................................. 100 106
Republic of Greece - Notes
6.95% due 03/04/08 ................................ 150 156
Republic of Korea
8.75% due 04/15/03 ................................ 85 88
8.875% due 04/15/08 ............................... 100 108
Spain Kingdom
7.0% due 07/19/05 ................................. 250 261
--------
1,603
Health Care Products - 0.1%
Eli Lilly & Co. - Notes
7.125% due 06/01/25 ............................... 80 82
Insurance - 0.7%
Aetna Inc.
7.625% due 08/15/26 ............................... 100 98
ALL STATE Corp.
7.2% due 12/01/09 ................................. 150 154
Hartford Life, Inc. Debs.
7.65% due 06/15/27 ................................ 50 51
Torchmark, Inc. - Debs.
8.25% due 08/15/09 ................................ 100 106
Travelers Property Casualty Corp. -
Sr. Notes
7.75% due 04/15/26 ................................ 50 51
--------
460
Machinery - 0.4%
Caterpillar, Inc. - Debs.
8.0% due 02/15/23 ................................. 50 53
Reliance Electric Co. - Notes
6.8% due 04/15/03 ................................. 200 205
--------
258
Media - TV / Radio - 0.8%
News America Holdings, Inc. - Debs.
7.7% due 10/30/25 ................................. 100 91
TCI Communciations, Inc. - Sr. Notes
7.125% due 02/15/28 ............................... 70 62
The Walt Disney Co. - Sr. Notes
6.75% due 03/30/06 ................................ 200 206
Time Warner Entertainment, Inc. - Sr.
Notes
8.375% due 07/15/33 ............................... 100 109
Viacom, Inc.
7.875% due 07/30/30 ............................... 50 51
--------
519
Metals & Mining - 0.3%
Noranda, Inc. - Debs.
7.0% due 07/15/05 ................................. 200 195
Natural Gas Distribution - 0.4%
Enron Corp. - Notes
6.75% due 09/15/04 ................................ 100 101
Pacific Gas & Electric Co.
6.75% due 10/01/23 ................................ 50 34
Tennessee Gas Pipeline - Bonds
7.5% due 04/01/17 ................................. 100 100
--------
235
Oil - 0.5%
Atlantic Richfield Co. (ARCO) - Notes
5.55% due 04/15/03 ................................ 75 75
Conoco, Inc. - Sr. Notes
6.95% due 04/15/29 ................................ 90 88
Occidental Petroleum Corp. - Debs.
7.2% due 04/01/28 ................................. 40 38
Tosco Corp. - Notes
7.625% due 05/15/06 ............................... 115 120
--------
321
Oil & Natural Gas Exploration & Production - 0.6%
Burlington Resources, Inc - Debs.
9.125% due 10/01/21 ............................... 90 106
Norsk Hydro A/S
7.25% due 09/23/27 ................................ 75 72
Phillips Petroleum Co. - Debs.
6.65% due 07/15/18 ................................ 50 47
Trans-Canada Pipelines
7.7% due 06/15/29 ................................. 100 100
Union Oil Co. of California
7.5% due 02/15/29 ................................. 60 60
--------
385
Oil - Equipment & Service - 0.4%
Coastal Corp. - Debs.
6.5% due 06/01/08 ................................. 100 97
Petroleum-Geo Services ASA - Sr. Notes
6.625% due 03/30/08 ............................... 175 163
--------
260
Paper & Forest Products - 0.3%
Bowater, Inc. - Debs.
9.0% due 08/01/09 ................................. 100 106
Champion International Corp. - Debs.
7.35% due 11/01/25 ................................ 50 47
Westvaco Corp. - Notes
7.1% due 11/15/09 ................................. 35 34
--------
187
Personal & Commercial Lending - 3.9%
Aristar, Inc. - Sr. Notes
6.5% due 11/15/03 ................................. 200 199
126
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
BOND INDEX FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - Continued
Personal & Commercial Lending - Continued
CitiFinacial Credit Co. - Notes
5.9% due 09/01/03 ................................. $ 150 $ 149
Ford Motor Co. - Bonds
6.625% due 02/15/28 ............................... 50 42
Ford Motor Credit Co.
6.125% due 01/09/06 ............................... 300 289
Ford Motor Credit Co. - Sr. Notes
5.75% due 02/23/04 ................................ 800 774
General Motors Acceptance Corp.
5.85% due 01/14/09 ................................ 250 229
General Motors Acceptance Corp. - Notes
9.625% due 12/15/01 ............................... 350 361
Household Finance Corp. - Notes
6.5% due 11/15/08 ................................. 280 269
Toyota Motor Credit Corp. - Notes
5.5% due 12/15/08 ................................. 60 56
U.S. West Capital Funding , Inc.
6.5% due 11/15/18 ................................. 150 130
--------
2,498
Real Estate Investment Trust - 0.0%
Spieker Properties, Inc. - Debs.
7.5% due 10/01/27 ................................. 40 36
Retail - Department Stores - 0.5%
Dayton Hudson Corp. - Debs.
6.75% due 01/01/28 ................................ 25 23
Gap, Inc. - Notes
6.9% due 09/15/07 ................................. 100 96
Wal Mart Stores, Inc.
6.875% due 08/10/09 ............................... 100 104
Wal-Mart Stores, Inc. - Debs.
6.75% due 10/15/23 ................................ 100 101
--------
324
Retail - Food - 0.4%
Albertson's, Inc. - Notes
6.625% due 06/01/28 ............................... 50 41
McDonald's Corp. - Sub. Debs.
7.31% due 09/15/27 ................................ 60 58
Safeway, Inc.
7.25% due 09/15/04 ................................ 150 154
--------
253
Telecommunication Equipment - 0.3%
GTE Corp. - Debs.
6.94% due 04/15/28 ................................ 100 93
Lucent Technologies, Inc. - Debs.
6.5% due 01/15/28 ................................. 50 34
Lucent Technologies, Inc. - Notes
7.25% due 07/15/06 ................................ 100 93
--------
220
Telecommunication Services - 0.9%
AT&T Canada, Inc. - Sr. Notes
7.65% due 09/15/06 ................................ 150 147
Bell Canada
7.75% due 04/01/06 ................................ 125 130
BellSouth Telecommunications, Inc. - Debs.
7.0% due 10/01/25 ................................. 100 95
Deutsche Telekom International Finance
8.25% due 06/15/30 ................................ 100 99
Vodafone Group plc
7.75% due 02/15/10 ................................ 100 104
--------
575
Telephone - 1.6%
ALLTEL Corp. - Sr. Notes
7.6% due 04/01/09 ................................. 100 101
AT&T Corp. - Notes
6.0% due 03/15/09 ................................. 200 178
6.5% due 03/15/29 ................................. 60 48
Comcast Cable Communications - Notes
8.875% due 05/01/17 ............................... 75 83
MCI Worldcom, Inc. - Sr. Notes
6.4% due 08/15/05 ................................. 200 192
New York Telephone Co. - Debs.
7.25% due 02/15/24 ................................ 100 93
SBC Communications Capital Corp. - Debs.
5.875% due 06/01/03 ............................... 100 99
South Carolina Electric & Gas - 1st Mtge.
7.5% due 06/15/23 ................................. 100 97
Sprint Capital Corp.
6.875% due 11/15/28 ............................... 150 120
--------
1,011
Transportation Services - 1.0%
American Airlines, Inc. - Pass Through
Certificates
7.024% due 04/15/11 ................................ 60 61
Burlington Northern Railroad Company
6.125% due 03/15/09 ................................ 150 144
CSX Corp. - Debs.
7.45% due 05/01/07 ................................. 125 128
Delta Air Lines, Inc. - Debs.
10.375% due 12/15/22 ............................... 100 107
Norfolk Southern Corp. - Notes
7.35% due 05/15/07 ................................. 125 128
Union Pacific Corp. - Debs.
6.625% due 02/01/29 ................................ 85 77
--------
645
U.S. Government Agencies - 23.2%
Federal Home Loan Bank - Bonds
5.58% due 08/17/01 ................................. 300 299
6.75% due 02/15/02 ................................. 1,600 1,627
7.1% due 04/10/07 .................................. 500 532
127
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
BOND INDEX FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - Continued
U.S. Government Agencies - Continued
Federal Home Loan Bank Disc. Corp. - Sr.
Notes
5.8% due 09/02/08 ................................ $ 225 $ 223
Federal Home Loan Mortgage Corp.
5.125% due 10/15/08 .............................. 400 379
6.625% due 09/15/09 .............................. 1,000 1,042
7.0% due 07/15/05 ................................ 500 525
Federal Home Loan Mortgage Corp. - Notes
5.75% due 04/15/08 ............................... 750 742
5.75% due 07/15/03 ............................... 800 802
6.3% due 06/01/04 ................................ 300 299
6.875% due 01/15/05 .............................. 150 156
Federal National Mortgage Assoc.
5.125% due 02/13/04 .............................. 230 227
6.375% due 06/15/09 .............................. 600 615
Federal National Mortgage Assoc. - Bonds
6.25% due 05/15/29 ............................... 465 467
Federal National Mortgage Assoc. - Notes
4.75% due 11/14/03 ............................... 175 171
5.375% due 03/15/02 .............................. 450 448
5.625% due 05/14/04 .............................. 1,100 1,098
5.875% due 04/23/04 .............................. 300 296
6.0% due 05/15/08 ................................ 340 341
6.19% due 02/19/09 ............................... 120 117
6.5% due 04/29/09 ................................ 200 199
7.125% due 03/15/07 .............................. 525 560
7.125% due 01/15/30 .............................. 359 402
Financing Corp. - Bonds
8.6% due 09/26/19 ................................ 150 188
U.S. Treasury - Bonds
9.0% due 11/15/18 ................................ 1,000 1,387
9.125% due 05/15/09 .............................. 750 834
U.S. Treasury - Notes
5.75% due 10/31/02 ............................... 1,000 1,009
--------
14,985
U.S. Governmental - 41.0%
U.S. Treasury - Notes
6.625% due 04/30/02 .............................. 750 761
U.S. Treasury - Bonds
5.5% due 08/15/28 ................................ 2,175 2,157
6.5% due 11/15/26 ................................ 185 208
6.75% due 08/15/26 ............................... 775 897
8.125% due 08/15/21 .............................. 1,100 1,438
8.75% due 05/15/17 ............................... 1,265 1,699
8.75% due 08/15/20 ............................... 2,000 2,747
9.25% due 02/15/16 ............................... 550 760
10.75% due 08/15/05............................... 600 736
11.125% due 08/15/03.............................. 2,000 2,285
11.25% due 02/15/15............................... 260 406
11.75% due 02/15/10............................... 250 308
11.75% due 11/15/14............................... 465 674
U.S. Treasury - Notes
5.625% due 05/15/08............................... 1,200 1,231
5.75% due 04/30/03................................ 2,000 2,027
5.875% due 11/15/05............................... 1,400 1,448
6.375% due 08/15/02............................... 960 976
6.5% due 05/31/02................................. 1,600 1,624
6.75% due 05/15/05................................ 300 320
7.5% due 11/15/01................................. 1,000 1,016
7.5% due 05/15/02................................. 450 462
7.875% due 11/15/04............................... 2,000 2,190
United Mexican States - Notes
9.875% due 02/01/10............................... 220 237
--------
26,607
--------
TOTAL PUBLICLY-TRADED BONDS- 96.5% 62,473
SHORT-TERM INVESTMENTS - 1.8%
Investment in joint trading account (Note B)
6.695% due 01/02/01............................... 1,166 1,167
------- --------
TOTAL INVESTMENTS- 98.3% 63,640
Cash and Receivables, less payables- 1.7% 1,128
------- --------
NET ASSETS- 100.0% 64,768
See notes to financial statements.
(a) Pursuant to Rule 144A (a) under the Securities Act of 1993, these
securities may be resold in transactions exempt from registration, normally
to qualified institutional buyers. At December 31, 2000, securities
aggregated $92 or 0.14% of net assets of the Portfolio.
128
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
LARGE CAP AGGRESSIVE GROWTH FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Aerospace & Defense - 4.6%
Honeywell International, Inc. .................... 25,800 $ 1,221
Brokerage & Investment Management - 2.6%
Goldman Sachs Group, Inc. ........................ 100 11
Merrill Lynch & Co., Inc. ........................ 4,200 287
Morgan Stanley, Dean Witter, Discover & Co. ...... 4,900 388
-------
686
Business Services - 0.4%
i2 Technologies, Inc. * .......................... 2,000 109
Computer Equipment - 3.2%
Intel Corp. ...................................... 11,100 334
Juniper Networks, Inc. * ......................... 1,400 176
VERITAS Software Corp. * ......................... 3,600 315
-------
825
Computer Software & Services - 9.0%
BEA Systems, Inc. ................................ 2,100 141
EMC Corp. * ...................................... 18,300 1,217
Microsoft Corp. .................................. 4,900 213
Oracle Corp. * ................................... 17,900 520
Sun Microsystems, Inc. * ......................... 9,800 273
-------
2,364
Cosmetic & Personal Care - 1.6%
Colgate-Palmolive Co. ............................ 6,200 400
Diversified Operations - 6.9%
Corning, Inc. .................................... 3,300 174
General Electric Co. ............................. 3,800 182
Tyco International, Ltd. ......................... 25,900 1,438
-------
1,794
Electronic Products & Services - 10.4%
Applied Materials, Inc. * ........................ 9,700 371
Applied Micro Circuits Corp. * ................... 2,394 180
Cisco Systems, Inc. * ............................ 38,700 1,480
Micron Technology, Inc. * ........................ 5,800 206
PMC-Sierra, Inc. * ............................... 2,000 157
SDL, Inc. * ...................................... 900 133
Solectron Corp. * ................................ 5,600 190
-------
2,717
Financial Services - 9.3%
Citigroup, Inc. .................................. 31,308 1,599
Household International, Inc. .................... 7,200 396
Jersey Puerto Morgan Chase & Co. ................. 9,600 436
-------
2,431
Health Care Products - 13.7%
Human Genome Sciences, Inc. * .................... 4,800 333
Medtronic, Inc. .................................. 5,900 356
Pfizer, Inc. ..................................... 33,200 1,527
Pharmacia Corp. .................................. 6,900 421
Schering-Plough Corp. ............................ 16,500 936
-------
3,573
Insurance - 0.9%
American International Group, Inc. ............... 2,600 256
Media - Publishing - 2.8%
AT&T Corp. - Liberty Media Group - Cl. A * ....... 54,100 734
Media - TV / Radio - 7.1%
Time Warner, Inc. ................................ 25,900 1,353
Viacom, Inc. - Cl. B * ........................... 11,299 528
-------
1,881
Personal & Commercial Lending - 4.1%
MBNA Corp. ....................................... 29,300 1,082
Retail - Department Stores - 5.2%
Home Depot, Inc. ................................. 17,200 786
Kohl's Corp. ..................................... 9,500 579
-------
1,365
Retail - Drug Stores - 1.2%
Walgreen Co. ..................................... 7,600 318
Telecommunication Equipment - 7.8%
Nokia Oyj - ADR .................................. 33,200 1,444
Nortel Networks Corp. ............................ 17,100 548
TyCom, Ltd. ...................................... 2,700 61
-------
2,053
Telecommunication Services - 3.0%
Vodafone Group plc .............................. 22,500 806
Telephone - 1.4%
AT&T Wireless Group * ........................... 22,600 391
U.S. Government Agencies - 2.3%
Federal Home Loan Mortgage Corp. ................ 8,700 599
-------
TOTAL COMMON STOCK- 97.5% 25,605
Par
Value
(000's)
COMMERCIAL PAPER - 4.3%
Prudential Funding Corp. ..........................
6.54% due 01/04/01 ............................. $1,122 1,122
------- -------
TOTAL INVESTMENTS- 101.8% 26,727
Payables, less cash and receivables- (1.8)% (483)
------- -------
NET ASSETS- 100.0% 26,244
======= =======
* Non-income producing security.
ADR-American Depository Receipt
See notes to financial statements.
129
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
SMALL/MID CAP CORE FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Aerospace & Defense - 0.5%
GenCorp, Inc. ..................................... 2,600 $ 25
HEICO Corp. ....................................... 1,200 19
Kaman Corp. - Cl. A ............................... 1,600 27
Teledyne Technologies, Inc. * ..................... 1,000 24
The Titan Corp. * ................................. 1,000 16
------
111
Agricultural Operations - 0.1%
Agribrands International, Inc. * .................. 600 32
Auto & Truck Parts - 1.5%
Autoliv, Inc. ..................................... 1,400 22
AutoZone, Inc. * .................................. 1,300 37
B.F. Goodrich Co. ................................. 1,300 47
Bandag, Inc. ...................................... 800 33
Cummins Engine Company, Inc. ...................... 1,300 49
Lear Corp. * ...................................... 1,600 40
Navistar International Corp., Inc. - Cl. B ........ 1,800 47
Superior Industries International, Inc. ........... 1,000 32
Visteon Corp. * ................................... 1,500 17
------
324
Automobile - 0.2%
Oshkosh Truck Corp. ............................... 900 40
Bank - 6.0%
BancorpSouth, Inc. ................................ 675 8
Bancwest Corp. .................................... 4,500 118
Banknorth Group, Inc. ............................. 1,725 34
Capitol Federal Financial ......................... 2,000 34
Cathay Bancorp, Inc. .............................. 1,000 59
City National Corp. ............................... 1,900 74
Commerce Bancshares, Inc. ......................... 1,680 72
CORUS Bankshares, Inc. ............................ 1,500 74
Cullen/Frost Bankers, Inc. ........................ 2,800 117
Dime Bancorp, Inc. ................................ 2,200 65
Downey Financial Corp. ............................ 1,800 99
F & M National Corp. .............................. 1,000 26
First Citizens BancShares, Inc. - Cl. A ........... 300 24
First Sentinel Bancorp, Inc. ...................... 1,400 16
First Virginia Banks, Inc. ........................ 1,300 62
GBC Bancorp. ...................................... 800 31
Hancock Holding Co. ............................... 1,300 50
Hibernia Corp. - Cl. A ............................ 1,800 23
Imperial Bancorp * ................................ 2,700 71
Mercantile Bankshares Corp. ....................... 2,400 104
Net.B@nk, Inc. * .................................. 500 3
North Fork Bancorporation, Inc. ................... 1,100 27
OceanFirst Financial Corp. ........................ 1,300 32
Omega Financial Corp. ............................. 600 16
Silicon Valley Bancshares * ....................... 1,400 48
United Community Financial Corp. .................. 1,900 13
------
1,300
Brokerage & Investment Management - 1.6%
A.G. Edwards, Inc. ................................ 1,800 85
Affiliated Managers Group, Inc. * ................. 1,200 66
Jefferies Group, Inc. ............................. 1,800 56
John Nuveen Co. - Cl. A ........................... 1,300 75
Raymond James Financial, Inc. ..................... 1,500 52
Southwest Securities Group, Inc. .................. 760 20
------
354
Business Services - 1.2%
Comdisco, Inc. .................................... 2,200 25
DiamondCluster, Inc. * ............................ 900 28
Express Scripts, Inc. - Cl. A * ................... 500 51
Forrester Research, Inc. * ........................ 500 25
Harris Corp. ...................................... 1,100 34
Heidrick & Struggles International, Inc. ......... 900 38
Manpower, Inc. .................................... 1,300 49
------
250
Chemical - 2.2%
Albemarle Corp. ................................... 2,200 54
Arch Chemicals, Inc. .............................. 1,300 23
Ashland, Inc. ..................................... 2,800 100
Cabot Corp. ....................................... 1,600 42
ChemFirst, Inc. ................................... 1,200 26
Crompton Corp. .................................... 1,300 14
Cytec Industries, Inc. * .......................... 1,100 44
Eastman Chemical Co. .............................. 1,600 78
IMC Global, Inc. .................................. 1,200 19
Lubrizol Corp. .................................... 1,500 39
Millennium Chemicals, Inc. ........................ 1,300 24
W.R. Grace & Co. .................................. 2,900 9
------
472
Commercial Services - 3.4%
ACNielson Corp. * ................................. 1,100 40
ADVO, Inc. ........................................ 1,300 58
Brady Corp. - Cl. A ............................... 900 30
CSG Systems International, Inc. * ................. 600 28
Data Broadcasting Corp. * ......................... 900 3
F.Y.I., Inc. * .................................... 800 30
Fair Issac & Co., Inc. ............................ 900 46
Identix, Inc. * ................................... 400 3
Informix Corp. * .................................. 3,150 9
Lamar Advertising Co. * ........................... 800 31
Macrovision Corp. * ............................... 400 30
MarchFirst, Inc. * ................................ 2,732 4
Paxar Corp. * ..................................... 1,500 15
Plexus Corp. * .................................... 600 18
Power One, Inc. * ................................. 500 20
Quanta Services, Inc. * ........................... 1,350 44
R.R. Donnelley & Sons Co. ......................... 1,700 46
RENT A CAR * ...................................... 2,000 69
Standard Register Co. ............................. 1,500 21
Steelcase, Inc. - Cl. A ........................... 3,700 51
130
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
SMALL/MID CAP CORE FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Commercial Sevices - Continued
Sybase, Inc. * ........................ 2,100 $ 42
Sylvan Learning Systems, Inc. * ....... 1,300 19
TeleTech Holdings, Inc. * ............. 1,700 31
True North Communications ............. 1,000 43
Wackenhut Corp. - Cl. A ............... 600 8
--------
739
Computer Equipment - 1.3%
Cerner Corp. * ........................ 800 37
Diebold, Inc. ......................... 1,400 47
Extreme Networks, Inc. * .............. 600 23
InFocus Corp. * ....................... 800 12
Intergraph Corp. ...................... 600 4
Mentor Graphics Corp. * ............... 1,700 47
Predictive Systems, Inc. * ............ 1,900 13
Quantum Corp. - DLT & Storage * ....... 1,400 19
SanDisk Corp. * ....................... 900 25
Silicon Storage Technology, Inc. * .... 1,100 13
Tech Data Corp. * ..................... 1,600 43
--------
283
Computer Software & Services - 7.1%
About.com, Inc. * ..................... 100 3
Actuate Software Corp ................. 700 13
Acxiom Corp. * ........................ 1,400 55
Advent Software, Inc. * ............... 400 16
Affiliated Computer Services, Inc. -
Cl. A ................................ *800 49
Agile Software Corp. * ................ 300 15
Art Technology Group, Inc. * .......... 600 18
Aspen Technologies, Inc. * ............ 400 13
Autodesk, Inc ......................... 700 19
Avant! Corp. * ........................ 1,600 29
Avocent Corporation * ................. 700 19
Barra, Inc. * ......................... 1,050 49
Black Box Corp. * ..................... 400 19
Broadbase Software, Inc. * ............ 600 4
CacheFlow, Inc. * ..................... 200 3
Cadence Design Systems, Inc. * ........ 2,600 71
Ceridian Corp. * ...................... 1,300 26
CheckFree Corp ........................ 600 26
Clarent Corp. * ....................... 400 5
CNET Networks, Inc .................... 1,100 18
Cognizant Technology Solutions Corp ... 500 18
Critical Path, Inc. * ................. 600 18
Digex, Inc. * ......................... 400 9
Digital Insight Corp. * ............... 400 7
Digital Island, Inc. * ................ 800 3
Documentum, Inc. * .................... 500 25
E.piphany, Inc. * ..................... 800 43
EarthLink, Inc. * ..................... 761 4
Echelon Corp. * ....................... 300 5
F5 Networks, Inc. * ................... 100 1
FileNet Corp. * ....................... 1,000 27
Frontline Capital Group ............... 100 1
go.com * .............................. 530 2
GTECH Holdings Corporation ............ 1,800 37
IGATE Capital Corp. ................... 900 3
Informatica Corporation * ............. 600 24
Interliant, Inc ....................... 300 1
Internap Network Services Corp. * ..... 1,000 7
Internet Security System, Inc ......... 300 24
Internet.com Corp. * .................. 200 1
Intertrust Technologies Corp. * ....... 800 3
Interwoven, Inc. * .................... 400 26
Intranet Solutions, Inc. * ............ 200 10
Kana Communications, Inc. * ........... 1,000 12
Keynote Systems, Inc. * ............... 400 6
Liberate Technologies, Inc. * ......... 700 10
LookSmart, Ltd. * ..................... 500 1
Macromedia, Inc. * .................... 600 36
Manugistics Group, Inc. * ............. 400 23
Micromuse, Inc. * ..................... 600 36
Multex.com, Inc. * .................... 300 4
National Data Corp. ................... 1,100 40
NCR Corp. * ........................... 1,600 79
Netegrity, Inc. * ..................... 300 16
NetIQ Corp. * ......................... 500 44
Network Associates, Inc. .............. 1,700 7
NorthPoint Communications Group, Inc. * 700 0
Nuance Communications ................. 100 4
NVIDIA Corp. * ........................ 600 20
Packeteer, Inc. * ..................... 400 5
Parametric Technology Corp. * ......... 2,000 27
PC-Tel, Inc. * ........................ 200 2
Peoplesoft, Inc ....................... 2,000 74
Peregrine Systems, Inc. * ............. 2,000 39
Proxicom, Inc. * ...................... 400 2
PurchasePro.com, Inc. * ............... 300 5
Quest Software, Inc. * ................ 400 11
Radiant Systems, Inc. * ............... 1,100 23
Rainbow Technologies, Inc. * .......... 1,500 24
Red Hat, Inc. * ....................... 800 5
Retek, Inc. * ......................... 545 13
Rhythms NetConnections, Inc. * ........ 600 1
RSA Security, Inc. * .................. 400 21
Safeguard Scientifics, Inc. * ......... 1,300 9
Scient Corp. * ........................ 500 2
SCM Microsystems, Inc. * .............. 200 7
Secure Computing Corp. * .............. 300 3
SonicWall, Inc. * ..................... 300 5
Symantec Corp. * ...................... 1,200 40
Synopsys, Inc. * ...................... 400 19
THQ, Inc. * ........................... 1,200 29
Trizetto Group, Inc. * ................ 100 2
Unigraphics Solutions, Inc. * ......... 1,100 18
Verity, Inc. * ........................ 400 10
VerticalNet, Inc. * ................... 1,200 8
Viant Corp. * ......................... 600 2
131
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
SMALL/MID CAP CORE FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Computer Software & Services - Continued
WatchGuard Technologies, Inc. .......... 200 $ 6
webMethods, Inc. * ..................... 205 18
WebTrends Corp. * ...................... 500 14
--------
1,551
Construction - 1.1%
Centex Construction Products, Inc. ..... 1,300 36
Dain Rauscher Corp. .................... 400 38
Dycom Industries, Inc. * ............... 700 25
EMCOR Group, Inc. * .................... 800 20
Hughes Supply, Inc. .................... 1,600 29
NVR, Inc. * ............................ 600 74
USG Corp. * ............................ 1,300 29
--------
251
Consumer Miscellaneous - 1.5%
Briggs & Stratton Corp. ................ 1,200 53
Concord Camera Corp. * ................. 900 15
GoTo.com, Inc. * ....................... 300 2
Harman International Industries, Inc. .. 800 29
Herbalife International, Inc. - Cl. A .. 1,100 8
Ingram Micro, Inc. - Cl. A * ........... 2,200 25
JAKKS Pacific , Inc .................... 2,300 21
Learning Tree International, Inc. * .... 400 20
Nu Skin Enterprises, Inc. - Cl. A * .... 2,800 15
SCP Pool Corp. * ....................... 800 24
Sherwin-Williams Co. ................... 2,000 53
Toro Co. ............................... 1,600 59
--------
324
Container - 0.3%
Bemis Co., Inc. ........................ 1,600 54
Cosmetic & Personal Care - 0.3%
Alberto-Culver Co. - Cl. B ............. 1,500 64
Diversified Operations - 1.9%
A.O. Smith Corp. ....................... 1,300 22
Actuant Corp. - Cl. A * ................ 900 3
Chemed Corp. ........................... 600 20
Coherent, Inc. * ....................... 1,100 36
GenTek, Inc. ........................... 1,300 22
Harsco Corp. ........................... 1,500 37
Henry Schein, Inc. * ................... 1,900 66
Intermune Pharmaceuticals * ............ 500 22
ITT Industries, Inc. ................... 2,300 89
Pall Corp. ............................. 1,400 30
Reynolds & Reynolds Co. - Cl. A ........ 1,500 30
Trinity Industries, Inc. ............... 1,400 35
--------
412
Electric Power - 4.9%
Allegheny Energy, Inc. ................. 2,700 130
CMS Energy Corp. ....................... 2,000 63
El Paso Electric Company ............... 2,500 33
Energy East Corp. ...................... 5,900 116
NiSource, Inc .......................... 1,800 55
NRG Energy, Inc. * ..................... 3,200 89
Pinnacle West Capital Corp. ............ 2,500 119
PPL Corp ............................... 3,200 145
Public Service Co. of New Mexico ....... 2,700 73
Puget Sound Energy, Inc. ............... 3,200 89
RGS Energy Group, Inc. ................. 3,500 114
UtiliCorp United, Inc. ................. 1,100 34
--------
1,060
Electrical Equipment - 0.6%
Anixter International, Inc. ............ 2,000 43
C&D Technologies, Inc. ................. 700 30
Genlyte Corp. (The) * .................. 1,300 31
Littelfuse, Inc. * ..................... 900 26
---------
130
Electronic Products & Services - 6.6%
Actel Corp. * .......................... 700 17
Aeroflex, Inc. * ....................... 800 23
Alliance Semiconductor Corp. * ......... 800 9
Alliant Energy Corp. ................... 1,700 54
Alpha Industries, Inc. ................. 500 19
Amphenol Corp. - Cl. A * ............... 800 31
Anadigics, Inc. * ...................... 650 11
Anaren Micro Circuits, Inc. ............ 400 27
Arrow Electronics, Inc. * .............. 2,100 60
Asyst Technologies, Inc. * ............. 1,000 13
Audiovox Corp. - Cl. A * ............... 1,200 11
Avnet, Inc. ............................ 2,000 43
Ball Corp. ............................. 1,700 78
Benchmark Electronics, Inc. * .......... 600 14
Brooks Automation, Inc. * .............. 700 20
Cabot Microelectronics Corp. ........... 364 19
Checkpoint Systems, Inc. * ............. 600 5
Cirrus Logic, Inc. * ................... 1,300 24
Cognex Corp. * ......................... 600 13
Credence Systems Corp. * ............... 1,300 30
Cree, Inc. * ........................... 800 28
CyberOptics Corp. ...................... 900 15
Cymer, Inc. * .......................... 900 23
Cytyc Corp. * .......................... 600 38
Dallas Semiconductor Corp. ............. 1,300 33
DSP Group, Inc. * ...................... 500 11
Elantec Semiconductor, Inc. * .......... 500 14
Electro Scientific Industries, Inc. * .. 600 17
Emulex Corp. * ......................... 600 48
Entrust Technologies, Inc. ............. 600 8
Exar, Corp. * .......................... 800 25
FEI Company * .......................... 600 14
General Semiconductor, Inc. ............ 600 4
II-VI, Inc. * .......................... 1,000 15
Intersil Holding Corp. * ............... 900 21
Kemet Corp. * .......................... 2,400 36
132
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
SMALL/MID CAP CORE FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Electronic Products & Services - Continued
Kent Electronics Corp. * .............. 1,100 $ 18
Lam Research Corp. * .................. 1,600 23
Lattice Semiconductor Corp. * ......... 1,500 28
LTX Corp. * ........................... 800 10
Mattson Technology, Inc. * ............ 1,200 12
MIPS Technologies, Inc. - Cl.A * ...... 600 16
Molecular Devices, Corp. * ............ 300 21
Moog, Inc. - Cl. A * .................. 1,000 29
Newport Corp. ......................... 400 31
PerkinElmer, Inc. ..................... 500 53
QLogic Corp. * ........................ 900 69
Sawtek, Inc. * ........................ 300 14
Sensormatic Electronics Corp. * ....... 1,200 24
Silicon Valley Group, Inc. * .......... 1,700 49
Technitrol, Inc. ...................... 400 16
Tektronix, Inc. ....................... 1,400 47
Three-Five Systems, Inc. * ............ 500 9
TranSwitch Corp. * .................... 900 35
Trimble Navigation, Ltd. * ............ 300 7
Ultimate Electronics, Inc. ............ 600 13
Vicor Corp. * ......................... 600 18
Virata, Corp. * ....................... 400 4
Woodhead Industries, Inc. ............. 1,300 26
---------
1,443
Financial Services - 2.0%
Advanta Corp. - Cl. A ................. 1,600 14
AmeriCredit Corp. * ................... 1,800 49
Ameritrade Holding Corporation * ...... 800 6
BlackRock, Inc. * ..................... 1,100 46
First Tennessee National Corp. ........ 1,700 49
Frontier Financial Corp. .............. 1,000 25
GreenPoint Financial Corp. ............ 3,200 131
Heller Financial, Inc. ................ 1,600 49
Rollins Truck Leasing Corp. ........... 1,500 12
S1 Corp. * ............................ 400 2
UIL Holding Corp. ..................... 1,300 65
---------
448
Food, Beverage & Tobacco - 3.3%
Brown-Forman Corp. - Cl. B ............ 2,400 160
Constellation Brands, Inc. - Cl. A * .. 900 53
Corn Products International, Inc. ..... 1,200 35
Fleming Cos., Inc. .................... 1,300 15
IBP, Inc. ............................. 1,000 27
J.M. Smucker Co. ...................... 1,300 36
NBTY, Inc. * .......................... 1,400 7
Pepsi Bottling Group, Inc. ............ 2,100 84
Pilgrims Pride Corp. - Cl. B .......... 1,300 10
R.J. Reynolds Tobacco Holdings,
Inc. * .............................. 2,800 136
Robert Mondavi Corp. - Cl. A * ........ 800 43
Sensient Technologies Corp. ........... 1,600 36
Suiza Foods Corp. * ................... 1,000 48
SUPERVALU, Inc. ....................... 1,700 24
---------
714
Foreign Governmental - 0.1%
Interface, Inc. ....................... 2,100 18
Health Care Products - 7.0%
Abgenix, Inc. * ....................... 1,100 65
Alpharma, Inc. - Cl. A ................ 900 39
Andrx Corp - Andrx Group * ............ 700 41
Apogent Technologies, Inc. * .......... 700 14
Applera Corporation - Celera
Genomics Group * .................... 700 25
Aurora Biosciences Corp. * ............ 500 16
Beckman Coulter, Inc. ................. 1,200 50
Bergen Brunswig Corp. - Cl. A ......... 2,900 46
C.R. Bard, Inc. ....................... 800 37
Celgene Corp. * ....................... 1,000 33
Cell Genesys, Inc. * .................. 1,300 30
CuraGen Corp. * ....................... 500 14
DENTSPLY International, Inc. .......... 1,300 51
Diagnostic Products Corporation ....... 1,100 60
Elan Corp. plc - ADR * ................ 1
ENZON, Inc. ........................... 300 19
Gilead Sciences, Inc. * ............... 300 25
Haemonetics Corp. * ................... 900 28
ICN Pharmaceuticals, Inc. ............. 2,600 80
Immunogen, Inc. ....................... 600 13
Incyte Pharmaceuticals, Inc. * ........ 1,100 27
Invitrogen Corp. * .................... 400 35
King Pharmaceuticals, Inc. * .......... 1,650 85
Laboratory Corporation of America
Holdings ............................ 300 53
Maxim Pharmaceuticals, Inc. * ......... 700 4
Maxygen, Inc. * ....................... 500 12
Medarex, Inc. * ....................... 1,000 41
Medicis Pharmaceutical Corp. - Cl. A .. 700 41
MiniMed, Inc. * ....................... 500 21
Mylan Laboratories, Inc. .............. 3,400 86
Myriad Genetics, Inc. * ............... 300 25
Noven Pharmaceuticals, Inc. * ......... 600 22
Owens and Minor, Inc. ................. 2,600 46
Pharmacopeia, Inc. * .................. 800 17
PolyMedica Corporation * .............. 800 27
Praecis Pharmeceuticals, Inc. * ....... 900 26
Priority Healthcare Corp. - Cl. B * ... 800 33
Protein Design Labs, Inc. * ........... 600 52
Respironics, Inc. * ................... 1,300 37
Sybron Dental Specialties * ........... 233 4
Techne Corp. * ........................ 1,000 36
Tularik, Inc. * ....................... 900 26
Vertex Pharmaceuticals, Inc. * ........ 500 36
Vical Incorporated * .................. 1,300 24
Zoll Medical Corporation * ............ 600 21
---------
1,523
133
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
SMALL/MID CAP CORE FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Health Care Services - 3.9%
AmeriPath, Inc. * ..................... 700 $ 18
AmeriSource Health Corp. - Cl. A * .... 1,000 51
Apria Healthcare Group, Inc. * ........ 1,300 39
Beverly Enterprises, Inc. * ........... 1,700 14
Bindley Western Industries, Inc. ...... 1,521 63
Health Management Associates, Inc. -
Cl. A * ............................. 2,100 44
HEALTH NET, Inc. ...................... 1,800 47
HEALTHSOUTH Corp. * ................... 4,400 72
Idec Pharmaceuticals Corp. ............ 400 76
Oxford Health Plans, Inc. * ........... 1,100 43
PacifiCare Health Systems, Inc. * ..... 2,900 44
Quest Diagnostics, Inc. * ............. 400 57
St. Jude Medical, Inc. * .............. 1,000 61
Syncor International Corporation * .... 800 29
Triad Hospitals, Inc. * ............... 800 26
Trigon Healthcare, Inc. * ............. 700 54
Universal Health Services, Inc. - Cl. B * 700 78
WebMD Corp. * ......................... 2,700 21
---------
837
Household Appliances / Furnishings - 0.6%
Aaron Rents, Inc. ..................... 1,000 14
CompX International, Inc. * ........... 1,000 9
Mohawk Industries, Inc. * ............. 1,300 35
Rent-Way, Inc. * ...................... 1,100 5
Salton, Inc. * ........................ 900 19
Springs Industries, Inc. - Cl. A ...... 1,500 49
---------
131
Housing - 1.1%
American Standard Cos., Inc. ........... 1,100 54
Centex Corp. ........................... 1,700 64
D.R. Horton, Inc. ...................... 1,317 32
Kaufman & Broad Home Corp. ............. 1,200 41
Pulte Corp. ............................ 900 38
---------
229
Insurance - 3.9%
Allmerica Financial Corp. .............. 700 51
Ambac Financial Group, Inc. ............ 750 44
Fidelity National Financial, Inc. ...... 1,310 48
LandAmerica Financial Group, Inc. ...... 1,300 53
National Western Life Insurance Co. .... 500 52
Nationwide Financial Services - Cl. A .. 1,600 76
Old Republic International Corp. ....... 3,100 99
Presidential Life Corp. ................ 1,300 19
Radian Group, Inc. ..................... 1,100 83
Stancorp Financial Group, Inc. ......... 1,200 57
The Midland Co. ........................ 900 25
The MONY Group, Inc. ................... 2,600 128
The PMI Group, Inc. .................... 1,200 81
Triad Guaranty, Inc. *.................. 900 30
---------
846
Leisure & Recreation - 1.5%
Anchor Gaming *......................... 800 $ 31
Arctic Cat, Inc. ....................... 1,900 22
Argosy Gaming Co. *..................... 1,300 25
Aztar Corp. *........................... 1,900 25
Brunswick Corp. ........................ 2,600 43
Dover Downs Entertainment *............. 1,300 14
Lodgenet Entertainment Corp. ........... 1,200 21
Park Place Entertainment Corp. *........ 2,600 31
SABRE Group Holdings, Inc. *............ 1,400 60
Ticketmaster Online-CitySearch, Inc. -
Cl. B *................................. 400 3
Trendwest Resorts, Inc. *............... 800 22
World Wrestling Federation
Entertainment, Inc. .................... 1,300 21
---------
318
Machinery - 2.0%
Applied Industrial Technologies, Inc. .. 1,700 35
FMC Corp. *............................. 1,100 79
Imation Corp. *......................... 1,000 16
JLG Industries, Inc. ................... 2,300 24
Nordson Corporation..................... 1,000 26
SPX Corp. .............................. 300 32
Stewart & Stevenson Services, Inc. ..... 900 20
Tecumseh Products Co. - Cl. A........... 900 38
Thermo Electron Corp. *................. 4,400 131
Zebra Technologies Corp. - Cl. A *...... 500 20
---------
421
Media - Publishing - 0.6%
McClatchy Newspapers, Inc. - Cl. A...... 1,300 55
Penton Media, Inc. ..................... 700 19
Pulitzer, Inc. ......................... 1,000 47
---------
121
Media - TV / Radio - 2.0%
A.H. Belo Corp. ........................ 2,600 42
BHC Communications, Inc. - Cl. A *...... 300 39
Chris-Craft Industries , Inc. .......... 800 53
Cox Radio, Inc. - Cl. A *............... 1,500 34
Emmis Communications Corp. ............. 1,200 34
Entercom Communications Corp. *......... 1,100 38
Getty Images, Inc. ..................... 900 29
Hearst-Argyle Television, Inc. *........ 1,500 31
Insight Communications Company, Inc. *.. 1,400 33
Primedia, Inc. ......................... 1,200 14
Radio One, Inc. *....................... 2,300 24
Westwood One, Inc. *.................... 2,600 50
---------
421
Metal Production & Fabrication - 0.3%
Commercial Metals Co.................... 1,300 29
Timken Co. ............................. 1,300 19
Worthington Industries, Inc. ........... 1,600 13
---------
61
134
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
SMALL/MID CAP CORE FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Metals & Mining - 0.3%
Precision Castparts Corp. .............. 1,500 $ 63
Natural Gas Distribution - 1.2%
Nicor, Inc. ............................ 1,600 69
Peoples Energy Corp. ................... 3,300 148
UGI Corp. .............................. 1,500 38
---------
255
Oil - 0.2%
ONEOK, Inc. ............................ 1,000 48
Oil & Natural Gas Exploration &
Production - 4.1% ......................
EOG Resources, Inc. .................... 800 44
Equitable Resources, Inc. .............. 1,100 73
Helmerich & Payne, Inc. ................ 2,400 105
Kinder Morgan, Inc. .................... 1,200 63
Murphy Oil Corp. ....................... 1,100 66
Noble Affiliates, Inc. ................. 1,300 60
Ocean Energy, Inc. * ................... 2,700 47
Patina Oil & Gas Corporation ........... 1,300 31
Patterson Energy, Inc. * ............... 700 26
Pride International, Inc. * ............ 1,200 30
Rowan Cos., Inc. * ..................... 1,100 30
Sunoco, Inc. ........................... 1,300 44
Tom Brown, Inc. ........................ 1,300 43
Ultramar Diamond Shamrock Corp. ........ 3,800 117
Valero Energy Corp. .................... 1,700 63
Vintage Petroleum, Inc. ................ 1,600 34
---------
876
Oil - Equipment & Service - 0.7%
Hanover Compressor Co. * ............... 700 31
Marine Drilling Companies, Inc. * ...... 1,400 38
Smith International, Inc. .............. 700 52
Tidewater, Inc. ........................ 900 40
---------
161
Paper & Forest Products - 1.7%
Boise Cascade Corp. .................... 1,200 40
Bowater, Inc. .......................... 1,600 90
Louisiana-Pacific Corp. ................ 3,500 36
Pope & Talbot, Inc. .................... 2,100 35
Rayonier, Inc. ......................... 1,000 40
United Stationers, Inc. * .............. 1,800 43
Westvaco Corp. ......................... 2,700 79
---------
363
Personal & Commercial Lending - 0.4%
Countrywide Credit Industries, Inc. .... 1,100 55
Metris Cos., Inc. ...................... 1,277 34
---------
89
Pollution Control - 0.2%
Republic Services, Inc. - Cl. A ........ 2,300 39
Precious Metals/Gems/Stones - 0.3%
Freeport-McMoRan Copper & Gold, Inc. -
Cl. B ................................ 2,300 20
Homestake Mining Co. ................... 3,800 16
Newmont Mining Corp. ................... 1,900 32
---------
68
Real Estate Development - 0.5%
Lennar Corp. ........................... 1,900 69
Standard Pacific Corp. ................. 1,300 30
---------
99
Real Estate Investment Trust - 5.0%
AMLI Residential Properties Trust ...... 2,000 49
Arden Realty Group, Inc. ............... 2,200 55
Avalonbay Communities, Inc. ............ 2,300 115
Boston Properties, Inc. ................ 1,600 70
CarrAmerica Realty Corp. ............... 2,700 85
Duke Realty Investments, Inc. .......... 3,100 76
First Industrial LP * .................. 1,300 44
General Growth Properties .............. 1,600 58
Highwoods Properties, Inc. ............. 2,600 65
International Rectifier Corp. * ........ 600 18
Kimco Realty Corp. ..................... 1,100 49
Liberty Property Trust ................. 2,300 66
Mack-Cali Realty Corp. ................. 2,000 57
Public Storage, Inc. ................... 2,000 49
Spieker Properties, Inc. ............... 3,200 160
Vornado Realty Trust ................... 1,700 65
---------
1,081
Real Estate Operations - 0.6%
HomeStore.com, Inc. * .................. 600 12
M.D.C. Holdings, Inc. .................. 1,700 56
Security Capital Group, Inc. - Cl. B * . 2,600 52
---------
120
Retail - Department Stores - 3.0%
Abercrombie & Fitch Co. * .............. 1,000 20
AnnTaylor Stores Corp. * ............... 800 20
Barnes & Noble, Inc. * ................. 1,300 34
Borders Group, Inc. * .................. 2,200 26
Cato Corp. - Cl. A ..................... 1,300 18
Coldwater Creek, Inc. .................. 600 19
Dollar Thrifty Automotive Group,
Inc. * ............................... 2,400 45
eToys, Inc. * .......................... 800 0
Family Dollar Stores, Inc. ............. 1,100 24
FREDS , Inc. ........................... 1,000 21
Genesco, Inc. * ........................ 1,200 29
Handleman Co. .......................... 2,200 16
Harcourt General, Inc. ................. 700 40
Haverty Furniture Co., Inc. ............ 1,400 14
Hollywood Entertainment Corp. * ........ 600 1
Hot Topic, Inc. * ...................... 1,600 26
Insight Enterprises, Inc. * ............ 1,100 20
135
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
SMALL/MID CAP CORE FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Retail - Department Stores - Continued
InterTAN, Inc. * ........................... 1,250 $ 15
Michaels Stores, Inc. * .................... 1,000 26
MSC Industrial Direct Co., Inc. - Cl. A .... 1,600 29
Neiman Marcus Group, Inc. - Cl. A .......... 1,600 57
Pier 1 Imports, Inc. ....................... 2,600 27
Shopko Stores, Inc. ........................ 1,100 6
Spiegel, Inc. - Cl. A ...................... 1,600 7
Toys "R" Us, Inc. * ........................ 2,300 38
Tweeter Home Entertainment Group, Inc. ..... 600 7
Venator Group, Inc. ........................ 2,400 37
Zale Corp. * ............................... 1,200 35
---------
657
Retail - Food - 0.9%
Brinker International, Inc. * .............. 1,100 47
Charming Shoppes, Inc. * ................... 1,200 7
Darden Restaurants, Inc. ................... 1,400 32
Landry's Seafood Restaurants, Inc. * ....... 1,000 10
RARE Hospitality International, Inc. * ..... 1,350 30
Ryan's Family Steak Houses, Inc. * ......... 1,200 11
The Great Atlantic & Pacific Tea Co., Inc. . 1,200 8
Webvan Group, Inc. * ....................... 1,500 1
Whole Foods Market, Inc. * ................. 800 49
---------
195
Shoe & Apparel Manufacturing - 0.2%
Liz Claiborne, Inc. ........................ 800 33
Stein Mart, Inc. * ......................... 1,800 21
---------
54
Steel - 0.4%
AK Steel Holding Corp. ..................... 2,800 24
Nucor Corp. ................................ 1,300 52
Remec, Inc. * .............................. 850 8
---------
84
Telecommunication Equipment - 1.3%
Advanced Fibre Communications, Inc. * ...... 1,000 18
Andrew Corp. * ............................. 1,100 24
Cable Design Technologies Corp. ............ 1,650 28
Covad Communications Group, Inc. * ......... 1,600 3
DMC Stratex Networks, Inc. - Notes * ....... 1,200 18
Efficient Networks, Inc. * ................. 300 4
Finisar Corp. * ............................ 800 23
Glenayre Technologies, Inc. * .............. 1,700 6
Harmonic, Inc. * ........................... 517 3
International FiberCom, Inc. ............... 800 4
L-3 Communications Holdings, Corp. * ....... 500 38
Natural MicroSystems Corporation * ......... 700 7
Polycom, Inc. * ............................ 300 10
Powerwave Technologies, Inc. * ............. 400 23
Spectrasite Holdings, Inc. ................. 1,900 25
Tekelec, Inc. .............................. 600 18
Terayon Communication Systems, Inc. * ...... 700 3
TriQuint Semiconductor, Inc. * ............. 600 26
Tut Systems, Inc. .......................... 200 2
World Access, Inc. * ....................... 1,400 3
---------
286
Telecommunication Services - 1.1%
Centennial Cellular Corp. - A Shares * ..... 1,500 28
Citizens Communications Co. ................ 4,200 55
Focal Communications Corp. * ............... 800 6
Greif Bros. Corp. - Cl. A .................. 1,000 28
IDT Corp. * ................................ 300 6
Illuminet Holdings, Inc. * ................. 1,000 23
Leap Wireless International, Inc. * ........ 500 12
Netro Corp. * .............................. 400 3
NTELOS, Inc. * ............................. 900 16
Pac-West Telecomm, Inc. * .................. 1,300 4
RCN Corp. * ................................ 300 2
TALK.com, Inc. * ........................... 800 1
Tollgrade Communications, Inc. ............. 400 15
Travelocity.com * .......................... 300 4
West TeleServices Corp. * .................. 1,300 37
---------
240
Telephone - 0.5%
CenturyTel, Inc. ........................... 2,900 104
Transportation Services - 1.8%
America West Holdings Corp. - Cl. B * ...... 1,300 17
Arkansas Best Corp. * ...................... 1,300 24
Atlas Air, Inc. * .......................... 1,600 52
Continental Airlines, Inc. - Cl. B * ....... 1,200 62
Frontier Airlines, Inc. * .................. 1,600 49
Roadway Express, Inc. ...................... 1,700 36
Ryder System, Inc. ......................... 2,200 37
UAL Corp. .................................. 1,400 54
USFreightways Corp. ........................ 1,000 30
Yellow Corp. * ............................. 1,600 33
---------
394
---------
TOTAL COMMON STOCK- 95.0% 20,558
136
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
SMALL/MID CAP CORE FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
SHORT-TERM INVESTMENTS - 3.7%
Investment in joint repurchase agreement with
Goldman Sachs & Co. dated 12/29/00,
6.481% due 01/02/01 (Secured by various
U.S. Treasury obligations and U.S.
Government Agency Bonds) $ 800 $ 800
------- --------
TOTAL INVESTMENTS- 98.7% 21,358
Cash and Receivables, less payables- 1.3% 278
------- --------
NET ASSETS- 100.0% 21,636
======= ========
* Non-income producing security.
ADR-American Depository Receipt
See notes to financial statements.
137
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
SMALL/MID CAP VALUE FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Auto & Truck Parts - 3.0%
Goodyear Tire & Rubber Co. .................. 18,000 $ 414
Navistar International Corp., Inc. - Cl. B .. 4,500 118
TRW, Inc. ................................... 9,100 352
--------
884
Automobile - 1.1%
Delphi Automotive Systems Corp .............. 28,900 325
Business Services - 0.0%
H & R Block, Inc. ........................... 200 8
Chemical - 6.7%
Agrium, Inc. ................................ 40,300 589
Air Products & Chemicals, Inc. .............. 4,700 193
Crompton Corp. .............................. 12,000 126
Eastman Chemical Co. ........................ 900 44
IMC Global, Inc. ............................ 28,500 443
PolyOne Corp. ............................... 38,900 229
Rohm & Haas Co. ............................. 6,000 218
Solutia, Inc. ............................... 4,900 59
Wellman, Inc. ............................... 4,400 62
--------
1,963
Coal - 0.0%
Massey Energy Co. ........................... 600 8
Commercial Sevices - 1.8%
Informix Corp. * ............................ 42,350 126
Profit Recovery Group International,
Inc. * .................................... 12,300 78
Valassis Communications, Inc. * ............. 10,300 325
--------
529
Computer Equipment - 6.1%
3Com Corp. * ................................ 47,900 407
Apple Computer, Inc. * ...................... 19,900 296
Foundry Networks, Inc. * .................... 18,200 273
Gateway, Inc. * ............................. 14,300 257
Maxtor Corp. * .............................. 600 4
PRI Automation, Inc. * ...................... 4,000 75
Quantum Corp. - DLT & Storage * ............. 21,400 285
Quantum Corp. - Hard Disk Drive * ........... 6,600 53
Silicon Graphics, Inc. * .................... 34,000 136
--------
1,786
Computer Software & Services - 2.5%
Computer Associates International, Inc. ..... 12,600 246
Keane, Inc. * ............................... 13,800 135
Legato Systems, Inc. * ...................... 10,800 80
Midway Games, Inc. * ........................ 23,700 168
Network Associates, Inc. .................... 22,300 93
--------
722
Consumer Miscellaneous - 2.7%
Black & Decker Corp. ........................ 5,200 204
Clorox Co. .................................. 5,000 178
Parker-Hannifin Corp. ....................... 9,250 408
--------
790
Cosmetic & Personal Care - 0.4%
International Flavors & Fragrances, Inc. 5,500 112
Diversified Operations - 2.6%
Cendant Corp. * ............................. 80,800 778
Electric Power - 0.1%
Fluor Corp. * ............................... 600 20
Electrical Equipment - 0.9%
Pentair, Inc. ............................... 10,300 249
UCAR International, Inc. * .................. 1,600 16
--------
265
Electronic Products & Services - 5.5%
Advanced Micro Devices, Inc. * .............. 21,800 301
Arrow Electronics, Inc. * ................... 4,000 115
Avnet, Inc. ................................. 13,700 295
Electronics for Imaging, Inc. * ............. 9,700 135
Lam Research Corp. * ........................ 23,000 333
National Semiconductor Corp. * .............. 13,300 268
Polaroid Corp. .............................. 14,000 81
Teradyne, Inc. * ............................ 2,500 93
--------
1,621
Financial Services - 2.8%
Knight Trading Group, Inc. * ................ 19,000 265
Stillwell Financial, Inc. ................... 14,200 560
--------
825
Food, Beverage & Tobacco - 2.9%
Archer-Daniels-Midland Co. .................. 20,000 300
Dean Foods Co. .............................. 7,200 221
SUPERVALU, Inc. ............................. 20,500 285
Tyson Foods, Inc. - Cl. A ................... 4,500 57
--------
863
Health Care Products - 2.3%
Bausch & Lomb, Inc. ......................... 9,300 376
Boston Scientific Corp. * ................... 22,300 305
--------
681
Health Care Services - 0.0%
HEALTHSOUTH Corp. * ......................... 500 8
Household Appliances / Furnishings - 0.3%
Leggett & Platt, Inc. ....................... 4,000 76
Insurance - 1.7%
Aon Corp. ................................... 10,500 360
Loews Corp. ................................. 1,500 155
--------
515
Leisure & Recreation - 2.4%
Mandalay Resort Group * ..................... 12,800 281
138
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
SMALL/MID CAP VALUE FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Leisure & Recreation - Continued
Six Flags, Inc. ........................ 25,100 $ 431
---------
712
Machinery - 1.4%
Deere & Co. ............................ 4,300 197
Flowserve Corp. ........................ 1,500 32
Ingersoll-Rand Co. ..................... 4,400 184
---------
413
Media - TV / Radio - 4.1%
Emmis Communications Corp. ............. 23,000 660
Entercom Communications Corp. * ........ 16,300 561
---------
1,221
Metals & Mining - 0.3%
Cominco, Ltd. .......................... 4,600 77
Natural Gas Distribution - 0.6%
Wisconsin Energy Corp. ................. 7,100 160
Oil - 3.5%
Key Energy Services, Inc. * ............ 12,300 128
Tosco Corp. ............................ 10,900 370
Varco International, Inc. * ............ 25,000 544
---------
1,042
Oil & Natural Gas Exploration & Production - 5.5%
Devon Energy Corp. * ................... 9,970 608
Noble Affiliates, Inc. ................. 5,200 239
Ocean Energy, Inc. * ................... 500 9
R&B Falcon Corp. * ..................... 23,200 532
Santa Fe International Corp. ........... 7,500 240
---------
1,628
Oil - Equipment & Service - 4.9%
Petroleum Geo-Services ASA * ........... 37,500 499
Tidewater, Inc. ........................ 9,900 439
Weatherford International, Inc. * ...... 10,600 501
---------
1,439
Paper & Forest Products - 4.1%
Abitibi-Consolidated, Inc. ............. 53,800 494
Jefferson Smurfit Group plc - ADR ...... 18,100 353
Smurfit-Stone Container Corp. * ........ 24,800 371
---------
1,218
Pollution Control - 0.5%
Republic Services, Inc. - Cl. A ........ 8,800 151
Retail - Department Stores - 11.4%
AnnTaylor Stores Corp. * ............... 16,500 411
Best Buy Co., Inc. ..................... 14,000 414
Circuit City Stores, Inc. .............. 56,700 652
Consolidated Stores Corp. * ............ 7,300 78
Federated Department Stores, Inc. * .... 10,300 360
Gap, Inc. .............................. 18,100 462
OfficeMax, Inc. ........................ 4,200 12
Shopko Stores, Inc. .................... 5,100 25
Staples, Inc. * ........................ 15,500 183
Williams-Sonoma, Inc. .................. 17,000 340
Zale Corp. * ........................... 14,300 416
---------
3,353
Retail - Drug Stores - 1.5%
TJX Cos., Inc. ......................... 16,100 447
Retail - Food - 0.9%
Albertson's, Inc. ...................... 10,200 270
Shoe & Apparel Manufacturing - 4.0%
Intimate Brands, Inc. .................. 17,900 269
Jones Apparel Group, Inc. * ............ 4,200 135
Nordstrom, Inc. ........................ 6,500 118
Reebok International, Ltd. ............. 14,300 391
Tommy Hilfiger Corp. * ................. 27,200 267
---------
1,180
Steel - 2.2%
AK Steel Holding Corp. ................. 16,401 143
Nucor Corp. ............................ 7,500 298
USX-U.S. Steel Group, Inc. ............. 10,100 182
---------
623
Telecommunication Equipment - 1.3%
Allen Telecom, Inc. .................... 10,700 192
CommScope, Inc. * ...................... 11,500 191
---------
383
Telecommunication Services - 0.4%
Avaya , Inc. * ......................... 11,600 120
Transportation Services - 2.5%
AMR Corp. * ............................ 8,800 345
Delta Air Lines, Inc. .................. 6,500 326
Yellow Corp. * ......................... 2,900 59
---------
730
---------
TOTAL COMMON STOCK- 94.9% 27,946
Par
Value
(000's)
SHORT-TERM INVESTMENTS - 3.3%
Investment in joint trading
account (Note B)
6.695% due 01/02/01 .................... $ 975 975
------ ---------
TOTAL INVESTMENTS- 98.2% 28,921
Cash and Receivables, less payables- 1.8% 515
------ ---------
NET ASSETS- 100.0% 29,436
====== =========
* Non-income producing security.
ADR-American Depository Receipt
See notes to financial statements.
139
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
REAL ESTATE EQUITY FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Real Estate Development - 2.5%
Catellus Development Corp. * ................. 96,700 $ 1,692
Manufactured Home Communities, Inc. .......... 79,200 2,297
---------
3,989
Real Estate Investment Trust - 92.9%
AMB Property Corp. ........................... 118,800 3,067
AMLI Residential Properties Trust ............ 49,700 1,227
Apartment Investment & Management Co. ........ 40,600 2,028
Archstone Communities Trust .................. 209,400 5,392
Arden Realty Group, Inc. ..................... 152,400 3,829
Avalonbay Communities, Inc. .................. 168,545 8,448
Boston Properties, Inc. ...................... 153,900 6,695
Brandywine Realty Trust ...................... 53,300 1,103
BRE Properties, Inc. ......................... 56,200 1,781
Brookfield Properties Corporation ............ 203,600 3,588
Cabot Industrial Trust ....................... 28,300 543
Camden Property Trust ........................ 67,500 2,261
CarrAmerica Realty Corp. ..................... 211,900 6,635
CBL & Associates Properties, Inc. ............ 59,200 1,499
Centerpoint Properties Corp. ................. 19,450 919
Charles E. Smith Residential Realty, Inc. .... 75,200 3,534
Chateau Communities, Inc. .................... 112,000 3,409
Cousins Properties, Inc. ..................... 77,250 2,158
Duke Realty Investments, Inc. ................ 97,739 2,407
Equity Office Properties Trust ............... 350,793 11,445
Equity Residential Properties Trust .......... 139,300 7,705
Essex Property Trust, Inc. ................... 24,500 1,341
Federal Realty Investment Trust .............. 166,800 3,169
FelCor Lodging Trust, Inc. ................... 40,200 962
First Industrial LP * ........................ 33,800 1,149
Frontline Capital Group ...................... 13,700 182
General Growth Properties .................... 33,700 1,220
Hilton Hotels Corp. .......................... 18,000 189
Home Properties of New York, Inc. ............ 25,200 704
Host Marriott Corp. .......................... 234,500 3,034
Kilroy Realty Corp. .......................... 46,850 1,315
Kimco Realty Corp. ........................... 50,000 2,209
Koger Equity, Inc. ........................... 7,200 112
Liberty Property Trust ....................... 87,500 2,499
Mack-Cali Realty Corp. ....................... 75,900 2,168
MeriStar Hospitality Corp. ................... 93,050 1,832
Pacific Gulf Properties, Inc. ................ 54,600 334
Pinnacle Holdings, Inc. * .................... 51,700 469
Post Properties, Inc. ........................ 41,600 1,563
Prentiss Properties Trust .................... 79,150 2,132
Prologis Trust ............................... 224,859 5,003
PS Business Parks, Inc. ...................... 28,200 784
Public Storage, Inc. ......................... 229,100 5,570
Reckson Associates Realty Corp. .............. 29,300 734
Regency Realty Corp. ......................... 50,450 1,195
Simon Property Group, Inc. ................... 256,600 6,158
SL Green Realty Corp. ........................ 27,500 770
Spieker Properties, Inc. ..................... 128,300 6,431
Starwood Hotels & Resorts Worldwide, Inc. .... 106,900 3,768
Storage USA, Inc. ............................ 20,000 635
Summit Properties, Inc. ...................... 2,700 70
Sun Communities, Inc. ........................ 5,000 168
Taubman Centers, Inc. ........................ 35,000 383
The Macerich Co. ............................. 45,800 879
Trizec Hahn Corporation ...................... 186,800 2,825
United Dominion Realty Trust, Inc. ........... 1,800 19
Vornado Realty Trust ......................... 129,800 4,973
Washington Real Estate Investment Trust ...... 35,200 832
Wyndham International, Inc. .................. 24,200 42
---------
147,495
Real Estate Operations - 1.5%
Rouse Co. .................................... 78,800 2,009
Shurgard Storage Centers, Inc. ............... 15,200 372
---------
2,381
---------
TOTAL COMMON STOCK- 96.9% 153,865
Par
Value
(000's)
SHORT-TERM INVESTMENTS - 2.6%
Investment in joint trading account (Note B)
6.695% due 01/02/01 .......................... $ 4,220 4,220
--------- ---------
TOTAL INVESTMENTS- 99.5% 158,085
Cash and Receivables, less payables- 0.5% 726
--------- ---------
NET ASSETS- 100.0% 158,811
========= =========
* Non-income producing security.
See notes to financial statements.
140
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
GROWTH & INCOME FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Aerospace & Defense - 2.2%
Boeing Co. ........................... 100,000 $ 6,600
General Dynamics Corp. ............... 377,844 29,472
Honeywell International, Inc ......... 173,530 8,210
United Technologies Corp. ............ 361,414 28,416
---------
72,698
Auto & Truck Parts - 0.4%
General Motors Corp. - Cl. H ......... 130,658 3,005
Lear Corp. * ......................... 354,098 8,786
---------
11,791
Automobile - 0.4%
Ford Motor Co. ....................... 522,736 12,252
Bank - 5.4%
Bank of America Corp. ................ 744,070 34,134
Bank of New York Co., Inc. ........... 600,000 33,113
Comerica, Inc. ....................... 315,138 18,711
Fifth Third Bancorp. ................. 91,000 5,437
Firstar Corp. ........................ 886,600 20,614
FleetBoston Financial Corp ........... 1,024,464 38,482
J.P. Morgan & Co., Inc ............... 150,400 24,891
State Street Corp. ................... 44,500 5,527
---------
180,909
Brokerage & Investment Management - 0.4%
Goldman Sachs Group, Inc. ............ 57,800 6,181
Morgan Stanley, Dean Witter,
Discover & Co. ....................... 92,800 7,354
---------
13,535
Business Services - 0.6%
Automatic Data Processing, Inc ....... 203,214 12,866
i2 Technologies, Inc. * .............. 148,200 8,058
---------
20,924
Chemical - 1.2%
Air Products & Chemicals, Inc. ....... 367,694 15,076
Dow Chemical Co. ..................... 517,266 18,945
Praxair, Inc. ........................ 150,000 6,656
---------
40,677
Commercial Services - 1.1%
Interpublic Group Cos., Inc .......... 330,662 14,074
Omnicom Group, Inc ................... 254,238 21,070
---------
35,144
Computer Equipment - 6.9%
Brocade Communications Systems, Inc. * 153,100 14,057
Compaq Computer Corp. ................ 359,224 5,406
Comverse Technology, Inc. * .......... 245,910 26,712
Handspring, Inc. ..................... 69,500 2,706
Hewlett-Packard Co ................... 458,208 14,462
Intel Corp ........................... 2,296,228 69,030
Computer Equipment - Continued
International Business Machines
Corp. .............................. 408,036 34,683
Juniper Networks, Inc. * ............. 91,000 11,472
Network Appliance, Inc. * ............ 164,700 10,572
Redback Networks, Inc. * ............. 154,400 6,330
VeriSign, Inc. ....................... 76,900 5,705
VERITAS Software Corp. * ............. 323,962 28,347
---------
229,482
Computer Software & Services - 10.3%
Adobe Systems, Inc ................... 217,900 12,679
Agile Software Corp. * ............... 159,900 7,895
America Online, Inc. * ............... 896,272 31,190
BEA Systems, Inc. .................... 202,900 13,658
EMC Corp. * .......................... 919,304 61,134
First Data Corp ...................... 718,688 37,866
Micromuse, Inc. * .................... 113,700 6,863
Microsoft Corp ....................... 1,712,916 74,298
Oracle Corp. * ....................... 1,464,936 42,575
Siebel Systems, Inc. * ............... 311,702 21,079
Sun Microsystems, Inc. * ............. 1,106,420 30,841
Yahoo!, Inc. * ....................... 92,852 2,801
---------
342,879
Consumer Miscellaneous - 0.7%
Avery Dennison Corp. ................. 232,364 12,751
Black & Decker Corp. ................. 289,314 11,356
---------
24,107
Cosmetic & Personal Care - 0.8%
Avon Products, Inc ................... 135,000 6,463
Colgate-Palmolive Co ................. 180,000 11,619
Procter & Gamble Co. ................. 93,536 7,337
---------
25,419
Diversified Operations - 9.6%
Amgen, Inc. * ........................ 127,300 8,139
Corning, Inc. ........................ 393,900 20,803
El Paso Energy Corp. ................. 343,688 24,617
General Electric Co. ................. 3,451,044 165,435
Illinois Tool Works, Inc ............. 163,245 9,723
Minnesota Mining & Manufacturing Co. . 247,826 29,863
Tyco International, Ltd. ............. 1,107,066 61,442
---------
320,022
Electric Power - 2.3%
Calpine Corp. * ...................... 150,000 6,759
Duke Energy Co. ...................... 241,668 20,602
Exelon Corp. ......................... 300,000 21,063
Pinnacle West Capital Corp. .......... 144,892 6,901
Reliant Energy, Inc .................. 322,874 13,985
Southern Energy, Inc. * .............. 216,100 6,118
---------
75,428
141
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
GROWTH & INCOME FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Electronic Products & Services - 6.5%
Altera Corp. * ...................... 228,288 $ 6,007
Analog Devices, Inc. * .............. 153,386 7,851
Applied Materials, Inc. * ........... 178,526 6,817
Applied Micro Circuits Corp. * ...... 260,700 19,565
Cisco Systems, Inc. * ............... 2,780,144 106,341
Emulex Corp. * ...................... 72,600 5,803
Linear Technology Corp. ............. 163,244 7,550
Maxim Integrated Products, Inc. * ... 104,932 5,017
Micron Technology, Inc. * ........... 123,600 4,388
Motorola, Inc. ...................... 444,000 8,991
PerkinElmer, Inc. ................... 62,100 6,521
PMC-Sierra, Inc. * .................. 96,500 7,587
SDL, Inc. * ......................... 16,600 2,460
Texas Instruments, Inc. ............. 420,506 19,922
Transmeta Corp. * ................... 98,300 2,310
---------
217,130
Financial Services - 4.4%
Charles Schwab Corp. ................ 153,700 4,361
Citigroup, Inc. ..................... 1,908,902 97,473
Mellon Financial Corp. .............. 391,978 19,280
Paychex, Inc. ....................... 158,000 7,683
Stillwell Financial, Inc. ........... 419,062 16,527
---------
145,324
Food, Beverage & Tobacco - 0.9%
Anheuser-Busch Cos., Inc. ........... 205,096 9,332
Philip Morris Cos., Inc. ............ 491,412 21,622
---------
30,954
Health Care Products - 17.4%
Abbott Laboratories ................. 300,000 14,531
Allergan, Inc. ...................... 249,643 24,169
ALZA Corp. * ........................ 281,692 11,972
American Home Products Corp. ........ 875,060 55,610
Andrx Corp - Andrx Group * .......... 55,300 3,200
Applera Corporation - Applied
Biosystems Group .................. 175,200 16,480
Bristol-Myers Squibb Co. ............ 723,248 53,475
Celgene Corp. * ..................... 116,800 3,796
Eli Lilly & Co. ..................... 388,600 36,164
Forest Laboratories, Inc. * ......... 54,300 7,215
Genetech, Inc. * .................... 151,900 12,380
Immunex Corp. * ..................... 94,100 3,823
IVAX Corp. .......................... 108,800 4,167
Johnson & Johnson ................... 517,556 54,376
Laboratory Corporation of America
Holdings .......................... 25,000 4,400
MedImmune, Inc. * ................... 237,300 11,316
Merck & Co., Inc. ................... 832,888 77,979
Millennium Pharmaceuticals, Inc. * .. 103,900 6,429
Pfizer, Inc. ........................ 2,592,251 119,243
Pharmacia Corp. ..................... 347,770 21,214
Schering-Plough Corp. ............... 408,570 23,186
UnitedHealth Group, Inc. ............ 196,100 $ 12,036
---------
577,161
Health Care Services - 0.2%
Quest Diagnostics, Inc. * ........... 57,100 8,108
Insurance - 4.2%
American International Group, Inc. .. 484,338 47,738
Chubb Corp. ......................... 100,000 8,650
Hartford Financial Services
Group, Inc. ....................... 398,762 28,163
Lincoln National Corp. .............. 369,024 17,459
Marsh & McLennan Cos., Inc. ......... 166,056 19,428
St. Paul Cos., Inc. ................. 350,774 19,051
---------
140,489
Machinery - 0.5%
Ingersoll-Rand Co. .................. 366,374 15,342
Media - Publishing - 0.4%
AT&T Corp. - Liberty Media Group -
Cl. A * .......................... 997,162 13,524
Media - TV / Radio - 2.9%
Clear Channel Communications,
Inc. * ............................ 478,944 23,199
Infinity Broadcasting Corp. -
Cl. A * ........................... 341,084 9,529
The Walt Disney Co. ................. 373,296 10,802
Time Warner, Inc. ................... 469,212 24,512
Viacom, Inc. - Cl. B * .............. 625,431 29,239
---------
97,281
Natural Gas Distribution - 0.6%
Enron Corp. ......................... 220,700 18,346
Oil - 1.2%
BJ Services Co. * ................... 122,400 8,430
Royal Dutch Petroleum Co. - NY
Shares ............................ 509,824 30,876
---------
39,306
Oil & Natural Gas Exploration & Production - 3.5%
Chevron Corp. ....................... 204,092 17,233
Exxon Mobil Corp. ................... 832,870 72,408
Kerr-McGee Corp. .................... 158,730 10,625
R&B Falcon Corp. * .................. 103,900 2,383
Transocean Sedco Forex, Inc. ........ 138,500 6,371
USX-Marathon Group .................. 322,936 8,961
---------
117,981
Oil - Equipment & Service - 0.7%
Baker Hughes, Inc. .................. 354,676 14,741
Nabors Industries, Inc. * ........... 152,500 9,021
---------
23,762
142
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
GROWTH & INCOME FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Paper & Forest Products - 0.3%
Kimberly-Clark Corp ............... 146,040 $ 10,324
Retail - Department Stores - 4.7%
Home Depot, Inc. .................. 591,412 27,020
Kohl's Corp. ...................... 401,100 24,467
Limited, Inc. ..................... 464,518 7,926
Lowe's Cos., Inc. ................. 278,166 12,378
RadioShack Corp. .................. 375,378 16,071
Wal-Mart Stores, Inc. ............. 1,300,558 69,092
---------
156,954
Retail - Drug Stores - 0.8%
CVS Corp. ....................... 251,100 15,050
TJX Cos., Inc. .................. 378,746 10,510
---------
25,560
Telecommunication Equipment - 1.5%
CIENA Corp. * ..................... 45,500 3,697
JDS Uniphase Corp. * .............. 211,600 8,821
Nortel Networks Corp. ............. 700,538 22,461
QUALCOMM, Inc. * .................. 174,600 14,350
---------
49,329
Telecommunication Services - 2.3%
EchoStar Communications Corp. -
Cl. A * ......................... 287,100 6,532
Nextel Communications, Inc. -
Cl. A * ......................... 166,600 4,123
Qwest Communications
International, Inc. * ........... 602,042 24,684
Sprint PCS (PCS Group) * .......... 281,600 5,755
Verizon Communications ............ 583,788 29,262
XO Communications, Inc. ........... 344,900 6,144
---------
76,500
Telephone - 1.6%
Metromedia Fiber Network, Inc.
Cl. A * ......................... 388,000 3,928
SBC Communications, Inc. 844,460 40,323
Sprint Corp. ................. 432,234 8,780
---------
53,031
U.S. Government Agencies - 1.2%
Federal National Mortgage Assoc 451,870 39,200
---------
TOTAL COMMON STOCK- 98.1% 3,260,873
Par Market
Name of Issuer Value Value
(000's) (000's)
SHORT-TERM INVESTMENTS - 3.2%
Investment in joint trading
account
(Note B)
6.695% due 01/02/01 ............... $ 106,899 $ 106,957
----------- ----------
TOTAL INVESTMENTS- 101.3% 3,367,830
Payables, less cash and receivables- (1.3)% (42,842)
----------- ----------
NET ASSETS- 100.0% 3,324,988
=========== ==========
* Non-income producing security.
See notes to financial statements.
143
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
MANAGED FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Aerospace & Defense - 1.2%
General Dynamics Corp. (US) 72,744 $ 5,674
Honeywell International, Inc. (US) 97,104 4,594
Lockheed Martin Corp. (US) 52,200 1,772
Raytheon Co. - Cl. A (US) 149,900 4,347
United Technologies Corp. (US) 238,660 18,765
--------
35,152
Auto & Truck Parts - 0.3%
General Motors Corp. - Cl. H (US) 120,960 2,782
Lear Corp. (US) 144,600 3,588
Visteon Corp. (US) 210,500 2,421
--------
8,791
Automobile - 0.3%
AutoNation, Inc. * (US) 133,300 800
Ford Motor Co. (US) 331,300 7,765
--------
8,565
Bank - 3.1%
Bank of America Corp. (US) 561,700 25,768
Bank of New York Co., Inc. (US) 172,400 9,514
Comerica, Inc. (US) 162,372 9,641
FleetBoston Financial Corp. (US) 593,040 22,276
J.P. Morgan & Co., Inc. (US) 95,508 15,807
Washington Mutual, Inc. (US) 178,600 9,477
--------
92,483
Business Services - 0.3%
Automatic Data Processing, Inc. (US) 145,100 9,187
Chemical - 0.8%
Air Products & Chemicals, Inc. (US) 184,632 7,570
Dow Chemical Co. (US) 323,200 11,837
Praxair, Inc. (US) 88,284 3,918
--------
23,325
Commercial Services - 0.9%
Galileo International, Inc. (US) 54,300 1,086
Interpublic Group Cos., Inc. (US) 321,900 13,701
Omnicom Group, Inc. (US) 99,960 8,284
R.R. Donnelley & Sons Co. (US) 171,108 4,620
--------
27,691
Computer Equipment - 2.4%
Compaq Computer Corp. (US) 326,988 4,921
Comverse Technology, Inc. (US) 46,200 5,019
Dell Computer Corp. (US) 59,800 1,043
Hewlett-Packard Co. (US) 320,648 10,120
Intel Corp. (US) 885,528 26,621
International Business Machines
Corp. (US) 223,524 19,000
VERITAS Software Corp. (US) 70,400 6,160
--------
72,884
Computer Software & Services - 4.5%
America Online, Inc. (US) 360,696 $ 12,552
Cadence Design Systems, Inc. (US) 95,700 2,632
CheckFree Corp. (US) 58,900 2,503
DoubleClick, Inc. (US) 107,500 1,182
DST Systems, Inc. (US) 62,000 4,154
EMC Corp. (US) 284,088 18,892
First Data Corp. (US) 396,900 20,911
Genuity, Inc. (US) 197,900 1,002
Macromedia, Inc. (US) 21,100 1,282
Microsoft Corp. (US) 653,352 28,339
Oracle Corp. (US) 710,808 20,658
Peoplesoft, Inc. (US) 71,900 2,674
Siebel Systems, Inc. (US) 58,716 3,971
Sun Microsystems, Inc. (US) 390,600 10,888
Yahoo!, Inc. (US) 77,784 2,347
--------
133,987
Consumer Miscellaneous - 0.8%
Avery Dennison Corp. (US) 108,612 5,960
Black & Decker Corp. (US) 185,500 7,281
Clorox Co. (US) 111,200 3,947
Costco Wholesale Corp. (US) 100,200 4,002
Parker-Hannifin Corp. (US) 68,460 3,021
--------
24,211
Cosmetic & Personal Care - 0.6%
Avon Products, Inc. (US) 104,160 4,987
Colgate-Palmolive Co. (US) 120,000 7,746
Procter & Gamble Co. (US) 74,508 5,844
--------
18,577
Diversified Operations - 4.3%
Corning, Inc. (US) 139,300 7,357
El Paso Energy Corp. (US) 237,100 16,982
General Electric Co. (US) 1,333,800 63,939
Illinois Tool Works, Inc. (US) 131,975 7,861
Minnesota Mining &
Manufacturing Co. (US) 94,080 11,337
Reynolds & Reynolds Co. - Cl. A (US) 149,604 3,029
Textron, Inc. (US) 1,600 74
Tyco International, Ltd. (BM) 317,400 17,616
--------
128,195
Electric Power - 1.9%
AES Corp. (US) 139,900 7,747
Allegheny Energy, Inc. (US) 87,300 4,207
Calpine Corp. (US) 93,400 4,209
Dominion Resources, Inc. (US) 97,104 6,506
Duke Energy Co. (US) 48,900 4,169
Exelon Corp. (US) 86,300 6,059
Fluor Corp. (US) 94,300 3,118
NiSource, Inc. (US) 100,100 3,078
Northeast Utilities (US) 137,700 3,339
Pinnacle West Capital Corp. (US) 180,400 8,591
144
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
MANAGED FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Electric Power - Continued
Reliant Energy, Inc. (US) ................... 139,100 $ 6,025
--------
57,048
Electrical Equipment - 0.1%
Emerson Electric Co. (US) ................... 36,400 2,869
Electronic Products & Services - 3.4%
Altera Corp. (US) ........................... 138,768 3,651
Analog Devices, Inc. (US) ................... 62,500 3,199
Applied Materials, Inc. (US) ................ 180,276 6,884
Applied Micro Circuits Corp. (US) ........... 67,500 5,066
Bookham Technology plc (GB) ................. 54,900 721
Cisco Systems, Inc. (US) .................... 1,046,664 40,035
KLA-Tencor Corp. (US) ....................... 53,000 1,786
Linear Technology Corp. (US) ................ 79,800 3,691
Maxim Integrated Products, Inc. (US) ........ 73,752 3,526
Micron Technology, Inc. (US) ................ 26,100 927
MIPS Technologies, Inc. - Cl. B (US) ........ 36,100 920
Motorola, Inc. (US) ......................... 284,508 5,761
PMC-Sierra, Inc. (US) ....................... 25,300 1,989
Sanmina Corp. (US) .......................... 56,500 4,329
Teradyne, Inc. (US) ......................... 58,600 2,183
Texas Instruments, Inc. (US) ................ 287,288 13,610
Xilinx, Inc. (US) ........................... 70,100 3,233
--------
101,511
Energy - Alternative Source - 0.4%
Dynegy, Inc. - Cl.A (US) .................... 197,100 11,050
Financial Services - 2.5%
Citigroup, Inc. (US) ........................ 1,058,653 54,057
Household International, Inc. (US) .......... 50,100 2,755
Jersey Puerto Morgan Chase & Co. (US) ....... 69,804 3,172
Mellon Financial Corp. (US) ................. 139,524 6,863
Stillwell Financial, Inc. (US) .............. 193,284 7,623
--------
74,470
Food, Beverage & Tobacco - 1.9%
Anheuser-Busch Cos., Inc. (US) .............. 96,936 4,411
Campbell Soup Co. (US) ...................... 159,300 5,516
ConAgra, Inc. (US) .......................... 260,516 6,773
Kellogg Co. (US) ............................ 281,200 7,382
PepsiCo, Inc. (US) .......................... 266,884 13,227
Philip Morris Cos., Inc. (US) ............... 316,000 13,904
Williams Cos., Inc. (US) .................... 110,700 4,421
--------
55,634
Health Care Products - 10.2%
Abbott Laboratories (US) .................... 186,000 9,009
Allergan, Inc. (US) ......................... 97,100 9,401
ALZA Corp. (US) ............................. 153,400 6,520
American Home Products Corp. (US) ........... 193,704 12,310
AstraZeneca Group plc - ADR (GB) ............ 224,300 11,552
Baxter International, Inc. (US) ............. 117,100 10,341
Becton, Dickinson & Co. (US) ................ 42,400 1,468
Bristol-Myers Squibb Co. (US) ............... 346,668 25,632
Cardinal Health, Inc. (US) .................. 53,172 5,297
Eli Lilly & Co. (US) ........................ 35,400 3,294
ENZON, Inc. (US) ............................ 67,000 4,158
Forest Laboratories, Inc. (US) .............. 101,640 13,505
Genetech, Inc. (US) ......................... 22,200 1,809
Guidant Corp. (US) .......................... 63,400 3,420
Johnson & Johnson (US) ...................... 219,492 23,060
Laboratory Corporation of
America Holdings (US) ....................... 39,000 6,864
Medtronic, Inc. (US) ........................ 276,300 16,682
Merck & Co., Inc. (US) ...................... 372,540 34,879
Pfizer, Inc. (US) ........................... 1,737,600 79,930
Pharmacia Corp. (US) ........................ 265,200 16,177
Schering-Plough Corp. (US) .................. 166,152 9,429
--------
304,737
Health Care Services - 0.2%
Wellpoint Health Networks, Inc. (US) ........ 56,300 6,488
Insurance - 3.2%
Allstate Corp. (US) ......................... 100,000 4,356
American International Group, Inc. (US) ..... 194,600 19,180
Chubb Corp. (US) ............................ 75,000 6,488
Hartford Financial Services Group, Inc.
(US) ...................................... 282,500 19,952
Jefferson-Pilot Corp. (US) .................. 32,200 2,407
Lincoln National Corp. (US) ................. 270,100 12,779
Marsh & McLennan Cos., Inc. (US) ............ 44,856 5,248
St. Paul Cos., Inc. (US) .................... 202,100 10,977
Torchmark, Inc. (US) ........................ 145,200 5,581
XL Capital, Ltd. - Cl. A (BM) ............... 105,252 9,196
--------
96,164
Leisure & Recreation - 0.1%
Carnival Corp. (PA) ......................... 116,800 3,599
Machinery - 0.3%
Ingersoll-Rand Co. (US) ..................... 234,500 9,820
Media - Publishing - 0.5%
AT&T Corp. - Liberty Media Group - Cl
A (US) .................................... 1,026,900 13,927
Media - TV / Radio - 1.8%
Cablevision Systems Corp. - Cl. A (US) ...... 135,900 11,543
Charter Communications, Inc. - Cl. A
(US) ...................................... 90,700 2,058
Clear Channel Communications, Inc.
(US) ...................................... 140,448 6,803
Fox Entertainment Group, Inc. - Cl. A
(US) ...................................... 71,000 1,269
Infinity Broadcasting Corp. - Cl. A (US) .... 134,652 3,762
Time Warner, Inc. (US) ...................... 251,184 13,122
USA Networks, Inc. (US) ..................... 8,600 167
145
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
MANAGED FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Media - TV / Radio - Continued
Viacom, Inc. - Cl. B (US) ................... 308,953 $ 14,443
---------
53,167
Metals & Mining - 0.3%
Alcoa, Inc. (US) ............................ 291,500 9,765
Oil - 0.8%
Conoco, Inc. - Cl. A (US) ................... 151,032 4,323
Royal Dutch Petroleum Co. - NY Shares
(NL) ...................................... 327,180 19,815
---------
24,138
Oil & Natural Gas Exploration & Production - 1.8%
Chevron Corp. (US) .......................... 76,440 6,454
Exxon Mobil Corp. (US) ...................... 479,860 41,707
Kerr-McGee Corp. (US) ....................... 61,908 4,144
Texaco, Inc. (US) ........................... 48,400 3,007
---------
55,312
Oil - Equipment & Service - 0.5%
Baker Hughes, Inc. (US) ..................... 286,780 11,919
Weatherford International, Inc. (US) ........ 52,300 2,471
---------
14,390
Paper & Forest Products - 0.2%
Kimberly-Clark Corp. (US) ................... 86,016 6,080
Personal & Commercial Lending - 0.6%
USA Education, Inc. (US) .................... 271,100 18,435
Precious Metals/Gems/Stones - 0.0%
Newmont Mining Corp. (US) ................... 73,000 1,245
Retail - Department Stores - 2.9%
Circuit City Stores, Inc. (US) .............. 175,000 2,012
Dollar General Corp. (US) ................... 159,100 3,003
Gap, Inc. (US) .............................. 253,780 6,471
Home Depot, Inc. (US) ....................... 258,552 11,813
Kohl's Corp. (US) ........................... 179,200 10,931
Limited, Inc. (US) .......................... 168,588 2,876
Lowe's Cos., Inc. (US) ...................... 263,800 11,739
RadioShack Corp. (US) ....................... 200,100 8,567
Tiffany & Co. (US) .......................... 137,600 4,352
Wal-Mart Stores, Inc. (US) .................. 485,772 25,807
---------
87,571
Retail - Drug Stores - 0.5%
CVS Corp. (US) .............................. 63,000 3,776
TJX Cos., Inc. (US) ......................... 261,700 7,262
Walgreen Co. (US) ........................... 84,000 3,512
---------
14,550
Retail - Food - 0.1%
McDonald's Corp. (US) ....................... 93,900 3,193
Shoe & Apparel Manufacturing - 0.1%
Nike, Inc. - Cl. B (US) ..................... 53,800 3,003
Telecommunication Equipment - 0.8%
ADC Telecommunications, Inc. (US) ........... 140,700 2,550
JDS Uniphase Corp. (US) ..................... 98,000 4,085
Nokia Oyj - ADR (FI) ........................ 109,700 4,772
Nortel Networks Corp. (CA) .................. 399,672 12,815
---------
24,222
Telecommunication Services - 1.3%
Adelphia Communications Corp. - Cl. A
(US) ...................................... 53,800 2,777
CNF Transportation, Inc. (US) ............... 41,700 1,410
EchoStar Communications Corp. - Cl. A
(US) ...................................... 61,000 1,388
Qwest Communications International,
Inc. (US) ................................. 371,176 15,218
Sprint PCS (PCS Group) (US) ................. 271,700 5,553
Verizon Communications (US) ................. 181,944 9,120
WorldCom, Inc. (US) ......................... 189,300 2,662
---------
38,128
Telephone - 1.2%
AT&T Corp. (US) ............................. 107,100 1,854
BellSouth Corp. (US) ........................ 92,652 3,793
SBC Communications, Inc. (US) ............... 509,780 24,342
Sprint Corp. (US) ........................... 299,716 6,088
---------
36,077
Transportation Services - 0.4%
Canadian National Railway Co. (CA) .......... 113,300 3,364
Ryder System, Inc. (US) ..................... 169,260 2,814
Union Pacific Corp. (US) .................... 137,032 6,954
---------
13,132
U.S. Government Agencies - 0.9%
Federal National Mortgage Assoc. (US) ....... 299,500 25,982
---------
TOTAL COMMON STOCK- 58.4% 1,748,766
Par
Value
(000's)
CORPORATE BONDS
Personal & Commercial Lending - 0.6%
MBNA Master Credit Card Trust (US)
6.6% due 11/15/04 ........................... $ 10,231 10,339
MBNA Master Credit Card Trust II (US)
6.4% due 01/18/05 ........................... 7,147 7,211
Sears Credit Account Master Trust - Ser.
1998-2 Cl. A (US)
5.25% due 10/16/08 .......................... 1,000 986
---------
TOTAL CORPORATE BONDS- 0.6% 18,536
146
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
MANAGED FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS
Aerospace & Defense - 0.2%
Boeing Cap. Corp. - Sr. Notes (US)
7.1% due 09/27/05 ........................... $ 500 $ 521
Lockheed Martin Corp. - Bonds (US)
8.5% due 12/01/29 ........................... 3,443 3,907
Raytheon Co. - Notes (US)
6.45% due 08/15/02 .......................... 2,290 2,281
----------
6,709
Automobile - 0.5%
Ford Motor Co. - Bonds (US)
6.625% due 10/01/28 ......................... 13,024 11,024
General Motors (US)
1.25% due 12/20/04 .......................... 500,000 4,353
Hertz Corp. (US)
7.625% due 08/15/07 ......................... 500 515
----------
15,892
Bank - 3.3%
Bank of America Corp. - Sub. Notes (US)
7.8% due 02/15/10 ........................... 15,713 16,354
Banponce Financial Corp. Mountain Bank
Ent - Ser C. (US)
6.58% due 11/25/03 .......................... 8,900 8,946
Development Bank of JAPAN (JP)
1.75% due 06/21/10 .......................... 790,000 7,033
European Investment Bank - Notes (XU)
3.0% due 09/20/06 ........................... 620,000 6,048
European Investment Bank - Sr. Unsub
(LU)
6.0% due 11/26/04 ........................... 1,350 2,035
European Investment Bank (XU)
8.75% due 08/25/17 .......................... 960 1,957
European Investor Bank (LU)
8.0% due 06/10/03 ........................... 250 393
Federal Home Loan Bank - Notes (US)
5.125% due 09/15/03 ......................... 1,250 1,234
International Bank of Reconstruction &
Development - Notes (XU)
2.0% due 02/18/08 ........................... 1,170,000 10,698
International Bank of Reconstruction &
Development - Debs. (XU)
4.5% due 03/20/03 ........................... 1,080,000 10,251
International Bank of Reconstruction &
Development - Debs. (JP)
4.75% due 12/20/04 .......................... 650,000 6,563
International Bank of Reconstruction &
Development - Debs. (XU)
9.25% due 07/20/07 .......................... 2,710 4,811
J.P. Morgan & Co., Inc. - Sr Notes (US)
5.75% due 02/25/04 .......................... 2,000 1,964
Korea Development Bank - Bonds (US)
7.125% due 09/17/01 ......................... 4,600 4,608
Korea Development Bank - Notes (US)
7.125% due 04/22/04 ......................... 7,273 7,218
Wells Fargo Bank NA - Sub. (US)
7.55% due 06/21/10 .......................... 8,106 8,579
----------
98,692
Brokerage & Investment Management - 0.3%
Lehman Brothers Holdings, Inc. - Notes
(US)
6.5% due 10/01/02 ........................... 7,010 7,007
6.625% due 04/01/04 ......................... 2,000 1,993
Regional Diversified Funding, Ltd. (US)
9.25% due 03/15/30 .......................... 1,000 1,005
----------
10,005
Business Services - 0.1%
Comdisco, Inc. - Notes (US)
5.95% due 04/30/02 .......................... 4,200 3,444
Computer Equipment - 0.1%
International Business Machines
Corp. - Notes (US)
5.375% due 02/01/09 ......................... 500 463
5.625% due 04/12/04 ......................... 2,870 2,830
----------
3,293
Electric Power - 0.1%
Ontario-Hydro (CA)
9.0% due 06/24/02 ........................... 2,800 1,960
Financial Services - 5.4%
Associates Corp. of North America - Sr
Notes (US)
5.5% due 02/15/02 ........................... 4,000 3,978
6.25% due 11/01/08 .......................... 8,618 8,310
Capital One Financial Corp. - Notes (US)
7.25% due 12/01/03 .......................... 8,562 8,547
Chase Commercial Mortgage Securities
Corp. - Ser. 1997-1 Cl. A2 (US)
7.37% due 02/19/07 .......................... 10,722 11,269
Contimortgage Home Equity Loan Trust (US)
6.0% due 12/25/16 ........................... 12,093 11,927
Countrywide Funding Corp. (US)
7.0% due 10/25/23 ........................... 7,256 7,277
Credit Suisse First Boston Mortgage
Securities Corp. (US)
7.545% due 04/15/10 ......................... 4,533 4,842
First Union National Nank - Sub. Notes (US)
7.8% due 08/18/10 ........................... 7,739 7,983
General Motors Acceptance Corp. (US)
7.5% due 07/15/05 ........................... 8,118 8,312
Green Tree Financial Corp. (US)
6.68% due 01/15/29 .......................... 9,471 9,512
147
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
MANAGED FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - Continued
Financial Services - Continued
Green Tree Financial Corp. - Ser. 1996-8
Cl. A6 (US)
7.6% due 10/15/27 ........................... $ 7,723 $ 8,010
Green Tree Financial Corporation - Ser
1997-6 Cl. A7 (US)
7.14% due 01/15/29 .......................... 500 511
Household Finance Corp. - Sr. Notes (US)
5.125% due 06/24/09 ......................... 6,300 5,496
Household Finance Corp. - Notes (US)
7.875% due 03/01/07 ......................... 7,369 7,670
KFW International Finance - Debs. (US)
10.625% due 09/03/01 ........................ 500 769
LB-UBS Commercial Mortgage Trust -
Ser. 2000-C4 Cl. A2 (US)
7.37% due 06/15/10 .......................... 15,318 16,242
Lehman Brothers Holdings - Notes (US)
7.75% due 01/15/05 .......................... 8,062 8,330
Mortgage Capital Funding, Inc. - Ser
1996 - MC2 Cl. A1 (US)
6.758% due 02/20/04 ......................... 9,997 10,114
NiSource Finance Corp. Ser. 144A (a)
(US)
7.5% due 11/15/03 ........................... 500 513
NiSource Finance Corp. - 144A (a) (US)
7.875% due 11/15/10 ......................... 1,375 1,445
PNC Funding Corp. - Sub. Notes (US)
7.5% due 11/01/09 ........................... 8,094 8,371
Residential Asset Securities Corp. (US)
6.11% due 05/25/24 .......................... 8,062 8,038
Salomon, Inc. - Sr. Notes (US)
7.2% due 02/01/04 ........................... 2,300 2,349
Southern Pacific Secured Assets Corp.
(US)
6.27% due 03/25/19 .......................... 1,392 1,387
----------
161,202
Food, Beverage & Tobacco - 0.2%
Conagra Inc. - Notes (US)
7.5% due 09/15/05 ........................... 1,000 1,045
7.875% due 09/15/10 ......................... 500 539
Nabisco, Inc. - Deb. (US)
7.55% due 06/15/15 .......................... 1,000 943
Philip Morris Cos., Inc. - Debs. (US)
8.25% due 10/15/03 .......................... 3,055 3,135
The Kroger Co. (US)
8.05% due 02/01/10 .......................... 500 538
Williams Cos., Inc. - Notes (US)
6.5% due 08/01/06 ........................... 500 494
----------
6,694
Foreign - 0.3%
Queensland Treasury Corp. - Bonds (AU)
6.5% due 06/14/05 ........................... 460 264
Queensland Treasury Corp. - Global
Notes (AU)
8.0% due 08/14/01 ........................... 400 225
Queensland Treasury Corp. (AU)
8.0% due 09/14/07 ........................... 1,395 875
Treuhandanstalt (DE)
7.75% due 10/01/02 .......................... 6,410 6,340
----------
7,704
Foreign Governmental - 4.4%
Government of Canada - Debs. (CA)
9.75% due 06/01/21 .......................... 2,470 2,435
11.0% due 06/01/09 .......................... 2,830 2,586
12.0% due 03/01/05 .......................... 1,785 1,477
Government of France - Bonds (FR)
8.5% due 04/25/03 ........................... 7,300 7,437
9.5% due 01/25/01 ........................... 6,860 6,456
Government of Japan - Bonds (JP)
2.2% due 09/21/20 ........................... 650,000 5,607
Government of Netherlands -
Bonds (NL)
6.5% due 04/15/03 ........................... 8,100 7,909
7.75% due 03/01/05 .......................... 10,700 11,221
Government of Sweden - Debs. (SE)
6.5% due 10/25/06 ........................... 9,200 1,070
6.75% due 05/05/14 .......................... 4,700 584
Government of Sweden - Bonds (SE)
10.25% due 05/05/03 ......................... 11,450 1,370
Republic of Greece (GR)
5.9% due 02/11/03 ........................... 200,000 563
6.0% due 05/19/10 ........................... 435,000 1,245
Hellenic Republic - Bonds (GR)
5.95% due 03/24/05 .......................... 243,000 693
Kingdom of Denmark - Bonds (DK)
7.0% due 11/15/07 ........................... 6,300 881
7.0% due 11/10/24 ........................... 3,000 449
8.0% due 05/15/03 ........................... 13,650 1,833
Kingdom of Spain - Notes (ES)
3.1% due 09/20/06 ........................... 1,260,000 12,297
Province of Ontario (CA)
7.75% due 06/04/02 .......................... 4,000 4,101
Province of Quebec - Debs (CA)
7.5% due 09/15/29 ........................... 9,780 10,529
Queensland Treasury Corp. (XU)
6.0% due 06/14/11 ........................... 280 158
Republic of Chile (US)
6.875% due 04/28/09 ......................... 3,795 3,686
Republic of Italy - Notes (IT)
3.5% due 06/20/01 ........................... 800,000 7,096
Republic of Italy - Bonds (IT)
4.5% due 05/01/09 ........................... 13,800 12,407
Republic of Italy (XU)
6.0% due 08/04/28 ........................... 1,600 2,637
Republic of Italy - Debs. (IT)
8.5% due 01/01/04 ........................... 6,600 6,854
148
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
MANAGED FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - Continued
Foreign Governmental - Continued
9.0% due 11/01/23 ........................... $ 12,000 $ 15,982
10.5% due 04/28/14 .......................... 1,250 2,677
--------
132,240
Health Care Products - 0.2%
Beckman Instruments, Inc. - Sr. Notes
(US)
7.1% due 03/04/03 ........................... 4,837 4,771
Health Care Services - 0.1%
Tenet Healthcare Corp. - Sr. Notes (US)
8.0% due 01/15/05 ........................... 3,950 4,000
United Healthcare - Notes (US)
7.5% due 11/15/05 ........................... 500 517
--------
4,517
Leisure & Recreation - 0.0%
MGM Mirage, Inc. (US)
8.5% due 09/15/10 ........................... 500 515
Media - TV / Radio - 0.8%
Belo AH Corp. - Sr. Notes (US)
7.125% due 06/01/07 ......................... 500 479
CBS, Corp. - Sr. Notes (US)
7.15% due 05/20/05 .......................... 3,525 3,591
Chancellor Media Corp. (US)
8.0% due 11/01/08 ........................... 750 746
Charter Communication Holdings LLC -
Sr. Notes (US)
8.25% due 04/01/07 .......................... 1,000 915
Clear Channel Communications (US)
7.65% due 09/15/10 .......................... 500 511
Fox Sports Networks LLC - Sr. Disc
Notes (US)
0.0% due 08/15/07 ........................... 750 637
Fox/Liberty Networks LLC - Sr. Notes
(US)
8.875% due 08/15/07 ......................... 1,000 995
Liberty Media Corp. - Bonds (US)
7.875% due 07/15/09 ......................... 1,500 1,477
News America, Inc. - Debs. (US)
7.125% due 04/08/28 ......................... 3,483 2,839
Time Warner, Inc. (US)
6.625% due 05/15/29 ......................... 4,079 3,698
Time Warner, Inc. - Debs (US)
7.25% due 10/15/17 .......................... 500 490
Time Warner, Inc. - Notes (US)
8.18% due 08/15/07 .......................... 2,075 2,207
Viacom, Inc. (US)
7.7% due 07/30/10 ........................... 5,250 5,516
--------
24,101
Municipals - 0.2%
Tennessee Valley Authority - Bonds (US)
6.375% due 09/18/06 ......................... 11,000 5,622
Natural Gas Distribution - 0.2%
Florida Gas Transmission Co. (US)
7.875% due 12/01/10 ......................... 750 773
KN Energy, Inc. - Sr. Notes (US)
6.45% due 03/01/03 .......................... 4,590 4,579
Williams Gas Pipeline Center - Sr. Notes
144A (a) (US)
7.375% due 11/15/06 ......................... 1,300 1,336
--------
6,688
Oil - 0.1%
Coastal Corp. (US)
7.75% due 06/15/10 .......................... 500 527
Conoco, Inc. - Notes (US)
5.9% due 04/15/04 ........................... 500 495
Pennzoil - Quaker State - Notes (US)
8.65% due 12/01/02 .......................... 750 754
--------
1,776
Oil & Natural Gas Exploration & Production - 0.3%
Amerada Hess Corp. - Bonds (US)
7.875% due 10/01/29 ......................... 2,749 2,874
Gulf Canada Resources, Ltd. - Sr. Notes
(CA)
8.35% due 08/01/06 .......................... 4,460 4,527
--------
7,401
Oil - Equipment & Service - 0.1%
Petroleum Geo-Services ASA - Sr. Notes
(NO)
7.125% due 03/30/28 ......................... 4,519 3,642
Paper & Forest Products - 0.0%
Fort James Corp. - Sr. Notes (US)
6.875% due 09/15/07 ......................... 500 445
Personal & Commercial Lending - 3.2%
Asset Backed Securities Corp. - Series
2000-LB1 Cl. AF2 (US)
7.57% due 03/21/24 .......................... 6,795 6,918
Citibank Credit Card Issuance Trust - Ser
2000 Cl. C1 (US)
7.45% due 09/15/07 .......................... 500 523
Countrywide Alternative Loan Trust - Ser
1999-1 Cl. A4 (US)
6.75% due 06/25/29 .......................... 7,569 7,525
Credit Suisse First Boston, Inc. (US)
7.29% due 09/15/09 .......................... 8,062 8,496
CS First Boston Mortgage Securities
Corp. (US)
6.91% due 01/15/08 .......................... 5,953 6,119
EQCC Home Equity Loan Trust (US)
6.223% due 06/25/11 ......................... 7,498 7,476
Ford Motor Credit Co. (US)
1.2% due 02/07/05 ........................... 500,000 4,310
149
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
MANAGED FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - Continued
Personal & Commercial Lending - Continued
Ford Motor Credit Co. (LU)
5.25% due 06/16/08 .......................... $10,250 $ 4,669
Ford Motor Credit Co. - Notes (US)
6.125% due 04/28/03 ......................... 3,000 2,973
Ford Motor Credit Co. (US)
7.875% due 06/15/10 ......................... 500 515
General Motors Acceptance Corp. (US)
4.0% due 02/09/06 ........................... 6,800 5,913
General Motors Acceptance Corp. -
Bonds (US)
5.5% due 01/14/02 ........................... 5,000 4,966
Goldman Sachs Group, Inc. (US)
7.8% due 01/28/10 ........................... 8,618 9,063
Household Finance Corp. - Notes (US)
6.0% due 05/01/04 ........................... 7,020 6,890
Money Store Home Equity Trust - Ser
1996-B A7 (US)
7.55% due 02/15/20 .......................... 4,977 4,990
Residential Asset Products (US)
7.21% due 11/25/19 .......................... 8,500 8,522
Residential Asset Securities Corp. (US)
7.18% due 01/25/25 .......................... 4,000 4,053
U.S. West Capital Funding, Inc. (US)
6.875% due 07/15/28 ......................... 2,709 2,369
-------
96,290
Pollution Control - 0.1%
Waste Management, Inc. - Notes (US)
7.7% due 10/01/02 ........................... 400 400
WMX Technologies, Inc. - Notes (US)
7.1% due 08/01/26 ........................... 1,000 988
7.125% due 06/15/01 ......................... 2,715 2,704
-------
4,092
Real Estate Investment Trust - 0.5%
Residential Asset Securitization Trust -
Ser. 1998-A8 Cl. A3 (US)
6.75% due 08/25/28 .......................... 14,765 14,698
Retail - Department Stores - 0.5%
Federated Department Stores, Inc. - Sr
Notes (US)
8.5% due 06/15/03 ........................... 6,502 6,691
Wal Mart Stores, Inc. (US)
7.55% due 02/15/30 .......................... 7,405 8,217
-------
14,908
Telecommunication Equipment - 0.0%
Crown Castle International Corp. - Sr
Notes (US)
10.75% due 08/01/11 ......................... 1,000 1,037
Spectrasite Holdings, Inc. - Sr. Notes
Ser. B (US)
10.75% due 03/15/10 ......................... 500 445
-------
1,482
Telecommunication Services - 0.2%
CSC Holdings, Inc. - Sr. Notes (US)
8.125% due 07/15/09 ......................... 5,000 5,111
Vodafone Group plc - Notes (US)
7.625% due 02/15/05 ......................... 500 515
-------
5,626
Telephone - 0.4%
AT&T Corp. - Notes (US)
5.625% due 03/15/04 ......................... 4,000 3,821
CenturyTel, Inc. - Sr. Notes Ser. H (US)
8.375% due 10/15/10 ......................... 2,000 2,083
MCI WorldCom, Inc. - Notes (US)
7.75% due 04/01/07 .......................... 5,289 5,298
-------
11,202
U.S. Government Agencies - 11.3%
Federal Home Loan Mortgage Corp. (XU)
0.0% due 09/15/10 ........................... 5,375 5,176
Federal National Mortgage Assoc. - Notes
(US)
4.75% due 11/14/03 .......................... 11,000 10,744
7.0% due 07/15/05 ........................... 5,200 5,458
Federal National Mortgage Assoc. (US)
6.0% due 01/25/30 ........................... 34,287 33,194
6.0% due 05/15/08 ........................... 13,000 13,049
6.375% due 06/15/09 ......................... 16,500 16,920
6.5% due 01/25/15 ........................... 17,244 17,239
6.5% due 01/25/30 ........................... 11,843 11,680
6.5% due 07/01/29 ........................... 2,994 2,953
6.5% due 08/01/13 ........................... 2,928 2,927
6.5% due 08/01/30 ........................... 1,990 1,963
6.75% due 08/15/02 .......................... 15,767 16,028
7.0% due 01/25/30 ........................... 38,208 38,268
7.0% due 04/01/29 ........................... 12,868 13,053
7.0% due 11/01/30 ........................... 3,993 3,999
7.0% due 12/01/30 ........................... 1,000 1,002
7.25% due 05/15/30 .......................... 13,608 15,487
7.5% due 01/25/15 ........................... 20,961 21,406
7.5% due 01/25/30 ........................... 29,230 29,659
7.5% due 11/01/30 ........................... 7,993 8,110
7.5% due 12/01/30 ........................... 3,000 3,044
8.0% due 01/25/30 ........................... 15,054 15,426
8.0% due 12/01/29 ........................... 3,000 3,074
150
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
MANAGED FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - Continued
U.S. Government Agencies - Continued
Government National Mortgage Assoc.
(US)
6.0% due 12/15/28 ........................ $ 3,969 $ 3,851
7.0% due 08/15/29 ........................ 1,492 1,499
7.5% due 10/15/30 ........................ 3,997 4,066
7.5% due 11/15/30 ........................ 999 1,016
7.5% due 12/15/30 ........................ 10,892 11,079
8.0% due 11/15/30 ........................ 7,994 8,204
8.0% due 12/15/17 ........................ 17,829 18,425
---------
337,999
U.S. Governmental - 5.4%
U.S. Treasury - Notes (US)
5.25% due 08/15/03 ....................... 4,875 4,890
5.625% due 02/15/06 ...................... 4,500 4,605
5.625% due 05/15/08 ...................... 4,000 4,105
5.75% due 08/15/10 ....................... 2,500 2,620
5.875% due 11/15/05 ...................... 7,699 7,964
6.25% due 02/15/07 ....................... 13,500 14,251
6.375% due 08/15/02 ...................... 4,250 4,321
6.875% due 05/15/06 ...................... 2,000 2,163
U.S. Treasury - Bonds (US)
5.25% due 02/15/29 ....................... 10,658 10,210
5.875% due 11/15/04 ...................... 11,635 11,939
6.75% due 08/15/26 ....................... 14,010 16,212
8.875% due 08/15/17 ...................... 57,564 78,243
---------
161,523
---------
TOTAL PUBLICLY-TRADED BONDS- .................. 38.5% 1,155,133
SHORT-TERM INVESTMENTS - 8.1%
Investment in joint trading account
(Note B) (US)
6.695% due 01/02/01 ...................... 242,351 242,351
--------- ----------
TOTAL INVESTMENTS- ........................ 105.6% 3,164,786
Payables, less cash and receivables- .......... (5.6)% (168,992)
--------- ----------
NET ASSETS- ............................ 100.0% 2,995,794
========= ==========
ADR - American Depository Receipt
(a) Pursuant to Rule 144A under the Securities Act of 1993, these securities
may be resold in transactions exempt from registration, normally to
qualified institutional buyers. At December 31, 2000, securities aggregated
$3,294 or 0.01% of net assets of the Portfolio.
See notes to financial statements.
SUMMARY OF LONG-TERM SECURITIES BY COUNTRY
% of
Market Long-Term
Country Value Invest-
Industry Abbreviation (000s) ments
Australia ......................... AU $ 1,365 0.1%
Greece ............................ GR 2,501 0.1%
Sweden ............................ SE 3,024 0.1%
Denmark ........................... DK 3,163 0.1%
Panama ............................ PA 3,599 0.1%
Norway ............................ NO 3,642 0.1%
Finland ........................... FI 4,772 0.2%
Germany ........................... DE 6,339 0.2%
Luxembourg ........................ LU 7,097 0.3%
United Kingdom .................... GB 12,272 0.4%
Spain ............................. ES 12,297 0.4%
France ............................ FR 13,893 0.5%
Japan ............................. JP 19,202 0.7%
Bermuda ........................... BM 26,812 0.9%
Netherlands ....................... NL 38,945 1.3%
Supra National .................... XU 41,735 1.4%
Canada ............................ CA 43,793 1.5%
Italy ............................. IT 45,017 1.5%
United States ..................... US 2,632,967 90.1%
---------- -----
$2,922,435 100.0%
========== =====
151
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
SHORT-TERM BOND FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
CORPORATE BONDS
Financial Services - 1.3%
Chase Credit Card Master Trust - Cl. A 1998-3
6.0% due 08/15/05 ............................. $1,075 $1,080
Personal & Commercial Lending - 1.2%
MBNA Master Credit Card Trust
6.6% due 11/15/04 ............................. 935 945
------
TOTAL CORPORATE BONDS- 2.5% 2,025
PUBLICLY-TRADED BONDS
Aerospace & Defense - 0.6%
Raytheon Co. - Notes
6.45% due 08/15/02 ............................ 500 498
Bank - 8.8%
BankBoston Corp. - Sr. Notes
6.125% due 03/15/02 ........................... 1,900 1,899
Banponce Corp. - Notes
6.54% due 11/06/01 ............................ 1,000 1,003
Capital One Bank - Notes
7.0% due 04/30/01 ............................. 1,000 1,002
First Union Corp. - Notes
6.95% due 11/01/04 ............................ 500 506
J.P. Morgan & Co., Inc. - Sr. Notes
5.75% due 02/25/04 ............................ 1,000 982
Star Banc Corp. - Notes
5.875% due 11/01/03 ........................... 600 593
Westpac Banking Corp. - Sub. Debs .............
9.125% due 08/15/01 ........................... 1,000 1,017
------
7,002
Brokerage & Investment Management - 3.6%
Donaldson, Lufkin & Jenrette, Inc. - Sr. Notes
5.875% due 04/01/02 ........................... 1,900 1,894
Lehman Brothers Holdings, Inc. - Notes
6.5% due 10/01/02 ............................. 470 470
Morgan Stanley, Dean Witter, Discover & Co. ...
5.625% due 01/20/04 ........................... 500 490
------
2,854
Business Services - 0.5%
Comdisco, Inc. - Notes
5.95% due 04/30/02 ............................ 500 410
Computer Equipment - 0.6%
International Business Machines Corp. - Notes
5.625% due 04/12/04 ........................... 500 493
Cosmetic & Personal Care - 2.5%
Dial Corp. - Notes
5.9% due 10/25/01 ............................. 2,000 1,982
Diversified Operations - 3.3%
CMS Panhandle Holding - Sr. Notes
6.125% due 03/15/04 ........................... 1,000 963
El Paso Energy Corp. - Sr. Notes
6.625% due 07/15/01 ........................... 500 500
Diversified Operations - Continued
Tyco International Group SA
6.125% due 06/15/01 ........................... $1,200 $1,195
------
2,658
Electric Power - 0.6%
Niagara Mohawk Power Corp. - Sr. Notes
7.25% due 10/01/02 ............................ 499 504
Financial Services - 11.6%
Associates Corp. of North America - Sr. Notes
5.75% due 11/01/03 ............................ 450 444
General Electric Capital Corp. ................
7.5% due 05/15/05 ............................. 3,150 3,327
General Motors Acceptance Corp. - Notes
7.48% due 02/28/03 ............................ 1,200 1,225
Green Tree Financial Corp. - Ser. 1996-8 Cl. A6
7.6% due 10/15/27 ............................. 680 705
Heller Financial, Inc. - Notes
6.25% due 03/01/01 ............................ 1,500 1,499
Lehman Brothers Holdings - Notes
6.625% due 02/05/06 ........................... 600 594
PNC Funding Corp. .............................
7.0% due 09/01/04 ............................. 500 509
Salomon, Inc. - Sr. Notes
7.2% due 02/01/04 ............................. 500 511
U.S. West Capital Funding, Inc. ...............
6.875% due 08/15/01 ........................... 500 501
------
9,315
Food, Beverage & Tobacco - 0.8%
Philip Morris Cos., Inc. - Debs ...............
8.25% due 10/15/03 ............................ 640 657
Health Care Products - 1.8%
Beckman Instruments, Inc. - Sr. Notes
7.1% due 03/04/03 ............................. 1,475 1,455
Health Care Services - 0.5%
Tenet Healthcare Corp. - Sr. Notes
8.625% due 12/01/03 ........................... 360 368
Media - TV / Radio - 1.3%
Continental Cablevision - Sr. Notes
8.5% due 09/15/01 ............................. 1,010 1,021
Natural Gas Distribution - 2.3%
Enron Corp. - Debs ............................
9.125% due 04/01/03 ........................... 500 527
KN Energy, Inc. - Sr. Notes
6.45% due 03/01/03 ............................ 1,300 1,297
------
1,824
Oil - 1.3%
Coastal Corp. - Sr. Notes
8.125% due 09/15/02 ........................... 500 517
152
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
SHORT-TERM BOND FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - Continued
Oil - Continued
Conoco, Inc. - Notes
5.9% due 04/15/04 ................................. $ 550 $ 545
------
1,062
Oil & Natural Gas Exploration & Production - 1.5%
Gulf Canada Resources, Ltd. - Sr. Notes
8.35% due 08/01/06 ................................ 170 179
Occidental Petroleum Corp. - Notes
8.5% due 11/09/01 ................................. 1,000 1,012
------
1,191
Oil - Equipment & Service - 1.2%
Petroleum-Geo Services ASA - Bonds
6.25% due 11/19/03 ................................ 1,000 979
Personal & Commercial Lending - 7.6%
American General Finance Corp. - Notes
5.75% due 11/23/01 ................................ 1,270 1,266
Asset Backed Securities Corp. - Series 2000-LB1
Cl. AF2
7.57% due 03/21/24 ................................ 177 180
Covenant Transport, Inc. - Cl. A
7.6% due 12/15/29 ................................. 252 259
Ford Motor Credit Co. - Sr. Notes
5.75% due 02/23/04 ................................ 1,500 1,452
Green Tree Financial Corp. - Ser. 1996-F
7.3% due 01/15/28 ................................. 131 132
Household Finance Corp. - Notes
6.0% due 05/01/04 ................................. 1,000 981
Money Store Home Equity Trust - Ser 1996-B A7 .....
7.55% due 02/15/20 ................................ 146 146
Money Store Home Equity Trust - Ser 1997-D AF3 ....
6.345% due 11/15/21 ............................... 227 227
Residential Asset and Mortgage Products
7.21% due 11/25/19 ................................ 1,500 1,504
------
6,147
Pollution Control - 0.7%
WMX Technologies, Inc. - Notes
7.125% due 06/15/01 ............................... 570 568
Real Estate Investment Trust - 0.4%
Residential Asset Securitization Trust - Ser. 1998-
A8 Cl. A3
6.75% due 08/25/28 ................................ 293 292
Retail - Department Stores - 2.5%
Dillard's, Inc. - Notes
5.79% due 11/15/01 ................................ 975 895
Federated Department Stores, Inc. - Sr. Notes
8.5% due 06/15/03 ................................. 1,090 1,122
------
2,017
Retail - Food - 0.6%
Safeway, Inc. - Notes
5.875% due 11/15/01 ............................ 500 498
Telecommunication Services - 1.9%
Cox Communications, Inc. - Notes
7.0% due 08/15/01 .............................. 1,500 1,496
Telephone - 1.9%
MCI Worldcom, Inc. - Sr. Notes
6.125% due 08/15/01 ............................ 1,500 1,495
Transportation Services - 2.5%
Norfolk Southern Corp. - Notes
6.875% due 05/01/01 ............................ 2,000 1,999
U.S. Government Agencies - 20.2%
Federal Home Loan Bank
8.0% due 06/01/10 .............................. 1,181 1,218
Federal Home Loan Mortgage Corp.
7.75% due 01/15/21 ............................. 292 292
Federal National Mortgage Assoc.
6.375% due 10/15/02 ............................ 3,500 3,546
6.5% due 09/01/02 .............................. 1,380 1,375
6.75% due 08/15/02 ............................. 3,750 3,812
7.0% due 01/01/03 .............................. 4,166 4,164
7.0% due 12/01/10 .............................. 1,692 1,715
------
16,122
U.S. Governmental - 13.2%
U.S. Treasury
4.25% due 11/15/03 ............................. 530 518
4.5% due 01/31/01 .............................. 910 909
5.875% due 02/15/04 ............................ 2,810 2,867
U.S. Treasury - Bonds
5.875% due 11/15/04 ............................ 6,190 6,351
------
10,645
------
TOTAL PUBLICLY-TRADED BONDS- 94.3% 75,552
SHORT-TERM INVESTMENTS - 1.6%
Investment in joint trading account (Note B)
6.695% due 01/02/01 ............................ 1,289 1,289
------ ------
TOTAL INVESTMENTS- 98.4% 78,866
Cash and Receivables, less payables- 1.6% 1,243
------ ------
NET ASSETS- 100.0% 80,109
====== ======
See notes to financial statements.
153
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
SMALL CAP EQUITY FUND
Market
Name of Issu Shares Value
(000's)
COMMON STOCK
Aerospace & Defense - 0.5%
Armor Holdings, Inc. * ......................... 20,400 $ 356
Automobile - 1.3%
ANC Rental Corporation * ....................... 58,400 204
Oshkosh Truck Corp. ............................ 16,200 713
------
917
Bank - 3.1%
Community Bankshares, Inc. ..................... 9,500 122
First Midwest Bancorp, Inc. .................... 2,100 60
Fulton Financial Corporation ................... 15,800 365
Net.B@nk, Inc. * ............................... 38,900 255
San Juan Basin Royalty Trust ................... 49,600 626
Silicon Valley Bancshares * .................... 14,700 508
Waypoint Financial Corp. * ..................... 25,800 284
------
2,220
Business Services - 0.0%
Digital Insight Corp. * ........................ 1,200 22
Chemical - 1.2%
OM Group, Inc. ................................. 9,900 541
Spartech Corp. ................................. 13,900 286
------
827
Commercial Sevices - 2.8%
HeadHunter.NET, Inc. * ......................... 48,300 344
Korn/Ferry International * ..................... 8,000 170
NetCreations, Inc. * ........................... 39,000 267
Niku Corporation * ............................. 26,100 191
Official Payments Corp. * ...................... 30,700 211
Quanta Services, Inc. * ........................ 7,600 244
RPM, Inc. ...................................... 36,400 312
Steiner Leisure, Ltd. * ........................ 15,000 210
------
1,949
Computer Equipment - 0.2%
Network Engines, Inc. .......................... 8,200 35
UNOVA, Inc. * .................................. 26,000 94
------
129
Computer Software & Services - 9.8%
About.com, Inc. * .............................. 31,200 840
Agency.Com Inc. * .............................. 14,400 56
Ask Jeeves, Inc. * ............................. 26,800 65
Blue Martini Software, Inc. .................... 7,700 102
Broadbase Software, Inc. * ..................... 31,600 198
Cambridge Technology Partners, Inc. * .......... 65,900 173
Click Commerce, Inc. * ......................... 14,000 292
click2learn.com, Inc. * ........................ 31,900 311
CNET Networks, Inc. ............................ 6,600 105
Corio, Inc. .................................... 48,600 100
Digex, Inc. * .................................. 14,300 322
Extensity, Inc. * .............................. 20,700 125
Harris Interactive, Inc. * ..................... 31,900 118
Informax, Inc. * ............................... 18,800 195
Ixia * ......................................... 10,900 249
MatrixOne, Inc. * .............................. 14,200 258
MicroStrategy, Inc. * .......................... 28,400 270
Moldflow Corp. * ............................... 7,100 162
National Information Consortium, Inc. * ....... 61,800 95
OpenTV Corp. * ................................. 28,500 296
Otg Software, Inc. * ........................... 11,600 187
PC-Tel, Inc. * ................................. 26,900 289
Pixar, Inc. * .................................. 4,600 138
Resonate, Inc. * ............................... 6,000 57
Riverdeep Group plc - ADR * .................... 9,700 194
RSA Security, Inc. * ........................... 7,500 397
Saba Software, Inc. ............................ 10,900 172
Selectica, Inc. * .............................. 12,900 312
SignalSoft Corp. * ............................. 11,900 117
VIA NET.WORKS, Inc. * .......................... 46,400 177
Websense, Inc. * ............................... 14,200 206
Witness Systems, Inc. * ........................ 14,100 190
WorldGate Communications, Inc. * ............... 17,900 68
------
6,836
Consumer Miscellaneous - 1.8%
Libbey, Inc. ................................... 21,700 659
NetRatings, Inc. * ............................. 15,900 234
The Scotts Company - Cl A * .................... 10,800 399
------
1,292
Diversified Operations - 1.9%
Donaldson Co., Inc. ............................ 24,400 679
Ionics, Inc. * ................................. 16,100 457
WESCO International, Inc. * .................... 23,600 171
------
1,307
Electric Power - 0.7%
MDU Resources Group, Inc. ...................... 14,900 484
Electrical Equipment - 1.9%
Advanced Energy Industries, Inc. * ............. 29,400 661
Integrated Electrical Services, Inc. * ........ 29,500 175
Pentair, Inc. .................................. 21,700 525
------
1,361
Electronic Products & Services - 18.7%
American Superconductor Corporation * ......... 15,400 440
Anadigics, Inc. * .............................. 34,300 562
Anaren Micro Circuits, Inc. .................... 18,800 1,263
ASM International N.V. * ....................... 26,500 247
AUGUST TECHNOLOGY Corp. ........................ 17,900 232
BE SEMICONDUCTOR INDUSTRIES .................... 7,000 64
Cymer, Inc. * .................................. 27,200 700
DSP Group, Inc. * .............................. 12,000 253
DuPont Photomasks, Inc. * ...................... 4,600 243
Electro Scientific Industries, Inc. * .......... 24,900 697
Electroglas, Inc. * ............................ 38,800 594
154
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
SMALL CAP EQUITY FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Electronic Products & Services - Continued
EMCORE Corporation * ........................... 27,000 $ 1,269
Exar, Corp. * .................................. 19,000 589
Helix Technology Corp. ......................... 25,900 613
LTX Corp. * .................................... 63,500 822
MedQuist, Inc. * ............................... 21,600 346
Microtune, Inc. * .............................. 6,600 109
Nanometrics, Inc. * ............................ 19,700 272
OmniVision Technologies, Inc. .................. 12,400 40
ON Semiconductor corporation * ................. 59,100 310
Parthus Technologies plc - ADR * ............... 7,200 189
Power Integrations, Inc. * ..................... 25,300 291
Rudolph Technologies, Inc. * ................... 10,900 329
Sawtek, Inc. * ................................. 7,700 356
Silicon Valley Group, Inc. * ................... 25,800 742
SpeedFAm-IPEC, Inc. * .......................... 53,700 325
Therma-Wave, Inc. * ............................ 33,200 465
Veeco Instruments Inc. * ....................... 7,800 313
Zoran Corp. * .................................. 14,400 223
Zygo Corporation * ............................. 8,600 243
------
13,141
Energy - Alternative Source - 0.9%
Proton Energy Systems, Inc. * .................. 9,500 100
Rayovac Corporation * .......................... 19,100 271
Valence Technology, Inc. * ..................... 25,000 233
------
604
Engineering & Construction - 0.4%
York International Corp. ....................... 9,500 291
Financial Services - 2.3%
American Capital Strategies, Ltd. .............. 30,600 771
AmeriCredit Corp. * ............................ 29,000 790
LendingTree, Inc. * ............................ 32,500 67
------
1,628
Food, Beverage & Tobacco - 2.4%
Corn Products International, Inc. .............. 19,700 573
Flowers Industries, Inc. ....................... 22,600 356
Suiza Foods Corp. * ............................ 15,400 739
------
1,668
Health Care Products - 9.3%
3 Dimensional Pharmaceuticals, Inc. * .......... 14,200 210
Aclara Biosciences Inc. * ...................... 14,200 154
Antigenics, Inc. * ............................. 22,800 252
Aviron * ....................................... 10,800 722
Charles River Laboratories * ................... 9,600 263
ChromaVision Medical Systems, Inc. * ........... 35,600 93
Diversa Corp. .................................. 17,200 308
Durect Corp. * ................................. 17,100 205
Exelixis, Inc. * ............................... 41,000 600
Genaissance Pharmaceuticals, Inc. * ............ 14,800 266
Gene Logic, Inc. * ............................. 19,700 362
Heska Corporation * ............................ 89,900 62
ILEX Oncology, Inc. * .......................... 19,600 516
Illumina, Inc. ................................. 14,000 225
Lexicon Genetics Incorporated * ................ 18,500 308
Tanox, Inc. * .................................. 11,400 447
Trimeris, Inc. * ............................... 14,800 812
Vical Incorporated * ........................... 23,900 442
ViroPharma Incorporated * ...................... 14,700 213
------
6,460
Health Care Services - 1.7%
Kendle International, Inc. * ................... 24,200 240
LifePoint Hospitals, Inc. * .................... 12,000 602
Orthodontic Centers of America, Inc. * ........ 10,500 328
------
1,170
Insurance - 4.5%
Everest Re Group, Ltd. ......................... 17,100 1,225
Fidelity National Financial, Inc. .............. 29,800 1,101
First American Financial Corp. ................. 24,100 792
Zenith National Insurance Corp. ................ 400 12
------
3,130
Leisure & Recreation - 5.3%
Championship Auto Racing Teams, Inc. * ........ 14,500 304
Cheap Tickets, Inc. * .......................... 40,300 393
Hotel Reservations Network, Inc. - Cl. A * ..... 5,700 162
International Speedway Corp. - Cl. A ........... 11,200 426
Polaris Industries Inc. ........................ 29,500 1,173
Speedway Motorsports, Inc. * ................... 27,700 665
World Wrestling Federation Entertainment,
Inc ....................................... 33,100 529
------
3,652
Machinery - 0.5%
Columbus McKinnon Corp. ........................ 25,200 224
SonoSite, Inc. * ............................... 7,600 97
------
321
Media - Publishing - 1.1%
Banta Corporation .............................. 15,200 386
Radio One, Inc. - Cl. D * ...................... 34,900 384
------
770
Media - TV / Radio - 5.7%
24/7 Media, Inc. ............................... 41,000 22
ACTV, Inc. * ................................... 27,700 118
BHC Communications, Inc. - Cl. A * ............. 2,000 258
Citadel Communications Corp. * ................. 32,000 384
Crown Media Holdings , Inc. .................... 27,500 559
Entercom Communications Corp. * ................ 7,200 248
Entravision Communications - Cl. A * ........... 20,000 367
Insight Communications Company, Inc. * ........ 25,800 606
Martha Stewart Living Omnimedia, Inc. -
Cl. A * ................................... 16,000 321
Mediacom Communications Corp. * ............... 22,800 392
155
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
SMALL CAP EQUITY FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Media - TV / Radio - Continued
Sirius Satellite Radio Inc. * ................. 14,600 $ 437
Tivo, Inc. * .................................. 17,000 91
Westwood One, Inc. * .......................... 9,000 174
------
3,977
Metals & Mining - 0.4%
Kaiser Aluminum Corporation ................... 78,100 288
Natural Gas Distribution - 2.4%
Energen Corp. ................................. 14,600 470
Midcoast Energy Resources, Inc. ............... 3,900 85
New Jersey Resources Corporation .............. 9,800 424
WGL Holdings , Inc. ........................... 24,000 730
------
1,709
Oil - Equipment & Service - 0.9%
Hydril Co. * .................................. 10,000 176
SEACOR SMIT, Inc. ............................. 9,200 484
------
660
Paper & Forest Products - 0.2%
Caraustar Industries, Inc. .................... 18,100 170
Real Estate Development - 0.5%
Trammell Crow Company * ....................... 25,400 343
Real Estate Investment Trust - 0.4%
MeriStar Hospitality Corp. .................... 12,400 244
Real Estate Operations - 1.2%
CB Richard Ellis Services, Inc. * ............. 27,200 398
Insignia Financial Group, Inc. * .............. 39,700 471
------
869
Retail - Department Stores - 2.9%
American Eagle Outfitters, Inc. * ............. 11,700 494
Dollar Thrifty Automotive Group, Inc. * ....... 15,700 294
Dollar Tree Stores, Inc. * .................... 18,500 453
Factory 2-U Stores Inc. * ..................... 14,900 494
Williams-Sonoma, Inc. ......................... 14,300 286
------
2,021
Retail - Food - 1.2%
Buca, Inc. * .................................. 20,300 298
Ruby Tuesday, Inc. ............................ 33,700 514
------
812
Shoe & Apparel Manufacturing - 1.6%
Kellwood Co. .................................. 20,900 442
Novel Denim Holdings Limited * ................ 16,000 140
Stride Rite Corp. ............................. 39,300 275
Tommy Hilfiger Corp. * ........................ 25,500 250
------
1,107
Steel - 0.4%
Remec, Inc. * ................................. 30,600 294
Telecommunication Equipment - 1.1%
Advanced Fibre Communications, Inc. * ........ 6,700 121
Advanced Switching Communications, Inc. * ..... 16,200 79
Carrier Access Corp. .......................... 39,900 359
Superior Telecom, Inc. ........................ 43,500 84
WebEx Communications, Inc. * .................. 7,500 157
------
800
Telecommunication Services - 1.7%
Allied Riser Communications Corp. * ........... 74,400 151
Aspect Communications Corp. * ................. 46,400 373
Focal Communications Corp. * .................. 30,900 216
Intermedia Communications, Inc. * ............. 19,000 137
interWave Communications Int., Ltd. * ........ 46,900 73
OmniSky Corp. * ............................... 30,900 257
------
1,207
Transportation Services - 3.4%
Alaska Air Group, Inc. * ...................... 10,900 324
America West Holdings Corp. - Cl. B * ........ 22,400 287
Landstar Systems, Inc. ........................ 9,700 538
USFreightways Corp. ........................... 10,700 322
Werner Enterprises, Inc. ...................... 56,000 952
------
2,423
------
TOTAL COMMON STOCK- ................................ 96.3% 67,459
Par
Value
(000's)
SHORT-TERM INVESTMENTS - 4.6%
Investment in joint trading account (Note B)
6.695% due 01/02/01 ...................... $ 3,191 3,191
--------- ------
TOTAL INVESTMENTS- 100.9% 70,650
Payables, less cash and receivables- (0.9)% (619)
--------- ------
NET ASSETS- 100.0% 70,031
========= ======
* Non-income producing security.
ADR-American Depository Receipt
See notes to financial statements.
156
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
INTERNATIONAL OPPORTUNITIES FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Australia - 0.8%
Brambles Industries, Ltd. (DIOP) .............. 13,553 $ 317
Publishing & Broadcasting, Ltd. (MEDP) ........ 48,083 349
Telstra Corp., Ltd. (TELS) .................... 89,907 321
------
987
Belgium - 0.8%
Dexia (BANK) .................................. 2,078 376
Fortis (B) (INSU) ............................. 16,540 537
UCB SA (HEAL) ................................. 1,180 44
------
957
Bermuda - 0.1%
Dao Heng Bank Group, Ltd. (BANK) ............. 17,000 97
Brazil - 0.7%
Petroleo Brasileiro SA * (OILX) ............... 7,000 177
Telecomunicacoes Brasileiras SA - ADR
(UTIT) ........................................ 7,014 511
Unibanco - Uniao de Bancos Brasileiros SA
- GDR (BANK) .................................. 4,985 147
------
835
Canada - 1.2%
Alcan Aluminum, Ltd. (META) ................... 9,632 330
Celestica, Inc. * (COMM) ...................... 12,952 702
Nortel Networks Corp. (TELE) .................. 6,833 220
Royal Bank of Canada (BANK) ................... 5,280 179
------
1,431
Denmark - 0.0%
Tele Danmark AS (TELS) ........................ 1,530 62
Finland - 2.4%
Nokia Oyj (HEAL) .............................. 66,035 2,945
France - 13.3%
Alcatel (TELE) ................................ 18,930 1,075
Altran Technologies, Inc. SA (AERO) .......... 950 215
Aventis SA * (HEAL) ........................... 2,706 236
AXA SA (INSU) ................................. 11,455 1,657
Banque Nationale de Paris (BANK) .............. 15,370 1,349
Bouygues SA (CONT) ............................ 4,390 199
Canal Plus (MEDI) ............................. 643 2
Cap Gemini SA (COMM) .......................... 2,050 331
Compagnie de St. Gobain (CONS) ................ 3,400 534
Groupe Danone (FOOD) .......................... 930 140
Hermes International (RETS) ................... 1,430 203
L'Oreal SA (HNBA) ............................. 2,030 174
Lafarge SA (CONS) ............................. 606 51
Legrand SA (ELEQ) ............................. 2,464 498
Louis Vuitton Moet Hennessy (FOOD) ............ 1,910 126
Rhone-Poulenc SA (BANK) ....................... 19,509 1,713
Sanofi-Synthelabo SA * (HEAL) ................. 16,518 1,101
Schneider SA (MACH) ........................... 2,621 191
Societe Generale - Cl. A (BANK) ............... 3,882 241
Societe Television Francaise 1 (MEDI) ......... 16,520 892
Sodexho Alliance SA (LEIS) .................... 784 145
STMICROELECTRONICS (ETRN) .................... 11,303 494
Total Fina SA - Cl. B (OILX) .................. 17,158 2,552
Vivendi Universal SA (DIOP) ................... 28,343 1,866
------
15,985
Germany - 4.0%
Allianz AG - Reg. (INSU) ...................... 2,315 866
Bayer AG (CHEM) ............................... 4,705 247
Bayerische Vereinsbank AG (BANK) .............. 12,991 736
Deutsche Bank AG (BANK) ....................... 13,634 1,146
Deutsche Telekom AG (UTIT) .................... 2,945 89
E.On AG (DIOP) ................................ 9,935 605
Gehe AG (HEAL) ................................ 7,078 267
Rhoen-Klinikum AG (HEAL) ...................... 1,720 97
SAP AG (SOFT) ................................. 5,000 581
Siemens AG (DIOP) ............................. 1,318 172
------
4,806
Hong Kong - 2.2%
Cheung Kong (Holdings), Ltd. (READ) .......... 52,000 665
China Telecom (Hong Kong), Ltd. (TELS) ........ 151,000 825
Henderson Land Development Co., Ltd. (READ).... 21,000 107
Hutchison Whampoa, Ltd. (COMM) ............... 67,900 846
Pacific Century Cyberworks, Ltd. * (TELE) ..... 263,914 169
------
2,612
India - 0.7%
Global Tele-Systems, Ltd. (TELE) .............. 14,000 240
Hindustan Lever Ltd. (CNSU) ................... 72,000 318
ICICI, Ltd. (FINL) ............................ 71,484 259
------
817
Ireland - 0.2%
SmartForce Public Limited Co. - ADR (SOFT) .... 6,166 232
Italy - 6.0%
Alleanza Assicurazioni (INSU) ................. 43,000 685
Assicurazioni Generali (INSU) ................. 8,400 334
Banca Intesa SpA (BANK) ....................... 353,353 1,699
Bipop-Carire SpA (BANK) ....................... 51,000 333
ENI SpA (OILS) ................................ 128,784 822
Mediaset SpA (MEDI) ........................... 10,000 119
Mediolanum SpA (INSU) ......................... 28,655 365
Olivetti SpA (COMM) ........................... 182,496 436
San Paolo-IMI SpA (BANK) ...................... 4,858 79
Tecnost SpA (COMP) ............................ 73,800 196
Telecom Italia Mobile SpA (TELS) .............. 111,000 886
Telecom Italia SpA (TELS) ..................... 29,900 331
UniCredito Italiano SpA (BANK) ............... 180,393 943
------
7,228
157
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
INTERNATIONAL OPPORTUNITIES FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Japan - 16.5%
Canon, Inc. (COMM) ............................ 42,000 $ 1,469
DDI Corp. (UTIT) .............................. 19 92
East Japan Railway Co. (TRAN) ................. 31 182
Fanuc, Ltd. (ELEQ) ............................ 6,000 408
Fuji Television Network, Inc. (MEDI) .......... 42 292
Fujitsu, Ltd. (ELEQ) .......................... 20,000 295
Furukawa Electric Co. (TELE) .................. 15,000 262
Hitachi, Ltd. (ETRN) .......................... 16,000 142
Ito-Yokado Co., Ltd. (RETS) ................... 4,000 199
KAO Corp. (HNBA) .............................. 9,000 261
Kokuyo Co. (COMM) ............................. 8,000 119
Kyocera Corp. (ETRN) .......................... 9,200 1,003
Makita Corp. (CNSU) ........................... 10,000 70
Marui Co., Ltd. (RETS) ........................ 30,000 453
Matsushita Communication Industries (TELS) .... 2,500 314
Matsushita Electric Industrial Co. (ETRN) ..... 43,000 1,027
Mitsui Fudosan Co., Ltd. (REAL) ............... 83,000 824
Mizuho Holdings, Inc. * (FINL) ................ 159 985
Murata Manufacturing Co., Ltd. (ETRN) ......... 10,100 1,184
NEC Corp. (COMP) .............................. 63,000 1,152
Nippon Telegraph & Telephone Corp. (UTIT) ..... 139 1,001
Nomura Securities Co., Ltd. (FUND) ........... 50,000 899
NTT Mobile Communications Network, Inc. (TELS). 32 551
Sankyo Co., Ltd. (HEAL) ....................... 16,000 383
Seven-Eleven Japan (RETF) ..................... 9,000 512
Shin-Etsu Chemical Co. (CHEM) ................. 10,000 385
Shiseido Co., Ltd. (CHEM) ..................... 18,000 201
Softbank Corp. (SOFT) ......................... 700 24
Sony Corp. (ETRN) ............................. 25,500 1,762
Sumitomo Bank (BANK) .......................... 75,000 770
Sumitomo Corp. (DIOP) ......................... 36,000 259
TDK Corp. (COMP) .............................. 3,700 360
Tokyo Electric Power (UTIE) ................... 100 2
Tokyo Electron, Ltd. (ETRN) ................... 6,200 341
Toshiba Corp. (ETRN) .......................... 120,000 802
Toyota Motor Corp. (AUTO) ..................... 100 3
Yamanouchi Pharmaceutical Co., Ltd. (HEAL) .... 19,000 821
------
19,809
Luxembourg - 0.1%
Society Europeenne des Satellites (MEDI) ...... 567 85
Mexico - 1.7%
Fomento Economico Mexicano SA de CV (FOOD) .... 103,000 307
Grupo Iusacell SA de CV - ADR V * (TELS) ...... 9,000 88
Grupo Televisa SA - GDR * (MEDI) ............. 21,407 962
Telefonos de Mexico SA - ADR (UTIT) .......... 15,580 703
------
2,060
Netherlands - 6.9%
ABN Amro Holding NV (BANK) .................... 5,076 115
Akzo Nobel NV (CHEM) .......................... 1,390 75
ASM Lithography Holding NV (COMP) ............. 24,180 549
Elsevier NV (MEDP) ............................ 13,140 193
Equant (COMP) ................................. 1,905 50
Fortis (NL) NV (INSU) ......................... 21,010 683
ING Groep NV (BANK) ........................... 26,500 2,117
Koninklije KPN NV (TELS) ...................... 2,821 32
Koninklijke (Royal) Philips Electronics NV
(ETRN) ....................................... 40,739 1,493
Royal Dutch Petroleum Co. (OILE) .............. 16,580 1,016
United Pan Europe (TELS) ...................... 2,446 25
VNU NV (MEDP) ................................. 30,790 1,514
Wolters Kluwer NV - CVA (MEDP) ................ 15,605 425
------
8,287
Norway - 0.3%
Orkla ASA (DIOP) .............................. 15,750 312
Portugal - 0.3%
Jeronimo Martins, SGPS, SA (RETF) ............. 7,183 74
Portugal Telecom, SA (TELS) ................... 29,560 271
------
345
Singapore - 0.7%
DBS Group Holdings, Ltd. (BANK) ............... 11,000 124
Singapore Telecommunications, Ltd. (TELS) ..... 83,000 129
United Overseas Bank, Ltd. (BANK) ............ 84,072 631
------
884
South Korea - 0.7%
Korea Telecom Corp. - ADR * (TELS) ............ 10,600 329
Pohang Iron & Steel Co., Ltd. - ADR (STEE) .... 7,053 110
Samsung Electronics (ETRN) .................... 3,180 397
------
836
Spain - 2.9%
Banco Bilbao Vizcaya SA (BANK) ................ 65,010 968
Banco Santander Central Hispano SA (BANK) ..... 76,399 818
Endesa SA (UTIE) .............................. 34,398 586
Repsol SA (OILX) .............................. 21,512 344
Telefonica SA (UTIT) .......................... 38,156 790
------
3,506
Sweden - 3.6%
Atlas Copco AB (MACH) ......................... 2,930 61
Electrolux AB - Ser. B (APPL) ................. 11,910 155
Hennes & Mauritz AB - B Shares (RETS) ......... 23,220 359
Nordic Baltic Holding AB (BANK) ............... 128,620 974
SANDVIK AB (MACH) ............................. 3,220 78
Securitas AB - B Shares (COMM) ................ 62,328 1,156
158
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
INTERNATIONAL OPPORTUNITIES FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Sweden - Continued
Telefonaktiebolaget LM Ericsson AB *
(TELS) ................................... 130,750 $ 1,489
-------
4,272
Switzerland - 4.5%
ABB, Ltd. (ENGI) .............................. 6,237 665
Adecco SA - Reg. (COMM) ....................... 865 544
Credit Suisse Group - Reg. (BANK) ............. 2,950 560
Nestle SA (FOOD) .............................. 746 1,740
Roche Holding AG (HEAL) ....................... 55 560
UBS AG (BANK) ................................. 7,922 1,293
-------
5,362
Taiwan - 0.4%
Taiwan Semiconductor (ETRN) ................... 183,000 439
United Kingdom - 23.9%
Abbey National First Capital BV (BANK) ........ 11,000 200
AstraZeneca Group plc (HEAL) .................. 25,701 1,297
Autonomy Corporation plc * (SOFT) ............ 1,500 43
Baltimore Technologies plc * (COMP) .......... 3,000 15
BG Group plc (UTIG) ........................... 13,522 53
BP Amoco plc (OILE) ........................... 68,000 549
British Telecommunications plc (TELS) ........ 41,000 351
Cable & Wireless plc (TELS) ................... 112,095 1,514
Cadbury Schweppes plc (FOOD) .................. 54,200 375
Celltech Group plc * (HEAL) ................... 19,000 336
Centrica plc * (UTIG) ......................... 30,900 120
David S. Smith Holdings plc (PAPR) ........... 18,000 45
Diageo plc (FOOD) ............................. 84,512 948
Dimension Data Holdings plc (SOFT) ........... 12,500 84
Electrocomponents plc (ETRN) .................. 16,000 158
GKN plc (AUTO) ................................ 5,000 53
GlaxoSmithKline plc * (HEAL) .................. 146,982 4,154
Granada Compass plc (LEIS) .................... 163,730 1,784
Granada Media plc (MEDI) ...................... 9,797 62
Hays plc (DIOP) ............................... 69,200 399
Hilton Group plc (LEIS) ....................... 20,000 63
HSBC Holdings plc (BANK) ...................... 28,800 428
Kingfisher plc (RETS) ......................... 53,000 394
Lattice Group * (ETRN) ........................ 13,522 31
Marconi plc (TELE) ............................ 57,600 619
Reckitt Benckiser plc (HNBA) .................. 2,000 28
Reed International plc (MEDP) ................. 196,000 2,052
Rio Tinto plc - Reg. (DIOP) ................... 49,381 870
Royal Bank of Scotland Group (BANK) .......... 144,570 3,420
Shell Transport & Trading Co. plc (OILX) ...... 268,934 2,208
Standard Chartered (BANK) ..................... 47,000 678
Tesco plc (FOOD) .............................. 125,400 511
Tomkins plc (DIOP) ............................ 132,496 291
Unilever plc (CNSU) ........................... 54,928 471
United News & Media plc (MEDP) ............... 18,500 235
Vodafone AirTouch plc (TELS) .................. 735,404 2,700
United Kingdom - Continued
WPP Group plc (COMM) .......................... 89,000 1,160
-------
28,699
United States - 0.2%
Flextronics International Ltd. (ETRN) ........ 7,800 222
-------
TOTAL COMMON STOCK- 95.1% 114,112
PREFERRED STOCK
Australia - 0.5%
News Corp., Ltd. (MEDI) ....................... 84,247 600
Brazil - 0.5%
Petroleo Brasileiro SA - Petrobras (OILS) ..... 27,192 638
-------
TOTAL PREFERRED STOCK- 1.0% 1,238
Par
Value
(000's)
SHORT-TERM INVESTMENTS - 3.3%
Investment in joint trading account (Note B)
6.695% due 01/02/01 ......................... $2,229 2,229
Euro Time Deposit
4.6% due 01/02/01 ........................... 1,800 1,690
------ -------
TOTAL SHORT-TERM INVESTMENTS- 4,029 3,919
------ -------
TOTAL INVESTMENTS- 99.4% 119,269
Cash and Receivables, less payables- 0.6% 765
------ -------
NET ASSETS- 100.0% 120,034
====== =======
* Non-income producing security.
ADR - American Depository Receipts
GDR - Global Depository Receipts
See notes to financial statements.
159
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
INTERNATIONAL OPPORTUNITIES FUND
UMMARY OF LONG-TERM SECURITIES BY INDUSTRY
Market % of
Industry Value Long-Term
Industry Abbreviation (000s) Investments
Bank ....................................... BANK 22,134 19.2%
Health Care Products ....................... HEAL 12,242 10.6%
Telecommunication Services ................. TELS 10,456 9.1%
Electronic Products & Services ............. ETRN 9,495 8.2%
Commercial Sevices ......................... COMM 6,765 5.9%
Oil & Natural Gas Exploration &
Production ............................. OILX 5,280 4.6%
Insurance .................................. INSU 5,127 4.4%
Diversified Operations ..................... DIOP 5,090 4.4%
Media - Publishing ......................... MEDP 4,767 4.1%
Food, Beverage & Tobacco ................... FOOD 4,148 3.6%
Media - TV / Radio ......................... MEDI 3,015 2.6%
Telephone .................................. UTIT 2,947 2.6%
Telecommunication Equipment ................ TELE 2,586 2.2%
Computer Equipment ......................... COMP 2,322 2.0%
Leisure & Recreation ....................... LEIS 1,991 1.7%
Retail - Department Stores ................. RETS 1,608 1.4%
Oil - Equipment & Service .................. OILE 1,565 1.4%
Oil ........................................ OILS 1,461 1.3%
Financial Services ......................... FINL 1,243 1.1%
Electrical Equipment ....................... ELEQ 1,200 1.0%
Computer Software & Services ............... SOFT 965 0.8%
Chemical ................................... CHEM 907 0.8%
Brokerage & Investment
Management ............................. FUND 899 0.8%
Consumer Miscellaneous ..................... CNSU 859 0.7%
Real Estate Operations ..................... REAL 824 0.7%
Real Estate Development .................... READ 772 0.7%
Engineering & Construction ................. ENGI 665 0.6%
Electric Power ............................. UTIE 589 0.5%
Retail - Food .............................. RETF 586 0.5%
Construction ............................... CONS 585 0.5%
Cosmetic & Personal Care ................... HNBA 463 0.4%
Machinery .................................. MACH 330 0.3%
Metals & Mining ............................ META 330 0.3%
Aerospace & Defense ........................ AERO 215 0.2%
Container .................................. CONT 199 0.2%
Transportation Services .................... TRAN 182 0.2%
Natural Gas Distribution ................... UTIG 173 0.2%
Household Appliances /
Furnishings ............................ APPL 154 0.1%
Steel ...................................... STEE 110 0.1%
Automobile ................................. AUTO 56 0.0%
Paper & Forest Products .................... PAPR 45 0.0%
-------- -------
$115,350 100.0%
======== ======
160
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
EQUITY INDEX FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Aerospace & Defense - 1.5%
Boeing Co. .................................... 38,468 $ 2,539
General Dynamics Corp. ........................ 8,600 671
Honeywell International, Inc. ................. 34,262 1,621
Lockheed Martin Corp. ......................... 18,400 625
Northrop Grumman Corp. ........................ 3,000 249
Raytheon Co. - Cl. B .......................... 14,600 453
United Technologies Corp. ..................... 20,200 1,588
--------
7,746
Auto & Truck Parts - 0.5%
AutoZone, Inc. * .............................. 5,800 165
B.F. Goodrich Co. ............................. 4,500 164
Cooper Tire & Rubber Co. ...................... 3,200 34
Cummins Engine Company, Inc. .................. 1,700 64
Dana Corp. .................................... 6,515 100
General Motors Corp. .......................... 24,400 1,243
Genuine Parts Co. ............................. 7,550 198
Goodyear Tire & Rubber Co. .................... 6,700 154
Johnson Controls, Inc. ........................ 3,700 192
Navistar International Corp., Inc. - Cl. B .... 2,700 71
PACCAR, Inc. .................................. 3,300 163
TRW, Inc. ..................................... 5,200 201
Visteon Corp. * ............................... 6,166 71
--------
2,820
Automobile - 0.4%
Delphi Automotive Systems Corp. ............... 24,169 272
Ford Motor Co. ................................ 81,136 1,901
--------
2,173
Bank - 5.3%
AmSouth Bancorporation ........................ 16,900 258
Bank of America Corp. ......................... 70,368 3,228
Bank of New York Co., Inc. .................... 31,700 1,749
Bank One Corp. ................................ 49,650 1,818
BB&T Corporation .............................. 17,200 642
Charter One Financial, Inc. ................... 9,450 273
Comerica, Inc. ................................ 6,700 398
Fifth Third Bancorp ........................... 20,225 1,208
First Union Corp. ............................. 42,846 1,192
Firstar Corp. ................................. 41,064 955
FleetBoston Financial Corp. ................... 38,870 1,460
Golden West Financial Corp. ................... 6,800 459
Huntington Bancshares, Inc. ................... 10,431 169
J.P. Morgan & Co., Inc. ....................... 7,000 1,159
KeyCorp ....................................... 18,700 524
National City Corp. ........................... 25,700 739
Northern Trust Corp. .......................... 9,700 791
Old Kent Financial Corp. ...................... 5,850 256
PNC Bank Corp. ................................ 12,300 899
Regions Financial Corp. ....................... 9,500 259
SouthTrust Corp. .............................. 7,200 293
State Street Corp. ............................ 7,000 870
Summit Bancorp ................................ 7,500 286
Suntrust Banks, Inc. .......................... 13,000 819
Synovus Financial Corp. ....................... 11,650 314
U.S. Bancorp .................................. 32,218 940
Union Planters Corp. .......................... 5,800 207
Wachovia Corp. ................................ 9,000 523
Washington Mutual, Inc. ....................... 23,418 1,243
Wells Fargo & Co. ............................. 73,900 4,115
--------
28,046
Brokerage & Investment Management - 1.3%
Bear Stearns Cos., Inc. ....................... 4,632 235
Franklin Resources, Inc. ...................... 10,400 396
Merrill Lynch & Co., Inc. ..................... 35,000 2,387
Morgan Stanley, Dean Witter, Discover &
Co. ......................................... 48,600 3,851
T. Rowe Price Group, Inc. ..................... 5,200 220
--------
7,089
Business Services - 0.4%
Automatic Data Processing, Inc. ............... 26,900 1,703
H & R Block, Inc. ............................. 4,200 174
Robert Half International, Inc. ............... 7,800 207
--------
2,084
Chemical - 1.0%
Air Products & Chemicals, Inc. ................ 9,800 402
Ashland, Inc. ................................. 3,000 108
Dow Chemical Co. .............................. 29,500 1,080
E.I. du Pont de Nemours & Co. ................. 44,782 2,163
Eastman Chemical Co. .......................... 3,300 161
Engelhard Corp. ............................... 5,300 108
Great Lakes Chemical Corp. .................... 2,300 86
Hercules, Inc. ................................ 4,600 88
Praxair, Inc. ................................. 6,700 297
Rohm & Haas Co. ............................... 9,327 339
Sigma-Aldrich Corp. ........................... 3,700 145
Union Carbide Corp. ........................... 5,800 312
--------
5,289
Commercial Services - 0.5%
American Greetings Corp. - Cl. A .............. 2,800 27
Convergys Corp. * ............................. 6,600 299
Deluxe Corp. .................................. 3,100 78
Ecolab, Inc. .................................. 5,600 242
Equifax, Inc. ................................. 6,100 175
Interpublic Group Cos., Inc. .................. 13,800 587
Omnicom Group, Inc. ........................... 7,900 655
Power One, Inc. * ............................. 3,300 130
Quintiles Transnational Corp. * ............... 4,600 96
R.R. Donnelley & Sons Co. ..................... 5,200 140
The Dun & Bradstreet Corp. * .................. 6,900 177
--------
2,606
Computer Equipment - 4.9%
Apple Computer, Inc. * ........................ 14,600 217
161
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
EQUITY INDEX FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Computer Equipment - Continued
Compaq Computer Corp. ......................... 72,511 $ 1,091
Comverse Technology, Inc. * ................... 7,100 771
Dell Computer Corp. * ......................... 112,600 1,964
Gateway, Inc. * ............................... 13,300 239
Hewlett-Packard Co. ........................... 85,500 2,699
Intel Corp. ................................... 290,300 8,727
International Business Machines Corp. ......... 75,900 6,452
Lexmark International Group, Inc. -
Cl. A * ..................................... 5,500 244
Network Appliance, Inc. * ..................... 13,600 873
Palm, Inc. .................................... 24,561 695
VERITAS Software Corp. * ...................... 16,900 1,479
Xerox Corp. ................................... 28,600 132
--------
25,583
Computer Software & Services - 7.5%
Adobe Systems, Inc. ........................... 10,400 605
America Online, Inc. * ........................ 100,300 3,490
Autodesk, Inc. ................................ 2,400 65
BMC Software, Inc. * .......................... 10,500 147
BroadVision, Inc. * ........................... 11,100 131
Cabletron Systems, Inc. * ..................... 7,800 117
Ceridian Corp. * .............................. 6,000 120
Citrix Systems, Inc. * ........................ 7,900 178
Computer Associates International, Inc......... 25,125 490
Computer Sciences Corp. * ..................... 7,100 427
Compuware Corp. * ............................. 15,500 97
Electronic Data Systems Corp. ................. 20,300 1,172
EMC Corp. * ................................... 94,312 6,272
First Data Corp. .............................. 17,100 901
IMS Health, Inc. .............................. 12,800 346
Intuit, Inc. * ................................ 8,700 343
Mercury Interactive Corp. * ................... 3,600 325
Microsoft Corp. ............................... 230,600 10,002
NCR Corp. * ................................... 4,000 196
Novell, Inc. * ................................ 14,100 74
Oracle Corp. * ................................ 242,100 7,036
Parametric Technology Corp. * ................. 11,800 158
Peoplesoft, Inc. .............................. 11,800 439
Sapient Corp. ................................. 5,000 60
Siebel Systems, Inc. * ........................ 18,200 1,231
Sun Microsystems, Inc. * ...................... 137,800 3,841
Unisys Corp. * ................................ 13,400 196
Yahoo!, Inc. * ................................ 23,600 712
--------
39,171
Construction - 0.0%
Vulcan Materials Co. .......................... 4,300 206
Consumer Miscellaneous - 0.7%
Avery Dennison Corp. .......................... 4,800 263
Black & Decker Corp. .......................... 3,500 137
Briggs & Stratton Corp. ....................... 800 35
Clorox Co. .................................... 10,100 359
Fortune Brands, Inc. .......................... 6,600 198
Newell Rubbermaid, Inc. ....................... 11,416 260
Parker-Hannifin Corp. ......................... 4,850 214
Sherwin-Williams Co. .......................... 7,000 184
Snap-On, Inc. ................................. 2,500 70
Stanley Works ................................. 3,800 119
Tupperware Corp. .............................. 2,500 51
Unilever NV - NY Shares ....................... 24,682 1,553
--------
3,443
Container - 0.1%
Bemis Co., Inc. ............................... 2,400 81
Pactiv Corp. * ................................ 7,400 92
Sealed Air Corp. * ............................ 3,589 109
--------
282
Cosmetic & Personal Care - 1.6%
Alberto-Culver Co. - Cl. B .................... 2,200 94
Avon Products, Inc. ........................... 10,200 488
Colgate-Palmolive Co. ......................... 24,700 1,595
Gillette Co. .................................. 45,300 1,637
International Flavors & Fragrances, Inc. ...... 4,400 89
Procter & Gamble Co. .......................... 56,400 4,424
--------
8,327
Diversified Operations - 6.8%
Amgen, Inc. * ................................. 44,400 2,839
Cendant Corp. * ............................... 30,899 297
Cooper Industries, Inc. ....................... 4,000 184
Corning, Inc. ................................. 39,800 2,102
Crane Co. ..................................... 2,950 84
Danaher Corp. ................................. 6,100 417
Eaton Corp. ................................... 3,100 233
El Paso Energy Corp. .......................... 10,200 731
General Electric Co. .......................... 428,500 20,541
Illinois Tool Works, Inc. ..................... 12,800 762
ITT Industries, Inc. .......................... 3,700 143
Minnesota Mining & Manufacturing Co. .......... 17,000 2,049
National Service Industries, Inc. ............. 1,700 44
Pall Corp. .................................... 5,300 113
PPG Industries, Inc. .......................... 7,500 347
Textron, Inc. ................................. 6,200 288
Tyco International, Ltd. ...................... 75,673 4,200
W.W. Grainger, Inc. ........................... 4,000 146
--------
35,520
Electric Power - 2.5%
AES Corp. * ................................... 19,800 1,096
Allegheny Energy, Inc. ........................ 4,700 227
Ameren Corp. .................................. 5,900 273
American Electric Power Co. ................... 14,360 668
Calpine Corp. * ............................... 11,700 527
Cinergy Corp. ................................. 6,800 239
CMS Energy Corp. .............................. 4,700 149
Consolidated Edison, Inc. ..................... 9,100 350
162
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
EQUITY INDEX FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Electric Power - Continued
Constellation Energy Group .................... 6,400 $ 288
Dominion Resources, Inc. ...................... 10,494 703
DTE Energy Co. ................................ 6,100 238
Duke Energy Co. ............................... 15,844 1,351
Edison International .......................... 14,300 223
Entergy Corp. ................................. 9,900 419
Exelon Corp. .................................. 13,950 979
Firstenergy Corp. ............................. 9,900 313
Fluor Corp. * ................................. 3,300 109
FPL Group, Inc. ............................... 7,900 567
GPU, Inc. ..................................... 5,200 191
Niagara Mohawk Holdings, Inc. ................. 7,800 130
NiSource, Inc. ................................ 9,149 281
PG & E Corp. .................................. 16,500 330
Pinnacle West Capital Corp. ................... 3,600 172
PPL Corp. ..................................... 6,200 280
Progress Energy, Inc. ......................... 8,857 436
Public Services Enterprise Group, Inc. ........ 9,300 452
Reliant Energy, Inc. .......................... 12,724 551
Southern Co. .................................. 28,600 951
Xcel Energy, Inc. ............................. 14,450 420
--------
12,913
Electrical Equipment - 0.4%
American Power Conversion ..................... 8,300 103
Emerson Electric Co. .......................... 18,400 1,450
Molex, Inc. ................................... 8,450 300
TXU Corp. ..................................... 11,312 501
--------
2,354
Electronic Products & Services - 5.7%
Adaptec, Inc. * ............................... 4,500 46
Advanced Micro Devices, Inc. * ................ 13,200 182
Agilent Technologies, Inc. * .................. 19,674 1,077
Altera Corp. * ................................ 17,700 466
Analog Devices, Inc. * ........................ 15,700 804
Applied Materials, Inc. * ..................... 34,700 1,325
Ball Corp. .................................... 1,400 64
Broadcom Corp. - Cl. A * ...................... 10,200 857
Cisco Systems, Inc. * ......................... 311,300 11,907
Conexant Systems, Inc. * ...................... 10,500 161
KLA-Tencor Corp. * ............................ 8,000 270
Linear Technology Corp. ....................... 13,200 610
LSI Logic Corp. * ............................. 14,100 241
Maxim Integrated Products, Inc. * ............. 12,400 593
Micron Technology, Inc. * ..................... 24,600 873
Millipore Corp. ............................... 1,900 120
Motorola, Inc. ................................ 94,995 1,924
National Semiconductor Corp. * ................ 7,600 153
Novellus Systems, Inc. * ...................... 5,600 201
PerkinElmer, Inc. ............................. 2,100 221
Pitney Bowes, Inc. ............................ 11,100 368
QLogic Corp. * ................................ 4,000 308
Rockwell International Corp. * ................ 8,100 386
Sanmina Corp. * ............................... 6,400 490
Solectron Corp. * ............................. 27,700 939
Tektronix, Inc. ............................... 4,000 135
Teradyne, Inc. * .............................. 7,400 276
Texas Instruments, Inc. ....................... 75,100 3,558
Thomas & Betts Corp. .......................... 2,500 40
Vitesse Semiconductor Corp. * ................. 8,100 448
Xilinx, Inc. * ................................ 14,500 669
--------
29,712
Energy - Alternative Source - 0.1%
Dynegy, Inc. - Cl.A ........................... 13,700 768
Financial Services - 4.5%
American Express Co. .......................... 57,700 3,170
Charles Schwab Corp. .......................... 59,275 1,682
CIT Group, Inc. - Cl. A * ..................... 11,300 227
Citigroup, Inc. ............................... 217,390 11,100
Household International, Inc. ................. 20,666 1,137
Jersey Puerto Morgan Chase & Co. .............. 56,750 2,579
Lehman Brothers Holdings, Inc. ................ 10,300 696
Mellon Financial Corp. ........................ 21,400 1,053
Paychex, Inc. ................................. 16,150 785
Providian Financial Corp. * ................... 12,000 690
Stillwell Financial, Inc. ..................... 9,600 379
--------
23,498
Food, Beverage & Tobacco - 4.7%
Adolph Coors Co. - Cl. B ...................... 1,600 128
Anheuser-Busch Cos., Inc. ..................... 38,900 1,770
Archer-Daniels-Midland Co. .................... 27,166 407
Brown-Forman Corp. - Cl. B .................... 2,800 186
Campbell Soup Co. ............................. 18,100 627
Coca-Cola Co. ................................. 107,500 6,551
Coca-Cola Enterprises, Inc. ................... 18,000 342
ConAgra, Inc. ................................. 23,700 616
General Mills, Inc. ........................... 12,500 557
H.J. Heinz Co. ................................ 15,100 716
Hershey Foods Corp. ........................... 5,900 380
Kellogg Co. ................................... 17,400 457
PepsiCo, Inc. ................................. 62,600 3,103
Philip Morris Cos., Inc. ...................... 96,200 4,233
Quaker Oats Co. ............................... 5,600 545
Ralston-Ralston Purina Group .................. 13,000 340
Sara Lee Corp. ................................ 36,100 887
Starbucks Corp. * ............................. 7,900 350
SUPERVALU, Inc. ............................... 5,600 78
Sysco Corp. ................................... 29,200 876
Tricon Global Restaurants, Inc. * ............. 6,150 203
UST, Inc. ..................................... 7,000 196
Williams Cos., Inc. ........................... 19,600 783
Wm. Wrigley Jr. Co. ........................... 4,900 469
--------
24,800
163
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
EQUITY INDEX FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Health Care Products - 12.4%
Abbott Laboratories ........................... 66,900 $ 3,240
Allergan, Inc. ................................ 5,900 571
ALZA Corp. * .................................. 9,400 400
American Home Products Corp. .................. 56,300 3,578
Applera Corporation - Applied Biosystems
Group ....................................... 9,100 856
Bausch & Lomb, Inc. ........................... 2,200 89
Baxter International, Inc. .................... 12,700 1,122
Becton, Dickinson & Co. ....................... 10,700 370
Biomet, Inc. .................................. 7,650 304
Boston Scientific Corp. * ..................... 17,500 240
Bristol-Myers Squibb Co. ...................... 84,600 6,255
C.R. Bard, Inc. ............................... 2,200 102
Cardinal Health, Inc. ......................... 12,000 1,195
Chiron Corp. * ................................ 7,700 343
Eli Lilly & Co. ............................... 48,800 4,541
Forest Laboratories, Inc. * ................... 3,700 492
Guidant Corp. * ............................... 13,600 734
Johnson & Johnson ............................. 60,100 6,314
King Pharmaceuticals, Inc. * .................. 7,500 388
MedImmune, Inc. * ............................. 9,300 443
Medtronic, Inc. ............................... 52,000 3,139
Merck & Co., Inc. ............................. 99,500 9,316
Pfizer, Inc. .................................. 272,875 12,552
Pharmacia Corp. ............................... 55,805 3,404
Schering-Plough Corp. ......................... 63,200 3,587
Stryker Corp. ................................. 8,500 430
UnitedHealth Group, Inc. ...................... 14,000 859
Watson Pharmaceuticals, Inc. * ................ 4,800 246
--------
65,110
Health Care Services - 0.7%
Biogen, Inc. * ................................ 6,400 384
HCA-The Healthcare Corporation ................ 24,250 1,067
HEALTHSOUTH Corp. * ........................... 16,500 269
Humana, Inc. * ................................ 7,200 110
Manor Care, Inc. * ............................ 4,400 91
McKesson HBOC, Inc. ........................... 12,133 436
St. Jude Medical, Inc. * ...................... 3,600 221
Tenet Healthcare Corp. * ...................... 13,900 618
Wellpoint Health Networks, Inc. * ............. 2,700 311
--------
3,507
Household Appliances / Furnishings - 0.1%
Leggett & Platt, Inc. ......................... 8,400 159
Maytag Corp. .................................. 3,500 113
Whirlpool Corp. ............................... 3,100 148
--------
420
Housing - 0.1%
Centex Corp. .................................. 2,800 105
Kaufman & Broad Home Corp. .................... 2,100 71
Masco Corp. ................................... 19,100 490
Pulte Corp. ................................... 2,200 93
--------
759
Insurance - 4.3%
Aetna US Healthcare, Inc. * ................... 6,000 246
AFLAC, Inc. ................................... 11,700 845
Allstate Corp. ................................ 31,800 1,385
Ambac Financial Group, Inc. ................... 4,500 263
American General Corp. ........................ 11,121 906
American International Group, Inc. ............ 100,629 9,918
Aon Corp. ..................................... 11,000 377
Chubb Corp. ................................... 7,700 666
Cigna Corp. ................................... 6,600 873
Cincinnati Financial Corp. .................... 6,900 273
Conseco, Inc. ................................. 13,991 185
Hartford Financial Services Group, Inc. ....... 9,900 699
Jefferson-Pilot Corp. ......................... 4,450 333
Lincoln National Corp. ........................ 8,200 388
Loews Corp. ................................... 4,200 435
Marsh & McLennan Cos., Inc. ................... 11,700 1,369
MBIA, Inc. .................................... 4,200 311
Metlife, Inc. ................................. 33,100 1,159
MGIC Investment Corp. ......................... 4,500 304
Progressive Corp. ............................. 3,100 321
Safeco Corp. .................................. 5,300 174
St. Paul Cos., Inc. ........................... 9,414 511
Torchmark, Inc. ............................... 5,500 211
UnumProvident Corp. ........................... 10,320 277
--------
22,429
Leisure & Recreation - 0.6%
Brunswick Corp. ............................... 3,800 63
Carnival Corp. ................................ 25,900 798
Eastman Kodak Co. ............................. 13,300 524
Harrah's Entertainment, Inc. * ................ 5,200 137
Hasbro, Inc. .................................. 7,125 76
Hilton Hotels Corp. ........................... 15,800 166
Marriott International, Inc. - Cl. A .......... 10,300 435
Mattel, Inc. .................................. 18,300 264
SABRE Group Holdings, Inc. * .................. 5,574 240
Starwood Hotels & Resorts Worldwide, Inc. ..... 8,000 282
--------
2,985
Machinery - 0.4%
Caterpillar, Inc. ............................. 15,000 710
Deere & Co. ................................... 10,000 458
Dover Corp. ................................... 8,700 353
FMC Corp. * ................................... 1,400 100
Ingersoll-Rand Co. ............................ 6,900 289
McDermott International, Inc. ................. 2,100 23
Thermo Electron Corp. * ....................... 7,400 220
--------
2,153
164
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
EQUITY INDEX FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Media - Publishing - 0.4%
Dow Jones & Co., Inc. ......................... 3,800 $ 215
Gannett Co., Inc. ............................. 11,400 719
Knight-Ridder, Inc. ........................... 3,300 188
Meredith Corp. ................................ 2,200 71
New York Times Co. - Cl. A .................... 7,300 292
Tribune Co. ................................... 13,265 560
--------
2,045
Media - TV / Radio - 2.3%
Clear Channel Communications, Inc. * .......... 25,300 1,226
Comcast Corp. - Cl. A ......................... 39,000 1,628
McGraw-Hill Cos., Inc. ........................ 8,600 504
The Walt Disney Co. ........................... 90,500 2,619
Time Warner, Inc. ............................. 57,500 3,004
Viacom, Inc. - Cl. B * ........................ 65,462 3,060
--------
12,041
Metal Production & Fabrication - 0.0%
Timken Co. .................................... 2,900 44
Worthington Industries, Inc. .................. 3,700 30
--------
74
Metals & Mining - 0.4%
Alcan Aluminum, Ltd. .......................... 14,000 479
Alcoa, Inc. ................................... 37,588 1,259
Inco, Ltd. .................................... 7,300 122
Phelps Dodge Corp. ............................ 3,396 190
--------
2,050
Natural Gas Distribution - 0.6%
Enron Corp. ................................... 32,200 2,676
KeySpan Corp. ................................. 5,800 246
Nicor, Inc. ................................... 2,000 86
Peoples Energy Corp. .......................... 1,200 54
Sempra Energy ................................. 8,804 205
--------
3,267
Oil - 1.3%
Conoco, Inc. - Cl. B .......................... 26,345 762
ONEOK, Inc. ................................... 1,200 58
Royal Dutch Petroleum Co. - NY Shares ......... 93,100 5,638
Tosco Corp. ................................... 6,200 211
--------
6,669
Oil & Natural Gas Exploration & Production - 4.4%
Amerada Hess Corp. ............................ 3,900 285
Anadarko Petroleum Corp. ...................... 10,662 758
Apache Corp. .................................. 5,200 364
Burlington Resources, Inc. .................... 9,210 465
Chevron Corp. ................................. 28,000 2,364
Coastal Corp. ................................. 9,400 830
Devon Energy Corp. * .......................... 5,600 342
EOG Resources, Inc. ........................... 4,900 268
Exxon Mobil Corp. ............................. 150,355 13,072
Kerr-McGee Corp. .............................. 4,070 272
Kinder Morgan, Inc. ........................... 5,000 261
Occidental Petroleum Corp. .................... 15,800 383
Phillips Petroleum Co. ........................ 11,400 648
Rowan Cos., Inc. * ............................ 4,000 108
Sunoco, Inc. .................................. 3,800 128
Texaco, Inc. .................................. 23,800 1,479
Transocean Sedco Forex, Inc. .................. 9,036 416
Unocal Corp. .................................. 10,400 402
USX-Marathon Group ............................ 13,400 372
--------
23,217
Oil - Equipment & Service - 0.7%
Baker Hughes, Inc. ............................ 14,200 590
Halliburton Co. ............................... 19,500 707
Nabors Industries, Inc. * ..................... 6,400 379
Schlumberger, Ltd. ............................ 24,400 1,950
--------
3,626
Paper & Forest Products - 0.8%
Boise Cascade Corp. ........................... 2,500 84
Georgia-Pacific Corp. ......................... 9,626 300
International Paper Co. ....................... 21,367 872
Kimberly-Clark Corp. .......................... 23,200 1,640
Louisiana-Pacific Corp. ....................... 4,600 47
Mead Corp. .................................... 4,400 138
Potlatch Corp. ................................ 1,200 40
Temple-Inland, Inc. ........................... 2,200 118
Westvaco Corp. ................................ 4,300 125
Weyerhaeuser Co. .............................. 9,200 467
Willamette Industries, Inc. ................... 4,800 225
--------
4,056
Personal & Commercial Lending - 0.5%
Capital One Financial Corp. ................... 8,700 573
Countrywide Credit Industries, Inc. ........... 4,900 246
MBNA Corp. .................................... 36,775 1,358
USA Education, Inc. ........................... 6,700 456
--------
2,633
Pollution Control - 0.2%
Allied Waste Industries, Inc. * ............... 8,600 125
Waste Management, Inc. ........................ 26,657 740
--------
865
Precious Metals/Gems/Stones - 0.1%
Barrick Gold Corp. ............................ 17,000 278
Freeport-McMoRan Copper & Gold, Inc. -
Cl. B ....................................... 6,300 54
Homestake Mining Co. .......................... 11,100 46
Newmont Mining Corp. .......................... 6,901 118
Placer Dome, Inc. ............................. 14,100 136
--------
632
165
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
EQUITY INDEX FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Retail - 0.1%
Costco Wholesale Corp. * ...................... 19,900 $ 795
Retail - Department Stores - 4.3%
Bed Bath & Beyond, Inc. * ..................... 12,000 269
Best Buy Co., Inc. ............................ 9,300 275
Circuit City Stores, Inc. ..................... 8,700 100
Consolidated Stores Corp. * ................... 5,300 56
Dillard's, Inc. - Cl. A ....................... 3,600 43
Dollar General Corp. .......................... 14,146 267
Federated Department Stores, Inc. * ........... 9,200 322
Gap, Inc. ..................................... 37,075 945
Harcourt General, Inc. ........................ 3,000 172
Home Depot, Inc. .............................. 100,550 4,594
J.C. Penney Co., Inc. ......................... 11,200 122
Kmart Corp. * ................................. 20,600 109
Kohl's Corp. .................................. 14,000 854
Limited, Inc. ................................. 18,452 315
Lowe's Cos., Inc. ............................. 17,000 756
May Department Stores Co. ..................... 13,150 431
Office Depot, Inc. ............................ 12,900 92
RadioShack Corp. .............................. 8,000 342
Sears, Roebuck & Co. .......................... 15,100 525
Staples, Inc. * ............................... 20,750 245
Target Corp. .................................. 39,400 1,271
Tiffany & Co. ................................. 6,200 196
Toys "R" Us, Inc. * ........................... 9,300 155
Wal-Mart Stores, Inc. ......................... 193,100 10,258
--------
22,714
Retail - Drug Stores - 0.6%
CVS Corp. ..................................... 17,000 1,019
Longs Drug Stores Corp. ....................... 1,900 46
TJX Cos., Inc. ................................ 12,900 358
Walgreen Co. .................................. 43,300 1,810
--------
3,233
Retail - Food - 1.0%
Albertson's, Inc. ............................. 18,177 482
Darden Restaurants, Inc. ...................... 5,300 121
McDonald's Corp. .............................. 56,700 1,928
Safeway, Inc. * ............................... 21,500 1,344
The Kroger Co. * .............................. 35,800 969
Wendy's International, Inc. ................... 4,900 128
Winn-Dixie Stores, Inc. ....................... 5,700 110
--------
5,082
Shoe & Apparel Manufacturing - 0.2%
Liz Claiborne, Inc. ........................... 2,300 96
Nike, Inc. - Cl. B ............................ 11,700 653
Nordstrom, Inc. ............................... 5,400 98
Reebok International, Ltd. .................... 2,400 66
V.F. Corp. .................................... 4,900 177
--------
1,090
Steel - 0.0%
Allegheny Technologies, Inc. .................. 3,750 60
Nucor Corp. ................................... 3,600 143
USX-U.S. Steel Group, Inc. .................... 3,800 68
--------
271
Telecommunication Equipment - 2.4%
ADC Telecommunications, Inc. * ................ 33,800 613
Andrew Corp. * ................................ 3,450 75
JDS Uniphase Corp. * .......................... 41,600 1,734
Lucent Technologies, Inc. ..................... 145,225 1,961
Nortel Networks Corp. ......................... 134,000 4,296
QUALCOMM, Inc. * .............................. 32,400 2,663
Scientific-Atlanta, Inc. ...................... 6,800 221
Symbol Technologies, Inc. ..................... 6,200 223
Tellabs, Inc. * ............................... 17,800 1,006
--------
12,792
Telecommunication Services - 2.5%
Avaya, Inc. * ................................. 12,302 127
Global Crossing, Ltd. * ....................... 38,590 552
Nextel Communications, Inc. - Cl. A * ......... 32,900 814
Qwest Communications International,
Inc. * ...................................... 72,062 2,955
Sprint PCS (PCS Group) * ...................... 40,600 830
Verizon Communications ........................ 116,774 5,853
WorldCom, Inc. * .............................. 125,077 1,759
--------
12,890
Telephone - 2.8%
Alltel Corp. .................................. 13,800 862
AT&T Corp. .................................... 163,207 2,826
BellSouth Corp. ............................... 80,900 3,312
CenturyTel, Inc. .............................. 6,000 214
SBC Communications, Inc. ...................... 146,397 6,990
Sprint Corp. .................................. 38,700 786
--------
14,990
Transportation Services - 0.7%
AMR Corp. * ................................... 6,400 251
Burlington Northern Santa Fe .................. 16,900 478
CSX Corp. ..................................... 8,900 231
Delta Air Lines, Inc. ......................... 5,300 266
Fedex Corp. * ................................. 12,400 495
Harley-Davidson, Inc. ......................... 13,500 537
Norfolk Southern Corp. ........................ 16,400 218
Ryder System, Inc. ............................ 2,600 43
Southwest Airlines Co. ........................ 22,100 741
U.S. Airways Group, Inc. * .................... 2,900 118
Union Pacific Corp. ........................... 10,600 538
--------
3,916
U.S. Government Agencies - 1.1%
Federal Home Loan Mortgage Corp. # ............ 29,900 2,060
166
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
EQUITY INDEX FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
U.S. Government Agencies - Continued
Federal National Mortgage Assoc. # ............ 43,600 $ 3,782
--------
5,842
--------
TOTAL COMMON STOCK- 96.4% 506,583
Par
Value
(000's)
SHORT-TERM INVESTMENTS - 3.5%
Investment in joint trading account
(Note B)
6.695% due 01/02/01 ........................... $ 17,460 17,460
U.S. Treasury Bill
5.88% due 03/15/01 ............................ 1,245 1,239
--------
18,699
-------- --------
TOTAL INVESTMENTS- 99.9% 525,282
Cash and Receivables, less payables- 0.1% 377
-------- --------
NET ASSETS- 100.0% 525,659
======== ========
* Non-income producing security.
# Securities, or a portion thereof, with an aggregate market value of $1,230
have been segregated to collateralize financial futures contracts.
See notes to financial statements.
167
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
HIGH YIELD BOND FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS
Aerospace & Defense - 0.9%
Argo-Tech Corp.
8.625% due 10/01/07 ........................... $ 15 $ 12
K & F Industries, Inc. - Sr. Sub. Notes
9.25% due 10/15/07 ............................ 225 218
--------
230
Auto & Truck Parts - 4.0%
Accuride Corp. - Sr. Sub. Notes
9.25% due 02/01/08 ............................ 125 77
Delco Remy International, Inc.
10.625% due 08/01/06 .......................... 195 158
Delco Remy International, Inc. - Sr. Notes
8.625% due 12/15/07 ........................... 50 41
Dura Operating Corp.
9.0% due 05/01/09 ............................. 185 154
Federal Mogul Corp.
7.5% due 01/15/09 ............................. 750 120
Federal-Mogul Corp. - Sr. Notes
8.8% due 04/15/07 ............................. 100 16
Hayes Lemmerz International, Inc.
9.125% due 07/15/07 ........................... 100 67
Hayes Lemmerz International, Inc. - Ser. B
9.125% due 07/15/07 ........................... 5 3
LDM Technologies, Inc.
10.75% due 01/15/07 ........................... 135 68
Lear Corp. - Ser. B
8.11% due 05/15/09 ............................ 200 181
Lear Corp. - Sub. Notes
9.5% due 07/15/06 ............................. 100 96
Numatics, Inc. - Ser. B
9.625% due 04/01/08 ........................... 100 62
--------
1,043
Automobile - 0.7%
Lear Corp. - Ser B
7.96% due 05/15/05 ............................ 140 132
Navistar International - Sr. Sub Notes Ser. B
8.0% due 02/01/08 ............................. 50 37
--------
169
Bank - 0.4%
Western Financial Bank - Sub.
8.875% due 08/01/07 ........................... 125 113
Business Services - 0.6%
Express Scripts, Inc. - Sr. Notes
9.625% due 06/15/09 ........................... 155 160
Chemical - 4.5%
Acetex Corp. - Sr. Notes
9.75% due 10/01/03 ............................ 120 109
Avecia Group plc
11.0% due 07/01/09 ............................ 200 198
Georgia Gulf Corp.
10.375% due 11/01/07 .......................... 200 185
Lyondell Chemical Co. - Debs
9.8% due 02/01/20 ............................. 110 97
Lyondell Chemical Co.
9.875% due 05/01/07 ........................... 345 335
Lyondell Chemical Co. - Notes Ser. A
9.625% due 05/01/07 ........................... 100 97
PCI Chemicals Canada, Inc.
9.25% due 10/15/07 ............................ 90 25
Texas Petrochemical Corp. - Sr Sub. Notes
11.125% due 07/01/06 .......................... 150 113
--------
1,159
Coal - 1.2%
P&L Coal Holdings Corp.
9.625% due 05/15/08 ........................... 300 299
Commercial Sevices - 2.9%
American Color Graphics, Inc.
12.75% due 08/01/05 ........................... 125 118
Iron Mountain, Inc.
8.75% due 09/30/09 ............................ 150 147
Pierce Leahy Command Co.
8.125% due 05/15/08 ........................... 75 70
Pierce Leahy Corp. - Sr. Sub. Notes
9.125% due 07/15/07 ........................... 220 218
Waste Management, Inc.
6.875% due 05/15/09 ........................... 200 188
--------
741
Computer Equipment - 0.4%
Seagate Technology, Intl. - 144A (a)
12.5% due 11/15/07 ............................ 110 104
Computer Software & Services - 2.2%
Concentric Network Corp. - Sr. Notes
12.75% due 12/15/07 ........................... 150 127
Covad Communications Group, Inc.
12.0% due 02/15/10 ............................ 115 29
Exodus Communications - Sr. Notes 144A (a)
11.625% due 07/15/10 .......................... 250 222
PSINet, Inc. - Sr. Notes
10.0% due 02/15/05 ............................ 200 56
11.0% due 08/01/09 ............................ 50 14
11.5% due 11/01/08 ............................ 375 113
--------
561
Consumer Miscellaneous - 2.1%
Lin Holdings Corp. - Sr. Disc. Notes
1.0% due 03/01/08 ............................. 650 465
Resolution Performance Products - Sr. Sub
Notes 144A (a)
13.5% due 11/15/10 ............................ 65 67
--------
532
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
HIGH YIELD BOND FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - Continued
Container - 2.8%
BWAY Corp. - Ser. B
10.25% due 04/15/07 ............................ $ 175 $ 158
Crown Cork & Seal - Notes
8.375% due 01/15/05 ............................ 350 199
Gaylord Container Corp. - Sr. Notes Ser. B
9.375% due 06/15/07 ............................ 350 217
Owens-Ilinois, Inc. - Debs
7.5% due 05/15/10 .............................. 85 45
Packaging Corp. of America
9.625% due 04/01/09 ............................ 125 129
--------
748
Diversified Operations - 1.8%
Consumers International - Sr. Notes
10.25% due 04/01/05 ............................ 350 35
Fisher Scientific International, Inc. - Sr. Sub.
Notes
9.0% due 02/01/08 .............................. 125 114
Kansas City Southern - Sr. Notes 144A (a)
9.5% due 10/01/08 .............................. 25 26
Prestolite Electric, Inc.
9.625% due 02/01/08 ............................ 225 101
Roller Bearing Co. America, Inc. - Ser. B
9.625% due 06/15/07 ............................ 30 26
SCG Holdings Corp.
12.0% due 08/01/09 ............................. 129 110
Westinghouse Air Brake Co. - Sr. Notes
9.375% due 06/15/05 ............................ 45 42
--------
454
Electric Power - 1.3%
Calpine Corp. - Sr. Notes
8.625% due 08/15/10 ............................ 100 98
Western Resources, Inc.
7.125% due 08/01/09 ............................ 65 60
Western Resources, Inc. - Sr. Notes
6.875% due 08/01/04 ............................ 180 173
--------
331
Electrical Equipment - 0.3%
Wesco Distribution, Inc. - Ser. B
9.125% due 06/01/08 ............................ 100 88
Financial Services - 1.8%
AMSC Acquisition Co., Inc. - Ser. B
12.25% due 03/31/08 ............................ 50 17
RBF Finance Co.
11.375% due 03/15/09 ........................... 220 254
Tembec Finance Corp. - Sr. Notes
9.875% due 09/30/05 ............................ 195 199
--------
470
Food, Beverage & Tobacco - 3.4%
Aurora Foods, Inc. - Sr. Sub. Notes
8.75% due 07/01/08 ............................. 75 51
9.875% due 02/15/07 ............................ 50 36
Azurix Corp.
10.75% due 02/15/10 ............................ 195 189
B&G Foods, Inc.
9.625% due 08/01/07 ............................ 125 81
Chiquita Brands International, Inc. - Sr. Notes
10.0% due 06/15/09 ............................. 290 101
Del Monte Foods Co. - Sr. Disc. Notes Ser. B
12.5% due 12/15/07 ............................. 172 127
Nash-Finch Co. - Ser. B
8.5% due 05/01/08 .............................. 275 201
New World Pasta Co.
9.25% due 02/15/09 ............................. 225 95
--------
881
Foreign - 0.3%
Satelites Mexicanos SA - Sr. Notes
10.125% due 11/01/04 ........................... 125 81
Health Care Products - 4.7%
ALARIS Medical Systems, Inc.
9.75% due 12/01/06 ............................. 550 203
ALARIS Medical, Inc. - Sr. Disc. Notes
1.0% due 08/01/08 .............................. 150 12
Beckman Coulter, Inc.
7.45% due 03/04/08 ............................. 50 48
Bergen Brunswig Corp.
7.375% due 01/15/03 ............................ 250 235
Conmed Corp.
9.0% due 03/15/08 .............................. 340 272
MEDIQ, Inc.
11.0% due 06/01/08 ............................. 125 1
Owens & Minor, Inc.
10.875% due 06/01/06 ........................... 131 135
Owens Illinois , Inc.
7.15% due 05/15/05 ............................. 165 96
Packard Bioscience, Co. - Sr. Sub Notes
9.375% due 03/01/07 ............................ 125 110
Warner Chilcott, Inc. - Ser. 144A (a)
12.625% due 02/15/08 ........................... 125 128
--------
1,240
Health Care Services - 3.7%
Beverly Enterprises, Inc.
9.0% due 02/15/06 .............................. 310 286
Bio-Rad Labs, Inc.
11.625% due 02/15/07 ........................... 107 110
Columbia/HCA Healthcare Corp.
7.25% due 05/20/08 ............................. 50 48
HCA - The Healthcare Co. - Notes
8.75% due 09/01/10 ............................. 65 69
Tenet Healthcare Corp. - Sr. Sub Notes
8.125% due 12/01/08 ............................ 175 177
8.625% due 01/15/07 ............................ 50 51
169
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
HIGH YIELD BOND FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - Continued
Health Care Services - Continued
Triad Hospitals Holdings, Inc.
11.0% due 05/15/09 ............................. $ 200 $ 212
--------
953
Household Appliances / Furnishings - 0.8%
Mattress Discounters Co.
12.625% due 07/15/07 ........................... 75 67
Sealy Mattress Co. - Ser. B
0.0% due 12/15/07 .............................. 175 131
--------
198
Housing - 1.4%
American Standard Cos., Inc.
7.625% due 02/15/10 ............................ 85 82
Grove Worldwide Llc - Sr. Sub. Notes
9.25% due 05/01/08 ............................. 85 8
Standard Pacific Corp. - Sr. Notes
8.5% due 06/15/07 .............................. 110 101
8.5% due 04/01/09 .............................. 185 164
--------
355
Leisure & Recreation - 4.5%
AMC Entertainment, Inc. - Sr. Sub. Notes
9.5% due 03/15/09 .............................. 125 71
9.5% due 02/01/11 .............................. 375 214
John Q. Hammons Hotels
8.875% due 02/15/04 ............................ 425 384
Station Casinos, Inc. - Sr. Sub Notes
9.875% due 07/01/10 ............................ 100 103
Station Casinos, Inc. - Sr. Sub. Notes
8.875% due 12/01/08 ............................ 225 221
True Temper Sports, Inc. - Sr. Sub. Notes
10.875% due 12/01/08 ........................... 175 169
--------
1,162
Media - Publishing - 0.7%
Adelphia Communications Corp.
9.875% due 03/01/07 ............................ 50 47
Sun Media Corp. - Sr. Sub. Notes
9.5% due 05/15/07 .............................. 150 145
--------
192
Media - TV / Radio - 10.2%
Adelphia Communications Corp.
9.375% due 11/15/09 ............................ 150 132
Allbritton Communications Co. - Sr. Sub.
Debs. Ser. B
9.75% due 11/30/07 ............................. 250 244
Allbritton Communications Co. - Sr. Sub.
Notes
8.875% due 02/01/08 ............................ 50 46
Benedek Communications Corp. - Sr. Disc
Notes
0.0% due 05/15/06 .............................. 325 211
Cablevision SA - Bonds
13.75% due 05/01/09 ............................ 60 44
Century Communications Corp. - Cl. A
8.875% due 01/15/07 ............................ 75 66
Century Communications Corp. - Sr. Disc
Notes
0.0% due 01/15/08 .............................. 500 200
Charter Communications Holdings, LLC - Sr
Notes
8.625% due 04/01/09 ............................ 575 522
Classic Cable, Inc.
10.5% due 03/01/10 ............................. 510 204
Classic Cable, Inc. - Ser. B
9.375% due 08/01/09 ............................ 20 8
EchoStar DBS Corp. - Sr. Notes
9.375% due 02/01/09 ............................ 625 609
Frontiervision Holding L.P. - Sr. Disc. Notes
1.0% due 09/15/07 .............................. 200 168
Granite Broadcassting Corp. - Sr. Sub. Notes
8.875% due 05/15/08 ............................ 175 93
United Pan-Europe Comm - Sr. Notes Ser. B
11.5% due 02/01/10 ............................. 125 81
Young Broadcasting, Inc.
8.75% due 06/15/07 ............................. 50 46
--------
2,674
Metals & Mining - 0.1%
Neenah Corp. - Ser. F
11.125% due 05/01/07 ........................... 40 30
Neenah Corp. - Sr. Sub. Notes
11.125% due 05/01/07 ........................... 10 7
--------
37
Natural Gas Distribution - 0.6%
Energy Corp. of America - Sr. Sub. Notes
9.5% due 05/15/07 .............................. 200 160
Oil & Natural Gas Exploration & Production - 2.7%
Costilla Energy, Inc. - Sr. Notes
10.25% due 10/01/06 ............................ 71 0
Plains Resources, Inc.
10.25% due 03/15/06 ............................ 200 199
Plains Resources, Inc. - Sr. Sub. Notes
10.25% due 03/15/06 ............................ 175 174
Pride International, Inc. - Sr.Notes
9.375% due 05/01/07 ............................ 100 103
10.0% due 06/01/09 ............................. 100 105
Texas Petrochemical Corp. - Sr. Sub. Notes
11.125% due 07/01/06 ........................... 175 131
--------
712
Oil - Equipment & Service - 1.0%
ICO, Inc. - Sr. Notes
10.375% due 06/01/07 ........................... 50 47
170
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
HIGH YIELD BOND FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - Continued
Oil - Equipment & Service - Continued
Key Energy Services, Inc.
14.0% due 01/15/09 .............................. $ 65 $ 74
Pioneer Natural Resources Co.
9.625% due 04/01/10 ............................. 45 48
Tuboscope, Inc.
7.5% due 02/15/08 ............................... 100 95
------
264
Paper & Forest Products - 1.2%
Doman Industries, Ltd.
12.0% due 07/01/04 .............................. 75 73
Doman Industries, Ltd. - Sr. Notes
8.75% due 03/15/04 .............................. 275 124
Paperboard Industries International, Inc. - Sr.
Notes
8.375% due 09/15/07 ............................. 40 30
Repap New Brunswick, Inc. - Sr. Notes
10.625% due 04/15/05 ............................ 75 77
Tembec Industries, Inc.
8.625% due 06/30/09 ............................. 15 15
------
319
Pollution Control - 0.9%
Allied Waste North America
7.625% due 01/01/06 ............................. 250 237
Real Estate Development - 0.5%
D.R. Horton, Inc.
8.0% due 02/01/09 ............................... 60 54
Del Webb Corp. - Sr. Sub. Debs.
10.25% due 02/15/10 ............................. 75 68
------
122
Retail - Drug Stores - 1.7%
Duane Reade, Inc. - Sr. Sub. Notes
9.25% due 02/15/08 .............................. 500 430
Retail - Food - 0.8%
Stater Bros. Holdings, Inc. - Senior Notes
10.75% due 08/15/06 ............................. 250 209
Shoe & Apparel Manufacturing - 2.0%
Levi Strauss & Co. - Notes
6.8% due 11/01/03 ............................... 100 81
7.0% due 11/01/06 ............................... 260 195
WestPoint Stevens, Inc. - Sr. Notes
7.875% due 06/15/08 ............................. 350 248
------
524
Steel - 3.0%
AK Steel Corp.
7.875% due 02/15/09 ............................. 250 222
AK Steel Corp. - Sr. Notes
9.125% due 12/15/06 ............................. 100 95
Algoma Steel, Inc.
12.375% due 07/15/05 ............................ 300 102
Steel - Continued
Armco, Inc. - Sr. Notes
9.0% due 09/15/07 ............................... 75 67
LTV Corp.
11.75% due 11/15/09 ............................. 433 9
National Steel Corp.
9.875% due 03/01/09 ............................. 320 128
Weirton Steel Corp. - Sr. Notes
11.375% due 07/01/04 ............................ 375 154
------
777
Telecommunication Equipment - 3.3%
Alestra SA de CV - Sr. Notes
12.125% due 05/15/06 ............................ 175 142
Covad Communications Group, Inc. - Sr. Notes
12.5% due 02/15/09 .............................. 50 13
Crown Castle International Corp. - Sr. Disc.
Notes
1.0% due 11/15/07 ............................... 250 200
Fairchild Semiconductor Corp.
10.375% due 10/01/07 ............................ 35 33
Fairchild Semiconductor Corp. - Sr. Sub. Notes
10.125% due 03/15/07 ............................ 250 230
Intermedia Communications, Inc. - Sr. Notes
Ser. B
9.5% due 03/01/09 ............................... 300 216
L-3 Communications Corp. - Sr. Sub. Notes
8.5% due 05/15/08 ............................... 35 33
------
867
Telecommunication Services - 14.8%
BTI Telecom Corp. - Sr. Notes
10.5% due 09/15/07 .............................. 100 25
Fonda Group, Inc. - Sr. Sub. Notes
9.5% due 03/01/07 ............................... 125 98
GCI, Inc. - Sr. Notes
9.75% due 08/01/07 .............................. 400 368
Global Crossing Holdings, Ltd.
9.125% due 11/15/06 ............................. 100 96
GST Telecommunications, Inc. - Sr. Sub. Notes
12.75% due 11/15/07 ............................. 50 1
GT Group Telecom - Sr. discount notes
0.0% due 02/01/10 ............................... 180 61
Hyperion Telecommunications, Inc. - Sr. Disc.
Notes
13.0% due 04/15/03 .............................. 250 180
Hyperion Telecommunications, Inc. - Sr. Notes
12.25% due 09/01/04 ............................. 165 132
Insight Midwest
9.75% due 10/01/09 .............................. 235 233
Insight Midwest LP - Sr. Notes 144A (a)
10.5% due 11/01/10 .............................. 40 41
Intermedia Communications, Inc. - Sr. Notes
8.875% due 11/01/07 ............................. 275 192
171
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
HIGH YIELD BOND FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - Continued
Telecommunication Services - Continued
KMC Telecom Holdings, Inc. - Sr. Disc. Notes
1.0% due 02/15/08 ............................... $ 275 $ 33
Level 3 Communications, Inc.
11.25% due 03/15/10 ............................. 200 175
Level 3 Communications, Inc. - Sr. Notes
9.125% due 05/01/08 ............................. 30 24
McleodUSA, Inc.
8.125% due 02/15/09 ............................. 175 150
McLeodUSA, Inc. - Sr. Notes
8.375% due 03/15/08 ............................. 230 201
9.5% due 11/01/08 ............................... 55 50
Nextel Communications - Sr. Notes
9.375% due 11/15/09 ............................. 150 141
Nextel Communications, Inc. - Sr. Disc. Notes
1.0% due 10/31/07 ............................... 650 483
NEXTLINK Communications, Inc. - Sr. Disc.
Notes
1.0% due 04/15/08 ............................... 300 155
NTL Communications Corp. - Sr. Notes
1.0% due 10/01/08 ............................... 615 344
RCN Corp.
0.0% due 10/15/07 ............................... 50 18
10.0% due 10/15/07 .............................. 200 112
RCN Corp. - Sr. Disc. Notes
1.0% due 07/01/08 ............................... 425 132
RSL Communications plc
9.125% due 03/01/08 ............................. 100 4
Telecommunications Techniques Co.
9.75% due 05/15/08 .............................. 140 123
Time Warner Telecom Llc - Sr. Notes
9.75% due 07/15/08 .............................. 290 270
------
3,842
Telephone - 0.9%
e.spire Communications, Inc. - Sr. Disc. Notes
1.0% due 04/01/06 ............................... 75 26
ITC DeltaCom, Inc. - Sr. Notes
8.875% due 03/01/08 ............................. 125 82
9.75% due 11/15/08 .............................. 75 53
Viatel, Inc. - Sr. Notes
11.25% due 04/15/08 ............................. 125 39
11.5% due 03/15/09 .............................. 150 46
------
246
Transportation Services - 0.6%
Dunlop Standard Aero Holdings - Sr. Notes
11.875% due 05/15/09 ............................ 150 150
------
TOTAL PUBLICLY-TRADED BONDS- ............... 91.7% 23,834
PREFERRED STOCK
Food, Beverage & Tobacco - 0.0%
Aurora Foods, Inc. .............................. 2,214 $ 5
Media - Publishing - 0.4%
Primedia, Inc. .................................. 1,250 100
Telecommunication Services - 0.2%
XO Communications, Inc. ......................... 128 58
------
TOTAL PREFERRED STOCK- ..................... 0.6% 163
WARRANTS
Household Appliances / Furnishings - 0.0%
Mattress Discounters Corp.
expires 07/07/15 (Cost $1) ...................... 75 1
Telecommunication Services - 0.0%
GT Group Telecom, Inc.
expires 02/01/10 (Cost $9) ...................... 180 7
KMC Telecom Holdings, Inc. - WT 144A (a)
expires 01/31/08 (Cost $0) ...................... 250 1
------
8
------
TOTAL WARRANTS- ............................ 0.0% 9
Par
Value
(000's)
SHORT-TERM INVESTMENTS - 4.4%
Investment in joint trading account (Note B)
6.695% due 01/02/01 ........................... 1,127 1,127
------ ------
TOTAL INVESTMENTS- 96.7% 25,133
Cash and Receivables, less payables- 3.3% 845
------ ------
NET ASSETS- 100.0% 25,978
====== ======
(a) Pursuant to Rule 144A under the Securities Act of 1993, these securities
may be resold in transactions exempt from registration, normally to
qualified institutional buyers. At December 31, 2000, securities aggregated
$589 or 2.27% of net assets of the Portfolio.
See notes to financial statements.
172
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
GLOBAL BOND FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS
Australia - 0.9%
Commonwealth of Australia - Bonds
(GOVF)
7.5% due 07/15/05 .............................. $ 1,000 $ 604
Canada - 2.0%
Government of Canada - Bonds (GOVF)
7.0% due 12/01/06 .............................. 1,100 793
Government of Canada (GOVF)
7.25% due 06/01/07 ............................. 750 550
------
1,343
Denmark - 2.1%
Danske Kredit (LEND)
6.0% due 10/01/29 .............................. 5,975 721
Kingdom of Denmark - Bullet Bond
(GOVF)
8.0% due 03/15/06 .............................. 5,080 726
------
1,447
Finland - 4.4%
Republic of Finland - Bonds (GOVF)
5.75% due 02/23/11 ............................. 3,050 3,015
France - 4.4%
Government of France - Bonds (GOVF)
5.25% due 04/25/08 ............................. 1,580 1,529
Government of France - O.A.T. (GOVF)
5.5% due 04/25/07 .............................. 1,490 1,466
------
2,995
Germany - 16.7%
Allgemeine Hypothekenbank (BANK)
5.0% due 09/02/09 .............................. 500 454
Bayer Hypo Veriens (BANK)
5.0% due 04/02/08 .............................. 1,000 922
Bundesrepublic Deutschland - Bonds
(GOVF)
6.75% due 04/22/03 ............................. 3,000 2,953
Federal Republic of Germany - Bonds
(GOVF)
5.25% due 01/04/08 ............................. 3,750 3,631
6.875% due 05/12/05 ............................ 2,750 2,813
Mannesman Finance BV (MACH)
4.75% due 05/27/09 ............................. 750 639
------
11,412
Greece - 1.5%
Hellenic Republic - Bonds (GOVF)
8.6% due 03/26/08 .............................. 220,000 721
8.8% due 06/19/07 .............................. 100,000 327
------
1,048
Ireland - 0.9%
Republic of Ireland - Debs. (GOVF)
4.0% due 04/18/10 .............................. 750 649
Japan - 2.2%
International Bank of Reconstruction &
Development - Debs. (BANK)
4.75% due 12/20/04 .............................. $150,000 $ 1,514
Luxembourg - 1.4%
Ford Motor Credit Co. (LEND)
5.25% due 06/16/08 .............................. 2,100 957
Netherlands - 8.6%
Deutsche Telekom International Finance
(TELS)
6.625% due 07/06/10 ............................. 1,000 956
Government of Netherlands - Bonds
(GOVF)
5.5% due 07/15/10 ............................... 1,780 1,735
5.75% due 09/15/02 .............................. 1,200 1,148
6.5% due 04/15/03 ............................... 1,500 1,465
Government of Netherlands - Bonds Series
1 & 2 (GOVF)
6.0% due 01/15/06 ............................... 600 595
------
5,899
New Zealand - 0.7%
Government of New Zealand - Bonds
(GOVF)
8.0% due 11/15/06 ............................... 1,000 485
Norway - 0.8%
Norwegian Government - Bonds (GOVF)
6.75% due 01/15/07 .............................. 5,000 587
Spain - 3.8%
Kingdom of Spain - Notes (GOVF)
3.1% due 09/20/06 ............................... 120,000 1,171
4.0% due 01/31/10 ............................... 1,650 1,426
------
2,597
Supra National - 12.3%
Asian Development Bank (BANK)
5.625% due 02/18/02 ............................. 150,000 1,391
Bank Of Ireland (BANK)
6.45% due 02/10/10 .............................. 1,000 965
BAT International Finance (FOOD)
4.875% due 02/25/09 ............................. 600 490
European Investment Bank - Notes (BANK)
3.0% due 09/20/06 ............................... 230,000 2,243
International Bank of Reconstruction &
Development - Debs. (BANK)
4.5% due 03/20/03 ............................... 160,000 1,519
International-American Development Bank -
Bonds (BANK)
1.9% due 07/08/09 ............................... 100,000 909
Royal Bank of Scotland plc (BANK)
8.375% due 01/29/07 ............................. 300 492
173
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
GLOBAL BOND FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - Continued
Supra National - Continued
Standard Charter Bank (BANK)
5.375% due 05/06/09 ........................... $ 450 $ 401
--------
8,410
Sweden - 0.8%
Swedish Government (GOVF)
5.0% due 01/28/09 ............................. 5,200 561
United Kingdom - 4.0%
U.K. Treasury (GOVF)
7.25% due 12/07/07 ............................ 805 1,351
U.K. Treasury - Bonds (GOVF)
8.5% due 12/07/05 ............................. 800 1,368
--------
2,719
United States - 28.0%
Belo AH Corp. - Sr. Notes (CONS)
7.125% due 06/01/07 ........................... 100 96
CenturyTel, Inc. - Sr. Notes Ser. H (TELS)
8.375% due 10/15/10 ........................... 175 182
Chancellor Media Corp. (MEDI)
8.0% due 11/01/08 ............................. 125 126
Charter Communication Holdings LLC - Sr.
Notes (MEDI)
8.25% due 04/01/07 ............................ 375 339
Clear Channel Communications (MEDI)
7.65% due 09/15/10 ............................ 250 255
Crown Castle International Corp. - Sr. Notes
(MEDI)
10.75% due 08/01/11 ........................... 75 78
Federal National Mortgage Assoc. - Sr.
Notes (GOVA)
2.125% due 10/09/07 ........................... 100,000 923
Federal National Mortgage Assoc. (GOVA)
5.125% due 02/13/04 ........................... 1,500 1,478
6.0% due 05/15/08 ............................. 350 351
6.25% due 05/15/29 ............................ 500 502
6.5% due 07/01/29 ............................. 499 492
6.5% due 08/01/13 ............................. 488 488
7.0% due 11/01/30 ............................. 749 750
7.0% due 12/01/30 ............................. 400 400
7.5% due 12/01/30 ............................. 500 507
8.0% due 12/01/30 ............................. 500 512
Fox Sports Networks LLC - Sr. Disc. Notes
(MEDI)
0.0% due 08/15/07 ............................. 125 110
KFW International Finance, Inc. (GOVF)
1.75% due 03/23/10 ............................ 220,000 1,958
Liberty Media Corp. - Bonds (MEDI)
7.875% due 07/15/09 ........................... 100 98
NiSource Finance Corp. - 144A (a) (FINL)
7.875% due 11/15/10 ........................... 125 131
Spectrasite Holdings, Inc. - Sr. Notes Ser. B
(TELE)
10.75% due 03/15/10 ........................... 75 70
United States - Continued
Time Warner, Inc. - Notes (MEDI)
8.18% due 08/15/07 ............................ 150 160
U.S. Treasury - Bonds
(GOVE)
5.25% due 02/15/29 ............................ 250 240
U.S. Treasury - Notes
(GOVE)
5.75% due 08/15/03 ............................ 2,000 2,029
6.25% due 02/15/07 ............................ 2,500 2,639
6.875% due 05/15/06 ........................... 1,000 1,082
U.S. Treasury - Bonds
(GOVE)
7.25% due 05/15/16 ............................ 1,750 2,058
8.875% due 08/15/17 ........................... 625 850
Viacom, Inc. (MEDI)
7.7% due 07/30/10 ............................. 150 158
Vodafone Group plc - Notes (TELS)
7.625% due 02/15/05 ........................... 100 103
--------
19,165
--------
TOTAL PUBLICLY-TRADED BONDS- 95.5% 65,407
SHORT-TERM INVESTMENTS - 2.5%
United States - 2.5%
Investment in joint trading account (Note B)
6.695% due 01/02/01 ........................... 1,616 1,616
U.S. Treasury Bill (GOVE) .......................
5.955% due 03/22/01 ........................... 100 99
--------
1,716
-------- --------
TOTAL INVESTMENTS- 98.0% 67,123
Cash and Receivables, less payables- 2.0% 1,350
-------- --------
NET ASSETS- 100.0% $68,473
======== ========
(a) Pursuant to Rule 144A under the Securities Act of 1993, these securities
may be resold in transactions exempt from registration, normally to
qualified institutional buyers. At December 31, 2000, securities aggregated
$131 or .19% of net assets of the Portfolio.
See notes to financial statements.
SUMMARY OF LONG-TERM SECURITIES BY INDUSTRY
Market % of
Industry Value Long-Term
Industry Abbreviation (000s) Investments
Foreign Governmental............. GOVF 33,626 51.4%
Bank ....... .................... BANK 10,810 16.5%
U.S. Governmental................ GOVE 8,897 13.4%
U.S. Government Agencies......... GOVA 6,405 9.7%
Personal & Commercial Lending.... LEND 1,678 2.6%
Media - TV / Radio............... MEDI 1232 1.9%
Telecommunication Services....... TELS 1138 1.8%
Machinery........................ MACH 639 1.0%
Food, Beverage & Tobacco......... FOOD 490 0.7%
Telecommunication Equipment...... TELE 251 0.4%
Financial Services............... FINL 131 0.2%
Media - Publishing............... MEDP 110 0.2%
-------- --------
$65,407 100.0%
======== ========
174
NOTES TO FINANCIAL STATEMENTS
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
(000's Omitted)
NOTE A--ORGANIZATION
The John Hancock Variable Series Trust I (the "Trust") is a diversified
open-end management investment company registered under the Investment Company
Act of 1940, as amended. The Trust is organized as a Massachusetts business
trust. The Trust consists of thirty-two funds: Large Cap Growth, Fundamental
Growth (formerly, Fundamental Mid Cap Growth), Aggressive Balanced, Active Bond
(formerly, Sovereign Bond), CORE Bond, Emerging Markets Equity, International
Equity Index, International Equity, Small Cap Growth, Global Balanced (formerly,
International Balanced), Mid Cap Growth, Mid Cap Blend, Large Cap Value, Large
Cap Value CORE, American Leaders Large Cap Value, Large/Mid Cap Value, Money
Market, Mid Cap Value, Small/Mid Cap Growth, Bond Index, Large Cap Aggressive
Growth, Small/Mid Cap CORE, Small/Mid Cap Value, Real Estate Equity, Growth &
Income, Managed, Short-Term Bond, Small Cap Equity (formerly, Small Cap Value),
International Opportunities, Equity Index, High Yield Bond and Global Bond Funds
(collectively, the "Funds"). The Trust may add or delete Funds in the future to
accommodate various investment objectives. The Trust has issued shares of
beneficial interest exclusively to John Hancock Variable Life Account U
("JHVLAU"), John Hancock Variable Life Account V ("JHVLAV"), John Hancock
Variable Life Account S ("JHVLAS"), and John Hancock Variable Annuity Account I
("JHVAAI") to fund policies and contracts issued by the John Hancock Variable
Life Insurance Company ("JHVLICO"), and to John Hancock Variable Annuity Account
U ("JHVAAU"), John Hancock Variable Annuity Account V ("JHVAAV"), John Hancock
Variable Life Insurance Account UV ("JHVLAUV"), John Hancock Variable Annuity
Account H ("JHVAAH"), and John Hancock Variable Annuity Account JF ("JHVAAJF")
to fund contracts and policies issued by John Hancock Life Insurance Company
("John Hancock" or "JHLICO") to Investors Partner Life Account L ("IPLL") to
fund contracts and policies issued by Investors Partner Life ("IPL"), and to
John Hancock Variable Life Account PPM-1 ("PPM-1").
NOTE B--ACCOUNTING POLICIES
Estimates: The preparation of the financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
Valuation of Investments: For the Large Cap Growth, Fundamental Growth,
Aggressive Balanced, Emerging Markets Equity, Small Cap Growth, Mid Cap
Growth, Mid Cap Blend, Large Cap Value, Large Cap Value CORE, American Leaders
Large Cap Value, Large/Mid Cap Value, Mid Cap Value, Small/Mid Cap Growth, Large
Cap Aggressive Growth, Small/Mid Cap CORE, Small/Mid Cap Value, Real Estate
Equity, Growth & Income, Managed, Small Cap Equity, and Equity Index Funds:
Common stocks and other such securities traded on national exchanges are
normally valued on the basis of closing prices. Securities traded in the
over-the-counter market and securities with no sales on the day of valuation are
normally valued at their last available bid price.
For the Active Bond, CORE Bond, Bond Index, Managed, Short-Term Bond,
High Yield Bond and Global Bond Funds: Debt investment securities having a
primary market over-the-counter are valued on the basis of valuations furnished
by a pricing service which determines valuations for normal institutional size
trading units of debt securities, without exclusive reliance upon quoted prices.
For the Money Market Fund: The Board of Trustees has determined that
the appropriate method for valuing Fund securities is amortized cost, so long as
the average weighted maturity of money market instruments comprising the Fund
does not exceed 90 days. Accordingly, Fund securities are valued at amortized
cost, which approximates market value. The amortized cost method involves
valuing a security at its cost on the date of purchase and thereafter assuming a
constant amortization to maturity of the difference between the principal amount
due at maturity and the cost of the security to the Fund.
175
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
(000's Omitted)
For each of the Funds, short-term investments, with a maturity not to
exceed 60 days, are valued at amortized cost, which approximates market value.
For the International Equity Index, International Equity, Global
Balanced and International Opportunities Funds: Investments in securities traded
on national securities exchanges in the United States or on equivalent foreign
exchanges are normally valued at the last quoted sales price on such exchanges
as of the close of business on the date of which assets are valued. Securities
traded in the over-the-counter market and securities traded with no sales on the
day of valuation are normally valued at their last available bid price. All Fund
securities initially expressed in terms of foreign currencies have been
translated into U.S. Dollars as described in "Currency Translation".
Investment securities for which no current market quotations are readily
available, including certain foreign securities, when held by the Funds, are
valued at fair value as determined in good faith by the Board of Trustees.
Investment security transactions are recorded on the date of purchase or sale.
Dividend income is recorded on the ex-dividend date and interest income is
recorded on the accrual basis. Dividend income for the Large Cap Growth,
Emerging Markets Equity, International Equity Index, International Equity,
Global Balanced, Large Cap Value, Large Cap Value CORE, Small/Mid Cap Growth,
Large Cap Aggressive Growth, Small/Mid Cap Value, Real Estate Equity, Growth &
Income, Managed, Small Cap Equity, International Opportunities and Equity Index
Funds are shown net of foreign taxes withheld of $4, $30, $444, $25, $28, $28,
$1, $4, $1, $1, $9, $182, $102, $1, $163, and $26, respectively. Realized gains
and losses from security transactions are determined on the basis of identified
cost.
Bank Borrowings: The Funds (except for Money Market and International
Equity Index Funds) are permitted to have bank borrowings for temporary or
emergency purposes, including the meeting of redemption requests that other-
wise might require the untimely disposition of securities. The Funds have
entered into a syndicated line of credit agreement with State Street Bank and
Trust Company ("SSBT"). This agreement enables the Funds to participate in an
unsecured line of credit, which permits borrowings up to $75 million,
collectively. Interest is charged to each Fund, based on its borrowing. In
addition, a commitment fee is charged to each Fund based on the average daily
unused portion of the line of credit and is allocated among the participating
Funds. Interest expense paid under the line of credit, net of the portion paid
by the Adviser amounting to $22 for Bond Index Fund, is included under the
caption "Other fees" in the Statement of Operations. The following funds had
borrowings under the line of credit during the year ended December 31, 2000:
Average Daily Loan Balance During the Weighted Average
Fund Period for which Loans Were Outstanding Interest Rate Interest Expense
---- --------------------------------------- ------------- ----------------
Fundamental Growth $1,475 7.14% $2
Mid Cap Growth 1,641 6.42 --
Mid Cap Value 1,478 7.12 1
Bond Index 4,678 7.10 --
Real Estate Equity 1,095 7.15 1
Small Cap Equity 3,393 6.44 2
176
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
(000's Omitted)
Securities Lending: Certain Funds (Large Cap Growth, Active Bond,
International Equity Index, Small Cap Growth, Mid Cap Growth, Large Cap Value,
Mid Cap Value, Small/Mid Cap Growth, Growth & Income, Managed, Short-Term Bond,
International Opportunities and Global Bond Funds) have entered into an
agreement with SSBT to lend their securities to certain qualified brokers who
pay these Funds negotiated lender fees. These loans are collateralized at all
times with cash or securities with a market value at least equal to the market
value of the securities on loan. As with other extensions of credit, these Funds
may bear the risk of delay of the loaned securities in recovery or even loss of
rights in the collateral should the borrower of the securities fail financially.
At December 31, 2000, the market value of the securities loaned and the market
value of the collateral were as follows:
Fund Value of Securities Loaned Value of Collateral
---- -------------------------- -------------------
Large Cap Growth $ 80,209 $ 84,124
Active Bond 99,103 112,135
International Equity Index 29,739 31,240
Small Cap Growth 52,037 55,446
Mid Cap Growth 52,885 54,779
Large Cap Value 8,059 8,453
Small/Mid Cap Growth 32,919 34,457
Growth & Income 92,325 97,450
Managed 177,099 184,244
Short-Term Bond 13,542 13,740
International Opportunities 9,494 9,839
Global Bond 7,083 7,131
Repurchase Agreements: The Funds may enter into repurchase agreements which
are contracts under which a Fund would acquire a security for a relatively short
period (usually not more than 7 days) subject to the obligation of the seller to
repurchase and the Fund to resell such security at a fixed time and price
(representing the Fund's cost plus interest). A Fund will enter into repurchase
agreements only with member banks of the Federal Reserve System and with
"primary dealers" in United States government securities. The underlying
securities, which represent the collateral of the agreement, must be marked to
market daily to ensure that each repurchase agreement is fully collateralized at
all times. A Fund will not invest more than 10% of its net assets in repurchase
agreements maturing in more than 7 days.
Joint Repurchase Agreements: The Active Bond and Small Cap Growth Funds,
along with other registered investment companies having a management contract
with John Hancock Advisers, Inc. (the "Sub-Adviser"), an indirect wholly-owned
subsidiary of John Hancock, may participate in a joint repurchase agreement
pursuant to an exemptive order issued by the Securities and Exchange Commission.
Aggregate cash balances are invested in one or more repurchase agreements,
whose underlying securities are obligations of the U.S. Government and/or its
agencies. The Trust's custodian bank receives delivery of the underlying
securities for the joint repurchase agreement on the Trust's behalf. The
Sub-Adviser is responsible for ensuring that the agreement is fully
collateralized at all times. The International Equity, Large Cap Value CORE and
Small/Mid Cap CORE Funds of the Trust, along with other registered investment
companies having a management contract with Goldman Sachs Asset Management (the
"Sub-Adviser"), may participate in a joint repurchase agreement pursuant to an
exemptive order issued by the Securities and Exchange Commission. Aggregate cash
balances are invested in one or more repurchase agreements, whose underlying
securities are obligations of the U.S. Government and/or its agencies. The
Trust's custodian bank receives delivery of the underlying securities for the
joint repurchase agreement on the Funds' behalf. The Sub-Adviser is responsible
for ensuring that the agreement is fully collateralized at all times.
177
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
(000's Omitted)
Joint Trading Account: Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the order permits the existing Funds of the
Trust to pool daily uninvested cash balances, together with the balances of any
future Funds of the Trust, into a joint account for the purpose of investing the
cash balances in short-term repurchase agreements, commercial paper and other
short-term investments which in no event will have a maturity in excess of seven
days. Joint Account holdings as of December 31, 2000:
Name of Issuer Par Value Market Value
-------------- --------- ------------
Alpine Securitization Corp. 6.67% due 01/02/01 $ 40,000 $ 40,000
Cargill Global FDG 6.61% due 01/04/01 49,232 49,214
Chase Manhattan Bank 6.53% due 01/02/01 47,000 47,000
Clipper Receivables Corp. 6.65% due 01/02/01 15,000 15,000
Eagle Funding Capital Corp. 6.75% due 01/04/01 40,000 39,985
Exxon Mobil 6.55% due 01/03/01 12,700 12,698
Falcon Asset Securitization 6.70% due 01/02/01 6,009 6,009
Ford Credit Europe PLC 6.55% due 01/02/01 50,000 50,000
General Electric Credit Capital 6.57.% due 01/02/01 50,000 50,000
Greenwich FDG Corp. 6.68% 01/04/01 10,000 9,996
Lexington Parker Capital Corp. 6.50% due 01/02/01 9,100 9,100
National Australia FDG 6.62% due 01/03/01 50,000 49,991
Nestle Capital Corp. 6.40% due 01/02/01 4,462 4,462
Philip Morris Cos., Inc. 6.50% due 01/02/01 23,200 23,200
Philip Morris Capital Corp. 6.56% due 01/03/01 24,542 24,538
Philip Morris Capital Corp. 6.57% due 01/05/01 1,730 1,729
Sony Capital Corp. 6.63% due 01/02/01 8,181 8,181
Sony Capital Corp. 6.60% due 01/03/01 25,000 24,995
Toyota Motor Credit Co. 6.54% due 01/02/01 7,453 7,453
-------- --------
Joint Trading Account Totals $473,609 $473,551
======== ========
Financial Futures Contracts: The Large Cap Growth, Active Bond, Emerging
Markets Equity, International Equity Index, International Equity, Small Cap
Growth, Global Balanced, Mid Cap Growth, Large Cap Value CORE, Small/Mid Cap
Growth, Small/Mid Cap CORE, Real Estate Equity, Growth & Income, Managed,
Short-Term Bond, Equity Index, High Yield Bond and Global Bond Funds may buy and
sell financial futures contracts to hedge against the effects of fluctuations in
interest rates and other market conditions. At the time the Fund enters into a
financial futures contract, it will be required to deposit with its custodian a
specified amount of cash or U.S. government securities, known as "initial
margin". Each day, the futures contract is valued at the official settlement
price of the board of trade or U.S. commodities exchange. Daily variation
margin adjustments, arising from this "mark to market", are recorded by the
Funds as unrealized gains or losses.
178
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
(000's Omitted)
When the contracts are closed, the Fund recognizes a gain or a loss. Risk
of entering into futures contracts include the possibility that there may be an
illiquid market and/or that a change in the value of the contract may not
correlate with changes in the value of the underlying securities. In addition,
the Fund could be prevented from opening or realizing the benefits of closing
out futures positions because of position limits or limits on daily price
fluctuations imposed by an exchange. At December 31, 2000, open positions in
financial futures contracts were as follows:
International Equity Index Face Amount Unrealized
Purchased Expiration Date at Value Gain (Loss)
--------- --------------- -------- -----------
18 contracts CAC-40 10 Euro Index Futures March 2001 $ 1,014 $ 22
6 contracts DAX Index Futures March 2001 916 (42)
13 contracts FTSE 100 Index Futures March 2001 1,205 (36)
20 contracts Nikkei 225 Index Futures March 2001 1,373 (114)
------- ------
$ 4,508 $ (170)
======= ======
International Equity
Purchased
---------
9 contracts DJ Euro STOXX 50 Index Futures March 2001 $ 407 $ (19)
2 contracts FTSE 100 Index Futures March 2001 185 (4)
------- ------
$ 592 $ (23)
======= ======
Small Mid/Cap CORE
Purchased
---------
3 contracts Russell 2000 Index Futures March 2001 $ 733 $ 32
======= ======
Managed Fund
Purchased
---------
219 contracts Germany 10 Year Treasury Bonds March 2001 $22,302 $ 400
Futures
13 contracts Japan 10 Year Treasury Bonds Futures March 2001 15,340 (9)
17 contracts United Kingdom Treasury Bonds Futures March 2001 2,935 4
430 contracts U.S. 10 Year Treasury Note Futures March 2001 45,090 1,250
------- ------
$85,667 $1,645
======= ======
Equity Index
Purchased
---------
53 contracts S&P 500 Index Futures March 2001 $17,689 $ (573)
======= ======
At December 31, 2000, the International Equity and Small/Mid Cap CORE Funds
had deposited $89 and $120, respectively, in segregated accounts to cover margin
requirements on open financial futures contracts.
Forward Foreign Currency Contracts: The Funds may use forward foreign
currency contracts to facilitate transactions in foreign securities and to
manage Funds' currency exposure. Contracts to buy generally are used to acquire
exposure to foreign currencies, while contracts to sell are used to hedge the
Funds' investments against currency fluctuations. Neither type of foreign
currency transaction will eliminate fluctuations in the prices of the Funds'
securities or prevent loss if the price of such securities should decline. The
U.S. dollar value of a forward foreign currency contract is determined using
forward exchange rates supplied by a quotation service. Realized gain (loss) on
the purchases and sales of forward foreign currency contracts is recognized on
settlement date.
179
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
(000's Omitted)
Currency Translation: For Funds that trade in international securities: all
assets or liabilities initially expressed in terms of foreign currencies are
translated into U.S. dollars based on London currency exchange quotations as of
5:00 p.m., London time, on the date of any determination of the net asset value
of the Funds. Unrealized exchange adjustments are included in unrealized
appreciation (depreciation) of investments. Transactions affecting statement of
operations accounts and net realized gain (loss) on investments are translated
at the rates prevailing at the dates of transactions.
Reported net realized gains and losses on foreign currency transactions
represent net gains and losses from sales and maturities of forward foreign
currency contracts, disposition of foreign currencies, currency gains and losses
realized between trade and settlement dates of security transactions, and the
difference between the amounts of net investment income accrued and the U.S.
dollar amount actually received.
Dividends: A dividend of its net investment income is declared and
distributed daily by the Money Market Fund. Dividends of net investment income
are declared and distributed monthly by all other Funds. Each Fund distributes
all of its net realized capital gains annually, at the end of its fiscal year.
Federal Income Taxes: Each of the Funds of the Trust intends to comply with
the requirements of Subchapter M of the Internal Revenue Code applicable to
regulated investment companies and to distribute substantially all of its
taxable income to shareholders. Therefore, no federal income tax provision is
required.
As of December 31, 2000, the Trust had approximate net tax basis capital
loss carryforwards, which may be applied against any net taxable gains, as
follows: Small Cap Growth had $8,256, which expires in 2008; Money Market had
$14 and $78, which expire in 2007 and 2008, respectively; Bond Index had $158
and $557, which expire in 2007 and 2008, respectively; Short-Term Bond had $131,
$1,304 and $679, which expire in 2006, 2007 and 2008, respectively; High Yield
Bond had $276 and $513, which expire in 2007 and 2008, respectively; and Global
Bond had $1,204 and $1,947, which expire in 2007 and 2008, respectively.
NOTE C -- INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
Expenses: Expenses directly attributable to a Fund are charged to that Fund.
Expenses not directly attributed to a Fund are allocated on the basis of
relative net assets.
On February 16, 2000, September 28, 2000 and October 20, 2000, the Board of
Trustees of the Trust renewed its Investment Advisory Agreement with John
Hancock. For its services, John Hancock receives monthly compensation at the
following rates:
For the Large Cap Growth Fund, 0.40% on an annual basis of the first
$500,000 of the net assets of the Fund; 0.35% for net assets between
$500,000 and $1,000,000; and 0.30% for net assets in excess of $1,000,000;
For the Fundamental Growth Fund, 0.90% on an annual basis of the first
$250,000 of the Fund's net assets; and 0.85% for net assets in excess of
$250,000;
For the Aggressive Balanced Fund, 0.675% on an annual basis of the
first $250,000 of the Fund's net assets; 0.625% for net assets between
$250,000 and $500,000; and 0.60% for net assets in excess of $500,000;
For the Active Bond Fund, 0.70% on an annual basis of the first
$100,000 of the net assets of the Fund; 0.65% for net assets between
$100,000 and $250,000; 0.61% for net assets between $250,000 and $500,000;
0.58% for net assets between $500,000 and $1,000,000; and 0.55% for net
assets in excess of $1,000,000;
For the CORE Bond Fund, 0.70% on an annual basis of the first $25,000
of the Fund's net assets; 0.65% for net assets between $25,000 and $50,000;
0.60% for net assets between $50,000 and $150,000; and 0.55% for the net
assets in excess of $150,000;
For the Emerging Markets Equity Fund, 1.30% on an annual basis of the
first $10,000 of the Fund's net assets; 1.20% for net assets between
$10,000 and $150,000; and 1.10% for net assets in excess of $150,000;
180
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
(000's Omitted)
For the International Equity Index Fund, 0.18% on an annual basis of the
first $100,000 of the Fund's net assets; 0.15% for net assets between $100,000
and $200,000; and 0.11% for net assets in excess of $200,000;
For the International Equity Fund, 1.00% on an annual basis of the first
$50,000 of the Fund's net assets; 0.95% for net assets between $50,000 and
$200,000; and 0.90% for net assets in excess of $200,000;
For the Small Cap Growth Fund, 0.75% on an annual basis of its net
assets;
For the Global Balanced Fund, 1.05% on an annual basis of the first
$150,000 of the Fund's net assets; 0.95% for net assets between $150,000 and
$300,000; 0.80% for net assets between $300,000 and $ 500,000; and 0.75% for net
assets in excess of $500,000;
For the Mid Cap Growth Fund, 0.85% on an annual basis of the first
$100,000 of the Fund's net assets; and 0.80% on an annual basis for net assets
in excess of $100,000;
For the Mid Cap Blend Fund, 0.75% on an annual basis of the first
$250,000 of the net assets of each Fund; 0.70% for net assets between $250,000
and $500,000; and 0.65% for net assets in excess of $500,000;
For the Large Cap Value Fund, 0.75% on an annual basis of the first
$100,000 of the Fund's net assets; 0.70% for net assets between $100,000 and
$250,000; and 0.65% for net assets in excess of $250,000;
For the Large Cap Value CORE Fund, 0.75% on an annual basis for the first
$50,000 of the Fund's net assets; 0.65% for net assets between $50,000 and
$200,000; and 0.60% in excess of $200,000;
For the American Leaders Large Cap Value Fund, 0.80% on an annual basis
of the first $50,000 of the net assets of the Fund; 0.65% for net assets between
$50,000 and $250,000; 0.60% for net assets between $250,000 and $500,000; and
0.55% for net assets in excess of $500,000;
For the Large/Mid Cap Value Fund, 0.95% on an annual basis for the first
$25,000 of the Fund's net assets; 0.85% for net assets between $25,000 and
$50,000; 0.75% for net assets between $50,000 and $ 100,000; and 0.65% for net
assets in excess of $100,000;
For the Money Market Funds, 0.25% on an annual basis of the net assets of
the Fund;
For the Mid Cap Value Fund, 0.80% on an annual basis of the first
$100,000 of the Fund's net assets; 0.775% for net assets between $100,000 and
$250,000; and 0.75% for net assets between $250,000 and $500,000; 0.725% for
net assets between $500,000 and $750,000; and 0.70% for all its net assets once
its net assets exceed $750,000;
For the Small/Mid Cap Growth Fund, 0.75% on an annual basis of the first
$250,000 of the net assets of each Fund; 0.70% for net assets between $250,000
and $500,000; and 0.65% for net assets in excess of $500,000;
For the Bond Index Fund, 0.15% on an annual basis of the first $100,000
of the Fund's net assets; 0.13% for net assets between $100,000 and $250,000;
and 0.11% for net assets in excess of $250,000;
For the Large Cap Aggressive Growth Fund, 1.00% on an annual basis for
the first $10,000 of the Fund's net assets; 0.875% for net assets between
$10,000 and $20,000; 0.75% for net assets in excess of $20,000;
For the Small/Mid Cap CORE Fund, 0.80% on an annual basis of the first
$50,000 of the Fund's net assets; and 0.70% for net assets in excess of $50,000;
For the Small/Mid Cap Value Fund, 0.95% on an annual basis for the first
$100,000 of the Fund's net assets; 0.90% for net assets between $100,000 and
$250,000; 0.85% for net assets in excess of $250,000.
For the Real Estate Equity Fund, 1.10% on an annual basis of the first
$50,000 of the Fund's net assets, 1.00% for net assets between $50,000 and
$100,000; 0.90% for net assets between $100,000 and $200,000 and 0.80% for net
assets in excess of $200,000;
For the Growth & Income Fund, 0.71% on an annual basis of the first
$150,000 of the net assets of the Fund; 0.69% for net assets between $150,000
and $300,000; and 0.67% for net assets in excess of $300,000;
For the Managed Fund, 0.74% on an annual basis of the first $500,000 of
the net assets of the Fund; 0.68% for net assets between $500,000 and
$1,000,000; and 0.65% for net assets in excess of $1,000,000;
For the Short-Term Bond Fund, 0.30% on an annual basis of its net assets;
181
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
(000's Omitted)
For the Small Cap Equity Fund, 0.90% on an annual basis of the first
$150,000 of the Fund's net assets; 0.75% for net assets between $150,000
and $300,000; 0.65% for net assets between $300,000 and $500,000, and 0.60%
for net assets in excess of $500,000;
For the International Opportunities Fund, 1.00% on an annual basis of
the first $20,000 of the Fund's net assets; 0.85% for net assets between
$20,000 and $50,000; and 0.75% for net assets in excess of $50,000;
For the Equity Index Fund, 0.15% on an annual basis of the first
$75,000 of the Fund's net assets; 0.14% for net assets between $75,000 and
$125,000; and 0.13% for the net assets in excess of $125,000;
For the High Yield Bond Fund, 0.65% on an annual basis of the first
$100,000 of the Fund's net assets; 0.60% for net assets between $100,000
and $200,000; and 0.50% for net assets in excess of $200,000;
For the Global Bond Fund, 0.85% on an annual basis of the first
$150,000 of the Fund's net assets; 0.80% for net assets between $150,000
and $300,000; 0.75% for net assets between $300,000 and 500,000; and 0.70%
for the net assets in excess of $500,000.
During the year ended December 31, 2000, the Investment Adviser voluntarily
contributed approximately $284 to the Money Market Fund. John Hancock received
no shares of beneficial interest or other consideration in exchange for the
contribution, which increased the Funds' net asset values. During the year ended
December 31, 1999, the Investment Adviser voluntarily contributed approximately
$445 to the Emerging Markets Equity Fund. John Hancock received no shares of
beneficial interest or other consideration in exchange for the contribution,
which increased the Funds' net asset values.
John Hancock has entered into Sub-Advisory Agreements with Independence
Investment Associates, Inc., with respect to the Large Cap Growth, Aggressive
Balanced, Mid Cap Blend, Real Estate Equity, Growth & Income, Managed and
Short-Term Bond Funds; with John Hancock Advisers, Inc., with respect to the
Active Bond and Small Cap Growth Funds; with Independence International
Associates, Inc., with respect to the International Equity Index Fund, each of
whom is an affiliate of John Hancock, and, under the supervision of John
Hancock, is responsible for the day-to-day investment management of each of the
Funds. John Hancock maintains responsibility for the day-to-day management of
the Money Market Fund. John Hancock has also entered into the Sub-Advisory
Agreements with the following Sub-Advisers, each of whom under the supervision
of John Hancock, is responsible for the day-to-day investment management of
each of the Funds:
Fund Sub-Adviser
---- -----------
Fundamental Growth Putnam Investment Management, Inc.
Emerging Markets Equity Morgan Stanley Investment Management, Inc.
International Equity Goldman Sachs Asset Management
Global Balanced Capital Guardian Trust Company
Mid Cap Growth Janus Capital Corporation
Large Cap Value T. Rowe Price Associates, Inc.
Large Cap Value CORE Goldman Sachs Asset Management
Large/Mid Cap Value Wellington Management Company, LLP
Mid Cap Value Neuberger Berman, LLC
Small/Mid Cap Growth Wellington Management Company, LLP
Bond Index Mellon Bond Associates, LLP
Large Cap Aggressive Growth Alliance Capital Management, LLP
Small/Mid Cap CORE Goldman Sachs Asset Management
182
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
(000's Omitted)
Fund Sub-Adviser
---- -----------
Small/Mid Cap Value The Boston Company Asset Management, LLC
Real Estate Equity Morgan Stanley Investment Management, Inc.
Growth & Income Putnam Investment Management, Inc.
Managed Capital Guardian Trust Company
Small Cap Equity Capital Guardian Trust Company
International Opportunities T. Rowe Price International, Inc.
Equity Index State Street Global Bank & Trust N.A.
High Yield Bond Wellington Management Company, LLP
Global Bond Capital Guardian Trust Company
In the event that normal operating expenses of each Fund, exclusive of
investment advisory fees, taxes, interest, brokerage commissions and
extraordinary expenses, shall exceed 0.10% of each Fund's daily net asset value,
John Hancock and JHVLICO will reimburse each Fund for such excess. Accordingly,
for the year ended December 31, 2000, the reimbursements paid from John
Hancock and JHVLICO were $10 to Fundamental Growth, $18 to Aggressive Balanced,
$202 to Active Bond, $500 to Emerging Markets Equity, $196 to International
Equity Index, $92 to International Equity, $86 to Global Balanced, $21 to Mid
Cap Blend, $27 to Large Cap Value CORE, $29 to Large/Mid Cap Value, $11 to Bond
Index, $11 to Large Cap Aggressive Growth, $54 to Small/Mid Cap CORE, $32
Small/Mid Cap Value, $23 to Small Cap Equity, $154 to International
Opportunities, $30 to High Yield Bond and $64 to Global Bond.
Signator Investors, Inc., a wholly owned subsidiary of John Hancock is the
principal underwriter and transfer agent of the Trust. Certain officers and
trustees of the Trust are officers and directors of JHVLICO, JHVLAU, JHVLAV,
JHVLAS, JHVAAI, JHVLAUV, JHVAAV, JHVAAU, JHVAAH, JHVAAJF, IPL and PPM-1, and
some are also officers of John Hancock. Fees for independent trustees are paid
by the Trust.
183
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
(000's Omitted)
NOTE D -- INVESTMENT TRANSACTIONS
Purchases and proceeds from sales and maturities of investments, excluding
short-term securities and obligations of the U.S. government, for each Fund for
the year ended December 31, 2000 were as follows:
Fund Purchases Sales and Maturities
---- --------- --------------------
Large Cap Growth $ 1,250,545 $ 1,228,862
Fundamental Growth 107,451 66,744
Aggressive Balanced 31,654 23,208
Active Bond 1,265,780 1,276,929
CORE Bond 11,443 6,405
Emerging Markets Equity 60,393 41,178
International Equity Index 31,951 34,493
International Equity 14,742 9,759
Small Cap Growth 374,852 247,034
Global Balanced 48,726 50,546
Mid Cap Growth 856,814 697,807
Mid Cap Blend 29,115 15,454
Large Cap Value 94,362 68,034
Large Cap Value CORE 15,762 6,074
American Leaders Large Cap Value 6,170 743
Large/Mid Cap Value 15,713 7,948
Mid Cap Value 245,227 239,321
Small/Mid Cap Growth 182,973 192,814
Bond Index 15,735 1,943
Large Cap Aggressive Growth 34,162 17,320
Small/Mid Cap CORE 26,850 14,704
Small/Mid Cap Value 48,496 29,457
Real Estate Equity 34,480 34,557
Growth & Income 3,521,406 3,934,343
Managed 5,113,157 5,689,315
Short-Term Bond 31,265 28,003
Small Cap Equity 144,792 135,804
International Opportunities 95,161 35,668
Equity Index 278,231 171,884
High Yield Bond 15,419 4,992
Global Bond 128,638 125,815
184
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
(000's Omitted)
The identified cost of investments owned by each Fund (including earned
discount on corporate short-term notes, and commercial paper) and their
respective gross unrealized appreciation and depreciation at December 31, 2000,
for federal income tax purposes were as follows:
Net Unrealized
Identified Unrealized Unrealized Appreciation
Fund Cost Appreciation Depreciation (Depreciation)
---- ---- ------------ ------------ --------------
Large Cap Growth $ 1,130,115 $ 157,238 $ (145,172) $ 12,066
Fundamental Growth 50,109 1,657 (8,211) (6,554)
Aggressive Balanced 20,345 1,593 (1,428) 165
Active Bond 769,274 18,809 (7,244) 11,565
CORE Bond 5,100 175 (9) 166
Emerging Markets Equity 42,106 722 (14,268) (13,546)
International Equity Index 184,080 29,734 (25,365) 4,369
International Equity 15,419 958 (1,670) (712)
Small Cap Growth 238,639 38,819 (48,754) (9,935)
Global Balanced 28,039 1,513 (2,156) (643)
Mid Cap Growth 427,933 47,294 (108,275) (60,981)
Mid Cap Blend 19,467 2,758 (1,498) 1,260
Large Cap Value 179,578 27,985 (12,161) 15,824
Large Cap Value CORE 15,514 2,032 (1,340) 692
American Leaders Large Cap Value 5,413 846 (503) 343
Large/Mid Cap Value 13,633 2,009 (576) 1,433
Mid Cap Value 104,638 19,231 (1,381) 17,850
Small/Mid Cap Growth 177,500 27,661 (25,001) 2,660
Bond Index 61,783 1,543 (853) 690
Large Cap Aggressive Growth 28,843 1,995 (5,233) (3,238)
Small/Mid Cap CORE 20,297 3,308 (3,047) 261
Small/Mid Cap Value 28,304 2,543 (2,901) (358)
Real Estate Equity 131,915 23,510 (1,560) 21,950
Growth & Income 3,120,255 520,107 (379,489) 140,618
Managed 2,736,969 354,480 (169,015) 185,465
Short-Term Bond 77,269 907 (599) 308
Small Cap Equity 81,274 4,897 (18,712) (13,815)
International Opportunities 119,850 9,362 (13,862) (4,500)
Equity Index 492,664 77,606 (63,687) 13,919
High Yield Bond 29,400 435 (5,829) (5,394)
Global Bond 62,666 3,610 (869) 2,741
During the year ended December 31, 2000, reclassifications have been made
in each Fund's capital accounts to report these balances on a tax basis,
excluding certain temporary differences, as of December 31, 2000. These
permanent reclassifications are primarily attributable to differences in the
treatment of foreign currency gains and losses, net operating losses and
return of capital under federal tax rules versus generally accepted accounting
principles. Net assets were not affected by these reclassifications.
185
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
(000's Omitted)
NOTE E - FORWARD FOREIGN CURRENCY CONTRACTS
As of December 31, 2000 the International Equity Index, Managed and Global
Bond Funds had open forward foreign currency contracts which contractually
obligate the Funds to deliver or receive currencies at a specified date, as
follows:
Net Unrealized
Appreciation
International Equity Index Maturity Date Cost Value (Depreciation)
-------------------------- ------------- ---- ----- --------------
Currency Sold
-------------
Japanese Yen 29,900 03/08/01 $ 270 $ 264 $ 5
Euro 99 03/16/01 92 93 (1)
Pound Sterling 40 03/16/01 58 59 (1)
-------
$ 3
=======
Currency Purchased
------------------
Japanese Yen 113,800 03/01/01 $ 1,040 $ 1,005 $ (35)
Japanese Yen 74,870 03/08/01 684 662 (22)
Euro 1,028 03/16/01 909 968 59
Pound Sterling 836 03/16/01 1,209 1,252 43
Euro 1,037 03/30/01 963 978 15
-------
$ 60
=======
Managed
Currency Sold
-------------
Australian Dollar 2,961 02/05/01 $ 1,558 $ 1,648 $ (90)
Canadian Dollar 12,987 02/05/01 8,474 8,663 (189)
Euro 110,744 02/05/01 96,464 104,171 (7,707)
Euro 16,006 02/06/01 14,118 15,056 (938)
Greek Drachma 932,723 02/05/01 2,385 2,575 (190)
Japanese Yen 8,635,727 02/05/01 78,722 76,007 2,715
Japanese Yen 46,663 02/07/01 426 411 15
Pound Sterling 10,950 02/05/01 15,559 16,386 (827)
Pound Sterling 1,950 02/06/01 2,801 2,918 (117)
Pound Sterling 3,920 02/07/01 5,602 5,866 (264)
Danish Krone 27,752 02/05/01 3,238 3,499 (261)
Swedish Krona 28,605 02/05/01 2,862 3,038 (176)
Swiss Franc 24,285 02/06/01 14,232 15,034 (802)
-------
$(8,831)
=======
186
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
(000's Omitted)
Managed - continued
Net Unrealized
Appreciation
Currency Purchased Maturity Date Cost Value (Depreciation)
------------------ ------------- ---- ----- --------------
Australian Dollar 189 02/05/01 $ 103 $ 105 $ 2
Danish Krone 1,862 02/05/01 223 235 12
Pound Sterling 352 02/05/01 510 527 17
Pound Sterling 5,709 02/06/01 8,311 8,543 232
Pound Sterling 7,764 02/07/01 11,203 11,618 415
Euro 23,428 02/06/01 20,892 22,039 1,147
Swiss Franc 59,526 02/06/01 34,896 36,851 1,955
-------
$ 3,780
=======
Global Bond
Currency Sold
-------------
Euro 2,000 02/12/01 $ 1,718 $ 1,882 $ (164)
Euro 2,645 04/24/01 2,225 2,495 (270)
-------
$ (434)
=======
Currency Purchased
------------------
Euro 2,000 02/12/01 $ 1,766 $ 1,882 $ 116
Japanese Yen 239,062 04/24/01 2,225 2,130 (95)
-------
$ 21
=======
NOTE F-COMBINATION
On December 22, 2000, the shareholders of John Hancock International
Opportunities II Fund ("International Opportunities II") approved the
combination between International Opportunities II and International
Opportunities, Funds, providing for the transfer of substantially all of the
assets and liabilities of the International Opportunities II Fund to the
International Opportunities Fund in exchange solely for the trust shares of the
International Opportunities Fund. The acquisition was accounted for as a
tax-free exchange of 1,947 trust shares of the International Opportunities Fund
for the net assets of International Opportunities II Fund, which amounted to
$22,528, including $(2,878) of unrealized depreciation, after the close of
business on December 29, 2000. The net assets of the International Opportunities
Fund prior to the combination on December 29, 2000, were $94,169, and the
aggregate net assets of the International Opportunities Fund after the
combination amounted to $116,697.
NOTE G - CHANGE IN ACCOUNTING PRINCIPLE
The Funds will adopt the provisions of the AICPA Audit and Accounting Guide
for Investment Companies, as revised, effective for fiscal years beginning after
December 15, 2000. As required, the Funds will begin amortizing premiums on
debt securities effective January 1, 2001. Prior to this date, the Funds did not
amortize premiums on debt securities. The cumulative effect of this accounting
change will have no impact on the total net assets of the Funds. The impact of
this accounting change has not been determined but will result in a
reclassification between the cost of securities and a corresponding
reclassification in net unrealized appreciation/depreciation, based on
securities held as of December 31, 2000.
187
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
(000's Omitted)
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
To the Contractowners, Policyholders,
and Board of Trustees of
John Hancock Variable Series Trust I
We have audited the accompanying statement of assets and liabilities,
including the schedules of investments, of John Hancock Variable Series Trust I
(the Trust) (comprising, respectively, the Large Cap Growth, Active Bond (for-
merly, Sovereign Bond), Emerging Markets Equity, International Equity Index,
Small Cap Growth, Global Balanced (formerly, International Balanced), Mid Cap
Growth, Large Cap Value, Money Market, Mid Cap Value, Small/Mid Cap Growth, Bond
Index, Small/Mid Cap Core, Real Estate Equity, Growth & Income, Managed,
Short-Term Bond, Small Cap (formerly, Small Cap Value), International
Opportunities, Equity Index, High Yield Bond, Global Bond, Large Cap Aggressive
Growth, Small/Mid Cap Value, Large Cap Value CORE, International Equity, Mid Cap
Blend, Aggressive Balanced, Fundamental Growth (formerly, Fundamental Mid Cap
growth), Large/Mid Cap Value, Core Bond and American Leaders Large Cap Value
Funds) as of December 31, 2000, and the related statements of operations for the
period then ended, and the statement of changes in net assets and financial
highlights for each of the periods indicated therein. These financial statements
and financial highlights are the responsibility of the Trust's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial state-
ments and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
securities owned as of December 31, 2000, by correspondence with the custodian
or brokers, or by other appropriate auditing procedures where replies from
brokers were not received. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of each of the respective portfolios constituting John Hancock Variable
Series Trust I at December 31, 2000, the results of their operations for the
period then ended, and the changes in their net assets and the financial
highlights for each of the periods indicated, in conformity with accounting
principles generally accepted in the United States.
/s/ Ernst & Young LLP
Boston, Massachusetts
February 13, 2001
188
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
(000's Omitted)
OTHER MATTERS (UNAUDITED)
Section 30 and Rule 30d-1(b) under the Investment Company Act of 1940, as
amended, requires registered management investment companies to furnish
information relating to any matter submitted during the reporting period to a
vote of Shareholders of the Trust. John Hancock Variable Series Trust I
solicited a vote at special meetings of Contract owners/Policyholders held on
September 28, October 20, and December 22, 2000 on the following matters:
For the Large Cap Growth Fund 9/28/00: For Against Abstain
--- ------- -------
6. To change the Fund's classification from "diversified" to "non-diversified". 77% 13% 10%
8. To modify the fundamental restrictions applicable to the Fund to permit it 77% 14% 9%
to invest in securities that are subject to legal restrictions on resale.
10. To modify the fundamental restrictions applicable to the Fund to permit it 77% 14% 9%
to invest in financial futures.
For the Fundamental Growth Fund 9/28/00:
4A. To approve a new Sub-Investment Management Agreement among the 87% 8% 5%
Trust, John Hancock, and Putnam Investment Management, Inc.
4B. To approve an amendment to the March 14, 1996 Investment Management 76% 19% 5%
Agreement between the Trust and John Hancock, reflecting an increase in
the Investment Advisory fee.
For the Real Estate Equity Fund 9/28/00:
1A. To approve a new Sub-Investment Management Agreement among the 86% 6% 8%
Trust, John Hancock, and Morgan Stanley Investment Management, Inc.
1B. To approve a new Sub-Investment Management Agreement among the 85% 7% 8%
Trust, John Hancock, and Independence Investment Associates, Inc.
1C. To approve an amendment to the April 12, 1988 Investment Management 79% 13% 8%
Agreement between the Trust and John Hancock, reflecting an increase in
the Investment Advisory fee.
7. To change the Fund's classification from "diversified" to "non-diversified". 84% 8% 8%
9. To modify the fundamental restrictions applicable to the Fund to permit it 83% 9% 8%
to invest in securities that are subject to legal restrictions on resale.
11. To modify the fundamental restrictions applicable to the Fund to permit it 84% 8% 8%
to invest in financial futures.
For the International Opportunities Fund 9/28/00:
2. To approve a new Sub-Investment Management Agreement among the 94% 2% 4%
Trust, John Hancock, and T. Rowe Price International, Inc.
189
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
(000's Omitted)
For the International Opportunities II Fund 9/28/00: For Against Abstain
--- ------- -------
3A. To approve an interim Sub-Investment Management Agreement among the 81% 9% 10%
Trust, John Hancock, and Rowe Price-Fleming International, Inc.
3B. To approve a new Sub-Investment Management Agreement among the 75% 14% 11%
Trust, John Hancock, and T. Rowe Price International, Inc., reflecting an
increase in the Sub-Investment Advisory fee.
3C. To approve an amendment to the April 14, 1998 Investment Management 75% 15% 10%
Agreement between the Trust and John Hancock, reflecting an increase in
the Investment Advisory fee.
For the Active Bond Fund 10/20/00:
3A. To approve an amendment to the May 1, 1995 Sub-Investment Manage- 72% 20% 8%
ment Agreement among the Trust, John Hancock and John Hancock Advis-
ers, Inc., reflecting an increase in Sub-Investment Advisory fee.
3B. To approve an amendment to the April 12, 1988 Investment Management 72% 20% 8%
Agreement between the Trust and John Hancock, reflecting an increase in
the Investment Advisory fee.
For the Global Balanced Fund 10/20/00:
4A. To approve a new Sub-Investment Management Agreement among the 88% 6% 6%
Trust, John Hancock, and Capital Guardian Trust Company.
4B. To approve an amendment to the March 14, 1996 Investment Management 74% 20% 6%
Agreement between the Trust and John Hancock, reflecting and increase in
the Investment Advisory fee.
For Growth & Income Fund 10/20/00:
2A. To approve a new Sub-Investment Management Agreement among the 83% 10% 7%
Trust, John Hancock, and Putnam Investment Management, Inc.
B. To approve a new Sub-Investment Management Agreement among the 82% 11% 7%
Trust, John Hancock, and Independence Investment Associates, Inc.
C. To approve an amendment to the April 12, 1988 Investment Management 75% 18% 7%
Agreement between the Trust and John Hancock, reflecting an increase in
the Investment Advisory fee.
2D. To change the Fund's classification from "diversified" to "non-diversified." 79% 13% 8%
2E. To modify the fundamental restrictions applicable to the Fund to permit it 79% 14% 7%
to invest in securities that are subject to legal restrictions on resale.
2F. To modify the fundamental restrictions applicable to the Fund to permit it 80% 13% 7%
to invest in financial futures.
190
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2000
--------------------------------------------------------------------------------
(000's Omitted)
For Against Abstain
--- ------- -------
For the Managed Fund 10/20/00:
1A. To approve a new Sub-investment Management Agreement among the 84% 9% 7%
Trust, John Hancock, and Capital Guardian Trust Company.
B. To approve a new Sub-Investment Management Agreement among the 84% 9% 7%
Trust, John Hancock, and Independence Investment Associates, Inc.
C. To approve an amendment to the April 12, 1988 Investment Management 76% 16% 8%
Agreement between the Trust and John Hancock, reflecting an increase in
the Investment Advisory fee.
1D. To change the Fund's classification from "diversified" to 80% 11% 9%
"non-diversified".
For the Small Cap Equity Fund 10/20/00:
4A. To approve a new Sub-Investment Management Agreement among the 82% 12% 6%
Trust, John Hancock, and Capital Guardian Trust Company.
4B. To approve an amendment to the March 14, 1996 Investment Management 68% 27% 5%
Agreement between the Trust and John Hancock, reflecting an increase in
the Investment Advisory fee.
For the Global Bond Fund 10/20/00:
4A. To approve a new Sub-Investment Management Agreement among the 86% 8% 6%
Trust, John Hancock, and Capital Guardian Trust Company.
4B. To approve an amendment to the March 14, 1996 Investment Management 79% 15% 6%
Agreement between the Trust and John Hancock, reflecting an increase in
the Investment Advisory fee.
International Opportunities Fund II 12/22/00:
To approve combining the International Opportunities Fund II with the Interna- 93% 1% 6%
tional Opportunities Fund.
191
OFFICERS AND TRUSTEES
-----------------------------------------------
Michele G. Van Leer, Chairman
Thomas J. Lee, President and Vice Chairman
Karen Q. Visconti, Secretary
Arnold Bergman, Assistant Secretary
Raymond F. Skiba, Treasurer
Jude A. Curtis, Compliance Officer
Maryellen Carney, Assistant Compliance Officer
Patrick F. Smith, Controller
Paula M. Pashko, Assistant Controller
Elizabeth G. Cook
Reverend Diane C. Kessler
Hassel H. McClellan
Robert F. Verdonck
INVESTMENT ADVISER
-----------------------------
John Hancock Life Insurance
John Hancock Place
P.O. Box 111
Boston, MA 02117
INDEPENDENT AUDITORS
----------------------
Ernst & Young LLP
200 Clarendon Street
Boston, MA 02116
SUB-INVESTMENT ADVISERS
--------------------------------------------------------------------------------
Independence Investment Associates, Inc. and subsidiaries
53 State Street
Boston, MA 02109
Alliance Capital Management L.P.
1345 Avenue of the Americas
New York, NY 10105
The Boston Company Asset Management, LLC
One Boston Place
Boston, MA 02108
Capital Guardian Trust Company
333 South Hope Street
Los Angeles, CA 90071
Federated Investment Management Company
1001 Liberty Avenue, 10th Floor
Pittsburgh, PA 15222
Goldman Sachs Asset Management
32 Old Slip
New York, NY 10005
Janus
100 Fillmore Street
Denver, CO 80206-4928
Mellon Bond Associates, LLP
One Mellon Bank Center, Suite 5400
Pittsburgh, PA 15258-0001
John Hancock Advisers Inc.
101 Huntington Avenue
Boston, MA 02199
Morgan Stanley Asset Management Inc.
1221 Avenue of the Americas
New York, NY 10020
Neuberger Berman, LLC
605 Third Avenue
New York, NY 10158-3698
Putnam Investments
One Post Office Square
Boston, MA 02109
State Street Global Advisors
Two International Place
Boston, MA 02110
T. Rowe Price Associate Inc.
100 East Pratt Street
Baltimore, MD 2120
T. Rowe Price International Inc.
100 East Pratt Street
Baltimore, MD 2120
Wellington Management Company, LLP
75 State Street
Boston, MA 02109
[LOGO OF JOHN HANCOCK]
Variable Series Trust consists of funds used as investment options for various
John Hancock variable life annuity contracts. This report must be accompanied
by the required prospectus and the most current quarterly
Performance report for the contract offered. Investors are not able to invest
directly in the Variable Series Trust.
Not all of the funds described in this report are available on every
product. Please refer to the prospectus for additional information about
the investment options on your variable product.
Insurance Products are Issued by: John Hancock Life Insurance Company
John Hancock Variable Life Insurance Company* (*not licensed in New York),
Boston, MA 02117
Securities Products are Distributed by: John Hancock Funds, Inc., Member NASD
Signator Investors, Inc., Member NASD, SIPC
[LOGO OF IMSA]
ATTACHMENT 3.
[LOGO OF JOHN HANCOCK]
Semiannual Report
June 30, 2001
Investment Vision
The Variable Series Variable Series Trust
Insurance Products:
. Are NOT FDIC insured; NOT insured by the FDIC, NCUSIF, or any other federal
entity;
. Are NOT deposits or other obligations of any bank and are NOT guaranteed by
any bank; and
. Are subject to investment risk, including the possible loss of principal
investment.
[LOGO OF JOHN HANCOCK]
[LOGO OF INDEPENDENCE]
[LOGO OF ALLIANCE CAPITAL]
[LOGO OF THE BOSTON COMPANY]
[LOGO OF CAPITAL GUARDIAN TRUST COMPANY]
[LOGO OF GOLDMAN SACHS]
[LOGO OF JANUS]
[LOGO OF MELLON BOND]
[LOGO OF MORGAN STANLEY]
[LOGO OF PUTNAM INVESTMENTS]
[LOGO OF SSGA]
[LOGO OF T. ROWE PRICE]
[LOGO OF WELLINGTON MANAGEMENT]
Dear Shareholder,
Since our last report six months ago, the economic slowdown that began late last
year has continued. Economic growth remains slow, unemployment is up, and
corporations generally are reporting lower earnings. Through this period, the
Federal Reserve has steadily decreased interest rates in response, at an
unprecedented rate of change. It will take time to feel the impact of these
cuts, but consumer and investor confidence has already improved.
The securities markets have begun to show signs of improvement recently, but the
severe drop from a very buoyant economy a year ago to a very lackluster economic
climate today has taken its toll, especially in the area of corporate profits.
Profits have tended to drop sharply, leading to substantial equity losses in
many sectors amid significant volatility. For the rest of 2001, we expect the
economy to respond well to the Fed's rate actions. By the end of this year, we
anticipate that growth will be back to 3% or more. This may seem quite modest
relative to the recent past, but judged historically it is a very healthy rate.
We are hopeful that the markets, and many of the Variable Series Trust
portfolios, will respond positively in turn.
With a backdrop of bumps and bruises in the markets, and cautious optimism for
the near future, the importance of portfolio diversification once again comes to
the fore. A quick review of first-half results shows that virtually all equity
market measures were down, including blue chip companies, the high-tech sector,
and most overseas markets. The single bright spot in the equity markets was
domestic small companies, which overall showed a modest positive return. Fixed
income securities benefited from the Fed's interest rate actions, and showed
positive returns as well. As a result, while it may have been difficult to avoid
erosion in the value of your portfolio during the first half of this year,
diversification across the range of available asset classes may have eased some
of the pain. We continue to encourage you to work with an investment
professional or other resources to achieve an appropriate level of
diversification.
Finally, you may have noticed a new face on this page. After 25 years of loyal
service to John Hancock, and seven years serving the Variable Series Trust, Tom
Lee has decided to leave the company to pursue a new career in education. We are
fortunate to be able to call upon the talents of Kathleen Driscoll, who has a
rich background in marketing and distribution, as she assumes the
responsibilities of President and Vice Chairman of the Variable Series Trust.
As always, we thank you for being a John Hancock variable life and/or variable
annuity policyholder. We continue to work hard to earn your confidence and
trust.
[PHOTO OF MICHELE G. VAN LEER]
Chairman
[PHOTO OF KATHLEEN F. DRISCOLL]
President and Vice Chairman
Sincerely,
/s/ Michele G. Van Leer
Michele G. Van Leer
Chairman
/s/ Kathleen F. Driscoll
Kathleen F. Driscoll
President and Vice Chairman
Economic Overview
John Hancock Economic Research
The slowdown that hit the US economy towards the end of 2000 continued through
the first half of 2001. Real economic growth has now been around an anemic 1%
pace since last fall. At this growth rate, we experience rising unemployment,
sharp cutbacks in corporate spending, profit shortfalls and bond defaults. And
although the overall economy is still expanding, the manufacturing sector is
suffering its own recession, in particular the formerly high-flying technology
and telecommunications industries.
The Federal Reserve reacted to the slowdown with the most rapid series of
interest rate cuts in recent history, reducing the Federal Funds rate by 2.75
points between January and June. The impact of these rate cuts takes 6-12
months to filter through the economy, but they have already helped to bolster
the confidence of both consumers and investors, and kept mortgage rates low
enough to sustain the all-important housing sector.
Still a soft landing, despite some bumpy moments
A slowdown without a recession is by definition a "soft landing," and is a
testament to the judgement and luck of policy-makers. Nonetheless, the speed
of the slowdown, from over a 5% growth rate a year ago, has caused as much
pain as some past recessions. Profits dropped sharply, leading to substantial
equity losses and heightened market volatility.
The severity of the reversal for technology sectors has led some commentators
to argue that this cycle is more serious than the headline statistics suggest.
But while overcapacity in certain industries (especially telecommunications)
may lead to a brutal shake-out, the consequences for the wider economy should
not be overwhelming. The entire manufacturing sector is only about 15% of US
employment and about 20% of GDP, and most of that is not high-tech. Some
companies and their employees are suffering, but the main result of excess
capacity for the economy may be cheap bandwidth and improved technology
services.
Recovery just around the corner
The impact of the Fed's monetary easing should be felt over the next 6 months.
We expect lower rates to stimulate housing, auto sales, and other interest-
sensitive consumer purchases. As companies experience rising demand and work
off unwanted inventories, they will re-start postponed capital spending
projects. By the end of this year we anticipate that growth will be back to 3%
or more. This may feel unexciting by the standards of a year or two ago, but
in a longer perspective it is a very healthy rate.
There are, of course, risks:
. Energy prices and electricity supply represent a potential problem for
consumers and businesses.
. The US trade deficit leaves the dollar vulnerable to a crisis of
confidence, in which rising import prices inhibit the Fed's ability to
lower interest rates.
. Home-growth inflation pressures might also derail the recovery of business
investment and productivity growth.
. Finally, in a long-term perspective, today's high stock market valuations
may still be out of line with economic fundamentals.
Overall, however, we look forward to a pace of growth for the economy and
corporate profits that will be slower than we got used to in recent years, but
which is still better than what we have experienced for most of the past three
decades.
1
Inception: March 29, 1986
Growth & Income Fund
Independence Investment LLC Paul F. McManus
Putnam Investments C. Beth Cotner
The Growth & Income Fund is a multi-manager fund with two sub-advisers each
independently managing their own portion of the Fund. The two managers employ
a distinct and complementary investment strategy. This unique multi-manager
approach seeks to produce more consistent investment returns over market
cycles and to reduce the risk of any one manager or strategy being out of
favor in certain market environments.
II LLC selects stocks using a combination of fundamental equity research and
quantitative tools and focuses on large cap stocks that are undervalued
relative to the stock's history and have improving earnings growth prospects.
Putnam selects stocks using a systematic screening approach and fundamental
equity research and focuses on large and mid cap stocks with opportunities for
above average growth.
As of June 30, 2001, II LLC managed approximately 80.10% and Putnam managed
approximately 19.90% of the Fund's assets. For the first half of 2001, the
Fund performed -9.13%, just below the overall benchmark's performance of -
6.69%.
Independence Investment LLC
In the second quarter, the S&P 500 Index had its strongest quarterly
performance period since the fourth quarter of 1999, returning 5.85%. This
portion of your portfolio performed very well for the quarter, returning 7.28%
net; outperforming the S&P 500 Index by 143 basis points. All of the
outperformance of the Fund relative to the benchmark was from specific stock
selection. The sectors that added the most value this quarter were Retail and
Utilities. Conversely, Financial Services and Healthcare were the largest
detractors from performance.
The worldwide economies are clearly struggling. The U.S. will likely show
negative growth in the current quarter as businesses reign in spending and
investment. European economies slowed considerably this quarter and Japan
appears to have entered another recession. Investors are looking past the
slowdown and focusing instead on the potential rebound over the coming months.
The consumer has remained quite resilient during this slowdown. The Federal
Reserve has aggressively cut interest rates and consumers will be receiving
tax rebate checks in the third quarter. Inflation is clearly coming down as
energy prices have weakened. We believe investors must be patient, waiting to
see tangible signs of the economic recovery over the remainder of the year. We
continue to be overweight retailers, as we believe the consumer will once
again lead us on the road to recovery. We also own significant positions in
semiconductor companies. We believe their shares are attractively priced and
they will quickly benefit from a rebound in technology spending. Finally, many
software and data service companies are attractive because their businesses
should prove to be more predictable in this period of uncertain order patterns
in the technology industry.
Putnam Investments
Weak performance in the first quarter of the year dragged down the positive
results achieved later in the period. In the first quarter of 2001, the Fund
underperformed the index as strong relative stock performance in consumer
staples (Anheuser Busch, Clear Channel, and Echostar), coupled with
underweighting the lagging technology sector, was offset by weak stock
performance in both technology (Applied Micro Circuits, PMC-Sierra, Brocade
Communications, Juniper Networks, Agile Software, Siebel Systems) and health
care (Applera-Applied Biosystems, Genentech).
In the second quarter, the Fund outperformed the benchmark due to strong
stock selection in consumer staples (AOL Time Warner, Inc.) and overweighting
the robust conglomerates sector (Tyco International); which more than offset
an underweight position in the rallying technology sector.
We believe that the current environment of economic uncertainty will continue
to pressure rapidly growing, high-quality growth companies. While we do not
expect this condition to persist over the long term, we have taken steps to
focus on growth companies with a proven track record of growing profits even
during unsettled economic times.
Going forward, we are overweighting technology (software and communications
equipment) and consumer cyclicals (general merchandise retail and specialty
retail). While underweighting the health-care and energy sectors, within those
areas we will focus on pharmaceuticals, biotechnology, and specialty
pharmaceuticals, and oil services, respectively.
2
Inception: March 29, 1986
Growth & Income Fund
Independence Investment LLC Paul F. McManus
Putnam Investments C. Beth Cotner
[GRAPH]
Growth & Income
Date Fund S&P 500(R) Index
---- ---- ----------------
7/1/1991 10,000 10,000
7/31/1991 10,345 10,468
8/31/1991 10,567 10,714
9/30/1991 10,439 10,538
10/31/1991 10,592 10,680
11/30/1991 10,224 10,248
12/31/1991 11,181 11,419
1/31/1992 10,985 11,207
2/29/1992 11,115 11,350
3/31/1992 10,928 11,128
4/30/1992 11,275 11,452
5/31/1992 11,386 11,514
6/30/1992 11,302 11,347
7/31/1992 11,691 11,804
8/31/1992 11,460 11,566
9/30/1992 11,588 11,699
10/31/1992 11,569 11,741
11/30/1992 12,019 12,136
12/31/1992 12,175 12,295
1/31/1993 12,300 12,385
2/28/1993 12,472 12,552
3/31/1993 12,859 12,822
4/30/1993 12,516 12,508
5/31/1993 12,841 12,846
6/30/1993 12,967 12,888
7/31/1993 12,896 12,828
8/31/1993 13,416 13,316
9/30/1993 13,440 13,218
10/31/1993 13,669 13,486
11/30/1993 13,548 13,359
12/31/1993 13,798 13,524
1/31/1994 14,208 13,977
2/28/1994 13,794 13,599
3/31/1994 13,260 13,008
4/30/1994 13,490 13,177
5/31/1994 13,541 13,392
6/30/1994 13,296 13,061
7/31/1994 13,655 13,493
8/31/1994 14,164 14,042
9/30/1994 13,745 13,704
10/31/1994 13,965 14,018
11/30/1994 13,501 13,503
12/31/1994 13,722 13,700
1/31/1995 14,005 14,057
2/28/1995 14,557 14,602
3/31/1995 14,879 15,034
4/30/1995 15,313 15,472
5/31/1995 15,822 16,083
6/30/1995 16,182 16,461
7/31/1995 16,698 17,009
8/31/1995 16,808 17,055
9/30/1995 17,537 17,769
10/31/1995 17,422 17,707
11/30/1995 18,156 18,486
12/31/1995 18,416 18,828
1/31/1996 18,906 19,476
2/29/1996 19,150 19,663
3/31/1996 19,395 19,852
4/30/1996 19,614 20,144
5/31/1996 20,068 20,663
6/30/1996 20,177 20,748
7/31/1996 19,224 19,825
8/31/1996 19,682 20,245
9/30/1996 20,596 21,383
10/31/1996 21,100 21,969
11/30/1996 22,504 23,636
12/31/1996 22,117 23,173
1/31/1997 23,255 24,612
2/28/1997 23,383 24,811
3/31/1997 22,472 23,779
4/30/1997 23,561 25,199
5/31/1997 24,839 26,746
6/30/1997 25,818 27,939
7/31/1997 28,125 30,157
8/31/1997 26,701 28,480
9/30/1997 28,254 30,041
10/31/1997 27,191 29,038
11/30/1997 28,214 30,382
12/31/1997 28,717 30,905
1/31/1998 29,027 31,248
2/28/1998 31,396 33,501
3/31/1998 33,152 35,216
4/30/1998 33,244 35,572
5/31/1998 32,881 34,960
6/30/1998 34,276 36,379
7/31/1998 33,876 35,994
8/31/1998 28,675 30,789
9/30/1998 30,147 32,762
10/31/1998 32,834 35,426
11/30/1998 34,799 37,573
12/31/1998 37,402 39,737
1/31/1999 38,657 41,398
2/28/1999 37,457 40,111
3/31/1999 38,566 41,715
4/30/1999 40,191 43,329
5/31/1999 39,019 42,307
6/30/1999 41,709 44,655
7/31/1999 40,282 43,262
8/31/1999 39,805 43,045
9/30/1999 38,707 41,866
10/31/1999 40,971 44,516
11/30/1999 41,446 45,420
12/31/1999 43,471 48,095
1/31/2000 40,822 45,680
2/29/2000 39,797 44,817
3/31/2000 44,251 49,200
4/30/2000 43,169 47,719
5/31/2000 42,600 46,741
6/30/2000 43,282 47,891
7/31/2000 42,755 47,144
8/31/2000 45,401 50,071
9/30/2000 42,657 47,428
10/31/2000 42,761 47,228
11/30/2000 37,930 43,507
12/31/2000 37,775 43,720
1/31/2001 38,943 45,272
2/28/2001 34,857 41,143
3/31/2001 31,997 38,539
4/30/2001 35,072 41,533
5/31/2001 35,137 41,812
6/30/2001 34,325 40,796
Top Ten Holdings (as of June 30, 2001)
-------------------------------------------------------------------------------
-
% of six months ago
investments % of investments
General Electric Co. 6.0% 6.8%
Microsoft Corp. 4.8% 8.1%
Pfizer, Inc. 4.0% 1.0%
AOL Time Warner, Inc. 3.1% N/A
Citigroup, Inc. 3.0% 4.7%
Exxon Mobil Corp. 2.7% 1.6%
Wal-Mart Stores, Inc. 2.4% 1.8%
Intel Corp. 2.2% 3.6%
Johnson & Johnson 1.9% 1.3%
Verizon Communications 1.9% N/A
Average Annual Total Returns*
-------------------------------------------------------------------------------
-
Growth & Income S&P 500 MorningStar
Fund Index(1) Peer Group+
YTD** -9.13% -6.69% -8.13%
1 Year -20.69 -14.82 -15.74
3 Years 0.05 3.89 3.24
5 Years 11.21 14.48 12.82
10 Years 13.13 15.10 13.83
Top Ten Sectors (as of June 30, 2001)
-------------------------------------------------------------------------------
-
% of % of
investments investments
Technology 25.3% Consumer Cyclical 7.3%
Health Care 13.5% Energy 6.1%
Financial 13.4% Utility 5.3%
Capital Equipment 11.2% Consumer Staple 5.1%
Retail 8.3% Basic Material 3.0%
(1) "Standard & Poor's 500" is a trademark of the McGraw-Hill Companies,
Inc. and has been licensed for use by John Hancock Life Insurance
Company. The product is not sponsored, endorsed, sold or promoted by
Standard & Poor's and Standard & Poor's makes no representation
regarding the advisability of investing in the product.
* Total returns are for the period ended June 30, 2001. Returns
represent past performance, assume reinvestment of all distributions
and are not indicative of future performance. "Results may have been
achieved during market conditions or pursuing performance
opportunities that may not continue to occur in the future."
Investment returns and principal value of fund shares will fluctuate
so that shares, when redeemed, may be worth more or less than their
original cost. The performance of the Fund on this page is reported
net of Trust level charges (i.e. investment management fees and
operating expenses). It does not reflect expense and charges of the
applicable separate accounts and variable products, all of which vary
to a considerable extent and are described in your product
prospectus.
** Year-to-date total returns not annualized.
+ Source: MorningStar, Inc. Data as of 6/30/01. Although gathered from
reliable sources, data completeness and accuracy cannot be
guaranteed. Represents an average annual total return for all
variable annuity and life sub-accounts within the Morningstar
variable universe having a Large Blend investment category.
3
Inception: May 1, 1996
Equity Index Fund
SSgA Funds Management, Inc. Management Team
The S&P 500 gained 5.85% in the second quarter, partially offsetting the
losses from the first quarter of the year. The index is still down 6.69% for
the first half of 2001. Information Technology jumped 12.44% in the second
quarter, but is still down over 16% year to date. This gives the sector the
odd titles of best performer in the second quarter, and worst performer in the
first half. Utilities was the worst performing sector in the quarter, falling
5.70%.
In the first half of the year there were some bright lights. Consumer
Discretionary stocks rose 8.82% and Materials rose 4.51%. The remaining
sectors all posted losses. There were 7 stocks that doubled in the first half,
led by JC Penney (147%), Compuware (124%), Kmart (116%) and Best Buy (115%.)
Of particular interest, Microsoft rose 68% in the first half, adding 1.3% to
the index return.(/3/)
On the downside 15 stocks lost more than half of their value, led by Network
Appliances (-79%) Palm (-79%) and Applied MicroCircuits (-77%.)(/3/)
The Equity Index Fund attempts to track the performance of the S&P 500 Index
by fully replicating the index. The fund attempts to match the index holdings
and weights for each security in order to provide returns close to the index
return.
[GRAPH]
Historical Fund Return
$10,000
Investment made 5/1/96
(Fund Inception Date)
Date Equity Index Fund S&P 500* Index
---- ----------------- --------------
5/1/1996 10,000 10,000
5/31/1996 10,210 10,258
6/30/1996 10,231 10,300
7/31/1996 9,825 9,842
8/31/1996 9,971 10,050
9/30/1996 10,509 10,615
10/31/1996 10,787 10,906
11/30/2001 11,561 11,734
12/31/1996 11,423 11,504
1/31/1997 12,133 12,218
2/28/1997 12,221 12,317
3/31/1997 11,736 11,805
4/30/1997 12,409 12,510
5/31/1997 13,119 13,278
6/30/1997 13,727 13,870
7/31/1997 14,821 14,971
8/31/1997 13,993 14,139
9/30/1997 14,756 14,913
10/31/1997 14,267 14,415
11/30/1997 14,887 15,083
12/31/1997 15,169 15,342
1/31/1998 15,336 15,513
2/28/1998 16,441 16,631
3/31/1998 17,280 17,482
4/30/1998 17,455 17,659
5/31/1998 17,151 17,355
6/30/1998 17,850 18,060
7/31/1998 17,664 17,868
8/31/1998 15,096 15,285
9/30/1998 16,067 16,264
10/31/1998 17,369 17,587
11/30/1998 18,419 18,653
12/31/1998 19,484 19,727
1/31/1999 20,296 20,551
2/28/1999 19,669 19,912
3/31/1999 20,464 20,709
4/30/1999 21,252 21,510
5/31/1999 20,743 21,003
6/30/1999 21,904 22,168
7/31/1999 21,220 21,477
8/31/1999 21,115 21,369
9/30/1999 20,541 20,784
10/31/1999 21,834 22,099
11/30/1999 22,275 22,548
12/31/1999 23,593 23,876
1/31/2000 22,400 22,677
2/29/2000 21,978 22,249
3/31/2000 24,120 24,425
4/30/2000 23,394 23,690
5/31/2000 22,910 23,204
6/30/2000 23,475 23,775
7/31/2000 23,108 23,404
8/31/2000 24,546 24,857
9/30/2000 23,245 23,545
10/31/2000 23,146 23,446
11/30/2000 21,326 21,598
12/31/2000 21,434 21,704
1/31/2001 22,191 22,475
2/28/2001 20,164 20,425
3/31/2001 18,884 19,132
4/30/2001 20,350 20,619
5/31/2001 20,490 20,757
6/30/2001 19,990 20,252
Top Ten holdings (as of June 30, 2001)
------------------------------------------------------------------------------
-
% of six months ago
investments % of investments
General Electric Co. 4.4% 3.4%
Microsoft Corp. 3.6% 4.0%
Exxon Mobil Corp. 2.7% 1.9%
Citigroup, Inc. 2.4% 1.3%
Pfizer, Inc. 2.3% 0.8%
AOL Time Warner, Inc. 2.1% N/A
Wal-Mart Stores, Inc. 2.0% 2.1%
American International Group, Inc. 1.8% 1.1%
Intel Corp. 1.8% 1.8%
International Business Machines Corp. 1.8% 1.3%
Average Annual Total Returns*
------------------------------------------------------------------------------
-
Equity Index S&P 500 MorningStar
Fund(1) Index(2) Peer Group+
------------ ---------- ----------
-
YTD** -6.74% -6.69% -8.13%
1 Year -14.85 -14.82 -15.74
3 Years 3.85 3.89 3.24
5 Years 14.33 14.48 12.82
Since Inception (5/1/96) 14.35 14.64 N/A
Top Ten Sectors (as of June 30, 2001)
------------------------------------------------------------------------------
% of % of
investments investments
Technology 21.0% Energy 7.1%
Financial 17.5% Utility 6.9%
Health Care 12.1% Retail 6.4%
Capital Equipment 10.2% Consumer Staple 6.3%
Consumer Cyclical 7.6% Basic Material 3.0%
(1) Returns reflect waiver of advisory fee, reimbursement of all non-
advisory fund expenses, and extra-ordinary capital contributions of
$84,000 in 1996 and $250,000 in 1997.
(2) "Standard & Poor's 500" is a trademark of McGraw-Hill Companies,
Inc. and has been licensed for use by John Hancock Life Insurance
Company. The product is not sponsored, endorsed, sold or promoted
by Standard & Poor's and Standard & Poor's makes no representation
regarding the advisability of investing in the product.
(3) Source: Morgan Stanley Dean Witter.
* Total returns are for the period ended June 30, 2001. Returns
represent past performance, assume reinvestment of all distributions
and are not indicative of future performance. "Results may have been
achieved during market conditions or pursuing performance
opportunities that may not continue to occur in the future."
Investment returns and principal value of fund shares will fluctuate
so that shares, when redeemed, may be worth more or less than their
original cost. The performance of the fund does not reflect expense
and charges of the applicable separate accounts and variable
products, all of which vary to a considerable extent and are
described in your product prospectus.
** Year-to-date total returns not annualized.
+ Source: MorningStar, Inc. Data as of 6/30/01. Although gathered from
reliable sources, data completeness and accuracy cannot be
guaranteed. Represents an average annual total return for all the
variable annuity and life sub-accounts within the Morningstar
variable universe having a Large Blend investment category.
4
Inception: May 1, 1996
Large Cap Value Fund
T. Rowe Price Associates, Inc. Brian C. Rogers
The fund posted a respectable gain of 2.34% in a difficult environment during
the first half of the year. Results for the six months and year were well
ahead of the Russell 1000 Value Index which ended in negative territory for
the half.
We were pleased by the resiliency of a number of our holdings, including Bank
of America, American General, Microsoft, Fortune Brands, Toys "R' Us, and H&R
Block, all of which were prominent on a long list of positive contributors to
fund performance. On the negative side of the ledger, Honeywell International
and Rockwell International turned in disappointing results.
We made a number of sizable purchases in the first half of the year.
Schering-Plough, McDonald's, Bristol-Myers Squibb, Texas Instruments, and
Corning were all companies trading anywhere from 25% to 75% below their 12-
month highs and, in our opinion, provided attractive investment opportunities.
Accordingly, we either initiated positions in them or enhanced our existing
holdings.
Our transactions in GE and Honeywell International deserve special
commentary. Most of our buying in Honeywell occurred in late June when the
company's proposed acquisition by GE was coming unglued due to concerns raised
by European regulators. After Honeywell stock declined to an unrealistically
low price level, in our view, we believed it represented a favorable
combination of strong upside potential and little downside risk. Regarding GE,
we normally do not buy and sell a security in such a short period. However,
the stock sold off sharply in the first three months of the year, at which
point we initiated a position in it. Subsequently, GE appreciated fairly
quickly, and we decided to eliminate it from the portfolio.
In terms of other sales during the half, we eliminated or reduced positions
in several companies after their stocks appreciated in value--with the notable
exception of BMC Software. As we've stated before, we generally recycle out of
holdings that have increased in price to the point where the appeal of their
relative valuations is less compelling, and then reinvest the proceeds in more
undervalued opportunities.
While the economic and earnings news has been sluggish, the Federal Reserve's
aggressive program of cutting short-term interest rates, combined with some
boost from the administration's tax cut, auger well for improved economic and
earnings performance toward the end of the year or early 2002. While a rebound
is difficult to forecast with a high degree of certainty, we believe the
backdrop for stocks will improve over the intermediate term. In our view,
there are many appealing opportunities for investors with a reasonable time
horizon, and we will continue to seek them out in the months ahead.
[GRAPH]
Historical Fund Return
$10,000
Investment made 5/1/96
(Fund Inception Date)
Russel 1000 Large Cap
Date Value Index Value Fund
---- ----------- ----------
5/1/1996 10,000 10,000
5/31/1996 10,125 10,190
6/30/1996 10,133 10,255
7/31/1996 9,750 9,977
8/31/1996 10,029 10,186
9/30/1996 10,428 10,618
10/31/1996 10,832 10,860
11/30/1996 11,617 11,451
12/31/1996 11,468 11,391
1/31/1997 12,024 11,699
2/28/1997 12,201 11,979
3/31/1997 11,762 11,724
4/30/1997 12,256 12,016
5/31/1997 12,941 12,582
6/30/1997 13,496 13,059
7/31/1997 14,511 13,805
8/31/1997 13,995 13,447
9/30/1997 14,840 14,081
10/31/1997 14,426 13,703
11/30/1997 15,063 14,220
12/31/1997 15,503 14,644
1/31/1998 15,283 14,539
2/28/1998 16,312 15,250
3/31/1998 17,310 15,954
4/30/1998 17,426 15,869
5/31/1998 17,168 15,598
6/30/1998 17,388 15,561
7/31/1998 17,082 15,107
8/31/1998 14,540 13,634
9/30/1998 15,375 14,373
10/31/1998 16,566 15,261
11/30/1998 17,338 15,884
12/31/1998 17,928 15,999
1/31/1999 18,071 15,600
2/28/1999 17,816 15,470
3/31/1999 18,185 15,889
4/30/1999 19,883 17,601
5/31/1999 19,665 17,469
6/30/1999 20,235 17,932
7/31/1999 19,642 17,538
8/31/1999 18,913 17,003
9/30/1999 18,251 16,394
10/31/1999 19,303 16,974
11/30/1999 19,152 16,678
12/31/1999 19,244 16,524
1/31/2000 18,617 15,752
2/29/2000 17,234 14,461
3/31/2000 19,336 16,067
4/30/2000 19,112 16,209
5/31/2000 19,312 16,987
6/30/2000 18,430 16,141
7/31/2000 18,660 16,308
8/31/2000 19,698 17,100
9/30/2000 19,879 17,218
10/31/2000 20,368 18,044
11/30/2000 19,612 17,845
12/31/2000 20,595 18,667
1/31/2001 20,675 18,863
2/28/2001 20,100 18,597
3/31/2001 19,391 18,092
4/30/2001 20,341 18,861
5/31/2001 20,799 19,494
6/30/2001 20,337 19,104
Top Ten Holdings (as of June 20, 2001)
------------------------------------------------------------------------------
--
six months ago
% of % of
investments investments
Exxon Mobil Corp. 2.6% 2.4%
Mellon Financial Corp. 2.3% 1.2%
Lockheed Martin Corp. 1.9% 0.8%
BP Amoco plc 1.9% 1.3%
Union Pacific Corp. 1.9% 0.7%
American Home Products Corp. 1.7% 1.2%
Verizon Communications 1.7% N/A
Texaco, Inc. 1.6% 0.9%
Federal National Mortgage Assoc. 1.6% 0.8%
Fleet Boston Financial Corp. 1.6% 0.9%
Average Annual Total Returns*
------------------------------------------------------------------------------
--
Large Cap Russell 1000 MorningStar
Value Fund Value Index Peer Group+
---------- ------------ -----------
YTD** 2.34% -1.25% -0.67%
1 Year 18.36 10.35 8.79
3 Years 7.08 5.36 4.84
5 Years 13.25 14.95 12.16
Since Inception (5/1/96) 13.35 14.73 N/A
Top Ten Sectors (as of June 30, 2001)
------------------------------------------------------------------------------
--
% of % of
investments investments
Financial 20.5% Technology 8.6%
Energy 12.0% Utility 8.3%
Consumer Staple 10.4% Basic Material 7.4%
Consumer Cyclical 10.3% Health Care 5.5%
Captial Equipment 9.0% Retail 3.6%
* Total returns are for the period ended June 30, 2001. Returns
represent past performance, assume reinvestment of all distributions
and are not indicative of future performance. "Results may have been
achieved during market conditions or pursuing performance
opportunities, including investment in initial public offerings, that
may not continue to occur in the future." Investment returns and
principal value of fund shares will fluctuate so that shares, when
redeemed, may be worth more or less than their original cost. The
performance of the fund on this page is reported net of Trust level
charges (i.e. investment management fees and operating expenses). It
does not reflect expense and charges of the applicable separate
accounts and variable products, all of which vary to a considerable
extent and are described in your product prospectus.
** Year-to-date total returns not annualized.
+ Source: MorningStar, Inc. Data as of 6/30/01. Although gathered from
reliable sources, data completeness and accuracy cannot be
guaranteed. Represents an average annual total return for all
variable annuity and life sub-accounts within the Morningstar
variable universe having a Large Value investment category.
5
Inception: August 31, 1999
Large Cap Value CORE/SM/ Fund
Goldman Sachs Asset Management Brown/Jones/Pinter
During the second quarter of 2001, the John Hancock VST Large Cap Value CORE
Fund (the "Fund") generated a total cumulative return of 6.47%, versus the
4.88% total cumulative return of the Fund's benchmark, the Russell 1000 Value
Index (the "Index").
The Fund's strategy is a well-defined investment process that has historically
provided consistent, risk-managed performance. The diversification of our
models typically adds value because, when one theme doesn't work, others
usually do. For example, when Momentum stocks underperform, Value stocks
typically advance more than average.
Of the CORE themes, Momentum recovered after a very difficult first quarter to
drive positive performance in the second quarter. The theme benefited from the
market's more typical patterns of behavior, following a spate of panic selling
and frenzied buying that characterized the end of 2000 and beginning of 2001.
Value was a positive contributor overall, its fourth positive quarter in a row.
Profitability also boosted results for the second consecutive quarter, while
Earnings Quality and Research were down for the period.
The Fund's holdings in Energy and Consumer Non-cyclicals, in particular,
significantly outperformed benchmark peers, while holdings in Basic Materials
lagged the most. Individual stocks that had the greatest impact on the upside
were overweights in Ultramar Diamond Shamrock (0.1%), Fox Entertainment Group,
Inc. (0.1%) and Waste Management Inc. (0.9%). An overweight in CVS Corp. (0.4%)
and an underweight in Du Pont (0.1%) were the biggest detractors.
Looking ahead, we continue to believe that cheaper stocks should outpace more
expensive ones and good momentum stocks should do better than poor momentum
stocks. We also expect companies that are favored by fundamental research
analysts and that have strong profit margins and sustainable earnings to
outperform their peers. As such, we anticipate remaining fully invested and
expect that the value we add over time will be due to stock selection, as
opposed to sector or size allocations.
Footnotes
Total return figures represent past performance and do not indicate future
results which will vary. The Fund's performance reflects the reinvestment of
dividends and distributions. The Russell 1000 Value Index is unmanaged and does
not include any fees or expenses. CORESM is a service mark of Goldman, Sachs &
Co.
Performance returns for the VST Large Cap Value CORE Fund (the "Fund") are
estimated and supplied as a client accommodation for internal use only within
John Hancock Funds Group. The Fund is subadvised/managed by Goldman Sachs Asset
Management ("GSAM"). As a subadviser, we do not normally perform administration
functions, such as performance calculations. The NAV's, distributions and
expense ratios (which are calculated by the custodian--State Street Bank) used
to calculate total returns have not been independently validated and approved
by GSAM.
[GRAPH]
Historical Fund Return
$10,000
Investment made 8/31/99
(Fund Inception Date)
Large Cap Value Russell 1000
Date CORE(SM) Fund Value Index
---- ------------- -----------
8/31/1999 10,000 10,000
9/30/1999 9,710 9,650
10/31/1999 10,330 10,206
11/30/1999 10,221 10,126
12/31/1999 10,357 10,175
1/31/2000 9,965 9,843
2/29/2000 9,305 9,112
3/31/2000 10,352 10,223
4/30/2000 10,234 10,105
5/31/2000 10,314 10,211
6/30/2000 9,924 9,744
7/31/2000 10,093 9,866
8/31/2000 10,734 10,415
9/30/2000 10,783 10,510
10/31/2000 10,932 10,769
11/30/2000 10,423 10,370
12/31/2000 10,887 10,889
1/31/2001 10,868 10,931
2/28/2001 10,563 10,628
3/31/2001 10,164 10,252
4/30/2001 10,773 10,755
5/31/2001 11,028 10,997
6/30/2001 10,819 10,753
Top Ten Holdings (as of June 30, 2001)
-------------------------------------------------------------------------------
-
% of six months ago
investments % of investments
Exxon Mobil Corp. 5.5% 0.9%
Citigroup, Inc. 4.7% 0.6%
Verizon Communications 3.0% N/A
American International Group, Inc. 2.3% 0.3%
Procter & Gamble Co. 2.0% 0.1%
Federal National Mortgage Assoc. 2.0% 0.1%
Bank of America Corp. 2.0% 0.4%
SBC Communications, Inc. 1.6% 0.4%
Johnson & Johnson 1.6% 0.1%
Minnesota Mining & Manufacturing Co. 1.5% 0.1%
Average Annual Total Returns*
-------------------------------------------------------------------------------
-
Large Cap Russell 1000 MorningStar
Value Core/SM/ Fund Value Index Peer Group+
------------------- ------------ -----------
YTD** -0.66% -1.25% -0.67%
1 Year 8.97 10.35 8.79
Since Inception (8/31/99) 4.36 4.04 N/A
Top Ten Sectors (as of June 30, 2001)
-------------------------------------------------------------------------------
-
% of % of
investments investments
Financial 27.8% Consumer Cyclical 7.9%
Energy 11.2% Consumer Staple 7.7%
Utility 9.8% Capital Equipment 6.0%
Technology 9.7% Basic Material 3.9%
Health Care 8.3% Retail 3.4%
* Total returns are for the period ended June 30, 2001. Returns
represent past performance, assume reinvestment of all distributions
and are not indicative of future performance. "Results may have been
achieved during market conditions or pursuing performance
opportunities that may not continue to occur in the future."
Investment returns and principal value of fund shares will fluctuate
so that shares, when redeemed, may be worth more or less than their
original cost. The performance of the fund on this page is reported
net of Trust level charges (i.e. investment management fees and
operating expenses). It does not reflect expense and charges of the
applicable separate accounts and variable products, all of which vary
to a considerable extent and are described in your product
prospectus.
** Year-to-date total returns not annualized.
+ Source: MorningStar, Inc. Data as of 6/30/01. Although gathered from
reliable sources, data completeness and accuracy cannot be
guaranteed. Represents an average annual total return for all the
variable annuity and life sub-accounts within the Morningstar
variable universe having a Large Cap Value investment style.
6
Inception: June 30, 2000
Large Cap Value COREsm II (formerly American Leaders Large Cap Value Fund)
Goldman Sachs Asset Management Brown/Jones/Pinter
Effective January 1, 2001 Goldman Sachs Asset Management assumed management of
the Fund.
During the second quarter of 2001, the John Hancock VST Large Cap Value CORE
II Fund (the "Fund") generated a total cumulative return of 6.21%, versus the
4.88% total cumulative return of the Fund's benchmark, the Russell 1000 Value
Index (the "Index").
The Fund's strategy is a well-defined investment process that has
historically provided consistent, risk-managed performance. The
diversification of our models typically adds value because, when one theme
doesn't work, others usually do. For example, when Momentum stocks
underperform, Value stocks typically advance more than average.
Of the CORE themes, Momentum recovered after a very difficult first quarter
to drive positive performance in the second quarter. The theme benefited from
the market's more typical patterns of behavior, following a spate of panic
selling and frenzied buying that characterized the end of 2000 and beginning
of 2001. Value was a positive contributor overall, its fourth positive quarter
in a row. Profitability also boosted results for the second consecutive
quarter, while Earnings Quality and Research were down for the period.
The Fund's holdings in Energy and Consumer Non-cyclicals, in particular,
significantly outperformed benchmark peers, while holdings in Basic Materials
lagged the most. Individual stocks that had the greatest impact on the upside
were overweights in Ultramar Diamond Shamrock (0.1%), Fox Entertainment Group,
Inc. (0.1%) and Waste Management Inc. (0.9%). An overweight in CVS Corp.
(0.4%) and an underweight in Du Pont (0.1%) were the biggest detractors.
Looking ahead, we continue to believe that cheaper stocks should outpace more
expensive ones and good momentum stocks should do better than poor momentum
stocks. We also expect companies that are favored by fundamental research
analysts and that have strong profit margins and sustainable earnings to
outperform their peers. As such, we anticipate remaining fully invested and
expect that the value we add over time will be due to stock selection, as
opposed to sector or size allocations.
Footnotes
Total return figures represent past performance and do not indicate future
results which will vary. The Fund's performance reflects the reinvestment of
dividends and distributions. The Russell 1000 Value Index is unmanaged and
does not include any fees or expenses. CORESM is a service mark of Goldman,
Sachs & Co.
Performance returns for the VST Large Cap Value CORE II Fund (the "Fund") are
estimated and supplied as a client accommodation for internal use only within
John Hancock Funds Group. The Fund is subadvised/managed by Goldman Sachs
Asset Management ("GSAM"). As a subadviser, we do not normally perform
administration functions, such as performance calculations. The NAV's,
distributions and expense ratios (which are calculated by the custodian--State
Street Bank) used to calculate total returns have not been independently
validated and approved by GSAM.
(Fund investment information on next page.)
7
Inception: June 30, 2000
Large Cap Value COREsm II (formerly American Leaders Large Cap Value Fund)
Goldman Sachs Asset Management Brown/Jones/Pinter
[GRAPH]
Historical Fund Return
$10,000
Investment made 6/30/00
(Fund Inception Date)
Date Large Cap Value Core II Fund Russell 1000 Value Index
---- ---------------------------- ------------------------
6/30/2000 10,000 10,000
7/31/2000 9,842 10,125
8/31/2000 10,692 10,688
9/30/2000 10,499 10,786
10/31/2000 10,827 11,052
11/30/2000 10,283 10,642
12/31/2000 10,802 11,175
1/31/2001 10,800 11,218
2/28/2001 10,529 10,906
3/31/2001 10,139 10,521
4/30/2001 10,723 11,037
5/31/2001 11,002 11,285
6/30/2001 10,766 11,035
Top Ten Holdings (as of June 30, 2001)
--------------------------------------
% of six months ago
investments % of investments
Exxon Mobil Corp. 5.1% 1.8%
Citigroup, Inc. 3.8% N/A
Verizon Communications 3.0% 1.3%
Bank of America Corp. 2.3% 1.0%
Federal National Mortgage Assoc. 2.0% N/A
Johnson & Johnson 1.9% N/A
American International Group, Inc. 1.9% N/A
SBC Communications, Inc. 1.8% N/A
Procter & Gamble Co. 1.6% N/A
General Motors Corp. 1.3% 0.7%
Average Annual Total Returns*
-----------------------------
Large Cap Value Russell 1000 Morning Star
Core II Fund Value Index Peer Group+
--------------- ------------ ------------
YTD** -0.33% -1.25% -0.67%
1 Year 7.66 10.35 8.79%
Since Inception (6/30/00) 7.66 10.35 N/A
Top Ten Sectors (as of June 30, 2001)
-------------------------------------
% of % of
investments investments
Financial 27.5% Health Care 8.4%
Energy 11.4% Consumer Staple 7.9%
Utility 9.9% Capital Equipment 6.6%
Technology 9.4% Governmental 3.1%
Consumer Cyclical 8.7% Basic Material 2.8%
* Total returns are for the period ended June 30, 2001. Returns
represent past performance, assume reinvestment of all distributions
and are not indicative of future performance. "Results may have been
achieved during market conditions or pursuing performance
opportunities, including investment in initial public offerings, that
may not continue to occur in the future." Investment returns and
principal value of fund shares will fluctuate so that shares, when
redeemed, may be worth more or less than their original cost. Small-
company investing entails special risks as outlined in the
prospectus. The performance of the fund on this page is reported net
of Trust level charges (i.e. investment management fees ad operating
expenses). It does not reflect expense and charges of the applicable
separate accounts and variable products, all of which vary to a
considerable extent and are described in your product prospectus.
** Year-to-date total returns not annualized.
+ Source: MorningStar, Inc. Data as of 6/30/01. Although gathered from
reliable sources, data completeness and accuracy cannot be
guaranteed. Represents an average annual total return for all
variable annuity and life sub-accounts within the Morningstar
variable universe having a Large Value investment category.
8
Inception: March 29, 1986
Large Cap Growth Fund
Independence Investment LLC Mark Lapman
In the second quarter, the S&P 500 Index had its strongest quarterly
performance period since the fourth quarter of 1999, returning 5.85%. Your
portfolio performed very well for the quarter, returning 10.06% net,
outperforming both the S&P 500 Index and the Russell 1000 Growth Index. The
sectors that added the most value this quarter were Technology (Lexmark
International, Intuit and Sanmina), Telecommunications (PCS Sprint and
Verizon) and Consumer Non-Cyclicals (Phillip Morris). On the negative side,
stock selection within Retail (Radioshack, CVS and Walgreen) and Health Care
(Applera and Waters Corp.) trailed the benchmark.
The worldwide economies are clearly struggling. The U.S. will likely show
negative growth in the current quarter as businesses reign in spending and
investment. European economies slowed considerably this quarter and Japan
appears to have entered another recession. Investors are looking past the
slowdown and focusing instead on the potential rebound over the coming months.
The consumer has remained quite resilient during this slowdown. The Federal
Reserve has aggressively cut interest rates and consumers will be receiving
tax rebate checks in the third quarter. Inflation is clearly coming down as
energy prices have weakened. We believe investors must be patient, waiting to
see tangible signs of the economic recovery over the remainder of the year. We
continue to be overweight retailers, as we believe the consumer will once
again lead us on the road to recovery. We also own significant positions in
semiconductor companies. We believe their shares are attractively priced and
they will quickly benefit from a rebound in technology spending. Finally, many
software and data service companies are attractive because their businesses
should prove to be more predictable in this period of uncertain order patterns
in the technology industry.
[GRAPH]
Historical Fund Return
$10,000
Investment made 7/1/91
(10-Year Period)
Large Cap Growth
Date Large Cap Growth Fund Benchmark (1)
---- --------------------- -------------
7/1/1991 10,000 10,000
7/31/1991 10,323 10,468
8/31/1991 10,532 10,714
9/30/1991 10,356 10,538
10/31/1991 10,405 10,680
11/30/1991 10,041 10,248
12/31/1991 10,928 11,419
1/31/1992 10,761 11,207
2/29/1992 10,882 11,350
3/31/1992 10,688 11,128
4/30/1992 11,025 11,452
5/31/1992 11,152 11,514
6/30/1992 11,063 11,347
7/31/1992 11,459 11,804
8/31/1992 11,245 11,566
9/30/1992 11,356 11,699
10/31/1992 11,370 11,741
11/30/1992 11,792 12,136
12/31/1992 12,014 12,295
1/31/1993 12,127 12,385
2/28/1993 12,348 12,552
3/31/1993 12,723 12,822
4/30/1993 12,264 12,508
5/31/1993 12,631 12,846
6/30/1993 12,816 12,888
7/31/1993 12,717 12,828
8/31/1993 13,268 13,316
9/30/1993 13,434 13,218
10/31/1993 13,636 13,486
11/30/1993 13,487 13,359
12/31/1993 13,672 13,524
1/31/1994 14,088 13,977
2/28/1994 13,651 13,599
3/31/1994 13,209 13,008
4/30/1994 13,469 13,177
5/31/1994 13,426 13,392
6/30/1994 13,224 13,061
7/31/1994 13,555 13,493
8/31/1994 14,029 14,042
9/30/1994 13,609 13,704
10/31/1994 13,739 14,018
11/30/1994 13,338 13,503
12/31/1994 13,538 13,700
1/31/1995 13,792 14,057
2/28/1995 14,314 14,602
3/31/1995 14,638 15,034
4/30/1995 15,000 15,472
5/31/1995 15,510 16,083
6/30/1995 15,771 16,461
7/31/1995 16,281 17,009
8/31/1995 16,406 17,055
9/30/1995 17,072 17,769
10/31/1995 16,876 17,707
11/30/1995 17,577 18,486
12/31/1995 17,822 18,828
1/31/1996 18,239 19,476
2/29/1996 18,455 19,663
3/31/1996 18,688 19,852
4/30/1996 19,003 20,144
5/31/1996 19,423 20,847
6/30/1996 19,401 20,876
7/31/1996 18,111 19,652
8/31/1996 18,689 20,160
9/30/1996 19,833 21,627
10/31/1996 19,980 21,757
11/30/1996 21,430 23,391
12/31/1996 21,078 22,932
1/31/1997 22,284 24,540
2/28/1997 22,449 24,373
3/31/1997 21,392 23,054
4/30/1997 22,524 24,585
5/31/1997 23,820 26,360
6/30/1997 24,764 27,415
7/31/1997 27,153 29,838
8/31/1997 25,802 28,093
9/30/1997 27,409 29,475
10/31/1997 26,305 28,384
11/30/1997 27,282 29,591
11/30/1997 27,282 29,591
12/31/1997 27,602 29,922
1/31/1998 28,340 30,817
2/28/1998 31,021 33,134
3/31/1998 32,777 34,456
4/30/1998 33,025 34,932
5/31/1998 32,313 33,940
6/30/1998 33,917 36,017
7/31/1998 33,753 35,779
8/31/1998 28,467 30,409
9/30/1998 30,133 32,744
10/31/1998 32,403 35,377
11/30/1998 34,977 38,069
12/31/1998 38,508 41,502
1/31/1999 40,651 43,939
2/28/1999 38,694 41,931
3/31/1999 40,324 44,140
4/30/1999 40,918 44,198
5/31/1999 39,734 42,841
6/30/1999 42,693 45,840
7/31/1999 41,280 44,382
8/31/1999 41,516 45,106
9/30/1999 40,565 44,158
10/31/1999 42,943 47,492
11/30/1999 44,391 50,057
12/31/1999 47,776 55,263
1/31/2000 44,917 52,671
2/29/2000 46,337 55,247
3/31/2000 51,279 59,202
4/30/2000 49,537 56,384
5/31/2000 47,743 53,542
6/30/2000 50,505 57,601
7/31/2000 48,864 55,199
8/31/2000 53,633 60,194
9/30/2000 48,014 54,500
10/31/2000 46,587 51,922
11/30/2000 40,383 44,269
12/31/2000 39,231 42,870
1/31/2001 41,504 45,832
2/28/2001 34,864 38,050
3/31/2001 30,974 33,910
4/30/2001 35,233 38,200
5/31/2001 34,816 37,638
6/30/2001 34,089 36,765
Top Ten Holdings (as of June 30, 2001)
------------------------------------------------------------------------------
% of six months ago
investments % of investments
General Electric 8.9% 6.7%
Microsoft Corp. 7.0% 9.4%
Pfizer, Inc. 6.4% 2.4%
AOL Time Warner, Inc. 4.9% N/A
Intel Corp. 4.4% 6.1%
International Business Machines Corp. 3.0% 2.7%
Home Depot, Inc. 2.1% 3.5%
Kohl's Corp. 2.1% N/A
Merck & Co., Inc. 1.9% 2.5%
Johnson & Johnson 1.8% 2.1%
Average Annual Total Returns*
------------------------------------------------------------------------------
Large Cap Large Cap Growth MorningStar
Growth Fund Benchmark (1) Peer Group+
----------- ---------------- -----------
YTD** -13.11% -14.24% -15.20%
1 Year -32.50 -36.17 -30.61
3 Years 0.17 0.69 4.84
5 Years 11.93 11.98 12.79
10 Years 13.05 13.91 14.65
Top Ten Sectors (as of June 30, 2001)
------------------------------------------------------------------------------
% of % of
investments investments
Technology 37.0% Utility 3.2%
Health Care 20.7% Consumer Staple 2.8%
Capital Equipment 11.8% Financial 2.7%
Retail 10.1% Energy 1.6%
Consumer Cyclical 8.6% Governmental 1.1%
(1) The benchmark is represented by the S&P 500 for the period April
1986 to April 1996 and the Russell Large Cap Growth Index for the
period May 1996 to present.
* Total returns are for the period ended June 30, 2001. Returns
represent past performance, assume reinvestment of all distributions
and are not indicative of future performance. "Results may have been
achieved during market conditions or pursuing performance
opportunities that may not continue to occur in the future."
Investment returns and principal value of fund shares will fluctuate
so that shares, when redeemed, may be worth more or less than their
original cost. The performance of the fund on this page is reported
net of Trust level charges (i.e. investment management fees and
operating expenses). It does not reflect expense and charges of the
applicable separate accounts and variable products, all of which vary
to a considerable extent and are described in your product
prospectus.
** Year-to-date total returns not annualized.
+ Source: MorningStar, Inc. Data as of 6/30/01. Although gathered from
reliable sources, data completeness and accuracy cannot be
guaranteed. Represents an average annual total return for all
variable annuity and life sub-accounts within the Morningstar
variable universe having a Large Cap Growth investment category.
Prior to May 1996 (concurrent with the Fund's strategy change), the
peer group represents the Large Cap Growth investment category.
9
Inception: August 31, 1999
Large Cap Aggressive Growth Fund
Alliance Capital Management L.P. J. Fogarty/A. Harrison
The Portfolio (+6.2%) underperformed the Russell 1000 Growth Index return of
8.4% due to unfavorable stock selection in the producer durables sector,
specifically Nokia. The Portfolio was also negatively impacted by our position
in Honeywell. The Portfolio was positively impacted by a mild overweight and
favorable stock selection in the consumer discretionary sector, specifically
AOL Time Warner.
We recognize the headwind the U.S. stock market has encountered in past
months is increasingly accompanied by problems overseas. We realize the
possibility that U.S. economic growth may remain stagnant short-term and that
any palpable evidence of a recovery may extend into later this year or early
2002. We are encouraged by the Federal Reserve's unparalleled record of
steering the U.S. economy and stock market through difficult stages, but we
believe that to gain sound traction may take longer than expected and may be
presented in the form of a "U" rather than "V" shaped recovery. Our cautious
positioning in the Portfolio, reflected by our low profile in the technology
sector, gives us some comfort in the current environment. We are guarded that
the second half will provide the upward thrust that so many companies are
depending upon.
Our strategy is to focus on companies with strong balance sheets and
carefully select those with the soundest fundamentals, particularly in the
technology sector, which we believe will emerge from this economic slump in
solid financial shape. We are utilizing the extensive resources that Alliance
Capital's worldwide presence has to offer and intensifying our efforts to
obtain the best information about each of the companies that we invest in,
including industry data that company managements may be missing. We fully
appreciate that even in the "safest" sectors elements of risk may exist and
will maintain our positions in individual companies in which we have the
highest confidence of earnings and fundamentals.
[GRAPH]
Historical Fund Return
$10,000
Investment made 8/31/99
(Fund Inception Date)
Large Cap Aggressive Russell 1000
Date Growth Fund Growth Index
---- ---------------- ---------
8/31/1999 10,000 10,000
9/30/1999 9,946 9,790
10/31/1999 10,810 10,529
11/30/1999 11,046 11,098
12/31/1999 12,016 12,252
1/31/2000 11,463 11,677
2/29/2000 11,567 12,248
3/31/2000 12,831 13,125
4/30/2000 12,362 12,501
5/31/2000 11,691 11,870
6/30/2000 12,283 12,770
7/31/2000 12,149 12,238
8/31/2000 12,931 13,345
9/30/2000 11,512 12,083
10/31/2000 11,115 11,511
11/30/2000 9,840 9,815
12/31/2000 9,768 9,504
1/31/2000 10,397 10,161
2/28/2001 8,775 8,436
3/31/2001 8,022 7,518
4/30/2001 8,822 8,469
5/31/2001 8,857 8,344
6/30/2001 8,519 8,151
Top Ten Holdings (as of June 30, 2001)
------------------------------------------------------------------------------
% of six months ago
investments % of investments
----------- ----------------
AOL Time Warner, Inc. 6.6% N/A
Pfizer, Inc. 5.8% 0.6%
Federal Home Loan Mortgage Corp. 4.9% 0.6%
Citigroup, Inc. 4.7% 1.4%
MBNA Corp. 4.7% 1.1%
Microsoft Corp. 4.3% 2.0%
General Electric Co. 4.2% 0.6%
American International Group, Inc. 3.8% 0.7%
Kohl's Corp. 3.5% 1.0%
Comcast Corp. 3.5% N/A
Average Annual Total Returns*
------------------------------------------------------------------------------
Large Cap Aggressive Russell 1000 MorningStar
Growth Fund Growth Index Peer Group+
-------------------- ------------ -----------
YTD** -12.77% -14.24% -15.20%
1 Year -30.68 -36.17 -30.61
Since Inception (8/31/99) -8.40 -10.55 N/A
Top Ten Sectors (as of June 30, 2001)
------------------------------------------------------------------------------
% of % of
investments investments
Technology 17.1% Capital Equipment 9.8%
Financial 16.8% Governmental 6.9%
Health Care 15.5% Energy 5.1%
Consumer Cyclical 12.2% Utility 3.3%
Retail 10.5% Consumer Staple 2.6%
* Total returns are for the period ended June 30, 2001. Returns
represent past performance, assume reinvestment of all distributions
and are not indicative of future performance. "Results may have been
achieved during market conditions or pursuing performance
opportunities, including investment in initial public offerings, that
may not continue to occur in the future." Investment returns and
principal value of fund shares will fluctuate so that shares, when
redeemed, may be worth more or less than their original cost. The
performance of the fund on this page is reported net of Trust level
changes (i.e. investment management fees and operating expenses). It
does not reflect expenses and charges of the applicable separate
accounts and variable products, all of which vary to a considerable
extent and are described in your product prospectus.
** Year-to-date total returns not annualized.
+ Source: MorningStar, Inc. Data as of 6/30/01. Although gathered from
reliable sources, data completeness and accuracy cannot be
guaranteed. Represents an average annual total return for all
variable annuity and life sub-accounts within the Morningstar
variable universe having a Large Growth investment category.
10
Inception: August 31, 1999
Large/Mid Cap Value Fund
Wellington Management Company, LLP D. Chu/L. Gabriel
During the second quarter, the John Hancock Large/Mid Cap Value Fund advanced
4.1%, slightly underperforming the Fund's benchmark, the Russell 1000 Value
Index, which increased by 4.9%. For the one-year period ending June 30, 2001
the Fund returned 13.66%, well ahead of its benchmark which only increased
10.35%.
While growth outperformed value for the quarter, value was the relative
winner for the one-year period ending June 30, 2001 as the Russell 1000 Value
Index (10%) outperformed the Russell 1000 Growth Index (-36%).
The Fund's top-performing sector during the quarter was the financials sector
due to strong stock selection. Citigroup posted strong returns as the banking
sector benefited from continued rate cuts and a steepening yield curve.
Conversely, the health care and utility sectors detracted from performance.
Some of the Fund's largest contributors through stock selection were Verizon,
which was a strong performer in the telecommunications sector, and AT&T
Liberty Media, which rebounded after a favorable tax ruling regarding AT&T's
divestiture was announced.
We anticipate improving conditions in the second half of this year, setting
the stage for a stronger economy in 2002. This recovery will begin as a result
of positive fiscal and monetary stimulus and will be fueled by lower than
expected inflation, a stronger consumer, and rising corporate profits. In this
environment our outlook for large cap value stocks remains favorable.
As we begin the second half of the year, we will continue to combine our
global industry analysts' "best ideas" from bottom-up stock selection within
the large-cap value universe. Going forward, we continue to believe that broad
diversification across sectors is a central tenet of the investment strategy.
By closely aligning sector weights to the index, sector risk is minimized,
while security selection is emphasized as the source of value added for
investors.
[GRAPH]
Historical Fund Return
$10,000
Investment made 8/31/99
(Fund Inception Date)
Large/Mid Cap Russell 1000
Date Value Fund Value Index
---- ------------- ---------------
8/31/1999 10,000 10,000
9/30/1999 9,790 9,650
10/31/1999 10,355 10,206
11/30/1999 10,295 10,126
12/31/1999 10,477 10,175
1/31/2000 10,030 9,843
2/29/2000 9,618 9,112
3/31/2000 10,825 10,223
4/30/2000 10,443 10,105
5/31/2000 10,604 10,211
6/30/2000 10,213 9,744
7/31/2000 10,451 9,866
8/31/2000 11,183 10,415
9/30/2000 11,406 10,510
10/31/2000 11,710 10,769
11/30/2000 11,229 10,370
12/31/2000 11,880 10,889
1/31/2001 11,886 10,931
2/28/2001 11,481 10,628
3/31/2001 11,172 10,252
4/30/2001 11,719 10,755
5/31/2001 11,930 10,997
6/30/2001 11,624 10,753
Top Ten Holdings (as of June 30, 2001)
------------------------------------------------------------------------------
--
% of six months ago
investments % of investments
Exxon Mobil Corp. 5.8% N/A
Citigroup, Inc. 4.7% 1.1%
JP Morgan Chase & Co. 4.1% N/A
Verizon Communications 4.1% N/A
Washington Mutual, Inc. 3.6% N/A
Federal National Mortgage Assoc. 2.3% 0.5%
Chevron Corp. 2.2% 0.3%
MBIA, Inc. 2.1% N/A
US Bancorp 2.1% N/A
Proctor & Gamble Co. 1.8% N/A
Average Annual Total Returns*
------------------------------------------------------------------------------
Large/Mid Cap Russell 1000 MorningStar
Value Fund Value Index Peer Group+
------------- --------------- -----------
YTD** -2.22% -1.25% 2.24%
1 Year 13.66 10.35 16.80
Since Inception (8/31/99) 8.50 4.04 N/A
Top Ten Sectors (as of June 30, 2001)
------------------------------------------------------------------------------
--
% of & of
investments investments
Financial 30.4% Consumer Cyclical 6.6%
Energy 10.6% Health Care 6.2%
Technology 9.9% Capitol Equipment 6.1%
Utility 9.7% Retail 4.8%
Consumer Staple 7.1% Basic Material 4.4%
* Total returns are for the period ended June 30, 2001. Returns
represent past performance, assume reinvestment of all distributions
and are not indicative of future performance. "Results may have been
achieved during market conditions or pursuing performance
opportunities, including investment in initial public offerings,
that may not continue to occur in the future." Investment returns
and principal value of fund shares will fluctuate so that shares,
when redeemed, may be worth more or less than their original cost.
Small-company investing entails special risks as outlined in the
prospectus. The performance of the fund on this page is reported net
of Trust level charges (i.e. investment management fees and
operating expenses). It does not reflect expense and charges of the
applicable separate accounts and variable products, all of which
vary to a considerable extent and are described in your product
prospectus.
** Year-to-date total returns not annualized.
+ Source: MorningStar, Inc. Data as of 6/30/01. Although gathered from
reliable sources, data completeness and accuracy cannot be
guaranteed. Represents an average annual total return for all
variable annuity and life sub-accounts within the Morningstar
variable universe having a 50% weighting of the Large Cap Value
category and a 50% weighting of the Mid Cap Value category.
11
Inception: May 1, 1996
Large Mid Cap Value II (formerly Mid Cap Value Fund)
Wellington Management Company, LLP D. Chu/L. Gabriel
Effective January 1, 2001 Wellington Management Company, LLP assumed management
of the Fund.
During the second quarter, the John Hancock Large/Mid Cap Value Fund advanced
4.1%, slightly underperforming the Fund's benchmark, the Russell 1000 Value
Index, which increased by 4.9%.
While growth outperformed value for the quarter, value was the relative winner
for the one-year period ending June 30, 2001 as the Russell 1000 Value Index
(10%) outperformed the Russell 1000 Growth Index (-36%).
The Fund's top-performing sector during the quarter was the financials sector
due to strong stock selection. Citigroup posted strong returns as the banking
sector benefited from continued rate cuts and a steepening yield curve.
Conversely, the health care and utility sectors detracted from performance.
Some of the Fund's largest contributors through stock selection were Verizon,
which was a strong performer in the telecommunications sector, and AT&T Liberty
Media, which rebounded after a favorable tax ruling regarding AT&T's
divestiture was announced.
We anticipate improving conditions in the second half of this year, setting
the stage for a stronger economy in 2002. This recovery will begin as a result
of positive fiscal and monetary stimulus and will be fueled by lower than
expected inflation, a stronger consumer, and rising corporate profits. In this
environment our outlook for large cap value stocks remains favorable.
As we begin the second half of the year, we will continue to combine our
global industry analysts' "best ideas" from bottom-up stock selection within
the large-cap value universe. Going forward, we continue to believe that broad
diversification across sectors is a central tenet of the investment strategy.
By closely aligning sector weights to the index, sector risk is minimized,
while security selection is emphasized as the source of value added for
investors.
[GRAPH]
Historical Fund Return
Large Mid Cap Russell Mid Cap
Date Value II FUND Value Index
---- ------------- ---------------
5/1/1996 10,000 10,000
5/31/1996 10,000 10,095
6/30/1996 9,850 10,106
9,339 9,625
9,791 10,029
10,261 10,397
10,448 10,671
11,334 11,341
Dec-96 11,336 11,293
11,973 11,648
11,930 11,845
11,584 11,485
11,914 11,774
12,959 12,469
6/30/1997 13,097 12,931
14,335 13,891
14,543 13,728
15,331 14,580
14,682 14,136
14,879 14,613
Dec-97 14,993 15,172
14,889 14,878
15,940 15,872
16,546 16,689
16,441 16,596
15,666 16,207
6/30/1998 15,099 16,259
13,985 15,435
11,524 13,265
11,885 14,038
12,713 14,948
13,014 15,473
Dec-98 13,295 15,943
13,066 15,571
12,708 15,229
12,768 15,447
14,040 16,909
14,195 16,980
6/30/1999 14,758 17,174
14,302 16,745
13,403 16,165
12,771 15,347
12,843 15,800
12,841 15,511
Dec-99 14,029 15,927
13,437 14,974
13,786 14,348
15,210 16,087
14,541 16,152
14,839 16,429
6/30/2000 14,832 15,817
15,688 16,187
16,508 17,179
16,960 17,344
17,160 17,673
16,550 17,444
Dec-00 18,010 18,982
Jan-01 17,975 19,056
Feb-01 17,369 18,527
Mar-01 16,910 17,873
Apr-01 17,767 18,748
May-01 18,100 19,170
6/30/2001 17,640 18,745
Top Ten Holdings (as of June 30, 2001)
-------------------------------------------------------------------------------
% of six months ago
investments % of investments
Exxon Mobil Corp. 5.7% N/A
Citigroup, Inc. 5.1% N/A
JP Morgan Chase & Co. 4.0% N/A
Washington Mutual, Inc. 4.0% N/A
Verizon Communications 3.9% N/A
Federal National Mortgage Assoc. 2.3% N/A
Chevron Corp. 2.1% N/A
US Bancorp 2.1% N/A
MBIA, Inc. 2.0% N/A
R.J. Reynolds Tobacco Holdings, Inc. 1.8% N/A
Average Annual Total Returns*
-------------------------------------------------------------------------------
Large Mid Cap Russell Mid Cap MorningStar
Value II Fund Value Index Peer Group+
------------- --------------- -----------
YTD** -2.06% -1.25% 2.24%
1 Year 18.93 18.51 21.26
3 Years 5.32 4.86 6.03
5 Years 12.36 13.15 11.83
Since Inception (5/1/96) 12.15 10.49 N/A
Top Ten Sectors (as of June 30, 2001)
-------------------------------------------------------------------------------
% of % of
investments investments
Financial 31.0% Consumer Cyclical 7.1%
Energy 10.4% Health Care 6.1%
Technology 9.7% Capitol Equipment 5.9%
Utility 9.0% Retail 4.7%
Consumer Staple 7.5% Basic Material 4.3%
* Total returns are for the period ended June 30, 2001. Returns
represent past performance, assume reinvestment of all distributions
and are not indicative of future performance. "Results may have been
achieved during market conditions or pursuing performance
opportunities, including investment in initial public offerings,
that may not continue to occur in the future." Investment returns
and principal value of fund shares will fluctuate so that shares,
when redeemed, may be worth more or less than their original cost.
The performance of the fund on this page is reported net of Trust
level charges (i.e. investment management fees and operating
expenses). It does not reflect expense and charges of the applicable
separate accounts and variable products, all of which vary to a
considerable extent and are described in your product prospectus.
** Year-to-date total returns not annualized.
+ Source: MorningStar, Inc. Data as of 6/30/01. Although gathered from
reliable sources, data completeness and accuracy cannot be
guaranteed. Represents an average annual total return for all
variable annuity and life sub-accounts within the Morningstar
variable universe having a Mid Cap Value investment category.
12
Inception: August 31, 1999
Fundamental Growth Fund
Putnam Investments Eric M. Wetlaufer
The Fundamental Growth Fund underperformed the Russell Mid Cap Growth Index,
returning -21.20% (net) versus -12.97%, respectively, for the six-month
period.
In the first quarter of 2001, the Fund underperformed due to weak results in
technology, as dismal returns in software (Tibco, Webmethods), electronic
components (PMC Sierra, Qlogic, Finisar), and semiconductor capital equipment
(KLA Tencor, LAM Research) detracted significantly in this vital sector.
Health care also hindered performance due to weak holdings in biotech
(Immunex) and drug delivery (Inhale Therapeutic, Sepracor). Stronger returns
in utilities (Calpine, Mirant), financials (M&T Bank, Investment Technology
Group, Ace Limited, XL Capital), and energy (Devon Energy, Murphy Oil, Global
Marine, Transocean Sedco Forex) contributed modestly to performance.
In the second quarter, ongoing weakness in technology constrained
performance, especially in services (Convergys, Symbol Tech) and storage
devices (Network Appliance)--despite strong returns in health care (Gilead
Sciences, Protein Design Labs, IVAX, Andrx), communications services (Research
in Motion, Telephone and Data Systems), and consumer staples (Krispy Kreme).
We believe that the current environment of economic uncertainty will continue
to pressure rapidly growing, high-quality growth companies. While we do not
expect this condition to persist over the long term, we have taken steps to
focus on growth companies with a proven track record of growing profits even
during unsettled economic times.
Going forward, we are overweighting financial services (regional banks,
credit cards) that should benefit from Fed rate cuts and energy (energy
services, oil/gas producers), which should benefit from higher oil prices.
While underweighting the technology and consumer staples sectors, within those
areas we will focus on software and services, and restaurants and commercial
services, respectively.
[GRAPH]
Historical Fund Return
$10,000
Investment made 8/31/99
(Fund Inception Date)
Fundamental Russell Mid Cap
Date Growth Fund Growth Index
---- --------------- ------------
8/31/1999 10,000 10,000
9/30/1999 10,000 9,915
10/31/1999 10,836 10,681
11/30/1999 12,529 11,788
12/31/1999 15,457 13,829
1/31/2000 15,972 13,826
2/29/2000 22,030 16,732
3/31/2000 18,801 16,749
4/30/2000 16,532 15,122
5/31/2000 14,461 14,020
6/30/2000 18,224 15,507
7/31/2000 17,402 14,526
8/31/2000 18,979 16,716
9/30/2000 18,947 15,899
10/31/2000 17,462 14,811
11/30/2000 13,820 11,593
12/31/2000 14,985 12,204
1/31/2001 15,128 12,901
2/28/2001 12,555 10,669
3/31/2001 10,434 9,142
4/30/2001 12,127 10,666
5/31/2001 12,012 10,616
6/30/2001 11,809 10,621
Top Ten Holdings (as of June 30,2001)
------------------------------------------------------------------------------
% of six months ago
investments % of investments
Peregrine Systems, Inc. 3.1% 1.8%
Medimmune, Inc. 2.7% 2.5%
Harley-Davidson, Inc. 2.4% 1.6%
Starbucks Corp. 2.3% 1.7%
Ivax Corp. 2.3% 1.6%
Qlogic Corp. 2.1% 0.3%
Allergan, Inc. 2.0% 3.5%
Symbol Technologies, Inc. 2.0% 2.0%
PerkinElmer, Inc. 1.8% 2.2%
Convergys Corp. 1.8% 1.7%
Average Annual Total Returns*
------------------------------------------------------------------------------
Fundamental Russell Mid Cap/TM/ MorningStar
Growth Fund Growth Index Peer Group+
----------- ------------------- -----------
YTD** -21.20% -12.97% -13.88%
1 Year -35.19 -31.51 -26.53
Since Inception (8/31/99) 9.51 3.34 N/A
Top Ten Sectors (as of June 30, 2001)
------------------------------------------------------------------------------
% of % of
Investments Investments
Technology 30.0% Consumer Cyclical 6.8%
Health Care 21.0% Retail 6.1%
Energy 10.4% Utility 4.0%
Financial 9.9% Consumer Staple 1.4%
Capital Equipment 6.9%
* Total returns are for the period ended June 30, 2001. Returns
represent past performance, assume reinvestment of all distributions
and are not indicative of future performance. "Results may have been
achieved during market conditions or pursuing performance
opportunities, including investment in initial public offerings,
that may not continue to occur in the future." Investment returns
and principal value of fund shares will fluctuate so that shares,
when redeemed, may be worth more or less than their original cost.
Small-company investing entails special risks as outlined in the
prospectus. The performance of the fund on this page is reported net
of Trust level charges (i.e. investment management fees and
operating expenses). It does not reflect expense and charges of the
applicable separate accounts and variable products, all of which
vary to a considerable extent and are described in your product
prospectus.
** Year-to-date total returns not annualized.
+ Source: MorningStar, Inc. Data as of 6/30/01. Although gathered from
reliable sources, data completeness and accuracy cannot be
guaranteed. Represents an average annual total return for all
variable annuity and life sub-accounts within the Morningstar
variable universe having a Mid Cap Growth investment category.
13
Inception: August 31, 1999
Mid Cap Blend Fund
Independence Investment LLC Coreen Kraysler
Mid cap stocks were strong during the second quarter, outperforming their
larger cap counterparts. The best performing industries were technology,
health care and financials, while energy and utility stocks declined. During
this period your portfolio slightly underperformed its benchmark due to
overweight positions in the poorly performing energy and utility sectors.
With the pace of earnings decline appearing to slow, interest in technology
stocks was rekindled, sparked by positive comments from Intel. As a result,
holdings in Qlogic, Intuit, Brocade Communications and Concord EFS
outperformed the market. After a strong showing early in the quarter, we
eliminated holdings in Sanmina and Brocade.
The news was also positive for financial stocks. Driven by lower interest
rates, increased consolidation activity and more clarity on the estate tax
issue, life insurance holdings such as Lincoln National were particularly
strong. St. Paul increased as property & casualty insurance pricing continued
to accelerate, and rebounding technology stocks helped shares of Stillwell
Financial, parent of Janus, to recover.
Health care stocks were another bright spot in the market. Trigon Healthcare,
for example, increased substantially after raising earnings guidance.
Laboratory Corp of America added value as investors reacted positively to the
company's mix shift toward higher margin products, and King Pharmaceuticals
performed well due to strong prescription growth in its hypertension drug.
However, biotech names, such as Waters, fell due to decelerating sales
momentum.
Utility stocks were also punished as Senator Jeffords' stunning shift in
allegiance away from the Republican party caused heightened concerns regarding
the potential for increased regulation and price caps. As a result, shares in
power producers and energy merchants such as Calpine, Reliant and Utilicorp
declined sharply. We believe that regulatory fears are overblown and that
these stocks are oversold, especially given President Bush's strong support of
free markets.
[GRAPH]
Historical Fund Return
$10,000
Investment made 8/31/99
(Fund Inception Date)
Date Mid Cap Blend Fund Russell Mid Cap Index
---- ------------------ ---------------------
8/31/1999 10,000 10,000
9/30/1999 9,728 9,648
10/29/1999 10,180 10,105
11/30/1999 10,522 10,396
12/31/1999 11,152 11,311
1/31/2000 10,738 10,937
2/29/2000 11,483 11,778
3/31/2000 12,644 12,453
4/28/2000 12,618 11,864
5/31/2000 12,360 11,549
6/30/2000 12,609 11,891
7/31/2000 12,435 11,758
8/31/2000 13,787 12,884
9/30/2000 13,426 12,701
10/31/2000 13,610 12,506
11/30/2000 12,235 11,380
12/31/2000 13,224 12,246
1/31/2001 13,450 12,444
2/28/2001 12,825 11,686
3/31/2001 12,054 10,961
4/30/2001 13,210 11,898
5/31/2001 13,385 12,120
6/30/2001 13,158 12,006
Top Ten Holdings (as of June 30, 2001)
------------------------------------------------------------------------------
% of six months ago
investments % of investments
Allegheny Energy, Inc. 2.7% N/A
UtiliCorp United, Inc. 2.7% N/A
Trigon Healthcare, Inc. 2.7% N/A
Lexmark International Group, Inc. 2.2% N/A
BJ Services Co. 2.1% N/A
Lincoln National Corp. 1.8% N/A
St. Paul Cos., Inc. 1.7% 0.2%
Archer Daniels Midland Co. 1.7% N/A
Bed Bath & Beyond, Inc. 1.6% N/A
Mirant Corp. 1.5% N/A
Average Annual Total Returns*
------------------------------------------------------------------------------
Mid Cap Russell Mid MorningStar
Blend Fund Cap Index Peer Group+
---------- ----------- ----------
-
YTD** -0.50% -1.96% -2.83%
1 Year 4.35 0.96 -1.37
Since Inception (8/31/99) 16.15 10.49 N/A
Top Ten Sectors (as of June 30, 2001)
------------------------------------------------------------------------------
% of % of
investments investments
Technology 17.1% Energy 9.1%
Financial 16.3% Retail 6.9%
Consumer Cyclical 11.0% Basic Material 6.4%
Utility 9.8% Capital Equipment 6.2%
Health Care 9.2% Consumer Staple 4.2%
* Total returns are for the period ended June 30, 2001. Returns
represent past performance, assume reinvestment of all distributions
and are not indicative of future performance. "Results may have been
achieved during market conditions or pursuing performance
opportunities, including investment in initial public offerings,
that may not continue to occur in the future." Investment returns
and principal value of fund shares will fluctuate so that shares,
when redeemed, may be worth more or less than their original cost.
Small-company investing entails special risks as outlined in the
prospectus. The performance of the fund on this page is reported net
of Trust level charges (i.e. investment management fees and
operating expenses). It does not reflect expense and charges of the
applicable separate accounts and variable products, all of which
vary to a considerable extent and are described in your product
prospectus.
** Year-to-date total returns not annualized.
+ Source: MorningStar, Inc. Data as of 6/30/01. Although gathered from
reliable sources, data completeness and accuracy cannot be
guaranteed. Represents an average annual total return for all
variable annuity and life sub-accounts within the Morningstar
variable universe having a Mid Cap Blend investment category.
14
Inception: May 1, 1996
Mid Cap Growth Fund
Janus James Goff
The U.S. economy slowed substantially during the first half of 2001, sending
stocks lower after a year of lackluster performance. A sudden decrease in
capital investment after years of strong growth--particularly for high-
technology equipment--caused a sharp correction in some of the market's most
notable companies. Although a series of six interest rate cuts by the Federal
Reserve allowed markets to strengthen toward the end of the period,
disappointing earnings across the spectrum of companies proved too powerful,
and most major growth indices finished the period lower.
The Portfolio also gave ground against this difficult backdrop, and we
underperformed our benchmark, the Russell MidCap Growth Index. Our technology
and telecommunications positions, including Exodus Communications, Metromedia
Fiber and McLeod USA, declined as investors avoided firms with any degree of
exposure to the sectors hardest hit by the slowdown. We responded by
sharpening our focus within these areas to include mainly those companies that
can produce stable, recurring revenue; who are the beneficiaries of strong,
secular growth trends; and whose business models are predicated on creating
efficiencies for the customers they serve.
Meanwhile, several fast-growing firms defied the difficult environment to
trade higher, including TMP Worldwide, which extended its lead over other Web-
based job search firms during the period. The company continued to set new
records for site traffic and announced in June that it now had more than 11
million resumes in its database, while the average number of "hits" at its
flagship Monster.com job search site surpassed 860,000 per day. Other
standouts included cellular operator Western Wireless and biotech company
Andrx, both of which overcame a weakening economy to finish higher.
While we have been encouraged by the recent performance of some of our more
growth-oriented positions, significant economic uncertainty remains, and
market volatility seems likely to persist. Regardless, we will continue to
rely on our top-notch research to produce long-term results for our
shareholders.
[GRAPH]
Historical Fund Return
$10,000
Investment made 5/1/96
(Fund Inception Date)
Date Mid Cap Growth Fund Russell Mid Cap Growth Index
---- ------------------- ----------------------------
5/1/1996 10,000 10,000
5/31/1996 10,252 10,204
6/30/1996 10,020 9,896
7/31/1996 9,186 9,128
8/31/1996 9,881 9,622
9/30/1996 10,473 10,233
10/31/1996 10,325 10,113
11/30/1996 10,408 10,709
12/31/1996 10,269 10,529
1/31/1997 9,994 10,994
2/28/1997 9,827 10,752
3/31/1997 9,079 10,145
4/30/1997 9,186 10,393
5/31/1997 10,176 11,325
6/30/1997 10,693 11,638
7/31/1997 10,907 12,752
8/31/1997 10,950 12,627
9/30/1997 11,734 13,266
10/31/1997 11,371 12,601
11/30/1997 11,547 12,734
12/31/1997 11,980 12,900
1/31/1998 11,743 12,668
2/28/1998 12,728 13,859
3/31/1998 13,429 14,440
4/30/1998 13,656 14,636
5/31/1998 13,098 14,035
6/30/1998 14,211 14,432
7/31/1998 14,045 13,814
8/31/1998 11,448 11,177
9/30/1998 12,370 12,022
10/31/1998 13,332 12,907
11/30/1998 14,295 13,777
12/31/1998 16,660 15,204
1/31/1999 17,539 15,660
2/28/1999 16,892 14,894
3/31/1999 19,064 15,724
4/30/1999 20,313 16,441
5/31/1999 20,063 16,229
6/30/1999 21,164 17,362
7/31/1999 20,863 16,810
8/31/1999 21,977 16,635
9/30/1999 22,828 16,493
10/31/1999 26,427 17,768
11/30/1999 29,295 19,609
12/31/1999 36,370 23,003
1/31/2000 37,510 22,999
2/29/2000 44,729 27,833
3/31/2000 37,380 27,861
4/30/2000 32,525 25,156
5/31/2000 30,325 23,322
6/30/2000 34,862 25,796
7/31/2000 32,535 24,163
8/31/2000 36,543 27,807
9/30/2000 32,968 26,447
10/31/2000 30,025 24,638
11/30/2000 21,906 19,284
12/31/2000 23,328 20,301
1/31/2001 24,488 21,460
2/28/2001 18,721 17,747
3/31/2001 15,606 15,208
4/30/2001 18,495 17,743
5/31/2001 18,248 17,659
6/30/2001 14,552 17,668
Top Ten holdings (as of June 30, 2001)
------------------------------------------------------------------------------
-
% of six months ago
investments % of investments
Western Wireless Corp. 3.2% 4.6%
Walgreen Co. 1.2% N/A
Vitesse Semiconductor Corp. 1.9% 4.5%
Valero Energy Corp. 0.9% N/A
University of Phoenix Online 1.7% N/A
Universal Compression Holdings 1.2% N/A
TriQuint Semiconductor, Inc. 1.1% 3.0%
TMP Worldwide, Inc. 3.2% 4.2%
Sonus Networks, Inc. 2.3% N/A
Sepracor, Inc. 1.9% 2.7%
Average Annual Total Returns*
------------------------------------------------------------------------------
-
Mid Cap Russell Mid Cap MorningStar
Growth Fund Growth(TM) Index Peer Group+
------------ ---------------- ----------
-
YTD** -24.99% -12.97% -13.88%
1 Year -49.81 -31.51 -26.53
3 Years 7.18 6.98 7.76
5 Years 11.80 12.29 11.09
Since Inception (5/1/96) 11.44 11.65 N/A
Top Ten Sectors (as of June 30, 2001)
------------------------------------------------------------------------------
% of % of
investments investments
Technology 27.6% Financial 6.1%
Health Care 26.9% Utility 2.8%
Capital Equipment 13.6% Retail 2.6%
Energy 10.0% Transportation 2.5%
Consumer Cyclical 11.0%
* Total returns are for the period ended June 30, 2001. Returns
represents past performance, assume reinvestment of all
distributions and are not indicative of future performance. "Results
may have been achieved during market conditions or pursuing
performance opportunities, including investment in initial public
offerings, that may not continue to occur in the future." Investment
returns and principal value of fund shares will fluctuate so that
shares, when redeemed, may be worth more or less than their original
cost. The performance of the fund on this page is reported net of
Trust level charges (i.e. investment management fees and operating
expenses). It does not reflect expense and charges of the applicable
separate accounts and variable products, all of which vary to a
considerable extent and are described in your product prospectus.
** Year-to-date total returns not annualized.
+ Source: MorningStar, Inc. Data as of 6/30/01. Although gathered from
reliable sources, data completeness and accuracy cannot be
guaranteed. Represents an average annual total return for all
variable annuity and life sub-accounts within the MorningStar
variable universe having a Mid Cap Growth investment category.
15
Inception: August 31, 1999
Small Cap Value Fund (formerly Small/Mid Cap Value Fund)
T. Rowe Price Associates, Inc. Preston G. Atney
Effective January 1, 2001, T. Rowe Price Associates, Inc. has assumed
management of the Fund.
The broad stock market declined in the first half of 2001, but small-cap
value stocks continued to shine. Although small-cap growth stocks performed
slightly better than small-cap value stocks in the second quarter, both
generated positive returns. Your fund's 18.25% six-month return, outperformed
the benchmark Russell 2000 Value Index's 12.72% advance.
The Federal Reserve cut interest rates six times during the six-month period,
but the last move (in late June) was just a quarter point. The Fed's five
prior reductions in the federal funds target rate, beginning January 3, had
been in half-point increments. Economic news, including GDP growth, employment
data, and consumer confidence, continued to worsen during the period.
The portfolio's 10 largest stocks generated a mixed performance but were
mostly positive. Brown and Brown, the fund's largest individual holding (3.7%
of assets), climbed 20% over the last six months. Woodward Governor climbed
87%, and Bone Care International advanced 53%. The largest detractors among
our 10 top stocks were XTO Energy, down 22%, and Insituform Technologies, off
9%. We are 96% invested in equities and our three largest sector commitments,
building and real estate, business services, and insurance, account for almost
one-fourth of assets.
Small-cap stocks tend to provide better returns than large-caps as the
economy emerges from a recessionary period. That's in part because as investor
confidence recovers it leads to a willingness to take on the greater risk
associated with small-cap stock investments. Note: the U.S. economy has not
experienced two consecutive quarters of declining GDP, the technical
definition of a recession, but many recession-like conditions exist today.
We are pleased to see that the stock market has rediscovered that valuation
does matter. We will continue to employ our fundamentals-driven bottom-up
stock selection process and remain bullish on the environment for small-cap
value stock investing.
[GRAPH]
Historical Fund Return
$10,000
Investment made 8/31/99
(Fund Inception Date)
Date Small Cap Value Fund Russell 2500 Value Index
---- -------------------- ------------------------
8/31/1999 10,000 10,000
9/30/1999 9,559 9,685
10/31/1999 9,441 9,695
11/30/1999 9,941 9,748
12/31/1999 10,507 10,080
1/31/2000 9,755 9,661
2/29/2000 9,774 9,828
3/31/2000 11,917 10,552
4/30/2000 12,264 10,547
5/31/2000 12,274 10,528
6/30/2000 12,413 10,488
7/31/2000 12,367 10,716
8/31/2000 13,855 11,277
9/30/2000 13,470 11,210
10/31/2000 13,913 11,203
11/30/2000 12,934 11,061
12/31/2000 14,100 12,176
1/31/2001 14,698 12,512
2/28/2001 14,806 12,494
3/31/2001 14,643 12,294
4/30/2001 16,012 12,864
5/31/2001 16,429 13,194
6/30/2001 16,673 13,725
Top Ten Holdings (as of June 30, 2001)
------------------------------------------------------------------------------
% of six months ago
investments % of investments
Brown & Brown 3.9% N/A
Insituform Technologies, Inc. 3.3% N/A
XTO Energy, Inc. 2.2% N/A
Ruby Tuesday, Inc. 2.2% N/A
Electro Rent Corp. 2.1% N/A
Matthews International Corp. 2.0% N/A
Woodward Governor Company 1.8% N/A
Bone Care International, Inc. 1.8% N/A
Texas Regional Bancshares, Inc. 1.8% N/A
Triad Guaranty, Inc. 1.7% N/A
Average Annual Total Returns*
------------------------------------------------------------------------------
Small Cap Russell 2500 MorningStar
Value Fund Value Index Peer Group+
---------- ------------ -----------
YTD** 18.25% 12.72% 13.35%
1 Year 34.32 30.86 29.10
Since Inception (8/31/99) 32.17 18.85 N/A
Top Ten Sectors (as of June 30, 2001)
------------------------------------------------------------------------------
% of % of
investments investments
Financial 28.7% Technology 7.9%
Capital Equipment 18.7% Basic Material 4.1%
Energy 12.9% Health Care 4.0%
Consumer Cyclical 8.6% Utility 3.8%
Retail 8.0% Transportation 2.4%
* Total returns are for the period ended June 30, 2001. Returns
represent past performance, assume reinvestment of all distributions
and are not indicative of future performance. "Results may have been
achieved during market conditions or pursuing performance
opportunities, including investment in initial public offerings, that
may not continue to occur in the future." Investment returns and
principal value of fund shares will fluctuate so that shares, when
redeemed, may be worth more or less than their original cost. Small-
company investing entails special risks as outlined in the
prospectus. The performance of the fund on this page is reported net
of Trust level charges (i.e. investment management fees and operating
expenses). It does not reflect expense and charges of the applicable
separate accounts and variable products, all of which vary to a
considerable extent and are described in your product prospectus.
** Year-to-date total returns not annualized.
+ Source: MorningStar, Inc. Data as of 6/30/01. Although gathered from
reliable sources, data completeness and accuracy cannot be
guaranteed. Represents an average annual total return for all
variable annuity and life sub-accounts within the Morningstar
variable universe having a 50% weighting of the Mid Cap Value
investment category and a 50% weighting of the Small Cap Value
category prior to 1/01; and Small Cap Value investment style.
16
Inception: May 1, 1998
Small/Mid Cap CORESM Fund
Goldman Sachs Asset Management Jones/Brown/Pinter
During the second quarter of 2001 the Small/Mid Cap CORE Fund (the "Fund")
generated a total cumulative return of 12.20%, versus the 13.70% total
cumulative return of the Fund's benchmark, the Russell 2500 Index (the
"Index").
The Fund's strategy is a well-defined investment process that has
historically provided consistent, risk-managed performance. The
diversification of our models typically adds value because, when one theme
doesn't work, others usually do. For example, when Momentum stocks
underperform, Value stocks typically advance more than average.
Of the CORE themes, Momentum recovered after a very difficult first quarter
to drive positive performance in the second quarter. The theme benefited from
the market's more typical patterns of behavior, following a spate of panic
selling and frenzied buying that characterized the end of 2000 and beginning
of 2001. Value was a positive contributor overall, its fourth positive quarter
in a row. Profitability also boosted results for the second consecutive
quarter, while Earnings Quality and Research were down for the period.
Looking ahead, we continue to believe that cheaper stocks should outpace more
expensive ones and good momentum stocks should do better than poor momentum
stocks. We also expect companies that are favored by fundamental research
analysts and that have strong profit margins and sustainable earnings to
outperform their peers. As such, we anticipate remaining fully invested and
expect that the value we add over time will be due to stock selection, as
opposed to sector or size allocations.
Footnotes
Total return figures represent past performance and do not indicate future
results which will vary. The Fund's performance reflects the reinvestment of
dividends and distributions. The Russell 2500 Index is unmanaged and does not
include any fees or expenses. Stocks of smaller companies are often more
volatile and present greater risks than stocks of larger companies. At times
the Fund may be unable to sell the securities it holds without a substantial
drop in price, if at all. CORESM is a service mark of Goldman, Sachs & Co.
Performance returns for the VST Small/Mid Cap CORE Fund (the "Fund") are
estimated and supplied as a client accommodation for internal use only within
John Hancock Funds Group. The Fund is subadvised/managed by Goldman Sachs
Asset Management ("GSAM"). As a subadviser, we do not normally perform
administration functions, such as performance calculations. The NAV's,
distributions and expense ratios (which are calculated by the custodian--State
Street Bank) used to calculate total returns have not been independently
validated and approved by GSAM.
(Fund investment information on next page.)
17
Inception: May 1, 1998
Small/Mid Cap CORESM Fund
Goldman Sachs Asset Management Jones/Brown/Pinter
[GRAPH]
Historical Fund Return
$10,000
Investments made 5/1/98
(Fund Inception Date)
Date Small/Mid Cap Core (SM) Fund Russell 2500 Index
---- ---------------------------- ------------------
5/1/1998 10,000 10,000
5/31/1998 9,577 9,536
6/30/1998 9,721 9,547
7/31/1998 9,040 8,892
8/31/1998 7,377 7,215
9/30/1998 7,776 7,727
10/31/1998 7,960 8,149
11/30/1998 8,422 8,553
12/31/1998 9,019 9,071
1/31/1999 8,940 9,056
2/28/1999 8,305 8,461
3/31/1999 8,438 8,642
4/30/1999 9,172 9,415
5/31/1999 9,251 9,561
6/30/1999 9,810 10,058
7/31/1999 9,686 9,861
8/31/1999 9,347 9,553
9/30/1999 9,224 9,410
10/31/1999 9,430 9,616
11/30/1999 9,887 10,160
12/31/1999 10,871 11,262
1/31/2000 10,456 11,003
2/29/2000 11,807 12,592
3/31/2000 11,700 12,399
4/30/2000 11,257 11,732
5/31/2000 10,720 11,169
6/30/2000 11,414 11,903
7/31/2000 11,267 11,599
8/31/2000 12,208 12,598
9/30/2000 11,766 12,189
10/31/2000 11,467 11,855
11/30/2000 10,396 10,811
12/31/2000 11,375 11,742
1/31/2001 11,642 12,129
2/28/2001 10,940 11,347
3/31/2001 10,296 10,724
4/30/2001 11,153 11,671
5/31/2001 11,433 12,023
6/30/2001 11,546 12,193
Top Ten Holdings (as of June 30, 2001)
------------------------------------------------------------------------------
% of six months ago
investments % of investments
Affiliated Computer Services, Inc. 0.9% 0.1%
International Game Technology 0.9% N/A
Countrywide Credit Industries, Inc. 0.9% N/A
UtilCorp United, Inc. 0.8% 0.1%
Nationwide Financial Services 0.8% N/A
John Naveen Co. 0.8% 0.1%
Toro Co. 0.8% N/A
PPL Corp. 0.7% N/A
Bancwest Corp. 0.7% N/A
NVR, Inc. 0.7% 0.1%
Average Annual Total Returns*
------------------------------------------------------------------------------
Small/Mid Cap Russell 2500 MorningStar
Core(SM) Fund Index Peer Group+
------------- ------------ -----------
YTD** 1.51% 3.84% 1.25%
1 Year 1.16 2.44 1.02
3 Years 5.90 8.50 6.40
Since Inception (5/1/98) 4.65 6.46 N/A
Top Ten Sectors (as of June 30, 2001)
------------------------------------------------------------------------------
% of % of
investments investments
Financial 23.5% Energy 5.8%
Technology 16.4% Basic Material 5.4%
Capital Equipment 12.9% Utility 5.1%
Health Care 11.4% Consumer Staples 3.4%
Consumer Cyclical 11.0% Retail 3.3%
* Total returns are for the period ended June 30, 2001. Returns
represent past performance, assume reinvestment of all distributions
and are not indicative of future performance. "Results may have been
achieved during market conditions or pursuing performance
opportunities that may not continue to occur in the future."
Investment returns and principal value of fund shares will fluctuate
so that shares, when redeemed, may be worth more or less than their
original cost. Small-company investing entails special risks as
outlined in the prospectus. The performance of the fund on this page
is reported net of Trust level charges (i.e. investment management
fees and operating expenses). It does not reflect expense and charges
of the applicable separate accounts and variable products, all of
which vary to a considerable extent and are described in your product
prospectus.
** Year-to-date total returns not annualized.
+ Source: MorningStar, Inc. Data as of 6/30/01. Although gathered from
reliable sources, data completeness and accuracy cannot be
guaranteed. Represents an average annual total return for the sub-
accounts of all variable annuity and life products within the
Morningstar variable universe. The peer group represents a 50%
weighting of the Mid Cap Blend category and a 50% weighting of the
Small Cap Blend style for periods since May 1999.
18
Inception: May 1, 1994
Small/Mid Cap Growth Fund
Wellington Management Company, LLP J. Harrington/F. Boggan
During the quarter, the Fund increased by 14.1% compared to a 21.3% return of
the Russell 2500 Growth Index. For the one-year period ended June 30, 2001,
the Fund gained 2.41%, considerably ahead of the -23.98% return of the Russell
2500 Growth Index.
The Fund benefited from its underweight position in the financials area. We
typically underweight the utilities sector versus our benchmark, since we
typically cannot find companies with the minimal growth metrics that we
require in the Fund. This underweight contributed to our relative performance,
as utilities were an underperforming sector. Strong positive performances in
the health care and technology sectors also contributed to performance. On a
stock selection basis, we underperformed the index in the technology area, as
it was the more aggressive names that advanced the most in the quarter. We
continue to focus the Fund on the more consistent, predictable growers in the
technology area, and those companies underperformed for the quarter.
Some of the recent stock successes include United Rentals Inc, which was the
top performing stock in the industrial and commercial sector, Edward
Lifesciences which is a leader in global marketing research and analysis for
the healthcare industry, and Nova Corp, which was the strongest contributor to
performance in the information technology sector.
The U.S. stock market continued to struggle during the quarter. Yet
aggressive Federal Reserve easing, a tax cut, and declining energy prices
appear to be having a positive impact. We believe that by year-end, there
should be signs of improved economic conditions that should lead to better
performance by the U.S. equity markets. As economic growth picks up and the
various fiscal and monetary actions begin to have their intended effect, we
are confident that the Fund is well-positioned to benefit in the upcoming
environment.
[GRAPH]
Historical Fund Return
$10,000
Investment made 5/1/94
(Fund Inception Date)
Date Small/Mid-Cap Growth Small/Mid Cap
Fund Growth Benchmark (1)
---- -------------------- --------------------
5/1/1994 10,000 10,000
5/31/1994 10,019 10,015
6/30/1994 10,043 9,584
7/31/1994 10,066 9,850
8/31/1994 10,359 10,437
9/30/1994 10,094 10,265
10/31/1994 10,263 10,442
11/30/1994 9,992 9,982
12/31/1994 10,056 10,122
1/31/1995 9,934 10,243
2/28/1995 10,283 10,788
3/31/1995 10,798 11,216
4/30/1995 11,069 11,310
5/31/1995 11,087 11,589
6/30/1995 11,652 12,116
7/31/1995 12,564 12,878
8/31/1995 12,807 13,020
9/30/1995 12,807 13,310
10/31/1995 12,807 12,973
11/30/1995 13,635 13,553
12/31/1995 14,166 13,560
1/31/1996 14,661 13,800
2/29/1996 15,139 14,322
3/31/1996 15,478 14,435
4/30/1996 16,589 15,132
5/31/1996 17,049 15,441
6/30/1996 16,824 14,974
7/31/1996 15,143 13,812
8/31/1996 16,043 14,560
9/30/1996 17,003 15,484
10/31/1996 17,537 15,303
11/30/1996 18,068 16,204
12/31/1996 18,463 15,932
1/31/1997 18,489 16,636
2/28/1997 17,431 16,270
3/31/1997 16,396 15,351
4/30/1997 15,920 15,727
5/31/1997 17,082 17,136
6/30/1997 17,316 17,611
7/31/1997 18,679 19,296
8/31/1997 18,325 19,107
9/30/1997 19,712 20,074
10/31/1997 19,294 19,068
11/30/1997 18,845 19,268
12/31/1997 19,112 19,521
1/31/1998 18,774 19,169
2/28/1998 20,391 20,971
3/31/1998 21,403 21,850
4/30/1998 21,343 22,147
5/31/1998 20,372 21,237
6/30/1998 21,141 21,838
7/31/1998 19,979 20,903
8/31/1998 15,789 16,913
9/30/1998 16,600 18,192
10/31/1998 17,496 19,530
11/30/1998 18,251 20,847
12/31/1998 20,184 23,007
1/31/1999 20,333 23,697
2/28/1999 18,823 22,538
3/31/1999 20,070 23,793
4/30/1999 21,189 24,878
5/31/1999 21,364 25,135
6/30/1999 22,270 26,912
7/31/1999 21,743 26,363
8/31/1999 20,061 25,793
9/30/1999 19,419 25,979
10/31/1999 19,524 27,244
11/30/1999 19,720 30,461
12/31/1999 21,223 36,207
1/31/2000 20,478 36,004
2/29/2000 21,023 45,239
3/31/2000 22,727 41,687
4/30/2000 22,109 37,627
5/31/2000 21,679 34,278
6/30/2000 23,039 38,810
7/31/2000 22,862 35,628
8/31/2000 24,845 40,270
9/30/2000 24,232 37,664
10/31/2000 24,015 35,337
11/30/2000 21,835 28,601
12/31/2000 23,186 30,375
1/31/2001 24,182 32,343
2/28/2001 22,531 27,353
3/31/2001 20,679 24,327
4/30/2001 22,819 28,035
5/31/2001 23,182 28,848
6/30/2001 23,593 29,503
Top Ten Holdings (as of June 30, 2001)
------------------------------------------------------------------------------
% of six months ago
investments % of investments
Edwards Lifesciences Corp. 2.8% N/A
Trigon Healthcare, Inc. 2.5% N/A
Reinsurance Group of America 2.2% 2.4%
Legg Mason, Inc. 2.2% N/A
Legg Mason, Inc. 2.2% N/A
Investment Technology Group, Inc. 2.2% 0.6%
Herman Miller, Inc. 2.1% 2.0%
Health Management Associates, Inc. 2.1% N/A
Becton, Dickinson & Co. 2.1% N/A
Pepsi Bottling Group, Inc. 2.0% N/A
Average Annual Total Returns*
------------------------------------------------------------------------------
Small/Mid Small/Mid Cap MorningStar
Cap Growth Fund Growth Benchmark (1) Peer Group+
--------------- -------------------- -----------
YTD** 1.76% -2.87% -10.42
1 Year 2.41 -23.98 -24.64
3 Years 3.73 10.55 10.94
5 Years 7.00 14.53 13.21
Since Inception (5/1/94) 12.17 16.30 N/A
Top Ten Sectors (as of June 30, 2001)
------------------------------------------------------------------------------
% of % of
investments investments
Technology 27.3% Energy 6.8%
Health Care 21.7% Capital Equipment 5.8%
Financial 12.1% Utility 2.7%
Retail 8.6% Basic Material 2.3%
Consumer Cyclical 8.5% Consumer Staple 2.0%
(1) The Small/Mid Cap Growth Fund benchmark is the Russell Mid Cap
Growth Index from May 1994 to April 1999 and the Russell 2500
Growth Index May 1999-present.
* Total returns are for the period ended June 30, 2001 returns
represent past performance, assume reinvestment of all
distributions, and are not indicative of future performance.
"Results may have been achieved during market conditions or pursuing
performance opportunities, including investment in initial public
offerings, that may not continue to occur in the future." Investment
returns and principal value of fund shares will fluctuate that
shares, when redeemed, may be worth more or less than their original
cost. Small company investing entails special risks as discussed in
the prospectus. The performance of the fund on this page is reported
net of Trust level charges (i.e. investment management fees and
operating expenses). It does not reflect expense and charges of the
applicable separate accounts and variable products, all of which
vary to a considerable extent and are described in your product
prospectus.
** Year-to-date total returns not annualized.
+ Source: MorningStar, Inc. Data as of 6/30/01. Although gathered from
reliable sources, data completeness and accuracy cannot be
guaranteed. Represents an average annual total return for the sub-
accounts of all variable annuity and life products within the
Morningstar variable universe having a Mid Cap Growth and a Small-
Cap Growth investment style. The peer group represents a 50%
weighting of the Mid Cap Growth category and a 50% weighting of the
Small Cap Growth category. Prior to May 1999, the peer group
represents the Mid Cap Growth investment category.
19
Inception: May 1, 1996
Small Cap Equity Fund
Capital Guardian Trust Company Management Team
For the quarter ended June 30, 2001, the VST Small Cap Equity Fund returned
17.65%, beating the Russell 2000 Index, which returned 14.41%
Given the portfolio's overweight in technology, the April bounceback was
helpful to returns, and we were able to trim some positions on strength. Stock
selection, especially in the areas of media, software, biotechnology, and
Internet, also contributed. As the market has become more discriminating we
have pared back the list of portfolio holdings significantly, concentrating on
higher conviction names within each sector with a focus on market-leading
companies attractively valued within the context of their industries.
The upcoming tax refunds and the Federal Reserve's easy monetary policy
should provide the U.S. economy with a shot in the arm, though timing a
recovery will be hard to call. Lower interest rates and increased liquidity
should benefit small-cap stocks as well as large caps, and relatively low
valuations should also help small-cap stocks to hold up. With recent economic
news still indicating some weakness, however, we may have opportunities to
purchase cyclical stocks at lower prices in the near future. With the Russell
2000 Index rebalancing effective as of July 2, the technology sector will
increase from 10.3% to 15.8%, and we may see heightened volatility in the
index.
[GRAPH]
Historical Fund Return
$10,000
Investment made 5/1/96
(Fund Inception Date)
Date Small Cap Equity Fund Small Cap Equity Benchmark(1)
---- --------------------- -----------------------------
5/1/1996 10,000 10,000
5/31/1996 10,232 10,324
6/30/1996 10,126 10,051
7/31/1996 9,630 9,346
8/31/1996 10,161 9,820
9/30/1996 10,450 10,146
10/31/1996 10,340 10,126
11/30/1996 10,678 10,607
12/31/1996 11,033 10,918
1/31/1997 11,115 11,111
2/28/1997 10,927 11,029
3/31/1997 10,594 10,621
4/30/1997 10,831 10,714
5/31/1997 11,818 11,736
6/30/1997 12,513 12,284
7/31/1997 13,256 12,828
8/31/1997 13,389 13,077
9/30/1997 14,242 13,989
10/31/1997 13,761 13,491
11/30/1997 13,863 13,521
12/31/1997 13,863 13,869
1/31/1998 13,521 13,634
2/28/1998 14,533 14,550
3/31/1998 15,138 15,146
4/30/1998 15,222 15,224
5/31/1998 14,459 14,545
6/30/1998 14,458 14,519
7/31/1998 13,270 13,363
8/31/1998 10,902 11,019
9/30/1998 11,414 11,762
10/31/1998 11,733 12,176
11/30/1998 12,320 12,660
12/31/1998 13,037 13,250
1/31/1999 12,716 13,187
2/28/1999 11,876 12,204
3/31/1999 11,826 12,249
4/30/1999 12,619 13,356
5/31/1999 12,798 13,659
6/30/1999 13,630 14,215
7/31/1999 13,444 13,851
8/31/1999 12,849 13,341
9/30/1999 12,620 13,075
10/31/1999 12,366 12,813
11/30/1999 12,267 12,880
12/31/1999 12,590 13,275
1/31/2000 11,854 12,927
2/29/2000 12,345 13,717
3/31/2000 12,574 13,782
4/30/2000 12,787 13,863
5/31/2000 12,670 13,651
6/30/2000 12,740 14,049
7/31/2000 13,003 14,517
8/31/2000 13,762 15,166
9/30/2000 13,774 15,080
10/31/2000 13,768 15,026
11/30/2000 10,732 13,484
12/31/2000 11,470 14,642
1/31/2001 13,023 15,405
2/28/2001 11,056 14,394
3/31/2001 10,142 13,691
4/30/2001 11,316 14,761
5/31/2001 11,655 15,124
6/30/2001 11,932 15,646
Top Ten Holdings (as of June 30, 2001)
------------------------------------------------------------------------------
% of six months ago
investments % of investments
Polaris Industries Inc. 1.8% N/A
Everest ReGroup, Ltd. 1.7% N/A
LTX Corp. 1.4% N/A
Dollar Tree Stores, Inc. 1.4% N/A
Advanced Energy Industries, Inc. 1.3% N/A
Electro Scientific Industries, Inc. 1.3% N/A
EMCORE Corp. 1.3% N/A
Werner Enterprises, Inc. 1.2% 0.2%
Pentair, Inc. 1.2% N/A
American Capital Strategies, Ltd. 1.1% N/A
Average Annual Total Returns*
------------------------------------------------------------------------------
Small Cap Small Cap Equity MorningStar
Equity Fund Benchmark (1) Peer Group+
----------- ---------------- -----------
YTD** 4.02% 6.86% 5.33%
1 Year -6.34 11.36 10.39
3 Years -6.20 2.52 4.57
5 Years 3.34 9.25 9.75
Since Inception (5/1/96) 3.48 9.05 N/A
Top Ten Sectors (as of June 30, 2001)
------------------------------------------------------------------------------
% of % of
investments investments
Technology 29.2% Retail 5.1%
Consumer Cyclical 17.8% Consumer Staple 3.5%
Financial 12.6% Transportation 3.2%
Health Care 11.4% Energy 2.2%
Capital Equipment 11.2% Basic Material 2.2%
(1) The Small Cap Equity Benchmark is 50% Russell 2000 and 50% Russell
2000 Value Index, May 1996 thru August 1999, the Russell 2000
Value, September 1999 thru October 2000, and the Russell 2000 Index
October 2000 to present.
* Total returns are for the period ended June 30, 2001. Returns
represent past performance, assume reinvestment of all distributions
and are not indicative of future performance. "Results may have been
achieved during market conditions or pursuing performance
opportunities, including investment in initial public offerings,
that may not continue to occur in the future". Investment returns
and principal value of fund shares will fluctuate so that shares,
when redeemed, may be worth more or less than their original cost.
Small-company investing entails special risks as outlined in the
prospectus. The performance of the fund on this page is reported net
of Trust level charges (i.e. investment management fees and
operating expenses). It does not reflect expense and charges of the
applicable separate accounts and variable products, all of which
vary to a considerable extent and are described in your product
prospectus.
** Year-to-date total returns not annualized.
+ Source: MorningStar, Inc. Data as of 6/30/01. Although gathered from
reliable sources, data completeness and accuracy cannot be
guaranteed. Represents an average annual total return for the sub-
accounts of all variable annuity and life products within the
Morningstar variable universe having a Small Cap Blend investment
category. Prior to November 2000, the peer group represents the
Small Cap Value investment category.
20
Inception: May 1, 1996
Small Cap Growth Fund
John Hancock Advisers, Inc. Bernice Behar
For the second quarter, the Small Cap Growth Variable Series Trust portfolio
returned 16.25% (net) while the Russell 2000 Growth Index gained 18.12%.
Several areas of the portfolio that helped performance include retailers,
healthcare services, and radio broadcasters. Consumer companies benefited from
a perception that lower interest rates would help the earnings of these
companies later this year. In health care, our emphasis on services continued
to contribute to performance. We favor the services segment for its reliable
earnings growth in this uncertain environment.
Alternatively, areas that detracted from performance include biotechnology
and energy. Our lack of exposure to biotechnology stocks hurt performance as
this group advanced sharply over the quarter. In addition, our relative
overweighting in energy was detrimental to performance as supplies of crude
oil and natural gas swelled unexpectedly in the latter half of the quarter,
slowing exploration and causing commodity prices to decline. However, we
expect demand for energy products to increase during the summer months and
look for the supply bulge to work itself out.
Aggressive easing of interest rates by the Fed has made us more optimistic
about the long-term prospects for the economy and the stock market. While we
expect to see volatility among growth stocks this summer, we are optimistic
that economic growth will pick up by year-end.
However, the jury is still out on when the technology and telecommunications
sectors will make a meaningful recovery. We are currently watching companies
within these areas for some stabilization in order patterns. When we see such
stabilization, we will be reasonably confident that the inventory glut here
has run its course. Until then, we are inclined to adopt a slightly less
defensive position than in the recent past, increasing the portfolio's
technology and telecommunications exposure on a very selective basis.
[GRAPH]
Historical Fund Return
$10,000
Investment made 5/1/96
(Fund Inception Date)
Date Small Cap Growth Fund Russell 2000 Growth Index
---- --------------------- -------------------------
5/01/1996 10,000 10,000
10,599 10,513
10,294 9,830
9,480 8,629
10,298 9,268
11,151 9,745
10,170 9,325
9,976 9,585
Dec-96 9,950 9,771
10,302 10,016
9,638 9,411
8,962 8,746
8,763 8,645
9,781 9,944
10,514 10,281
11,205 10,808
11,571 11,132
12,817 12,020
11,834 11,298
11,387 11,029
Dec-97 11,370 11,036
11,170 10,889
12,062 11,850
12,788 12,348
12,730 12,423
11,856 11,521
12,366 11,639
11,537 10,667
8,966 8,205
9,701 9,037
10,230 9,509
11,424 10,247
Dec-98 13,017 11,174
13,456 11,677
12,384 10,609
13,341 10,986
13,873 11,956
13,626 11,975
14,903 12,606
15,022 12,217
14,920 11,760
15,236 11,987
16,337 12,294
18,479 13,593
Dec-99 22,179 15,988
21,633 15,840
27,928 19,526
25,551 17,474
21,939 15,709
19,338 14,333
23,398 16,184
21,153 14,797
23,673 16,354
22,478 15,541
20,010 14,279
16,003 11,686
Dec-00 17,425 12,401
17,633 13,405
15,433 11,567
13,803 10,515
15,699 11,803
15,756 12,076
6/30/2001 16,043 12,406
Top Ten Holding (as of June 30, 2001)
------------------------------------------------------------------------------
% of six months ago
investments % of investments
Corporate Executive Board Co. 1.4% 0.7%
Microsemi Corp. 1.4% N/A
Renal Care Group, Inc. 1.3% N/A
Education Management Corp. 1.3% N/A
Accredo Health, Inc. 1.2% N/A
NPS Pharmaceuticals, Inc. 1.2% N/A
Tweeter Home Entertainment Group, Inc. 1.2% N/A
Radio One, Inc. 1.2% 0.7%
Wilson Greatbatch Technologies, Inc. 1.2% N/A
Columbia Sportswear Co. 1.2% N/A
Average Annual Total Returns*
------------------------------------------------------------------------------
Small Cap Russell 2000(R) MorningStar
Growth Fund Growth Index Peer Group+
----------- --------------- -----------
YTD** -7.94% 0.04% -6.95%
1 Year -31.44 -23.35 -22.74%
3 Years 9.06 2.15 10.66
5 Years 9.28 4.77 9.78
Since Inception (5/1/96) 9.58 4.26 N/A
Top Ten Sectors (as of June 30, 2001)
------------------------------------------------------------------------------
% of % of
Investments Investments
Technology 23.8% Energy 10.7%
Health Care 15.1% Capital Equipment 6.3%
Financial 13.9% Consumer Staple 2.6%
Consumer Cyclical 13.4% Utility 1.6%
Retail 11.8% Transportation 0.7%
* Total returns are for the period ended June 30, 2001. Returns
represent past performance, assume reinvestment of all distributions
and are not indicative of future performance. "Results may have been
achieved during market conditions or pursuing performance
opportunities, including investment in initial public offerings, that
may not continue to occur in the future. "Investment returns and
principal value of fund shares will fluctuate so that shares, when
redeemed, may be worth more or less than their original cost. Small-
company investing entails special risks as outlined in the
prospectus. The performance of the fund on this page is reported net
of Trust level charges (i.e. investment management fees and operating
expenses). It does not reflect expense and charges of the applicable
separate accounts and variable products, all of which vary to a
considerable extent and are described in your product prospectus.
** Year-to-date total returns not annualized.
+ Source: MorningStar, Inc. Data as of 6/30/01. Although gathered from
reliable sources, data completeness and accuracy cannot be
guaranteed. Represents an average annual total return for the sub-
accounts of all variable annuity and life products within the
Morningstar variable universe having a Small Growth investment
category.
21
Inception: May 2, 1988
International Equity Index Fund
Independence Investment LLC B. Greenleaf/D. Nolan
During the second quarter of 2001, the International Equity Index Fund
returned -0.02%, outperforming its custom blended benchmark return of -0.98%
by 96 basis points. Fifty-four basis points of the outperformance came from
the month of April, leaving 18 basis points outperformance in May and 24 basis
points in June. Forty-six basis points of the outperformance during this
quarter were attributable to exchange rate differences between those used by
the fund administrator and those stated by the MSCI Index. The most noticeable
rate differences came from the Japanese yen, the British pound and the Euro.
Country selection was a slight negative contributor to performance, however
stock selection was a strong positive contributor. Ireland was the largest
negative contributor while Taiwan was the largest positive contributor to
country selection attribution. Ireland climbed 10.72% during the second
quarter of 2001 and the Fund held a slight underweight to the 90% EAFE GDP and
10% MSCI Emerging Markets Free Index custom benchmark. On the other hand,
Taiwan returned -15.98% during the second quarter and the Fund held an
underweight to the custom blended benchmark, therefore Taiwan was a positive
attributor to country selection. Stock selection attribution was very strong,
especially in Japan and Italy. Japan's Mizuho Holdings and Mitsubishi Tokyo
Financing along with Italy's Banca di Roma were among the best contributors.
Contribution to performance from industry-specific categories was fairly flat,
the largest positive contributor was that of leisure and tourism while the
largest negative contributor was business and public services.
Annually on July 1st, Morgan Stanley rebalances its EAFE GDP Index to reflect
the latest calendar year GDP value for each country. As a result of these
changes, at the beginning of the third quarter, we will rebalance your Fund
back to 90% EAFE GDP and 10% Morgan Stanley Emerging Markets Free Index
weights. Currently, the Fund owns 754 securities that represent exposure to
thirty-seven equity markets. The Custom Benchmark holds 1665 securities.
[GRAPH]
Historical Fund Return
$10,000
Investment made 7/1/91
(10-Year Period)
International International
Equity Equity Index
Date Index Fund Benchmark(1)
---- ------------- -------------
7/1/1991 10,000 10,000
7/31/1991 10,497 10,494
8/31/1991 10,601 10,283
9/30/1991 10,685 10,865
10/31/1991 10,868 11,022
11/30/1991 10,623 10,510
12/31/1991 11,638 11,056
1/31/1992 11,609 10,822
2/29/1992 11,588 10,438
3/31/1992 11,057 9,752
4/30/1992 11,026 9,801
5/31/1992 11,338 10,461
6/30/1992 11,123 9,968
7/31/1992 11,059 9,716
8/31/1992 10,937 10,329
9/30/1992 10,898 10,129
10/31/1992 10,840 9,600
11/30/1992 11,294 9,693
12/31/1992 11,446 9,746
1/31/1993 11,515 9,748
2/28/1993 11,457 10,046
3/31/1993 11,837 10,925
4/30/1993 11,910 11,965
5/31/1993 12,515 12,221
6/30/1993 12,405 12,032
7/31/1993 12,624 12,456
8/31/1993 13,331 13,131
9/30/1993 13,505 12,838
10/31/1993 14,375 13,236
11/30/1993 13,838 12,082
12/31/1993 15,143 12,957
1/31/1994 15,247 14,055
2/28/1994 15,069 14,019
3/31/1994 14,284 13,418
4/30/1994 14,552 13,990
5/31/1994 14,723 13,913
6/30/1994 14,344 14,114
7/31/1994 14,674 14,252
8/31/1994 15,352 14,593
9/30/1994 15,033 14,136
10/31/1994 15,334 14,610
11/30/1994 14,331 13,911
12/31/1994 14,195 14,002
1/31/1995 13,402 13,467
2/28/1995 13,631 13,432
3/31/1995 14,126 14,274
4/30/1995 14,551 14,815
5/31/1995 14,849 14,642
6/30/1995 14,706 14,388
7/31/1995 15,523 15,288
8/31/1995 15,082 14,708
9/30/1995 15,296 14,999
10/31/1995 15,030 14,600
11/30/1995 15,100 15,011
12/31/1995 15,333 15,619
1/31/1996 15,575 15,686
2/29/1996 15,751 15,742
3/31/1996 15,902 16,081
4/30/1996 16,491 16,552
5/31/1996 16,323 16,251
6/30/1996 16,360 16,347
7/31/1996 15,666 15,872
8/31/1996 15,789 15,911
9/30/1996 16,084 16,337
10/31/1996 15,984 16,174
11/30/1996 16,699 16,821
12/31/1996 16,742 16,609
1/31/1997 16,453 16,031
2/28/1997 16,514 16,297
3/31/1997 16,207 16,360
4/30/1997 16,322 16,450
5/31/1997 17,697 17,524
6/30/1997 18,614 18,495
7/31/1997 19,199 18,799
8/31/1997 17,107 17,398
9/30/1997 18,344 18,376
10/31/1997 15,858 16,968
11/30/1997 15,853 16,799
12/31/1997 15,902 16,950
1/31/1998 15,913 17,730
2/28/1998 17,135 18,871
3/31/1998 17,830 19,456
4/30/1998 18,306 19,614
5/31/1998 18,415 19,896
6/30/1998 18,639 20,087
7/31/1998 18,790 20,355
8/31/1998 16,400 17,678
9/30/1998 15,890 17,190
10/31/1998 17,610 19,108
11/30/1998 18,463 20,104
12/31/1998 19,212 20,918
1/31/1999 19,255 20,945
2/28/1999 18,603 20,292
3/31/1999 19,578 21,365
4/30/1999 20,328 22,228
5/31/1999 19,343 21,068
6/30/1999 20,340 22,132
7/31/1999 20,818 22,683
8/31/1999 21,008 22,842
9/30/1999 21,156 23,123
10/31/1999 21,865 23,893
11/30/1999 22,830 24,882
12/31/1999 25,143 27,378
1/31/2000 23,668 26,036
2/29/2000 24,474 26,940
3/31/2000 25,134 27,678
4/30/2000 23,519 25,893
5/31/2000 23,065 25,271
6/30/2000 23,875 26,355
7/31/2000 22,741 25,032
8/31/2000 22,960 25,298
9/30/2000 21,848 24,023
10/31/2000 21,127 23,235
11/30/2000 20,208 22,198
12/31/2000 20,764 22,744
1/31/2001 21,181 23,247
2/28/2001 19,711 21,666
3/31/2001 18,334 20,204
4/30/2001 19,590 21,509
5/31/2001 18,969 20,853
6/30/2001 18,318 20,113
Top Ten Holdings (as of June 30, 2001)
------------------------------------------------------------------------------
% of six months ago
investments % of investments
Toyota Motor Corp. 2.0% 3.0%
Allianz AG 1.5% 1.7%
Deutsche Telekom AG 1.3% 4.5%
Morgan Stanley Capital LLC 1.2% 1.4%
BP Amoco PLC 1.2% 1.4%
GlaxoSmithKline PLC 1.2% N/A
Siemens AG 1.1% 1.5%
ENI 1.1% N/A
Nippon Telegraph & Telephone Corp. 1.1% 1.3%
Total Fina SA 1.1% N/A
Average Annual Total Returns*
------------------------------------------------------------------------------
International International
Equity Equity Index MorningStar
Index Fund Benchmark(1) Peer Group+
------------- ------------- -----------
YTD** -11.77% -11.57% -13.81%
1 Year -23.27 -23.69 -24.30
3 Years -0.58 0.04 0.39
5 Years 2.29 4.23 4.80
10 Years 6.24 7.05 9.05
Top Ten Countries (as of June 30, 2001)
------------------------------------------------------------------------------
% of % of
investments investments
Japan 28.8% Spain 4.0%
Germany 13.0% Australia 3.1%
United Kingdom 10.8% Netherlands 2.9%
France 8.5% United States 2.7%
Italy 7.3% Switzerland 1.8%
(1) The International Equity Benchmark represents the MSCI EAFE from
May 1998 to April 1998 and then MSCI EAFE GDP weighted from May
1998 to June 1999 and now 90% MSCI EAFE GDP - weighted/10% MSCI
Emerging Markets Free from July 1999 to present.
* Total returns are for the period ended June 30, 2001, returns
represent past performance, assume reinvestment of all
distributions, and are not indicative of future performance.
"Results may have been achieved during market conditions or pursuing
performance opportunities that may not continue to occur in the
future." Investment returns and principal value of fund shares will
fluctuate so that shares, when redeemed, may be worth more or less
than their original cost. The performance of the fund on this page
is reported net of Trust level charges (i.e. investment management
fees and operating expenses). It does not reflect expense and
charges of the applicable separate accounts and variable products,
all of which vary to a considerable extent and are described in your
product prospectus. There are special risks associated with
international investing, including currency fluctuations, political
and economic instability, foreign taxation and different accounting
standards, as outlined in the current prospectus.
** Year-to-date total returns not annualized.
+ Source: MorningStar, Inc. Data as of 6/30/01. Although gathered from
reliable sources, data completeness and accuracy cannot be
guaranteed. Represents an average annual total return for the sub-
accounts of all variable annuity and life products within the
MorningStar variable universe having a 90% weighting of the Foreign
Stock, Large Cap category and a 10% weighting of the Diversified
Emerging Markets category. Prior to July 1999, the peer group
represents the Foreign Stock, Large Cap category.
22
Inception: May 1, 1996
International Opportunities Fund
T. Rowe Price International, Inc. Warren/Ford/Seddan/Bickford-Smith
International stocks fell sharply during the six months ended June 30. Losses
were modest over the second quarter but followed steep declines during the
first three months of the year. The U.S. Federal Reserve cut rates
aggressively during the period, and a surprise Fed rate cut spurred a global
rally early in the second quarter, but the rebound fizzled on continued
earnings disappointments and renewed fears about weakening economies.
Technology, media, and telecommunications stocks led the April upswing, while
defensive, value-oriented stocks, which offer a measure of revenue and
earnings certainty, rallied as less positive economic news dominated in May
and June.
In Europe, economic indicators declined, while energy and food prices pushed
euro zone inflation up to 3.4%. The strong dollar continued to hurt returns
for U.S. investors. The euro appeared to stabilize after falling 6% during the
first quarter, then fell another 4% during the second quarter. Falling exports
drove Japan to the brink of recession. The yen was flat in the second quarter
after falling 9% during the first quarter. Most regional economies in the
Pacific ex-Japan slowed sharply as exports softened. In Latin America,
Mexico's economy weakened in line with U.S. demand, but the peso strengthened
and stocks remained strong. A domestic energy crisis and Argentina's turmoil
drove Brazil's currency down.
Overall, the T. Rowe Price International Stock Fund posted a sharp loss,
modestly underperforming the MSCI EAFE (Europe, Australasia, Far East) Index,
which fell 14.75%. The portfolio's bias toward growth sectors hindered returns
during a period when value sectors were the strongest performers. Both our
overweighting of technology and our underweighting of value and defensive
sectors, including automobiles and utilities, hurt returns. Country weightings
and stock selection within countries were generally neutral, although our
overweight position in the robust Mexican market has been a positive.
The ongoing correction in tech and telecom stocks hurt performance as
telecommunications provider Vodafone (U.K.) and communications equipment
makers Alcatel (France), Ericsson (Sweden), and Nokia (Finland) plunged. At
the same time, stock selection within sectors was positive. Within the
technology sector, for example, Celestica (Canada) and Canon (Japan) boosted
returns. In the telecom sector, China Mobile (Hong Kong) climbed as subscriber
growth surpassed expectations, and in Japan NTT DoCoMo's launch of Java
Internet-compatible handsets stimulated usage. Both stocks were significant
contributors to their sector. Telefonos de Mexico also rallied along with that
country's stock market. The period's top contributor was U.K. pharmaceutical
giant GlaxoSmithKline.
We added to holdings in caterer Sodexho (France), which acquired control of
its U.S. subsidiary; food retailer Sainsbury (U.K.), which is restructuring;
and Italian bank BNL, which is increasing its earnings and should benefit from
industry consolidation. After significant cuts to tech and telecom positions
in the first quarter, we made further reductions in Ericsson and Japan's
Kyocera and NTT during the second quarter in light of the difficult near-term
outlook. We also reduced our holdings of financial companies that are exposed
to the slowdown in mergers and acquisitions and other equity-market-related
business, including Credit Suisse and Deutsche Bank.
Near the end of June, the U.S. Federal Reserve cut interest rates for the
sixth time since the beginning of the year. The economic news remains
uninspiring, however, and the outlook uncertain. Optimism about falling
interest rates will likely be balanced by continued earnings pessimism over
the next few months, but news should turn more positive as rate cuts work
their way through the system. We are focusing on positioning the portfolio to
benefit from a rebound in growth over the medium term while avoiding the
negative impact of short-term earnings disappointments.
(Fund investment information on the next page.)
23
Inception: May 1, 1996
International Opportunities Fund
T. Rowe Price International, Inc. Warren/Ford/Seddan/Bickford-Smith
[GRAPH]
Historical Fund Return
$10,000
Investment made 5/1/96
(Fund Inception Date)
International
Opportunites
Date International Opportunities Fund Benchmark (1)
---- -------------------------------- -------------
5/1/1996 10,000 10,000
5/31/1996 10,024 9,818
6/30/1996 10,129 9,876
7/31/1996 9,820 9,590
8/31/1996 9,971 9,613
9/30/1996 10,191 9,870
10/31/1996 10,150 9,771
11/30/1996 10,609 10,162
12/31/1996 10,672 10,034
1/31/1997 10,544 9,685
2/28/1997 10,672 9,846
3/31/1997 10,659 9,884
4/30/1997 10,701 9,939
5/31/1997 11,332 10,588
6/30/1997 11,796 11,174
7/31/1997 12,113 11,357
8/31/1997 10,992 10,511
9/30/1997 11,719 11,102
10/31/1997 10,863 10,252
11/30/1997 10,859 10,149
12/31/1997 10,880 10,240
1/31/1998 11,254 10,711
2/28/1998 11,932 11,401
3/31/1998 12,346 11,755
4/30/1998 12,435 11,850
5/31/1998 12,390 11,795
6/30/1998 12,416 11,887
7/31/1998 12,560 12,011
8/31/1998 10,980 10,525
9/30/1998 10,715 10,205
10/31/1998 11,680 11,272
11/30/1998 12,199 11,852
12/31/1998 12,611 12,323
1/31/1999 12,484 12,309
2/28/1999 12,268 12,034
3/31/1999 12,769 12,615
4/30/1999 13,241 13,246
5/31/1999 12,623 12,623
6/30/1999 13,112 13,204
7/31/1999 13,358 13,514
8/31/1999 13,495 13,561
9/30/1999 13,581 13,653
10/31/1999 14,038 14,161
11/30/1999 15,021 14,728
12/31/1999 16,900 16,133
1/31/2000 15,833 15,257
2/29/2000 16,711 15,669
3/31/2000 16,885 16,258
4/30/2000 15,946 15,351
5/31/2000 15,446 14,958
6/30/2000 16,250 15,595
7/31/2000 15,693 14,979
8/31/2000 16,033 15,165
9/30/2000 15,020 14,323
10/31/2000 14,413 13,868
11/30/2000 13,655 13,245
12/31/2000 14,136 13,698
1/31/2001 14,305 13,916
2/28/2001 13,024 12,821
3/31/2001 12,015 11,897
4/30/2001 12,974 12,706
5/31/2001 12,412 12,356
6/30/2001 11,876 11,881
Top Ten Holdings (as of June 30, 2001)
------------------------------------------------------------------------------
% of six months ago
investments % of investments
GlaxoSmithKline PLC 4.6% N/A
Total Fina SA 2.7% N/A
Shell Transport & Trading Co. PLC 2.3% 1.2%
Royal Bank of Scotland Group 2.2% N/A
ING Groep NV 2.1% 1.0%
Reed International PLC 2.1% 0.7%
Canon, Inc. 2.0% 0.9%
NTT Mobile Communications Network, Inc. 1.9% 1.1%
Rhone-Poulenc SA 1.9% 0.1%
Vodafone AirTouch PLC 1.8% N/A
Average Annual Total Returns*
------------------------------------------------------------------------------
Intl. Opportunities Intl. Opportunities MorningStar
Fund Benchmark(1) Peer Group+
------------------- ------------------- -----------
YTD** -15.98% -13.25% -13.81%
1 Year -26.92 -23.81 -24.30
3 Years -1.47% -0.02 0.39
5 Years 3.23 3.77 4.80
Since Inception (5/1/96) 3.39 3.39 N/A
Top Ten Countries (as of June 30, 2001)
------------------------------------------------------------------------------
% of %of
investments investments
United Kingdom 24.8% Switzerland 4.5%
Japan 18.2% Germany 4.4%
France 14.2% United States 3.5%
Netherlands 7.6% Sweden 3.2%
Italy 5.9% Hong Kong 2.6%
(1) The International Opportunities Benchmark represents the MSCI EAFE
from May 1996 to December 1998 and the MSCI All Country World Free
Ex. US from January 1999 to present.
* Total returns are for the period ended June 30, 2001 . Returns
represent past performance, assume reinvestment of all distributions
and are not indicative of future performance. "Results may have been
achieved during market conditions or pursuing performance
opportunities, including investment in initial public offerings,
that may not continue to occur in the future." Investment returns
and principal value of fund shares will fluctuate so that shares,
when redeemed, may be worth more or less than their original cost.
There are special risks associated with international investing
including currency fluctuations, political and economic instability,
foreign taxation and different accounting standards, as outlined in
the current prospectus. The performance of the fund on this page is
reported net of Trust level charges (i.e. investment management fees
and operating expenses). It does not reflect expense and charges of
the applicable separate accounts and variable products, all of which
vary to a considerable extent and are described in your product
prospectus.
** Year-to-date total returns not annualized.
+ Source: MorningStar, Inc. Data as of 6/30/01. Although gathered from
reliable sources, data completeness and accuracy cannot be
guaranteed. Represents an average annual total return for the sub-
accounts of all variable annuity and life products within the
Morningstar variable universe having a Foreign Stock, Large Cap
investment category.
24
Inception: August 31, 1999
International Equity Fund
Goldman Sachs Asset Management Maeda/Noble/Orchard
During the second quarter of 2001, the International Equity Fund (the "Fund")
generated a total cumulative return of 0.43%, versus the -1.25% total
cumulative return of the Fund's benchmark, the MSCI EAFE Index (the "Index").
During the quarter the Fund's performance was enhanced by positive stock
selection. In particular, our positioning in the Information Technology,
Consumer Discretionary and Industrials sectors was the most beneficial.
Detractors from performance included holdings in Telecoms, Technology Hardware
and Equipment. The entire Telecom sector continued to underperform, due to
concerns about the companies' financial health in light of acquisitions and
expenditure on third generation (3G) mobile phone licenses.
In the U.S. there were some positive signs from the economy. Specifically,
new home sales, consumer confidence and consumption surprised to the upside,
which has given the market some hope that the Federal Reserve Board's actions
are finally starting to take hold. In Europe, the weak Euro and inflationary
pressures have prevented the ECB from reducing interest rates by any
meaningful extent. However, going forward pricing pressures should ease given
stable to declining energy prices, thus enabling room for rates to decline.
Expectations are that the economy will trough in the second half of this year
with the equity markets anticipating a more robust 2002. The UK economy has
shown fewer signs of a significant slowdown, and as such, provides a more
supportive environment for equities. While the risk of more weak earnings news
remains in 2001, we believe that we are beginning to see a bottom in the
equity market, with ample negative sentiment already being factored into the
much maligned technology and telecommunications sectors. Given current
weakness in the global economic environment and Asia's exposure to the
commodity end of the manufacturing sector, we continue to position the
portfolio relatively defensively. We are underweight the property sector in
Hong Kong and Singapore as interest rate cuts have failed to stimulate a
recovery in demand. We continue to favor defensive, high dividend yield plays,
as well as companies that are relatively insulated from the external slowdown.
We are positive on Australia for its defensive characteristics in such a
market environment. The Japanese domestic economy is showing signs of weakness
and it seems likely that 2001 GDP growth will be revised into negative
territory. Also impacting the domestic market are the reform policies of Prime
Minister Koizumi over which there is much debate in terms of political
backing, pace and scale of any potential future reforms. Under these
circumstances, we are selectively moving away from domestic names towards
stocks which are more exposed to a recovery in global GDP. In conclusion, the
U.S. outlook seems to be improving, and signs of a broader global slowdown
seem to be abating, although the "old economy' seems as though it will recover
before the "new economy.' In this environment, we continue to focus on finding
outstanding companies across global sectors, positioning the portfolio for
long-term global re-flation.
Footnotes
Total return figures represent past performance and do not indicate future
results which will vary. The Fund's performance reflects the reinvestment of
dividends and distributions. The MSCI EAFE Unhedged Index is unmanaged and
does not include any fees or expenses. The Fund's foreign investments may be
more volatile than an investment in U.S. securities and are subject to the
risks of currency fluctuations and political developments.
Performance returns for the VST International Equity Fund (the "Fund") are
estimated and supplied as a client accommodation for internal use only within
John Hancock Funds Group. The Fund is subadvised/managed by Goldman Sachs
Asset Management ("GSAM"). As a subadviser, we do not normally perform
administration functions, such as performance calculations. The NAV's,
distributions and expense ratios (which are calculated by the custodian--State
Street Bank) used to calculate total returns have not been independently
validated and approved by GSAM.
(Fund investment information on the next page.)
25
Inception: August 31, 1999
International Equity Fund
Goldman Sachs Asset Management Maeda/Noble/Orchard
[GRAPH]
Historical Fund Return
$10,000
Investment made 8/31/99
(Fund Inception Date)
International Equity MSCI EAFE
Date Fund Index
---- -------------------- -----
8/31/1999 10,000 10,000
9/30/1999 9,935 10,103
10/31/1999 10,307 10,484
11/30/1999 11,103 10,851
12/31/1999 12,148 11,826
1/31/2000 11,522 11,077
2/29/2000 12,105 11,377
3/31/2000 12,438 11,820
4/30/2000 11,837 11,201
5/31/2000 11,565 10,930
6/30/2000 11,850 11,359
7/31/2000 11,410 10,886
8/31/2000 11,365 10,983
9/30/2000 10,805 10,450
10/31/2000 10,571 10,205
11/30/2000 10,120 9,825
12/31/2000 10,394 10,177
1/31/2001 10,366 10,171
2/28/2001 9,491 9,410
3/31/2001 8,835 8,787
4/30/2001 9,496 9,403
5/31/2001 9,206 9,078
6/30/2001 8,875 8,711
Top Ten Holdings (as of June 30, 2001)
-------------------------------------------------------------------------------
-
% of six months ago
investments % of investments
GlaxoSmithKline PLC 4.1% N/A
Royal Duth Petroleum Co. 2.9% N/A
Vodafone AirTouch PLC 2.6% 1.1%
Nestle SA 2.4% 0.5%
Tesco PLC 2.1% N/A
BP Amoco PLC 2.1% 0.8%
ING Groep NV 1.9% 0.7%
Barclay's PLC 1.8% N/A
Diageo PLC 1.7% 0.3%
Takeda Chemical Industries 1.6% N/A
Average Annual Total Returns*
-------------------------------------------------------------------------------
-
International MSCI EAFE MorningStar
Equity Fund Index Peer Group+
------------- --------- -----------
YTD** -14.56% -14.41% -13.81%
1 Year -25.00 -23.32 -24.30
Since Inception (8/31/99) -6.23 -7.25 N/A
Top Ten Countries (as of June 30, 2001)
-------------------------------------------------------------------------------
-
% of % of
investments investments
United Kingdom 26.2% Germany 6.4%
Japan 24.4% Sweden 3.7%
Switzerland 9.2% Italy 3.6%
France 8.0% Spain 3.0%
Netherlands 7.9% Australia 2.8%
* Total returns are for the period ended June 30, 2001, returns
represent past performance, assume reinvestment of all
distributions, and are not indicative of future performance.
"Results may have been achieved during market conditions or pursuing
performance opportunities, including investment in initial public
offerings, that may not continue to occur in the future." Investment
returns and principal value of fund shares will fluctuate so that
shares, when redeemed, may be worth more or less than their original
cost. The performance of the fund on this page is reported net of
Trust level charges (i.e. investment management fees and operating
expenses). It does not reflect expense and charges of the applicable
separate accounts and variable products, all of which vary to a
considerable extent and are described in your product prospectus.
There are special risks associated with international investing,
including currency fluctuations, political and economic instability,
foreign taxation and different accounting standards, as outlined in
the current prospectus.
** Year-to-date total returns not annualized.
+ Source: MorningStar, Inc. Data as of 6/30/01. Although gathered from
reliable sources, data completeness and accuracy cannot be
guaranteed. Represents an average annual total return for all
variable annuity and life sub-accounts within the Morningstar
variable universe having a Foreign Stock with Large Cap investment
category.
26
Inception: May 1, 1998
Emerging Markets Equity Fund
Morgan Stanley Investment Management Inc. Meyer/Ramachandran
The portfolio rose 5.57% (on a net basis) versus a benchmark (MSCI EMF)
return of 4.01% for the quarter ended June 30, 2001./1/
The portfolio outperformed the benchmark during the quarter due to stock
selection and country allocation. Stock selection in Taiwan, Brazil and Mexico
added positively to relative performance. On a country allocation basis our
underweight stance in Malaysia and Taiwan coupled with our overweight position
in South Korea added positively to performance. Our underweight stance in
South Africa detracted from performance.
Despite continued concerns about a slowdown in global economic growth and
earnings disappointments, the emerging markets rebounded during the quarter,
posting a 4.0% return. This return was fueled by several US interest rate
easings. As risk aversion diminished during the early part of the quarter, the
emerging markets rallied. However in June, given the slower pace of US Fed
interest rate cuts coupled with the slowdown in the global economy and
concerns over earnings, investors became more cautious, and the emerging
markets gave back some of their return.
The emerging markets will continue to be subject to fluctuations in global
market sentiment, yet are poised to perform strongly in the face of any
improvement. With global interest rates falling, emerging markets have the
potential to trade well in the medium term. These markets continue to offer
attractive valuations.
The information reflects the views of the portfolio manager at the time of
this writing. Of course, these views may change in response to changing
circumstances and market conditions.
[GRAPH]
Historical Fund Return
$10,000
Investment made 5/1/98
(Fund Inception Date)
Emerging Markets MSCI Emerging Markets
Date Equity Fund Free Index
----
5/01/1998 10,000 10,000
5/31/1998 8,688 8,630
6/30/1998 7,960 7,725
7/31/1998 8,533 7,970
8/31/1998 5,845 5,666
9/30/1998 6,556 6,025
10/31/1998 7,081 6,659
11/30/1998 7,668 7,213
12/31/1998 7,113 7,109
1/31/1999 6,934 6,994
2/28/1999 6,732 7,062
3/31/1999 7,603 7,993
4/30/1999 8,545 8,982
5/31/1999 7,990 8,929
6/30/1999 9,227 9,943
7/31/1999 8,932 9,672
8/31/1999 8,752 9,760
9/30/1999 8,575 9,431
10/31/1999 9,055 9,631
11/30/1999 10,559 10,495
12/31/1999 12,900 11,830
1/31/2000 12,556 11,901
2/29/2000 13,602 12,058
3/31/2000 13,829 12,118
4/30/2000 12,047 10,969
5/31/2000 11,234 10,516
6/30/2000 12,012 10,886
7/31/2000 11,066 10,326
8/31/2000 11,162 10,377
9/30/2000 9,707 9,471
10/31/2000 8,762 8,784
11/30/2000 7,691 8,017
12/31/2000 7,726 8,210
1/31/2001 8,827 9,340
2/28/2001 7,938 8,609
3/31/2001 7,092 7,764
4/30/2001 7,533 8,147
5/31/2001 7,613 8,244
6/30/2001 7,488 8,075
Top Ten Holdings (as of June 30, 2001)
------------------------------------------------------------------------------
% of six months ago
investments % of investments
Samsung Electronics 4.6% 8.1%
China Telecom (Hong Kong), Ltd. 3.8% 2.0%
Telefonos de Mexico SA 3.4% 4.5%
Taiwan Semiconductor 2.3% N/A
Grupo Financiero Banamex Accival, SA de CV 2.1% N/A
Petroleo Brasileiro SA 1.9% 0.4%
Cellular CRT Participacoes 1.8% 0.6%
United Microelectronics Corp. 1.7% N/A
Fomento Economico Mexicano SA de CV 1.7% N/A
Surgutneftegaz 1.7% 1.3%
Average Annual Total Returns*
------------------------------------------------------------------------------
-
Emerging Markets MSCI Emerging MorningStar
Equity Fund Markets Free Index Peer Group+
---------------- ------------------ ----------
-
YTD** -3.08% -1.64% -1.39%
1 Year -37.66 -25.82 -26.61
3 Years -2.02 1.49 1.23
Since Inception (5/1/98) -8.74 -6.53 N/A
Top Ten Countries (as of June 30, 2001)
------------------------------------------------------------------------------
% of % of
investments investments
United States 28.6% India 6.8%
South Korea 13.9% Brazil 5.7%
Taiwan 10.5% Mexico 5.2%
South Africa 9.5% Turkey 2.7%
Hong Kong 9.1% Malaysia 2.2%
/1/Performance is for Class A shares.
(1) Returns reflect extra-ordinary capital contribution of $445,000 in
June 1999.
* Total returns are for the period ended June 30, 2001. Returns
represent past performance, assume reinvestment of all distributions
and are not indicative of future performance. "Results may have been
achieved during market conditions or pursuing performance
opportunities. including investment in initial public offerings,
that may not continue to occur in the future." Investment returns
and principal value of fund shares will fluctuate so that shares,
when redeemed, may be worth more or less than their original cost.
International investing entails special risks as outlined in the
prospectus. The performance of the fund on this page is reported net
of Trust level charges (i.e. investment management fees and
operating expenses). It does not reflect expense and charges of the
applicable separate accounts and variable products, all of which
vary to a considerable extent and are described in your product
prospectus.
** Year-to-date total returns not annualized.
+ Source: MorningStar, Inc. Data as of 6/30/01. Although gathered from
reliable sources, data completeness and accuracy cannot be
guaranteed. Represents an average annual total return for the sub-
accounts of all variable annuity and the life products within the
Morningstar variable universe having a Diversified Emerging Markets
investment category.
27
Inception: May 1, 2001
Health Sciences Fund
Putnam Investments Richard England
The Health Sciences Fund returned +1.99% (net) for the two-month period of
May 1, 2001 through June 30, 2001.
In May, biotech topped the sub-sector list, followed by pharmaceuticals and
medical technology; health-care services declined during the month. The Fund
benefited from several stocks in its specialty pharmaceutical sub-sector,
which rose over 12% during the month: Allergan (driven by the launch of a new
glaucoma product), Elan (favorable reports on its product pipeline), and King
Pharmaceuticals (product introductions). In the large-cap pharmaceutical area,
American Home Products and Schering-Plough garnered good returns during the
month while Sigma and United Health Care declined.
In June, health-care services was the top performer, driven by a hospital
sub-sector that rebounded following earlier profit-taking. In medical
technology, a recovery in Medtronic, a cardiovascular device manufacturer
whose stock had sold off on disappointing first-quarter revenues, aided
performance.
In pharmaceuticals, robust performance by drug delivery, generics, and
specialty pharmaceuticals were offset by weakness in U.S.-branded
pharmaceutical manufacturers due to concerns over a slowdown in arthritis
treatment drugs and manufacturing problems at Schering-Plough. The Fund's
strongest contributors to performance were HCA (leading hospital company),
Medimmune (biotechnology company specializing in infectious diseases),
Medtronic (cardiovascular devices), Gilead Sciences (biotech), and Ivax
(generic drug manufacturer). Stocks that hindered performance included Waters,
(research equipment), Merck (drug manufacturer), and Schering-Plough.
The U.S. equity market remains volatile. We anticipate additional earnings
disappointments, especially in those stocks leveraged to capital spending. It
appears that the Federal Reserve Open Market Committee is becoming more
confident that the economy is on track to avoid a recession. The full impact
of their monetary and fiscal stimulus is expected to encourage economic growth
in the fourth quarter of 2001 and into 2002.
Given this scenario, the Fund is focusing on both health-care services and
pharmaceutical stocks while reducing exposure to biotechnology and life
sciences. The fundamental outlook for the health-care industries remains
positive and the Fund's broad diversification across the different industry
sectors should enable it to cushion declines in some areas while benefiting
from new opportunities as they arise.
[GRAPH]
Historical Fund Return
$10,000
Investment made 5/1/01
(Fund Inception Date)
Health Sciences S&P GSHI
Fund 500 Index/1/ Index/2/
5/1/2001 10,000 10,000 10,000
5/31/2001 10,241 10,067 10,220
6/30/2001 10,199 9,822 9,962
Top Ten Holdings (as of June 30, 2001)
------------------------------------------------------------------------------
% of six months ago
investments % of investments
Glaxo SmithKline PLC 0.1% N/A
American Home Products Corp. 0.1% N/A
Johnson & Johnson 0.1% N/A
Pharmacia Corp. 0.1% N/A
Merck & Co., Inc. 0.1% N/A
AstraZeneca Group PLC 0.1% N/A
Medtronic, Inc. 0.1% N/A
HCA-The Healthcare Corp. 0.1% N/A
Schering-Plough Corp. 0.1% N/A
Average Annual Total Returns*
------------------------------------------------------------------------------
-
Health GSHI
Sciences S&P 500 Health Care
Fund Index/1/ Index/2/
Since Inception (5/1/01) 1.99%* -1.76% 0.32%
Top Ten Sectors (as of June 30, 2001)
------------------------------------------------------------------------------
-
% of % of
investments investments
Health Care 2.2% Energy 0.0%
Financial 0.1%
Technology 0.0%
Capital Equipment 0.0%
Retail 0.0%
(1) "S&P 500" is an unmanaged stock index commonly used as a broad
measure of stock market performance.
(2) The Goldman Sachs Healthcare Index is a modified capitalization
weighted index that measures the performance of US healthcare
stocks. The index has a maximum individual stock weighting which is
currently 7.5%. The index includes companies in the following
categories: providers of healthcare related services, researchers,
manufacturers and distributors of pharmaceuticals, drugs and
related sciences, and medical supplies, instruments and products.
* Total returns are for the period ended June 30, 2001. Returns
represent past performance, assume reinvestment of all distributions
and are not indicative of future performance. "Results may have been
achieved during market conditions or pursuing performance
opportunities that may not continue to occur in the future."
Investment returns and principal value of fund shares will fluctuate
so that shares, when redeemed, may be worth more or less than their
original costs. Sector investing entails special risks as discussed
in the prospectus. The performance of the fund on this page is
reported net of Trust level charges (i.e. investment management fees
and operating expenses). It does not reflect expense and charges of
the applicable separate accounts and variable products, all of which
vary to a considerable extent and are described in your product
prospectus.
** Year-to-date total returns not annualized.
28
Inception: May 16, 1988
Real Estate Equity Fund
Independence Investment LLC J. DeSantis/T. Spicer
Morgan Stanley Investment Management, Inc. T. Bigman/D. Funke
The Real Estate Equity Fund is a multi-manager fund with two sub-advisers
each of which employs its own independent investment approach in managing its
portion of the Fund. The two managers employ a distinct and complementary
investment strategy. The multi-manager approach seeks to produce more
consistent investment returns over market cycles and to reduce the risk of any
one manager or strategy being out of favor in certain market environments.
II LLC selects real estate stocks using a combination of bottom-up
fundamental equity research and quantitative tools. II LLC Real estate stocks
are purchased that are undervalued relative to the stock's history and have
improving earnings growth prospects.
Morgan Stanley Investment Management (MSIM) uses a combination of top down
market analysis to identify undervalued real estate property sectors and
geographic regions and fundamental, bottom-up equity and real estate research
to select stocks that are attractively priced relative to the underlying real
estate value.
As of June 30, 2001, II LLC managed approximately 49% and MSIM managed
approximately 51% of the Fund's assets. For the year-to-date, the Fund
returned 5.95% versus 9.81% for the Wilshire Real Estate Securities Index.
Independence Investment LLC
The REIT industry has held up extremely well in this economic slowdown as
evidenced by the past year's performance. Even as other "safe-havens' have
come under pressure in this recent quarter, such as the Utility sector, the
REIT market has held its ground and has even added to its year-to-date gains.
During the second quarter of 2001, the Real Estate Equity portfolio
underperformed its benchmark, the Wilshire Real Estate Securities Index,
mainly due to common risk factors and, to a greater degree, stock selection.
The fund owned a greater degree of larger capitalization, higher quality
companies which dragged down relative performance. As the "junk-rally', which
dominated the first quarter, continued into the beginning of the second
quarter these strategies again hurt performance. Fortunately, towards the
latter part of the period, these trends have shown signs of reversing. Stock
selection had the greatest impact on relative return. Many of the companies
had concentrations in areas most affected by the economic downturn. And
although the slowdown has had somewhat of an impact on their operating
performance, the market reaction is overdone.
We expect the positive fundamentals of the group to continue to drive
performance albeit at more normal levels of return (10-12%). While the economy
searches for a bottom to this economic slowdown, REITs will continue to look
attractive to investors with their high dividend yields and predictable
growth. We believe the "junk-rally' is overdone and is starting to show signs
of weakening. We believe quality companies with experienced management teams
located in high barrier to entry markets will stage a comeback for the balance
of the year. Therefore we are even more committed to maintain a quality/large-
cap bias in the portfolio and to stick with companies with these
characteristics.
Morgan Stanley Investment Management, Inc.
REITs experienced a reversal of fortune throughout the first half of the
year, as last year's losers outperformed last year's winners. Perhaps of
greater significance was the strong relationship between dividend yield and
stock performance. Aside from attracting investors for its dividend yield and
defensive nature, the sector gained interest over the potential S&P index
inclusion of REITs.
Clearly, investors favored higher dividend stocks in the first half of the
year; we continue to stress fundamentals and believe the current focus on
income will run its course. To a lesser degree investors remained wary of
apartment companies with high concentrations in Northern California, where
rents and occupancies declined in markets where technology-led demand has
cooled. As a result, stock selection suffered among those companies we owned
for high-barrier-to-entry qualities. We note that these markets have had
limited new supply and home affordability is among the lowest in the country.
The top-down weightings in the portfolio reflect a more defensive stance
given weakening economic fundamentals. We increased our overweighting to
apartments, which we believe will likely experience favorable demand in a
slowing economy as it is a necessity and will compete favorably with the
alternative of purchasing a home. We reduced our overweighting to the office
sector over continued concerns of reduced demand and potential new sub-lease
space. The slowdown in the economy in 2001 will create a more challenging
environment. However, given the declining levels of construction, the modest
level of construction versus total supply outstanding, and historically low
vacancy rates, the U.S. real estate market is better prepared than in previous
periods for an economic slowdown. Based on the current valuation and the
sector's defensive characteristics, investors may find it attractive given the
recent performance and volatility in the equity markets.
29
Inception: May 16, 1988
Real Estate Equity Fund
Independence Investment LLC J. DeSantis/T. Spicer
Morgan Stanley Investment Management, Inc. T. Bigman/D. Funke
[GRAPH]
Historical Fund Return
$10,000
Investment made 7/1/91
(10-Year Period)
Wilshire Real
Date Real Estate Equity Fund Estate Index
---- ----------------------- -------------
7/1/1991 10,000 10,000
7/31/1991 9,993 9,958
8/31/1991 10,031 9,838
9/30/1991 10,154 9,725
10/31/1991 9,973 9,507
11/30/1991 9,781 9,191
12/31/1991 10,667 9,906
1/31/1992 11,092 10,373
2/29/1992 10,972 10,345
3/31/1992 10,938 10,121
4/30/1992 10,792 9,953
5/31/1992 11,107 9,993
6/30/1992 10,827 9,692
7/31/1992 11,145 9,728
8/31/1992 11,179 9,581
9/30/1992 11,455 9,945
10/31/1992 11,660 10,052
11/30/1992 11,797 10,138
12/31/1992 12,375 10,635
1/31/1993 13,333 11,374
2/28/1993 13,919 11,924
3/31/1993 14,896 12,725
4/30/1993 14,076 12,003
5/31/1993 13,850 11,815
6/30/1993 14,130 12,124
7/31/1993 14,323 12,370
8/31/1993 14,418 12,628
9/30/1993 15,260 13,202
10/31/1993 14,977 12,830
11/30/1993 14,331 12,270
12/31/1993 14,515 12,256
1/31/1994 14,860 12,623
2/28/1994 15,475 13,140
3/31/1994 15,010 12,531
4/30/1994 15,110 12,672
5/31/1994 15,415 12,935
6/30/1994 15,008 12,680
7/31/1994 14,922 12,710
8/31/1994 14,943 12,701
9/30/1994 14,860 12,489
10/31/1994 14,223 12,032
11/30/1994 13,743 11,561
12/31/1994 14,931 12,457
1/31/1995 14,415 12,055
2/28/1995 14,718 12,432
3/31/1995 14,757 12,504
4/30/1995 14,570 12,414
5/31/1995 15,189 12,825
6/30/1995 15,430 13,048
7/31/1995 15,721 13,258
8/31/1995 15,830 13,420
9/30/1995 16,207 13,667
10/31/1995 15,663 13,243
11/30/1995 15,726 13,381
12/31/1995 16,769 14,157
1/31/1996 16,964 14,352
2/29/1996 17,142 14,637
3/31/1996 17,296 14,755
4/30/1996 17,238 14,822
5/31/1996 17,559 15,152
6/30/1996 17,924 15,455
7/31/1996 17,868 15,318
8/31/1996 18,621 15,969
9/30/1996 19,136 16,368
10/31/1996 19,634 16,811
11/30/1996 20,313 17,509
12/31/1996 22,314 19,377
1/31/1997 22,559 19,654
2/28/1997 22,541 19,666
3/31/1997 22,412 19,733
4/30/1997 21,737 19,096
5/31/1997 22,417 19,665
6/30/1997 23,567 20,640
7/31/1997 24,201 21,319
8/31/1997 24,047 21,161
9/30/1997 26,138 23,248
10/31/1997 25,195 22,260
11/30/1997 25,517 22,707
12/31/1997 26,156 23,214
1/31/1998 25,413 22,886
2/28/1998 24,963 22,593
3/31/1998 25,591 23,038
4/30/1998 24,791 22,313
5/31/1998 24,620 22,098
6/30/1998 24,542 21,981
7/31/1998 22,881 20,451
8/31/1998 20,817 18,327
9/30/1998 22,252 19,353
10/31/1998 21,697 19,088
11/30/1998 22,004 19,447
12/31/1998 21,786 19,168
1/31/1999 21,189 18,753
2/28/1999 20,671 18,604
3/31/1999 20,568 18,504
4/30/1999 22,747 20,476
5/31/1999 23,343 20,822
6/30/1999 23,098 20,468
7/31/1999 22,327 19,685
8/31/1999 22,226 19,389
9/30/1999 21,168 18,515
10/31/1999 20,724 18,170
11/30/1999 20,561 17,885
12/31/1999 21,419 18,558
1/31/2000 21,448 18,634
2/29/2000 20,991 18,278
3/31/2000 22,117 19,078
4/30/2000 23,416 20,439
5/31/2000 23,735 20,684
6/30/2000 24,347 21,381
7/31/2000 26,752 23,301
8/31/2000 25,876 22,462
9/30/2000 27,009 23,192
10/31/2000 25,829 22,186
11/30/2000 26,386 22,685
12/31/2000 28,121 24,261
1/31/2001 27,926 24,504
2/28/2001 27,438 23,994
3/31/2001 27,243 24,014
4/30/2001 27,765 24,585
5/31/2001 28,354 25,273
6/30/2001 29,794 25,512
Top Ten Holdings (as of June 30, 2001)
------------------------------------------------------------------------------
% of six months ago
investments % of investments
Equity Office Properties Trust 7.5% 4.0%
Avalonbay Communities, Inc. 5.5% 4.0%
Equity Residential Properties Trust 5.3% 4.2%
Speiker Properties, Inc. 5.1% 3.8%
Simon Property Group Inc. 4.5% 2.2%
Boston Properties, Inc. 4.0% N/A
Public Storage, Inc. 3.9% 2.1%
Archstone Communities Trust 3.6% N/A
Starwood Hotels & Resorts Worldwide 3.4% N/A
Vornado Realty Trust 3.3% 2.4%
Average Annual Total Returns*
------------------------------------------------------------------------------
Real Estate Wilshire Real MorningStar
Equity Fund Estate Index(1) Peer Group+
----------- ------------- -----------
YTD** 5.95% 9.81% 6.34%
1 Year 22.37 24.60 19.11
3 Years 6.68 6.62 5.38
5 Years 10.70 11.51 10.63
10 Years 11.54 10.03 11.09
------------------------------------------------------------------------------
Top Industries (as of June 30, 2001)
------------------------------------------------------------------------------
% of
investments
Financial 95.0%
Consumer Cyclical 4.9%
Technology 0.1%
* Total returns are for the period ended June 30, 2001. Returns
represent past performance, assume reinvestment of all distributions
and are not indicative of future performance. "Results may have been
achieved during market conditions or pursuing performance
opportunities that may not continue to occur in the future."
Investment returns and principal value of fund shares will fluctuate
so that shares, when redeemed, may be worth more or less than their
original costs. Sector investing entails special risks as discussed
in the prospectus. The performance of the fund on this page is
reported net of Trust level charges (i.e. investment management fees
and operating expenses). It does not reflect expense and charges of
the applicable separate accounts and variable products, all of which
vary to a considerable extent and are described in your product
prospectus.
** Year-to-date total returns not annualized.
+ Source: MorningStar, Inc. Data as of 6/30/01. Although gathered from
reliable sources, data completeness and accuracy cannot be
guaranteed. Represents an average annual total return for all
variable annuity and life sub-accounts within the Morningstar
variable universe having a Specialty Real Estate investment
category.
30
Inception: March 29, 1986
Managed Fund
Independence Investment LLC J. Forrelli/J. Leu
Capital Guardian Trust Company Management Team
The Managed Fund is a multi-manager fund with two sub-advisers, each of which
employs its own investment approach and independently manages its portion of
the Fund. The two managers employ a distinct and complementary investment
strategy. The multi-manager approach seeks to produce more consistent
investment returns over market cycles and to reduce the risk of any one
manager or strategy being out of favor in certain market environments.
Independence has a normal target mix of 60% stocks and 40% bonds and selects
stocks and bonds using a combination of fundamental equity research and
quantitative tools. Capital Guardian has a normal target of 70% stocks and 30%
bonds and selects stocks and bonds using a fundamental, research-driven
approach. Capital Guardian also employs a multiple-manager approach by which
each portfolio manager and the research analysts as a group each manage a
separate portion of the portfolio to capture the highest conviction ideas of
the investment team.
As of June 30, 2001, II LLC managed approximately 81.80% and Capital Guardian
managed approximately 18.20% of the Fund's assets. The Fund returned -1.73%
compared to -2.44% for the benchmark year-to-date.
Independence Investment LLC
In the second quarter, the equity market outperformed the fixed income market
for the first time since the fourth quarter of 1999. Your balanced portfolio
performed very well for the quarter, returning 4.63% net, outperforming its
benchmark. Equities contributed the vast majority of the return and the
sectors that added the most value this quarter were Technology, Financials and
Consumer Non-Cyclicals. On the negative side, stock selection within Retail
and Health Care detracted from performance. The Fixed Income portion of the
account had a negligible return for the quarter as bond investors became
fearful that aggressive interest rate cuts by the Federal Reserve might
reignite inflation in 2002.
The worldwide economies are clearly struggling. The U.S. will likely show
negative growth in the current quarter as businesses reign in spending and
investment. European economies slowed considerably this quarter and Japan
appears to have entered another recession. Investors are looking past the
slowdown and focusing instead on the potential rebound over the coming months.
The consumer has remained quite resilient during this slowdown. The Federal
Reserve has aggressively cut interest rates and consumers will be receiving
tax rebate checks in the third quarter. Inflation is clearly coming down as
energy prices have weakened. We continue to overweight equities in your
portfolio. We believe the economy is in the process of bottoming and companies
will once again grow earnings at their historical 5% to 10% rate in 2002. We
favor industrial and basic material companies that will have significant
leverage with a global economic recovery and falling energy prices over the
coming quarters. However, investors must be patient, waiting to see tangible
evidence of the economic recovery over the remainder of the year.
Capital Guardian Trust Company
Our overweight position in U.S. large caps was helpful to returns in two
ways: large-cap indices provided solid returns, and relative outperformance
was strong within the large-cap portfolios we manage. Good stock selection was
also beneficial, as was our overweight position in technology stocks. We fully
participated in April's bounce in NASDAQ-type names, and we were able to trim
some of these positions on strength. On the bond side, results for the
portfolios we manage were helped by our overweight position in corporate
securities. Our participation in a number of new corporate issues was also
beneficial.
We are continuing to overweight equities. The upcoming tax refunds and the
easing monetary policy should provide the economy with a shot in the arm,
though the timing of a recovery will be hard to call. In the technology and
telecommunications areas, many companies have lowered production below the
level of demand in order to bring down excess inventories. Once inventory
levels are reduced, production will have to pick up to meet current demand,
and that should boost market sentiment. With the technology sector having
reaffirmed its cyclical nature, however, investors are not likely to support
the high multiples these stocks enjoyed in recent years. Looking at fixed
income, corporate securities still look undervalued relative to Treasuries,
but less so now that spreads have tightened. We continue to hold our high-
conviction corporate issues, with an emphasis on triple-B credits, though we
may begin to sell some of the more generic names represented in the index. We
are now overweighted in the mortgage sector for the first time in years.
Mortgage-backed securities look increasingly attractive now that rates appear
to have bottomed and prepayment risk has been reduced.
31
Inception: March 29, 1986
Managed Fund
Independence Investment LLC J. Forelli/J. Leu
Capital Guardian Trust Company Management Team
[GRAPH]
Historical Fund Return
$10,000
Investment made 7/1/91
(10-Year Period)
Date Managed Fund Managed Benchmark(1)
---- ------------ --------------------
7/1/1991 10,000 10,000
7/31/1991 10,237 10,297
8/31/1991 10,482 10,536
9/30/1991 10,512 10,559
10/31/1991 10,643 10,676
11/30/1991 10,500 10,514
12/31/1991 11,215 11,292
1/31/1992 11,041 11,103
2/29/1992 11,119 11,203
3/31/1992 10,977 11,062
4/30/1992 11,209 11,257
5/31/1992 11,368 11,397
6/30/1992 11,402 11,398
7/31/1992 11,719 11,773
8/31/1992 11,631 11,707
9/30/1992 11,777 11,854
10/31/1992 11,666 11,784
11/30/1992 11,898 11,978
12/31/1992 12,080 12,160
1/31/1993 12,236 12,337
2/28/1993 12,422 12,549
3/31/1993 12,646 12,706
4/30/1993 12,457 12,599
5/31/1993 12,644 12,767
6/30/1993 12,833 12,933
7/31/1993 12,819 12,943
8/31/1993 13,252 13,339
9/30/1993 13,303 13,314
10/31/1993 13,457 13,476
11/30/1993 13,329 13,336
12/31/1993 13,482 13,447
1/31/1994 13,797 13,772
2/28/1994 13,432 13,436
3/31/1994 13,037 12,980
4/30/1994 13,105 13,011
5/31/1994 13,107 13,104
6/30/1994 12,977 12,927
7/31/1994 13,268 13,271
8/31/1994 13,475 13,545
9/30/1994 13,191 13,279
10/31/1994 13,248 13,424
11/30/1994 13,043 13,165
12/31/1994 13,181 13,304
1/31/1995 13,429 13,605
2/28/1995 13,831 14,027
3/31/1995 14,012 14,282
4/30/1995 14,323 14,589
5/31/1995 14,872 15,183
6/30/1995 15,090 15,423
7/31/1995 15,330 15,650
8/31/1995 15,514 15,772
9/30/1995 15,973 16,183
10/31/1995 16,004 16,274
11/30/1995 16,518 16,765
12/31/1995 16,753 17,044
1/31/1996 17,011 17,390
2/29/1996 16,940 17,289
3/31/1996 16,959 17,299
4/30/1996 16,993 17,367
5/31/1996 17,197 17,575
6/30/1996 17,361 17,730
7/31/1996 16,981 17,356
8/31/1996 17,126 17,519
9/30/1996 17,664 18,167
10/31/1996 18,094 18,628
11/30/1996 18,788 19,508
12/31/1996 18,548 19,207
1/31/1997 18,987 19,814
2/28/1997 19,053 19,915
3/31/1997 18,609 19,382
4/30/1997 19,112 20,103
5/31/1997 19,667 20,814
6/30/1997 20,199 21,403
7/31/1997 21,341 22,580
8/31/1997 20,737 21,826
9/30/1997 21,434 22,595
10/31/1997 21,220 22,398
11/30/1997 21,728 22,976
12/31/1997 22,023 23,293
1/31/1998 22,267 23,579
2/28/1998 23,278 24,582
3/31/1998 24,139 25,368
4/30/1998 24,302 25,571
5/31/1998 24,223 25,405
6/30/1998 24,904 26,111
7/31/1998 24,647 25,965
8/31/1998 22,339 23,883
9/30/1998 23,107 25,024
10/31/1998 24,336 26,193
11/30/1998 25,352 27,204
12/31/1998 26,519 28,178
1/31/1999 26,922 28,964
2/28/1999 26,189 28,222
3/31/1999 26,747 28,962
4/30/1999 27,517 29,671
5/31/1999 27,082 29,146
6/30/1999 28,044 30,079
7/31/1999 27,456 29,465
8/31/1999 27,284 29,371
9/30/1999 26,938 29,024
10/31/1999 27,980 30,168
11/30/1999 28,159 30,536
12/31/1999 28,933 31,556
1/31/2000 27,851 30,562
2/29/2000 27,472 30,363
3/31/2000 29,451 32,306
4/30/2000 29,015 31,686
5/31/2000 28,763 31,290
6/30/2000 29,284 32,013
7/31/2000 29,127 31,830
8/31/2000 30,459 33,202
9/30/2000 29,519 32,233
10/31/2000 29,672 32,236
11/30/2000 28,419 30,924
12/31/2000 28,940 31,246
1/31/2001 29,667 32,114
2/28/2001 28,264 30,470
3/31/2001 27,181 29,373
4/30/2001 28,700 30,692
5/31/2001 28,890 30,888
6/30/2001 28,439 30,484
Top Ten Holdings (as of June 30, 2001)
------------------------------------------------------------------------------
% of six months ago
investments % of investments
Federal National Mortgage Assoc. 14.7% 11.7%
U.S. Treasury 3.4% 3.3%
General Electric Co. 2.6% 3.3%
Pfizer, Inc. 2.6% 0.6%
Microsoft Corp. 2.4% 3.6%
Citigroup, Inc. 2.2% 2.4%
Exxon Mobil Corp. 1.7% 1.0%
AOL Time Warner, Inc. 1.5% N/A
Verizon Communications 1.3% N/A
International Business Machines Corp. 1.2% 1.5%
Average Annual Total Returns*
------------------------------------------------------------------------------
Managed Managed MorningStar
Fund Benchmark(1) Peer Group+
----------- ------------- -----------
YTD** -1.73% -2.44% -2.16%
1 Year -2.89 -4.78 -1.04
3 Years 4.52 5.30 4.46
5 Years 10.37 11.45 10.20
10 Years 11.02 11.49 10.95
------------------------------------------------------------------------------
Top Ten Sectors (as of June 30, 2001)
------------------------------------------------------------------------------
% of % of
investments investments
Governmental 19.9% Capital Equipment 6.6%
Financial 19.3% Retail 5.6%
Technology 14.5% Utility 5.5%
Health Care 9.5% Energy 5.1%
Consumer Cyclical 7.1% Consumer Staple 3.9%
(1) The Managed Benchmark represents 50% S&P 500/50% Lehman Brothers
Government/Corporate Bond from April 1986 to December 1997, then 60%
S&P 500/40% Lehman Brothers Government/Corporate Bond from 1998 to
April 1998, and now 60% S&P 500/40% Lehman Brothers Aggregate Bond
from May 1998 to present.
* Total returns are for the period ended June 30, 2001. Returns
represent past performance, assume reinvestment of all distributions
and are not indicative of future performance. "Results may have been
achieved during market conditions or pursuing performance
opportunities that may not continue to occur in the future."
Investment returns and principal value of fund shares will fluctuate
so that shares, when redeemed, may be worth more or less than their
original cost. The performance of the fund on this page is reported
net of Trust level charges (i.e. investment management fees and
operating expenses). It does not reflect expense and charges of the
applicable separate accounts and variable products, all of which vary
to a considerable extent and are described in your product
prospectus.
** Year-to-date total returns not annualized.
+ Source: MorningStar, Inc. Data as of 6/30/01. Although gathered from
reliable sources, data completeness and accuracy cannot be
guaranteed. Represents an average annual total return for all
variable annuity and life sub-accounts within the Morningstar
variable universe having a Domestic Hybrid investment category.
32
Inception: August 31, 1999
Aggressive Balanced Fund
Independence Investment LLC J. Forelli/J. Leu
In the second quarter, the equity market outperformed the fixed income market
for the first time since the fourth quarter of 1999. Your balanced portfolio
performed very well for the quarter, returning 5.30% net, outperforming its
benchmark. Equities contributed the vast majority of the return and the
sectors that added the most value this quarter were Technology, Financials and
Consumer Non-Cyclicals. On the negative side, stock selection within Retail
and Health Care detracted from performance. The Fixed Income portion of the
account had a negligible return for the quarter as bond investors became
fearful that aggressive interest rate cuts by the Federal Reserve might
reignite inflation in 2002.
The worldwide economies are clearly struggling. The U.S. will likely show
negative growth in the current quarter as businesses reign in spending and
investment. European economies slowed considerably this quarter and Japan
appears to have entered another recession. Investors are looking past the
slowdown and focusing instead on the potential rebound over the coming months.
The consumer has remained quite resilient during this slowdown. The Federal
Reserve has aggressively cut interest rates and consumers will be receiving
tax rebate checks in the third quarter. Inflation is clearly coming down as
energy prices have weakened. We continue to overweight equities in your
portfolio. We believe the economy is in the process of bottoming and companies
will once again grow earnings at their historical 5% to 10% rate in 2002. We
favor industrial and basic material companies that will have significant
leverage with a global economic recovery and falling energy prices over the
coming quarters. However, investors must be patient, waiting to see tangible
evidence of the economic recovery over the remainder of the year.
[GRAPH]
Historical Fund Return
$10,000
Investment made 8/31/99
(Fund Inception Date)
Aggressive Aggressive
Balanced Balanced
Date Fund Benchmark(1)
---- ---------- ----------
8/31/1999 10,000 10,000
9/30/1999 9,830 9,823
10/31/1999 10,274 10,298
11/30/1999 10,383 10,455
12/17/1999 10,709 10,905
1/31/2000 10,222 10,485
2/29/2000 10,011 10,367
3/31/2000 10,876 11,162
4/30/2000 10,679 10,902
5/31/2000 10,611 10,733
6/30/2000 10,782 10,988
7/31/2000 10,730 10,884
8/31/2000 11,341 11,431
9/30/2000 10,895 10,997
10/31/2000 10,990 10,980
11/30/2000 10,417 10,376
12/31/2000 10,553 10,462
1/31/2001 10,816 10,783
2/28/2001 10,150 10,070
3/31/2001 9,632 9,603
4/30/2001 10,319 10,153
5/31/2001 10,358 10,219
6/30/2001 10,142 10,042
Top Ten Holdings (as of June 30, 2001)
------------------------------------------------------------------------------
--
% of six months ago
investments % of investments
Federal National Mortgage Assoc. 12.7% 4.5%
General Electric Co. 4.1% 1.3%
Citigroup, Inc. 3.2% 1.5%
U.S. Treasury 3.1% 3.3%
Microsoft Corp. 3.0% 2.2%
Pfizer, Inc. 2.6% 0.3%
AOL Time Warner, Inc. 2.1% N/A
Exxon Mobil Corp. 2.1% 0.5%
Verizon Communications 1.9% N/A
International Business Machines Corp. 1.7% 0.9%
Average Annual Total Returns*
------------------------------------------------------------------------------
--
Aggressive Aggressive MorningStar
Balanced Balanced Peer
Fund Benchmark(1) Group+
------------- ------------ ------------
YTD** -3.89% -4.02% -2.16%
1 Year -6.00 -8.61 -1.04
Since Inception (8/31/99) 0.74 0.23 N/A
Top Ten Sectors (as of June 30, 2001)
------------------------------------------------------------------------------
--
% of % of
investments investments
Technology 18.6% Retail 7.4%
Governmental 16.2% Consumer Cyclical 6.6%
Financial 14.2% Energy 5.7%
Health Care 10.1% Utility 4.8%
Capital Equipment 7.9% Consumer Staple 4.6%
(1) The benchmark represents 75% S&P 500 and 25% Lehman Brothers
Aggregate Bond Index.
* Total returns are for the period ended June 30, 2001. Returns
represent past performance, assume reinvestment of all distributions
and are not indicative of future performance. "Results may have been
achieved during market conditions or pursuing performance
opportunities that may not continue to occur in the future."
Investment returns and principal value of fund shares will fluctuate
so that shares, when redeemed, may be worth more or less than their
original cost. Small-company investing entails special risks as
outlined in the prospectus. The performance of the fund on this page
is reported net of Trust level charges (i.e. investment management
fees and operating expenses). It does not reflect expense and
charges of the applicable separate accounts and variable products,
all of which vary to a considerable extent and are described in your
product prospectus.
** Year-to-date total returns not annualized.
+ Source: MorningStar, Inc. Data as of 6/30/01. Although gathered from
reliable sources, data completeness and accuracy cannot be
guaranteed. Represents an average annual total return for all
variable annuity and life sub-accounts within the Morningstar
variable universe having a Domestic Hybrid investment category.
33
Inception: May 1, 1996
Global Balanced Fund
Capital Guardian Trust Company Management Team
For the quarter ended June 30, 2001, the VST Global Balanced Fund returned
2.39%, beating the blended benchmark return (60% MSCI World/40% Salomon
Brothers World Government Bond Index) of 1.08%.
Our overweight position in U.S. large-cap equities was beneficial to returns.
Among the asset classes we allocate to, U.S. large caps provided the best
returns. Furthermore, relative performance was good for our U.S. large-cap
portfolios. Overweighting emerging markets equities and underweighting non-
U.S. small caps also helped returns. Hindering returns were our overweight
positions in non-U.S. large caps and non-U.S. bonds.
We think active stock selection will beat bond returns in the coming months
and we are overweight most equity categories. Among the large-cap allocations,
we favor both U.S. and non-U.S. stocks. Interest rates have come down more in
the U.S. than elsewhere, and while the capitalization-weighted P/E for the S&P
500 remains high, valuations are reasonable outside the largest stocks in the
index. The U.S. economy was first to slow and may be the first to regain
momentum. Longer term, however, lower valuations, more room for improvement in
profitability, and eventually a weaker dollar, should give non-U.S. equities
an edge.
Looking at fixed income, we think we are near the end of the Federal
Reserve's easing cycle and we would be surprised to see the bond rally go much
further. We continue to favor non-U.S. bonds over those in the U.S. While
Europe has followed the U.S. in a pattern of slowing economic growth, European
bonds have not rallied as much as their U.S. counterparts. Similarly, the ECB
has been slow to cut short-term interest rates, resulting in Europe having
higher short-term rates than the U.S. for the first time in years. Across the
yield curve there seems to be more room for improvement in Europe than in the
U.S.
[GRAPH]
Historical Fund Return
$10,000
Investment made 5/1/96
(Fund Inception Date)
Global Balanced Global Balanced
Date Fund Composite Benchmark(1)
---- --------------- ----------------------
5/01/1996 9,992 9,892
6/30/1996 10,055 9,940
7/31/1996 9,956 9,849
8/31/1996 10,007 9,898
9/30/1996 10,257 10,068
10/31/1996 10,315 10,085
11/30/1996 10,678 10,397
12/31/1996 10,673 10,280
1/31/1997 10,509 9,927
2/28/1997 10,624 9,986
3/31/1997 10,568 9,972
4/30/1997 10,507 9,942
5/31/1997 11,089 10,498
6/30/1997 11,433 10,909
7/31/1997 11,471 10,941
8/31/1997 10,986 10,435
9/30/1997 11,471 10,907
10/31/1997 11,127 10,460
11/30/1997 10,967 10,291
12/31/1997 10,955 10,320
1/31/1998 11,195 10,632
2/28/1998 11,630 11,136
3/31/1998 11,807 11,311
4/30/1998 11,952 11,457
5/31/1998 11,952 11,413
6/30/1998 11,914 11,439
7/31/1998 11,962 11,494
8/31/1998 11,270 10,652
9/30/1998 11,434 10,701
10/31/1998 12,220 11,596
11/30/1998 12,442 11,898
12/31/1998 12,925 12,314
1/31/1999 12,913 12,250
2/28/1999 12,390 11,901
3/31/1999 12,557 12,234
4/30/1999 12,777 12,571
5/31/1999 12,313 12,072
6/30/1999 12,412 12,279
7/31/1999 12,784 12,662
8/31/1999 12,771 12,716
9/30/1999 12,780 12,890
10/31/1999 12,911 13,211
11/30/1999 12,991 13,450
12/31/1999 13,586 14,251
1/31/2000 12,794 13,540
2/29/2000 12,819 13,718
3/31/2000 13,194 14,254
4/30/2000 12,656 13,557
5/31/2000 12,722 13,373
6/30/2000 12,990 13,781
7/31/2000 12,724 13,448
8/31/2000 12,891 13,699
9/30/2000 12,570 13,216
10/31/2000 12,497 13,014
11/30/2000 11,946 12,645
12/31/2000 12,352 12,949
1/31/2001 12,722 13,093
2/28/2001 12,056 12,428
3/31/2001 11,553 11,797
4/30/2001 12,268 12,305
5/31/2001 12,111 12,198
6/30/2001 11,830 11,925
6/30/2001 11,830 11,925
Top Ten Holdings (as of June 30, 2001)
------------------------------------------------------------------------------
% of six months ago
investments % of investments
U.S. Treasury 10.2% N/A
Netherlands Government 6.7% N/A
Federal Republic of Germany 3.3% 1.9%
Federal National Mortgage Assoc. 2.5% N/A
AstraZeneca Group PLC 2.1% 0.3%
Government of Japan 1.9% 5.6%
Kingdom of Spain 1.7% N/A
Nokia Oyj 1.4% 0.9%
International-American Development Band 1.3% N/A
Asian Development Bank 1.2% N/A
Average Annual Total Returns*
------------------------------------------------------------------------------
Global Balanced Global Balanced MorningStar
Fund Composite Benchmark(1) Peer Group+
--------------- ---------------------- ----------
-
YTD** -4.23% -7.91% -6.01%
1 Year -8.93 -13.47 -5.84
3 Years -0.24 1.40 0.97
5 Years 3.30 3.71 6.19
Since Inception (5/01/96) 3.31 3.47 N/A
Top Ten Countries (as of June 30, 2001)
------------------------------------------------------------------------------
% of %of
investments investments
United States 45.9% Germany 4.4%
Japan 9.3% France 3.0%
Netherlands 8.8% Canada 2.8%
Supra National 7.1% Switzerland 2.4%
United Kingdom 6.5% Australia 2.1%
(1) International Balanced Composite Index: 65% Morgan Stanley Capital
International World Index Excluding US, and 35% Salomon Brothers
Non-US Govt. Bond Index, unhedged, May 1996 to April 2000, 65% MSCI
World / 35% Salomon Brothers World Government Bond, Unhedged, May
2000 to October 2000 and 60% MSCI World / 40% Salomon Brothers World
Government Bond, Unhedged, November 2000 to present
* Total returns are for the period ended June 30, 2001. Returns
represent past performance, assume reinvestment of all distributions
and are not indicative of future performance. "Results may have been
achieved during market conditions or pursuing performance
opportunities, including investment in initial public offerings,
that may not continue to occur in the future." Investment returns
and principal value of fund shares will fluctuate so that shares,
when redeemed, may be worth more or less than their original cost.
There are special risks associated with international investing
including currency fluctuations, political and economic instability,
foreign taxation and different accounting standards, as outlined in
the current prospectus. The performance of the fund on this page is
reported net of Trust level charges (i.e. investment management fees
and operating expenses). It does not reflect expense and charges of
the applicable separate accounts and variable products, all of which
vary to a considerable extent and are described in your product
prospectus.
** Year-to-date total returns not annualized.
+ Source: MorningStar, Inc. Data as of 6/30/01. Although gathered from
reliable sources, data completeness and accuracy cannot be
guaranteed. Represents an average annual total return for the sub-
accounts of all variable annuity and life products within the
Morningstar variable universe having a 60% World Stock, Large Cap,
10% General Bond Intermediate category and a 30% weighting of the
International Bond category. Prior to May 2000 (concurrent with the
Fund's strategy change), the peer group represents the International
Hybrid investment category.
34
Inception: May 1, 1994
Short-Term Bond Fund
Independence Investment LLC Jay Leu
The 2nd quarter was certainly very transitional in nature. Early in the
quarter, the Fed's easing was the market's primary driver. However, a surprise
sudden weakening in economic indicators coupled with severe negative earnings
announcements led to widespread questioning of the "V" shaped recovery and an
aggressive response from the Federal Reserve in the form of an additional 125
basis point reduction in the funds rate.
The Investment Grade Corporate sector posted excellent performance again
during the quarter, making year to date performance for Corporate bonds one of
the best periods in recent memory. Investors have responded positively to the
generous yield levels available in the sector, allowing yield spreads to
tighten in the face of record issuance. The Lehman 1-3 year Credit index
outperformed comparable maturity Treasuries by 44 basis points over the
quarter. Initially, industrial and finance issues both outperformed, but the
former posted a stronger finish as investors clamored for higher yielding,
more cyclical issues later in the quarter.
The fund posted a total return of 1.38% during the quarter, marginally
underperforming its benchmark, which returned 1.45% for the period. The slight
lag was a function of the portfolio's exposure to other high quality spread
sectors, which posted lower outperformance versus Treasuries for the period.
Additionally, the portfolio's lower rated holdings are in the more defensive
sectors such as energy, consumer non-cyclical and healthcare, which
underperformed the more cyclical issues during the quarter. Securities that
posted the best performance include: Gulf Canada, Lehman Brothers, First
Union, Household International, Citicorp, Tenet Healthcare, Philip Morris and
HCA Inc.
Spread sectors will likely moderately outperform for the balance of the year.
It seems likely that the manic buying and tightening activity (particularly in
Corporates) has largely abated. Most of the prospective outperformance will
come from "coupon clipping". Defensive sectors will likely lead performance,
particularly if growth does not rebound as quickly as the market expects.
[GRAPH]
Historical Fund Return
$10,000
Investment made 5/1/94
(Fund Inception Date)
Short-Term Short-Term
Date Bond Fund Bond Benckmark (1)
---- ---------- --------------------
5/1/1994 10,000 10,000
5/31/1994 9,995 10,013
6/30/1994 10,010 10,032
7/31/1994 10,109 10,137
8/31/1994 10,125 10,171
9/30/1994 10,076 10,117
10/31/1994 10,074 10,129
11/30/1994 10,030 10,074
12/31/1994 10,030 10,102
1/31/1995 10,168 10,258
2/28/1995 10,327 10,431
3/31/1995 10,366 10,489
4/30/1995 10,467 10,597
5/31/1995 10,691 10,844
6/30/1995 10,772 10,908
7/31/1995 10,776 10,935
8/31/1995 10,844 11,011
9/30/1995 10,889 11,072
10/31/1995 10,992 11,181
11/30/1995 11,094 11,300
12/31/1995 11,185 11,400
1/31/1996 11,277 11,502
2/29/1996 11,185 11,420
3/31/1996 11,145 11,385
4/30/1996 11,118 11,374
5/31/1996 11,126 11,381
6/30/1996 11,210 11,476
7/31/1996 11,242 11,516
8/31/1996 11,261 11,544
9/30/1996 11,394 11,669
10/31/1996 11,526 11,827
11/30/1996 11,612 11,940
12/31/1996 11,594 11,910
1/31/1997 11,646 11,964
2/28/1997 11,659 11,983
3/31/1997 11,633 11,954
4/30/1997 11,731 12,068
5/31/1997 11,810 12,154
6/30/1997 11,891 12,248
7/31/1997 12,055 12,426
8/31/1997 12,036 12,408
9/30/1997 12,143 12,522
10/31/1997 12,241 12,636
11/30/1997 12,242 12,663
12/31/1997 12,330 12,758
1/31/1998 12,463 12,906
2/28/1998 12,462 12,903
3/31/1998 12,509 12,952
4/30/1998 12,565 13,013
5/31/1998 12,624 13,089
6/30/1998 12,678 13,155
7/31/1998 12,734 13,216
8/31/1998 12,868 13,339
9/30/1998 13,004 13,523
10/31/1998 12,993 13,554
11/30/1998 13,023 13,591
12/31/1998 13,053 13,645
1/31/1999 13,078 13,721
2/28/1999 13,037 13,673
3/31/1999 13,110 13,781
4/30/1999 13,151 13,841
5/31/1999 13,122 13,824
6/30/1999 13,159 13,867
7/31/1999 13,187 13,896
8/31/1999 13,230 13,927
9/30/1999 13,326 14,028
10/31/1999 13,367 14,079
11/30/1999 13,411 14,120
12/31/1999 13,435 14,139
1/31/2000 13,440 14,146
2/29/2000 13,524 14,248
3/31/2000 13,595 14,318
4/30/2000 13,634 14,329
5/31/2000 13,683 14,380
6/30/2000 13,839 14,536
7/31/2000 13,924 14,629
8/31/2000 14,027 14,741
9/30/2000 14,153 14,856
10/31/2000 14,186 14,936
11/30/2000 14,333 15,081
12/31/2000 14,505 15,266
1/31/2001 14,704 15,501
2/28/2001 14,826 15,625
3/31/2001 14,934 15,753
4/30/2001 14,980 15,809
5/31/2001 15,065 15,918
6/30/2001 15,124 15,983
Top Ten Holdings (as of June 30, 2001)
------------------------------------------------------------------------------
% of six months ago
investments % of investments
Federal National Mortgage Assoc. 20.6% 2.8%
U.S. Treasury 13.6% 1.9%
Quebec Province Canada 3.6% N/A
Premier Auto Trust 3.1% N/A
General Electric Capital Corp. 3.1% N/A
Province of Ontario 2.9% N/A
Ford Motor Credit Co. 2.4% 1.4%
Ford Credit Auto Owner Trust 2.4% N/A
Residential Funding and Mortgage Sec. 2.2% N/A
Household Finance Corp. 1.9% 0.9%
Average Annual Total Returns*
------------------------------------------------------------------------------
Short-Term Short-Term MorningStar
Bond Fund Bond Benchmark(1) Peer Group+
--------------- --------------------- -----------
YTD** 4.23% 4.69% 3.50%
1 Year 9.26 9.95 8.40
3 Years 6.05 6.70 5.45
5 Years 6.17 6.85 6.51
Since Inception (5/1/94) 5.94 6.76 N/A
Fund Composition (as of June 30, 2001)
------------------------------------------------------------------------------
Credit Quality Duration
Short Term 4.64% (less than) 1 Year 33.27%
AAA 48.91% 1-3 Years 52.35%
AA 5.79% 3-5 Years 13.97%
A 26.19% 5-10 Years .41%
BBB 13.71%
BB .76%
(1) Short-Term Bond Index represents the Merrill Lynch 1-5 year
Government Bond from May 1994 to April 1998, 65% Lehman Brothers 1-
3 year Credit Bond. 35% Lehman Brothers 1-3 year Government Index,
May 1998 to present.
* Total returns are for the period ended June 30, 2001. Returns
represent past performance, assume reinvestment of all
distributions and are not indicative of future performance.
"Results may have been achieved during market conditions or
pursuing performance opportunities that may not continue to occur
in the future." Investment returns and principal value of fund
shares will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost. The performance of the fund
on this page is reported net of Trust level charges (i.e.
investment management fees and operating expenses). It does not
reflect expense and charges of the applicable separate accounts and
variable products, all of which vary to a considerable extent and
are described in your product prospectus.
** Year-to-date total returns not annualized.
+ Source: MorningStar, Inc. Data as of 6/30/01. Although gathered
from reliable sources, data completeness and accuracy cannot be
guaranteed. Represents an average annual total return for all
variable annuity and life sub-accounts within the Morningstar
variable universe having a Short-Term Bond Investment category.
Prior to May 1998 (concurrent with the Fund's strategy change), the
peer group represents the Short Term Government Bond category.
35
Inception: May 1, 1998
Bond Index Fund
Mellon Bond Associates, LLP Gregory Curran
The fund continues to meet its investment objective of matching the
performance of the benchmark index. The benchmark includes U.S. dollar-based,
fixed-coupon debt from the U.S. Government, its agencies, including mortgage
backed securities, and investment-grade credit securities. Performance net of
fees for the portfolio was 0.45% for the second quarter, 10.98% for the year
ending June and 6.06% (annualized) since inception in May 1998. Corresponding
returns for the benchmark(/1/) were 0.56%, 11.29% and 6.40%. The fund uses a
representative sample of issues selected through proprietary quantitative
techniques. Selected issues have the best risk-adjusted expected return and,
as a group, match the characteristics of the 6,400 issues in the Index
including price sensitivity, sector, industry, coupon, and credit quality
exposures. An indexed portfolio typically eliminates many risks associated
with active management and has lower fees and expenses.
The benchmark conversion from the Lehman Government Credit Index to the
Lehman Aggregate Index occurred during the first quarter and was fine tuned in
the second quarter. The Aggregate Index outperformed the Government Credit
Index by 26 basis points (0.26%) this quarter while taking on less interest
rate and credit risk. The effective duration of the Aggregate Index was 4.75
at quarter end while the Government Credit Index was 5.47. The inclusion of
mortgage backed securities in the Aggregate Index results in a lower effective
duration because mortgage holders have the option to prepay their mortgages,
either because they refinance, move or simply pay off the loan. This
prepayment is passed on to investors in the form of returned principal,
causing the average maturity to be shorter than the typical 15 year or 30 year
final maturity.
Historical Fund Return
[GRAPH]
$10,000
Investment made 5/1/98
(Fund Inception Date)
Date Bond Index Fund Bond Index Benchmark(1)
---- --------------- -----------------------
5/01/1998 10,000 10,000
5/31/1998 10,102 10,107
6/30/1998 10,211 10,210
7/31/1998 10,220 10,218
8/31/1998 10,461 10,418
9/30/1998 10,757 10,715
10/31/1998 10,689 10,639
11/30/1998 10,703 10,703
12/31/1998 10,720 10,729
1/31/1999 10,795 10,805
2/28/1999 10,521 10,548
3/31/1999 10,584 10,601
4/30/1999 10,609 10,627
5/31/1999 10,485 10,518
6/30/1999 10,450 10,485
7/31/1999 10,420 10,456
8/31/1999 10,414 10,447
9/30/1999 10,497 10,541
10/31/1999 10,514 10,569
11/30/1999 10,513 10,562
12/31/1999 10,445 10,498
1/31/2000 10,425 10,495
2/29/2000 10,551 10,626
3/31/2000 10,713 10,779
4/30/2000 10,666 10,726
5/31/2000 10,640 10,717
6/30/2000 10,855 10,935
7/31/2000 10,957 11,051
8/31/2000 11,123 11,207
9/30/2000 11,165 11,250
10/31/2000 11,245 11,320
11/30/2000 11,445 11,514
12/31/2000 11,678 11,741
1/31/2001 11,840 11,938
2/28/2001 11,942 12,042
3/31/2001 11,993 12,102
4/30/2001 11,938 12,051
5/31/2001 12,008 12,124
6/30/2001 12,047 12,170
Top Ten Holdings (as of June 30, 2001)
------------------------------------------------------------------------------
% of six months ago
investments % of investments
U.S. Treasury 24.0% 27.7%
Federal National Mortgage Assoc. 18.2% 2.9%
Federal Home Loan Mortgage Corp. 17.0% 3.7%
Government National Mortgage Assoc. 8.1% N/A
Federal Home Loan Bank 2.5% 0.4%
Morgan Stanley Capital, Inc. 1.5% N/A
General Motors Acceptance Corp. 1.0% 0.5%
Associates Corp. of North America 0.9% N/A
Federal Home Loan Bank Discount Note 0.8% N/A
Province of Ontario 0.6% 0.3%
Average Annual Total Returns*
------------------------------------------------------------------------------
Bond Index Bond Index MorningStar
Fund Benchmark(1) Peer Group+
----------- ------------ -----------
YTD** 3.16% 3.65% 3.17%
1 Year 10.98 11.29 8.66
3 Years 5.67 6.03 4.75
Since Inception (5/1/98) 6.06 6.40 N/A
Fund Composition (as of June 30, 2001)
------------------------------------------------------------------------------
Credit Quality Duration
Short Term 0.50% less than 1 Year 4.50%
AAA 75.00% 1-3 Years 12.40%
AA 6.40% 3-5 Years 17.80%
A 10.10% 5-10 Years 49.80%
BBB 8.00% greater than 10 Years 15.50%
(1) The benchmark is the Lehman Government Credit Index from May 1998
through January 2001, linked to the Lehman Aggregate Index from
February 2001 going forward.
* Total returns are for the period ended June 30, 2001. Returns
represent past performance, assume reinvestment of all distributions
and are not indicative of future performance. "Results may have been
achieved during market conditions or pursuing performance
opportunities that may not continue to occur in the future."
Investment returns and principal value of fund shares will fluctuate
so that shares, when redeemed, may be worth more or less than their
original cost. Small-company investing entails special risks as
outlined in the prospectus. The performance of the fund on this page
is reported net of Trust level charges (i.e. investment management
fees and operating expenses). It does not reflect expense and
charges of the applicable separate accounts and variable products,
all of which vary to a considerable extent and are described in your
product prospectus.
** Year-to-date total returns not annualized.
+ Source: MorningStar, Inc. Data are as of 6/30/01. Although gathered
from reliable sources, data completeness and accuracy cannot be
guaranteed. Represents an average annual total return for all
variable annuity and life sub-accounts within the Morningstar
variable universe having a General Bond Intermediate High Quality
investment category.
36
Inception: March 29, 1986
Active Bond Fund
John Hancock Advisers, Inc. James Ho
During the quarter, the portfolio gained 0.93%, outperforming the Lehman
Aggregate Index at 0.56% by 37 basis points.
The portfolio's overweight position in investment grade corporate bonds and
underweight position in Treasuries relative to the index added to performance
results during the quarter.
As high yield bonds were the worst performing sector during the period, the
portfolio's overweight position relative to the index detracted from
performance results. Year-to-date, however, the portfolio's overweighting in
high yield bonds has added to performance results.
In the near-term, we will continue to maintain above average liquidity in the
portfolio, with an overweight position in better quality, more defensive
names. Very recently, we've included some of the economically sensitive
sectors, such as autos and financials, though the move has not been a dramatic
one. We will maintain our slightly shorter duration position, as we expect the
yield curve to flatten as the economy improves. We'll continue to look for
attractive values among lower-rated investment grade issues. Our slight
underweighting in mortgage securities is likely to remain constant, and we are
beginning to emphasize more defensive securities with higher coupons of
between 7% and 7.5%. We have increased our emerging market position slightly
and continue to look closely at this sector as it may present opportunities in
the near-term, especially if the U.S. economy rebounds.
[GRAPH]
Historical Fund Return
$10,000
Investment made 7/1/91
(10-Year Period)
Date Active Bond Fund Active Bond Benchmark(1)
---- ---------------- ------------------------
7/1/1991 10,000 10,000
7/31/1991 10,107 10,126
8/31/1991 10,337 10,359
9/30/1991 10,547 10,575
10/31/1991 10,650 10,670
11/30/1991 10,739 10,776
12/31/1991 11,074 11,139
1/31/1992 10,967 10,975
2/29/1992 10,996 11,033
3/31/1992 10,968 10,972
4/30/1992 11,039 11,038
5/31/1992 11,223 11,252
6/30/1992 11,369 11,417
7/31/1992 11,643 11,710
8/31/1992 11,770 11,814
9/30/1992 11,928 11,975
10/31/1992 11,783 11,791
11/30/1992 11,746 11,781
12/31/1992 11,923 11,983
1/31/1993 12,136 12,245
2/28/1993 12,388 12,499
3/31/1993 12,456 12,542
4/30/1993 12,534 12,638
5/31/1993 12,527 12,632
6/30/1993 12,784 12,919
7/31/1993 12,892 13,001
8/31/1993 13,165 13,300
9/30/1993 13,230 13,347
10/31/1993 13,244 13,402
11/30/1993 13,144 13,250
12/31/1993 13,206 13,309
1/31/1994 13,398 13,508
2/28/1994 13,153 13,214
3/31/1994 12,873 12,890
4/30/1994 12,759 12,783
5/31/1994 12,737 12,760
6/30/1994 12,724 12,731
7/31/1994 12,930 12,985
8/31/1994 12,961 12,990
9/30/1994 12,810 12,794
10/31/1994 12,789 12,780
11/30/1994 12,765 12,757
12/31/1994 12,867 12,841
1/31/1995 13,112 13,088
2/28/1995 13,425 13,392
3/31/1995 13,530 13,481
4/30/1995 13,726 13,669
5/31/1995 14,317 14,241
6/30/1995 14,439 14,355
7/31/1995 14,377 14,299
8/31/1995 14,543 14,482
9/30/1995 14,689 14,630
10/31/1995 14,928 14,845
11/30/1995 15,152 15,090
12/31/1995 15,382 15,312
1/31/1996 15,473 15,407
2/29/1996 15,175 15,080
3/31/1996 15,083 14,954
4/30/1996 15,006 14,850
5/31/1996 15,003 14,825
6/30/1996 15,155 15,024
7/31/1996 15,203 15,058
8/31/1996 15,214 15,022
9/30/1996 15,490 15,290
10/31/1996 15,819 15,646
11/30/1996 16,067 15,934
12/31/1996 16,013 15,757
1/31/1997 16,073 15,776
2/28/1997 16,149 15,809
3/31/1997 15,978 15,621
4/30/1997 16,196 15,849
5/31/1997 16,378 15,996
6/30/1997 16,593 16,188
7/31/1997 17,090 16,684
8/31/1997 16,923 16,497
9/30/1997 17,197 16,756
10/31/1997 17,345 17,024
11/30/1997 17,441 17,114
12/31/1997 17,632 17,294
1/31/1998 17,874 17,538
2/28/1998 17,859 17,503
3/31/1998 17,960 17,557
4/30/1998 18,047 17,645
5/31/1998 18,208 17,833
6/30/1998 18,382 18,015
7/31/1998 18,417 18,030
8/31/1998 18,598 18,381
9/30/1998 19,024 18,907
10/31/1998 18,846 18,773
11/30/1998 19,027 18,885
12/31/1998 19,084 18,931
1/31/1999 19,259 19,065
2/28/1999 18,864 18,611
3/31/1999 18,999 18,704
4/30/1999 19,058 18,751
5/31/1999 18,852 18,558
6/30/1999 18,805 18,501
7/31/1999 18,767 18,449
8/31/1999 18,730 18,434
9/30/1999 18,897 18,600
10/31/1999 18,935 18,669
11/30/1999 19,002 18,667
12/31/1999 18,904 18,577
1/31/2000 18,825 18,516
2/29/2000 19,037 18,740
3/31/2000 19,229 18,987
4/30/2000 19,155 18,932
5/31/2000 19,138 18,923
6/30/2000 19,540 19,316
7/31/2000 19,696 19,492
8/31/2000 19,995 19,775
9/30/2000 20,107 19,899
10/31/2000 20,214 20,031
11/30/2000 20,483 20,359
12/31/2000 20,880 20,738
1/31/2001 21,222 21,076
2/28/2001 21,398 21,259
3/31/2001 21,497 21,366
4/30/2001 21,421 21,276
5/31/2001 21,569 21,404
6/30/2001 21,636 21,485
Top Ten Holdings (as of June 30, 2001)
------------------------------------------------------------------------------
--
% of six months ago
investments % of investments
Government National Mortgage Assoc. 17.6% 21.5%
Federal National Mortgage Assoc. 13.7% 10.2%
U.S. Treasury 7.8% 17.9%
Amresco Residential Securities 1.0% 1.0%
GMAC Commercial Mortgage Securities, Inc. 1.0% 1.3%
UCFC Home Equity Loan 0.9% 1.5%
Household Financial Corp. 0.9% N/A
Cleveland Electric Illuminating Co. 0.8% 0.8%
New York Life Insurance Co. 0.7% 0.7%
CSC Holdings, Inc. 0.7% 0.3%
Average Annual Total Returns*
----------------------------------------------------------------------------
Active Bond Active Bond MoringStar
Fund Benchmark(1) Peer Group+
------------ ------------ -----------
YTD** 3.63% 3.60% 3.17%
1 Year 10.73 11.23 8.66
3 Years 5.58 6.05 4.75
5 Years 7.38 7.42 6.55
10 Years 8.02 7.75 7.65
Fund Composition (as of June 30, 2001)
----------------------------------------------------------------------------
Credit Quality Duration
Short Term 5.90% less than 1 Year 7.10%
AAA 43.70% 1-3 Years 5.50%
AA 4.10% 3-5 Years 26.20%
A 11.40% 5-10 Years 44.40%
BBB 23.20% greater than 10 Years 16.80%
BB 7.60%
B 3.20%
NR/NA .90%
(1) The Active Bond Benchmark represents the Lehman Brothers
Government/Corporate Bond Index from April 1986 to September 1999
and Lehman Brothers Aggregate Bond Index from October 1999 to
present.
* Total returns are for the period ended June 30, 2001, returns
represent past performance, assume reinvestment of all
distributions, and are not indicative of future performance.
"Results may have been achieved during market conditions or
pursuing performance opportunities that may not continue to occur
in the future." Investment returns and principal value of fund
shares will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost. The performance of the fund
on this page is reported net of Trust level charges (i.e.
investment management fees and operating expenses). It does not
reflect expense and charges of the applicable separate accounts and
variable products, all of which vary to a considerable extent and
are described in your product prospectus.
** Year-to-date total returns not annualized.
+ Source: MorningStar, Inc. Data as of 6/30/01. Although gathered
from reliable sources, data completeness and accuracy cannot be
guaranteed. Represents an average annual total return for all
variable annuity and life sub-accounts within the Morningstar
variable universe having an Intermediate Term Bond investment
category.
37
Inception: June 30, 2000
Active Bond II Fund (Formerly Core Bond Fund)
John Hancock Advisers, Inc. James Ho
Effective January 1, 2001 John Hancock Advisors. Inc. assumed management of
the Fund.
During the quarter the portfolio gained 0.46%, underperforming the Lehman
Aggregate Index at 0.56% by 10 basis points.
The portfolio's overweight position in investment grade corporate bonds and
underweight position in Treasuries relative to the index added to performance
results during the quarter.
As high yield bonds were the worst performing sector during the period, the
portfolio's overweight position relative to the index detracted from
performance results. Year-to-date, however the portfolio's overweighting in
high yield bonds has added to performance results.
In the near-term, we will continue to maintain above average liquidity in the
portfolio, with an overweight position in better quality, more defensive
names. Very recently, we've included some of the economically sensitive
sectors, such as autos and financials, though the move has not been a dramatic
one. We will maintain our slightly shorter duration position, as we expect the
yield curve to flatten as the economy improves. We'll continue to look for
attractive values among lower-rated investment grade issues. Our slight
underweighting in mortgage securities is likely to remain constant, and we are
beginning to emphasize more defensive securities with higher coupons of
between 7% and 7.5%. We have increased our emerging market position slightly
and continue to look closely at this sector as it may present opportunities in
the near-term, especially if the U.S. economy rebounds.
[GRAPH]
Historical Fund Return
$10,000
Investment made 6/30/00
(Fund Inception Date)
Lehman Brothers
Active Bond II Aggregate
Date Fund Bond Index
---- ----------- ---------------
6/30/2000 10,000 10,000
10,076 10,091
10,214 10,237
10,278 10,302
10,339 10,370
10,511 10,540
12/31/2000 10,700 10,736
10,891 10,911
10,960 11,006
11,008 11,061
10,952 11,014
11,020 11,080
6/30/2001 11,046 11,123
Top Ten Holdings (as of June 30, 2001)
------------------------------------------------------------------------------
% of six months ago
investments % of investments
Federal National Mortgage Assoc. 24.8% 33.2%
U.S. Treasury 11.9% 13.6%
Government National Mortgage Assoc. 9.3% 6.7%
Federal Home Loan Mortgage Corp. 4.3% 3.3%
Target Corp. 1.7% 1.7%
General Motors Acceptance Corp. 1.7% 1.7%
United Airlines 1.7% 1.7%
TOSCO Corp. 1.7% 1.7%
General Electric Capital Corp. 1.7% 1.7%
International Speedway Corp. 1.7% 1.7%
Average Annual Total Returns*
------------------------------------------------------------------------------
Active Bond II Lehman Brothers MorningStar
Fund Aggregate Bond Peer Group+
-------------- --------------- ----------
YTD** 3.24% 3.60% 3.17%
1 Year 10.46 11.23 8.66
Since Inception (6/30/00) 10.46 11.23 N/A
Fund Composition (as of June 30, 2001)
------------------------------------------------------------------------------
Credit Quality Duration
Short Term 7.20% less than 1 Year 7.20%
AAA 52.90% 1-3 Years 12.20%
AA 2.80% 3-5 Years 25.40%
A 12.00% 5-10 Years 42.30%
BBB 19.10% greater than 10 Years 12.90%
BB 3.30%
B 2.40%
NR/NA .30%
* Total returns are for the period ended June 30, 2001. Returns
represent past performance, assume reinvestment of all distributions
and are not indicative of future performance. "Results may have been
achieved during market conditions or pursuing performance
opportunities that may not continue to occur in the future."
Investment returns and principal value of fund shares will fluctuate
so that shares, when redeemed, may be worth more or less than their
original cost. The performance of the fund on this page is reported
net of Trust level charges (i.e. investment management fees and
operating expenses). It does not reflect expense and charges of the
applicable separate accounts and variable products, all of which
vary to a considerable extent and are described in your product
prospectus.
** Year-to-date total returns not annualized.
Source: MorningStar, Inc. Data as of 6/30/01. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for all variable annuity and
life sub-accounts within the Morningstar variable universe having a
Intermediate Term Bond investment category.
+ Source: MorningStar, Inc. Data as of 6/30/01. Although gathered from
reliable sources, data completeness and accuracy cannot be
guaranteed. Represents an average annual total return for all
variable annuity and life sub-accounts within the Morningstar
variable universe having an Intermediate-Term Bond investment
category.
38
Inception: May 1, 1998
High Yield Bond Fund
Wellington Management Company, LLP Crawford/Smith/McEvoy
During the quarter, the Fund decreased -2.9% compared to a -2.3% return of
the Lehman High Yield Index. For the first half of the year, the return on the
Fund has been 5.33%, compared to the 3.93% return of the Lehman HY Index.
The high yield market had an unusual quarter. The Lehman HY Index had a
return of -2.3%, trailing the 0.6% return of the Lehman Aggregate (a proxy for
investment grade bonds). Yet, while underperforming, the spread of the high
yield market still tightened from 763 basis points to 730 basis points over
the 10 year US Treasury during the quarter. This phenomenon resulted, in large
part, because of the high amount of defaults during the quarter. A high yield
issue is removed from the Lehman HY index when it defaults, often reducing the
yield of the index since the issue was most likely distressed in the previous
months. A period of high defaults can cause the removal of many high-yielding
issues, reducing the yield of the market, but not delivering a commensurate
return. During the quarter, holdings in 4 issuers defaulted. We continue to
hold the securities of these companies based on current depressed valuations,
but with a preference of minimizing non-paying securities.
The second quarter of 2001 saw higher-quality high yield bonds get back to
outperforming lower quality high yield bonds by a large margin. Within high
yield, lower quality ("B-rated") issues underperformed higher quality bonds
("BB-rated") for the quarter.
As we look ahead, our strategy remains the same. We will continue to adhere
to our long-running preference for issuers that have recurring revenue from
repeat customers. To that end, telecommunications and cable continue to be two
of the largest industry weightings in the Fund.
[GRAPH]
Historical Fund Return
$10,000
Investment made 5/1/98
(Fund Inception Date)
Lehman Brothers
High Yield
Date High-Yield Bond Fund Bond Index
---- -------------------- ---------------
5/1/1998 10,000 10,000
5/31/1998 9,987 10,035
6/30/1998 10,028 10,071
7/31/1998 10,075 10,129
8/31/1998 9,309 9,569
9/30/1998 9,280 9,612
10/31/1998 9,120 9,415
11/30/1998 9,802 9,806
12/31/1998 9,702 9,817
1/31/1999 9,875 9,962
2/28/1999 9,884 9,903
3/31/1999 10,061 9,998
4/30/1999 10,214 10,192
5/31/1999 9,992 10,054
6/30/1999 9,989 10,033
7/31/1999 9,993 10,073
8/31/1999 9,924 9,961
9/30/1999 9,874 9,889
10/31/1999 9,806 9,824
11/30/1999 10,089 9,940
12/31/1999 10,200 10,051
1/31/2000 10,132 10,008
2/29/2000 10,123 10,027
3/31/2000 9,876 9,817
4/30/2000 9,945 9,832
5/31/2000 9,777 9,731
6/30/2000 10,006 9,930
7/31/2000 10,121 10,005
8/31/2000 10,203 10,073
9/30/2000 9,974 9,985
10/31/2000 9,578 9,666
11/30/2000 9,016 9,283
12/31/2000 9,097 9,462
1/31/2001 9,829 10,171
2/28/2001 10,014 10,306
3/31/2001 9,866 10,063
4/30/2001 9,755 9,938
5/31/2001 9,951 10,117
6/30/2001 9,582 9,834
Top Ten Holdings (as of June 30, 2001)
------------------------------------------------------------------------------
% of six months ago
investments % of investments
Allied Waste North America 2.0% N/A
Charter Communications Holdings, LLC 1.9% 0.8%
Nextel Communications, Inc. 1.9% 1.4%
Time Warner Telecom, Inc. 1.9% N/A
Calpine Corp. 1.9% N/A
EchoStar DBS Corp. 1.9% 1.0%
Amkor Technologies, Inc. 1.8% N/A
Fairchild Semiconductor Corp. 1.7% 0.9%
Alaris Medical Systems, Inc. 1.6% N/A
Global Crossing Holdings, Ltd. 1.6% 0.3%
Average Annual Total Returns*
------------------------------------------------------------------------------
High Yield L/B High-
Yield MorningStar
Bond Fund Bond Index Peer Group+
------------ ---------------- -----------
-
YTD** 5.33% 3.93% 1.35%
1 Year -4.25 -0.96 -4.14
3 Years -1.51 -0.79 -2.32
Since Inception (5/1/98) -1.34 -0.53 N/A
Fund Composition (as of June 30, 2001)
------------------------------------------------------------------------------
Credit Quality Duration
Short Term 2.99% less than 1 Year 2.99%
BBB 1.01% 1-3 Years 3.61%
BB 27.86% 3-5 Years 9.55%
B 58.70% 5-10 Years 81.76%
Below B 8.80% greater than 10 Years 1.81%
NR/NA .64% Equity/Other 0.28%
* Total returns are for the period ended June 30, 2001. Returns
represent past performance, assume reinvestment of all distributions
and are not indicative of future performance. "Results may have been
achieved during market conditions or pursuing performance
opportunities that may not continue to occur in the future."
Investment returns and principal value of fund shares will fluctuate
so that shares, when redeemed, may be worth more or less than their
original cost. Small-company investing entails special risks as
outlined in the prospectus. The performance of the fund on this page
is reported net of Trust level charges (i.e. investment management
fees and operating expenses). It does not reflect expense and charges
of the applicable separate accounts and variable products, all of
which vary to a considerable extent and are described in your product
prospectus.
** Year-to-date total returns not annualized.
+ Source: MorningStar, Inc. Data as of 6/30/01. Although gathered from
reliable sources, data completeness and accuracy cannot be
guaranteed. Represents an average annual total return for all
variable annuity and life sub-accounts within the Morningstar
variable universe having a High Yield investment category.
39
Inception: May 1, 1996
Global Bond Fund
Capital Guardian Trust Company Management Team
For the quarter ended June 30, 2001, the Global Bond Fund returned (1.59%),
which was slightly below the Salomon Brothers World Government Bond Index
return of (1.57%).
Overall, significant spread tightening in credit markets in April and much of
May helped relative performance, though government bonds were a drag on
absolute returns. We remained overweight in European bonds, which hurt
returns, though we hedged some of our euro exposure as the common currency
continued to weaken. In Japan, our underweight detracted from performance as
yields fell further.
We began adding mortgage-backed securities in the United States when the
diminishing risk of mortgage prepayments made this area attractive as rates
fell. High-grade as well as high-yield spreads narrowed after investors
anticipated improving corporate profitability in the next six to nine months.
A spate of negative earnings preannouncements from technology companies in May
and June, however, caused corporates to give back some of their earlier gains.
With the Federal Reserve well into its easing cycle and rebates hitting U.S.
taxpayers' mailboxes this summer, we believe government yields have entered a
bottoming phase and we will begin to see economic activity improve. We do not
anticipate maintaining our underweight position on the euro for long as higher
real yields in Europe should eventually favor euro-denominated assets over
dollar-denominated assets. In Japan, we still see very little upside, with 10-
year yields hovering around 1.20% and overnight rates essentially at zero.
As the U.S. and European economies begin to establish a bottom and investors
anticipate longer-term recoveries, we believe mortgage-backed securities in
the United States will outperform, as will U.S. and European corporates. Even
with the most recent pull-back in the corporate sector, we believe this area
still offers the most value and upside potential for investors.
[GRAPH]
Historical Fund Return
$10,000
Investment made 5/1/96
(Fund Inception Date)
Global Bond Global Bond
Date Fund Benchmark (1)
---- ----------- -------------
5/01/1996 10,000 10,000
5/31/1996 9,983 10,002
6/30/1996 10,068 10,123
7/31/1996 10,103 10,163
8/31/1996 10,112 10,184
9/30/1996 10,297 10,371
10/31/1996 10,490 10,587
11/30/1996 10,674 10,775
12/31/1996 10,671 10,704
01/31/1997 10,723 10,763
02/28/1997 10,755 10,801
03/31/1997 10,634 10,697
04/30/1997 10,761 10,847
05/31/1997 10,871 10,938
06/30/1997 11,021 11,082
07/31/1997 11,262 11,351
08/31/1997 11,194 11,281
09/30/1997 11,396 11,456
10/31/1997 11,459 11,599
11/30/1997 11,518 11,661
12/31/1997 11,638 11,787
01/31/1998 11,775 11,939
02/28/1998 11,795 11,958
03/31/1998 11,844 12,015
04/30/1998 11,899 12,078
05/31/1998 12,012 12,206
06/30/1998 12,101 12,296
07/31/1998 12,133 12,344
08/31/1998 12,316 12,556
09/30/1998 12,624 12,852
10/31/1998 12,539 12,796
11/30/1998 12,640 12,886
12/31/1998 12,703 12,910
01/31/1999 12,812 13,019
02/28/1999 12,564 12,826
03/31/1999 12,668 12,917
04/30/1999 12,705 12,990
05/31/1999 12,578 12,912
06/30/1999 12,447 12,766
07/31/1999 12,562 12,739
08/31/1999 12,512 12,753
09/30/1999 12,436 12,818
10/31/1999 12,430 12,844
11/30/1999 12,455 12,887
12/31/1999 12,429 12,889
01/31/2000 12,395 12,899
02/29/2000 12,497 13,029
03/31/2000 12,674 13,245
04/30/2000 12,671 13,279
05/31/2000 12,739 13,357
06/30/2000 12,828 13,473
07/31/2000 12,903 13,575
08/31/2000 12,937 13,638
09/30/2000 13,005 13,717
10/31/2000 13,113 13,832
11/30/2000 13,320 14,107
12/31/2000 13,920 14,613
01/31/2001 13,913 14,594
02/28/2001 13,915 14,588
03/31/2001 13,483 14,168
04/30/2001 13,457 14,117
05/31/2001 13,357 14,074
06/30/2001 13,269 13,945
Top Ten Holdings (as of June 30, 2001)
------------------------------------------------------------------------------
% of six months ago
investments % of investments
U.S. Treasury 10.8% 16.7%
Federal Republic of Germany 9.7% 1.5%
Federal National Mortgage Assoc. 9.3% 8.8%
Government of Japan 6.6% 8.1%
Government of France 4.8% 18.8%
Republic of Finland 4.8% N/A
Bundesrepublic Deutschland 3.9% 2.1%
European Investment Bank 3.8% 2.3%
Kingdom of Spain 3.6% N/A
Kingdom of Netherlands 2.8% N/A
Average Annual Total Returns*
------------------------------------------------------------------------------
Global Bond Global Bond MorningStar
Fund Benchmark(1) Peer Group+
------------- -------------- ------------
YTD** -4.68% -4.57% 0.06%
1 Year 3.44 3.50 5.24
3 Years 3.12 4.28 2.94
5 Years 5.68 6.62 5.20
Since Inception (5/1/96) 5.63 6.65 N/A
Fund Composition (as of June 30, 2001)
------------------------------------------------------------------------------
Credit Quality Duration
Short Term 4.09% less than 1 Year 6.24%
AAA 17.69% 1-3 Years 11.99%
A .87% 3-5 Years 27.01%
BBB 4.03% 5-10 Years 53.75%
B 1.52% greater than 10 Years
Foreign Currency 71.80%
(1) Global Bond Benchmark: 75% Lehman Brothers Aggregate Bond and 25%
J.P. Morgan Non-US Government Bond Index, Hedged, from May 1996 to
April 1999, the J.P. Morgan Global Bond Index (Hedged), May 1999 to
October 2000, and the Salomon Brothers World Government Bond Index,
Unhedged, November 2000 to present.
* Total returns are for the period ended June 30, 2001. Returns
represent past performance, assume reinvestment of all distributions
and are not indicative of future performance. "Results may have been
achieved during market conditions or pursuing performance
opportunities that may not continue to occur in the future."
Investment returns and principal value of fund shares will fluctuate
so that shares, when redeemed, may be worth more or less than their
original cost. There are special risks associated with international
investing including currency fluctuations, political and economic
instability, foreign taxation and different accounting standards, as
outlined in the current prospectus. The performance of the fund on
this page is reported net of Trust level changes (i.e. investment
management fees and operating expenses). It does not reflect expense
and charges of the applicable separate accounts and variable
products, all of which vary to a considerable extent and are
described in your product prospectus.
** Year-to-date total returns not annualized.
+ Source: MorningStar, Inc. Data as of 6/30/01. Although gathered from
reliable sources, data completeness and accuracy cannot be
guaranteed. Represents an average annual total return for all
variable annuity and life sub-accounts within the Morningstar
variable universe having a 75% International Bond and 25% General
Bond Intermediate category. Prior to November 2000, General Bond
Intermediate High Quality investment style and an International Bond
investment style. The peer group represents a 35% weighting of the
General Bond Intermediate High Quality category and a 65% weighting
of the International Bond category. Prior to May 1999 (concurrent
with the Fund's strategy change), the peer group represents a 75%
weighting of the General Bond Intermediate High Quality category and
a 25% weighting of the International Bond category.
40
Inception: March 29, 1986
Money Market Fund
Wellington Management Company, LLP John C. Keogh
Effective May 1, 2001, Wellington Management Company, LLP assumed management
of the Fund.
Since we began managing the John Hancock Money Market Fund on May 1, 2001,
the Fund (0.7%) has performed in line with the Fund's benchmark, iMoneyNet
First Tier Institutional Average, which has also gained 0.7%.
Credit concerns continued to affect investment dollars as liquidity flowed
away from those companies with earnings disappointments, litigation, and
management miscues. Corporate management has strategically shifted its
borrowing from short term commercial paper and bank loans toward longer
maturity debt, opting for committed capital despite the higher costs
associated with long term borrowing. This is evidenced by the decline of $146
billion in commercial paper outstanding since the beginning of the year and
the simultaneous surge in bond issuance. Most Money Market Mutual Funds
continue to avoid the problem issuers, especially since the California
utilities' commercial paper defaulted early in the year.
The money market yield curve has shifted from inverted, where longer maturity
yields are lower than short maturity yields, toward a positive slope. This
shift reflects market consensus that we are now at or near the bottom of the
Fed's easing cycle.
Money Market Mutual Funds continue to attract investment flows as market
interest rates declined further. Funds' yields typically lag market rates
lower, offering investors opportunities to invest at attractive levels until
the yields decline to market levels.
The bond market is now anticipating that short term interest rates are near
their cyclical bottom and bond yields have begun to rise. However, we do not
foresee a turn in the Fed's policy direction for the next several months as
they wait to see if these stimulative forces take hold. For this reason, we
are not inclined toward a defensive interest rate posture at this time. We
will continue to invest aggressively with the expectation that short term
rates might still go lower and that there is little risk to the Fed changing
course in the near term.
[GRAPH]
Historical Fund Return
$10,000
Investment made 7/1/91
(10-Year Period)
DATE Money Market Fund
---- -----------------
7/1/1991 10,000
7/31/1991 10,052
8/31/1991 10,099
9/30/1991 10,145
10/31/1991 10,189
12/31/1991 10,189
1/31/1992 10,225
2/29/1992 10,255
3/31/1992 10,290
4/30/1992 10,323
5/31/1992 10,354
6/30/1992 10,389
7/31/1992 10,422
8/31/1992 10,453
9/30/1992 10,483
10/31/1992 10,502
11/30/1992 10,530
12/31/1992 10,560
1/31/1993 10,587
2/28/1993 10,612
3/31/1993 10,641
4/30/1993 10,667
5/31/1993 10,691
6/30/1993 10,720
7/31/1993 10,746
8/31/1993 10,775
9/30/1993 10,801
10/31/1993 10,826
11/30/1993 10,854
12/31/1993 10,883
1/31/1994 10,911
2/28/1994 10,936
3/31/1994 10,965
4/30/1994 10,993
5/31/1994 11,027
6/30/1994 11,063
7/31/1994 11,100
8/31/1994 11,144
9/30/1994 11,186
10/31/1994 11,225
11/30/1994 11,270
12/31/1994 11,318
1/31/1995 11,372
2/28/1995 11,422
3/31/1995 11,478
4/30/1995 11,529
5/31/1995 11,589
6/30/1995 11,643
7/31/1995 11,699
8/31/1995 11,754
9/30/1995 11,806
10/31/1995 11,862
11/30/1995 11,917
12/31/1995 11,973
1/31/1996 12,029
2/29/1996 12,079
3/31/1996 12,127
4/30/1996 12,181
5/31/1996 12,234
6/30/1996 12,282
7/31/1996 12,339
8/31/1996 12,392
9/30/1996 12,447
10/31/1996 12,502
11/30/1996 12,554
12/31/1996 12,612
1/31/1997 12,667
2/28/1997 12,718
3/31/1997 12,774
4/30/1997 12,829
5/31/1997 12,887
6/30/1997 12,944
7/31/1997 13,003
8/31/1997 13,062
9/30/1997 13,120
10/31/1997 13,180
11/30/1997 13,239
12/31/1997 13,300
1/31/1998 13,362
2/28/1998 13,417
3/31/1998 13,478
4/30/1998 13,537
5/31/1998 13,599
6/30/1998 13,659
7/31/1998 13,721
8/31/1998 13,783
9/30/1998 13,844
10/31/1998 13,905
11/30/1998 13,964
12/31/1998 14,024
1/31/1999 14,083
2/28/1999 14,134
3/31/1999 14,190
4/30/1999 14,244
5/31/1999 14,301
6/30/1999 14,356
7/31/1999 14,415
8/31/1999 14,475
9/30/1999 14,535
10/31/1999 14,599
11/30/1999 14,663
12/31/1999 14,733
1/31/2000 14,804
2/29/2000 14,870
3/31/2000 14,941
4/30/2000 15,012
5/31/2000 15,090
6/30/2000 15,168
7/31/2000 15,250
8/31/2000 15,333
9/30/2000 15,414
10/31/2000 15,495
11/30/2000 15,577
12/31/2000 15,662
1/31/2001 15,744
2/28/2001 15,813
3/31/2001 15,884
4/30/2001 15,945
5/31/2001 16,004
6/30/2001 16,058
Top Ten Holdings (as of June 30, 2001)
------------------------------------------------------------------------------
% of six months ago
investments % of investments
Federal Home Loan Bank Note 7.1% N/A
SBC WARBURG REPO 5.0% N/A
General Electric Capital Corp. 3.8% 3.1%
Branch Banking & Trust Co. 3.3% N/A
Falcon Asset Securitization 3.2% N/A
Federal National Mortgage Assoc. 3.2% N/A
LaSalle Bank NA 3.1% N/A
Merck & Co., Inc. 3.1% N/A
Gannett, Inc. 3.1% N/A
President & Fellows Harvard Co. 3.0% N/A
Average Annual Total Returns*
------------------------------------------------------------------------------
Money Market
Fund(1)
--------------
YTD** 2.51%
1 Year 5.83
3 Years 5.54
5 Years 5.51
10 Years 4.93
Top Ten Sectors (as of June 30, 2001)
------------------------------------------------------------------------------
% of % of
investments investments
Financial 63.0% Capital Equipment 3.3%
Government 10.3% Health Care 3.1%
Consumer Staple 6.2% Retail 3.0%
Rights/Warrants 5.0% Technology 0.7%
Consumer Cyclical 4.9% Utility 0.7%
The Money Market Fund is neither insured nor guaranteed by the U.S.
Government and there is no guarantee the fund will be able to maintain
a stable net asset value of $10.00/share.
(1) Returns reflect extra-ordinary capital contribution of $284,471 in
October 2000.
* Total returns are for the period ended June 30, 2001. Returns
represent past performance, assume reinvestment of all distributions
and are not indicative of future performance. "Results may have been
achieved during market conditions or pursuing performance
opportunities that may not continue to occur in the future." The
performance of the fund on this page is reported net of Trust level
charges (i.e. investment management fees and operating expenses). It
does not reflect expense and charges of the applicable separate
accounts and variable products, all of which vary to a considerable
extent and are described in your product prospectus.
** Year-to-date total returns not annualized.
41
STATEMENT OF ASSETS AND LIABILITIES
JOHN HANCOCK VARIABLE SERIES TRUST I
--------------------------------------------------------------------------------
June 30, 2001 (Unaudited)
--------------------------------------------------------------------------------
(000's Omitted)
Large Cap Fundamental Aggressive Active Active Emerging International International
Growth Growth Balanced Bond Bond II Markets Equity Equity Index Equity
---------- ----------- ---------- ---------- ------- -------------- ------------- -------------
ASSETS
Long term investments
at cost................ $ 879,877 $43,668 $19,821 $ 751,001 $6,036 $ 31,458 $172,212 $22,763
Net unrealized
appreciation
(depreciation) of
investments............ (6,604) (4,054) 362 7,394 74 (5,000) (18,761) (2,759)
Short-term investments
at value............... 37,681 1,186 1,495 300,881 547 1,094 26,881 1,200
---------- ------- ------- ---------- ------ -------- -------- -------
Total investments..... 910,954 40,800 21,678 1,059,276 6,657 27,552 180,332 21,204
Cash................... -- 3 -- 4,508 38 54 1 55
Foreign currency at
value (cost $0, $0, $0,
$0, $0, $344, $127, and
$66, respectively)..... -- -- -- -- -- 345 127 60
Receivable for:
Investments sold...... -- 657 135 11,436 79 88 -- 7
Interest.............. 2 -- 54 10,821 88 68 -- --
Dividends............. 180 12 14 -- -- -- 379 40
Futures contracts
variation margin...... -- -- -- -- -- -- -- 10
Forward foreign
currency exchange
contracts sold........ -- -- -- -- -- -- 12 --
Other assets.......... -- -- -- -- -- -- 2 --
---------- ------- ------- ---------- ------ -------- -------- -------
Total assets........... 911,136 41,472 21,881 1,086,041 6,862 28,107 180,853 21,376
---------- ------- ------- ---------- ------ -------- -------- -------
LIABILITIES
Payables for:
Investments purchased. 12,491 1,114 1,497 22,293 276 353 -- 286
Futures contracts
variation margin...... -- -- -- -- -- -- 11 --
Securities on loan.... 20,023 -- -- 247,041 -- -- 25,718 --
Forward foreign
currency exchange
contracts purchased... -- -- -- -- -- -- 30 --
Forward foreign
currency exchange
contracts sold........ -- -- -- -- -- 98 -- --
Other liabilities..... 740 16 6 410 3 50 -- 4
---------- ------- ------- ---------- ------ -------- -------- -------
Total liabilities...... 33,254 1,130 1,503 269,744 279 501 25,759 290
---------- ------- ------- ---------- ------ -------- -------- -------
Net assets............. $ 877,882 $40,342 $20,378 $ 816,297 $6,583 $ 27,606 $155,094 $21,086
========== ======= ======= ========== ====== ======== ======== =======
Shares of beneficial
interest outstanding... 53,477 4,090 2,087 86,035 635 4,252 11,557 2,519
---------- ------- ------- ---------- ------ -------- -------- -------
Net asset value per
share.................. $ 16.41 $ 9.86 $ 9.76 $ 9.49 $10.37 $ 6.49 $ 13.42 $ 8.37
========== ======= ======= ========== ====== ======== ======== =======
Composition of net
assets:
Capital paid-in....... $1,050,770 $58,489 $21,445 $ 832,574 $6,409 $ 45,340 $174,948 $24,515
Accumulated net
realized gain (loss)
on investments,
futures and foreign
currency transactions. (166,441) (14,000) (1,425) (25,862) 100 (12,675) (639) (685)
Undistributed
(distribution in
excess of) net
investment income
(loss)................ 157 (93) (4) 2,191 -- 44 (426) 18
Net unrealized
appreciation
(depreciation) of:
Investments........... (6,604) (4,054) 362 7,394 74 (5,000) (18,761) (2,759)
Futures............... -- -- -- -- -- -- 9 1
Translation of assets
and liabilities in
foreign currencies.... -- -- -- -- -- (103) (37) (4)
---------- ------- ------- ---------- ------ -------- -------- -------
Net assets............. $ 877,882 $40,342 $20,378 $ 816,297 $6,583 $ 27,606 $155,094 $21,086
========== ======= ======= ========== ====== ======== ======== =======
See notes to financial statements.
42
STATEMENT OF ASSETS AND LIABILITIES--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
--------------------------------------------------------------------------------
June 30, 2001 (Unaudited)
--------------------------------------------------------------------------------
(000's Omitted)
Small Cap Health Global Mid Cap Mid Cap Large Cap Large Cap Large Cap
Growth Sciences Balanced Growth Blend Value Value CORE Value CORE II
--------- -------- -------- --------- ------- --------- ---------- -------------
ASSETS
Long term investments at
cost.................... $193,543 $20,732 $28,446 $ 335,271 $20,788 $198,377 $41,072 $6,427
Net unrealized
appreciation
(depreciation) of
investments............. 1,583 363 (1,865) (41,486) 1,715 17,417 596 137
Short-term investments
at value................ 22,608 1,218 931 20,587 5 14,438 3,200 --
-------- ------- ------- --------- ------- -------- ------- ------
Total investments...... 217,734 22,313 27,512 314,372 22,508 230,232 44,868 6,564
Cash.................... -- -- -- 86 -- -- 264 29
Receivable for:
Investments sold....... 1,582 41 525 334 86 1,305 -- --
Interest............... 1 -- 172 -- -- 1 -- --
Dividends.............. 9 11 27 12 18 289 34 6
Futures contracts
variation margin....... -- -- -- -- -- -- 7 --
Forward foreign
currency exchange
contracts sold......... -- -- 24 -- -- -- -- --
Other assets........... -- -- -- -- -- 1 -- --
-------- ------- ------- --------- ------- -------- ------- ------
Total assets............ 219,326 22,365 28,260 314,804 22,612 231,828 45,173 6,599
-------- ------- ------- --------- ------- -------- ------- ------
LIABILITIES
Payables for:
To custodian........... 300 -- 1 -- -- -- -- --
Investments purchased.. 1,596 173 111 -- -- 1,337 1,177 --
Securities on loan..... 15,318 -- -- 12,189 -- 5,765 -- --
Forward foreign
currency exchange
contracts purchased.... -- -- 27 -- -- -- -- --
Other liabilities...... 59 3 15 68 13 -- 9 3
-------- ------- ------- --------- ------- -------- ------- ------
Total liabilities....... 17,273 176 154 12,257 13 7,102 1,186 3
-------- ------- ------- --------- ------- -------- ------- ------
Net assets.............. $202,053 $22,189 $28,106 $ 302,547 $22,599 $224,726 $43,987 $6,596
======== ======= ======= ========= ======= ======== ======= ======
Shares of beneficial
interest outstanding.... 16,291 2,177 3,188 25,854 1,876 15,393 4,268 621
-------- ------- ------- --------- ------- -------- ------- ------
Net asset value per
share................... $ 12.40 10.19 $ 8.82 $ 11.70 $ 12.04 $ 14.60 $ 10.31 $10.63
======== ======= ======= ========= ======= ======== ======= ======
Composition of net
assets:
Capital paid-in........ $243,011 $21,831 $30,947 $ 503,511 $21,862 $205,528 $43,519 $6,249
Accumulated net
realized gain (loss) on
investments, futures
and foreign currency
transactions........... (42,095) 6 (257) (158,940) (991) 1,722 (131) 210
Undistributed
(distribution in excess
of) net investment
income (loss).......... (446) (11) (706) (538) 13 59 -- --
Net unrealized
appreciation
(depreciation) of:
Investments............ 1,583 363 (1,865) (41,486) 1,715 17,417 596 137
Futures................ -- -- -- -- -- -- 3 --
Translation of assets
and liabilities in
foreign currencies..... -- -- (13) -- -- -- -- --
-------- ------- ------- --------- ------- -------- ------- ------
Net assets.............. $202,053 $22,189 $28,106 $ 302,547 $22,599 $224,726 $43,987 $6,596
======== ======= ======= ========= ======= ======== ======= ======
See notes to financial statements.
43
STATEMENT OF ASSETS AND LIABILITIES--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
--------------------------------------------------------------------------------
June 30, 2001 (Unaudited)
--------------------------------------------------------------------------------
(000's Omitted)
Large/Mid Money Large/Mid Cap Small/Mid Cap Bond Large Cap Small/Mid Cap Small Cap
Cap Value Market Value II Growth Index Aggressive Growth CORE Value
--------- -------- ------------- ------------- ------- ----------------- ------------- ---------
ASSETS
Long term investments
at cost................ $34,451 -- $121,079 $173,354 $78,055 $36,458 $26,120 $48,906
Net unrealized
appreciation
(depreciation) of
investments............ 300 -- (915) 6,289 490 (1,698) 971 5,619
Short-term investments
at value............... 2,037 $458,804 8,029 29,349 1,626 1,006 300 3,994
------- -------- -------- -------- ------- ------- ------- -------
Total investments..... 36,788 458,804 128,193 208,992 80,171 35,766 27,391 58,519
Cash................... -- -- -- -- 788 18 237 --
Receivable for:
Investments sold...... 354 -- 1,056 1,065 -- -- 41 --
Interest.............. -- 618 -- -- 1,007 -- -- 1
Dividends............. 43 -- 191 29 -- 10 26 57
Futures contracts
variation margin...... 2 -- 4 -- -- -- 4 11
------- -------- -------- -------- ------- ------- ------- -------
Total assets........... 37,187 459,422 129,444 210,086 81,966 35,794 27,699 58,588
------- -------- -------- -------- ------- ------- ------- -------
LIABILITIES
Payables for:
To custodian.......... -- -- 6 -- -- -- -- --
Investments purchased. 613 -- 1,866 373 788 160 2 --
Securities on loan.... -- -- 6,461 28,339 -- -- -- --
Other liabilities..... 5 53 9 60 17 5 8 15
------- -------- -------- -------- ------- ------- ------- -------
Total liabilities ..... 618 53 8,342 28,772 805 165 10 15
------- -------- -------- -------- ------- ------- ------- -------
Net assets............. $36,569 $459,369 $121,102 $181,314 $81,161 $35,629 $27,689 $58,573
======= ======== ======== ======== ======= ======= ======= =======
Shares of beneficial
interest outstanding... 3,246 459,369 8,480 13,003 8,326 4,292 2,787 4,245
------- -------- -------- -------- ------- ------- ------- -------
Net asset value per
share.................. $ 11.27 $ 1.00 $ 14.28 $ 13.94 $ 9.75 $ 8.30 $ 9.94 $ 13.80
======= ======== ======== ======== ======= ======= ======= =======
Composition of net
assets:
Capital paid-in....... $35,651 $459,369 $106,971 $175,043 $81,255 $43,197 $27,098 $52,329
Accumulated net
realized gain (loss)
on investments,
futures and foreign
currency transactions. 616 (92) 15,084 257 88 (5,859) (393) 592
Undistributed
(distribution in
excess of) net
investment income
(loss)................ (1) 92 (3) (275) (672) (11) (1) 1
Net unrealized
appreciation
(depreciation) of:
Investments........... 300 -- (915) 6,289 490 (1,698) 971 5,619
Futures............... 3 -- (35) -- -- -- 14 32
------- -------- -------- -------- ------- ------- ------- -------
Net assets............. $36,569 $459,369 $121,102 $181,314 $81,161 $35,629 $27,689 $58,573
======= ======== ======== ======== ======= ======= ======= =======
See notes to financial statements.
44
STATEMENT OF ASSETS AND LIABILITIES--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
--------------------------------------------------------------------------------
June 30, 2001 (Unaudited)
--------------------------------------------------------------------------------
(000's Omitted)
Real Estate Growth & Short-Term Small Cap International Equity High Yield Global
Equity Income Managed Bond Equity Opportunities Index Bond Bond
----------- ---------- ---------- ---------- --------- ------------- -------- ---------- -------
ASSETS
Long term investments
at cost................ $131,899 $2,539,202 $2,488,798 $107,177 $81,967 $102,682 $556,479 $41,135 $57,066
Net unrealized
appreciation
(depreciation) of
investments............ 24,436 221,717 202,511 1,322 (6,601) (19,769) (36,201) (4,951) (1,328)
Short-term investments
at value............... 3,401 55,129 386,707 17,189 567 14,260 18,987 1,554 5,332
-------- ---------- ---------- -------- ------- -------- -------- ------- -------
Total investments..... 159,736 2,816,048 3,078,016 125,688 75,933 97,173 539,265 37,738 61,070
Cash................... -- -- 6,518 -- -- -- 68 403 --
Foreign currency at
value (cost $0, $0,
$0, $0, $0, $3,211,
$0, $0 and $0,
respectively)......... -- -- -- -- -- 3,181 -- -- --
Receivable for:
Investments sold...... 25 13,303 8,325 3,683 387 469 -- 93 373
Interest.............. -- 5 10,298 1,336 -- -- 2 1,172 918
Dividends............. 920 2,026 1,439 -- 35 160 387 -- --
Futures contracts
variation margin...... -- -- -- -- -- -- 66 -- --
Forward foreign
currency exchange
contracts sold........ -- -- 1,852 -- -- -- -- -- 215
-------- ---------- ---------- -------- ------- -------- -------- ------- -------
Total assets........... 160,681 2,831,382 3,106,448 130,707 76,355 100,983 539,788 39,406 62,576
-------- ---------- ---------- -------- ------- -------- -------- ------- -------
LIABILITIES
Payables for:
To custodian.......... -- -- 3,186 -- 11 -- -- -- --
Investments purchased. 20 19,727 327,088 3,681 107 203 547 935 203
Securities on loan.... -- 9,945 43,710 11,816 -- 13,433 -- -- 4,186
Forward foreign
currency exchange
contracts purchased... -- -- 1,258 -- -- -- -- -- 76
Other liabilities..... 32 1,720 1,342 26 6 14 94 8 2
-------- ---------- ---------- -------- ------- -------- -------- ------- -------
Total liabilities...... 52 31,392 376,584 15,523 124 13,650 641 943 4,467
-------- ---------- ---------- -------- ------- -------- -------- ------- -------
Net assets............. $160,629 $2,799,990 $2,729,864 $115,184 $76,231 $ 87,333 $539,147 $38,463 $58,109
======== ========== ========== ======== ======= ======== ======== ======= =======
Shares of beneficial
interest outstanding... 11,258 217,626 203,150 11,531 8,016 8,823 32,952 5,214 5,896
-------- ---------- ---------- -------- ------- -------- -------- ------- -------
Net asset value per
share.................. $ 14.27 $ 12.87 $ 13.44 $ 9.99 $ 9.51 $ 9.90 $ 16.36 $ 7.38 $ 9.86
======== ========== ========== ======== ======= ======== ======== ======= =======
Composition of net
assets:
Capital paid-in....... $133,527 $2,963,174 $2,571,337 $115,862 $87,314 $110,611 $563,431 $45,085 $60,689
Accumulated net
realized gain (loss)
on investments,
futures and foreign
currency transactions. 1,890 (385,265) (85,654) (1,777) (4,481) (3,512) 12,451 (1,634) (3,885)
Undistributed
(distribution in
excess of) net
investment income
(loss)................ 776 364 41,073 (223) (1) 43 (19) (37) 2,527
Net unrealized
appreciation
(depreciation) of:
Investments........... 24,436 221,717 202,511 1,322 (6,601) (19,769) (36,201) (4,951) (1,328)
Futures............... -- -- -- -- -- -- (515) -- --
Translation of assets
and liabilities in
foreign currencies.... -- -- 597 -- -- (40) -- -- 106
-------- ---------- ---------- -------- ------- -------- -------- ------- -------
Net assets............. $160,629 $2,799,990 $2,729,864 $115,184 $76,231 $ 87,333 $539,147 $38,463 $58,109
======== ========== ========== ======== ======= ======== ======== ======= =======
See notes to financial statements.
45
STATEMENT OF OPERATIONS
JOHN HANCOCK VARIABLE SERIES TRUST I
--------------------------------------------------------------------------------
June 30, 2001 (Unaudited)
--------------------------------------------------------------------------------
(000's Omitted)
Large Cap Fundamental Aggressive Active Active Emerging International International
Growth Growth Balanced Bond Bond II Markets Equity Equity Index Equity
--------- ----------- ---------- ------- ------- -------------- ------------- -------------
INVESTMENT INCOME
Interest............... $ 237 $ 41 $ 148 $28,533 $196 $ 48 $ 114 $ 33
Dividends.............. 2,177 59 100 -- -- 351 1,989 149
Securities lending..... 55 3 -- 92 -- -- 154 --
--------- -------- ------- ------- ---- ------- -------- -------
Total investment income. 2,469 103 248 28,625 196 399 2,257 182
--------- -------- ------- ------- ---- ------- -------- -------
EXPENSES
Investment advisory
fee.................... 1,835 177 72 2,561 21 189 146 81
Auditors fees.......... 122 2 1 84 -- 1 7 1
Custodian fees......... 357 37 20 189 17 284 63 16
Fidelity Bond fees..... 1 -- -- -- -- -- -- --
Legal fees............. 34 1 -- 27 -- -- 2 --
Printing & mailing
fees................... 161 29 18 169 9 6 10 32
Trustees' fees......... 31 -- -- 24 -- -- 2 --
Other fees............. 20 -- -- 16 -- 10 4 1
--------- -------- ------- ------- ---- ------- -------- -------
Total expenses.......... 2,561 246 111 3,070 47 490 234 131
Less expenses
reimbursed............. (249) (50) (28) (84) (23) (286) (15) (42)
--------- -------- ------- ------- ---- ------- -------- -------
Net expenses............ 2,312 196 83 2,986 24 204 219 89
--------- -------- ------- ------- ---- ------- -------- -------
Net investment income
(loss).................. 157 (93) 165 25,639 172 195 2,038 93
--------- -------- ------- ------- ---- ------- -------- -------
REALIZED AND UNREALIZED
GAIN (LOSS)
Net realized gain (loss)
on:
Investments............ (126,087) (11,791) (1,182) 13,062 100 (9,123) 186 (642)
Financial futures
contracts.............. -- -- -- -- -- -- (600) 9
Foreign currency
transactions........... -- -- -- -- -- (84) (375) 6
Change in unrealized
appreciation
(depreciation) on:
Investments............ (21,009) 1,888 180 (4,973) (92) 7,835 (23,529) (2,060)
Futures................ -- -- -- -- -- -- 179 24
Translation of assets
and liabilities in
foreign currencies..... -- -- -- -- -- (105) (84) (2)
--------- -------- ------- ------- ---- ------- -------- -------
Net realized and
unrealized gain (loss). (147,096) (9,903) (1,002) 8,089 8 (1,477) (24,223) (2,665)
--------- -------- ------- ------- ---- ------- -------- -------
Net increase (decrease)
in net assets resulting
from operations........ $(146,939) $ (9,996) $ (837) $33,728 $180 $(1,282) $(22,185) $(2,572)
========= ======== ======= ======= ==== ======= ======== =======
See notes to financial statements.
46
STATEMENT OF OPERATIONS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
--------------------------------------------------------------------------------
June 30, 2001 (Unaudited)
--------------------------------------------------------------------------------
(000's Omitted)
Small Cap Health Global Mid Cap Mid Cap Large Cap Large Cap Large Cap
Growth Sciences(*) Balanced Growth Blend Value Value CORE Value CORE II
--------- ----------- -------- --------- ------- --------- ---------- -------------
INVESTMENT INCOME
Interest............... $ 119 $ 14 $ 244 $ 640 $ 10 $ 221 $ 30 $ 2
Dividends.............. 98 30 124 124 137 2,322 195 51
Securities lending..... 190 -- -- 119 -- 10 -- --
-------- ---- ------- --------- ----- ------ ----- -----
Total investment income. 407 44 368 883 147 2,553 225 53
-------- ---- ------- --------- ----- ------ ----- -----
EXPENSES
Investment advisory
fee.................... 759 35 147 1,310 85 779 94 24
Auditors fees.......... 9 1 1 9 1 4 1 1
Custodian fees......... 26 1 34 40 14 11 29 28
Legal fees............. 3 -- -- 4 -- 2 1 --
Printing & mailing
fees................... 52 2 1 54 19 22 2 9
Trustees' fees......... 2 -- 1 4 -- 2 -- --
Other fees............. 2 -- 1 -- 1 1 1 --
-------- ---- ------- --------- ----- ------ ----- -----
Total expenses.......... 853 39 185 1,421 120 821 128 62
Less expenses
reimbursed............. -- -- (24) -- (24) -- (21) (34)
-------- ---- ------- --------- ----- ------ ----- -----
Net expenses............ 853 39 161 1,421 96 821 107 28
-------- ---- ------- --------- ----- ------ ----- -----
Net investment income
(loss).................. (446) 5 207 (538) 51 1,732 118 25
-------- ---- ------- --------- ----- ------ ----- -----
REALIZED AND UNREALIZED
GAIN (LOSS)
Net realized gain (loss)
on:
Investments............ (29,735) 6 10 (117,605) (534) 1,974 39 218
Financial futures
contracts.............. -- -- -- -- -- -- (102) (8)
Foreign currency
transactions........... -- -- (66) -- -- -- -- --
Change in unrealized
appreciation
(depreciation) on:
Investments............ 10,825 363 (1,313) 17,848 345 1,341 (101) (236)
Futures................ -- -- -- -- -- -- 3 --
Translation of assets
and liabilities in
foreign currencies..... -- -- (31) -- -- -- -- --
-------- ---- ------- --------- ----- ------ ----- -----
Net realized and
unrealized gain (loss). (18,910) 369 (1,400) (99,757) (189) 3,315 (161) (26)
-------- ---- ------- --------- ----- ------ ----- -----
Net increase (decrease)
in net assets resulting
from operations........ $(19,356) $374 $(1,193) $(100,295) $(138) $5,047 $ (43) $ (1)
======== ==== ======= ========= ===== ====== ===== =====
(*) Commenced operations on May 1, 2001
See notes to financial statements.
47
STATEMENT OF OPERATIONS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
--------------------------------------------------------------------------------
June 30, 2001 (Unaudited)
--------------------------------------------------------------------------------
(000's Omitted)
Large/Mid Cap Money Large/Mid Cap Small/Mid Cap Bond Large Cap Small/Mid Cap Small Cap Real Estate
Value Market Value II Growth Index Aggressive Growth CORE Value Equity
------------- ------- ------------- ------------- ------ ----------------- ------------- --------- -----------
INVESTMENT INCOME
Interest........ $ 27 $12,717 $ 64 $ 158 $2,281 $ 35 $ 20 $ 46 $ 65
Dividends....... 187 -- 1,074 278 -- 85 152 283 2,902
Securities
lending......... -- -- 8 55 4 2 -- -- --
------- ------- -------- ------ ------ ------- ----- ------ ------
Total investment
income........... 214 12,717 1,146 491 2,285 122 172 329 2,967
------- ------- -------- ------ ------ ------- ----- ------ ------
EXPENSES
Investment
advisory fee.... 104 602 490 673 54 119 93 182 748
Auditors fees... 1 10 5 7 3 1 1 1 6
Custodian fees.. 22 37 13 34 25 9 39 21 30
Legal fees...... 1 7 2 2 1 1 -- 1 2
Printing &
mailing fees.... 2 27 12 47 6 2 2 7 25
Trustees' fees.. -- 3 1 2 1 -- -- -- 1
Other fees...... -- 1 4 1 -- 1 1 -- 1
------- ------- -------- ------ ------ ------- ----- ------ ------
Total expenses... 130 687 527 766 90 133 136 212 813
Less expenses
reimbursed...... (14) -- -- -- -- -- (31) (11) --
------- ------- -------- ------ ------ ------- ----- ------ ------
Net expenses..... 116 687 527 766 90 133 105 201 813
------- ------- -------- ------ ------ ------- ----- ------ ------
Net investment
income (loss).... 98 12,030 619 (275) 2,195 (11) 67 128 2,154
------- ------- -------- ------ ------ ------- ----- ------ ------
REALIZED AND
UNREALIZED GAIN
(LOSS)
Net realized gain
(loss) on:
Investments..... 762 -- 16,763 233 811 (5,040) (298) 551 1,976
Financial
futures
contracts....... (67) -- 21 -- -- -- 17 36 --
Foreign currency
transactions.... -- -- -- -- -- -- -- -- 1
Change in
unrealized
appreciation
(depreciation)
on:
Investments..... (1,231) -- (19,849) 2,780 (208) 1,387 690 5,762 3,353
Futures......... 3 -- (35) -- -- -- (18) 32 (1)
------- ------- -------- ------ ------ ------- ----- ------ ------
Net realized and
unrealized gain
(loss).......... (533) -- (3,100) 3,013 603 (3,653) 391 6,381 5,329
------- ------- -------- ------ ------ ------- ----- ------ ------
Net increase
(decrease) in
net assets
resulting from
operations...... $ (435) $12,030 $ (2,481) $2,738 $2,798 $(3,664) $ 458 $6,509 $7,483
======= ======= ======== ====== ====== ======= ===== ====== ======
See notes to financial statements.
48
STATEMENT OF OPERATIONS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
--------------------------------------------------------------------------------
June 30, 2001 (Unaudited)
--------------------------------------------------------------------------------
(000's Omitted)
Growth & Short-Term Small Cap International Equity High Yield Global
Income Managed Bond Equity Opportunities Index Bond Bond
--------- --------- ---------- --------- ------------- -------- ---------- -------
INVESTMENT INCOME
Interest............... $ 769 $ 30,071 $3,093 $ 62 $ 73 $ 419 $1,532 $ 1,518
Dividends.............. 15,759 11,167 -- 273 979 3,016 5 --
Securities lending..... 87 175 15 8 56 -- -- 7
--------- --------- ------ ------- -------- -------- ------ -------
Total investment income. 16,615 41,413 3,108 343 1,108 3,435 1,537 1,525
--------- --------- ------ ------- -------- -------- ------ -------
EXPENSES
Investment advisory
fee.................... 9,934 9,411 150 321 431 341 100 272
Auditors fees.......... 199 148 1 3 4 14 1 3
Custodian fees......... 512 606 9 33 90 71 21 31
Fidelity Bond fees..... 2 2 -- -- -- -- -- --
Legal fees............. 192 61 1 1 2 3 1 1
Printing & mailing
fees................... 536 420 7 3 9 56 6 5
Trustees' fees......... 102 50 1 1 1 2 -- 1
Other fees............. 73 61 1 -- 3 2 -- 1
--------- --------- ------ ------- -------- -------- ------ -------
Total expenses.......... 11,550 10,759 170 362 540 489 129 314
Less expenses
reimbursed............. (149) -- -- (3) (57) -- (14) (9)
--------- --------- ------ ------- -------- -------- ------ -------
Net expenses............ 11,401 10,759 170 359 483 489 115 305
--------- --------- ------ ------- -------- -------- ------ -------
Net investment income
(loss).................. 5,214 30,654 2,938 (16) 625 2,946 1,422 1,220
--------- --------- ------ ------- -------- -------- ------ -------
REALIZED AND UNREALIZED
GAIN (LOSS)
Net realized gain (loss)
on:
Investments............ (358,645) (102,984) 368 (4,381) (2,857) 13,974 (838) 427
Financial futures
contracts.............. -- 1,734 -- -- -- (1,404) -- --
Foreign currency
transactions........... -- 7,864 -- -- (186) -- -- (917)
Change in unrealized
appreciation
(depreciation) on:
Investments............ 54,423 13,088 1,013 7,093 (15,736) (51,537) 442 (4,071)
Futures................ -- (1,645) -- -- -- 58 -- --
Translation of assets
and liabilities in
foreign currencies..... -- 5,517 -- -- (32) -- -- 429
--------- --------- ------ ------- -------- -------- ------ -------
Net realized and
unrealized gain (loss). (304,222) (76,426) 1,381 2,712 (18,811) (38,909) (396) (4,132)
--------- --------- ------ ------- -------- -------- ------ -------
Net increase (decrease)
in net assets resulting
from operations........ $(299,008) $ (45,772) $4,319 $ 2,696 $(18,186) $(35,963) $1,026 $(2,912)
========= ========= ====== ======= ======== ======== ====== =======
See notes to financial statements.
49
STATEMENT OF CHANGES IN NET ASSETS
JOHN HANCOCK VARIABLE SERIES TRUST I
--------------------------------------------------------------------------------
(000's Omitted)
Large Cap Growth Fundamental Growth Aggressive Balanced
----------------------------- ----------------------------- -----------------------------
Unaudited Unaudited Unaudited
Six-Month Period Year Ended Six-Month Period Year Ended Six-Month Period Year Ended
Ended June 30, December 31, Ended June 30, December 31, Ended June 30, December 31,
2001 2000 2001 2000 2001 2000
---------------- ------------ ---------------- ------------ ---------------- ------------
INCREASE (DECREASE) IN NET ASSETS
From operations
Net investment
income (loss)... $ 157 $ 1,410 $ (93) $ (109) $ 165 $ 288
Net realized
gain (loss)..... (126,087) 101,421 (11,791) 2,219 (1,182) (221)
Change in net
unrealized
appreciation
(depreciation).. (21,009) (356,204) 1,888 (8,121) 180 (433)
---------- ---------- -------- -------- ------- -------
Net increase
(decrease) in
net assets
resulting from
operations...... (146,939) (253,373) (9,996) (6,011) (837) (366)
Distributions to shareholders from:
Net investment
income.......... -- (2,000) -- -- (167) (289)
Realized gains.. -- (137,737) -- (2,478) -- (41)
In excess of
realized gain... -- (40,230) -- (2,097) -- (15)
Capital paid-in. -- (3,418) -- (111) -- --
---------- ---------- -------- -------- ------- -------
Decrease in net
assets resulting
from
distributions... -- (183,385) -- (4,686) (167) (345)
From fund share transactions:
Proceeds from
shares sold..... 51,493 206,257 10,494 76,255 4,385 10,598
Distributions
reinvested...... -- 183,384 -- 4,686 167 345
Payment for
shares redeemed. (173,459) (188,569) (6,270) (33,305) (4,111) (1,174)
---------- ---------- -------- -------- ------- -------
Increase
(decrease) in
net assets from
fund
share
transactions.... (121,966) 201,072 4,224 47,636 441 9,769
---------- ---------- -------- -------- ------- -------
NET INCREASE
(DECREASE) IN NET
ASSETS........... (268,905) (235,686) (5,772) 36,939 (563) 9,058
NET ASSETS
Beginning of
Period.......... 1,146,787 1,382,473 46,114 9,175 20,941 11,883
---------- ---------- -------- -------- ------- -------
End of Period... $ 877,882 $1,146,787 $ 40,342 $ 46,114 $20,378 $20,941
========== ========== ======== ======== ======= =======
Analysis of fund share transactions:
Sold............ 3,033 7,547 1,032 4,670 441 1,004
Reinvested...... -- 9,625 -- 383 17 33
Redeemed........ (10,275) (7,033) (626) (2,005) (417) (110)
---------- ---------- -------- -------- ------- -------
Net increase
(decrease) in
fund shares
outstanding...... (7,242) 10,139 406 3,048 41 927
========== ========== ======== ======== ======= =======
Active Bond
-----------------------------
Unaudited
Six-Month Period Year Ended
Ended June 30, December 31,
2001 2000
---------------- ------------
INCREASE (DECREASE) IN NET ASSETS
From operations
Net investment
income (loss)... $ 25,639 $ 57,674
Net realized
gain (loss)..... 13,062 (11,679)
Change in net
unrealized
appreciation
(depreciation).. (4,973) 36,028
---------------- ------------
Net increase
(decrease) in
net assets
resulting from
operations...... 33,728 82,023
Distributions to shareholders from:
Net investment
income.......... (26,016) (53,480)
Realized gains.. -- --
In excess of
realized gain... -- --
Capital paid-in. -- --
---------------- ------------
Decrease in net
assets resulting
from
distributions... (26,016) (53,480)
From fund share transactions:
Proceeds from
shares sold..... 53,348 95,188
Distributions
reinvested...... 26,016 53,480
Payment for
shares redeemed. (113,078) (185,198)
---------------- ------------
Increase
(decrease) in
net assets from
fund
share
transactions.... (33,714) (36,530)
---------------- ------------
NET INCREASE
(DECREASE) IN NET
ASSETS........... (26,002) (7,987)
NET ASSETS
Beginning of
Period.......... 842,299 850,286
---------------- ------------
End of Period... $816,297 $ 842,299
================ ============
Analysis of fund share transactions:
Sold............ 5,944 10,355
Reinvested...... 2,730 5,823
Redeemed........ (11,836) (20,181)
---------------- ------------
Net increase
(decrease) in
fund shares
outstanding...... (3,162) (4,003)
================ ============
See notes to financial statements.
50
STATEMENT OF CHANGES IN NET ASSETS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
--------------------------------------------------------------------------------
(000's Omitted)
Active Bond II Emerging Markets Equity International Equity Index
--------------------------------- ----------------------------- -----------------------------
Unaudited Period from Unaudited Unaudited
Six-Month Period June 30, 2000(*) Six-Month Period Year Ended Six-Month Period Year Ended
Ended June 30, to December 31, Ended June 30, December 31, Ended June 30, December 31,
2001 2000 2001 2000 2001 2000
---------------- ---------------- ---------------- ------------ ---------------- ------------
INCREASE (DECREASE) IN NET ASSETS
From operations
Net investment
income (loss)... $ 172 $ 159 $ 195 $ (120) $ 2,038 $ 2,860
Net realized
gain (loss)..... 100 27 (9,207) (614) (789) 6,657
Change in net
unrealized
appreciation
(depreciation).. (92) 166 7,730 (20,977) (23,434) (51,585)
------ ------ ------- -------- -------- --------
Net increase
(decrease) in
net assets
resulting from
operations...... 180 352 (1,282) (21,711) (22,185) (42,068)
Distributions to shareholders from:
Net investment
income.......... (174) (156) -- -- (2,023) (2,257)
Realized gains.. -- (27) -- (2,658) -- (7,138)
In excess of
realized gain... -- -- -- -- -- --
Capital paid-in. -- -- -- (47) -- (916)
------ ------ ------- -------- -------- --------
Decrease in net
assets resulting
from
distributions... (174) (183) -- (2,705) (2,023) (10,311)
From fund share transactions:
Proceeds from
shares sold..... 1,228 5,120 16,551 59,279 13,804 61,181
Distributions
reinvested...... 174 183 -- 2,705 2,023 10,313
Payment for
shares redeemed. (253) (44) (18,673) (39,154) (31,537) (68,120)
------ ------ ------- -------- -------- --------
Increase
(decrease) in
net assets from
fund share
transactions.... 1,149 5,259 (2,122) 22,830 (15,710) 3,374
------ ------ ------- -------- -------- --------
NET INCREASE
(DECREASE) IN NET
ASSETS........... 1,155 5,428 (3,404) (1,586) (39,918) (49,005)
NET ASSETS
Beginning of
Period.......... 5,428 -- 31,010 32,596 195,012 244,017
------ ------ ------- -------- -------- --------
End of Period... $6,583 $5,428 $27,606 $ 31,010 $155,094 $195,012
====== ====== ======= ======== ======== ========
Analysis of fund share transactions:
Sold............ 117 512 2,451 5,177 953 3,450
Reinvested...... 17 18 -- 408 145 651
Redeemed........ (24) (5) (2,828) (3,614) (2,209) (3,854)
------ ------ ------- -------- -------- --------
Net increase
(decrease) in
fund shares
outstanding...... 110 525 (377) 1,971 (1,111) 247
====== ====== ======= ======== ======== ========
International Equity
-----------------------------
Unaudited
Six-Month Period Year Ended
Ended June 30, December 31,
2001 2000
---------------- ------------
INCREASE (DECREASE) IN NET ASSETS
From operations
Net investment
income (loss)... $ 93 $ 74
Net realized
gain (loss)..... (627) 454
Change in net
unrealized
appreciation
(depreciation).. (2,038) (2,697)
---------------- ------------
Net increase
(decrease) in
net assets
resulting from
operations...... (2,572) (2,169)
Distributions to shareholders from:
Net investment
income.......... (95) (47)
Realized gains.. -- (471)
In excess of
realized gain... -- (58)
Capital paid-in. -- --
---------------- ------------
Decrease in net
assets resulting
from
distributions... (95) (576)
From fund share transactions:
Proceeds from
shares sold..... 14,599 13,293
Distributions
reinvested...... 95 576
Payment for
shares redeemed. (6,657) (7,838)
---------------- ------------
Increase
(decrease) in
net assets from
fund share
transactions.... 8,037 6,031
---------------- ------------
NET INCREASE
(DECREASE) IN NET
ASSETS........... 5,370 3,286
NET ASSETS
Beginning of
Period.......... 15,716 12,430
---------------- ------------
End of Period... $21,086 $15,716
================ ============
Analysis of fund share transactions:
Sold............ 1,635 1,223
Reinvested...... 11 59
Redeemed........ (722) (727)
---------------- ------------
Net increase
(decrease) in
fund shares
outstanding...... 924 555
================ ============
(*) Commencement of operations
See notes to financial statements.
51
STATEMENT OF CHANGES IN NET ASSETS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
--------------------------------------------------------------------------------
(000's Omitted)
Small Cap Growth Health Sciences Global Balanced Mid Cap Growth
----------------------------- ---------------- ----------------------------- -----------------------------
Unaudited Unaudited Unaudited Unaudited
Six-Month Period Year Ended Period from Six-Month Period Year Ended Six-Month Period Year Ended
Ended June 30, December 31, May 1, 2001(*) Ended June 30, December 31, Ended June 30, December 31,
2001 2000 to June 30, 2001 2001 2000 2001 2000
---------------- ------------ ---------------- ---------------- ------------ ---------------- ------------
INCREASE (DECREASE) IN NET ASSETS
From operations
Net investment
income (loss)... $ (446) $ (1,308) $ 5 $ 207 $ 688 $ (538) $ (2,311)
Net realized
gain (loss)..... (29,735) (9,498) 6 (56) (789) (117,605) (7,215)
Change in net
unrealized
appreciation
(depreciation).. 10,825 (67,925) 363 (1,344) (2,738) 17,848 (229,686)
-------- --------- ------- ------- ------- --------- ---------
Net increase
(decrease) in
net assets
resulting from
operations...... (19,356) (78,731) 374 (1,193) (2,839) (100,295) (239,212)
Distributions to
shareholders
from:
Net investment
income.......... -- -- (16) (211) (703) -- --
Realized gains.. -- (1,933) -- -- (41) -- (8,563)
In excess of
realized gain... -- -- -- -- (283) -- (33,799)
Capital paid-in. -- (20,976) -- -- (355) -- (22,185)
-------- --------- ------- ------- ------- --------- ---------
Decrease in net
assets resulting
from
distributions... -- (22,909) (16) (211) (1,382) -- (64,547)
From fund share
transactions:
Proceeds from
shares sold..... 44,516 239,410 21,816 5,213 8,360 82,935 311,599
Distributions
reinvested...... -- 22,968 16 211 1,382 -- 64,547
Payment for
shares redeemed. (57,649) (105,766) (1) (4,441) (8,571) (74,081) (131,336)
-------- --------- ------- ------- ------- --------- ---------
Increase
(decrease) in
net assets from
fund share
transactions.... (13,133) 156,612 21,831 983 1,171 8,854 244,810
-------- --------- ------- ------- ------- --------- ---------
NET INCREASE
(DECREASE) IN NET
ASSETS........... (32,489) 54,972 22,189 (421) (3,050) (91,441) (58,949)
NET ASSETS
Beginning of Pe-
riod............ 234,542 179,570 -- 28,527 31,577 393,988 452,937
-------- --------- ------- ------- ------- --------- ---------
End of Period... $202,053 $ 234,542 $22,189 $28,106 $28,527 $ 302,547 $ 393,988
======== ========= ======= ======= ======= ========= =========
Analysis of fund
share
transactions:
Sold............ 3,675 11,984 2,175 578 848 6,626 10,835
Reinvested...... -- 1,788 2 23 145 -- 4,228
Redeemed........ (4,793) (5,757) -- (489) (867) (6,026) (5,305)
-------- --------- ------- ------- ------- --------- ---------
Net increase
(decrease) in
fund shares
outstanding...... (1,118) 8,015 2,177 112 126 600 9,758
======== ========= ======= ======= ======= ========= =========
(*) Commencement of operations
See notes to financial statements.
52
STATEMENT OF CHANGES IN NET ASSETS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
--------------------------------------------------------------------------------
(000's Omitted)
Mid Cap Blend Large Cap Value Large Cap Value CORE
----------------------------- ----------------------------- -----------------------------
Unaudited Unaudited Unaudited
Six-Month Period Year Ended Six-Month Period Year Ended Six-Month Period Year Ended
Ended June 30, December 31, Ended June 30, December 31, Ended June 30, December 31,
2001 2000 2001 2000 2001 2000
---------------- ------------ ---------------- ------------ ---------------- ------------
INCREASE (DE-
CREASE) IN NET
ASSETS
From operations
Net investment
income.......... $ 51 $ 49 $ 1,732 $ 3,416 $ 118 $ 168
Net realized
gain (loss)..... (534) 324 1,974 7,226 (63) 79
Change in net
unrealized ap-
preciation (de-
preciation)..... 345 1,064 1,341 11,967 (98) 619
------- ------- -------- -------- ------- -------
Net increase
(decrease) in
net assets
resulting from
operations...... (138) 1,437 5,047 22,609 (43) 866
Distributions to
shareholders
from:
Net investment
income.......... (38) (51) (1,724) (3,459) (118) (169)
In excess of net
investment
income.......... -- -- -- (6) -- --
Realized gains.. -- (391) -- (7,200) -- (93)
In excess of
realized gain... -- (455) -- (131) -- (59)
Capital paid-in. -- -- -- (90) -- (14)
------- ------- -------- -------- ------- -------
Decrease in net
assets resulting
from
distributions... (38) (897) (1,724) (10,886) (118) (335)
From fund share
transactions:
Proceeds from
shares sold..... 10,944 17,016 53,657 73,820 26,533 11,275
Distributions
reinvested...... 38 897 1,724 10,886 118 335
Payment for
shares redeemed. (9,466) (3,004) (38,513) (47,743) (667) (348)
------- ------- -------- -------- ------- -------
Increase in net
assets from fund
share transac-
tions........... 1,516 14,909 16,868 36,963 25,984 11,262
------- ------- -------- -------- ------- -------
NET INCREASE IN
NET ASSETS....... 1,340 15,449 20,191 48,686 25,823 11,793
NET ASSETS
Beginning of
Period.......... 21,259 5,810 204,535 155,849 18,164 6,371
------- ------- -------- -------- ------- -------
End of Period... $22,599 $21,259 $224,726 $204,535 $43,987 $18,164
======= ======= ======== ======== ======= =======
Analysis of fund
share
transactions:
Sold............ 924 1,377 3,722 5,462 2,580 1,118
Reinvested...... 3 75 119 780 12 33
Redeemed........ (804) (242) (2,673) (3,569) (67) (35)
------- ------- -------- -------- ------- -------
Net increase in
fund shares
outstanding...... 123 1,210 1,168 2,673 2,525 1,116
======= ======= ======== ======== ======= =======
Large Cap Value CORE II
---------------------------------
Unaudited Period from
Six-Month Period June 30, 2000(*)
Ended June 30, to December 31,
2001 2000
---------------- ----------------
INCREASE (DE-
CREASE) IN NET
ASSETS
From operations
Net investment
income.......... $ 25 $ 34
Net realized
gain (loss)..... 210 18
Change in net
unrealized ap-
preciation (de-
preciation)..... (236) 373
---------------- ----------------
Net increase
(decrease) in
net assets
resulting from
operations...... (1) 425
Distributions to
shareholders
from:
Net investment
income.......... (25) (34)
In excess of net
investment
income.......... -- --
Realized gains.. -- (18)
In excess of
realized gain... -- --
Capital paid-in. -- --
---------------- ----------------
Decrease in net
assets resulting
from
distributions... (25) (52)
From fund share
transactions:
Proceeds from
shares sold..... 931 6,694
Distributions
reinvested...... 25 51
Payment for
shares redeemed. (363) (1,089)
---------------- ----------------
Increase in net
assets from fund
share transac-
tions........... 593 5,656
---------------- ----------------
NET INCREASE IN
NET ASSETS....... 567 6,029
NET ASSETS
Beginning of
Period.......... 6,029
---------------- ----------------
End of Period... $6,596 $ 6,029
================ ================
Analysis of fund
share
transactions:
Sold............ 90 662
Reinvested...... 2 4
Redeemed........ (34) (103)
---------------- ----------------
Net increase in
fund shares
outstanding...... 58 563
================ ================
(*) Commencement of operations
See notes to financial statements.
53
STATEMENT OF CHANGES IN NET ASSETS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
--------------------------------------------------------------------------------
(000's Omitted)
Large/Mid Cap Value Money Market Large/Mid Cap Value II
----------------------------- ----------------------------- -----------------------------
Unaudited Unaudited Unaudited
Six-Month Period Year Ended Six-Month Period Year Ended Six-Month Period Year Ended
Ended June 30, December 31, Ended June 30, December 31, Ended June 30, December 31,
2001 2000 2001 2000 2001 2000
---------------- ------------ ---------------- ------------ ---------------- ------------
INCREASE (DE-
CREASE) IN NET
ASSETS
From operations
Net investment
income (loss) .. $ 98 $ 90 $ 12,030 $ 24,827 $ 619 $ 433
Net realized
gain............ 695 103 -- 16,784 12,793
Change in net
unrealized
appreciation
(depreciation).. (1,228) 1,310 -- (19,884) 13,928
------- ------- --------- --------- -------- --------
Net increase
(decrease) in
net assets
resulting from
operations...... (435) 1,503 12,030 24,827 (2,481) 27,154
Distributions to
shareholders
from:
Net investment
income.......... (99) (91) (12,030) (25,112) (622) (434)
Realized gains.. -- (106) -- -- -- (3,233)
In excess of
realized gain... -- (71) -- -- -- (9,663)
------- ------- --------- --------- -------- --------
Decrease in net
assets resulting
from
distributions... (99) (268) (12,030) (25,112) (622) (13,330)
Capital
contributions.... -- -- -- 284 -- --
From fund share
transactions:
Proceeds from
shares sold..... 28,374 8,712 337,399 582,795 26,003 46,034
Distributions
reinvested...... 99 268 12,030 25,121 622 13,330
Payment for
shares redeemed. (7,098) (588) (386,913) (562,297) (31,653) (36,105)
------- ------- --------- --------- -------- --------
Increase
(decrease) in
net assets from
fund
share
transactions.... 21,375 8,392 (37,484) 45,619 (5,028) 23,259
------- ------- --------- --------- -------- --------
NET INCREASE
(DECREASE) IN NET
ASSETS........... 20,841 9,627 (37,484) 45,618 (8,131) 37,083
NET ASSETS
Beginning of
Period.......... 15,728 6,101 496,853 451,235 129,233 92,150
------- ------- --------- --------- -------- --------
End of Period... $36,569 $15,728 $ 459,369 $ 496,853 $121,102 $129,233
======= ======= ========= ========= ======== ========
Analysis of fund
share transac-
tions:
Sold............ 2,505 806 337,403 58,279 1,831 3,243
Reinvested...... 9 24 12,026 2,512 43 935
Redeemed........ (628) (56) (386,913) (56,230) (2,213) (2,571)
------- ------- --------- --------- -------- --------
Net increase
(decrease) in
fund shares
outstanding...... 1,886 774 (37,484) 4,561 (339) 1,607
======= ======= ========= ========= ======== ========
Small/Mid Cap Growth
-----------------------------
Unaudited
Six-Month Period Year Ended
Ended June 30, December 31,
2001 2000
---------------- ------------
INCREASE (DE-
CREASE) IN NET
ASSETS
From operations
Net investment
income (loss) .. $ (275) $ (366)
Net realized
gain............ 233 18,384
Change in net
unrealized
appreciation
(depreciation).. 2,780 (2,257)
---------------- ------------
Net increase
(decrease) in
net assets
resulting from
operations...... 2,738 15,761
Distributions to
shareholders
from:
Net investment
income.......... -- --
Realized gains.. -- (17,683)
In excess of
realized gain... -- (1,947)
---------------- ------------
Decrease in net
assets resulting
from
distributions... -- (19,630)
Capital
contributions.... -- --
From fund share
transactions:
Proceeds from
shares sold..... 25,249 35,984
Distributions
reinvested...... -- 19,630
Payment for
shares redeemed. (36,683) (43,666)
---------------- ------------
Increase
(decrease) in
net assets from
fund
share
transactions.... (11,434) 11,948
---------------- ------------
NET INCREASE
(DECREASE) IN NET
ASSETS........... (8,696) 8,079
NET ASSETS
Beginning of
Period.......... 190,010 181,931
---------------- ------------
End of Period... $181,314 $190,010
================ ============
Analysis of fund
share transac-
tions:
Sold............ 1,881 2,392
Reinvested...... -- 1,474
Redeemed........ (2,744) (2,963)
---------------- ------------
Net increase
(decrease) in
fund shares
outstanding...... (863) 903
================ ============
See notes to financial statements.
54
STATEMENT OF CHANGES IN NET ASSETS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
--------------------------------------------------------------------------------
(000's Omitted)
Bond Index Large Cap Aggressive Growth Small/Mid Cap CORE
----------------------------- ----------------------------- -----------------------------
Unaudited Unaudited Unaudited
Six-Month Period Year Ended Six-Month Period Year Ended Six-Month Period Year Ended
Ended June 30, December 31, Ended June 30, December 31, Ended June 30, December 31,
2001 2000 2001 2000 2001 2000
---------------- ------------ ---------------- ------------ ---------------- ------------
INCREASE
(DECREASE) IN NET
ASSETS
From operations
Net investment
income (loss)... $ 2,195 $ 3,295 $ (11) $ (88) $ 67 $ 91
Net realized
gain (loss)..... 811 (532) (5,040) (648) (281) 669
Change in net
unrealized
appreciation
(depreciation).. (208) 2,964 1,387 (5,205) 672 (536)
------- ------- ------- ------- ------- -------
Net increase
(decrease) in
net assets
resulting from
operations...... 2,798 5,727 (3,664) (5,941) 458 224
Distributions to
shareholders
from:
Net investment
income.......... (2,234) (3,317) -- -- (68) (90)
Realized gains.. -- -- -- (28) -- (671)
In excess of
realized gain... -- -- -- (168) -- (102)
Capital paid-in. -- -- -- (284) -- (53)
------- ------- ------- ------- ------- -------
Decrease in net
assets resulting
from
distributions... (2,234) (3,317) -- (480) (68) (916)
From fund share
transactions:
Proceeds from
shares sold..... 64,374 45,465 21,278 24,586 11,646 22,514
Distributions
reinvested...... 2,234 1,488 -- 481 68 669
Payment for
shares redeemed. (50,779) (23,031) (8,229) (7,476) (6,051) (9,103)
------- ------- ------- ------- ------- -------
Increase in net
assets from fund
share
transactions.... 15,829 23,922 13,049 17,591 5,663 14,080
------- ------- ------- ------- ------- -------
NET INCREASE IN
NET ASSETS....... 16,393 26,332 9,385 11,170 6,053 13,388
NET ASSETS
Beginning of
Period.......... 64,768 38,436 26,244 15,074 21,636 8,248
------- ------- ------- ------- ------- -------
End of Period... $81,161 $64,768 $35,629 $26,244 $27,689 $21,636
======= ======= ======= ======= ======= =======
Analysis of fund
share
transactions:
Sold............ 6,620 4,808 2,489 2,136 1,209 2,174
Reinvested...... 228 158 -- 51 7 70
Redeemed........ (5,170) (2,443) (955) (692) (633) (880)
------- ------- ------- ------- ------- -------
Net increase in
fund shares
outstanding...... 1,678 2,523 1,534 1,495 583 1,364
======= ======= ======= ======= ======= =======
Small Cap Value
-----------------------------
Unaudited
Six-Month Period Year Ended
Ended June 30, December 31,
2001 2000
---------------- ------------
INCREASE
(DECREASE) IN NET
ASSETS
From operations
Net investment
income (loss)... $ 128 $ 18
Net realized
gain (loss)..... 587 3,781
Change in net
unrealized
appreciation
(depreciation).. 5,794 (223)
---------------- ------------
Net increase
(decrease) in
net assets
resulting from
operations...... 6,509 3,576
Distributions to
shareholders
from:
Net investment
income.......... (127) (17)
Realized gains.. -- (3,779)
In excess of
realized gain... -- --
Capital paid-in. -- --
---------------- ------------
Decrease in net
assets resulting
from
distributions... (127) (3,796)
From fund share
transactions:
Proceeds from
shares sold..... 38,479 21,624
Distributions
reinvested...... 127 3,796
Payment for
shares redeemed. (15,851) (1,334)
---------------- ------------
Increase in net
assets from fund
share
transactions.... 22,755 24,086
---------------- ------------
NET INCREASE IN
NET ASSETS....... 29,137 23,866
NET ASSETS
Beginning of
Period.......... 29,436 5,570
---------------- ------------
End of Period... $58,573 $29,436
================ ============
Analysis of fund
share
transactions:
Sold............ 2,965 1,733
Reinvested...... 10 339
Redeemed........ (1,245) (107)
---------------- ------------
Net increase in
fund shares
outstanding...... 1,730 1,965
================ ============
See notes to financial statements.
55
STATEMENT OF CHANGES IN NET ASSETS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
--------------------------------------------------------------------------------
(000's Omitted)
Real Estate Equity Growth & Income Managed
----------------------------- ----------------------------- -----------------------------
Unaudited Unaudited Unaudited
Six-Month Period Year Ended Six-Month Period Year Ended Six-Month Period Year Ended
Ended June 30, December 31, Ended June 30, December 31, Ended June 30, December 31,
2001 2000 2001 2000 2001 2000
---------------- ------------ ---------------- ------------ ---------------- ------------
INCREASE
(DECREASE) IN NET
ASSETS
From operations
Net investment
income.......... $ 2,154 $ 8,456 $ 5,214 $ 32,578 $ 30,654 $ 91,310
Net realized
gain (loss)..... 1,977 4,057 (358,645) 445,349 (93,386) 237,169
Change in net
unrealized
appreciation
(depreciation).. 3,352 25,634 54,423 (990,353) 16,960 (328,984)
-------- -------- ---------- ---------- ---------- ----------
Net increase
(decrease) in
net assets
resulting from
operations...... 7,483 38,147 (299,008) (512,426) (45,772) (505)
Distributions to
shareholders
from:
Net investment
income.......... (2,314) (8,456) (4,850) (33,412) (31,123) (93,117)
In excess of net
investment
income.......... -- (404) -- -- -- --
Realized gains.. -- (649) -- (519,555) -- (235,437)
In excess of
realized gain... -- (3,328) -- (25,745) -- --
Capital paid-in. -- (1,440) -- (44,762) -- --
-------- -------- ---------- ---------- ---------- ----------
Decrease in net
assets resulting
from
distributions... (2,314) (14,277) (4,850) (623,474) (31,123) (328,554)
From fund share
transactions:
Proceeds from
shares sold..... 34,355 51,873 163,739 110,896 369,833 66,759
Distributions
reinvested...... 2,314 14,277 4,850 623,473 31,123 328,531
Payment for
shares redeemed. (40,020) (57,423) (389,729) (492,322) (589,991) (501,356)
-------- -------- ---------- ---------- ---------- ----------
Increase (de-
crease) in net
assets from fund
share transac-
tions........... (3,351) 8,727 (221,140) 242,047 (189,035) (106,066)
-------- -------- ---------- ---------- ---------- ----------
NET INCREASE
(DECREASE) IN NET
ASSETS........... 1,818 32,597 (524,998) (893,853) (265,930) (435,125)
NET ASSETS
Beginning of
Period.......... 158,811 126,214 3,324,988 4,218,841 2,995,794 3,430,919
-------- -------- ---------- ---------- ---------- ----------
End of Period... $160,629 $158,811 $2,799,990 $3,324,988 $2,729,864 $2,995,794
======== ======== ========== ========== ========== ==========
Analysis of fund
share
transactions:
Sold............ 2,435 4,031 12,542 5,816 27,678 4,373
Reinvested...... 168 1,085 364 43,333 2,297 23,203
Redeemed........ (2,962) (4,499) (29,744) (25,508) (43,513) (32,979)
-------- -------- ---------- ---------- ---------- ----------
Net increase
(decrease) in
fund shares
outstanding...... (359) 617 (16,838) 23,641 (13,538) (5,403)
======== ======== ========== ========== ========== ==========
Short-Term Bond
-----------------------------
Unaudited
Six-Month Period Year Ended
Ended June 30, December 31,
2001 2000
---------------- ------------
INCREASE
(DECREASE) IN NET
ASSETS
From operations
Net investment
income.......... $ 2,938 $ 4,615
Net realized
gain (loss)..... 368 (582)
Change in net
unrealized
appreciation
(depreciation).. 1,013 1,702
---------------- ------------
Net increase
(decrease) in
net assets
resulting from
operations...... 4,319 5,735
Distributions to
shareholders
from:
Net investment
income.......... (2,981) (4,591)
In excess of net
investment
income.......... -- --
Realized gains.. -- --
In excess of
realized gain... -- --
Capital paid-in. -- --
---------------- ------------
Decrease in net
assets resulting
from
distributions... (2,981) (4,591)
From fund share
transactions:
Proceeds from
shares sold..... 60,735 29,529
Distributions
reinvested...... 2,981 4,591
Payment for
shares redeemed. (29,979) (23,999)
---------------- ------------
Increase (de-
crease) in net
assets from fund
share transac-
tions........... 33,737 10,121
---------------- ------------
NET INCREASE
(DECREASE) IN NET
ASSETS........... 35,075 11,265
NET ASSETS
Beginning of
Period.......... 80,109 68,844
---------------- ------------
End of Period... $115,184 $80,109
================ ============
Analysis of fund
share
transactions:
Sold............ 6,108 3,035
Reinvested...... 299 472
Redeemed........ (2,998) (2,466)
---------------- ------------
Net increase
(decrease) in
fund shares
outstanding...... 3,409 1,041
================ ============
See notes to financial statements.
56
STATEMENT OF CHANGES IN NET ASSETS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
--------------------------------------------------------------------------------
(000's Omitted)
Small Cap Equity International Opportunities Equity Index
----------------------------- ----------------------------- -----------------------------
Unaudited Unaudited Unaudited
Six-Month Period Year Ended Six-Month Period Year Ended Six-Month Period Year Ended
Ended June 30, December 31, Ended June 30, December 31, Ended June 30, December 31,
2001 2000 2001 2000 2001 2000
---------------- ------------ ---------------- ------------ ---------------- ------------
INCREASE (DE-
CREASE) IN NET
ASSETS
From operations
Net investment
income (loss)... $ (16) $ 920 $ 625 $ 465 $ 2,946 $ 5,723
Net realized
gain (loss)..... (4,381) 4,551 (3,043) 4,855 12,570 18,724
Change in net
unrealized
appreciation
(depreciation).. 7,093 (12,268) (15,768) (22,688) (51,479) (77,249)
-------- -------- -------- -------- --------- --------
Net increase
(decrease) in
net assets
resulting from
operations...... 2,696 (6,797) (18,186) (17,368) (35,963) (52,802)
Distributions to
shareholders
from:
Net investment
income.......... -- (1,004) (582) (423) (2,965) (5,292)
Realized gains.. -- (990) -- (4,722) -- (20,438)
In excess of
realized gain... -- (1,431) -- (390) -- (231)
Capital paid-in. -- (2,130) -- (749) -- (555)
-------- -------- -------- -------- --------- --------
Decrease in net
assets resulting
from
distributions... -- (5,555) (582) (6,284) (2,965) (26,516)
From fund share
transactions:
Proceeds from
shares sold..... 23,006 33,823 41,686 81,609 171,574 226,311
Shares issued in
reorganization.. -- -- -- 22,528 -- --
Distributions
reinvested...... -- 5,555 582 6,285 2,965 26,516
Payment for
shares redeemed. (19,502) (25,895) (56,201) (46,530) (122,123) (99,146)
-------- -------- -------- -------- --------- --------
Increase
(decrease) in
net assets from
fund share
transactions.... 3,504 13,483 (13,933) 63,892 52,416 153,681
-------- -------- -------- -------- --------- --------
NET INCREASE
(DECREASE) IN NET
ASSETS........... 6,200 1,131 (32,701) 40,240 13,488 74,363
NET ASSETS
Beginning of
Period.......... 70,031 68,900 120,034 79,794 525,659 451,296
-------- -------- -------- -------- --------- --------
End of Period... $ 76,231 $ 70,031 $ 87,333 $120,034 $ 539,147 $525,659
======== ======== ======== ======== ========= ========
Analysis of fund
share
transactions:
Sold............ 2,500 3,114 3,880 5,776 10,292 11,361
Issued in
reorganization.. -- -- -- 1,947 -- --
Reinvested...... -- 614 55 536 178 1,473
Redeemed........ (2,145) (2,378) (5,240) (3,390) (7,311) (5,101)
-------- -------- -------- -------- --------- --------
Net increase
(decrease) in
fund shares
outstanding...... 355 1,350 (1,305) 4,869 3,159 7,733
======== ======== ======== ======== ========= ========
High Yield Bond
-----------------------------
Unaudited
Six-Month Period Year Ended
Ended June 30, December 31,
2001 2000
---------------- ------------
INCREASE (DE-
CREASE) IN NET
ASSETS
From operations
Net investment
income (loss)... $ 1,422 $ 2,175
Net realized
gain (loss)..... (838) (518)
Change in net
unrealized
appreciation
(depreciation).. 442 (4,604)
---------------- ------------
Net increase
(decrease) in
net assets
resulting from
operations...... 1,026 (2,947)
Distributions to
shareholders
from:
Net investment
income.......... (1,445) (2,186)
Realized gains.. -- --
In excess of
realized gain... -- --
Capital paid-in. -- --
---------------- ------------
Decrease in net
assets resulting
from
distributions... (1,445) (2,186)
From fund share
transactions:
Proceeds from
shares sold..... 51,560 22,157
Shares issued in
reorganization.. -- --
Distributions
reinvested...... 1,445 2,227
Payment for
shares redeemed. (40,101) (13,194)
---------------- ------------
Increase
(decrease) in
net assets from
fund share
transactions.... 12,904 11,190
---------------- ------------
NET INCREASE
(DECREASE) IN NET
ASSETS........... 12,485 6,057
NET ASSETS
Beginning of
Period.......... 25,978 19,921
---------------- ------------
End of Period... $ 38,463 $ 25,978
================ ============
Analysis of fund
share
transactions:
Sold............ 6,650 2,663
Issued in
reorganization.. -- --
Reinvested...... 188 273
Redeemed........ (5,167) (1,610)
---------------- ------------
Net increase
(decrease) in
fund shares
outstanding...... 1,671 1,326
================ ============
See notes to financial statements.
57
STATEMENT OF CHANGES IN NET ASSETS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
--------------------------------------------------------------------------------
(000's Omitted)
Global Bond
-----------------------------
Unaudited
Six-Month Period Year Ended
Ended June 30, December 31,
2001 2000
---------------- ------------
INCREASE (DECREASE) IN NET ASSETS
From operations
Net investment income........................... $ 1,220 $ 3,081
Net realized loss............................... (490) (126)
Change in net unrealized appreciation
(depreciation).................................. (3,642) 4,415
-------- --------
Net increase (decrease) in net assets resulting
from operations................................. (2,912) 7,370
Distributions to shareholders from:
Net investment income........................... -- (4,040)
-------- --------
Decrease in net assets resulting from
distributions................................... -- (4,040)
From fund share transactions:
Proceeds from shares sold....................... 9,574 11,709
Distributions reinvested........................ -- 4,046
Payment for shares redeemed..................... (17,026) (21,603)
-------- --------
Decrease in net assets from fund share
transactions.................................... (7,452) (5,848)
-------- --------
NET DECREASE IN NET ASSETS....................... (10,364) (2,518)
NET ASSETS
Beginning of Period............................. 68,473 70,991
-------- --------
End of Period................................... $ 58,109 $ 68,473
======== ========
Analysis of fund share transactions:
Sold............................................ 960 1,168
Reinvested...................................... -- 401
Redeemed........................................ (1,687) (2,176)
-------- --------
Net decrease in fund shares outstanding.......... (727) (607)
======== ========
See notes to financial statements.
58
FINANCIAL HIGHLIGHTS
JOHN HANCOCK VARIABLE SERIES TRUST I
--------------------------------------------------------------------------------
Selected data for each fund share of beneficial interest outstanding throughout
the period end indicated:
Income from Investment Operations Less Distributions
------------------------------------ ---------------------------------------------------
Net Net Distribution
Assets Investment Net Realized Distribution Distribution in Excess of
Value at Income and Unrealized Total From From Net From Net Net Distribution
Beginning Gain Gain (Loss) on Investment Investment Gains on Investment From Capital
of Period (Loss) Investments(a) Operations Income Investments Income/Gains Paid-in
--------- ---------- -------------- ---------- ------------ ------------ ------------ ------------
Large Cap Growth
Unaudited Period
Ended June 30,
2001............ $18.89 -- $(2.48) $(2.48) -- -- -- --
Year Ended De-
cember 31,
2000............ 27.33 $ 0.03 (4.89) (4.86) $(0.04) $(2.69) $(0.78) $(0.07)
1999............ 26.19 0.09 6.03 6.12 (0.09) (4.89) -- --
1998............ 20.82 0.14 8.05 8.19 (0.14) (2.68) -- --
1997............ 17.49 0.17 5.21 5.38 (0.17) (1.88) -- --
1996............ 17.37 0.25 2.89 3.14 (0.25) (2.77) -- --
---------------------------------------------------------------------------------------------------------------------
Fundamental
Growth
Unaudited Period
Ended June 30,
2001............ 12.52 (0.02) (2.64) (2.66) -- -- -- --
Year Ended
December 31,
2000(f)......... 14.42 (0.02) (0.44) (0.46) -- (0.76) (0.65) (0.03)
Period from
August 31, to
December 31,
1999(h)......... 10.00 (0.02) 5.34 5.32 -- (0.90) -- --
---------------------------------------------------------------------------------------------------------------------
Aggressive Bal-
anced
Unaudited Period
Ended June 30,
2001............ 10.24 0.08 (0.48) (0.40) (0.08) -- -- --
Year Ended
December 31,
2000............ 10.62 0.19 (0.35) (0.16) (0.19) (0.02) (0.01) --
Period from
August 31, to
December 31,
1999(h)......... 10.00 0.06 0.64 0.70 (0.05) (0.03) -- --
---------------------------------------------------------------------------------------------------------------------
Active Bond
Unaudited Period
Ended June 30,
2001............ 9.44 0.29 0.06 0.35 (0.30) -- -- --
Year ended
December 31,
2000............ 9.12 0.64 0.28 0.92 (0.60) -- -- --
1999............ 9.92 0.67 (0.76) (0.09) (0.71) -- -- --
1998............ 9.95 0.69 0.11 0.80 (0.69) (0.14) -- --
1997............ 9.77 0.71 0.24 0.95 (0.71) (0.06) -- --
1996............ 10.13 0.69 (0.31) 0.38 (0.69) (0.05) -- --
---------------------------------------------------------------------------------------------------------------------
Active Bond II
Unaudited Period
Ended June 30,
2001(l)......... 10.33 0.29 0.05 0.34 (0.30) -- -- --
Period from June
30, to December
31, 2000(h)..... 10.00 0.32 0.37 0.69 (0.31) (0.05) -- --
---------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
-------------------------------------------------------
Operating Net
Net Assets Expenses Investment
Net Assets End of to Income
Value Total Period Average (Loss) to Portfolio
Total at End of Investment (000s Net Average Turnover
Distributions Period Return(b) Omitted) Assets Net Assets Rate
------------- ---------- ------------- ---------- -------------- ---------------- ------------
Large Cap Growth
Unaudited Period
Ended June 30,
2001............ -- $16.41 (13.11%)(c) $ 877,882 0.47%(d)(e) 0.03%(d) 46.84%(c)
Year Ended De-
cember 31,
2000............ $(3.58) 18.89 (17.89%) 1,146,787 0.46% 0.10% 89.30%
1999............ (4.98) 27.33 24.07% 1,382,473 0.39% 0.33% 37.42%
1998............ (2.82) 26.19 39.51% 1,126,764 0.41% 0.59% 56.41%
1997............ (2.05) 20.82 30.89% 754,398 0.44% 0.86% 83.82%
1996............ (3.02) 17.49 18.27% 524,145 0.44% 1.35% 135.98%
---------------------------------------------------------------------------------------------------------------------
Fundamental
Growth
Unaudited Period
Ended June 30,
2001............ -- 9.86 (21.20%)(c) 40,342 0.99%(d)(g) (0.47%)(d) 51.34%(c)
Year Ended
December 31,
2000(f)......... (1.44) 12.52 (3.03%) 46,114 0.96%(g) (0.38%) 250.46%
Period from
August 31, to
December 31,
1999(h)......... (0.90) 14.42 54.57%(c) 9,175 0.95%(d)(g) (0.55%)(d) 61.66%(c)
---------------------------------------------------------------------------------------------------------------------
Aggressive Bal-
anced
Unaudited Period
Ended June 30,
2001............ (0.08) 9.76 (3.89%)(c) 20,378 0.77%(d)(i) 1.54%(d)(24) 86.54%(c)
Year Ended
December 31,
2000............ (0.22) 10.24 (1.53%) 20,941 0.78%(i) 1.87% 164.89%
Period from
August 31, to
December 31,
1999(h)......... (0.08) 10.62 7.09%(c) 11,883 0.78%(d)(i) 1.68%(d) 70.28%(c)
---------------------------------------------------------------------------------------------------------------------
Active Bond
Unaudited Period
Ended June 30,
2001............ (0.30) 9.49 3.63%(c) 816,297 0.71%(d)(j) 6.13%(d)(25) 130.85%(c)
Year ended
December 31,
2000............ (0.60) 9.44 10.45% 842,299 0.41%(k) 6.98% 224.24%
1999............ (0.71) 9.12 (0.94%) 850,286 0.28% 6.97% 182.90%
1998............ (0.82) 9.92 8.23% 907,121 0.29% 6.84% 228.74%
1997............ (0.77) 9.95 10.11% 803,770 0.31% 7.18% 138.29%
1996............ (0.74) 9.77 4.10% 726,111 0.29% 7.07% 119.12%
---------------------------------------------------------------------------------------------------------------------
Active Bond II
Unaudited Period
Ended June 30,
2001(l)......... (0.30) 10.37 3.24%(c) 6,583 0.80%(d)(m) 5.70%(d)(26) 24.50%(c)
Period from June
30, to December
31, 2000(h)..... (0.36) 10.33 7.00%(c) 5,428 0.75%(d) 16.09%(d) 131.71%(c)
---------------------------------------------------------------------------------------------------------------------
59
FINANCIAL HIGHLIGHTS
JOHN HANCOCK VARIABLE SERIES TRUST I
--------------------------------------------------------------------------------
Selected data for each fund share of beneficial interest outstanding throughout
the period end indicated:
Income from Investment Operations Less Distributions
------------------------------------ ---------------------------------------------------
Net Net Distribution
Assets Investment Net Realized Distribution Distribution in Excess of
Value at Income and Unrealized Total From From Net From Net Net Distribution
Beginning Gain Gain (Loss) on Investment Investment Gains on Investment From Capital
of Period (Loss) Investments(a) Operations Income Investments Income/Gains Paid-in
--------- ---------- -------------- ---------- ------------ ------------ ------------ ------------
Emerging Markets
Equity
Unaudited Period
Ended June 30,
2001............ $ 6.70 $ 0.04 $(0.25) $(0.21) -- -- -- --
Year Ended De-
cember 31,
2000............ 12.26 (0.02) (4.91) (4.93) -- $(0.62) -- $(0.01)
1999(o)......... 7.09 0.03 5.35 5.38 $(0.01) (0.10) $(0.42) --
Period from May
1, to December
31, 1988(h)..... 10.00 0.03 (2.91) (2.88) (0.02) -- -- (0.01)
--------------------------------------------------------------------------------------------------------------------------
International
Equity Index
Unaudited Period
Ended
June 30, 2001... 15.39 0.17 (1.97) (1.80) (0.17) -- -- --
Year Ended
December 31,
2000............ 19.64 0.23 (3.64) (3.41) (0.18) (0.59) -- (0.07)
1999............ 15.56 0.21 4.51 4.72 (0.21) (0.38) (0.05) --
1998............ 15.20 0.23 2.91 3.14 (0.23) (2.55) -- --
1997............ 16.83 0.13 (0.97) (0.84) (0.13) (0.66) -- --
1996............ 15.61 0.21 1.22 1.43 (0.21) -- -- --
--------------------------------------------------------------------------------------------------------------------------
International
Equity
Unaudited Period
Ended June 30,
2001............ 9.85 0.05 (1.48) (1.43) (0.05) -- -- --
Year ended
December 31,
2000............ 11.95 0.06 (1.78) (1.72) (0.04) (0.30) (0.04) --
Period from
August 31, to
December 31,
1999(h)......... 10.00 0.01 2.12 2.13 (0.01) (0.17) -- --
--------------------------------------------------------------------------------------------------------------------------
Small Cap Growth
Unaudited Period
Ended June 30,
2001............ 13.47 (0.04) (1.03) (1.07) -- -- -- --
Year ended
December 31,
2000............ 19.12 (0.02) (4.16) (4.18) -- (0.12) -- (1.35)
1999............ 12.99 (0.21) 9.06 8.85 -- (2.72) -- --
1998............ 11.34 (0.05) 1.70 1.65 -- -- -- --
1997............ 9.93 (0.02) 1.44 1.42 -- -- -- (0.01)
Period from May
1, to December
31, 1996(h)..... 10.00 0.01 (0.06) (0.05) (0.02) -- -- --
--------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
--------------------------------------------------
Net Operating Net
Assets Expenses Investment
Net Assets End of to Income
Value Total Period Average (Loss) to Portfolio
Total Capital at End of Investment (000s Net Average Turnover
Distributions Contributions Period Return(b) Omitted) Assets Net Assets Rate
------------- ------------- ---------- ------------- -------- -------------- ------------- ------------
Emerging Markets
Equity
Unaudited Period
Ended June 30,
2001............ -- -- $ 6.49 (3.08)%(c) $27,606 1.33%(d)(n) 1.26%(d) 67.07%(c)
Year Ended De-
cember 31,
2000............ $(0.63) -- 6.70 (40.11)% 31,010 1.32%(n) (0.28)% 103.90%
1999(o)......... (0.53) $0.32 12.26 81.37%(p) 32,596 1.39%(n) 0.19% 196.32%
Period from May
1, to December
31, 1988(h)..... (0.03) -- 7.09 (28.87)%(c) 7,310 1.55%(d)(n) 0.51%(d) 53.95%(c)
--------------------------------------------------------------------------------------------------------------------------
International
Equity Index
Unaudited Period
Ended
June 30, 2001... (0.17) -- 13.42 (11.77)%(c) 155,094 0.29%(d)(q) 2.71%(d) 0.88%(c)
Year Ended
December 31,
2000............ (0.84) -- 15.39 (17.42)% 195,012 0.28%(r) 1.40% 14.86%
1999............ (0.64) -- 19.64 30.87% 244,017 0.31%(r) 1.26% 19.01%
1998............ (2.78) -- 15.56 20.82% 173,137 0.56%(r) 1.45% 158.63%
1997............ (0.79) -- 15.20 (5.03)% 152,359 0.79% 0.78% 83.13%
1996............ (0.21) -- 16.83 9.19% 155,753 0.76% 1.30% 92.03%
--------------------------------------------------------------------------------------------------------------------------
International
Equity
Unaudited Period
Ended June 30,
2001............ (0.05) -- 8.37 (14.56)%(c) 21,086 1.09%(d)(s) 1.15%(d) 22.65%(c)
Year ended
December 31,
2000............ (0.38) -- 9.85 (14.37)% 15,716 1.10%(s) 0.53% 75.41%
Period from
August 31, to
December 31,
1999(h)......... (0.18) -- 11.95 21.49%(c) 12,430 1.10%(d)(s) 0.21%(d) 26.76%(c)
--------------------------------------------------------------------------------------------------------------------------
Small Cap Growth
Unaudited Period
Ended June 30,
2001............ -- -- 12.40 (7.94)%(c) 202,053 0.84%(d) (0.44%)(d) 45.16%(c)
Year ended
December 31,
2000............ (1.47) -- 13.47 (21.43)% 234,542 0.82% (0.50)% 97.73%
1999............ (2.72) -- 19.12 70.38% 179,570 0.89% (0.70)% 113.11%
1998............ -- -- 12.99 14.49% 74,849 1.00%(t) (0.65)% 101.16%
1997............ (0.01) -- 11.34 14.26% 48,761 1.00%(t) (0.28)% 86.23%
Period from May
1, to December
31, 1996(h)..... (0.02) -- 9.93 (0.50)%(c) 20,633 1.00%(d)(t) 0.12%(d) 50.93%(c)
--------------------------------------------------------------------------------------------------------------------------
60
FINANCIAL HIGHLIGHTS
JOHN HANCOCK VARIABLE SERIES TRUST I
--------------------------------------------------------------------------------
Selected data for each fund share of beneficial interest outstanding throughout
the period end indicated:
Income from Investment Operations Less Distributions
------------------------------------ ---------------------------------------------------
Net Net Distribution
Assets Investment Net Realized Distribution Distribution in Excess of
Value at Income and Unrealized Total From From Net From Net Net Distribution
Beginning Gain Gain (Loss) on Investment Investment Gains on Investment From Capital
of Period (Loss) Investments(a) Operations Income Investments Income/Gains Paid-in
--------- ---------- -------------- ---------- ------------ ------------ ------------ ------------
Health Sciences
Period from May
1, 2001,
to June 30,
2001(h)......... $10.00 -- $ 0.20 $ 0.20 $(0.01) -- -- --
---------------------------------------------------------------------------------------------------------------------
Global Balanced
Unaudited Period
Ended June 30,
2001............ 9.27 $0.07 (0.45) (0.38) (0.07) -- -- --
Year ended
December 31,
2000(v)......... 10.71 0.23 (1.20) (0.97) (0.24) $(0.01) $(0.10) $(0.12)
1999............ 11.12 0.29 0.25 0.54 (0.29) (0.44) (0.16) (0.06)
1998............ 10.11 0.34 1.44 1.78 (0.34) (0.42) -- (0.01)
1997............ 10.39 0.33 (0.05) 0.28 (0.33) (0.22) -- (0.01)
Period from May
1, to December
31, 1996(h)..... 10.00 0.24 0.41 0.65 (0.24) (0.02) -- --
---------------------------------------------------------------------------------------------------------------------
Mid Cap Growth
Unaudited Period
Ended June 30,
2001............ 15.60 (0.02) (3.88) (3.90) -- -- -- --
Year ended
December 31,
2000............ 29.22 (0.05) (10.49) (10.54) -- (0.41) (1.61) (1.06)
1999............ 15.12 (0.19) 17.70 17.51 -- (3.41) -- --
1998............ 11.93 (0.09) 4.75 4.66 -- (1.32) -- (0.15)
1997............ 10.22 (0.02) 1.73 1.71 -- -- -- --
Period from May
1, to December
31, 1996(h)..... 10.00 0.05 0.22 0.27 (0.05) -- -- --
---------------------------------------------------------------------------------------------------------------------
Mid Cap Blend
Unaudited Period
Ended June 30,
2001............ 12.12 0.03 (0.09) (0.06) (0.02) -- -- --
Year ended
December 31,
2000............ 10.70 0.04 1.93 1.97 (0.04) (0.24) (0.27) --
Period from
August 31, to
December 31,
1999(h)......... 10.00 0.03 1.10 1.13 (0.03) (0.40) -- --
---------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------
Net Operating Net
Assets Expenses Investment
Net Assets End of to Income
Value Total Period Average (Loss) to Portfolio
Total at End of Investment (000s Net Average Turnover
Distributions Period Return(b) Omitted) Assets Net Assets Rate
------------- ---------- ------------- -------- -------------- ---------------- ------------
Health Sciences
Period from May
1, 2001,
to June 30,
2001(h)......... $(0.01) $10.19 1.99%(c) $ 22,189 1.10%(d) 0.14%(d) 12.66%(c)
---------------------------------------------------------------------------------------------------------------------
Global Balanced
Unaudited Period
Ended June 30,
2001............ (0.07) 8.82 (4.23)%(c) 28,106 1.14%(d)(u) 1.48%(d)(27) 19.33%(c)
Year ended
December 31,
2000(v)......... (0.47) 9.27 (9.08)% 28,527 0.98%(u) 2.32% 204.98%
1999............ (0.95) 10.71 5.11% 31,577 1.00%(u) 2.73% 131.21%
1998............ (0.77) 11.12 17.99% 30,416 1.10%(u) 3.20% 103.55%
1997............ (0.56) 10.11 2.65% 25,420 1.10%(u) 3.18% 81.04%
Period from May
1, to December
31, 1996(h)..... (0.26) 10.39 6.73%(c) 24,098 1.10%(d)(u) 3.59%(d) 22.21%(c)
---------------------------------------------------------------------------------------------------------------------
Mid Cap Growth
Unaudited Period
Ended June 30,
2001............ -- 11.70 (24.99)%(c) 302,547 0.88%(d) (0.33)%(d) 58.57%(c)
Year ended
December 31,
2000............ (3.08) 15.60 (35.86)% 393,988 0.85% (0.43)% 140.94%
1999............ (3.41) 29.22 118.31% 452,937 0.93% (0.68)% 106.06%
1998............ (1.47) 15.12 39.07% 94,085 1.10%(w) (0.64)% 137.01%
1997............ -- 11.93 16.66% 40,235 1.10%(w) (0.26)% 124.04%
Period from May
1, to December
31, 1996(h)..... (0.05) 10.22 2.69%(c) 16,492 1.10%(d)(w) 0.92%(d) 71.25%(c)
---------------------------------------------------------------------------------------------------------------------
Mid Cap Blend
Unaudited Period
Ended June 30,
2001............ (0.02) 12.04 (0.50)%(c) 22,599 0.85%(d)(x) 0.45%(d) 74.26%(c)
Year ended
December 31,
2000............ (0.55) 12.12 18.58% 21,259 0.85%(x) 0.44% 138.64%
Period from
August 31, to
December 31,
1999(h)......... (0.43) 10.70 11.53%(c) 5,810 0.85%(d)(x) 0.82%(d) 55.68%(c)
---------------------------------------------------------------------------------------------------------------------
61
FINANCIAL HIGHLIGHTS
JOHN HANCOCK VARIABLE SERIES TRUST I
--------------------------------------------------------------------------------
Selected data for each fund share of beneficial interest outstanding throughout
the period end indicated:
Income from Investment Operations Less Distributions
------------------------------------ ---------------------------------------------------
Net Net Distribution
Assets Investment Net Realized Distribution Distribution in Excess of
Value at Income and Unrealized Total From From Net From Net Net Distribution
Beginning Gain Gain (Loss) on Investment Investment Gains on Investment From Capital
of Period (Loss) Investments(a) Operations Income Investments Income/Gains Paid-in
--------- ---------- -------------- ---------- ------------ ------------ ------------ ------------
Large Cap Value
Unaudited Period
Ended
June 30, 2001... $14.38 $0.11 $ 0.22 $ 0.33 $(0.11) -- -- --
Year ended
December 31,
2000............ 13.49 0.27 1.45 1.72 (0.28) $(0.53) $(0.01) $(0.01)
1999............ 14.02 0.27 0.18 0.45 (0.27) (0.71) -- --
1998............ 13.57 0.28 0.96 1.24 (0.28) (0.51) -- --
1997............ 11.09 0.29 2.84 3.13 (0.29) (0.36) -- --
Period from May
1, to
December 31,
1996(h)......... 10.00 0.16 1.22 1.38 (0.16) (0.13) -- --
---------------------------------------------------------------------------------------------------------------------
Large Cap Value
CORE
Unaudited Period
Ended
June 30, 2001... 10.42 0.04 (0.11) (0.07) (0.04) -- -- --
Year ended
December 31,
2000............ 10.16 0.15 0.36 0.51 (0.15) (0.06) (0.03) (0.01)
Period from
August 31, to
December 31,
1999(h)......... 10.00 0.04 0.31 0.35 (0.03) (0.14) (0.01) (0.01)
---------------------------------------------------------------------------------------------------------------------
Large Cap Value
CORE II
Unaudited Period
Ended
June 30, 2001(1). 10.71 0.04 (0.08) (0.04) (0.04) -- -- --
Period from June
30, to
December 31,
2000(h)......... 10.00 0.06 0.74 0.80 (0.06) (0.03) -- --
---------------------------------------------------------------------------------------------------------------------
Large/Mid Cap
Value
Unaudited Period
Ended
June 30, 2001... 11.57 0.05 (0.30) (0.25) (0.05) -- -- --
Year ended
December 31,
2000............ 10.42 0.09 1.30 1.39 (0.10) (0.08) (0.06) --
Period from
August 31, to
December 31,
1999(h)......... 10.00 0.03 0.45 0.48 (0.03) (0.02) (0.01) --
---------------------------------------------------------------------------------------------------------------------
Money Market
Unaudited Period
Ended
June 30, 2001(4). 1.00 0.02 -- 0.02 (0.02) -- -- --
Year ended
December 31,
2000............ 1.00 0.06 -- 0.06 (0.06) -- -- --
1999(23)........ 1.00 0.04 -- 0.04 (0.04) -- -- --
1998(23)........ 1.00 0.05 -- 0.05 (0.05) -- -- --
1997(23)........ 1.00 0.05 -- 0.05 (0.05) -- -- --
1996(23)........ 1.00 0.05 -- 0.05 (0.05) -- -- --
---------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------
Net Operating Net
Assets Expenses Investment
Net Assets End of to Income
Value Total Period Average (Loss) to Portfolio
Total at End of Investment (000s Net Average Turnover
Distributions Period Return(b) Omitted) Assets Net Assets Rate
------------- ---------- ------------- -------- -------------- ----------- -----------
Large Cap Value
Unaudited Period
Ended
June 30, 2001... $(0.11) $14.60 2.34%(c) $224,726 0.77%(d) 1.62%(d) 7.04%(c)
Year ended
December 31,
2000............ (0.83) 14.38 12.97% 204,535 0.78% 2.04% 42.12%
1999............ (0.98) 13.49 3.28% 155,849 0.85% 1.88% 32.62%
1998............ (0.79) 14.02 9.26% 123,365 0.92% 2.08% 18.46%
1997............ (0.65) 13.57 28.56% 73,269 1.00%(y) 2.42% 19.21%
Period from May
1, to
December 31,
1996(h)......... (0.29) 11.09 13.90%(c) 19,781 1.00%(d)(y) 2.74%(d) 19.95%(c)
---------------------------------------------------------------------------------------------------------------------
Large Cap Value
CORE
Unaudited Period
Ended
June 30, 2001... (0.04) 10.31 (0.66)%(c) 43,987 0.84%(d)(z) 0.93%(d) 29.44%(c)
Year ended
December 31,
2000............ (0.25) 10.42 5.12% 18,164 0.85%(z) 1.54% 59.15%
Period from
August 31, to
December 31,
1999(h)......... (0.19) 10.16 3.58%(c) 6,371 0.85%(d)(z) 1.13%(d) 30.90%(c)
---------------------------------------------------------------------------------------------------------------------
Large Cap Value
CORE II
Unaudited Period
Ended
June 30, 2001(1). (0.04) 10.63 (0.33)%(c) 6,596 0.88%(d)(2) 0.81%(d) 14.04%(c)
Period from June
30, to
December 31,
2000(h)......... (0.09) 10.71 8.00%(c) 6,029 0.85%(d) 1.22%(d) 17.16%(c)
---------------------------------------------------------------------------------------------------------------------
Large/Mid Cap
Value
Unaudited Period
Ended
June 30, 2001... (0.05) 11.27 (2.22)%(c) 36,569 1.03%(d)(3) 0.88%(d) 38.78%(c)
Year ended
December 31,
2000............ (0.24) 11.57 13.41% 15,728 1.05%(3) 0.97% 86.97%
Period from
August 31, to
December 31,
1999(h)......... (0.06) 10.42 4.72%(c) 6,101 1.05%(d)(3) 0.94%(d) 23.03%(c)
---------------------------------------------------------------------------------------------------------------------
Money Market
Unaudited Period
Ended
June 30, 2001(4). (0.02) 1.00 2.51%(c) 459,369 0.29%(d) 5.03%(d) n/a
Year ended
December 31,
2000............ (0.06) 1.00 6.29%(5) 496,853 0.29% 6.05% n/a
1999(23)........ (0.04) 1.00 5.05% 451,235 0.31% 4.95% n/a
1998(23)........ (0.05) 1.00 5.40% 395,195 0.31% 5.29% n/a
1997(23)........ (0.05) 1.00 5.38% 229,443 0.33% 5.32% n/a
1996(23)........ (0.05) 1.00 5.32% 213,235 0.30% 5.20% n/a
---------------------------------------------------------------------------------------------------------------------
62
FINANCIAL HIGHLIGHTS
JOHN HANCOCK VARIABLE SERIES TRUST I
--------------------------------------------------------------------------------
Selected data for each fund share of beneficial interest outstanding throughout
the period end indicated:
Income from Investment Operations Less Distributions
------------------------------------ ---------------------------------------------------
Net Net Distribution
Assets Investment Net Realized Distribution Distribution in Excess of
Value at Income and Unrealized Total From From Net From Net Net Distribution
Beginning Gain Gain (Loss) on Investment Investment Gains on Investment From Capital
of Period (Loss) Investments(a) Operations Income Investments Income/Gains Paid-in
--------- ---------- -------------- ---------- ------------ ------------ ------------ ------------
Large/Mid Cap
Value II
Unaudited Period
Ended
June 30,
2001(4)......... $14.65 $ 0.07 $(0.37) $(0.30) $(0.07) -- -- --
Year ended
December 31,
2000............ 12.78 0.06 3.51 3.57 (0.06) $(0.41) $(1.23) --
1999............ 12.19 0.08 0.59 0.67 (0.08) -- -- --
1998............ 13.87 0.11 (1.68) (1.57) (0.11) -- -- --
1997............ 11.35 0.05 3.59 3.64 (0.05) (1.07) -- --
Period from May
1, to
December 31,
1996(h)......... 10.00 0.04 1.57 1.61 (0.04) (0.22) -- --
---------------------------------------------------------------------------------------------------------------------
Small/Mid Cap
Growth
Unaudited Period
Ended
June 30, 2001... 13.70 (0.03) 0.27 0.24 -- -- -- --
Year ended
December 31,
2000............ 14.03 (0.02) 1.27 1.25 -- (1.43) (0.15) --
1999............ 15.94 (0.07) 0.74 0.67 -- (2.41) -- $(0.17)
1998............ 15.39 (0.02) 0.88 0.86 -- (0.31) -- --
1997............ 16.52 0.01 0.56 0.57 (0.01) (1.69) -- --
1996............ 13.18 0.02 3.99 4.01 (0.02) (0.65) -- --
---------------------------------------------------------------------------------------------------------------------
Bond Index
Unaudited Period
Ended
June 30, 2001... 9.74 0.29 0.02 0.31 (0.30) -- -- --
Year ended
December 31,
2000............ 9.32 0.62 0.43 1.05 (0.63) -- -- --
1999............ 10.19 0.63 (0.89) (0.26) (0.61) -- -- --
Period from May
1, to
December 31,
1998(h)......... 10.00 0.42 0.29 0.71 (0.42) (0.10) -- --
---------------------------------------------------------------------------------------------------------------------
Large Cap
Aggressive Growth
Unaudited Period
Ended
June 30, 2001... 9.52 0.01 (1.23) (1.22) -- -- -- --
Year ended
December 31,
2000............ 11.94 (0.03) (2.21) (2.24) -- (0.01) (0.06) (0.11)
Period from
August 31, to
December 31,
1999(h)......... 10.00 (0.01) 2.03 2.02 -- (0.08) -- --
---------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------
Net Operating Net
Assets Expenses Investment
Net Assets End of to Income
Value Total Period Average (Loss) to Portfolio
Total at End of Investment (000s Net Average Turnover
Distributions Period Return(b) Omitted) Assets Net Assets Rate
------------- ---------- ------------- -------- -------------- ---------------- ------------
Large/Mid Cap
Value II
Unaudited Period
Ended
June 30,
2001(4)......... $(0.07) $14.28 (2.06)%(c) $121,102 0.85%(d) 1.00%(d) 141.53%(c)
Year ended
December 31,
2000............ (1.70) 14.65 28.38% 129,233 0.87% 0.42% 235.80%
1999............ (0.08) 12.78 5.52% 92,150 0.92% 0.64% 137.06%
1998............ (0.11) 12.19 (11.33)% 94,820 0.96% 0.93% 173.33%
1997............ (1.12) 13.87 32.17% 64,973 1.05%(6) 0.53% 93.78%
Period from May
1, to
December 31,
1996(h)......... (0.26) 11.35 16.18%(c) 10,926 1.05%(d)(6) 0.69%(d) 62.99%(c)
---------------------------------------------------------------------------------------------------------------------
Small/Mid Cap
Growth
Unaudited Period
Ended
June 30, 2001... -- 13.94 1.76%(c) 181,314 0.85%(d) (0.30%)(d) 48.75%(c)
Year ended
December 31,
2000............ (1.58) 13.70 9.25% 190,010 0.85% (0.20)% 103.19%
1999............ (2.58) 14.03 5.15% 181,931 0.85% (0.27)% 172.58%
1998............ (0.31) 15.94 5.61% 193,332 0.89% (0.11)% 162.21%
1997............ (1.70) 15.39 3.44% 213,612 0.85% 0.09% 331.19%
1996............ (0.67) 16.52 30.33% 194,108 0.84% 0.18% 217.84%
---------------------------------------------------------------------------------------------------------------------
Bond Index
Unaudited Period
Ended
June 30, 2001... (0.30) 9.75 3.16%(c) 81,161 0.25%(d) 6.05%(d)(28) 53.84%(c)
Year ended
December 31,
2000............ (0.63) 9.74 11.81% 64,768 0.25%(7) 6.80% 40.46%
1999............ (0.61) 9.32 (2.57)% 38,436 0.29%(7) 6.56% 17.06%
Period from May
1, to
December 31,
1998(h)......... (0.52) 10.19 7.20%(c) 28,001 0.40%(d)(7) 6.17%(d) 21.09%(c)
---------------------------------------------------------------------------------------------------------------------
Large Cap
Aggressive Growth
Unaudited Period
Ended
June 30, 2001... -- 8.30 (12.77)%(c) 35,629 0.98%(d) (0.08)%(d) 53.63%(c)
Year ended
December 31,
2000............ (0.18) 9.52 (18.77)% 26,244 1.00%(8) (0.37)% 75.97%
Period from
August 31, to
December 31,
1999(h)......... (0.08) 11.94 20.18%(c) 15,074 1.08%(d)(8) (0.39)%(d) 18.97%(c)
---------------------------------------------------------------------------------------------------------------------
63
FINANCIAL HIGHLIGHTS
JOHN HANCOCK VARIABLE SERIES TRUST I
--------------------------------------------------------------------------------
Selected data for each fund share of beneficial interest outstanding throughout
the period end indicated:
Income from Investment Operations Less Distributions
------------------------------------ ---------------------------------------------------
Net Net Distribution
Assets Investment Net Realized Distribution Distribution in Excess of
Value at Income and Unrealized Total From From Net From Net Net Distribution
Beginning Gain Gain (Loss) on Investment Investment Gains on Investment From Capital
of Period (Loss) Investments(a) Operations Income Investments Income/Gains Paid-in
--------- ---------- -------------- ---------- ------------ ------------ ------------ ------------
Small/Mid Cap
CORE
Unaudited Period
Ended June 30,
2001............ $ 9.82 $0.03 $ 0.12 $ 0.15 $(0.03) -- -- --
Year ended
December 31,
2000............ 9.82 0.05 0.39 0.44 (0.05) $(0.32) $(0.05) $(0.02)
1999............ 9.02 0.02 1.77 1.79 (0.03) (0.96) -- --
Period from May
1, to December
31, 1998(h)..... 10.00 -- (0.98) (0.98) -- -- -- --
---------------------------------------------------------------------------------------------------------------------
Small Cap Value
Unaudited Period
Ended June 30,
2001(10)........ 11.70 0.04 2.10 2.14 (0.04) -- -- --
Year ended
December 31,
2000............ 10.13 0.01 3.37 3.38 (0.01) (1.80) -- --
Period from
August 31, to
December 31,
1999(h)......... 10.00 -- 0.49 0.49 -- (0.36) -- --
---------------------------------------------------------------------------------------------------------------------
Real Estate
Equity
Unaudited Period
Ended June 30,
2001............ 13.67 0.19 0.62 0.81 (0.21) -- -- --
Year ended
December 31,
2000(o)......... 11.47 0.76 2.73 3.49 (0.76) (0.06) (0.17) (0.30)
1999............ 12.46 0.78 (0.99) (0.21) (0.78) -- -- --
1998............ 15.91 0.77 (3.38) (2.61) (0.70) (0.14) -- --
1997............ 14.64 0.77 1.68 2.45 (0.71) (0.41) -- (0.06)
1996............ 11.70 0.76 2.97 3.73 (0.76) (0.03) -- --
---------------------------------------------------------------------------------------------------------------------
Growth & Income
Unaudited Period
Ended June 30,
2001............ 14.18 0.02 (1.31) (1.29) (0.02) -- -- --
Year ended
December 31,
2000(f)......... 20.01 0.17 (2.77) (2.60) (0.17) (2.69) (0.14) (0.23)
1999............ 19.49 0.20 2.88 3.08 (0.20) (2.36) -- --
1998............ 16.61 0.23 4.75 4.98 (0.23) (1.87) -- --
1997............ 14.65 0.27 4.07 4.34 (0.27) (2.11) -- --
1996............ 13.94 0.34 2.43 2.77 (0.34) (1.72) -- --
---------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------
Operating Net
Net Assets Expenses Investment
Net Assets End of to Income
Value Total Period Average (Loss) to Portfolio
Total at End of Investment (000s Net Average Turnover
Distributions Period Return(b) Omitted) Assets Net Assets Rate
------------- ---------- ------------- ---------- --------------- ------------- ------------
Small/Mid Cap
CORE
Unaudited Period
Ended June 30,
2001............ $(0.03) $ 9.94 1.51%(c) $ 27,689 0.90%(d)(9) 0.57%(d) 33.72%(c)
Year ended
December 31,
2000............ (0.44) 9.82 4.63% 21,636 0.90%(9) 0.56% 94.78%
1999............ (0.99) 9.82 20.54% 8,248 0.94%(9) 0.30% 109.12%
Period from May
1, to December
31, 1998(h)..... -- 9.02 (9.81)%(c) 5,015 1.05%(d)(9) (0.01)%(d) 60.51%(c)
---------------------------------------------------------------------------------------------------------------------
Small Cap Value
Unaudited Period
Ended June 30,
2001(10)........ (0.04) 13.80 18.25%(c) 58,573 1.04%(d)(11) 0.66%(d) 77.07%(c)
Year ended
December 31,
2000............ (1.81) 11.70 34.19% 29,436 1.05%(11) 0.13% 220.80%
Period from
August 31, to
December 31,
1999(h)......... (0.36) 10.13 5.08%(c) 5,570 1.05%(d)(11) (0.12)%(d) 51.97%(c)
---------------------------------------------------------------------------------------------------------------------
Real Estate
Equity
Unaudited Period
Ended June 30,
2001............ (0.21) 14.27 5.95%(c) 160,629 1.08%(d) 2.87%(d) 10.80%(c)
Year ended
December 31,
2000(o)......... (1.29) 13.67 31.29% 158,811 0.76% 5.99% 58.81%
1999............ (0.78) 11.47 (1.69)% 126,214 0.70% 6.38% 12.95%
1998............ (0.84) 12.46 (16.71)% 152,789 0.69% 5.48% 22.69%
1997............ (1.18) 15.91 17.22% 204,131 0.69% 5.12% 20.04%
1996............ (0.79) 14.64 33.07% 151,105 0.69% 6.14% 18.37%
---------------------------------------------------------------------------------------------------------------------
Growth & Income
Unaudited Period
Ended June 30,
2001............ (0.02) 12.87 (9.13)%(c) 2,799,990 0.77%(d)(12) 0.35%(d) 43.75%(c)
Year ended
December 31,
2000(f)......... (3.23) 14.18 (13.10)% 3,324,988 0.40% 0.84% 112.94%
1999............ (2.56) 20.01 16.23% 4,218,841 0.28% 0.98% 70.16%
1998............ (2.10) 19.49 30.25% 3,670,785 0.27% 1.24% 48.45%
1997............ (2.38) 16.61 29.79% 2,785,964 0.28% 1.61% 74.56%
1996............ (2.06) 14.65 20.10% 2,047,927 0.27% 2.24% 81.02%
---------------------------------------------------------------------------------------------------------------------
64
FINANCIAL HIGHLIGHTS
JOHN HANCOCK VARIABLE SERIES TRUST I
--------------------------------------------------------------------------------
Selected data for each fund share of beneficial interest outstanding throughout
the period end indicated:
Income from Investment Operations Less Distributions
------------------------------------ ---------------------------------------------------
Net Net Distribution
Assets Investment Net Realized Distribution Distribution in Excess of
Value at Income and Unrealized Total From From Net From Net Net Distribution
Beginning Gain Gain (Loss) on Investment Investment Gains on Investment From Capital
of Period (Loss) Investments(a) Operations Income Investments Income/Gains Paid-in
--------- ---------- -------------- ---------- ------------ ------------ ------------ ------------
Managed
Unaudited Period
Ended June 30,
2001............ $13.82 $0.15 $(0.38) $(0.23) $(0.15) -- -- --
Year ended
December 31,
2000(v)......... 15.45 0.44 (0.45) (0.01) (0.44) $(1.18) -- --
1999............ 15.64 0.44 0.94 1.38 (0.43) (1.14) -- --
1998............ 14.35 0.46 2.43 2.89 (0.46) (1.09) -- $(0.05)
1997............ 13.35 0.59 1.86 2.45 (0.59) (0.78) -- (0.08)
1996............ 13.73 0.61 0.81 1.42 (0.61) (1.19) -- --
---------------------------------------------------------------------------------------------------------------------
Short-Term Bond
Unaudited Period
Ended June 30,
2001............ 9.86 0.28 0.14 0.42 (0.29) -- -- --
Year ended
December 31,
2000............ 9.72 0.61 0.14 0.75 (0.61) -- -- --
1999............ 10.05 0.61 (0.33) 0.28 (0.61) -- -- --
1998............ 10.08 0.61 (0.03) 0.58 (0.61) -- -- --
1997............ 10.05 0.59 0.03 0.62 (0.59) -- -- --
1996............ 10.23 0.54 (0.18) 0.36 (0.54) -- -- --
---------------------------------------------------------------------------------------------------------------------
Small Cap Equity
Unaudited Period
Ended June 30,
2001............ 9.14 -- 0.37 0.37 -- -- -- --
Year ended
December 31,
2000(v)......... 10.92 0.14 (1.13) (0.99) (0.15) (0.14) $(0.20) (0.30)
1999............ 11.59 0.09 (0.50) (0.41) (0.07) (0.01) (0.18) --
1998............ 12.40 0.07 (0.81) (0.74) (0.07) -- -- --
1997............ 10.73 0.08 2.66 2.74 (0.08) (0.99) -- --
Period from May
1, to
December 31,
1996(h)......... 10.00 0.07 0.96 1.03 (0.07) (0.23) -- --
---------------------------------------------------------------------------------------------------------------------
International
Opportunities
Unaudited Period
Ended June 30,
2001............ 11.85 0.07 (1.96) (1.89) (0.06) -- -- --
Year ended
December 31,
2000(16)........ 15.17 0.07 (2.57) (2.50) (0.06) (0.62) (0.05) (0.09)
1999............ 12.21 0.10 3.95 4.05 (0.11) (0.94) (0.04) --
1998............ 10.63 0.11 1.57 1.68 (0.10) -- -- --
1997............ 10.60 0.10 0.11 0.21 (0.10) (0.08) -- --
Period from May
1, to
December 31,
1996(h)......... 10.00 0.07 0.60 0.67 (0.07) -- -- --
---------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
---------------------------------------------------------
Operating Net
Net Assets Expenses Investment
Net Assets End of to Income
Value Total Period Average (Loss) to Portfolio
Total at End of Investment (000s Net Average Turnover
Distributions Period Return(b) Omitted) Assets Net Assets Rate
------------- ---------- -------------- ---------- --------------- ---------------- -------------
Managed
Unaudited Period
Ended June 30,
2001............ $(0.15) $13.44 (1.73)%(c) $2,729,864 0.77%(d) 2.19%(d)(29) 90.71%(c)
Year ended
December 31,
2000(v)......... (1.62) 13.82 0.03% 2,995,794 0.46% 2.86% 210.35%
1999............ (1.57) 15.45 9.10% 3,430,919 0.36% 2.75% 203.86%
1998............ (1.60) 15.64 20.42% 3,301,910 0.36% 2.99% 160.57%
1997............ (1.45) 14.35 18.72% 2,800,127 0.37% 4.18% 200.41%
1996............ (1.80) 13.35 10.72% 2,386,660 0.36% 4.41% 113.61%
---------------------------------------------------------------------------------------------------------------------
Short-Term Bond
Unaudited Period
Ended June 30,
2001............ (0.29) 9.99 4.23%(c) 115,184 0.34%(d) 5.85%(d)(30) 45.15%(c)
Year ended
December 31,
2000............ (0.61) 9.86 7.98% 80,109 0.36% 6.27% 52.68%
1999............ (0.61) 9.72 2.96% 68,844 0.43% 6.25% 100.04%
1998............ (0.61) 10.05 5.82% 77,194 0.53% 6.17% 184.50%
1997............ (0.59) 10.08 6.41% 51,120 0.57% 5.67% 108.29%
1996............ (0.54) 10.05 3.61% 58,676 0.75%(13) 5.66% 20.68%
---------------------------------------------------------------------------------------------------------------------
Small Cap Equity
Unaudited Period
Ended June 30,
2001............ -- 9.51 4.02%(c) 76,231 1.00%(d)(14) (0.05)%(d) 21.00%(c)
Year ended
December 31,
2000(v)......... (0.79) 9.14 (8.89)% 70,031 0.92%(14) 1.25% 189.57%
1999............ (0.26) 10.92 (3.43)% 68,900 0.95%(14) 0.78% 117.33%
1998............ (0.07) 11.59 5.96% 64,095 1.05%(14) 0.63% 100.83%
1997............ (1.07) 12.40 25.57% 43,261 1.05%(14) 0.68% 126.10%
Period from May
1, to
December 31,
1996(h)......... (0.30) 10.73 10.33%(c) 10,541 1.05%(d)(14) 1.15%(d) 66.31%(c)
---------------------------------------------------------------------------------------------------------------------
International
Opportunities
Unaudited Period
Ended June 30,
2001............ (0.06) 9.90 (15.98)%(c) 87,333 0.92%(d)(15) 1.19%(d) 8.59%(c)
Year ended
December 31,
2000(16)........ (0.82) 11.85 (16.36)%(17) 120,034 0.93%(15) 0.47% 37.92%(17)
1999............ (1.09) 15.17 34.01% 79,794 1.02%(15) 0.77% 34.02%
1998............ (0.10) 12.21 15.92% 64,250 1.16%(15) 0.89% 18.67%
1997............ (0.18) 10.63 1.95% 30,631 1.22%(15) 0.65% 21.09%
Period from May
1, to
December 31,
1996(h)......... (0.07) 10.60 6.72%(c) 17,898 1.25%(d)(15) 0.87%(d) 5.46%(c)
---------------------------------------------------------------------------------------------------------------------
65
FINANCIAL HIGHLIGHTS
JOHN HANCOCK VARIABLE SERIES TRUST I
-------------------------------------------------------------------------------
Selected data for each fund share of beneficial interest outstanding
throughout the period end indicated:
Income from Investment Operations Less Distributions
------------------------------------ ----------------------------------------------------
Net Net
Assets Investment Net Realized Distribution Distribution Net Assets
Value at Income and Unrealized Total From From Net From Net Distribution Value
Beginning Gain Gain (Loss) on Investment Investment Gains on From Capital Total at End of
of Period (Loss) Investments(a) Operations Income Investments Paid-in Distributions Period
--------- ---------- -------------- ---------- ------------ ------------ ------------ ------------- ----------
Equity Index
Unaudited Period
Ended June 30,
2001............ $17.64 $0.09 $(1.27) $(1.18) $(0.10) -- -- $(0.10) $16.36
Year ended
December 31,
2000............ 20.46 0.22 (2.09) (1.87) (0.22) $(0.72) $(0.01) (0.95) 17.64
1999............ 17.70 0.27 3.41 3.68 (0.26) (0.66) -- (0.92) 20.46
1998............ 14.21 0.25 3.76 4.01 (0.24) (0.28) -- (0.52) 17.70
1997............ 11.10 0.24 3.41 3.65 (0.24) (0.25) (0.05) (0.54) 14.21
Period from May
1, to
December 31,
1996(h)......... 10.00 0.15 1.26 1.41 (0.15) (0.10) (0.06) (0.31) 11.10
---------------------------------------------------------------------------------------------------------------------------------
High Yield Bond
Unaudited Period
Ended June 30,
2001............ 7.33 0.35 0.06 0.41 (0.36) -- -- (0.36) 7.38
Year ended
December 31,
2000............ 8.99 0.73 (1.65) (0.92) (0.74) -- -- (0.74) 7.33
1999............ 9.23 0.72 (0.26) 0.46 (0.70) -- -- (0.70) 8.99
Period from May
1, to
December 31,
1998(h)......... 10.00 0.46 (0.76) (0.30) (0.46) (0.01) -- (0.47) 9.23
---------------------------------------------------------------------------------------------------------------------------------
Global Bond
Unaudited Period
Ended June 30,
2001............ 10.34 0.18 (0.66) (0.48) -- -- -- -- 9.86
Year ended
December 31,
2000(v)......... 9.82 0.48 0.67 1.15 (0.63) -- -- (0.63) 10.34
1999............ 10.60 0.48 (0.70) (0.22) (0.56) -- -- (0.56) 9.82
1998............ 10.24 0.54 0.38 0.92 (0.29) (0.09) (0.18) (0.56) 10.60
1997............ 10.16 0.59 0.30 0.89 (0.61) (0.15) (0.05) (0.81) 10.24
Period from May
1, to
December 31,
1996(h)......... 10.00 0.38 0.28 0.66 (0.38) (0.12) -- (0.50) 10.16
Ratios/Supplemental Data
-----------------------------------------------------
Net Operating Net
Assets Expenses Investment
End of to Income
Total Period Average (Loss) to Portfolio
Investment (000s Net Average Turnover
Return(b) Omitted) Assets Net Assets Rate
---------------- -------- --------------- --------------- ------------
Equity Index
Unaudited Period
Ended June 30,
2001............ (6.74)%(c) $539,147 0.19%(d) 1.15%(d) 11.28%(c)
Year ended
December 31,
2000............ (9.15)% 525,659 0.19% 1.12% 34.11%
1999............ 21.08% 451,296 0.00%(18) 1.42% 55.24%
1998............ 28.45% 232,578 0.00%(18) 1.59% 43.31%
1997............ 32.79%(19) 101,390 0.00%(18) 1.97% 64.56%
Period from May
1, to
December 31,
1996(h)......... 14.23%(c)(20) 14,650 0.00%(d)(18) 2.47%(d) 15.72%(c)
-----------------------------------------------------------------------------------------
High Yield Bond
Unaudited Period
Ended June 30,
2001............ 5.33%(c) 38,463 0.74%(d)(21) 9.21%(d)(31) 16.59%(c)
Year ended
December 31,
2000............ (10.81)% 25,978 0.75%(21) 8.88% 21.94%
1999............ 5.13% 19,921 0.80%(21) 7.94% 38.62%
Period from May
1, to
December 31,
1998(h)......... (2.98)%(c) 14,789 0.90%(d)(21) 7.43%(d) 17.67%(c)
-----------------------------------------------------------------------------------------
Global Bond
Unaudited Period
Ended June 30,
2001............ (4.68)%(c) 58,109 0.95%(d)(22) 3.79%(d)(32) 20.80%(c)
Year ended
December 31,
2000(v)......... 12.00% 68,473 0.81%(22) 4.71% 259.60%
1999............ (2.16)% 70,991 0.83%(22) 4.70% 332.06%
1998............ 9.15% 66,791 0.95%(22) 5.27% 186.70%
1997............ 9.05% 28,647 1.00%(22) 5.80% 69.38%
Period from May
1, to
December 31,
1996(h)......... 6.71%(c) 12,907 1.00%(d)(22) 6.05%(d) 171.39%(c)
(a) The amount shown at this caption for each fund share outstanding
throughout the year may not accord with the change in the aggregate gains
and losses in the portfolio securities for the year because of the timing
of the purchases and withdrawals of the fund shares in relation to the
fluctuating market values of the portfolio.
(b) The performance of the Funds shown on this page does not reflect expense
reimbursements without which the returns would have been lower during the
periods shown, and does not reflect expenses and charges of the applicable
separate accounts and variable products, all of which vary to a
considerable extent and are described in your product's prospectus.
(c) Not annualized
(d) Annualized
(e) Expense ratio is net of expense reimbursements. Had such reimbursements
not been made, the annual expense ratio would have been .52% for the
period ended June 30, 2001.
(f) The Fund entered into a new sub-advisory agreement with Putnam Investment
Management, Inc. during the period shown.
66
FINANCIAL HIGHLIGHTS
JOHN HANCOCK VARIABLE SERIES TRUST I
-------------------------------------------------------------------------------
(g) Expense ratio is net of expense reimbursements. Had such reimbursements
not been made, the annual expense ratio would have been 1.00% and 1.09%
for the years ended December 31, 2000 and 1999, respectively, and 1.25%
for the period ended June 30, 2001.
(h) Commencement of investment operations
(i) Expense ratio is net of expense reimbursements. Had such reimbursements
not been made, the annual expense ratio would have been .89% and .96% for
the years ended December 31, 2000 and 1999, respectively, and 1.04% for
the period ended June 30, 2001.
(j) Expense ratio is net of expense reimbursements. Had such reimbursements
not been made, the annual expense ratio would have been .73% for the
period ended June 30, 2001.
(k) Expense ratio is net of expense reimbursements. Had such reimbursements
not been made, the annual expense ratio would have been .44% for the year
ended December 31, 2000.
(l) The Fund entered into a new sub-advisory agreement with John Hancock
Advisers, Inc. during the period shown.
(m) Expense ratio is net of expense reimbursements. Had such reimbursements
not been made, the annual expense ratio would have been 1.57% for the
period ended June 30, 2001.
(n) Expense ratio is net of expense reimbursements. Had such reimbursements
not been made, the annual expense ratio would have been 2.49%, 3.44%, and
3.69% for the years ended December 31, 2000, 1999, and 1998, respectively,
and 3.18% for the period ended June 30, 2001.
(o) The Fund entered into a new sub-advisory agreement with Morgan Stanley
Dean Witter Investment Management, Inc. during the period shown.
(p) The total investment return includes the effect of the capital
contribution of $.32 per share. The total investment return without the
capital contribution would have been 79.02%.
(q) Expense ratio is net of expense reimbursements. Had such reimbursements
not been made, the annual expense ratio would have been .31% for the
period ended June 30, 2001.
(r) Expense ratio is net of expense reimbursements. Had such reimbursements
not been made, the annual expense ratio would have been .37% and .38% and
.63% for the years ended December 31, 2000, 1999, and 1998, respectively.
(s) Expense ratio is net of expense reimbursements. Had such reimbursements
not been made, the annual expense ratio would have been 1.76% and 1.71%
for the years ended December 31, 2000 and 1999, respectively, and 1.61%
for the period ended June 30, 2001.
(t) Expense ratio is net of expense reimbursements. Had such reimbursements
not been made, the annual expense ratio would have been 1.05%, 1.12%, and
1.55%, for the years ended December 31, 1998, 1997, and 1996,
respectively.
(u) Expense ratio is net of expense reimbursements. Had such reimbursements
not been made, the annual expense ratio would have been 1.27%, 1.31%,
1.82, 1.56%, and 1.44% for the years ended December 31, 2000, 1999, 1998,
1997, and 1996, respectively, and 1.31% for the period ended June 30,
2001.
(v) The Fund entered into a new sub-advisory agreement with Capital Guardian
Trust Company during the period shown.
(w) Expense ratio is net of expense reimbursements. Had such reimbursements
not been made, the annual expense ratio would have been 1.13%, 1.42%, and
2.34%, for the years ended December 31, 1998, 1997, and 1996,
respectively.
(x) Expense ratio is net of expense reimbursements. Had such reimbursements
not been made, the annual expense ratio would have been 1.04% and 1.20%
for the years ended December 31, 2000 and 1999, respectively, and 1.06%
for the period ended June 30, 2001.
(y) Expense ratio is net of expense reimbursements. Had such reimbursements
not been made, the annual expense ratio would have been 1.06% and 2.74%,
for the years ended December 31, 1997 and 1996, respectively.
(z) Expense ratio is net of expense reimbursements. Had such reimbursements
not been made, the annual expense ratio would have been 1.09% and 1.17%
for the years ended December 31, 2000 and 1999, respectively, and 1.00%
for the period ended June 30, 2001.
(1) The Fund entered into a new sub-advisory agreement with Goldman Sachs
Asset Management during the period shown.
(2) Expense ratio is net of expense reimbursements. Had such reimbursements
not been made, the annual expense ratio would have been 1.95% for the
period ended June 30, 2001.
(3) Expense ratio is net of expense reimbursements. Had such reimbursements
not been made, the annual expense ratio would have been 1.36% and 1.42%
for the years ended December 31, 2000 and 1999, respectively, and 1.16%
for the period ended June 30, 2001.
(4) The Fund entered into a new sub-advisory agreement with Wellington
Management Company, LLP during the period shown.
(5) The total investment return includes the effect of the capital
contribution of $0.001 per share. The total investment return without the
capital contribution would have been 6.18%.
(6) Expense ratio is net of expense reimbursements. Had such reimbursements
not been made, the annual expense ratio would have been 1.14% and 2.15%,
for the years ended December 31, 1997 and 1996, respectively.
(7) Expense ratio is net of expense reimbursements. Had such reimbursements
not been made, the annual expense ratio would have been .27%, .35%, and
.71%, for the years ended December 31, 2000, 1999, and 1998, respectively.
67
FINANCIAL HIGHLIGHTS
JOHN HANCOCK VARIABLE SERIES TRUST I
-------------------------------------------------------------------------------
(8) Expense ratio is net of expense reimbursements. Had such reimbursements
not been made, the annual expense ratio would have been 1.05% and 1.17%
for the year ended December 31, 2000 and 1999, respectively.
(9) Expense ratio is net of expense reimbursements. Had such reimbursements
not been made, the annual expense ratio would have been 1.23%, 2.24%, and
4.55%, for the years ended December 31, 2000, 1999, and 1998,
respectively, and 1.16% for the period ended June 30, 2001.
(10) The Fund entered into a new sub-advisory agreement with T. Rowe Price
Associates, Inc. during the period shown.
(11) Expense ratio is net of expense reimbursements. Had such reimbursements
not been made, the annual expense ratio would have been 1.29% and 1.61%
for the year ended December 31, 2000 and 1999, respectively, and 1.10%
for the period ended June 30, 2001.
(12) Expense ratio is net of expense reimbursements. Had such reimbursements
not been made, the annual expense ratio would have been .78% for the
period ended June 30, 2001.
(13) Expense ratio is net of expense reimbursements. Had such reimbursements
not been made, the annual expense ratio would have been .79% for the year
ended December 31, 1996.
(14) Expense ratio is net of expense reimbursements. Had such reimbursements
not been made, the annual expense ratio would have been .95%, .96%,
1.08%, 1.30%, and 2.06%, for the years ended December 31, 2000, 1999,
1998, 1997 and 1996, respectively, and 1.01% for the period ended June
30, 2001.
(15) Expense ratio is net of expense reimbursements. Had such reimbursements
not been made, the annual expense ratio would have been 1.09%, 1.15%,
1.46%, 1.57%, and 2.76%, for the years ended December 3, 2000, 1999,
1998, 1997, and 1996, respectively, and 1.03% for the period ended June
30, 2001.
(16) The Fund entered into a new sub-advisory agreement with T. Rowe Price
International, Inc. during the period shown.
(17) Excludes merger activity.
(18) Expense ratio is net of expense reimbursements. Had such reimbursements
not been made, the annual expense ratio would have been .22%, .34%, .65%,
and 1.61%, for the years ended December 31, 1999, 1998, 1997, and 1996,
respectively.
(19) The total investment return includes the effect of the capital
contribution of $.04 per share. The total investment return without the
capital contribution would have been 32.47%.
(20) The total investment return includes the effect of the capital
contribution of $.06 per share. The total investment return without the
capital contribution would have been 13.59%.
(21) Expense ratio is net of expense reimbursements. Had such reimbursements
not been made, the annual expense ratio would have been .87%, 1.04%, and
2.03%, for the years ended December 31, 2000, 1999, and 1998,
respectively, and .84% for the period ended June 30, 2001.
(22) Expense ratio is net of expense reimbursements. Had such reimbursements
not been made, the annual expense ratio would have been .91%, .84%,
1.02%, 1.32%, and 1.57%, for the years ended December 31, 2000, 1999,
1998, 1997, and 1996, respectively, and .98% for the period ended June
30, 2001.
(23) Per share amounts have been restated to reflect a 10-for-1 stock split
effective May 1, 2001.
(24) Had the Fund not amortized premiums on debt securities, the annual ratio
of net income to average net assets would have been 1.58% for the period
ended June 30, 2001.
(25) Had the Fund not amortized premiums on debt securities, the annual ratio
of net income to average net assets would have been 6.33% for the period
ended June 30, 2001.
(26) Had the Fund not amortized premiums on debt securities, the annual ratio
of net income to average net assets would have been 5.85% for the period
ended June 30, 2001.
(27) Had the Fund not amortized premiums on debt securities, the annual ratio
of net income to average net assets would have been 1.75% for the period
ended June 30, 2001.
(28) Had the Fund not amortized premiums on debt securities, the annual ratio
of net income to average net assets would have been 6.40% for the period
ended June 30, 2001.
(29) Had the Fund not amortized premiums on debt securities, the annual ratio
of net income to average net assets would have been 1.58% for the period
ended June 30, 2001.
(30) Had the Fund not amortized premiums on debt securities, the annual ratio
of net income to average net assets would have been 6.14% for the period
ended June 30, 2001.
(31) Had the Fund not amortized premiums on debt securities, the annual ratio
of net income to average net assets would have been 9.27% for the period
ended June 30, 2001.
(32) Had the Fund not amortized premiums on debt securities, the annual ratio
of net income to average net assets would have been 4.43% for the period
ended June 30, 2001.
68
SCHEDULE OF INVESTMENTS
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
LARGE CAP GROWTH FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Automobile - 0.5%
General Motors Corp. - Cl. H ......................... 216,600 $ 4,386
Chemical - 0.3%
Praxair, Inc. ........................................ 65,000 3,055
Commercial Services - 1.7%
Arbitron, Inc. ....................................... 90,000 2,169
Concord EFS, Inc. .................................... 110,000 5,721
Informix Corp. ....................................... 12,452 73
Omnicom Group, Inc. .................................. 78,100 6,716
---------
14,679
Computer Equipment - 10.0%
Advanced Micro Devices, Inc. ......................... 110,000 3,177
Dell Computer Corp. .................................. 385,300 10,076
Intel Corp. .......................................... 1,322,100 38,671
International Business Machines Corp. ................ 234,200 26,465
Lexmark International Group, Inc. - Cl. A ............ 134,000 9,011
---------
87,400
Computer Software & Services - 13.6%
Adobe Systems, Inc. .................................. 189,800 8,921
Cadence Design Systems, Inc. * ....................... 281,400 5,242
Electronic Data Systems Corp. ........................ 83,000 5,187
First Data Corp. ..................................... 50,100 3,219
Fiserv, Inc. ......................................... 60,000 3,839
Intuit, Inc.* ........................................ 206,000 8,238
Microsoft Corp. ...................................... 843,000 61,539
Oracle Corp.* ........................................ 671,200 12,753
Peoplesoft, Inc. ..................................... 60,300 2,969
SunGard Data Systems, Inc. ........................... 239,200 7,178
---------
119,085
Consumer Miscellaneous - 0.8%
Black & Decker Corp. ................................. 184,100 7,265
Cosmetic & Personal Care - 0.8%
Colgate-Palmolive Co. ................................ 120,000 7,079
Diversified Operations - 10.1%
Danaher Corp. ........................................ 98,200 5,499
General Electric Co. ................................. 1,599,500 77,976
Tyco International, Ltd. ............................. 90,000 4,905
---------
88,380
Electric Power - 1.1%
Calpine Corp. * ...................................... 91,400 3,455
Duke Energy Co. ...................................... 95,000 3,706
Exelon Corp. ......................................... 35,000 2,244
---------
9,405
Electronic Products & Services - 8.8%
Analog Devices, Inc.* ................................ 179,600 7,768
Applera Corporation - Applied Biosystems Group ....... 160,000 4,280
Applied Materials, Inc.* ............................. 169,400 8,317
Cabot Microelectronics Corp. ......................... 38,000 2,356
Cisco Systems, Inc. * ................................ 668,300 12,163
KLA-Tencor Corp. * ................................... 105,900 6,192
LSI Logic Corp. ...................................... 179,000 3,365
Maxim Integrated Products, Inc.* ..................... 141,500 6,256
Novellus Systems, Inc. * ............................. 101,900 5,787
QLogic Corp. ......................................... 24,500 1,579
Tektronix, Inc. ...................................... 115,600 3,139
Texas Instruments, Inc. .............................. 297,500 9,371
Waters Corp. ......................................... 71,300 1,969
Xilinx, Inc. * ....................................... 117,100 4,829
---------
77,371
Energy - Alternative Source - 0.9%
Dynegy, Inc. - Cl. A ................................. 132,100 6,143
El Paso Corp. ........................................ 43,500 2,285
---------
8,428
Food, Beverage & Tobacco - 2.0%
Archer Daniels Midland Co. ........................... 184,100 2,393
Philip Morris Cos., Inc. ............................. 275,800 13,997
Sara Lee Corp. ....................................... 63,402 1,201
---------
17,591
Health Care Products - 18.7%
Abbott Laboratories .................................. 140,000 6,721
Allergan, Inc. ....................................... 155,400 13,287
American Home Products Corp. ......................... 172,900 10,104
Baxter International, Inc. ........................... 72,000 3,528
Bristol-Myers Squibb Co. ............................. 187,700 9,817
Invitrogen Corp. * ................................... 87,600 6,290
Johnson & Johnson .................................... 322,774 16,139
Laboratory Corp. of America Holdings ................. 62,400 4,798
Merck & Co., Inc. .................................... 256,500 16,393
Pfizer, Inc. ......................................... 1,388,500 55,609
Pharmacia Corp. ...................................... 141,700 6,511
Schering-Plough Corp. ................................ 330,400 11,974
UnitedHealth Group, Inc. ............................. 48,000 2,964
---------
164,135
Health Care Services - 1.9%
Lincare Holdings, Inc. ............................... 283,000 8,493
Trigon Healthcare, Inc. .............................. 73,700 4,779
Universal Health Services, Inc. - Cl. B * ............ 82,200 3,740
---------
17,012
Insurance - 1.8%
Everest Group, Ltd. .................................. 25,000 1,870
Hartford Financial Services Group, Inc. .............. 62,700 4,289
Lincoln National Corp. ............................... 88,500 4,580
69
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
LARGE CAP GROWTH FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Insurance - Continued
Partners, Ltd. .......................................... 86,200 $ 4,775
---------
15,514
Leisure & Recreation - 0.2%
Sabre Group Holdings, Inc. .............................. 38,000 1,900
Media - TV & Radio - 7.0%
AOL Time Warner, Inc. * ................................. 802,400 42,527
BEA Systems, Inc. ....................................... 108,100 3,320
Clear Channel Communications, Inc. * .................... 38,700 2,426
Viacom, Inc. - Cl. B * .................................. 168,900 8,741
Westwood One, Inc. * .................................... 123,800 4,562
---------
61,576
Natural Gas Distribution - 0.4%
Enron Corp. ............................................. 69,800 3,420
Oil & Natural Gas Exploration & Production - 0.3%
Noble Drilling Corp. * .................................. 80,000 2,620
Oil - Equipment & Service - 0.3%
BJ Services Co. ......................................... 107,200 3,042
Personal & Commercial Lending - 0.9%
Citigroup, Inc. ......................................... 150,000 7,926
Retail - Department Stores - 9.0%
Abercrombie & Fitch Co. ................................. 102,800 4,575
Bed Bath & Beyond, Inc. ................................. 100,000 3,120
Family Dollar Stores, Inc. .............................. 175,300 4,493
Home Depot, Inc. ........................................ 400,000 18,620
Kohl's Corp. ............................................ 289,500 18,160
Lowe's Cos., Inc. ....................................... 130,400 9,461
Target Corp. ............................................ 62,400 2,159
TJX Cos., Inc. .......................................... 153,100 4,879
Wal-Mart Stores, Inc. ................................... 272,500 13,298
---------
78,765
Retail - Drug Stores - 1.1%
CVS Corp. ............................................... 89,400 3,451
Walgreen Co. ............................................ 171,800 5,867
---------
9,318
Telecommunication Equipment - 2.8%
Comverse Technology, Inc. * ............................. 55,100 3,146
Linear Technology Corp. ................................. 156,400 6,916
Micron Technology, Inc. ................................. 70,200 2,885
Nokia Oyj - ADR ......................................... 87,400 1,927
Qualcomm, Inc. .......................................... 161,700 9,456
---------
24,330
Telecommunication Services - 1.7%
Broadwing, Inc. ......................................... 182,300 4,457
Sprint PCS (PCS Group) .................................. 310,200 7,492
Verizon Communications .................................. 53,700 2,873
---------
14,822
Telephone - 1.7%
AT&T Corp. - Liberty Media Group - Cl. A * ............. 216,500 $ 3,787
Qwest Communications International, Inc. * ............. 344,700 10,985
---------
14,772
U.S. Government Agencies - 1.1%
Federal National Mortgage Assoc. ....................... 117,400 9,997
---------
TOTAL COMMON STOCK-99.5% 873,273
---------
SHORT-TERM INVESTMENTS
Investment in joint trading account - 2.0%
Investment in joint trading account
3.97% due 07/02/01 .......................... $ 17,658 17,658
Cash Equivalents - 2.3%
Navigator Securities Lending Prime
Portfolio ** ................................ 22,023,031 20,023
------------- ---------
TOTAL SHORT-TERM INVESTMENTS 4.3% 37,681
------------- ---------
TOTAL INVESTMENTS- 103.8% 910,954
Other Assets & Liabilities, Net- (3.8)% (33,072)
------------- ---------
NET ASSETS- 100.0% $ 877,882
============= =========
ADR-American Depository Receipts.
* Non-income producing security.
** Represents investment of security lending collateral.
See notes to financial statements.
70
SCHEDULE OF INVESTMENTS
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
FUNDAMENTAL GROWTH FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Bank - 1.6%
M&T Bank Corp. .................................. 3,750 $ 283
Zions Bancorp ................................... 6,400 378
---------
661
Brokerage & Investment Management - 2.1%
Investment Technology Group, Inc. ............... 7,500 377
Legg Mason, Inc. ................................ 9,700 483
---------
860
Business Services - 1.6%
Interpublic Group Cos., Inc. .................... 22,800 669
Commercial Services - 7.2%
Cintas Corp. .................................... 10,700 495
Concord EFS, Inc. ............................... 8,100 421
Convergys Corp. * .............................. 23,500 711
Ecolab, Inc. .................................... 9,600 393
Lamar Advertising Co.* .......................... 11,100 489
The Dun & Bradstreet Corp. * .................... 11,800 395
---------
2,904
Computer Equipment - 1.6%
Brocade Communications Systems, Inc. * .......... 8,600 378
McData Corp. .................................... 3,900 69
Network Appliance, Inc. ......................... 13,800 189
---------
636
Computer Software & Services - 11.8%
Adobe Systems, Inc. ............................. 6,800 319
Fiserv, Inc. .................................... 10,300 659
i2 Technologies, Inc. ........................... 6,600 131
Informatica Corp. ............................... 9,400 163
Internet Security System, Inc. .................. 5,555 270
Manugistics Group, Inc. ......................... 6,400 160
Micromuse, Inc. * .............................. 12,100 339
Peregrine Systems, Inc. ......................... 42,500 1,232
Retek, Inc. ..................................... 11,800 566
SunGard Data Systems, Inc. ...................... 2,000 60
Synopsys, Inc. .................................. 3,550 172
VeriSign, Inc. .................................. 10,050 603
WebMethods, Inc. ................................ 4,000 85
---------
4,759
Consumer Miscellaneous - 2.3%
Harley-Davidson, Inc. ........................... 20,000 942
Cosmetic & Personal Care - 1.6%
Estee Lauder Cos., Inc. - Cl. A ................. 14,800 638
Electric Power - 2.1%
Calpine Corp. * ................................ 8,350 316
CMS Energy Corp. ................................ 10,700 298
Mirant Corp.* .................................. 6,600 227
---------
841
Electronic Products & Services - 15.0%
Applera Corporation - Applied Biosystems
Group .......................................... 14,600 390
Atmel Corp. * .................................. 41,500 560
Celestica, Inc. ................................. 9,150 471
Emulex Corp. * .................................. 7,000 283
GlobeSpan, Inc. ................................. 10,250 150
Integrated Device Technology, Inc. .............. 8,400 266
Jabil Circuit, Inc. ............................. 11,200 346
KLA-Tencor Corp. * .............................. 4,150 243
Lam Research Corp. .............................. 6,000 178
LSI Logic Corp. ................................. 14,800 278
Maxim Integrated Products, Inc. * .............. 4,600 203
Micrel, Inc. .................................... 8,500 280
PerkinElmer, Inc. ............................... 26,000 716
PMC-Sierra, Inc. ................................ 14,600 454
QLogic Corp. * .................................. 13,200 851
Waters Corp. * .................................. 14,000 386
---------
6,055
Energy - Alternative Source - 0.9%
Dynegy, Inc. - Cl.A ............................. 7,470 347
Financial Services - 1.0%
Providian Financial Corp.* ...................... 6,600 391
Food, Beverage & Tobacco - 1.0%
Sysco Corp. ..................................... 15,400 418
Health Care Products - 17.9%
Abgenix, Inc.* .................................. 5,550 250
Allergan, Inc. .................................. 9,250 791
Andrx Corp.* .................................... 8,600 662
Diversa Corp. ................................... 4,300 87
Forest Laboratories, Inc.* ...................... 550 39
Genzyme Corp. ................................... 3,800 232
Gilead Sciences, Inc. * ........................ 5,850 340
Human Genome Sciences, Inc. ..................... 3,950 238
IDEXX Laboratories, Inc. * ...................... 7,900 247
Inhale Therapeutic Systems, Inc. * .............. 10,300 237
Invitrogen Corp. ................................ 1,500 108
Ivax Corp. ...................................... 23,025 898
King Pharmaceuticals, Inc. ...................... 8,000 430
MedImmune, Inc. * .............................. 23,000 1,086
Millennium Pharmaceuticals, Inc. * .............. 14,700 523
Protein Design Labs, Inc. * .................... 2,800 243
Shire Pharmaceuticals Group Place
ADR ............................................ 6,100 338
Stryker Corp. ................................... 8,350 458
---------
7,207
Health Care Services - 2.5%
AmeriSource Health Corp. - Cl. A ................ 7,600 420
Idec Pharmaceuticals Corp. ...................... 3,700 251
Quest Diagnostics, Inc. * ...................... 4,800 359
---------
1,030
71
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
FUNDAMENTAL GROWTH FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Insurance - 2.6%
Ace, Ltd.* ...................................... 14,600 $ 571
XL Capital, Ltd. - Cl. A ........................ 6,100 501
--------
1,072
Leisure & Recreation - 1.0%
Four Seasons Hotels, Inc. ....................... 3,800 210
International Game Technology ................... 3,200 201
--------
411
Media - TV / Radio - 2.4%
BEA Systems, Inc. ............................... 11,200 344
Radio One, Inc. ................................. 3,100 71
Radio One, Inc. - Cl. D* ........................ 4,600 101
Time Warner Telecom, Inc. - Cl. A ............... 6,340 213
Univision Communications, Inc. - Cl. A* ......... 5,700 244
--------
973
Oil & Natural Gas Exploration & Production - 4.1%
Devon Energy Corp. .............................. 5,400 284
Global Marine, Inc.* ............................ 21,600 402
Murphy Oil Corp. ................................ 3,750 276
Transocean Sedco Forex, Inc. .................... 16,900 697
--------
1,659
Oil - Equipment & Service - 2.1%
Cooper Cameron Corp.* ........................... 4,900 273
Smith International, Inc. ....................... 9,300 557
--------
830
Personal & Commercial Lending - 2.1%
AmeriCredit Corp. ............................... 3,900 202
Capital One Financial Corp. ..................... 8,100 486
Metris Cos., Inc. ............................... 4,500 152
--------
840
Real Estate Investment Trust - 0.8%
Boston Properties, Inc. ......................... 7,700 315
Real Estate Operations - 0.6%
HomeStore.com, Inc. ............................. 7,000 245
Retail - Department Stores - 3.6%
Family Dollar Stores, Inc. ...................... 21,400 549
RadioShack Corp. ................................ 12,300 375
Talbots, Inc. ................................... 4,300 188
Tiffany & Co. ................................... 9,167 332
--------
1,444
Retail - Food - 3.3%
Darden Restaurants, Inc. ........................ 14,650 409
Starbucks Corp. * .............................. 39,500 908
--------
1,317
Telecommunication Equipment - 3.6%
Comverse Technology, Inc.* ...................... 3,950 226
Linear Technology Corp. ......................... 2,900 128
Sonus Networks, Inc.* ........................... 13,000 304
Symbol Technologies, Inc. ....................... 35,550 789
--------
1,447
Telecommunication Services - 0.8%
Crown Castle International Corp. ................ 19,000 312
Telephone - 1.0%
Telephone and Data Systems, Inc. ................ 3,600 391
--------
TOTAL COMMON STOCK- 98.2% 39,614
--------
Par
Value
(000's)
SHORT-TERM INVESTMENTS - 2.9%
Investment in joint trading account
3.97% due 07/02/01 .............................. $ 1,186 1,186
-------- --------
TOTAL INVESTMENTS- 101.1% 40,800
Other Assets & Liabilities, Net- (1.1)% (458)
-------- --------
NET ASSETS- 100.0% $ 40,342
======== ========
ADR-American Depository Receipts.
*Non-income producing security.
See notes to financial statements.
72
SCHEDULE OF INVESTMENTS
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
AGGRESSIVE BALANCED FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Aerospace & Defense - 1.5%
Boeing Co. ...................................... 800 $ 44
General Dynamics Corp. .......................... 1,300 101
United Technologies Corp. ....................... 2,100 154
--------
299
Automobile - 1.4%
Ford Motor Co. .................................. 4,900 120
General Motors Corp. ............................ 1,800 116
General Motors Corp. - Cl. H .................... 2,400 49
--------
285
Bank - 4.3%
Bank of America Corp. ........................... 2,100 126
Bank of New York Co., Inc. ...................... 2,400 115
Comerica, Inc. .................................. 900 52
FleetBoston Financial Corp. ..................... 1,700 67
JP Morgan Chase & Co. ........................... 3,200 143
US Bancorp ...................................... 8,200 187
Washington Mutual, Inc. ......................... 5,100 191
--------
881
Chemical - 1.8%
Air Products & Chemicals, Inc. .................. 2,100 96
Dow Chemical Co. ................................ 5,500 183
Praxair, Inc. ................................... 2,100 99
--------
378
Commercial Services - 0.7%
Avery Dennison Corp. ............................ 1,700 87
Concord EFS, Inc. ............................... 900 47
--------
134
Computer Equipment - 4.7%
Apple Computer, Inc. ............................ 2,600 61
Dell Computer Corp. ............................. 4,100 107
Intel Corp. ..................................... 11,100 325
International Business Machines Corp. ........... 2,800 316
Lexmark International Group, Inc. - Cl. A ....... 2,200 148
--------
957
Computer Software & Services - 6.4%
Adobe Systems, Inc. ............................. 1,100 52
Cadence Design Systems, Inc. .................... 4,600 86
Electronic Data Systems Corp. ................... 1,500 94
First Data Corp. ................................ 2,800 180
Intuit, Inc. .................................... 1,000 40
Microsoft Corp. ................................. 8,400 613
Oracle Corp. .................................... 6,400 121
Peoplesoft, Inc. ................................ 700 34
SunGard Data Systems, Inc. ...................... 2,600 78
--------
1,298
Consumer Miscellaneous - 0.7%
Black & Decker Corp. ............................ 2,200 87
Parker-Hannifin Corp. ........................... 1,300 55
--------
142
Cosmetic & Personal Care - 1.1%
Avon Products, Inc. ............................. 2,200 102
Colgate-Palmolive Co. ........................... 1,000 59
Unilever NV - NY Shares ......................... 900 53
--------
214
Diversified Operations - 5.6%
Danaher Corp. ................................... 1,300 73
General Electric Co. ............................ 17,100 834
Tyco International, Ltd. ........................ 4,300 234
--------
1,141
Electric Power - 2.1%
AES Corp. ....................................... 700 30
Allegheny Energy, Inc. .......................... 1,800 87
Duke Energy Co. ................................. 3,400 133
Exelon Corp. .................................... 2,700 173
--------
423
Electronic Products & Services - 2.6%
Analog Devices, Inc. ............................ 1,600 69
Applied Materials, Inc. ......................... 1,200 59
Cisco Systems, Inc. ............................. 3,500 64
KLA-Tencor Corp. ................................ 900 53
LSI Logic Corp. ................................. 2,300 43
Maxim Integrated Products, Inc. ................. 1,200 53
Tektronix, Inc. ................................. 1,700 46
Texas Instruments, Inc. ......................... 3,000 95
Xilinx, Inc. .................................... 1,200 49
--------
531
Energy - Alternative Source - 0.7%
Dynegy, Inc. - Cl. A ............................ 1,800 83
El Paso Corp. ................................... 1,100 58
--------
141
Food, Beverage & Tobacco - 3.5%
Anheuser-Busch Cos., Inc. ....................... 1,900 78
Archer Daniels Midland Co. ...................... 4,000 52
Coca-Cola Co. ................................... 1,900 86
General Mills, Inc. ............................. 2,200 97
Kraft Foods, Inc. - Cl. A ...................... 1,300 40
PepsiCo, Inc. ................................... 1,500 66
Philip Morris Cos., Inc. ........................ 4,900 249
Sara Lee Corp. .................................. 2,280 43
--------
711
Health Care Products - 8.9%
Abbott Laboratories ............................. 2,000 96
Allergan, Inc. .................................. 1,400 120
American Home Products Corp. .................... 1,800 105
Bristol-Myers Squibb Co. ........................ 4,100 215
73
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
AGGRESSIVE BALANCED FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Health Care Products - Continued
Invitrogen Corp. ................................ 600 $ 43
Johnson & Johnson ............................... 4,700 235
Laboratory Corporation of America Holdings ...... 1,200 92
Merck & Co., Inc. ............................... 4,200 268
Millipore Corp. ................................. 700 43
Pfizer, Inc. .................................... 13,300 533
Schering-Plough Corp. ........................... 2,000 73
--------
1,823
Health Care Services - 0.7%
First Health Group Corp. ........................ 1,400 34
Lincare Holdings, Inc. .......................... 2,000 60
Trigon Healthcare, Inc. ......................... 800 52
--------
146
Insurance - 3.4%
American International Group, Inc. .............. 1,400 121
Hartford Financial Services Group, Inc. ......... 2,400 164
Lincoln National Corp. .......................... 2,500 129
St. Paul Cos., Inc. ............................. 2,000 101
Torchmark, Inc. ................................. 2,300 93
XL Capital, Ltd. - Cl. A ........................ 1,000 82
--------
690
Leisure & Recreation - 0.4%
Sabre Group Holdings, Inc. ...................... 1,500 75
Media - TV & Radio - 3.5%
AOL Time Warner, Inc. ........................... 8,100 429
Clear Channel Communications, Inc. .............. 700 44
The Walt Disney Co. ............................. 3,400 98
Viacom, Inc. - Cl. B ............................ 2,800 145
--------
716
Metals & Mining - 1.1%
Alcan Aluminum, Ltd. ............................ 1,200 51
Alcoa, Inc. ..................................... 1,500 59
Minnesota Mining & Manufacturing Co. ............ 1,000 114
--------
224
Natural Gas Distribution - 0.3%
Enron Corp. ..................................... 1,800 88
Oil - 1.3%
Baker Hughes, Inc. .............................. 1,800 60
Royal Dutch Petroleum Co. - NY Shares ........... 3,700 216
--------
276
Oil & Natural Gas Exploration & Production - 3.5%
BP Amoco PLC - ADR .............................. 800 40
Chevron Corp. ................................... 1,500 136
Exxon Mobil Corp. ............................... 4,900 428
Kerr-McGee Corp. ................................ 700 46
Noble Drilling Corp. ............................ 800 26
USX-Marathon Group .............................. 1,600 47
--------
723
Paper & Forest Products - 0.5%
Kimberly-Clark Corp. ............................ 1,800 101
Personal & Commercial Lending - 2.9%
Citigroup, Inc. ................................. 11,100 586
Retail - Department Stores - 5.7%
Abercrombie & Fitch Co. ......................... 1,400 62
Bed Bath & Beyond, Inc. ......................... 2,100 65
Home Depot, Inc. ................................ 3,200 149
Kohl's Corp. .................................... 2,100 132
Lowe's Cos., Inc. ............................... 3,100 225
May Department Stores Co. ....................... 1,900 65
Target Corp. .................................... 2,300 80
TJX Cos., Inc. .................................. 3,600 115
Toys "R" Us, Inc. ............................... 1,500 37
Wal-Mart Stores, Inc. ........................... 4,900 239
--------
1,169
Retail - Drug Stores - 0.7%
CVS Corp. ....................................... 2,100 81
Walgreen Co. .................................... 1,500 51
--------
132
Retail - Food - 0.2%
Brinker International, Inc. ..................... 1,200 31
Steel - 0.2%
Nucor Corp. ..................................... 1,000 49
Telecommunication Equipment - 1.1%
Comverse Technology, Inc. ....................... 700 40
Linear Technology Corp. ......................... 1,600 71
Qualcomm, Inc. .................................. 1,900 111
--------
222
Telecommunication Services - 3.2%
Broadwing, Inc. ................................. 3,000 73
Sprint PCS (PCS Group) .......................... 4,500 109
Verizon Communications .......................... 7,100 380
WorldCom, Inc. .................................. 7,000 99
--------
661
Telephone - 1.7%
AT&T Corp. - Liberty Media Group -
Cl. A ........................................ 5,500 96
Qwest Communications International, Inc. ........ 5,300 169
Telephone and Data Systems, Inc. ................ 700 76
--------
341
Transportation Services - 0.2%
Union Pacific Corp. ............................. 600 33
74
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
AGGRESSIVE BALANCED FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
U.S. Government Agencies - 1.4%
Federal National Mortgage Assoc. ................ 3,300 $ 281
----------
TOTAL COMMON STOCK- 78.0% 15,902
----------
Par
Value
(000's)
PUBLICLY-TRADED-BONDS
Aerospace & Defense - 0.1%
Lockheed Martin Corp. - Bonds
8.5% due 12/01/29 ............................... $ 15 17
Automobile - 0.3%
Ford Motor Co. - Bonds
6.625% due 10/01/28 ............................. 60 52
Bank - 0.7%
Bank of America Corp.
7.4% due 01/15/11 ............................... 80 83
BankBoston Corp. - Sr. Notes
6.125% due 03/15/02 ............................. 50 51
----------
134
Brokerage & Investment Management - 0.4%
Lehman Brothers Holdings, Inc. - Notes
6.625% due 04/01/04 ............................. 50 51
Morgan Stanley Group, Inc.
6.75% due 04/15/11 .............................. 30 30
----------
81
Computer Equipment - 0.1%
International Business Machines Corp. - Notes
5.625% due 04/12/04 ............................. 30 30
Electric Power - 0.1%
Exelon Corp. - Sr. Notes
6.75% due 05/01/11 .............................. 25 24
Financial Services - 0.8%
Associates Corp. of North America - Sr. Notes
6.25% due 11/01/08 .............................. 45 44
General Electric Capital Corp.
7.5% due 05/15/05 ............................... 30 32
Goldman Sachs Group, Inc.
6.875% due 01/15/11 ............................. 25 25
Green Tree Financial Corp. - Ser. 1996-8
Cl. A6
7.6% due 10/15/27 ............................... 50 53
----------
154
Foreign Governmental - 0.4%
Province of Quebec - Debs.
5.5% due 04/11/06 ............................... 35 34
7.5% due 09/15/29 ............................... 45 48
----------
82
Health Care Services - 0.4%
Columbia/HCA Healthcare Corp.
6.91% due 06/15/05 .............................. 30 30
HCA-The Healthcare Co. - Sr. Notes
7.875% due 02/01/11 ............................. 50 50
----------
80
Media - TV & Radio - 0.3%
News America, Inc. - Debs.
7.125% due 04/08/28 ............................. 20 17
Time Warner, Inc.
6.625% due 05/15/29 ............................. 20 18
Viacom, Inc.
7.7% due 07/30/10 ............................... 30 32
----------
67
Natural Gas Distribution - 0.2%
Enron Corp. - Debs.
9.125% due 04/01/03 ............................. 30 32
Personal & Commercial Lending - 1.7%
Citigroup, Inc.
6.5% due 01/18/11 ............................... 60 60
Citigroup, Inc. - Notes
6.5% due 02/07/06 ............................... 30 30
Ford Motor Credit Co. - Notes
6.875% due 02/01/06 ............................. 60 61
General Motors Acceptance Corp.
7.5% due 07/15/05 ............................... 40 42
Household Financial Corp. - Notes
6.0% due 05/01/04 ............................... 30 30
6.5% due 01/24/06 ............................... 75 76
6.75% due 05/15/11 .............................. 50 49
----------
348
Retail - Department Stores - 0.5%
Target Corp.
6.35% due 01/15/11 .............................. 60 59
Wal Mart Stores, Inc.
7.55% due 02/15/30 .............................. 40 44
----------
103
Retail - Food - 0.2%
The Kroger Co.
6.8% due 04/01/11 ............................... 50 49
Telecommunication Equipment - 0.1%
BellSouth Capital Funding - Debs.
7.875% due 02/15/30 ............................. 10 11
Telecommunication Services - 0.2%
Worldcom, Inc. - Notes
7.5% due 05/15/11 ............................... 45 44
Telephone - 0.3%
AT&T Corp. - Notes
6.5% due 03/15/29 ............................... 15 13
75
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
AGGRESSIVE BALANCED FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED-BONDS - Continued
Telephone - Continued
Sprint Capital Corp.
7.625% due 01/30/11 ............................. $ 40 $ 39
U.S. West Capital Funding, Inc.
6.875% due 07/15/28 ............................. 10 9
--------
61
U.S. Government Agencies - 11.2%
Federal National Mortgage Assoc.
6.0% due 07/25/16 ............................... 150 148
6.0% due 07/25/31 ............................... 220 211
6.625% due 11/15/30 ............................. 168 169
6.75% due 08/15/02 .............................. 110 113
7.0% due 07/25/31 ............................... 240 241
7.125% due 06/15/10 ............................. 160 171
7.5% due 07/25/16 ............................... 300 308
7.5% due 07/25/31 ............................... 279 285
Federal National Mortgage Assoc. - Notes
4.75% due 11/14/03 .............................. 400 400
7.0% due 07/15/05 ............................... 220 232
--------
2,278
U.S. Governmental - 3.1%
U.S. Treasury - Bonds
5.875% due 11/15/04 ............................. 310 321
8.875% due 08/15/17 ............................. 90 118
U.S. Treasury - Notes
5.75% due 08/15/10 .............................. 65 67
6.5% due 02/15/10 ............................... 20 21
6.625% due 05/15/07 ............................. 100 107
--------
634
TOTAL PUBLICLY-TRADED BONDS ..................... 21.1% 4,281
-------- --------
SHORT-TERM INVESTMENTS - 7.3%
Investment in joint trading account
3.97% due 07/02/01 ............................. 1,495 1,495
-------- --------
TOTAL INVESTMENTS- 106.4% 21,678
Other Assets & Liabilities, Net- (6.4)% (1,300)
-------- --------
NET ASSETS- 100.0% $ 20,378
======== ========
ADR-American Depository Receipts.
See notes to financial statements.
76
SCHEDULE OF INVESTMENTS
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
ACTIVE BOND FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS
Aerospace & Defense - 1.0%
Boeing Cap. Corp. - Sr. Notes
6.1% due 03/01/11 ............................... $ 2,480 $ 2,417
Jet Equipment Trust
10.91% due 08/15/14 ............................. 2,100 2,268
Lockheed Martin Corp. - Bonds
8.5% due 12/01/29 ............................... 3,305 3,665
---------
8,350
Agricultural Operations - 0.5%
Cargill, Inc.
6.25% due 05/01/06 .............................. 1,870 1,867
Marlin Water Trust - Sr. Notes 144A
7.09% due 12/15/01 .............................. 2,553 2,570
---------
4,437
Automobile - 0.7%
Delphi Automotive Systems Corp. - Notes
6.55% due 06/15/06 .............................. 3,100 3,104
Ford Motor Co. - Bonds
7.45% due 07/16/31 .............................. 2,675 2,567
---------
5,671
Bank - 4.0%
Abbey National First Capital - Sr. Sub. Notes
8.2% due 10/15/04 ............................... 4,000 4,281
Bank One Corp.
7.875% due 08/01/10 ............................. 1,575 1,686
Barclays Bank PLC 144A
7.375% due 12/15/49 ............................. 2,070 2,056
BNP Paribus Capital Trust - Sub. 144A
9.003% due 12/29/49 ............................. 1,625 1,779
Capital One Bank - Sr. Notes
6.875% due 02/01/06 ............................. 1,905 1,860
Colonial Bank Montgomery Al -
Sub. Notes
9.375% due 06/01/11 ............................. 1,555 1,589
HSBC Holdings PLC
7.5% due 07/15/09 ............................... 2,115 2,210
International Bank of
Reconstruction & Development - Debs.
8.25% due 09/01/16 .............................. 2,150 2,523
RBSG Capital Corp. - Notes
10.125% due 03/01/04 ............................ 5,000 5,500
Royal Bank of Scotland Group PLC
8.817% due 03/31/05 ............................. 1,870 2,006
Sanwa Bank , Ltd. - Sub. Notes
7.4% due 06/15/11 ............................... 1,650 1,591
Skandinaviska Enskida Banken -
Sub. Notes STEP UP 144A
6.5% due 12/29/49 ............................... 1,935 1,947
Standard Chartered Bank - Sub. Notes 144A
8.0% due 05/30/31 ............................... 1,685 1,712
Zions Financial Corp. - GTD 144A
6.95% due 05/15/11 .............................. 2,255 2,255
---------
32,995
Brokerage & Investment Management - 0.4%
Salomon Brothers Mortgage Securities VII
6.75% due 07/25/24 .............................. 1,890 1,897
Salomon, Inc. - Notes
5.875% due 03/15/06 ............................. 1,540 1,530
---------
3,427
Chemical - 0.7%
Akzo Nobel, Inc. - Bonds 144A
6.0% due 11/15/03 ............................... 1,630 1,644
Equistar Chemical - Notes
8.5% due 02/15/04 ............................... 1,650 1,596
Millenium America, Inc. 144A
9.25% due 06/15/08 .............................. 790 790
NOVA Chemicals Corp. - Notes
7.0% due 05/15/06 ............................... 1,665 1,658
---------
5,688
Computer Software & Services - 0.4%
Systems 2001 LLC - Cl. B 144A
7.156% due 12/15/11 ............................. 3,120 3,117
Container - 0.3%
Sealed Air Corp.
8.75% due 07/01/08 .............................. 985 959
Stone Container Corp.
9.75% due 02/01/11 .............................. 1,315 1,338
---------
2,297
Cosmetic & Personal Care - 0.2%
International Flavors & Fragrances,
Inc.- Notes 144A
6.45% due 05/15/06 .............................. 1,980 1,977
Electric Power - 8.4%
AES Corp.
9.375% due 09/15/10 ............................. 725 730
AES Corp. - Sr. Notes
9.5% due 06/01/09 ............................... 1,645 1,678
AES Corp. - Sr. Sub. Notes
10.25% due 07/15/06 ............................. 2,243 2,254
AES Eastern Energy
9.0% due 01/02/17 ............................... 2,130 2,180
77
SCHEDULE OF INVESTMENTS - Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
ACTIVE BOND FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - Continued
Electric Power - Continued
Beaver Valley Funding Corp. - Debs.
9.0% due 06/01/17 ............................... $ 2,365 $ 2,486
BVPS II Funding Corp. - Coll. Lease Bonds
8.89% due 06/01/17 .............................. 2,464 2,620
CalEnergy Co., Inc. - Bonds
8.48% due 09/15/28 .............................. 2,685 2,893
Calpine Canada Energy
8.5% due 05/01/08 ............................... 1,600 1,536
Calpine Corp.
8.25% due 08/15/05 .............................. 1,460 1,449
Calpine Corp. - Sr. Notes
8.5% due 02/15/11 ............................... 1,595 1,534
10.5% due 05/15/06 .............................. 1,920 1,958
Cleveland Electric Illuminating Co.
7.88% due 11/01/17 .............................. 480 489
Cleveland Electric Illuminating Co. - 1st Mtge.
9.5% due 05/15/05 ............................... 5,775 5,949
CMS Energy Corp.
9.875% due 10/15/07 ............................. 730 765
CMS Energy Corp. - Sr. Notes
6.75% due 01/15/04 .............................. 2,040 1,960
8.125% due 05/15/02 ............................. 2,650 2,655
CMS Energy Corp - Sr. Notes
8.5% due 04/15/11 ............................... 310 301
Exelon Generation Co. LLC - Sr. Notes 144A
6.95% due 06/15/11 .............................. 3,090 3,070
Long Island Lighting Co. - Debs.
8.2% due 03/15/23 ............................... 3,235 3,279
Mirant Corp.
8.3% due 05/01/11 ............................... 1,940 1,954
Monterrey Power SA de CV - Sec. Bonds 144A
9.625% due 11/15/09 ............................. 650 684
Niagara Mohawk Power Corp. - Debs.
8.77% due 01/01/18 .............................. 3,909 3,984
Pinnacle West Capital Corp. - Sr. Notes
6.4% due 04/01/06 ............................... 2,345 2,299
PNPP II Funding Corp. - Debs.
9.12% due 05/30/16 .............................. 2,455 2,629
Progress Energy, Inc. - Sr. Notes
7.1% due 03/01/11 ............................... 1,555 1,575
PSEG Energy Holdings, Inc. - Sr. Notes 144A
8.625% due 02/15/08 ............................. 1,665 1,673
PSEG Power LLC
8.625% due 04/15/31 ............................. 1,665 1,794
Sierra Pacific Resources - Notes
8.75% due 05/15/05 .............................. 1,125 1,151
System Energy Resources, Inc. - 1st Mtge.
7.71% due 08/01/01 .............................. 2,590 2,596
TXU Electric & Gas
8.175% due 01/30/37 ............................. 1,810 1,781
Waterford Funding Corp. - Bonds
8.09% due 01/02/17 .............................. 4,136 4,073
XCEL Energy, Inc. - Sr. Notes
7.0% due 12/01/10 ............................... 2,470 2,478
---------
68,457
Electrical Equipment - 0.3%
HQI Transelec Chile
7.875% due 04/15/11 ............................. 2,500 2,509
Financial Services - 4.0%
American Express Credit Corp.
7.2% due 09/17/07 ............................... 2,000 2,119
Bank of New York Institution Capital 144A
7.78% due 12/01/26 .............................. 3,350 3,282
ERAC USA Finance Co.
7.95% due 12/15/09 .............................. 1,675 1,707
ERAC USA Finance Co. - Notes 144A
6.625% due 02/15/05 ............................. 900 892
ERAC USA Finance Co. - Notes GTD 144A
7.35% due 06/15/08 .............................. 1,550 1,536
Fosters Finance Corp. - Notes 144A
6.875% due 06/15/11 ............................. 1,490 1,476
Goldman Sachs Group, Inc.
6.875% due 01/15/11 ............................. 2,385 2,372
Heller Financial, Inc. - Notes
6.375% due 03/15/06 ............................. 1,490 1,501
ING Capital Funding Trust III
8.439% due 12/31/49 ............................. 1,770 1,878
Pemex Project
9.125% due 10/13/10 ............................. 2,500 2,639
Qwest Capital Funding - Bonds 144A
7.75% due 02/15/31 .............................. 3,215 3,154
Sun Canada Financial Co. - Bonds 144A
6.625% due 12/15/07 ............................. 3,345 3,247
The MONY Group, Inc. - Sr. Notes
7.45% due 12/15/05 .............................. 2,395 2,444
UBS Preferred Funding
8.622% due 10/29/49 ............................. 1,805 1,951
URC Holdings Corp. - Sr. Notes 144A
7.875% due 06/30/06 ............................. 1,840 1,991
---------
32,189
78
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
ACTIVE BOND FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - Continued
Food, Beverage & Tobacco - 0.9%
Archer Daniels Midland Co.
7.0% due 02/01/31 ............................... $ 2,145 $ 2,074
Canandaigua Brands, Inc. - Sr. Sub.
Notes
8.75% due 12/15/03 .............................. 2,365 2,383
Earthgrains Co.
8.375% due 08/01/03 ............................. 2,500 2,569
----------
7,026
Foreign Governmental - 0.9%
Hydro-Quebec - Debs. Ser. IF
7.375% due 02/01/03 ............................. 1,000 1,037
Province of Quebec - Debs
7.5% due 09/15/29 ............................... 610 646
Republic of Brazil
8.0% due 04/15/14 ............................... 4,107 3,029
Republic of Columbia
9.75% due 04/09/11 .............................. 2,280 2,331
----------
7,043
Health Care Products - 0.4%
Fresenius Medical Capital Trust II
7.875% due 02/01/08 ............................. 1,740 1,727
Fresenius Medical Capital Trust IV
TR PFD Secs 144A
7.875% due 06/15/11 ............................. 1,360 1,326
----------
3,053
Health Care Services - 1.2%
Dynacare, Inc. - Sr. Notes
10.75% due 01/15/06 ............................. 2,125 2,157
HCA-The Healthcare Corp. - Notes
7.125% due 06/01/06 ............................. 2,350 2,318
8.75% due 09/01/10 .............................. 1,150 1,225
Healthsouth Corp. - Sr. Notes
8.5% due 02/01/08 ............................... 1,240 1,252
Quest Diagnostics, Inc. - Sr. Notes
6.75% due 07/12/06 .............................. 1,665 1,648
Tenet Healthcare Corp. - Sr. Notes
8.0% due 01/15/05 ............................... 545 561
Triad Hospitals
8.75% due 05/01/09 .............................. 830 842
----------
10,003
Insurance - 1.7%
AXA - Sub Notes
8.6% due 12/15/30 ............................... 2,510 2,757
Equitable Life Assurance Society
USA - Notes 144A
6.95% due 12/01/05 .............................. 1,240 1,274
Hartford Life, Inc. - Sr. Notes
7.375% due 03/01/31 ............................. 1,655 1,663
Mass. Mutual Life Insurance Co. -
Notes 144A
7.625% due 11/15/23 ............................. 2,640 2,671
New York Life Insurance Co. - Sr.
Notes 144A
7.5% due 12/15/23 ............................... 5,970 5,661
----------
14,026
Leisure & Recreation - 0.7%
Harrah's Operating Co., Inc.
7.875% due 12/15/05 ............................. 1,270 1,289
Harrah's Operating, Inc. - Sr. Notes
144A
7.125% due 06/01/07 ............................. 2,320 2,299
MGM Mirage, Inc.
8.5% due 09/15/10 ............................... 1,430 1,483
Station Casinos, Inc. - Sr. Notes
8.375% due 02/15/08 ............................. 675 679
----------
5,750
Media - TV & Radio - 4.5%
Adelphia Communications Corp.
10.25% due 06/15/11 ............................. 940 921
Adelphia Communications Corp. -
Sr. Notes
8.125% due 07/15/03 ............................. 1,270 1,232
9.25% due 10/01/02 .............................. 2,460 2,472
AOL Time Warner, Inc.
7.625% due 04/15/31 ............................. 2,510 2,520
British Sky Broadcasting
8.2% due 07/15/09 ............................... 1,845 1,834
Charter Communications Holdings
LLC - Sr. Notes
11.125% due 01/15/11 ............................ 605 638
Charter Communications Holdings
LLC - Sr. Notes 144A
10.0% due 05/15/11 .............................. 630 639
Clear Channel Communications,
Inc. - Sr. Notes
7.875% due 06/15/05 ............................. 3,115 3,272
Continental Cablevision - Sr. Notes
8.3% due 05/15/06 ............................... 2,940 3,156
CSC Holdings, Inc. - Sr. Notes
Ser.144A
7.625% due 04/01/11 ............................. 2,780 2,647
EchoStar DBS Corp. - Sr. Notes
9.375% due 02/01/09 ............................. 965 963
Lenfest Communications, Inc.
8.375% due 11/01/05 ............................. 1,690 1,810
Mediacom LLC
9.5% due 01/15/13 ............................... 1,340 1,280
News America Holdings, Inc. -
Debs.
8.25% due 08/10/18 .............................. 1,095 1,090
79
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
ACTIVE BOND FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - Continued
Media - TV & Radio - Continued
News America, Inc. - Sr. Debs
7.3% due 04/30/28 ............................... $ 1,585 $ 1,409
Rogers Cablesystems - Sr. Notes
10.0% due 03/15/05 .............................. 1,205 1,265
TCI Communications, Inc. - Debs.
7.875% due 02/15/26 ............................. 1,780 1,800
Time Warner, Inc. - Debs.
9.125% due 01/15/13 ............................. 2,108 2,409
Viacom, Inc. 144A
6.4% due 01/30/06 ............................... 1,305 1,324
7.875% due 07/30/30 ............................. 2,430 2,560
Viacom, Inc. - Sr. Notes 144A
6.4% due 01/30/06 ............................... 1,225 1,243
Viacom, Inc.
---------
36,484
Metal Production & Fabrication - 0.2%
Yanacocha Receivables - Pass thru
Certs. 144A
8.4% due 06/15/05 ............................... 1,335 1,308
Metals & Mining - 0.4%
Newmont Mining Corp.- Notes
8.625% due 05/15/11 ............................. 1,575 1,555
Phelps Dodge Corp. - Notes
8.75% due 06/01/11 .............................. 2,005 1,987
---------
3,542
Municipals - 0.4%
New Hampshire State - Taxable
Pease Dev. Auth.
7.7% due 07/01/12 ............................... 3,000 3,157
Natural Gas Distribution - 0.7%
Enron Corp. - Notes 144A
8.0% due 08/15/05 ............................... 2,510 2,588
Keyspan Corp. - Sr. Notes
8.0% due 11/15/30 ............................... 1,660 1,782
Louis Dreyfus Natural Gas Corp.
6.875% due 12/01/07 ............................. 1,690 1,683
---------
6,053
Oil & Natural Gas Exploration & Production - 2.4%
Alberta Energy, Ltd. - Notes
8.125% due 09/15/30 ............................. 1,800 1,940
Chesapeake Energy Corp.
8.125% due 04/01/11 ............................. 920 865
Forest Oil Corp. - Sr. Notes 144A
8.0% due 06/15/08 ............................... 1,010 985
NRG Energy, Inc.
7.75% due 04/01/11 .............................. 2,445 2,474
Occidental Petroleum Corp. - Sr.
Debs.
10.125% due 09/15/09 ............................ 3,000 3,498
Ocean Energy, Inc.
8.875% due 07/15/07 ............................. 1,325 1,404
Petroleum Geo-Services ASA - Sr.
Notes
7.125% due 03/30/28 ............................. 2,165 1,772
Snyder Oil Corp.
8.75% due 06/15/07 .............................. 805 853
Transocean Forex, Inc. - Notes
144A
7.5% due 04/15/31 ............................... 2,460 2,463
Union Pacific Resources Group,
Inc. - Debs.
7.15% due 05/15/28 .............................. 2,685 2,570
Valero Energy Corp. - Notes
8.375% due 06/15/05 ............................. 1,005 1,077
---------
19,901
Oil - Equipment & Service - 0.3%
Humpuss Funding Corp. - 144A
7.72% due 12/15/09 .............................. 998 805
TOSCO Corp.
8.125% due 02/15/30 ............................. 1,840 2,006
---------
2,811
Paper & Forest Products - 0.7%
Georgia Pacific Corp. - Notes
7.5% due 05/15/06 ............................... 1,550 1,558
8.875% due 05/15/31 ............................. 1,635 1,637
International Paper Co.
8.125% due 07/08/05 ............................. 2,540 2,689
---------
5,884
Paper Products - 0.3%
Stora Enso Corp. - Notes
7.375% due 05/15/11 ............................. 2,545 2,578
Personal & Commercial Lending - 7.4%
Citigroup, Inc.
6.5% due 01/18/11
1,645 1,633
Commercial Mortgage
Acceptance Corp. -
Ser. 1991-C1 A1
6.79% due 06/15/31 .............................. 3,157 3,232
CS First Boston
Mortgage Securities
Corp. - Ser. 1998-C1
A1A
6.26% due 04/11/30 .............................. 5,095 5,153
Deutsche Mortgage &
Asset Receiving
Corp. - Ser. 1998-C1
Cl. C
6.861% due 03/15/08 ............................. 2,170 2,155
EQCC Home Equity Loan
Trust
6.57% due 02/15/29 .............................. 2,120 2,142
Ford Motor Credit Co.
- Notes
6.875% due 02/01/06 ............................. 2,095 2,122
80
SCHEDULE OF INVESTMENTS
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
ACTIVE BOND FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINUED
Personal & Commercial Lending - Continued
General Motors
Acceptance Corp.
7.5% due 07/15/05 ............................... $ 2,535 $ 2,651
GMAC Commercial
Mortgage Securities,
Inc. - 1997-C1 A2
6.853% due 09/15/06 ............................. 7,325 7,540
Household Financial
Corp.
6.5% due 01/24/06 ............................... 1,620 1,642
Household Financial
Corp. - Notes
8.0% due 05/09/05 ............................... 3,175 3,387
Household Financial
Corp. - Notes
8.0% due 07/15/10 ............................... 1,650 1,767
LB Commercial Conduit
Mortgage Trust -
Ser. 1999-C1
6.41% due 08/15/07 .............................. 3,264 3,311
Midland Funding Corp.
II - Debs.
11.75% due 07/23/05 ............................. 4,665 5,132
Money Store Home
Equity Trust - Ser.
1997-C1 DAF7
6.485% due 12/15/28 ............................. 3,791 3,843
Standard Credit Card
Master Trust
8.25% due 01/07/07 .............................. 2,535 2,745
Takefuji Corp.
9.2% due 04/15/11 ............................... 2,110 2,178
Tiers Fixed Rate
Certificates Ser.
2001 144A
7.2% due 06/15/04 ............................... 3,095 3,095
UCFC Home Equity Loan
7.18% due 02/15/25 .............................. 1,115 1,149
UCFC Home Equity Loan
- Ser.
1997-A1 A8
7.22% due 06/15/28 .............................. 5,660 5,841
----------
60,718
Pollution Control - 0.1%
Waste Management,
Inc. - Sr. Notes
7.375% due 08/01/10 ............................. 875 876
Real Estate Development - 0.1%
EOP Operating LP
6.625% due 02/15/05 ............................. 985 991
Real Estate Investment Trust - 2.6%
American Health
Properties, Inc. -
Notes
7.5% due 01/15/07 ............................... 1,350 1,332
Amresco Residential
Securities - Mtge.
Loan
6.51% due 08/25/27 .............................. 7,496 7,583
Cabot Industrial
Properties LP -
Notes
7.125% due 05/01/04 ............................. 1,975 2,014
Camden Property Trust
- Sr. Notes
7.0% due 04/15/04 ............................... 2,170 2,205
Healthcare Realty
Trust IN - Sr. Notes
8.125% due 05/01/11 ............................. 1,570 1,563
IMC Home Equity Loan
Trust - Ser. 1998-1
A4
6.6% due 03/20/25 ............................... 3,280 3,346
Liberty Property LP -
Notes
6.6% due 06/05/02 ............................... 1,675 1,708
Mack-Cali Realty LP -
Notes
7.75% due 02/15/11 .............................. 1,655 1,673
----------
21,424
Real Estate Operations - 0.3%
HMH Properties, Inc.
- Ser. A
7.875% due 08/01/05 ............................. 2,075 2,002
Retail - Department Stores - 0.2%
Kingdom MART Corp. -
Notes 144A
9.875% due 06/15/08 ............................. 1,540 1,498
Retail - Food - 0.3%
Delhaize America,
Inc.
8.125% due 04/15/11 ............................. 2,330 2,430
Telecommunication Equipment - 1.0%
BellSouth Capital
Funding - Debs.
7.875% due 02/15/30 ............................. 1,740 1,853
Deutsche Telekom
International
Finance
7.75% due 06/15/05 .............................. 3,100 3,241
8.25% due 06/15/30 .............................. 1,680 1,728
Vulcan Materials -
Notes
6.4% due 02/01/06 ............................... 1,190 1,195
----------
8,017
Telecommunication Services - 3.5%
AT&T Wireless Group -
Sr. Notes 144A
8.75% due 03/01/31 .............................. 3,195 3,319
Citizens
Communications Co. -
Notes
8.5% due 05/15/06 ............................... 1,555 1,597
9.25% due 05/15/11 .............................. 1,555 1,617
Cox Communications,
Inc. - Notes
7.75% due 11/01/10 .............................. 1,785 1,864
Crown Castle
International Corp.
- Sr. Notes
9.0% due 05/15/11 ............................... 645 561
Crown Castle
International Corp.
- Sr. Notes 144A
9.375% due 08/01/11 ............................. 435 385
Dominion Resources,
Inc.
8.125% due 06/15/10 ............................. 2,680 2,886
France Telecom SA -
Notes 144A
8.5% due 03/01/31 ............................... 2,490 2,611
81
SCHEDULE OF INVESTMENTS
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
ACTIVE BOND FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINUED
Telecommunication Services - Continued
Telefonos De Mexico,
SA - Sr. Notes 144A
8.25% due 01/26/06 .............................. $ 3,400 $ 3,494
Tellus Corp. NT
8.0% due 06/01/11 ............................... 2,490 2,545
Triton PCS, Inc. -
Sr. Sub Notes
9.375% due 02/01/11 ............................. 730 708
Verizon Global
Funding Corp. -
Bonds 144A
7.75% due 12/01/30 .............................. 1,740 1,790
Voicestream Wireless
Corp.
11.5% due 09/15/09 .............................. 1,540 1,771
Worldcom, Inc.
8.0% due 05/15/06 ............................... 3,125 3,240
---------
28,388
Telephone - 1.5%
LCI International,
Inc. - Sr. Notes
7.25% due 06/15/07 .............................. 2,205 2,267
Metronet
Communications Corp.
- Sr. Disc. Notes
0.0% due 11/01/07 ............................... 1,695 1,593
MetroNet
Communications Corp.
- Sr. Notes
12.0% due 08/15/07 .............................. 1,770 1,950
Pinnacle Partners
8.83% due 08/15/04 .............................. 2,355 2,422
Sprint Capital Corp.
6.875% due 11/15/28 ............................. 2,450 2,080
Sprint Capital Corp.
- Notes
7.125% due 01/30/06 ............................. 1,550 1,564
---------
11,876
Transportation Services - 2.6%
America West
Airlines, Inc. -
Pass through Certs.
6.93% due 01/02/08 .............................. 1,522 1,519
Burlington Northern
Santa Fe Corp.
7.95% due 08/15/30 .............................. 3,305 3,478
Continental Airlines,
Inc. - Pass thru
Certs.
7.206% due 06/30/04 ............................. 2,634 2,671
Delta Air lines, Inc.
7.7% due 12/15/05 ............................... 1,935 1,916
Northwest Airlines
Corp.
8.375% due 03/15/04 ............................. 1,350 1,319
Northwest Airlines
Corp. - Ser. 1996-1
8.97% due 01/02/15 .............................. 203 214
Northwest Airlines
Corp. - Sr. Notes
8.875% due 06/01/06 ............................. 1,555 1,491
NWA Trust - Sr. Notes
9.25% due 06/21/14 .............................. 2,198 2,377
Railcar Trust - Pass
thru Notes - Ser.
1992-1
7.75% due 06/01/04 .............................. 1,304 1,354
U.S. Air, Inc. - Pass
thru Certs. - Ser.
1990-A1
11.2% due 03/19/05 .............................. 984 1,018
United Air Lines
Corp.
7.032% due 04/01/12 ............................. 2,339 2,393
Wisconsin Central
Transportation Corp.
- Notes
6.625% due 04/15/08 ............................. 1,360 1,360
---------
21,110
U.S. Government Agencies - 29.1%
Federal National
Mortgage Assoc.
5.5% due 12/01/14 ............................... 11,774 11,369
6.0% due 09/01/14 ............................... 8,669 8,561
6.0% due 05/01/16 ............................... 4,135 4,073
6.0% due 02/01/31 ............................... 4,231 4,060
6.0% due 04/01/31 ............................... 3,268 3,136
6.0% due 05/01/31 ............................... 3,463 3,411
6.5% due 09/01/13 ............................... 102 102
6.5% due 07/01/14 ............................... 7,685 7,724
6.5% due 11/01/14 ............................... 115 116
6.5% due 01/01/15 ............................... 56 56
6.5% due 02/01/15 ............................... 91 92
6.5% due 06/01/15 ............................... 430 431
6.5% due 11/01/28 ............................... 9,358 9,226
7.0% due 09/01/10 ............................... 3,574 3,645
7.0% due 11/01/14 ............................... 5,162 5,249
7.0% due 03/01/31 ............................... 8,257 8,293
7.385% due 03/25/21 ............................. 920 959
7.5% due 02/01/31 ............................... 13,870 14,151
8.0% due 04/01/30 ............................... 6,310 6,517
8.0% due 06/01/30 ............................... 6,259 6,465
Federal National
Mortgage Assoc. Ser.
1997-M8 Cl.A
6.94% due 01/25/22 .............................. 1,372 1,414
Federal National
Mortgage Assoc. -
Notes
7.0% due 02/01/16 ............................... 4,845 4,926
Government National
Mortgage Assoc.
6.0% due 05/15/31 ............................... 9,376 9,074
6.5% due 07/15/28 ............................... 13,622 13,482
6.5% due 01/15/29 ............................... 2,725 2,697
6.5% due 02/15/29 ............................... 3,634 3,595
6.5% due 06/15/29 ............................... 25,069 24,794
6.5% due 08/15/29 ............................... 6,296 6,227
7.0% due 09/15/25 ............................... 1,891 1,914
7.0% due 08/15/28 ............................... 5,609 5,659
7.0% due 09/15/29 ............................... 13,878 14,000
82
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
ACTIVE BOND FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - Continued
U.S. Government Agencies - Continued
7.0% due 06/15/31 ............................... $ 3,480 $ 3,510
7.0% due 09/15/31 ............................... 4,060 4,095
7.5% due 09/15/29 ............................... 13,549 13,892
7.5% due 12/15/29 ............................... 6,977 7,154
8.0% due 05/15/25 ............................... 244 254
8.0% due 06/15/25 ............................... 208 216
8.0% due 09/15/25 ............................... 444 461
8.0% due 01/15/26 ............................... 231 240
8.0% due 08/15/27 ............................... 1,207 1,252
8.0% due 07/15/30 ............................... 5,253 5,441
8.5% due 09/15/21 ............................... 450 476
8.5% due 01/15/31 ............................... 12,999 13,584
9.0% due 05/15/21 ............................... 396 425
9.0% due 08/15/21 ............................... 375 402
9.5% due 06/15/16 ............................... 317 347
----------
237,167
U.S. - Governmental - 7.2%
U.S. Treasury - Bonds
6.25% due 05/15/30 .............................. 15,783 16,392
8.875% due 08/15/17 ............................. 2,919 3,832
U.S. Treasury - Notes
5.625% due 05/15/08 ............................. 1,195 1,242
5.75% due 08/15/03 .............................. 9,005 9,261
5.75% due 08/15/10 .............................. 9,670 9,894
7.0% due 07/15/06 ............................... 1,124 1,219
7.5% due 02/15/05 ............................... 15,816 17,212
----------
59,052
----------
TOTAL PUBLICLY-TRADED 92.5% 750,418
BONDS- ----------
Shares
PREFERRED STOCK
Media - TV & Radio - 7.2%
CSC Holdings, Inc. .............................. 27 2,874
----------
TOTAL PREFERRED STOCK- 0.4% 2,874
----------
WARRANTS
Telephone - 0.0%
Metronet Communications Corp. -
CW 144A Expires 08/15/07 ....................... 2 239
----------
TOTAL WARRANTS- 0.0% 239
----------
Par
Value
(000's)
SHORT-TERM INVESTMENTS
Investment in joint trading account - 6.6%
Investment in joint trading account
3.97% due 07/02/01 .............................. $ 53,840 53,840
Market
Name of Issuer Shares Value
(000's)
SHORT-TERM INVESTMENTS - Continued
Navigator Securities Lending
Prime Portfolio ** 247,040,782 $ 247,041
----------- ----------
TOTAL SHORT-TERM INVESTMENTS 36.9% 300,881
----------- ----------
TOTAL INVESTMENTS- 129.8% 1,059,276
Other Assets & Liabilities, Net- (29.8)% (242,979)
----------- ----------
NET ASSETS- 100.0% $ 816,297
=========== ==========
(a) Pursuant to Rule 144A under the Securities Act of 1993, these securities
may be resold in transactions exempt from registration, normally to
qualified institutional buyers. At June 30, 2001, securities aggregated
$84,516 or 10.4% of net assets of the Portfolio.
** Represents investment of security lending collateral.
See notes to financial statements.
83
SCHEDULE OF INVESTMENTS
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
ACTIVE BOND II FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS
Aerospace & Defense - 1.5%
Boeing Cap. Corp. - Sr. Notes
6.1% due 03/01/11 ............................... $ 20 $ 19
Lockheed Martin Corp.
8.2% due 12/01/09 ............................... 50 54
Lockheed Martin Corp. - Bonds
8.5% due 12/01/29 ............................... 25 28
-------
101
Agricultural Operations - 0.5%
Cargill, Inc.
6.25% due 05/01/06 .............................. 15 15
Potash Corp. of Saskatchewan - Notes
7.75% due 05/31/11 .............................. 20 20
-------
35
Automobile - 0.4%
Delphi Automotive Systems Corp. - Notes
6.55% due 06/15/06 .............................. 25 25
Bank - 3.2%
Bank One Corp.
7.875% due 08/01/10 ............................. 10 11
Barclays Bank PLC - Bonds 144A
8.55% due 09/29/49 .............................. 75 81
Barclays Bank PLC Perpetual Revs - 144A
7.375% due 12/15/49 ............................. 15 15
BNP Paribus Capital Trust - Sub 144A
9.003% due 12/29/49 ............................. 20 22
Capital One Bank - Sr. Notes
6.875% due 02/01/06 ............................. 10 10
Colonial Bank Montgomery Al - Sub Notes
9.375% due 06/01/11 ............................. 10 10
Sanwa Bank , Ltd. - Sub Notes
7.4% due 06/15/11 ............................... 15 14
Skandinaviska Enskida Banken - Sub.
Notes 144A
6.5% due 12/29/49 ............................... 15 15
Standard Chartered Bank - Sub Notes 144A
8.0% due 05/30/31 ............................... 15 15
Zions Financial Corp. - GTD 144A
6.95% due 05/15/11 .............................. 20 20
-------
213
Brokerage & Investment Management - 0.2%
Salomon, Inc. - Notes
5.875% due 03/15/06 ............................. 10 10
Chemical - 0.4%
Equistar Chemical - Notes
8.5% due 02/15/04 ............................... 15 14
Millenium America, Inc. 144A
9.25% due 06/15/08 .............................. 5 5
NOVA Chemicals Corp. - Notes
7.0% due 05/15/06 ............................... 10 10
-------
29
Computer Software & Services - 0.4%
Systems 2001 LLC - Cl. B 144A
7.156% due 12/15/11 ............................. 25 25
Container - 0.2%
Sealed Air Corp.
8.75% due 07/01/08 .............................. 5 5
Stone Container Corp.
9.75% due 02/01/11 .............................. 10 10
-------
15
Cosmetic & Personal Care - 0.2%
International Flavors & Fragrances, Inc.
- Notes 144A
6.45% due 05/15/06 .............................. 15 15
Electric Power - 1.7%
Calpine Canada Energy
8.5% due 05/01/08 ............................... 10 10
Calpine Corp. - Sr. Notes
8.5% due 02/15/11 ............................... 10 10
Exelon Generation Co. LLC - Sr. Notes
144A
6.95% due 06/15/11 .............................. 25 25
Mirant Corp.
8.3% due 05/01/11 ............................... 15 15
Pinnacle West Capital Corp. - Sr. Notes
6.4% due 04/01/06 ............................... 15 14
Progress Energy, Inc. - Sr. Notes
7.1% due 03/01/11 ............................... 15 15
PSEG Energy Holdings, Inc. - Sr. Notes
144A
8.625% due 02/15/08 ............................. 10 10
PSEG Power LLC
8.625% due 04/15/31 ............................. 15 16
-------
115
Electrical Equipment - 0.3%
HQI Transelec Chile
7.875% due 04/15/11 ............................. 20 20
Electronic Products & Services - 0.1%
CMS Energy Corp - Sr. Notes
8.5% due 04/15/11 ............................... 10 10
Financial Services - 5.4%
American Express Credit Corp.
7.2% due 09/17/07 ............................... 20 21
Amvescap PLC
6.6% due 05/15/05 ............................... 75 75
ERAC USA Finance Co.
7.95% due 12/15/09 .............................. 20 20
ERAC USA Finance Co. - GTD Notes 144A
7.35% due 06/15/08 .............................. 10 10
84
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
ACTIVE BOND II FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINUED
Financial Services - Continued
Fosters Finance Corp. - Notes 144A
6.875% due 06/15/11 ............................. $ 10 $ 10
General Electric Capital Corp.
6.65% due 09/03/02 .............................. 100 102
Goldman Sachs Group, Inc.
6.875% due 01/15/11 ............................. 15 15
Heller Financial, Inc. - Notes
6.375% due 03/15/06 ............................. 10 10
Pemex Project
9.125% due 10/13/10 ............................. 20 21
Qwest Capital Funding - Bonds 144A
7.75% due 02/15/31 .............................. 25 25
The MONY Group, Inc. - Sr. Notes
7.45% due 12/15/05 .............................. 25 25
UBS Preferred Funding TRI
8.622% due 10/29/49 ............................. 20 22
--------
356
Food, Beverage & Tobacco - 0.2%
Archer Daniels Midland Co.
7.0% due 02/01/31 ............................... 15 14
Foreign Governmental - 1.0%
Province of Quebec - Debs
7.5% due 09/15/29 ............................... 25 26
Republic of Brazil
8.0% due 04/15/14 ............................... 31 23
Republic of Columbia
9.75% due 04/09/11 .............................. 15 15
--------
64
Health Care Products - 0.2%
Fresenius Medical Capital Trust IV TR PFD
Secs. 144A
7.875% due 06/15/11 ............................. 10 10
Health Care Services - 0.7%
HCA-The Healthcare Corp. - Notes
7.125% due 06/01/06 ............................. 20 20
Healthsouth Corp. - Sr. Notes
8.5% due 02/01/08 ............................... 10 10
Quest Diagnostics, Inc. Sr. Notes
6.75% due 07/12/06 .............................. 10 10
Triad Hospitals
8.75% due 05/01/09 .............................. 5 5
--------
45
Insurance - 0.4%
AXA - Sub Notes
8.6% due 12/15/30 ............................... 15 17
Hartford Life, Inc. - Sr. Notes
7.375% due 03/01/31 ............................. 10 10
--------
27
Leisure & Recreation - 2.1%
Harrah's Operating Co., Inc.
7.875% due 12/15/05 ............................. 10 10
Harrah's Operating, Inc. - Sr. Notes 144A
7.125% due 06/01/07 ............................. 20 20
International Speedway Corp.
7.875% due 10/15/04 ............................. 100 103
Station Casinos, Inc. - Sr. Notes
8.375% due 02/15/08 ............................. 5 5
--------
138
Media - TV & Radio - 3.7%
Adelphia Communications Corp.
10.25% due 06/15/11 ............................. 10 10
AOL Time Warner, Inc.
7.625% due 04/15/31 ............................. 20 20
Charter Communications Holdings LLC - Sr.
Notes
11.125% due 01/15/11 ............................ 5 5
Charter Communications Holdings LLC - Sr.
Notes 144A
10.0% due 05/15/11 .............................. 5 5
Clear Channel Communications, Inc.
7.65% due 09/15/10 .............................. 50 52
Clear Channel Communications, Inc. - Sr.
Notes
7.875% due 06/15/05 ............................. 25 26
Continental Cablevision - Sr. Notes
8.3% due 05/15/06 ............................... 5 5
CSC Holdings, Inc. - Sr. Notes Ser.144A
7.625% due 04/01/11 ............................. 20 19
EchoStar DBS Corp. - Sr. Notes
9.375% due 02/01/09 ............................. 5 5
Mediacom LLC
9.5% due 01/15/13 ............................... 10 10
News America Holdings, Inc. - Debs.
8.25% due 08/10/18 .............................. 15 15
News America, Inc. - GTD Sr. Debs
7.3% due 04/30/28 ............................... 10 9
TCI Communications, Inc. - Debs.
7.875% due 02/15/26 ............................. 20 20
Viacom, Inc.
7.875% due 07/30/30 ............................. 20 21
Viacom, Inc. - 144A
6.4% due 01/30/06 ............................... 5 5
Viacom, Inc. - Sr. Notes 144A
6.4% due 01/30/06 ............................... 15 15
--------
242
Metals & Mining - 1.0%
Inco, Ltd. - Debs.
9.6% due 06/15/22 ............................... 40 41
Newmont Mining Corp. - Notes
8.625% due 05/15/11 ............................. 10 10
85
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
ACTIVE BOND II FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINUED
Metals & Mining - Continued
Phelps Dodge Corp. - Notes
8.75% due 06/01/11 .............................. $ 15 $ 15
-------
66
Natural Gas Distribution - 0.2%
Keyspan Corp. - Sr. Notes
8.0% due 11/15/30 ............................... 10 11
Oil & Natural Gas Exploration & Production - 2.2%
Alberta Energy, Ltd. - Notes
8.125% due 09/15/30 ............................. 25 27
Anadarko Petroleum Corp.
7.0% due 10/15/06 ............................... 50 51
Chesapeake Energy Corp.
8.125% due 04/01/11 ............................. 5 4
Forest Oil Corp. - Sr. Notes 144A
8.0% due 06/15/08 ............................... 10 10
NRG Energy, Inc.
7.75% due 04/01/11 .............................. 20 20
Transocean Forex, Inc. - Notes 144A
7.5% due 04/15/31 ............................... 20 20
Valero Energy Corp. - Notes
8.375% due 06/15/05 ............................. 10 11
-------
143
Oil - Equipment & Service - 1.6% TOSCO Corp.
8.125% due 02/15/30 ............................. 95 104
Paper & Forest Products - 0.8%
Georgia Pacific Corp. - Notes
7.5% due 05/15/06 ............................... 10 10
8.875% due 05/15/31 ............................. 15 15
International Paper Co.
8.125% due 07/08/05 ............................. 25 27
-------
52
Paper Products - 0.3%
Stora Enso Corp. - Notes
7.375% due 05/15/11 ............................. 20 20
Personal & Commercial Lending - 5.7%
Citigroup, Inc.
6.5% due 01/18/11 ............................... 20 20
CS First Boston Mortgage Securities Corp. -
Ser. 1998-C1 A1A
6.26% due 04/11/30 .............................. 19 19
Ford Motor Credit Co. - Notes
6.875% due 02/01/06 ............................. 15 15
General Motors Acceptance Corp.
7.5% due 07/15/05 ............................... 100 105
Household Financial Corp.
6.5% due 01/24/06 ............................... 20 20
Household Financial Corp. - Notes
8.0% due 05/09/05 ............................... 20 21
Household Financial Corp. - Notes. -
Continued
8.0% due 07/15/10 ............................... 10 11
Midland Funding Corp. II - Debs.
11.75% due 07/23/05 ............................. 30 33
Prime Credit Card Master Trust
6.7% due 11/15/05 ............................... 50 52
Standard Credit Card Master Trust
8.25% due 01/07/07 .............................. 35 38
Takefuji Corp.
9.2% due 04/15/11 ............................... 15 16
Tiers Fixed Rate Certificates - Ser. Mir
2001 14 Tr Ctf 144A
7.2% due 06/15/04 ............................... 25 25
-------
375
Pollution Control - 0.1%
Waste Management, Inc. - Sr. Notes
7.375% due 08/01/10 ............................. 5 5
Real Estate Development - 0.7%
EOP Operating LP
6.625% due 02/15/05 ............................. 20 20
EOP Operating LP - Notes
7.375% due 11/15/03 ............................. 25 26
-------
46
Real Estate Investment Trust - 0.5%
Healthcare Realty Trust - Sr. Notes
8.125% due 05/01/11 ............................. 10 10
Mack-Cali Realty LP - Notes
7.75% due 02/15/11 .............................. 25 25
-------
35
Retail - Department Stores - 1.8%
Kingdom Mart Corp. - Notes 144A
9.875% due 06/15/08 ............................. 10 10
Target Corp.
7.5% due 02/15/05 ............................... 100 106
-------
116
Retail - Food - 0.3%
Delhaize America, Inc.
8.125% due 04/15/11 ............................. 20 21
Telecommunication Equipment - 1.1%
BellSouth Capital Funding - Debs.
7.875% due 02/15/30 ............................. 15 16
Deutsche Telekom International Finance
7.75% due 06/15/05 .............................. 25 26
8.25% due 06/15/30 .............................. 15 16
Vulcan Materials - Notes
6.4% due 02/01/06 ............................... 15 15
-------
73
86
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
ACTIVE BOND II FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINUED
Telecommunication Services - 2.8%
AT&T Wireless Group - Sr. Notes Ser.144A
8.75% due 03/01/31 .............................. $ 25 $ 26
Citizens Communications Co. - Notes
8.5% due 05/15/06 ............................... 10 10
9.25% due 05/15/11 .............................. 10 10
Cox Communications, Inc. - Notes
7.75% due 11/01/10 .............................. 20 21
Crown Castle International Corp. - Sr.
Notes
9.0% due 05/15/11 ............................... 5 4
Crown Castle International Corp. - Sr
Notes 144A
9.375% due 08/01/11 ............................. 5 4
France Telecom SA - Notes 144A
8.5% due 03/01/31 ............................... 20 21
Telefonos De Mexico, SA - Sr. Notes 144A
8.25% due 01/26/06 .............................. 25 26
Tellus Corp. - Notes
8.0% due 06/01/11 ............................... 20 21
Triton PCS, Inc. - Sr. Sub Notes
9.375% due 02/01/11 ............................. 5 5
Verizon Global Funding Corp. - Bonds 144A
7.75% due 12/01/30 .............................. 10 10
Worldcom, Inc. .
8.0% due 05/15/06 ............................... 25 26
--------
184
Telephone - 0.9%
Metronet Communications Corp. - Sr. Disc.
Notes
0.0% due 11/01/07 ............................... 15 14
Pinnacle Partners
8.83% due 08/15/04 .............................. 15 16
Sprint Capital Corp.
6.875% due 11/15/28 ............................. 20 17
Sprint Capital Corp. - Notes
7.125% due 01/30/06 ............................. 10 10
--------
57
Transportation Services - 2.4%
Burlington Northern Santa Fe Corp.
7.95% due 08/15/30 .............................. 25 26
Delta Air Lines, Inc.
7.7% due 12/15/05 ............................... 15 15
Northwest Airlines Corp. - Sr. Notes
8.875% due 06/01/06 ............................. 10 10
United Airlines
7.73% due 07/01/10 .............................. 100 105
--------
156
U.S. Government Agencies - 35.6%
Federal Home Loan Mortgage Corp.
6.0% due 01/01/29 ............................... 183 176
7.5% due 01/01/30 ............................... 82 84
Federal National Mortgage Assoc.
5.125% due 02/13/04 ............................. 350 352
5.5% due 04/01/16 ............................... 99 96
6.0% due 04/01/16 ............................... 119 117
6.0% due 11/01/28 ............................... 119 114
6.5% due 04/01/31 ............................... 177 178
7.0% due 07/01/30 .............................. 61 62
7.0% due 12/01/30 ............................... 15 15
7.5% due 06/01/30 .............................. 99 101
7.5% due 07/01/30 ............................... 79 80
7.5% due 02/01/31 ............................... 10 10
8.0% due 12/01/29 .............................. 115 119
8.5% due 01/01/31 ............................... 85 89
Federal National Mortgage Assoc. - Notes
7.0% due 02/01/16 ............................... 120 123
7.125% due 01/15/30 ............................. 55 59
Government National Mortgage Assoc.
6.0% due 02/15/29 ............................... 99 96
7.0% due 01/15/31 ............................... 25 25
7.0% due 03/15/31 .............................. 119 120
7.0% due 06/15/31 ............................... 50 50
7.0% due 09/15/31 ............................... 35 35
7.5% due 12/15/29 ............................... 103 106
7.5% due 07/15/30 ............................... 41 42
8.0% due 06/15/30 ............................... 90 94
--------
2,343
U.S. Governmental - 11.8%
U.S. Treasury - Bills
3.435% due 09/13/01 ............................. 43 43
U.S. Treasury - Bonds ........................... 45 59
6.25% due 05/15/30 .............................. 55 58
8.875% due 08/15/17 ............................. 45 59
U.S. Treasury - Notes
3.375% due 01/15/07 ............................ 56 56
5.625% due 05/15/08 ............................. 10 10
5.75% due 08/15/03 .............................. 205 211
5.75% due 08/15/10 .............................. 225 230
7.0% due 07/15/06 .............................. 65 71
7.5% due 02/15/05 ............................... 30 33
--------
771
--------
TOTAL PUBLICLY-TRADED BONDS- 91.8% 5,976
--------
Shares
PREFERRED STOCK
Media - TV& Radio - 0.3%
CSC Holdings, Inc. .............................. 0 23
--------
TOTAL PREFERRED STOCK- 0.3% 23
--------
87
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
ACTIVE BOND II FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
SHORT-TERM INVESTMENTS
Investment in joint trading account - 8.3%
3.97% due 07/02/01 .............................. $ 547 $ 547
--------- --------
TOTAL INVESTMENTS- 101.1% 6,657
Other Assets & Liabilities, Net- (1.1)% (74)
--------- --------
NET ASSETS- 100.0% $6,583
========= ========
144A-Pursuant to Rule 144A under the Securities Act of 1993, these securities
may be resold in transactions exempt from registration, normally to
qualified institutional buyers. At June 30, 2000, securities aggregated
$519 or 7.8% of net assets of the Portfolio.
See notes to financial statements.
88
SCHEDULE OF INVESTMENTS
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
EMERGING MARKETS EQUITY FUND
Market
Name of Issuer Shares Value
(000's)
Brazil - 6.0%
Brasil Telecom Participacoes S.A. (TELS) ........ 5,985 $ 251
Centrais Electricas Brasileiras SA (UTIE) ....... 1,446,000 19
Centrais Electricas Brasileirias SA - ADR
(ELEQ) ......................................... 200 1
Companhia De Bebidas ADR (FOOD) ................. 6,860 159
Companhia Energetica de Minas Gerias - ADR
(UTIE) ......................................... 4,640 55
Companhia Vale do Rio Doce - ADR (META) ......... 815 19
Embraer - Empresa Brasileira de Aeronautica SA
(AERO) ......................................... 3,410 133
Embratel Participacoes SA - ADR (UTIT) .......... 100 1
Petroleo Brasileiro SA *(OILX) .................. 12,950 337
Petroleo Brasileiro SA - ADR (OILX) ............. 4,125 96
Tele Celular Sul Participacoes SA - ADR (TELS) .. 2,798 57
Tele Norte Leste Participacoes SA - ADR (TELS) .. 6,832 104
Telecomunicacoes Brasileiras SA - ADR (UTIT) .... 2,383 111
Telemig Celular Participacoes SA - ADR (TELS) ... 897 37
Telesp Celular Participacoes SA - ADR (TELS) .... 3,164 48
Unibanco - Uniao de Bancos Brasileiros SA -
GDR (BANK) ..................................... 6,731 171
Votorantim Celulose e Papel SA - ADR (PAPR) ..... 4,500 68
-------
1,667
Chile - 0.2%
Companhia de Telecomunicaciones de Chile Sa
(TELS) ......................................... 815 19
Enersis SA - ADR (UTIE) ......................... 1,900 28
-------
47
Czech Republic - 0.1%
Cesky Telecom - GDR *(TELS) ..................... 2,940 26
SPT Telecom AS (TELS) ........................... 1,410 13
-------
39
Egypt - 0.1%
Egypt Gas Co. (OILX) ............................ 500 9
Egypt Mobile Phone (TELS) ....................... 975 15
-------
24
Hong Kong - 9.1%
Asia Satellite Telecommunications Holdings,
Ltd. (TELS) .................................... 17,000 29
Beijing Capital International (FINL) ............ 151,000 47
Brilliance China Automotive Holdings, Ltd.
(AUTO) ......................................... 135,000 33
China Merchants Holdings International Co.,
Ltd. (CNSU) .................................... 155,000 118
China Overseas and Land Invest (TRAN) ........... 162,000 29
China Petroleum (OILX) .......................... 174,000 35
China Rare Earth (OILX) ......................... 17,000 6
China Res Beijing (UTIE) ........................ 103,000 29
China Resources Enterprise, Ltd. (UTIE) ......... 54,000 91
China Southern Airlines Company Limited (TRAN) .. 193,000 60
China Telecom (Hong Kong), Ltd. (TELS) .......... 204,000 1,075
China Unicom, Ltd. *(TELS) ...................... 32,000 56
Citic Pacific, Ltd. (DIOP) ...................... 49,000 152
CNOOC, Ltd. (OILX) .............................. 160,000 153
CNOOC, Ltd. - ADR*(OILX) ........................ 1,700 32
Cosco Pacific, Ltd. (COMM) ...................... 39,000 26
Denway Motors, Ltd. (AUTO) ...................... 304,300 109
Greencooltechnology (TELE) ...................... 159,000 63
Legend Holdings (COMP) .......................... 121,000 68
Nanjing Panda Electric (UTIE) ................... 168,000 73
New World China Ltd. (ENER) ..................... 44,000 21
Sun Television Cybernetworks Holdings, Ltd.
(MEDI) ......................................... 269,000 5
Travelesky Technology, Ltd. (SOFT) .............. 64,000 65
Yanzhou Coal Mining (META) ...................... 132,000 61
Yanzhou Coal Mining Co., Ltd. - ADR (META) ...... 2,160 52
-------
2,488
Hungary - 1.3%
Gedeon Richter Rt. ((HEAL) ...................... 1,924 107
Gedeon Richter, Ltd. - GDR (HEAL) ............... 690 38
Magyar Tavkozlesi Rt. (UTIT) .................... 3,604 11
Magyar Tavkozlesi Rt. - ADR (UTIT) .............. 4,834 72
MOL Magyar Olaj-es Gazipari Rt. (OILX) .......... 3,653 52
OTP Bank Rt. (BANK) ............................. 1,742 91
-------
371
India - 7.0%
Bharat Heavy Electricals, Ltd. (ELEQ) ........... 33,200 125
Bharat Petroleum Corp., Ltd. (OILS) ............. 16,300 65
BSES, Ltd.* (UTIE) .............................. 15,500 65
Cipla, Ltd. ((HEAL) ............................. 3,000 73
Colgate Palmolive (HNBA) ........................ 8,500 29
Container Corp. of India, Ltd. (TRAN) ........... 24,092 65
Dabur India, Ltd. (DIOP) ........................ 22,000 29
89
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
EMERGING MARKETS EQUITY FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
India - Continued
Dr. Reddy's Laboratories, Ltd. (HEAL) ........... 2,050 $ 70
Gujarat Ambuja Cements Ltd. (CONS) .............. 18,500 73
HCL Technologies, Ltd. *(SOFT) .................. 4,500 28
HDFC Bank Ltd. (BANK) ........................... 12,250 55
Hero Honda Motors, Ltd.* (CNSU) ................. 20,750 64
Hindustan Lever Ltd. (CNSU) ..................... 52,750 230
Hindustan Petroleum Corp., Ltd. (OILX) .......... 18,000 60
Housing Development Financing Corp., Ltd.
(LEND) ......................................... 11,880 174
Indialnfo, Ltd. (SOFT) .......................... 10,639 5
Infosys Technologies, Ltd. *(SOFT) .............. 1,690 135
ITC, Ltd. (FOOD) ................................ 1,250 20
ITC, Ltd. - GDR* (FOOD) ......................... 2,000 36
Lupin Laboratories, Ltd. (HEAL) ................. 4,600 7
Mahanagar Telephone Nigam, Ltd. (TELS) .......... 45,250 137
Nestle India, Ltd. (FOOD) ....................... 2,550 30
Ranbaxy Laboratories, Ltd. *(HEAL) .............. 5,250 54
Reliance Industries, Inc. (UTIE) ................ 13,500 106
State Bank of India*(BANK) ...................... 16,600 78
State Bank of India - GDR (BANK) ................ 3,500 39
Strides Arcolab, Ltd. (CNSU) .................... 2,500 3
Tata Ironsteel (STEE) ........................... 10,000 25
Wipro, Ltd.*(DIOP) .............................. 1,050 29
Zee Telefilms Ltd. (MEDI) ....................... 10,800 27
-------
1,936
Indonesia - 0.4%
Hampshire M Sampoerna (DIOP) .................... 71,500 101
Israel - 4.0%
Breezecom, Ltd.*(TELS) .......................... 10,260 45
Ceragon Networks, Ltd. (TELS) ................... 5,490 17
Check Point Software Technologies, Ltd. (SOFT) .. 4,282 217
ECI Telecommunications, Ltd. (MEDI) ............. 28,973 145
RADVision, Ltd. *(SOFT) ......................... 5,407 33
Radware, Ltd. *(SOFT) ........................... 7,989 144
Teva pharmaceutical Industries, Ltd. ((HEAL) .... 1,490 93
Teva Pharmaceutical Industries, Ltd. - ADR
(HEAL) ......................................... 4,398 274
TTI Team Telecom International, Ltd. *(TELS) .... 6,556 127
-------
1,095
Malaysia - 2.1%
British American Tobacco (Malaysia) Berhad
(FOOD) ......................................... 14,000 128
Digi Swisscom (TELS) ............................ 40,000 58
Malayan Banking Berhad (BANK) ................... 38,000 103
Malaysian Pacific Industries (ETRN) ............. 10,000 35
Public Bank Berhad (BANK) ....................... 123,300 73
Resorts World Berhad (LEIS) ..................... 19,000 26
Telekom Malaysia Berhad (TELS) .................. 36,000 83
Tenaga Nasional Berhad (UTIE) ................... 38,000 87
-------
593
Mexico - 13.6%
Alfa, S.A. *(DIOP) .............................. 42,690 59
America Movil SA de CV - ADR Ser. L 8(TELS) ..... 21,400 446
Cemex SA de CV - CPO (CONS) ..................... 53,598 285
Cemex SA de CV - ADR Participation
Certificates *(CONS) ........................... 749 20
Cifra SA de CV - Ser V (RETS) ................... 55,050 150
Fomento Economico Mexicano SA de CV (FOOD) ...... 6,899 29
Fomento Economico Mexicano SA de CV - ADR
(FOOD) ......................................... 9,173 393
Grupo Aeroportuario del Sureste SA de CV*
(TRAN) ......................................... 18,100 22
Grupo Aeroportuario Sur - ADR* (TRAN) ........... 5,600 105
Grupo Carso SA de CV - Ser. A1 (DIOP) ........... 15,700 47
Grupo Financiero Banamex Accival, SA de CV
(FINL) ......................................... 139,000 360
Grupo Financiero Bancomer SA de CV - Cl. O
(FINL) ......................................... 154,150 153
Grupo Financiero BBVA Bancomer, SA de CV
(FINL) ......................................... 8,300 164
Grupo Modelo SA de CV - Ser. C (FOOD) ........... 8,200 22
Grupo Sanborns SA - Ser. B1* (RETS) ............. 2,625 4
Grupo Televisa SA - GDR* (MEDI) ................. 6,386 256
Kimberly-Clark de Mexico SA de CV (PAPR) ........ 64,630 191
Telefonos de Mexico SA - ADR (UTIT) ............. 25,950 911
Wal-Mart de Mexico SA de CV - Ser. C (RETS) ..... 16,700 41
Wal-Mart de Mexico SA de CV - ADR* (RETS) ....... 3,216 87
-------
3,745
Poland - 1.5%
Bank Polska Kasa Opieki SA* (BANK) .............. 6,323 109
Elektrim Spolka Akcyjna SA (ETRN) ............... 3,777 24
Telekomunikacja (TELS) .......................... 2,707 12
90
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
EMERGING MARKETS EQUITY FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Poland - Continued
Telekomunikacja Polska - GDR* (TELS) ............ 63,565 $ 284
-------
429
Russia - 3.9%
LuKoil Holding - ADR (OILS) ..................... 5,950 285
Norilsk Nickel - ADR (PMET) ..................... 1,400 25
OAO Gazprom - ADR (UTIG) ........................ 4,500 50
RAO Unified Energy Systems - GDR (UTIE) ......... 29,496 336
Surgutneftegaz (OILS) ........................... 1,270 20
Surgutneftegaz - ADR (OILS) ..................... 28,527 365
-------
1,081
Singapore - 0.1%
Total Access Communication Public Co., Ltd
(TELS) ......................................... 14,000 31
South Africa - 9.1%
ABSA Group, Ltd. (BANK) ......................... 30,000 141
Anglo American Platinum Corp., Ltd. (PMET) ...... 5,248 234
Anglo American PLC (META) ....................... 15,777 234
Bidvest Group, Ltd. (DIOP) ...................... 16,598 103
Dimension Data Holdings PLC (SOFT) .............. 5,412 21
FirstRand, Ltd. (FINL) .......................... 215,960 231
Impala Platinum Holdings, Ltd. (META) ........... 3,109 156
Liberty Life Association of Africa, Ltd.
(INSU) ......................................... 15,920 115
M-Cell, Ltd. (TELS) ............................. 18,570 43
Nedcor, Ltd. (BANK) ............................. 6,940 135
Old Mutual PLC (OILX) ........................... 3,500 8
Remgro, Ltd.* (DIOP) ............................ 16,190 116
Sanlam, Ltd.* (INSU) ............................ 156,050 213
Sappi, Ltd. (READ) .............................. 6,600 58
Sasol, Ltd. (OILX) .............................. 20,103 184
South African Breweries PLC (FOOD) .............. 48,170 365
Standard Bank Investment Corp., Ltd. (BANK) ..... 35,500 155
-------
2,512
South Korea - 14.1%
Cheil Communications,
Inc. (MEDP) .................................... 1,830 159
Hana Bank (BANK) ................................ 8,600 63
Housing & Commercial
Bank (BANK) .................................... 3,130 70
Humax Co., Ltd.* (APPL) ......................... 10,485 154
Hyundai Mobis (AUTO) ............................ 11,410 123
Hyundai Motor Co., Ltd. (AUTO) .................. 16,680 363
Kookmin Bank (BANK) ............................. 17,263 232
Kookmin Credit Card Co. (LEND) .................. 2,020 58
Korea Electric Power Corp. (UTIE) ............... 7,850 146
Korea Electric Power Corp. - ADR (UTIE) ......... 1,950 19
Korea Telecom Corp.* (TELS) ..................... 6,850 274
Korea Telecom Corp. -ADR* (TELS) ................ 11,900 262
Korea Telecom Freetel* (TELS) ................... 1,540 44
LG Construction Co. (CONS) ...................... 6,920 58
LG Household & health (HEAL) .................... 2,610 59
Pohang Iron & Steel Co., Ltd. (STEE) ............ 3,730 298
Samsung Electro-Mechanics Co. (ETRN) ............ 840 30
Samsung Electronics (ETRN) ...................... 4,900 723
Samsung Securities Co., Ltd. (FUND) ............. 4,300 122
Shinhan Bank (BANK) ............................. 22,930 235
SK Telecom Co., Ltd. (TELS) ..................... 2,450 361
Tongyang Cement Co. (CONS) ...................... 1,850 32
-------
3,885
Taiwan - 11.2%
Ambit Microsystems Corp. (COMP) ................. 15,600 65
Ase Test, Ltd. 8 (ETRN) ......................... 3,300 42
Asustek Computer (COMP) ......................... 43,750 185
Bank Sinopac* (BANK) ............................ 121,000 56
Cathay Life Insurance (INSU) .................... 32,000 39
China Steel Corp. (STEE) ........................ 158,000 158
China Unicom, Ltd. (TELS) ....................... 300 5
Chinatrust Commercial Bank (BANK) ............... 212,000 148
Compal Electronics Inc. (COMP) .................. 20,750 22
Delta Electronics Inc. (ETRN) ................... 66,000 163
Elan Microelectronics Corp (ETRN) ............... 17,000 33
Far East Textile (DIOP) ......................... 44,000 25
Far Eastern Textile, Ltd. - GDR* (APPA) ......... 2,848 16
Faraday Tech (ETRN) ............................. 4,000 32
Formosa Chemical & Fibre (CHEM) ................. 88,560 62
Fubon Insurance Co. (INSU) ...................... 95,000 79
Hon Hai Precision Insustry Co.,Ltd. Cl.
G* (ETRN) ...................................... 36,000 189
Hon Hai Precision Industry Co.,Ltd. - GDR (ETRN). 8,990 110
Macronix International Co.,Ltd.* (COMP) ......... 8,100 9
Nan Ya Plastic Corp. (CHEM) ..................... 25,000 25
President Chain Store Corp. (RETS) .............. 29,000 63
Quanta Computer, Inc. (COMP) .................... 40,000 136
Realtek Semiconductor Corp.(ETRN) ............... 6,000 27
Siliconware Precision (SOFT) .................... 102,000 58
Sunplus Technology (TELE) ....................... 7,000 30
Taipei Bank (BANK) .............................. 105,000 57
Taishin International Bank (BANK) ............... 102,000 46
Taiwan Cellular Corp.* (TELS) ................... 50,168 65
Taiwan Semiconductor (ETRN) ..................... 345,800 643
Taiwan Semiconductor Manufacturing Co., Ltd.
- ADR (ETRN) ................................... 2,887 44
91
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
EMERGING MARKETS EQUITY FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Taiwan - Continued
Uni-President Enterprises Co.* (FOOD) ........... 100,000 $ 42
United Microelectronics Corp. (COMP) ............ 245,000 325
Winbond Electronic (ETRN) ....................... 88,675 74
Winbond Electronics Corp. - GDR* (ETRN) ......... 982 8
-------
3,081
Thailand - 1.6%
Advanced Info Service Public Co., Ltd. (TELS) ... 16,300 174
BEC World Public Co.,Ltd. (MEDI) ................ 15,900 78
Delta Electronics (Thailand) Public Co., Ltd.
(ETRN) ......................................... 18,622 90
Shin Corp. Public Co., Ltd. (COMP) .............. 15,800 60
Thai Farmers Bank Public Co., Ltd. (BANK) ....... 86,400 38
-------
440
Turkey - 2.6%
Akbank T.A.S. (BANK) ............................ 12,176,000 51
Aksigorta (INSU) ................................ 3,417,000 27
Anadolu Efes Biracilik ve Malt Sanayii A.S.
(FOOD) ......................................... 1,175,995 45
Migros Turk T.A.S. (RETF) ....................... 466,000 29
Netas Northern Electric Telekomunikasyon A.S.
(TELS) ......................................... 1,369,639 56
Tupras-Turkiye Petrol Rafinerileri A.S. (OILX) .. 3,684,000 94
Turkcell Iletisim Hizmetleri A.S. (TELS) ........ 4,735 13
Turkiye Garanti Bankasi AS (BANK) ............... 7,124,000 36
Vestel Elektronik Sanayi ve Ticaret A.S. (ETRN) . 21,836,620 53
Yapi ve Kredi Bankasi AS (BANK) ................. 100,949,567 314
Yapi ve Kredi Bankasi A.S. - GDR* (BANK) ........ 1,568 5
-------
723
United Kingdom - 1.7%
Anglo American PLC (META) ....................... 18,537 278
Dimension Data Holdings PLC (SOFT) .............. 13,588 52
DSP Group, Inc. (ETRN) .......................... 1,500 32
Old Mutual PLC (OILX) ........................... 9,700 22
South African Breweries PLC* (FOOD) ............. 9,853 75
-------
459
United States - 0.5%
Zoran Corp. *(ETRN) ............................. 4,805 143
-------
TOTAL COMMON STOCK- 90.1% 24,890
-------
PREFERRED STOCK
Brazil - 5.4%
Banco Itau SA (BANK) ............................ 2,401,969 210
Brasil Telecom SA (TELS) ........................ 21,169,819 125
Celular CRT Participacoes *(TELS) ............... 1,039,321 430
Centrais Electricas Brasileires SA - Cl. B (UTIE) 2,581,000 30
Compahnia de Bebidas das Americas* (FOOD) ....... 34,000 8
Companhia Energetica de Minas Gerais (UTIE) ..... 4,944,400 59
Companhia Vale do Rio Doce -Cl.A*(META) ......... 13,797 314
Embratel Participacoes SA (UTIT) ................ 8,459,000 65
Petroleo Brasileiro SA - Petrobras (OILS) ....... 4,201 98
Tele Celular Sul Participacoes SA (TELS) ........ 5,894,000 12
Tele Centro Sul Participacoes SA (UTIT) ......... 9,565,000 80
Tele Norte Leste Participacoes SA (UTIT) ........ 845,000 13
Telemig Celular Participacoes SA (TELS) ......... 10,962,227 23
Telesp Celular Participacoes SA* (TELS) ......... 5,365,286 33
-------
1,500
South Korea - 0.3%
Samsung Electronics (ETRN) ...................... 1,100 68
-------
TOTAL PREFERRED STOCK- 5.7% 1,568
-------
Par
Value
(000's)
SHORT-TERM INVESTMENTS - 4.0%
Investments in joint
trading accounts
3.97% due 07/02/01 ............................ $ 1,094 1,094
----------- ---------
TOTAL INVESTMENTS- 99.8% 27,552
Other Assets & Liabilities, Net 0.2% 54
----------- ---------
NET ASSETS- 100.0% $ 27,606
=========== =========
ADR- American Depository Receipts.
GDR- Global Depository Receipts.
* Non-income producing security.
See notes to financial statements.
92
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
EMERGING MARKETS EQUITY FUND
SUMMARY OF LONG-TERM SECURITIES BY INDUSTRY
Market % of
Industry Value Long-Term
Industry Abbreviation (000s) Investments
Telecommunication Services ......... TELS $ 4,890 18.5%
Bank ............................... BANK 2,711 10.2
Electronic Products & Services ..... ETRN 2,563 9.7
Food, Beverage & Tobacco ........... FOOD 1,352 5.1
Telephone .......................... UTIT 1,264 4.8
Electric Power ..................... UTIE 1,143 4.3
Metals & Mining .................... META 1,114 4.2
Oil & Natural Gas Exploration &
Production ........................ OILX 1,088 4.1
Financial Services ................. FINL 955 3.6
Computer Equipment ................. COMP 870 3.3
Computer Software & Services ....... SOFT 833 3.1
Health Care Products ............... HEAL 775 2.9
Oil ................................ OILS 758 2.9
Diversified Operations ............. DIOP 661 2.4
Automobile ......................... AUTO 628 2.4
Media - TV & Radio ................. MEDI 511 1.9
Steel .............................. STEE 481 1.8
Insurance .......................... INSU 473 1.8
Construction ....................... CONS 468 1.8
Consumer Miscellaneous ............. CNSU 415 1.6
Retail - Department Stores ......... RETS 345 1.3
Transportation Services ............ TRAN 281 1.1
Precious Metals/Gems/Stones ........ METP 259 1.0
Paper & Forest Products ............ PAPR 259 1.0
Personal & Commercial Lending ...... LEND 232 0.9
Media - Publishing ................. MEDP 159 0.6
Household Appliances & Furnishings . APPL 154 0.6
Aerospace & Defense ................ AERO 133 0.5
Electrical Equipment ............... ELEQ 126 0.5
Brokerage & Investment Management .. FUND 122 0.5
Telecommunication Equipment ........ TELE 93 0.3
Chemical ........................... CHEM 87 0.3
Real Estate Development ............ READ 58 0.2
Natural Gas Distribution ........... UTIG 50 0.2
Cosmetic & Personal Care ........... HNBA 29 0.1
Retail - Food ...................... RETF 29 0.1
Commercial Services ................ COMM 26 0.1
Leisure & Recreation ............... LEIS 26 0.1
Energy - Alternative Sources ....... ENER 21 0.1
Shoe & Apparel Manufacturing ....... APPA 16 0.1
------- -----
$26,458 100.0%
======= =====
93
SCHEDULE OF INVESTMENTS
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Argentina - 0.2%
Banco Frances SA (BANK) ......................... 10,000 83
GPO Finance Galicia (FINL) ...................... 40,460 60
IRSA Inversiones y Representaciones SA (READ) ... 29,022 46
PC Holdings SA - Cl. B (FINL) ................... 53,132 72
Siderca S.A.I.C. (STEE) ......................... 35,000 68
-------
329
Australia - 2.8%
AMP Diversified Property Trust (REIT) ........... 106,700 132
AMP, Ltd. *(INSU) ............................... 28,800 323
Aristocrat Leisure Limited (LEIS) ............... 18,500 67
BHP, Inc.(DIOP) ................................. 37,385 203
Brambles Industries, Ltd. (DIOP) ................ 7,200 176
Broken Hill Proprietary Co., Ltd. (DIOP) ........ 35,100 186
Coles Myer, Ltd. (RETS) ......................... 39,400 127
CSL, Ltd. (HEAL) ................................ 2,600 63
CSR, Ltd. (CONS) ................................ 37,900 137
Foster's Brewing Group, Ltd. (FOOD) ............. 70,100 196
General Property Trust (REIT) ................... 53,300 76
Lend Lease Corp. (FINL) ......................... 13,200 85
National Australia Bank, Ltd. (BANK) ............ 30,600 547
News Corp., Ltd. (MEDI) ......................... 42,300 389
Onesteel. Ltd. (STEE) ........................... 8,775 4
Orica, Ltd. (DIOP) .............................. 15,500 35
Pacific Dunlop, Ltd. (DIOP) ..................... 59,000 25
Paperlinx (PAPR) ................................ 4,800 10
QBE Insurance Group, Ltd. (INSU) ................ 11,200 67
Rio Tinto, Ltd. (METP) .......................... 6,900 120
Santos, Ltd. (OILX) ............................. 22,300 74
Tabcorp Holdings, Ltd. (LEIS) ................... 16,400 79
Telstra Corp., Ltd. (TELS) ...................... 166,200 456
Westfield Trust (REIT) .......................... 54,000 93
Westpac Banking Corp., Ltd.(BANK) ............... 46,600 344
WMC, Ltd. (DIOP) ................................ 26,300 129
Woolworth's, Ltd. (RETS) ........................ 30,300 170
-------
4,313
Austria - 1.0%
Austria Tabak AG (FOOD) ......................... 3,700 259
Austrian Airlines (TRAN) ........................ 5,550 53
BBAG Oesterreichische Brau Beteiligungs AG (FOOD) 2,150 79
Bohler-Uddeholm AG (STEE) ....................... 1,500 56
BWT AG (POLL) ................................... 2,000 57
EA-Generali AG (INSU) ........................... 1,050 135
Flughafen Wien AG (TRAN) ........................ 4,000 129
Mayr-Melnhof Karton AG (PAPR) ................... 1,800 80
Oesterreichische Elektrizitaetswirtschafts AG
(UTIE) ......................................... 3,900 324
OMV AG (OILX) ................................... 3,000 252
VA Technologie AG (ENGI) ........................ 2,100 68
Wienerberger Baustoffindustrie AG (CONS) ........ 7,200 122
-------
1,614
Belgium - 1.6%
Barco NV (ETRN) ................................. 559 25
BarcoNet NV* (ETRN) ............................. 1,118 3
Bekaert NV (METP) ............................... 1,390 50
Colruyt NV (RETF) ............................... 1,870 63
Compagnie Maritime Belge SA (TRAN) .............. 1,921 119
D'Ieteren SA (AUTO) ............................. 190 30
Delhaize SA (RETF) .............................. 1,255 74
Electrabel SA (UTIE) ............................ 1,536 304
Fortis (B) (INSU) ............................... 30,692 741
GPE Bruxelles LAM (DIOP) ........................ 5,094 286
Heidelberger Zement AG (CONS) ................... 1,048
KBC Bancassurance Holding NV (BANK) ............. 10,840 386
N.V. Union Miniere SA* (META) ................... 1,461 58
Solvay SA (FINL) ................................ 2,115 105
UCB SA (HEAL) ................................... 4,800 167
-------
2,411
Brazil - 0.3%
Centrais Electricas Brasileiras SA (UTIE) ....... 10,577,000 135
Companhia de Bebidas das Americas* (FOOD) ....... 482,000 108
Tele Norte Leste Participacoes SA (UTIT) ........ 11,096,000 148
-------
391
Chile - 0.5%
Banco Santiago SA - ADR (BANK) .................. 2,900 66
Compania Cervecerias Unidas SA - ADR (FOOD) ..... 3,900 86
Compania de Telecomunicaciones de Chile SA
(UTIT) ......................................... 8,000 113
Embotelladora Andina SA - ADR (FOOD) ............ 6,100 82
Empresa Nacional de Electricidad SA - ADR
(UTIE) ......................................... 10,100 114
Enersis SA - ADR (UTIE) ......................... 3,700 56
Laboratorio Chile SA - ADR (HEAL) ............... 5,700 142
Madeco SA - ADR (META) .......................... 13,000 63
-------
722
China - 0.1%
Huaneng Power International, Inc. - ADR*
(UTIE) ........................................ 3,700 89
94
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Czech Republic - 0.2%
Ceska Sporitelna AS (BANK) ...................... 9,500 63
Ceske Energeticke Zavody AS -(UTIE) ............. 21,600 48
Komercni Banka AS (BANK) ........................ 2,200 60
SPT Telecom AS (TELS) ........................... 6,300 57
-------
228
Denmark - 1.2%
A/S Dampskibsselskabet Svendborg - Cl. B (TRAN) . 27 243
Dampskibsselskabet AF 1912 - Cl. B (TRAN) ....... 40 278
Danisco A/S (FOOD) .............................. 1,650 60
Danske Bank (BANK) .............................. 11,500 207
ISS A/S (COMM) .................................. 1,650 97
Novo Nordisk AS (HEAL) .......................... 11,750 520
Novozymes A/S - Ser. B* (OILX) .................. 2,350 49
Tele Danmark A/S (TELS) ......................... 6,550 236
Vestas Wind Systems AS (ENER) ................... 2,500 117
-------
1,807
Finland - 0.4%
Nokia Oyj (TELE) ................................ 22,000 499
Sampo Insurance Co. PLC (INSU) .................. 4,700 40
Sonera Oyj (TELS) ............................... 5,432 42
UPM-Kymmene Corp.* (PAPR) ....................... 2,100 60
-------
641
France - 8.4%
Accor SA (LEIS) ................................. 4,890 207
Air Liquide (CHEM) .............................. 1,306 188
Alcatel (TELE) .................................. 18,887 395
AXA SA (INSU) ................................... 25,968 741
Banque Nationale de Paris (BANK) ................ 6,348 553
Bouygues SA (CONS) .............................. 6,110 207
Cap Gemini SA (COMM) ............................ 1,622 118
Carrefour SA (RETF) ............................. 11,715 620
Casino Guichard-Perrachon SA (RETF) ............. 2,053 173
Club Mediterranee SA (LEIS) ..................... 838 46
Compagnie de St. Gobain (CONS) .................. 1,572 214
Dassault Systemes SA (SOFT) ..................... 1,995 77
Eridania Beghin-Say SA (FOOD) ................... 98 8
Essilor International SA (HEAL) ................. 188 54
France Telecom (TELS) ........................... 16,363 781
Groupe Danone (FOOD) ............................ 1,897 261
Imercys (CONS) .................................. 794 79
L'Oreal SA (HNBA) ............................... 9,987 645
Lafarge SA (CONS) ............................... 2,526 216
Lagardere S.C.A. (DIOP) ......................... 2,436 115
LVMH (Louis Vuitton Moet Hennessy)(FOOD) ........ 7,719 389
Michelin (PART) ................................. 1,649 52
Pernod Ricard (FOOD) ............................ 1,441 101
Pinault-Printemps-Redoute SA (RETS) ............. 1,891 274
PSA Peugeot Citroen (AUTO) ...................... 818 222
Rhone-Poulenc SA (BANK) ......................... 11,637 930
Sagem SA (ETRN) ................................. 627 31
Sanofi-Synthelabo SA* (HEAL) .................... 12,280 806
Schneider SA (MACH) ............................. 2,599 144
Societe BIC SA (COMM) ........................... 1,234 45
Societe Eurafrance SA (FINL) .................... 1,026 60
Societe Generale - Cl. A (BANK) ................. 6,189 367
STMicroelectronics (ETRN) ....................... 14,283 496
Suez Lyonnaise des Faux (FOOD) .................. 19,520 629
Thomson CFS (ETRN) .............................. 3,072 111
Total Fina SA - Cl. B (OILX) .................... 11,680 1,637
Unibail SA (REAL) ............................... 2,100 114
Usinor SA (STEE) ................................ 3,397 36
Valeo SA (PART) ................................. 1,712 69
Vivendi Universal SA (DIOP) ..................... 15,051 878
-------
13,089
Germany - 12.7%
Adidas-Salomon AG (APPA) ........................ 1,920 118
Allianz AG - Reg. (INSU) ........................ 7,680 2,244
BASF AG (CHEM) .................................. 18,710 739
Bayer AG (CHEM) ................................. 21,930 861
Bayerische Vereinsbank AG (BANK) ................ 16,522 818
Beiersdorf AG (HNBA) ............................ 2,220 232
Continental AG (PART) ........................... 1,100 15
DaimlerChrysler AG (AUTO) ....................... 30,799 1,416
Deutsche Bank AG (BANK) ......................... 19,000 1,363
Deutsche Telekom AG (UTIT) ...................... 90,590 2,067
Douglas Holding AG (HNBA) ....................... 1,090 29
Dresdner Bank AG (BANK) ......................... 17,210 787
E.On AG (DIOP) .................................. 23,048 1,210
Fresenius Medical Care AG (HEAL) ................ 2,350 165
Heidelberg Zement *(CONS) ....................... 2,528 109
Hochtief AG (CONS) .............................. 3,810 64
Kamps AG (FOOD) ................................. 2,666 24
Karstadt AG (RETS) .............................. 4,100 122
Linde AG (ENGI) ................................. 3,300 140
Lufthansa AG (TRAN) ............................. 9,730 153
MAN AG (DIOP) ................................... 4,400 94
Merck KGAA (HEAL) ............................... 6,110 213
Metro AG* (RETS) ................................ 9,200 344
Muenchener
Rueckversicherungs-Gesellschaft AG -
Reg. (INSU) .................................... 5,410 1,509
Preussag AG (DIOP) .............................. 6,400 194
RWE AG (UTIE) ................................... 14,500 577
SAP AG (SOFT) ................................... 9,880 1,372
Schering AG (HEAL) .............................. 4,890 257
SGL Carbon AG (CHEM) ............................ 1,190 42
Siemens AG (DIOP) ............................... 27,540 1,692
Thyssen Krupp AG (CONS) ......................... 15,660 206
Volkswagen AG (AUTO) ............................ 10,119 476
95
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Germany - Continued
WCM Beteiligungs-und Grundbesitz AG (DIOP) ...... 9,509 102
-------
19,754
Greece - 0.1%
Alpha Credit Bank (BANK) ........................ 190 4
Commercial Bank of Greece (BANK) ................ 389 14
EFG Eurobank* (BANK) ............................ 3,211 41
Hellenic Bottling Co. SA (FOOD) ................. 63 1
Hellenic Telecommunication Organization SA
(TELS) ......................................... 2,254 29
Intracom SA (TELE) .............................. 1,062 15
Titan Cement Co. SA (CONS) ...................... 1,400 46
-------
150
Hong Kong - 1.6%
Beijing Datang Power Generation Co.,
Ltd. (UTIE) .................................... 287,000 97
Cathay Pacific Airways (TRAN) ................... 32,000 43
China Southern Airlines Co., Ltd.* (TRAN) ....... 225,000 70
China Telecom (Hong Kong), Ltd. (TELS) .......... 107,000 564
CLP Holdings, Ltd. (UTIE) ....................... 30,600 129
Guangshen Railway Co., Ltd. (TRAN) .............. 395,000 72
Hang Seng Bank, Ltd. (BANK) ..................... 22,700 233
Henderson Land Development Co., Ltd. (READ) ..... 22,000 97
HSBC Holdings PLC (BANK) ........................ 8,900 105
Hutchison Whampoa, Ltd. (COMM) .................. 28,500 288
Legend Holdings (COMP) .......................... 122,000 68
Li & Fung, Ltd. (COMM) .......................... 36,000 59
New World Development Co., Ltd. (READ) .......... 48,000 58
Pacific Century Cyberworks, Ltd.* (TELE) ........ 202,380 58
Sun Hung Kai Properties, Ltd. (REIT) ............ 31,000 279
Swire Pacific, Ltd. - Cl. A (DIOP) .............. 23,500 122
Wharf (Holdings), Ltd. (DIOP) ................... 44,000 92
-------
2,434
Hungary - 0.3%
Danubius Hotel and Spa Rt. (LEIS) ............... 3,600 49
Gedeon Richter Rt. (HEAL) ....................... 900 50
Magyar Tavkozlesi Rt. (UTIT) .................... 36,200 106
MOL Magyar Olaj-es Gazipari Rt. (OILX) .......... 7,500 107
OTP Bank Rt. (BANK) ............................. 2,300 120
-------
432
India - 0.7%
Bajaj Auto, Ltd. - GDR (AUTO) ................... 14,300 88
EIH, Ltd. - GDR (REAL) .......................... 9,000 51
Grasim Industries, Ltd. - GDR (DIOP) ............ 7,100 55
Gujarat Ambuja Cements, Ltd. - GDR (CONS) ....... 23,800 91
Hindalco Industries, Ltd. - GDR (META) .......... 4,900 95
Indian Hotels Co., Ltd. - GDR (REAL) ............ 16,700 92
ITC, Ltd. - GDR *(FOOD) ......................... 10,900 196
Larsen & Toubro, Ltd. - GDR (DIOP) .............. 13,500 135
Ranbaxy Laboratories, Ltd. - GDR (HEAL) ......... 5,700 63
Reliance Industries, Ltd. - GDR* (CHEM) ......... 13,100 204
Tata Engineering and Locomotive Co., Ltd. - GDR
(AUTO) ......................................... 34,600 50
-------
1,120
Ireland - 0.7%
Allied Irish Banks PLC (BANK) ................... 26,800 300
CRH PLC (CONS) .................................. 13,300 223
Eircom PLC* (TELS) .............................. 69,432 76
Greencore Group PLC (FOOD) ...................... 26,000 56
Irish Life & Permanent PLC (FINL) ............... 9,553 112
Jefferson Smurfit Group PLC (CONT) .............. 47,000 87
Kerry Group PLC (FOOD) .......................... 8,400 96
Ryanair Holdings PLC* (TRAN) .................... 11,421 119
-------
1,069
Israel - 0.6%
Bank Hapoalim (BANK) ............................ 43,700 107
Bezeq Israeli Telecommunication Corp.,
Ltd. (UTIT) .................................... 84,900 127
Check Point Software Technologies, Ltd. *(SOFT) . 4,200 212
IDB Holding Corp., Ltd. (FUND) .................. 5,700 156
Industrial Building Corp. (CONS) ................ 45,100 60
Makteshim-Agan Industries, Ltd.* (CHEM) ......... 26,900 55
Teva pharmaceutical Industries, Ltd. (HEAL) ..... 2,900 182
-------
899
Italy - 7.2%
Alitalia SpA (TRAN) ............................. 60,000 73
Assicurazioni Generali (INSU) ................... 43,382 1,305
Autogrill SpA (RETF) ............................ 10,001 108
Banca Di Roma (BANK) ............................ 15,000 46
Banca Intesa SpA (BANK) ......................... 178,800 632
Banca Intesa SpA (BANK) ......................... 37,400 86
Banca Popolare di Milano (BANK) ................. 18,100 71
Benetton Group SPA (RETS) ....................... 10,397 140
Bulgari SpA (RETS) .............................. 8,900 93
96
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Italy - Continued
Enel SpA* (UTIE) ................................ 248,583 $ 760
ENI SpA (OILS) .................................. 135,900 1,658
Fiat SpA (AUTO) ................................. 13,040 255
Fiat SpA (AUTO) ................................. 2,310 30
Fiat SpA - RNC (AUTO) ........................... 720 9
Italcementi SpA (CONS) .......................... 10,920 86
Italgas (UTIG) .................................. 12,650 111
La Rinascente SpA (CONS) ........................ 10,500 45
Mediaset SpA (MEDI) ............................. 44,200 372
Mediobanca SpA (FUND) ........................... 24,000 257
Mondadori (Arnoldo) Editore SpA (MEDP) .......... 10,800 77
Parmalat Finanziaria SpA (FOOD) ................. 40,352 108
Pirelli SpA (DIOP) .............................. 71,100 198
Riunione Adriatica di Sicorta SpA (INSU) ........ 22,129 272
Riunione Adriatica di Sicorta SpA - RNC (INSU) .. 2,920 27
SAI SpA (INSU) .................................. 4,300 66
San Paolo-IMI SpA (BANK) ........................ 56,097 720
Sirti SpA (TELE) ................................ 11,100 14
Telecom Italia Mobile SpA (TELS) ................ 240,100 1,225
Telecom Italia Mobile SpA - RNC (TELS) .......... 48,200 153
Telecom Italia SpA (TELS) ....................... 131,500 1,181
Telecom Italia SpA - RNC (TELS) ................. 47,300 226
UniCredito Italiano SpA (BANK) .................. 184,100 791
-------
11,195
Japan - 28.5%
77 Bank, Ltd. (BANK) ............................ 18,000 102
Acom Co., Ltd. (LEND) ........................... 3,800 335
Ajinomoto Co., Inc. (FOOD) ...................... 18,000 193
Alps Electric Co. (ETRN) ........................ 6,000 56
Amada Co., Ltd (MACH) ........................... 13,000 66
Asahi Bank, Ltd. (BANK) ......................... 73,000 158
Asahi Breweries, Ltd. (FOOD) .................... 13,000 146
Asahi Chemical Industry Co., Ltd. (CHEM) ........ 39,000 164
Asahi Glass Co., Ltd. (APPL) .................... 36,000 299
Bank of Yokohama, Ltd. (BANK) ................... 22,000 90
Benesse Corp. (COMM) ............................ 2,600 82
Bridgestone Corp. (PART) ........................ 21,000 220
Canon, Inc. (COMM) .............................. 22,000 889
Casio Computer Co. (ETRN) ....................... 9,000 52
Central Japan Railway Co. (TRAN) ................ 61 379
Chugai Pharmaceutical Co., Ltd. (HEAL) .......... 4,000 61
Citizen Watch Co., Ltd. (RETS) .................. 10,000 61
Cosmo Oil Co., Ltd. (OILX) ...................... 19,000 47
Credit Saison Co., Ltd. (FINL) .................. 5,600 136
CSK Corp. (SOFT) ................................ 3,200 100
Dai-Ichi Pharmaceutical Co., Ltd. (HEAL) ........ 7,000 162
Dai-Nippon Ink & Chemicals, Inc. (CHEM) ......... 28,000 79
Dai-Nippon Printng Co., Ltd. (COMM) ............. 19,000 232
Daicel Chemical Industries, Ltd. (CHEM) ......... 16,000 56
Dainippon Screen Manufacturing Co., Ltd. (ELEQ) . 11,000 46
Daito Trust Construction Co., Ltd. (REAL) ....... 3,600 61
Daiwa House Industry Co., Ltd. (HOUS) ........... 17,000 133
Daiwa Securities Group, Inc. (FUND) ............. 33,000 345
Denso Corp. (ETRN) .............................. 19,000 363
East Japan Railway Co. (TRAN) ................... 104 600
Ebara Corp. (MACH) .............................. 9,000 74
Eisai Co., Ltd. (HEAL) .......................... 9,000 202
Fanuc, Ltd. (ELEQ) .............................. 6,300 314
FUJI Machine Manufacturing Co., Ltd. (MACH) ..... 1,000 18
Fuji Photo Film (LEIS) .......................... 13,000 561
Fuji Soft ABC, Inc. (SOFT) ...................... 1,000 59
Fujikura (ELEQ) ................................. 11,000 67
Fujitsu, Ltd. (ELEQ) ............................ 51,000 536
Furukawa Electric Co. (TELE) .................... 16,000 128
Hankyu Corp. (TRAN) ............................. 10,000 33
Hirose Electric Co., Ltd. (ETRN) ................ 1,200 91
Hitachi, Ltd. (ETRN) ............................ 83,000 815
Honda Motor Co. (AUTO) .......................... 24,000 1,055
Hoya Corp. (ETRN) ............................... 3,000 190
Isetan Co., Ltd. (RETS) ......................... 7,000 74
Ishikawajima-Harima Heavy Industries Co., Ltd.
(DIOP) ......................................... 28,000 69
Ito-Yokado Co., Ltd. (RETS) ..................... 11,000 507
Itochu Corp. (DIOP) ............................. 34,000 138
Japan Energy Corp. (OILX) ....................... 26,000 55
Japan Tobacco, Inc. (FOOD) ...................... 45 310
Joyo Bank, Ltd. (BANK) .......................... 29,000 87
Jusco Co., Ltd.* (RETS) ......................... 8,000 176
Kajima Corp. (CONS) ............................. 35,000 89
Kaneka Corp. (CHEM) ............................. 5,000 45
KAO Corp. (HNBA) ................................ 16,000 398
Kawasaki Heavy Industry, Ltd. (DIOP) ............ 46,000 76
Kawasaki Steel Corp. (STEE) ..................... 100,000 119
Keihin Electric Express Railway Co., Ltd. (TRAN). 17,000 74
Kinden Corp. (ENGI) ............................. 12,000 75
Kinki Nippon Railway (TRAN) ..................... 36,050 145
Kirin Brewery Co. (FOOD) ........................ 21,000 179
Kokuyo Co. (COMM) ............................... 6,000 63
Komatsu, Ltd. (MACH) ............................ 30,000 138
Komori Corp. (MACH) ............................. 4,000 55
Konami Co., Ltd. (COMP) ......................... 3,700 169
97
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Japan - Continued
Konica Corp. (LEIS) ............................. 11,000 $ 81
Kubota Corp. (MACH) ............................. 40,000 159
Kuraray Co., Ltd. (APPA) ........................ 10,000 74
Kurita Water Industries, Ltd. (POLL) ............ 4,000 55
Kyocera Corp. (ETRN) ............................ 4,700 415
Kyowa Hakko Kogyo Co., Ltd. (HEAL) .............. 9,000 60
Makita Corp. (CNSU) ............................. 8,000 50
Marubeni Corp. (DIOP) ........................... 31,000 60
Marui Co., Ltd. (RETS) .......................... 13,000 188
Matsushita Electric Industrial Co. (ETRN) ....... 51,000 798
Minebea Co., Ltd. (CHEM) ........................ 4,000 26
Mitsubishi Chemical Corp. (CHEM) ................ 61,000 163
Mitsubishi Corp. (DIOP) ......................... 34,000 274
Mitsubishi Electric Corp. (ETRN) ................ 52,000 258
Mitsubishi Estate Co., Ltd. (REAL) .............. 37,000 340
Mitsubishi Heavy Industries, Ltd. (MACH) ........ 87,000 397
Mitsubishi Logistics Corp. (TRAN) ............... 7,000 64
Mitsubishi Materials Corp. (PMET) ............... 39,000 83
Mitsubishi Rayon Co., Ltd. (APPA) ............... 23,000 82
Mitsubishi Tokyo Finance (FINL) ................. 153 1,275
Mitsui & Co., Ltd. (DIOP) ....................... 31,000 209
Mitsui Fudosan Co., Ltd. (REAL) ................. 24,000 259
Mitsui Marine & Fire Insurance Co., Ltd.
(INSU) ......................................... 14,000 72
Mitsui Mining & Smelting Co., Ltd. (META) ....... 17,000 75
Mitsukoshi, Ltd. (RETS) ......................... 14,000 58
Mizuho Holdings, Inc.* (BANK) ................... 160 744
Mori Seiki Co., Ltd. (MACH) ..................... 5,000 41
Murata Manufacturing Co., Ltd. (ETRN) ........... 6,100 405
Mycal Corp. (RETS) .............................. 20,000 22
NAMCO, Ltd. (LEIS) .............................. 3,800 68
NEC Corp. (COMP) ................................ 43,000 581
NGK Insulators (ETRN) ........................... 11,000 97
NGK Spark Plug Co. (PART) ....................... 7,000 66
Nidec Corp. (MACH) .............................. 2,000 104
Nikon Corp. (LEIS) .............................. 11,000 104
Nintendo Corp., Ltd. (LEIS) ..................... 3,500 637
Nippon Comsys Corp. (ENGI) ...................... 6,000 81
Nippon Express Co., Ltd. (TRAN) ................. 31,000 140
Nippon Mitsubishi Oil Co., Ltd. (OILX) .......... 27,000 152
Nippon Sheet Glass Co., Ltd. (DIOP) ............. 14,000 82
Nippon Steel Co. (STEE) ......................... 133,000 202
Nippon Telegraph & Telephone Corp. (UTIT) ....... 315 1,642
Nippon Unipac Holding, Co. *(PAPR) .............. 25 140
Nippon Yusen Kabushiki Kaisha (TRAN) ............ 40,000 158
Nissan Motor Acceptance Corp. (FINL) ............ 95,000 656
Nitto Denko Corp. (ETRN) ........................ 4,000 115
Nomura Securities Co., Ltd. (FUND) .............. 42,000 805
NSK, Ltd. (META) ................................ 16,000 69
NTN Corp. (METP) ................................ 13,000 36
Obayashi Corp. (CONS) ........................... 18,000 70
Oji Paper Co. (PAPR) ............................ 27,000 134
Olympus Optical Co. (LEIS) ...................... 9,000 144
Omron Corp. (ETRN) .............................. 8,000 145
Onward Kashiyama Co., Ltd. (APPA) ............... 7,000 76
Oriental Land Co., Ltd. (LEIS) .................. 2,000 148
Orix Corp. (FINL) ............................... 2,400 233
Osaka Gas Co. (UTIG) ............................ 65,000 210
Pioneer Corp. (ETRN) ............................ 4,000 122
Promise Co., Ltd. (LEND) ........................ 2,600 214
Rohm Co., Ltd. (ETRN) ........................... 3,000 466
Sankyo Co., Ltd. (HEAL) ......................... 13,000 235
Sanrio Co., Ltd. *(CNSU) ........................ 3,000 39
Sanyo Electric Co. (ETRN) ....................... 42,000 265
Secom Co. (ETRN) ................................ 7,000 391
Sega Enterprises (CNSU) ......................... 4,300 76
Sekisui Chemical Co. (CHEM) ..................... 20,000 83
Sekisui House, Ltd. (CONS) ...................... 23,000 195
Sharp Corp. (ETRN) .............................. 28,000 382
Shimamura Co., Ltd. (RETS) ...................... 1,000 52
Shimano, Inc. (LEIS) ............................ 5,000 74
Shimizu Corp. (CONS) ............................ 22,000 90
Shin-Etsu Chemical Co. (CHEM) ................... 9,000 331
Shionogi & Co., Ltd. (HEAL) ..................... 12,000 250
Shiseido Co., Ltd. (CHEM) ....................... 14,000 131
Shizuoka Bank, Ltd. (BANK) ...................... 19,000 159
Showa Shell Sekiyu K.K. (OILX) .................. 12,000 70
Skylark Co., Ltd. (FOOD) ........................ 3,000 85
SMC Corp. (MACH) ................................ 2,000 214
Softbank Corp. (SOFT) ........................... 8,500 279
Sony Corp. (ETRN) ............................... 22,300 1,466
Sumitomo Bank (BANK) ............................ 136,000 1,123
Sumitomo Chemical Co. (CHEM) .................... 44,000 199
Sumitomo Corp. (DIOP) ........................... 22,000 154
Sumitomo Electric Industries (TELE) ............. 19,000 215
Sumitomo Heavy Industry (MACH) .................. 31,000 43
Sumitomo Marine & Fire Insurance Co., Ltd. (INSU) 15,000 84
Sumitomo Metal Industries (STEE) ................ 102,000 61
Sumitomo Metal Mining Co. (PMET) ................ 17,000 79
Taisho Pharmaceutical Co., Ltd. (HEAL) .......... 10,000 188
Taiyo Yuden Co., Ltd. (ELEQ) .................... 4,000 106
Takara Shuzo Co., Ltd. (FOOD) ................... 4,000 53
Takashimaya Co. (RETS) .......................... 12,000 84
Takeda Chemical Industries (HEAL) ............... 23,000 1,070
Takefuji Corp. (LEND) ........................... 5,000 454
Teijin, Ltd. (APPA) ............................. 27,000 152
98
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Japan - Continued
Teikoku Oil Co., Ltd. (OILX) .................... 15,000 $ 74
Terumo Corp. (HEAL) ............................. 4,000 73
The Bank of Fukuoka, Ltd. (BANK) ................ 8,000 36
The Chuo Mitsui Trust and Banking Co., Ltd.
(BANK) ......................................... 17,000 30
The Daiwa Bank, Ltd. (BANK) ..................... 52,000 68
Tobu Railway Co., Ltd. (TRAN) ................... 29,000 93
Toho Co., Ltd. (MEDI) ........................... 1,200 143
Tohoku Electric Power (UTIE) .................... 9,100 148
Tokio Marine & Fire Insurance Co. (INSU) ........ 37,000 346
Tokyo Broadcasting (MEDI) ....................... 4,000 77
Tokyo Electric Power (UTIE) ..................... 32,600 844
Tokyo Electron, Ltd. (ETRN) ..................... 4,500 272
Tokyo Gas Co. (OILX) ............................ 27,000 82
Tokyu Corp. (TRAN) .............................. 26,000 142
Toppan Printing Co. (CNSU) ...................... 20,000 206
Toray Industries, Inc. (APPA) ................... 33,000 132
Toshiba Corp. (ETRN) ............................ 78,000 412
Tostem Corp. (CONS) ............................. 8,000 131
Toto, Ltd. (APPL) ............................... 13,000 91
Toyo Seikan Kaisha, Ltd. (CONT) ................. 8,000 115
Toyota Motor Corp. (AUTO) ....................... 88,300 3,108
Trans Cosmos, Inc. (SOFT) ....................... 700 28
UFJ Holdings, Inc. (FINL) ....................... 1 5
Uni-Charm Corp. (PAPR) .......................... 3,000 97
UNY Co., Ltd. (RETS) ............................ 8,000 82
Wacoal Corp. (APPA) ............................. 8,000 86
World Co., Ltd. (APPA) .......................... 1,400 45
Yamaha Corp. (LEIS) ............................. 6,000 60
Yamanouchi Pharmaceutical Co., Ltd. (HEAL) ...... 10,000 281
Yamato Transport Co., Ltd. (TRAN) ............... 12,000 252
Yokogawa Electric (ETRN) ........................ 8,000 71
-------
44,143
Malaysia - 0.7%
Berjaya Sports Toto Berhad (LEIS) ............... 47,000 48
Commerce Asset Holdings (BANK) .................. 40,000 63
Gamuda Berhad (CONS) ............................ 52,000 53
IJM Corporation Berhad (CONS) ................... 49,000 45
Magnum Corp. Berhad (LEIS) ...................... 158,000 58
Malayan Banking Berhad (BANK) ................... 48,000 130
Malaysia International Shipping Berhad (TRAN) ... 61,000 109
Public Bank Berhad (FINL) ....................... 75,400 52
Resorts World Berhad (LEIS) ..................... 35,000 47
RHB Capital Berhad (BANK) ....................... 63,000 33
Sime Darby Berhad (FINL) ........................ 68,000 71
Telekom Malaysia Berhad (TELS) .................. 60,000 139
Tenaga Nasional Berhad (UTIE) ................... 61,000 140
YTL Corp., Berhad (DIOP) ........................ 65,000 65
-------
1,053
Mexico - 1.3%
Cemex SA de CV - CPO*(CONS) ..................... 27,000 144
Cifra SA de CV - Ser. V (RETS) .................. 90,000 245
Fomento Economico Mexicano SA de CV (FOOD) ...... 20,000 85
Grupo Carso SA de CV - Ser. A1 (DIOP) ........... 24,000 71
Grupo Financiero Banamex Accival, SA de CV (FINL) 105,000 272
Grupo Financiero Bancomer SA de CV - Cl. O (FINL) 157,000 156
Grupo Modelo SA de CV - Ser. C (FOOD) ........... 62,000 167
Grupo Televisa SA* (MEDI) ....................... 60,000 119
Kimberly-Clark de Mexico SA de CV (PAPR) ........ 47,000 139
Nuevo Grupo Mexico (META) ....................... 18,000 47
Telephonos de Mexico SA - Ser. L (UTIT) ......... 326,000 572
Wal-Mart de Mexico SA de CV - Ser. C (RETS) ..... 25,000 61
-------
2,078
Netherlands - 2.8%
ABN Amro Holding NV (BANK) ...................... 18,400 346
Aegon NV (INSU) ................................. 14,500 409
Akzo Nobel NV (CHEM) ............................ 3,850 163
ASM Lithography Holding NV (COMP) ............... 5,900 132
Elsevier NV (MEDP) .............................. 10,500 131
Heineken NV EUR2 (FOOD) ......................... 5,468 221
ING Groep NV (BANK) ............................. 8,500 556
Koninklijke Ahold NV (RETF) ..................... 7,000 220
Koninklijke KPN NV (TELS) ....................... 11,420 65
Koninklijke (Royal) Philips Electronics N.V.
(ETRN) ......................................... 13,656 362
Royal Dutch Petroleum Co. (OILS) ................ 21,250 1,224
TNT Post Group NV (TRAN) ........................ 5,610 117
Unilever NV - CVA (CNSU) ........................ 5,819 349
Wolters Kluwer NV - CVA (MEDP) .................. 4,400 118
-------
4,413
New Zealand - 0.4%
Carter Holt Harvey, Ltd. (PAPR) ................. 75,200 52
Contact Energy, Ltd. (UTIE) ..................... 62,600 76
Fisher & Paykel Industries, Inc. (APPL) ......... 23,000 110
Fletcher Building (CONS) ........................ 73,900 71
Telecom Corp. of New Zealand, Ltd. (TELS) ....... 111,100 253
The Warehouse Group, Ltd. (RETS) ................ 29,000 64
-------
626
Norway - 1.2%
Bergesen d.y. ASA - Cl. A (TRAN) ................ 4,300 79
99
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Norway - Continued
Den Norske Bank (BANK) .......................... 43,960 $ 191
Elkem ASA (META) ................................ 4,400 73
Kvaerner PLC (CONS) ............................. 7,600 53
Merkantildata ASA (SOFT) ........................ 9,800 16
Norsk Hydro ASA (DIOP) .......................... 11,140 472
Norske Skogindustrier ASA - Cl. A (PAPR) ........ 7,600 115
Orkla ASA (DIOP) ................................ 23,420 424
Petroleum Geo-Services ASA (OILX) ............... 6,240 63
Smedvig (OILS) .................................. 7,000 64
Smedvig ASA - B Shares (OILS) ................... 7,600 61
Storebrand ASA (INSU) ........................... 16,140 115
Tomra Systems ASA (POLL) ........................ 11,200 177
-------
1,903
Philippines - 0.1%
Ayala Land, Inc. (READ) ......................... 36,460 4
Metropolitan Bank & Trust Co. (BANK) ............ 13,090 50
Petron Corp. (OILS) ............................. 468,400 20
Philippine Long Distance Telephone Co. (UTIT) ... 3,200 44
SM Prime Holdings, Inc. (READ) .................. 545,000 65
-------
183
Portugal - 0.5%
Banco Comercial Portgues, SA (BANK) ............. 33,000 123
BPI-SGPS, SA - Registered Shares (FUND) ......... 32,490 76
Brisa-Auto Estradas de Portugal, SA (CONS) ...... 8,375 71
Electricidade de Portugal, SA (UTIE) ............ 67,500 161
Jeronimo Martins, SGPS, SA (RETF) ............... 3,600 23
Portugal Telecom, SA (TELS) ..................... 46,000 321
Sonae S.G.P.S., SA (RETS) ....................... 87,600 64
-------
839
Singapore - 0.5%
Brierley Investments, Ltd. (DIOP) ............... 147,650 41
Chartered Semiconductor Manufacturing *(ETRN) ... 12,000 30
City Developments, Ltd. (READ) .................. 29,000 112
Cycle & Carriage, Ltd. (AUTO) ................... 14,000 25
DBS Group Holdings, Ltd. (BANK) ................. 17,000 125
Oversea-Chinese Banking Corp., Ltd. (BANK) ...... 16,000 104
Singapore Airlines (TRAN) ....................... 12,000 83
Singapore Telecommunications, Ltd. (TELS) ....... 114,000 119
United Overseas Bank, Ltd. (BANK) ............... 13,448 85
-------
724
South Africa - 1.1%
ABSA Group, Ltd. (BANK) ......................... 24,600 116
Anglo American Platinum Corp., Ltd. (PMET) ...... 5,400 241
Barlow, Ltd. (DIOP) ............................. 11,700 87
Dimension Data Holdings PLC (SOFT) .............. 28,883 110
FirstRand, Ltd. (FINL) .......................... 164,400 176
Foschini, Ltd.* (RETS) .......................... 37,100 32
Impala Platinum Holdings, Ltd. (META) ........... 2,600 130
Imperial Holdings, Ltd. (DIOP) .................. 10,091 85
Investec Group, Ltd. (FUND) ..................... 2,300 68
Liberty Life Association of Africa, Ltd. (INSU) . 12,400 89
M-Cell, Ltd. (TELS) ............................. 40,200 92
Nampak, Ltd. (CONT) ............................. 25,500 37
Nedcor, Ltd. (BANK) ............................. 6,600 129
Remgro, Ltd.* (DIOP) ............................ 15,300 110
Sappi, Ltd. (PAPR) .............................. 10,900 96
Sasol, Ltd. (OILX) .............................. 12,800 117
-------
1,715
South Korea - 1.2%
Cheil Jedang Corp. (FOOD) ....................... 1,246 41
Hyundai Motor Co., Ltd. (AUTO) .................. 6,490 141
Kookmin Bank (BANK) ............................. 8,310 111
Korea Electric Power Corp. (UTIE) ............... 11,760 219
Korea Telecom Corp.* (TELS) ..................... 920 37
LG Chemical (CHEM) .............................. 3,056 41
LG Chemicals, Ltd. (CHEM) ....................... 833 7
LG Electronics (ETRN) ........................... 3,990 51
LG Household & Health (HEAL) .................... 741 17
Pohang Iron & Steel Co., Ltd. (STEE) ............ 1,230 98
Samsung Corp. (ETRN) ............................ 6,120 35
Samsung Display Devices Co. (ETRN) .............. 1,410 68
Samsung Electro-Mechanics Co. (ETRN) ............ 2,760 99
Samsung Electronics (ETRN) ...................... 3,190 471
Samsung Fire & Marine Insurance (INSU) .......... 2,272 73
Shinhan Bank (BANK) ............................. 7,310 75
SK Telecom Co., Ltd. (TELS) ..................... 1,530 225
-------
1,809
Spain - 3.9%
ACS, Actividades de Construccion y Servicios,
S.A.* (CONS) ................................... 2,419 67
Autopistas Concesionaria Espanola SA (TRAN) ..... 13,503 123
Banco Bilbao Vizcaya SA (BANK) .................. 90,135 1,167
Banco Santander Central Hispano SA (BANK) ....... 118,400 1,074
Endesa SA (UTIE) ................................ 28,100 449
100
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Spain - Continued
Fomento de Construcciones y Contratas SA (CONS) . 4,600 $ 88
Gas Natural SDG SA - E Shares (UTIG) ............ 13,800 223
Grupo Dragados SA (CONS) ........................ 8,400 106
Iberdrola SA (UTIE) ............................. 27,500 353
Repsol SA (OILX) ................................ 30,000 496
Sociedad General de Aguas de Barcelona SA (FOOD) 8,484 117
Sol Melia SA (LEIS) ............................. 5,700 50
Tabacalera SA - Cl. A (FOOD) .................... 7,714 110
Telefonica SA (UTIT) ............................ 103,779 1,280
TelePizza SA* (RETF) ............................ 7,559 14
Union Electrica Fenosa SA (UTIE) ................ 12,200 228
Vallehermoso SA (READ) .......................... 8,700 55
Zardoya Otis SA (MACH) .......................... 9,752 88
-------
6,088
Supra National - 0.0%
Mahindra & Mahindra, Ltd. - GDR (AUTO) .......... 16,500 30
Sweden - 1.2%
Drott AB - B Shares (REAL) ...................... 8,300 87
Hennes & Mauritz AB - B Shares (RETS) ........... 10,300 177
NetCom Systems, Inc. - Cl. B (TELS) ............. 1,732 56
Nordic Baltic Holding AB (BANK) ................. 34,928 199
SANDVIK AB (MACH) ............................... 4,350 87
Securitas AB - B Shares (COMM) .................. 8,250 144
Skand Enskilda Banken - Cl. A (BANK) ............ 10,200 97
Skandia Forsakrings AB (INSU) ................... 13,900 128
Skanska AB (CONS) ............................... 4,400 42
Svenska Cellulosa AB - Cl. B (PAPR) ............. 3,100 66
Svenska Handelsbanken, Inc. - A Shares (BANK) ... 6,350 91
Telefonaktiebolaget LM Ericsson AB*(TELE) ....... 79,300 434
Telia AB (TELS) ................................. 17,050 86
Volvo AB (AUTO) ................................. 5,750 86
-------
1,780
Switzerland - 1.8%
ABB, Ltd. *(ENGI) ............................... 8,672 131
Adecco SA Reg. (COMM) ........................... 600 28
Credit Suisse Group Reg. (BANK) ................. 1,970 324
Givaudan (HNBA) ................................. 55 15
Nestle SA Reg. (FOOD) ........................... 2,100 447
Novartis AG Reg. (HEAL) ......................... 15,200 550
Roche Holdings AG (HEAL) ........................ 5,500 406
Schweizerische Rueckversicherungs-Gesellschaft
(INSU) ......................................... 30 60
Swisscom AG Reg. (UTIT) ......................... 400 95
Syngenta AG *(CHEM) ............................. 547 29
UBS AG (BANK) ................................... 2,906 417
Zurich Finance (FINL) ........................... 633 216
-------
2,718
Thailand - 0.2%
ABN Amro Asia Secuities Public Co., Ltd. (FINL) . 23,000 13
Advanced Info Service Public Co., Ltd. (TELS) ... 7,700 82
PTT Exploration & Production Public Co., Ltd.
(OILX) ......................................... 22,200 61
Siam Cement Public Co., Ltd. (CONS) ............. 4,000 43
TelecomAsia Corp. Public Co., Ltd.* (UTIT) ...... 113,200 47
-------
246
Turkey - 0.2%
Arcelik AS (APPL) ............................... 3,934,500 32
Kartonsan Karton Sanayi Ve Ticaret AS (PAPR) .... 365,000 14
Migros Turk T.A.S. (RETF) ....................... 387,000 24
Tupras-Turkiye Petrol Rafinerileri AS (OILX) .... 1,009,000 26
Turkiye Garanti Bankasi AS (BANK) ............... 12,113,000 61
Turkiye Is Bankasi (Isbank) - Cl. C (BANK) ...... 14,914,592 106
Yapi ve Kredi Bankasi AS (BANK) ................. 18,317,805 57
-------
320
United Kingdom - 10.7%
Abbey National First Capital BV (BANK) .......... 16,000 281
Airtours PLC (LEIS) ............................. 11,300 46
Amvescap PLC (BANK) ............................. 5,300 92
Arm Holdings PLC *(ETRN) ........................ 9,700 37
AstraZeneca Group PLC (HEAL) .................... 18,239 851
Barclay's PLC (BANK) ............................ 16,300 500
Barratt Developments PLC (CONS) ................. 10,100 51
Bass PLC (FOOD) ................................. 17,200 180
Berkeley Group (The) PLC (READ) ................. 4,700 48
BG Group PLC (UTIG) ............................. 37,866 149
BOC Group PLC (CHEM) ............................ 7,000 103
Boots Co. PLC (RETD) ............................ 13,800 117
BP Amoco PLC (OILX) ............................. 218,800 1,801
British Aerospace PLC (AERO) .................... 32,263 155
British Airport Authority PLC (TRAN) ............ 11,700 109
British Airways PLC (TRAN) ...................... 11,300 55
British American Tobacco PLC* (FOOD) ............ 23,300 177
British Land Co. PLC (REAL) ..................... 11,000 75
British Sky Broadcast PLC (MEDI) ................ 19,900 192
101
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
United Kingdom - Continued
British Telecommunications PLC (TELS) ........... 68,700 $ 432
Cadbury Schweppes PLC (FOOD) .................... 26,600 180
Canary Wharf Finance PLC* (REIT) ................ 11,700 91
Carlton Communications PLC (MEDI) ............... 16,300 77
Centrica PLC *(UTIG) ............................ 58,900 189
CGU PLC (INSU) .................................. 22,700 314
Compass Group PLC* (FOOD) ....................... 25,122 201
Diageo PLC (FOOD) ............................... 30,200 332
Dixons Group PLC* (TELE) ........................ 23,200 76
EMI Group PLC (LEIS) ............................ 12,400 70
GKN plc (PART) .................................. 9,200 88
GlaxoSmithKline PLC* (HEAL) ..................... 62,892 1,771
Granada Compass PLC (LEIS) ...................... 25,122 53
Halifax Group PLC (LEND) ........................ 24,700 286
Hanson PLC (CONS) ............................... 8,990 66
Hays PLC (DIOP) ................................. 14,400 37
Hilton Group PLC (LEIS) ......................... 27,700 93
HSBC Holdings PLC (BANK) ........................ 90,100 1,069
Imperial Chemical Industries PLC (CHEM) ......... 7,100 42
Invensys PLC (DIOP) ............................. 38,785 74
J Sainsbury PLC (RETF) .......................... 24,100 150
Kingfisher PLC (RETS) ........................... 18,500 100
Land Securities PLC (REAL) ...................... 8,400 103
Lattice Group *(ETRN) ........................... 37,866 85
Legal & General Group PLC (INSU) ................ 62,800 143
Lloyds TSB Group PLC (BANK) ..................... 58,900 590
Logica PLC (SOFT) ............................... 6,700 81
Marconi PLC (TELE) .............................. 28,600 102
Marks & Spencer PLC (RETS) ...................... 39,600 146
Misys PLC (COMP) ................................ 6,300 44
National Grid Group PLC (UTIE) .................. 22,500 166
National Power PLC (UTIE) ....................... 16,500 70
Nycomed Amersham PLC (HEAL) ..................... 5,700 41
P&O Princess Cruises PLC *(LEIS) ................ 12,900 67
Pearson PLC (MEDP) .............................. 8,100 134
Peninsular & Oriental Steam Navigation Co.
(TRAN).......................................... 6,800 25
Prudential Corp. (INSU) ......................... 22,500 273
Rank Group PLC (DIOP) ........................... 30,800 94
Reed International PLC (MEDP) ................... 15,400 137
Rentokil Initial PLC (DIOP) ..................... 29,600 100
Reuters Group PLC (BUSI) ........................ 15,900 207
Rio Tinto PLC - Reg. (DIOP) ..................... 12,700 226
Royal Bank of Scotland Group (BANK) ............. 11,500 254
Schroders (BANK) ................................ 4,050 47
Scottish Power PLC (UTIE) ....................... 17,100 126
Slough Estates Finance PLC*(READ) ............... 9,900 48
Tesco PLC (RETF) ................................ 76,800 277
The Great Universal Stores PLC (RETS) ........... 15,500 133
The Sage Group PLC (MEDI) ....................... 22,100 79
Unilever PLC (CNSU) ............................. 26,703 225
United Utilities PLC (AGRI) ..................... 10,400 99
Vodafone AirTouch PLC (TELS) .................... 681,722 1,512
WPP Group PLC *(COMM) ........................... 7,500 74
-------
16,518
United States - 0.1%
Great Eastern Shipping Co. - GDR* (TRAN) ........ 25,120 78
-------
TOTAL COMMON STOCK- 96.7% 149,951
-------
PREFERRED STOCK
Australia - 0.3%
News Corp., Ltd. (MEDI) ......................... 48,100 387
Brazil - 0.7%
Aracruz Celulose SA (TELS) ...................... 38,000 85
Banco Bradesco SA (BANK) ........................ 26,392,800 86
Banco Itau SA (BANK) ............................ 1,380,000 85
Centrais Electricas Brasileires SA (UTIE) ....... 8,637,000 85
Compahnia de Bebidas das Americas (FOOD) ........ 505,000 85
Companhia Energetica de Minas Gerais (UTIE) ..... 6,565,000 85
Companhia Vale do Rio Doce (META) ............... 8,000 86
Embratel Participacoes SA (UTIT) ................ 6,417,000 85
Tele Centro Sul Participacoes SA (UTIT) ......... 6,634,000 85
Tele Norte Leste Participacoes SA (UTIT) ........ 7,080,500 85
Telefonica Data Bearer (BUSI) ................... 3,000,000 85
Telesp Celular Participacoes SA (TELS) .......... 8,056,387 85
Telesp Participacoes SA (TELS) .................. 3,000,000 85
Germany - 0.1%
Dyckerhoff AG (CONS) ............................ 2,600 73
Volkswagen AG (AUTO) ............................ 3,212 73
-------
TOTAL PREFERRED STOCK- 1.1% 1,640
-------
WARRANTS - 1.2%
Mexico - 0.0%
Cemex SA de CV (CONS) expires 12/12/02
(Cost $1) ..................................... 2,000 1
United States - 1.2%
Morgan Stanley Capital LLC (FINL)
expires 04/07/07 ............................... 23,600 1,853
-------
TOTAL WARRANTS- 1.2% 1,854
-------
102
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX FUND
Market
Name of Issuer Shares Value
(000's)
RIGHTS
Portugal - 0.0%
Portugal Telecom (TELS)
expires 07/09/01 ................................ 46,000 $ 6
--------
TOTAL RIGHTS- 0.0% 6
--------
Par
Value
(000's)
SHORT-TERM INVESTMENTS
Investment in joint trading account - 0.4%
Investment in joint trading account
3.97% due 07/02/01 .............................. $ 756 756
U.S. Treasury Bills - 0.3%
3.43% due 09/13/01# ............................. 410 407
Shares
Cash Equivalents - 16.6%
Navigator Securities Lending Prime
Portfolio ** 25,718,447 25,718
---------- --------
TOTAL SHORT-TERM INVESTMENTS 17.3% 26,881
---------- --------
TOTAL INVESTMENTS- 116.3% 180,332
Other Assets & Liabilities, Net- (16.3)% (25,238)
---------- --------
NET ASSETS- 100.0% $155,094
========== ========
ADR-American Depository Receipts.
GDR-Global Depository Receipts.
* Non-income producing securities.
** Represents investment of security lending collateral.
# All or a portion of the principle amount of this security was pledged to
cover initial margin requirements for open future contracts.
See notes to financial statements.
103
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX FUND
SUMMARY OF LONG-TERM SECURITIES BY INDUSTRY
Market % of
Industry Value Long-Term
Industry Abbreviation (000s) Investments
Bank .................................. BANK $21,303 13.9%
Insurance ............................. INSU 9,576 6.2
Electronic Products & Services ........ ETRN 9,523 6.2
Health Care Products .................. HEAL 9,232 6.0
Diversified Operations ................ DIOP 8,875 5.8
Telecommunication Services ............ TELS 7,299 4.8
Automobile ............................ AUTO 7,094 4.6
Telephone ............................. UTIT 6,496 4.2
Electric Power ........................ UTIE 5,783 3.8
Food, Beverage & Tobacco .............. FOOD 5,716 3.7
Transportation Services ............... TRAN 5,617 3.7
Financial Services .................... FINL 5,608 3.6
Oil & Natural Gas Exploration &
Production ........................... OILX 5,163 3.4
Chemical .............................. CHEM 3,751 2.4
Retail - Department Stores ............ RETS 3,596 2.3
Construction .......................... CONS 3,454 2.2
Oil ................................... OILS 3,027 2.0
Leisure & Recreation .................. LEIS 2,857 1.9
Computer Software & Services .......... SOFT 2,334 1.5
Commercial Services ................... COMM 2,119 1.4
Telecommunication Equipment ........... TELE 1,936 1.3
Media - TV & Radio .................... MEDI 1,835 1.2
Retail - Food ......................... RETF 1,746 1.1
Brokerage & Investment Management ..... FUND 1,707 1.1
Machinery ............................. MACH 1,628 1.1
Cosmetic & Personal Care .............. HNBA 1,319 0.9
Personal & Commercial Lending ......... LEND 1,289 0.8
Real Estate Operations ................ REAL 1,182 0.8
Electrical Equipment .................. ELEQ 1,069 0.7
Paper & Forest Products ............... PAPR 1,003 0.6
Computer Equipment .................... COMP 994 0.6
Consumer Miscellaneous ................ CNSU 945 0.6
Natural Gas Distribution .............. UTIG 882 0.6
Shoe & Apparel Manufacturing .......... APPA 765 0.5
Metals & Mining ....................... META 696 0.5
Real Estate Investment Trust .......... REIT 671 0.4
Steel ................................. STEE 644 0.4
Precious Metals ....................... METP 609 0.4
Media - Publishing .................... MEDP 597 0.4
Real Estate Development ............... READ 533 0.4
Household Appliances & Furnishings .... APPL 532 0.3
Auto & Truck Parts .................... AUTO 510 0.3
Engineering & Construction ............ ENGI 495 0.3
Business Services ..................... BUSI 292 0.2
Pollution Control ..................... POLL 289 0.2
Container ............................. CONT 239 0.2
Aerospace & Defense ................... AERO 155 0.1
Housing ............................... HOUS 133 0.1
Energy ................................ ENER 117 0.1
Retail - Department Stores ............ RETD 117 0.1
Agriculture Operations ................ AGRI 99 0.1
-------- -----
$153,451 100.0%
======== =====
104
SCHEDULE OF INVESTMENTS
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Australia - 2.6%
BHP, Ltd (DIOP) ................................. 27,926 $ 152
Brambles Industries, Ltd. (DIOP) ............... 2,110 52
Broken Hill Proprietary Co., Ltd.
(DIOP) .......................................... 26,220 139
Tabcorp Holdings, Ltd. (LEIS) .................. 6,933 33
Woolworth's, Ltd. (RETS) ....................... 32,164 180
--------
556
Finland - 1.3%
Nokia Oyj (TELS) ............................... 11,772 267
France - 7.6%
Air Liquide (CHEM) ............................. 1,368 197
Alcatel (TELS) ................................. 2,259 47
AXA SA (INSU) ................................... 7,685 219
Castorama Dubois Investisse (RETS) ............. 290 62
France Telecom (TELS) .......................... 997 48
Lafarge SA (CONS) .............................. 2,366 203
Rhone-Poulenc SA (BANK) ........................ 556 44
Schneider SA (MACH) ............................ 3,368 186
Total Fina SA - Cl. B (OILX) .................... 1,156 162
Vivendi Environment (POLL) ..................... 3,340 141
Vivendi Universal SA (DIOP) .................... 5,004 292
--------
1,601
Germany - 6.1%
Allianz AG - Reg. (INSU) ........................ 606 177
Bayerische Motoren Werke AG (AUTO) ............. 6,656 221
Deutsche Bank AG (BANK) ........................ 3,476 249
Deutsche Telekom AG (UTIT) ..................... 3,539 81
Infineon Technologies AG (ETRN) ................ 2,790 66
Muenchener
Rueckversicherungs-Gesellschaft AG -
Reg. (INSU) .................................... 474 132
SAP AG (SOFT) .................................. 1,557 216
Siemens AG (DIOP) .............................. 2,188 134
--------
1,276
Hong Kong - 1.4%
Giordano International Ltd. (APPA) ............. 48,000 25
Hang Seng Bank, Ltd. (BANK) .................... 9,400 96
Hutchison Whampoa, Ltd. (COMM) ................. 4,700 48
Li & Fung, Ltd. (COMM) ......................... 60,000 99
Sun Hung Kai Properties, Ltd. (REIT) ........... 4,000 36
--------
304
Ireland - 0.9%
Bank of Ireland (BANK) ......................... 19,442 193
Italy - 3.4%
San Paolo-IMI SpA (BANK) ....................... 12,300 158
Telecom Italia Mobile SpA (TELS) ............... 11,500 59
Telecom Italia SpA (TELS) ...................... 26,983 242
UniCredito Italiano SpA (BANK) ................. 60,500 260
--------
719
Japan - 23.2%
Advantest (ETRN) ............................... 400 34
Asahi Chemical Industry Co., Ltd.
(CHEM) ........................................ 22,000 92
Banyu Pharmaceutical Co., Ltd. (HEAL) .......... 4,000 73
Canon, Inc. (COMM) ............................. 7,000 283
Chiba Bank, Ltd. (BANK) ........................ 10,000 36
Circle K Japan Co., Ltd. (RETF) ................ 2,900 84
Daiwa Securities Group, Inc. (FUND) ............ 18,000 188
Fuji Photo Film (LEIS) ......................... 5,000 216
Honda Motor Co. (AUTO) ......................... 2,000 88
KAO Corp. (HNBA) ............................... 9,000 224
Keyence Corp. (OILX) ........................... 600 119
Kirin Brewery Co. (FOOD) ....................... 13,000 111
Konami Co., Ltd. (COMP) ........................ 1,300 59
Mitsui Marine & Fire Insurance Co.,
Ltd. (INSU) ................................... 22,000 113
Mizuho Holdings, Inc. *(BANK) .................. 26 121
Murata Manufacturing Co., Ltd. (ETRN) .......... 1,300 86
NGK Insulators (PART) .......................... 10,000 88
Nippon Telegraph & Telephone Corp.
(UTIT) ........................................ 33 172
Nomura Securities Co., Ltd. (FUND) ............. 4,000 77
Ricoh Co., Ltd. (ETRN) ......................... 7,000 151
Rohm Co., Ltd. (ETRN) .......................... 1,200 186
Sanyo Electric Co. (ETRN) ...................... 36,000 227
Secom Co. (ETRN) ............................... 2,000 112
Sharp Corp. (ETRN) ............................. 14,000 191
Shin-Etsu Chemical Co. (CHEM) .................. 2,000 73
Skylark Co., Ltd. (FOOD) ....................... 6,000 171
SMC Corp. (MACH) ............................... 1,400 150
Sony Corp. (ETRN) .............................. 1,400 92
Sumitomo Bank (BANK) ........................... 3,000 25
Sumitomo Corp. (DIOP) .......................... 20,000 140
Takeda Chemical Industries (HEAL) .............. 7,000 326
Takefuji Corp. (LEND) .......................... 2,600 236
Tokyo Electric Power (UTIE) .................... 7,300 189
Toppan Forms Co., Ltd. (COMM) .................. 6,000 101
Toyota Motor Corp. (AUTO) ...................... 6,500 229
UFJ Holdings, Inc. (FINL) ...................... 5 27
--------
4,890
Netherlands - 7.5%
Aegon NV (INSU) ................................ 5,132 145
ASM Lithography Holding NV (COMP) .............. 6,255 140
ING Groep NV (BANK) ............................ 5,680 372
Koninklijke (Royal) Philips Electronics
N.V. (ETRN) ................................... 7,510 199
Royal Dutch Petroleum Co. (OILE) ............... 10,053 579
Unilever NV - CVA (CONS) ........................ 454 27
VNU NV (MEDP) .................................. 3,614 123
--------
1,585
Portugal - 0.2%
Electricidade de Portugal, SA (UTIE) ........... 17,717 42
105
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Singapore - 0.6%
Singapore Technology Engineering, Ltd.
(ENGI) ........................................ 92,000 $ 130
Spain - 2.9%
Acerinox SA (STEE) ............................. 4,439 124
Banco Santander Central Hispano SA
(BANK) ........................................ 10,471 95
Inditex (FUSI) ................................. 6,648 106
Tabacalera S.A. - Cl. A (FOOD) .................. 4,920 70
Telefonica SA (UTIT) ........................... 16,606 205
Union Electrica Fenosa SA (UTIE) ............... 218 4
--------
604
Sweden - 3.5%
Investor AB - B Shares (FUND) ................... 12,183 155
Nordic Baltic Holding AB (BANK) ................ 23,695 135
Securitas AB - B Shares (COMM) .................. 11,074 194
Skandia Forsakrings AB (INSU) .................. 17,002 156
Telefonaktiebolaget LM Ericsson AB *
(TELS) ........................................ 17,614 97
--------
737
Switzerland - 8.7%
Adecco SA (COMM) ................................ 3,586 169
Credit Suisse Group - Reg. (BANK) ............... 1,513 249
Nestle SA (FOOD) ................................ 2,213 471
NovartisS AG (HEAL) ............................. 6,292 228
Roche Holdings AG (HEAL) ........................ 4,387 316
Schweizerische
Rueckversicherungs-Gesellschaft
(INSU) ........................................ 92 184
UBS AG (BANK) .................................. 1,207 173
Zurich Finance (FINL) .......................... 136 46
--------
1,836
United Kingdom - 25.0%
Amvescap PLC (BANK) ............................ 15,375 267
AstraZeneca Group PLC (HEAL) ................... 1,599 75
Barclay's PLC (BANK) ........................... 11,774 361
Bass PLC (FOOD) ................................ 5,938 62
BP Amoco PLC (OILX) ............................ 50,616 417
British Telecommunications PLC (TELS) .......... 44,070 277
CGU PLC (INSU) ................................. 9,546 132
Diageo PLC (FOOD) .............................. 30,407 334
Elan Corp. PLC - ADR (HEAL) .................... 1,400 86
Exel (ETRN) ..................................... 10,828 116
GlaxoSmithKline PLC *(HEAL) .................... 24,243 683
GlaxoSmithKline PLC - ADR (HEAL) ................ 2,300 129
HSBC Holdings PLC (BANK) ....................... 25,108 298
National Grid Group PLC (UTIE) ................. 10,848 80
P&O Princess Cruises PLC *(LEIS) ................ 39,239 204
Reckitt Benckiser PLC (HNBA) ................... 7,177 104
Reuters Group PLC (BUSI) ....................... 8,712 113
Shell Transport & Trading Co. PLC
(OILX) ........................................ 3,111 26
Smiths Group PLC (DIOP) ........................ 21,021 244
Tesco PLC (RETF) ............................... 116,272 420
Unilever PLC (CNSU) ............................ 38,239 323
Vodafone AirTouch PLC (TELS) ................... 231,703 513
--------
5,264
--------
TOTAL COMMON STOCK- 94.9% 20,004
--------
Par
Value
(000's)
SHORT-TERM INVESTMENTS - 5.7%
Investment in joint repurchase
agreement with Goldman Sachs & Co.,
4.11% due 07/02/01. (Secured by
various U.S. Treasury obligations and
U.S. Government Agency Bonds) $ 1,200 1,200
-------- --------
TOTAL INVESTMENTS- 100.6% 21,204
Other Assets & Liabilities, Net- (0.6)% (118)
-------- --------
NET ASSETS- 100.0% $ 21,086
======== ========
ADR-America Depository Receipt
* Non-income producing security.
See notes to financial statements.
106
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
SUMMARY OF LONG-TERM SECURITIES BY INDUSTRY
Market % of
Industry Value Long-Term
Industry Abbreviation (000s) Investments
Bank ............................ BANK $ 3,132 15.7%
Health Care Products ............ HEAL 1,916 9.6
Telecommunication Services ...... TELS 1,550 7.7
Electronic Products & Services .. ETRN 1,460 7.3
Oil ............................. OILX 1,303 6.5
Insurance ....................... INSU 1,258 6.3
Food, Beverage & Tobacco ........ FOOD 1,219 6.1
Diversified Operations .......... DIOP 1,153 5.8
Commercial Sevices .............. COMM 894 4.5
Automobile ...................... AUTO 538 2.7
Retail - Food ................... RETF 504 2.5
Telephone ....................... UTIT 458 2.3
Leisure & Recreation ............ LEIS 453 2.3
Brokerage & Investment
Management ..................... FUND 420 2.1
Chemical ........................ CHEM 362 1.8
Machinery ....................... MACH 336 1.7
Consumer Miscellaneous .......... CNSU 323 1.6
Cosmetic & Personal Care ........ HNBA 328 1.6
Electric Power .................. UTIE 315 1.6
Retail - Department Stores ...... RETS 242 1.2
Personal & Commercial Lending ... LEND 236 1.2
Construction .................... CONS 230 1.1
Business Services ............... BUSI 219 1.1
Computer Software & Services .... SOFT 216 1.1
Computer Equipment .............. COMP 199 1.0
Pollution Control ............... POLL 141 0.7
Engineering & Construction ...... ENGI 130 0.6
Steel ........................... STEE 124 0.6
Media - Publishing .............. MEDP 123 0.6
Auto & Truck Parts .............. PART 88 0.4
Financial Services .............. FINL 73 0.4
Real Estate Investment Trust .... REIT 36 0.2
Shoe & Apparel Manufacturing .... APPA 25 0.1
------- -----
$20,004 100.0%
======= =====
107
SCHEDULE OF INVESTMENTS
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
SMALL CAP GROWTH FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Apparel - 0.5%
Skechers USA, Inc. .............................. 35,100 $ 1,026
Auto & Truck Parts - 0.4%
O'Reilly Automotive,
Inc ............................................ 27,200 781
Bank - 2.4%
Greater Bay Bancorp ............................. 53,400 1,334
Southwest
Bancorporation of
Texas, Inc. * .................................. 51,500 1,556
Sterling Bancshares,
Inc ............................................ 105,400 2,021
---------
4,911
Brokerage & Investment Management - 1.1%
Affiliated Managers
Group, Inc.* .................................. 36,900 2,269
Business Services - 5.0%
Corporate Executive
Board Co.* .................................... 67,100 2,818
Education Management
Corp ........................................... 63,100 2,527
EFunds Corp. .................................... 47,400 882
Expedia, Inc. - Cl. A ........................... 14,900 694
Forrester Research,
Inc. * ........................................ 41,700 942
Management Network
Group, Inc.* ................................... 121,350 740
On Assignment, Inc. * ........................... 80,000 1,440
---------
10,043
Commercial Services - 3.4%
Corinthian Colleges,
Inc ............................................ 42,700 2,010
Plexus Corp.* ................................... 26,000 858
Profit Recovery Group
International, Inc. * .......................... 41,500 476
Quanta Services,
Inc.* .......................................... 23,749 523
Veritas DGC, Inc.* .............................. 41,100 1,141
Waste Connections,
Inc ............................................ 51,950 1,870
---------
6,878
Computer Equipment - 2.0%
Cerner Corp.* ................................... 32,700 1,374
M-Systems Flash Disk Pioneers,
Ltd. * ...................................... 128,500 912
PRI Automation, Inc. * .......................... 95,700 1,773
---------
4,059
Computer Software & Services - 4.6%
Advent Software, Inc. * ......................... 20,900 1,327
Avocent Corp. ................................... 37,746 859
Data Return Corp.* .............................. 88,400 155
Embarcadero
Technologies, Inc. * ........................... 54,900 1,225
Intranet Solutions,
Inc. * ........................................ 36,200 1,377
Macromedia, Inc. * .............................. 55,700 1,003
Secure Computing
Corp.* ........................................ 119,500 1,877
Skillsoft Corp. ................................. 35,900 1,229
TeleCommunication
Systems, Inc. .................................. 110,200 331
---------
Construction - 0.7%
Ryland Group, Inc. .............................. 27,800 1,407
Consumer Miscellaneous - 4.1%
DigitalThink, Inc. * ............................ 70,600 495
GoTo.com, Inc. .................................. 67,100 1,305
NetRatings, Inc. * .............................. 101,400 1,460
ScanSource, Inc. * .............................. 36,900 1,750
Strayer Education,
Inc ............................................ 26,300 1,282
University of Phoenix
Online ......................................... 45,500 1,934
---------
8,226
Diversified Operations - 0.6%
CoorsTek, Inc. .................................. 31,900 1,196
Electric Power - 1.6%
Beacon Power Corp. .............................. 129,350 893
Wilson Greatbatch
Technologies, Inc.* ............................ 79,800 2,314
---------
3,207
Electrical Equipment - 0.7%
LTX Corp. * .................................... 57,700 1,475
Electronic Products & Services - 12.7%
Aeroflex, Inc. * ................................ 109,000 1,144
Alpha Industries,
Inc ............................................ 45,600 1,347
Atmi, Inc. * .................................... 59,600 1,788
Brooks Automation,
Inc. * ........................................ 29,100 1,342
Credence Systems
Corp. * ........................................ 51,200 1,241
Cree, Inc. * .................................... 34,000 889
Cytyc Corp. * .................................. 38,000 876
DDI Corp. ....................................... 74,200 1,484
DuPont Photomasks,
Inc. * ........................................ 30,700 1,481
Elantec
Semiconductor, Inc.
* .............................................. 32,400 1,095
Electro Scientific
Industries, Inc. * ............................ 42,700 1,627
FEI Co. ......................................... 4,800 197
FMC Technologies,
Inc ............................................ 1,800 37
Microsemi Corp. ................................. 38,700 2,748
Nanometrics, Inc. * ............................. 38,000 1,045
Pixelworks, Inc. * .............................. 48,350 1,728
PLX Technology, Inc. * .......................... 127,200 1,080
Rudolph Technologies,
Inc. * ........................................ 45,000 2,115
Semtech Corp. * ................................ 51,200 1,536
Silicon Storage
Technology, Inc. * ............................ 88,400 895
---------
25,695
Energy - Alternative Source - 0.2%
Evergreen Solar, Inc. ........................... 52,300 502
Financial Services - 0.6%
Actrade Financial
Technologies, Ltd. * ........................... 20,455 484
Medallion Financial
Corp ........................................... 66,100 677
---------
1,161
Food, Beverage & Tobacco - 2.5%
American Italian
Pasta Co. ...................................... 38,800 1,800
Dean Foods Co. .................................. 25,000 1,005
108
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Food, Beverage & Tobacco - Continued
Performance Food
Group Co. ...................................... 73,800 $ 2,231
---------
5,036
Health Care Products - 6.5%
Alkermes, Inc. .................................. 41,200 1,446
Charles River
Laboratories ................................... 3,387 118
Cima Labs, Inc. ................................. 15,400 1,209
Exelixis, Inc. .................................. 34,400 653
Inhale Therapeutic
Systems, Inc.* ................................. 64,400 1,481
Inspire
Pharmaceuticals,
Inc ............................................ 20,500 287
Mid Atlantic Medical
Services, Inc. * .............................. 62,600 1,122
Noven
Pharmaceuticals,
Inc ............................................ 37,300 1,462
Regeneron
Pharmaceuticals ................................ 25,400 880
Renal Care Group,
Inc. * ........................................ 79,700 2,621
Salix
Pharmaceuticals,
Ltd ............................................ 19,800 488
Unilab Corp. .................................... 2,300 58
Urologix, Inc. * ................................ 71,100 1,302
---------
13,127
Health Care Services - 8.1%
Accredo Health, Inc. ............................ 64,100 2,384
AmeriSource Health
Corp. - Cl. A* ................................. 25,900 1,432
Apria Healthcare
Group, Inc. * .................................. 32,400 935
Covance, Inc. * ................................ 75,800 1,717
DaVita, Inc.* .................................. 89,021 1,810
Gene Logic, Inc. ................................ 18,100 395
LifePoint Hospitals,
Inc. * ........................................ 48,900 2,165
Lincare Holdings,
Inc. * ........................................ 36,800 1,104
Rightchoice Manage
Care, Inc. ..................................... 35,000 1,554
Ventiv Health, Inc. * ........................... 67,400 1,391
Visible Genetics,
Inc. * ........................................ 61,200 1,521
---------
16,408
Household Appliances / Furnishings - 0.5%
Ethan Allen
Interiors, Inc. ................................ 31,300 1,017
Insurance - 3.3%
Fidelity National
Financial, Inc. ................................ 57,600 1,415
HCC Insurance
Holdings, Inc. ................................. 61,900 1,517
Philadelphia
Consolidated Holding
Corp. * ........................................ 25,900 901
Renaissancere
Holdings, Ltd. ................................. 19,000 1,408
Stancorp Financial
Group, Inc. .................................... 28,300 1,341
---------
6,582
Machinery - 0.6%
Global Power
Equipment Group,
Inc ......................................... 20,077 588
SureBeam Corporation
- Cl. A * ...................................... 40,300 690
---------
1,278
Media - Publishing - 0.8%
Scholastic Corp.* ............................... 35,000 1,575
Media - TV & Radio - 5.2%
Entercom
Communications Corp. * ......................... 32,500 1,742
Getty Images, Inc. .............................. 57,200 1,502
Insight
Communications
Company, Inc. .................................. 40,200 1,005
Pegasus
Communications
Corp.* ........................................ 40,900 920
Radio One, Inc. * .............................. 42,500 978
Radio One, Inc. - Cl. D ......................... 61,200 1,349
Regent
Communications, Inc. * ......................... 190,600 2,285
Sinclair Broadcast
Group, Inc. .................................... 62,000 639
---------
10,420
Oil & Natural Gas Exploration & Production - 5.4%
Encore Acquisition
Co. * .......................................... 17,000 196
Evergreen Resources,
Inc ............................................ 28,000 1,064
Fuelcell Energy, Inc. ........................... 27,800 642
Newfield Exploration
Co. * .......................................... 41,400 1,327
NPS Pharmaceuticals,
Inc ............................................ 59,300 2,384
Patterson Uti Energy,
Inc. * ........................................ 55,500 992
Pride International,
Inc. * ........................................ 56,300 1,070
Spinnaker Exploration
Co.* .......................................... 40,900 1,630
Stone Energy Corp. * ............................ 35,200 1,559
---------
10,864
Oil - Equipment & Service - 4.7%
Dril Quip, Inc. * .............................. 61,300 1,320
Horizon Offshore,
Inc. * ........................................ 65,200 880
Hydril Co. * .................................... 73,000 1,662
Lone Star
Technologies, Inc. * ........................... 38,100 1,379
Marine Drilling
Companies, Inc. * .............................. 53,700 1,026
Natco Group, Inc. -
Cl. A .......................................... 65,500 577
Oceaneering
International, Inc. * .......................... 51,800 1,075
Torch Offshore, Inc. ............................ 12,600 125
Universal Compression
Holdings * .................................... 52,100 1,480
---------
9,524
Personal & Commercial Lending - 0.6%
Metris Cos., Inc. ............................... 37,400 1,261
Real Estate Investment Trust - 0.5%
Extended Stay
America, Inc. .................................. 64,300 964
Retail - 0.1%
Galyans Trading, Inc. ........................... 8,400 171
Retail - Department Stores - 5.5%
AnnTaylor Stores
Corp ........................................... 8,200 294
99 Cents Only Stores * .......................... 62,698 1,878
Bebe Stores, Inc. ............................... 39,200 1,143
Cost Plus, Inc.* ................................ 59,050 1,771
Hot Topic, Inc. ................................. 45,700 1,421
Rare Hospitality
International, Inc. * .......................... 48,000 1,085
Too, Inc. * .................................... 44,000 1,206
Tweeter Home
Entertainment Group,
Inc ............................................ 67,100 2,369
---------
11,167
109
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Retail - Drug Stores - 0.7%
Duane Reade, Inc.* .............................. 43,400 $ 1,410
Retail - Food - 4.6%
Applebee's
International, Inc. ............................ 51,000 1,632
Buca, Inc. * .................................... 59,700 1,299
California Pizza
Kitchen, Inc. .................................. 47,500 1,104
Krispy Kreme
Doughnuts, Inc. ................................ 46,200 1,848
P.F. Chang's China
Bistro, Inc.* .................................. 40,600 1,539
Whole Foods Market,
Inc. * ........................................ 70,000 1,897
---------
9,319
Shoe & Apparel Manufacturing - 2.1%
Columbia Sportswear
Co. * .......................................... 45,000 2,294
Nautica Enterprises,
Inc ............................................ 10,600 217
Tommy Hilfiger Corp. * .......................... 117,400 1,644
---------
4,155
Telecommunication Equipment - 0.6%
Brightpoint, Inc. * ............................ 166,400 483
SBA Communications
Corp. * ........................................ 28,500 705
---------
1,188
Telecommunication Services - 3.0%
Airgate PCS, Inc. * ............................ 40,800 2,122
Alamosa Holdings,
Inc. * ........................................ 64,300 1,048
CTC Communications
Group, Inc. .................................... 87,000 266
Dobson Communications
Corp. * ........................................ 34,100 581
Metro One Telecom,
Inc ............................................ 31,300 2,031
---------
6,048
Transportation Services - 0.7%
Forward Air Corp. * ............................ 46,500 1,393
---------
TOTAL COMMON STOCK- ........................... 96.6% 195,126
---------
Par
Value
(000's)
SHORT-TERM INVESTMENTS
Investment in joint trading account - 3.6%
Investment in joint trading account
3.97% due 07/02/01 .............................. $ 7,290 7,290
Shares
Cash Equivalents - 7.6%
Navigator Securities
Lending Prime
Portfolio ** 15,318,473 15,318
---------- ---------
TOTAL SHORT-TERM INVESTMENTS 11.2% 22,608
---------- ---------
TOTAL INVESTMENTS- 107.8% 217,734
Other Assets & Liabilities, Net- (7.8)% (15,681)
---------- ---------
NET ASSETS- 100.0% $ 202,053
========== =========
* Non-income producing securities.
** Represents investment of security lending collateral.
See notes to financial statements.
110
SCHEDULE OF INVESTMENTS
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
HEALTH SCIENCES FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Bank - 2.4%
Rhone-Poulenc SA ................................ 6,800 $ 543
Business Services - 0.4%
Express Scripts, Inc. - Cl. A* .................. 1,800 99
Diversified Operations - 1.4%
Amgen, Inc. ..................................... 5,000 303
Electronic Products & Services - 1.8%
Applera Corporation - Applied
Biosystems Group ............................... 5,700 152
Cytyc Corp. * ................................... 6,400 147
Waters Corp. * ................................. 3,650 101
-------
400
Health Care Products - 78.4%
Abbott Laboratories ............................. 7,400 355
Alkermes, Inc. .................................. 5,500 193
Allergan, Inc. .................................. 6,800 581
American Home Products Corp. .................... 16,600 970
Andrx Corp. ..................................... 2,600 200
Angiotech Pharmaceuticals, Inc. ................. 1,000 52
Apogent Technologies, Inc. ...................... 4,900 121
AstraZeneca Group PLC - ADR ..................... 16,400 767
Aviron .......................................... 2,400 137
Barr Laboratories, Inc. ......................... 1,600 113
Bristol-Myers Squibb Co. ........................ 5,800 303
Cardinal Health, Inc. ........................... 7,500 517
Cephalon, Inc. * ............................... 2,400 169
Cerus Corp. ..................................... 1,880 136
Charles River Laboratories * ................... 4,800 167
COR Therapeutics, Inc. * ....................... 4,900 149
Elan Corp. PLC - ADR ............................ 6,100 372
Eli Lilly & Co. ................................. 7,200 533
Enzon , Inc. .................................... 2,200 138
Forest Laboratories, Inc. * ..................... 2,000 142
Genetech, Inc.* ................................. 4,900 270
Genzyme Corp.* .................................. 2,150 131
Gilead Sciences, Inc.* .......................... 6,000 349
Glaxo SmithKline PLC - ADR 8 ................... 19,300 1,085
Guilford Pharmaceuticals, Inc. .................. 1,800 61
Inhale Therapeutic Systems, Inc.* .............. 4,400 101
Intermune, Inc. * ............................... 700 25
Invitrogen Corp. * ............................. 2,600 187
Ivax Corp. ...................................... 7,200 281
Johnson & Johnson ............................... 19,200 960
King Pharmaceuticals, Inc. * ................... 3,900 210
Laboratory Corp. of America Holdings ............ 1,200 92
McKesson HBOC, Inc. ............................. 6,900 256
Medicis Pharmaceutical Corp. - Cl. A ............ 2,700 143
MedImmune, Inc. * ............................... 7,900 373
Medtronic, Inc. ................................. 14,900 686
Merck & Co., Inc. ............................... 13,600 869
NPS Pharmaceuticals, Inc. * ..................... 3,600 145
Pfizer, Inc. .................................... 31,400 1,258
Pharmacia Corp. ................................. 19,700 905
Priority Healthcare Corp. - Cl. B ............... 2,500 71
Protein Design Labs, Inc.* ..................... 1,670 145
Qiagen NV ....................................... 2,700 60
Sankyo Co., Ltd. ................................ 3,000 54
Sanofi-Synthelabo SA * ......................... 5,300 348
Schering-Plough Corp. ........................... 17,900 649
Scios, Inc. ..................................... 3,300 83
Sepracor, Inc. 8 ............................... 3,850 153
Serono SA ....................................... 120 119
Shire Pharmaceuticals Group Place - ADR ......... 5,100 283
Stryker Corp. * ................................. 3,600 198
Takeda Chemical Industries ...................... 4,000 186
Tanox, Inc. ..................................... 2,500 79
Teva Pharmaceutical Industries, Ltd. - ADR ...... 2,400 150
Trigon Healthcare, Inc. ......................... 2,800 182
Trimeris, Inc. .................................. 2,700 135
-------
17,397
Health Care Services - 8.0%
AmeriSource Health Corp. - Cl. A * ............. 2,000 111
Biovail Corp. ................................... 2,400 104
HCA-The Healthcare Corp. ........................ 15,000 678
IDEC Pharmaceuticals Corp. ...................... 950 64
Lincare Holdings, Inc. .......................... 3,400 102
Quest Diagnostics, Inc. * ....................... 1,800 135
St. Jude Medical, Inc. 8 ....................... 3,400 204
Triad Hospitals, Inc. * ......................... 3,200 94
UnitedHealth Group, Inc. ........................ 4,470 276
-------
1,768
Insurance - 1.8%
Cigna Corp. ..................................... 4,000 383
Retailers - Food & Drug - 0.9%
CVS Corp. ....................................... 4,000 154
Rite Aid Corp. .................................. 5,350 48
-------
202
-------
TOTAL COMMON STOCK- 95.1% 21,095
-------
111
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
HEALTH SCIENCES FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
SHORT-TERM INVESTMENTS - 5.5%
Investment in joint trading account
3.97% due 07/02/01 ............................ $ 1,218 $ 1,218
------- ----------
TOTAL INVESTMENTS- 100.6% 22,313
Other Assets & Liabilities, Net- (0.6)% (124)
------- ----------
NET ASSETS- 100.0% $ 22,189
======= ==========
ADR-American Depository Receipts.
* Non-income producing security.
See notes to financial statements.
112
SCHEDULE OF INVESTMENTS
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
GLOBAL BALANCED FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Australia - 2.0%
Australia & New Zealand Banking Group,
Ltd. (FINL) .................................... 5,000 $ 43
BHP, Inc. (DIOP) ................................ 9,905 54
Broken Hill Proprietary Co., Ltd. (DIOP) ........ 9,300 49
CSL, Ltd. (HEAL) ................................ 6,900 168
National Australia Bank, Ltd. (BANK) ............ 2,100 38
Publishing & Broadcasting, Ltd. (MEDP) .......... 15,400 71
QBE Insurance Group, Ltd. (INSU) ............... 7,212 43
WMC, Ltd. (DIOP) ................................ 18,200 89
-------
555
Canada - 1.6%
Alcan Aluminum, Ltd. (META) ..................... 1,700 72
ATI Technologies, Inc. (ETRN) .................. 6,500 61
Bombardier Inc. - Cl. B (DIOP) ................. 4,600 69
Investors Group, Inc. (FINL) ................... 6,400 90
Magna International, Inc. (AUTO) ............... 1,300 80
The Thomson Corp. (SOFT) ........................ 2,500 84
-------
456
Finland - 1.4%
Nokia Oyj (TELE) ................................ 11,800 268
Nokia Oyj - ADR (TELE) .......................... 5,200 115
-------
383
France - 1.8%
Accor SA (LEIS) ................................. 800 34
Bouygues SA (CONT) .............................. 2,500 85
Groupe Danone (FOOD) ............................ 300 41
JC Decauxsa International NPV (BUSI) ............ 1,600 21
LVMH (Louis Vuitton Moet Hennessy) (FOOD) ....... 1,300 66
Sanofi-Synthelabo SA (HEAL) ..................... 2,400 158
Schneider SA (MACH) ............................. 200 11
Societe Television Francaise (MEDI) ............. 2,100 61
STMicroelectronics (ETRN) ....................... 1,100 38
-------
515
Germany - 1.2%
DaimlerChrysler AG (AUTO) ....................... 3,400 157
Deutsche Bank AG (BANK) ......................... 500 36
Infineon Technologies AG (ETRN) ................ 2,700 63
Metro AG (RETS) ................................. 1,100 41
Siemens AG (DIOP) ............................... 750 46
-------
343
Hong Kong - 1.6%
Cheung Kong (Holdings), Ltd. (READ) ............. 7,000 76
China Telecom (Hong Kong), Ltd. (TELS) .......... 13,500 71
Hutchison Whampoa, Ltd. (COMM) ................. 5,000 50
Johnson Electric Holdings, Ltd. (ETRN) .......... 44,000 60
Li & Fung, Ltd. (COMM) .......................... 48,000 79
Sun Hung Kai Properties, Ltd. (REIT) ............ 3,000 27
Swire Pacific, Ltd. - Cl. A (DIOP) ............. 18,500 96
-------
459
Italy - 0.4%
Assicurazioni Generali (INSU) .................. 2,000 60
ENI SpA (OILS) .................................. 2,850 35
Olivetti SpA (COMM) ............................. 16,600 29
-------
124
Japan - 7.1%
Advantest (ETRN) ................................ 800 69
Enplas Corp. (ETRN) ............................. 1,800 40
Fuji Television Network, Inc. (MEDI) ............ 6 34
Hirose Electric Co., Ltd. (ETRN) ............... 400 30
Hoya Corp. (ETRN) ............................... 600 38
Jusco Co., Ltd. (RETS) .......................... 2,000 44
Keyence Corp. (UTIE) ............................ 200 40
Matsumotokiyoshi Co., Ltd. (RETD) .............. 1,000 39
Mitsubishi Heavy Industries, Ltd. (MACH) ........ 10,000 46
Mitsui Fudosan Co., Ltd. (REAL) ................ 4,000 43
Mitsui Marine & Fire Insurance Co.,
Ltd. (INSU) .................................... 16,000 82
Murata Manufacturing Co., Ltd. (ETRN) ........... 900 60
NEC Corp. (COMP) ................................ 7,000 95
Nintendo Corp., Ltd. (LEIS) ..................... 700 127
Nippon Television Network Corp. (MEDP) .......... 100 24
Nissan Motor Acceptance Corp. (FINL) ............ 12,000 83
Nomura Securities Co., Ltd. (FUND) ............. 4,000 77
NTT Mobile Communications Network, Inc. (TELS) .. 10 174
Orix Corp. (FINL) ............................... 400 39
Rohm Co., Ltd. (ETRN) ........................... 500 78
Shionogi & Co., Ltd. (HEAL) ..................... 5,000 104
Sony Corp. (ETRN) ............................... 1,500 99
Sumitomo Bank (BANK) ............................ 5,000 41
Suzuki Motor Corp. (AUTO) ....................... 7,000 93
Taiyo Yuden Co., Ltd. (ELEQ) .................... 2,000 53
Tokyo Electron, Ltd. (ETRN) ..................... 900 54
Tokyo Seimitsu Co., Ltd. (ETRN) ................. 2,400 123
Toray Industries, Inc. (HOUS) ................... 18,000 72
UFJ Holdings, Inc. (FINL) ....................... 15 81
-------
1,982
Mexico - 0.8%
America Movil SA de CV -
ADR Ser. L (TELS) .............................. 4,100 86
Telefonos de Mexico SA - ADR (UTIT) ............. 4,100 144
-------
230
Netherlands - 2.0%
ABN Amro Holding NV (BANK) ...................... 1,532 29
113
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
GLOBAL BALANCED FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Netherlands - Continued
Aegon NV (INSU) ................................. 6,555 $ 185
ASM Lithography Holding NV (COMP) ............... 3,700 83
Heineken NV (FOOD) .............................. 2,500 101
ING Groep NV (BANK) ............................. 1,100 72
Koninklijke (Royal) Philips
Electronics N.V. (ETRN) ........................ 2,000 53
United Pan Europe (TELS) ........................ 4,300 11
Vedior CVA (BUSI) ............................... 3,000 27
------
561
Norway - 0.5%
Norsk Hydro ASA (DIOP) .......................... 1,800 76
Statoil ASA (OILX) .............................. 7,500 56
------
132
Panama - 0.3%
Carnival Corp. (LEIS) ........................... 2,300 71
Russia - 0.3%
LuKoil Holding - ADR (OILS) ..................... 1,600 77
Singapore - 0.7%
DBS Group Holdings, Ltd. (BANK) ................. 4,000 29
Singapore Technology Engineering, Ltd. (ENGI) ... 53,000 75
Singapore Telecom Reg.(TELS) ................... 108,000 101
------
205
South Korea - 0.4%
Samsung Electronics 144A (ETRN) ................ 1,300 102
Spain - 0.6%
Banco Bilbao Vizcaya SA (BANK) ................. 6,900 90
Inditex (APPA) .................................. 1,700 27
Telefonica SA (UTIT) ............................ 5,202 64
------
181
Sweden - 0.5%
ASSA ABLOY (METP) ............................... 3,400 49
ForeningsSparbanken AB (BANK) .................. 5,400 63
Telefonaktiebolaget LM Ericsson AB (TELE) ....... 7,200 39
------
151
Switzerland - 2.3%
Compagnie Financiere Richemont AG (RETS) ........ 50 128
Credit Suisse Group - Reg. (BANK) .............. 300 49
Holcim (CONS) ................................... 528 108
Nestle SA Reg. (FOOD) ........................... 180 38
Novartis AG Reg.(HEAL) .......................... 4,940 179
Schweizerische Rueckversicherungs-Gesellschaft
(INSU) ........................................ 50 100
Synthes-Stratec, Inc. (HEAL) ................... 70 43
------
645
Taiwan - 0.4%
Taiwan Semiconductor
Manufacturing Co., Ltd. - ADR (ETRN) ........... 6,920 105
United Kingdom - 7.1%
Applera Corporation - Applied Biosystems Group
(HEAL) ........................................ 1,100 29
AstraZeneca Group PLC (HEAL) ................... 12,200 569
Asustek Computer, Inc. - GDR (COMP) ............. 9,750 42
British Aerospace PLC (AERO) ................... 11,000 53
Chevron Corp. (OILX) ............................ 900 81
Corus Group (STEE) .............................. 59,000 50
Dimension Data Holdings PLC (SOFT) ............. 8,900 34
Halifax Group plc (LEND) ........................ 4,800 56
Juniper Networks, Inc. (SOFT) .................. 800 25
Linear Technology Corp. (ETRN) ................. 800 35
Marks & Spencer PLC (RETS) ...................... 7,000 26
PartnerRe, Ltd. (INSU) .......................... 700 39
Pearson PLC (MEDP) .............................. 2,900 48
Prudential Corp. (INSU) ......................... 3,000 36
Reuters Group PLC (BUSI) ........................ 5,500 72
Robert Half International, Inc. (BUSI) .......... 1,400 35
Shell Transport & Trading Co. PLC (OILX) ........ 27,300 227
Smiths Group PLC (DIOP) ......................... 3,700 43
The PMI Group, Inc. (INSU) ...................... 1,700 124
Unilever PLC (CNSU) ............................. 9,400 79
Vodafone AirTouch PLC (TELS) ................... 128,238 284
------
1,987
United States - 25.9%
Advanced Micro Devices, Inc. (COMP) ............. 2,800 81
AES Corp. (UTIE) ................................ 3,100 133
Agere Systems, Inc. - Cl. A (ETRN) ............. 4,400 33
Agilent Technologies, Inc. (ETRN) .............. 2,000 65
Air Products & Chemicals, Inc. (CHEM) ........... 900 41
Alcoa, Inc. (META) .............................. 1,800 71
Allstate Corp. (INSU) ........................... 1,300 57
American Greetings Corp. - Cl. A (COMM) ......... 5,200 57
AOL Time Warner, Inc. (MEDI) ................... 2,100 111
Applied Materials, Inc. (ETRN) ................. 3,500 172
AT&T Corp. (UTIT) ............................... 2,000 44
AT&T Corp. - Liberty Media Group -
Cl. A (MEDP) ................................... 7,000 122
Baker Hughes, Inc. (OILX) ....................... 2,700 90
Bank of America Corp. (BANK) ................... 4,700 282
Berkshire Hathaway Inc. - Cl. A (DIOP) .......... 2 139
Brocade Communications Systems, Inc. (COMP) ..... 1,500 66
Cablevision Systems Corp. (MEDI) ............... 3,550 92
Cablevision Systems Corp. - Cl. A (MEDI) ........ 2,700 158
Cadence Design Systems, Inc. (SOFT) ............. 2,000 37
Campbell Soup Co. (FOOD) ........................ 3,300 85
114
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
GLOBAL BALANCED FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
United States - Continued
Charter Communications, Inc. - Cl. A (MEDI) ..... 3,000 $ 70
CheckFree Corp. (SOFT) .......................... 1,900 67
Circuit City Stores, Inc. (RETS) ............... 6,900 124
Cisco Systems, Inc. (ETRN) ...................... 8,800 160
Compaq Computer Corp. (COMP) ................... 4,300 67
Cox Communications, Inc. - Cl. A (TELS) ......... 1,300 58
DoubleClick, Inc. (SOFT) ........................ 3,100 43
Dover Corp. (MACH) .............................. 900 34
Ecolab, Inc. (COMM) ............................. 1,300 53
Edison International (UTIT) ..................... 3,000 33
Exxon Mobil Corp. (OILE) ........................ 400 35
FleetBoston Financial Corp. (BANK) ............. 4,200 166
Fluor Corp. (ENGI) .............................. 2,100 95
General Mills, Inc. (FOOD) ...................... 1,000 44
General Motors Corp. (PART) ..................... 1,000 64
General Motors Corp. - Cl. H (AUTO) ............. 1,800 36
Genetech, Inc. (HEAL) ........................... 1,200 66
H.J. Heinz Co. (FOOD) ........................... 1,300 53
Hewlett-Packard Co. (COMP) ...................... 4,500 129
Household International, Inc. (LEND) ............ 2,500 167
Illinois Tool Works, Inc. (DIOP) ............... 2,400 152
IMC Global, Inc. (CHEM) ......................... 7,200 73
Intel Corp. (COMP) .............................. 2,100 61
International Paper Co. (PAPR) ................. 1,300 46
Intersil Holding Corp. (ETRN) .................. 1,700 62
Kellogg Co. (FOOD) .............................. 4,000 116
KLA-Tencor Corp. (ETRN) ......................... 2,400 140
Kraft Foods, Inc. CL A (FOOD) .................. 2,300 71
Limited, Inc. (RETS) ............................ 2,900 48
Lowe's Cos., Inc. (RETS) ........................ 3,000 218
Macromedia, Inc. (SOFT) ......................... 3,900 70
Medtronic, Inc. (HEAL) .......................... 1,800 83
Microsoft Corp. (SOFT) .......................... 1,100 80
Motorola, Inc. (ETRN) ........................... 3,800 63
Navistar International Corp., Inc.
- Cl. B (AUTO) ................................. 1,200 34
Nike, Inc. - Cl. B (HOUS) ....................... 900 38
Nortel Networks Corp. (TELE) ................... 4,000 36
Novellus Systems, Inc. (ETRN) .................. 700 40
NRG Energy, Inc. (OILX) ......................... 1,400 31
Peoplesoft, Inc. (SOFT) ......................... 900 44
PepsiCo, Inc. (FOOD) ............................ 2,200 97
Pfizer, Inc. (HEAL) ............................. 5,000 200
PMC-Sierra, Inc. (ETRN) ......................... 1,500 47
Raytheon Co. (AERO) ............................. 3,400 90
Siebel Systems, Inc. (SOFT) ..................... 800 38
Sprint Corp. (UTIT) ............................. 1,600 34
Sprint PCS (PCS Group) (TELS) .................. 3,500 85
Teradyne, Inc. (ETRN) ........................... 3,000 99
Texas Instruments, Inc. (ETRN) ................. 2,700 85
The Walt Disney Co. (MEDI) ...................... 1,000 29
TMP Worldwide, Inc. (BUSI) ...................... 1,100 66
Transocean Sedco Forex, Inc. (OILS) ............. 1,000 41
Tyco International, Ltd. (DIOP) ................ 2,100 114
TyCom, Ltd. (TELE) .............................. 2,700 46
UAL Corp. (TRAN) ................................ 2,700 95
United Parcel Service, Inc. - Cl. B (TRAN) ...... 700 41
United Technologies Corp. (AERO) ............... 1,800 132
USA Education, Inc. (LEND) ...................... 1,900 139
USA Networks, Inc. (MEDI) ....................... 4,500 126
VeriSign, Inc. (SOFT) ........................... 1,000 60
Viacom, Inc. - Cl. B (MEDI) ..................... 1,000 52
W.W. Grainger, Inc. (DIOP) ...................... 900 37
Washington Mutual, Inc. (BANK) ................. 7,350 276
Weatherford International, Inc. (OILS) .......... 1,200 58
Wells Fargo & Co. (BANK) ........................ 2,000 93
Williams Communication Group (TELE) ............. 2,220 7
Williams Cos., Inc. (OILX) ...................... 2,700 89
--------
7,282
--------
TOTAL COMMON STOCK- 58.9% 16,546
--------
PREFERRED STOCK - 0.1%
Supra National - 0.1%
UFJ International Finance
(BERMUDA) 144A (FINL) .......................... 2,000,000 17
--------
TOTAL PREFERRED STOCK- 0.1% 17
--------
Par
Value
(000's)
PUBLICLY-TRADED BONDS
Canada - 1.0%
Government of Canada (GOVF)
7.25% due 06/01/07 .............................. 405 286
Denmark - 0.5%
Kingdom of Denmark - Bullet Bond (GOVF)
8.0% due 03/15/06 ............................... 1,100 141
Finland - 0.8%
Republic of Finland - Bonds (GOVF)
5.75% due 02/23/11 .............................. 250 218
France - 1.0%
Government of France - Debs. (GOVF)
4.0% due 10/25/09 ............................... 370 289
Germany - 3.4%
Federal Republic of Germany - Bonds (GOVF)
5.25% due 01/04/08 .............................. 1,000 869
Kredit Fur Wiederaufbau (BANK)
5.0% due 07/04/11 ............................... 100 82
--------
951
115
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
GLOBAL BALANCED FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - Continued
Japan - 1.8%
Government of Japan - Bonds (GOVF)
0.9% due 12/22/08 ............................... 30,000 $ 242
Government of Japan (GOVF)
1.8% due 03/22/10 ............................... 30,000 257
--------
499
Luxembourg - 0.9%
KFW International Finance (BANK)
1.0% due 12/20/04 ............................... 30,000 247
Netherlands - 6.3%
Netherlands Government - Bonds Series 1 & 2 (GOVF)
6.0% due 01/15/06 ............................... 2,000 1,782
Supra National - 6.7%
Asian Development Bank (BANK)
5.625% due 02/18/02 ............................. 40,000 332
Bank of Ireland (BANK)
6.45% due 02/10/10 .............................. 250 215
British Telecommunications PLC (TELS)
6.875% due 02/15/11 ............................. 125 107
FIixed Link Finance BV (FINL)
6.3% due 08/28/25 ............................... 100 141
International Bank of Reconstruction &
Development - Debs. (BANK)
4.75% due 12/20/04 .............................. 30,000 278
International-American Development
Bank - Bonds (BANK)
1.9% due 07/08/09 ............................... 40,000 349
Kingdom of Spain - Notes (GOVF)
3.1% due 09/20/06 ............................... 50,000 458
--------
1,880
United Kingdom - 0.5%
U.K. Treasury (GOVF)
7.25% due 12/07/07 .............................. 100 154
United States - 12.7%
Federal National Mortgage Assoc. (GOVA)
5.25% due 01/15/09 .............................. 340 325
Federal National Mortgage Assoc. - Sr. Notes
(GOVA)
2.125% due 10/09/07 ............................. 40,000 352
Nortel Networks, Ltd. - Notes (TELE)
6.125% due 02/15/06 ............................. 125 108
U.S. Treasury Bills (GOVE)
3.435% due 09/13/01 ............................ 62 62
U.S. Treasury - Bonds (GOVE)
7.25% due 05/15/16 .............................. 250 285
8.0% due 11/15/21 ............................... 635 791
U.S. Treasury - Notes (GOVE)
5.75% due 08/15/03 .............................. 1,115 1,147
6.625% due 05/31/02 ............................. 489 501
--------
3,571
--------
TOTAL PUBLICLY-TRADED BONDS- 35.6% 10,018
--------
SHORT-TERM INVESTMENTS - 3.3%
Investment in joint trading account
3.97% due 07/02/01 .............................. $ 931 931
---------- --------
TOTAL INVESTMENTS- 97.9% 27,512
Other Assets & Liabilities, Net 2.1% 594
---------- --------
NET ASSETS- 100.0% $ 28,106
========== ========
ADR - American Depository Receipts.
GDR - Global Depository Receipts.
(a) Pursuant to Rule 144A under the Securities Act of 1993, these securities
may be resold in transactions exempt from registration, normally to
qualified institutional buyers. At June 30, 2001, securities aggregated
$119 or 42% of net assets of the Portfolio.
See notes to financial statements.
116
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
GLOBAL BALANCED FUND
SUMMARY OF LONG-TERM SECURITIES BY INDUSTRY
Market % of
Industry Value Long-Term
Industry Abbreviation (000s) Investments
Foreign Governmental ................. GOVF $4,696 17.7%
Bank ................................. BANK 2,767 10.4
U.S. Governmental .................... GOVE 2,786 10.5
Electronic Products & Services ....... ETRN 2,076 7.8
Health Care Products ................. HEAL 1,599 6.0
Telecommunication Services ........... TELS 977 3.7
Diversified Operations ............... DIOP 964 3.6
Media - TV / Radio ................... MEDI 733 2.8
Insurance ............................ INSU 726 2.7
Food, Beverage & Tobacco ............. FOOD 712 2.7
U.S. Government Agencies ............. GOVA 677 2.5
Financial Services ................... FINL 661 2.5
Retail - Department Stores ........... RETS 629 2.4
Telecommunication Equipment .......... COMP 619 2.3
Computer Software & Services ......... SOFT 582 2.2
Oil & Natural Gas Exploration &
Production .......................... OILX 574 2.2
Computer Equipment ................... TELE 494 1.9
Automobile ........................... AUTO 400 1.5
Personal & Commercial Lending ........ LEND 362 1.4
Aerospace & Defense .................. AERO 351 1.3
Telephone ............................ UTIT 319 1.2
Commercial Sevices ................... COMM 268 1.0
Media - Publishing ................... MEDP 265 1.0
Leisure & Recreation ................. LEIS 232 0.9
Business Services .................... BUSI 221 0.8
Oil .................................. OILS 211 0.8
Electric Power ....................... UTIE 173 0.7
Engineering & Construction ........... ENGI 170 0.6
Metals & Mining ...................... META 143 0.5
Transportation Services .............. TRAN 136 0.5
Chemical ............................. CHEM 114 0.4
Housing .............................. HOUS 110 0.4
Construction ......................... CONS 108 0.4
Machinary ............................ MACH 91 0.3
Container ............................ CONT 85 0.3
Consumer-Miscellaneous ............... CNSU 79 0.3
Brokerage & Investment Management .... FUND 77 0.3
Auto & Truck Parts ................... PART 64 0.2
Electric Equipment ................... ELEQ 53 0.2
Steel ................................ STEE 50 0.2
Precious Metals ...................... METP 49 0.2
Paper & Forset Products .............. PAPR 46 0.2
Real Estate Operations ............... REAL 43 0.2
Oil Eequipment & Service ............. OILE 35 0.1
Shoe & Apparel Manufacturing ......... APPA 27 0.1
Real Estate Investment Trust ......... REIT 27 0.1
------- ------
$26,581 100.0%
======= ======
117
SCHEDULE OF INVESTMENTS
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
MID CAP GROWTH FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Bank - 0.9%
North Fork Bancorp, Inc. ..................... 93,430 $ 2,896
Brokerage & Investment Management - 1.0%
E*Trade Group, Inc. * ........................ 454,265 2,930
Commercial Services - 12.1%
Apollo Group, Inc. - Cl. A * ................. 239,178 10,153
Cendant Corp. ................................ 212,900 4,152
Concord EFS, Inc. ............................ 96,030 4,994
Lamar Advertising Co. * ...................... 145,515 6,403
Plexus Corp. * ............................... 53,275 1,758
TMP Worldwide, Inc. * ........................ 154,895 9,294
--------
36,754
Consumer Miscellaneous - 1.6%
University of Phoenix Online * ............... 114,805 4,879
Electric Power - 2.8%
AES Corp. .................................... 104,260 4,489
Calpine Corp. * .............................. 29,955 1,132
Reliant Resources, Inc. ..................... 111,040 2,743
--------
8,364
Electrical Equipment - 1.1%
Flextronics International Ltd. ............... 125,030 3,265
Electronic Products & Services - 11.5%
Celestica, Inc. .............................. 32,995 1,699
Cree, Inc. * ................................. 387,525 10,132
Integrated Device Technology, Inc. * ......... 252,640 8,006
Intersil Holding Corp. * ..................... 176,175 6,413
Semtech Corp. * .............................. 104,415 3,132
Vitesse Semiconductor Corp. * ................ 259,070 5,451
--------
34,833
Financial Services - 4.0%
Paychex, Inc. ................................ 299,393 11,978
Health Care Products - 22.2%
Abgenix, Inc. * .............................. 143,710 6,467
Andrx Corp. * ................................ 86,855 6,688
Cardinal Health, Inc. ........................ 56,392 3,891
CuraGen Corp. * .............................. 150,995 5,496
Enzon, Inc. .................................. 88,360 5,522
Human Genome Sciences, Inc. * ................ 88,300 5,320
Laboratory Corporation of America Holdings ... 72,450 5,571
McKesson HBOC, Inc. .......................... 101,680 3,774
Medarex, Inc. * .............................. 238,320 5,601
Millennium Pharmaceuticals, Inc. * ........... 160,790 5,721
OSI Pharmaceuticals, Inc. .................... 106,155 5,583
Priority Healthcare Corp. - Cl B ............. 68,125 1,927
Sepracor, Inc. * ............................. 138,080 5,494
--------
67,055
Health Care Services - 3.9%
Community Health Systems, Inc. ............... 100,310 2,959
Manor Care, Inc. ............................. 101,915 3,236
Quest Diagnostics, Inc. ...................... 76,305 5,711
--------
11,906
Media - TV & Radio - 6.0%
Charter Communications, Inc. - Cl. A ......... 451,835 10,550
Cox Radio, Inc. - Cl. A * .................... 101,080 2,815
Entercom Communications Corp. * .............. 53,380 2,862
Hispanic Broadcasting Corp. * ................ 68,100 1,954
--------
18,181
Oil & Natural Gas Exploration & Production - 5.6%
EOG Resources, Inc. .......................... 72,910 2,592
Kinder Morgan, Inc. .......................... 211,335 10,620
NRG Energy, Inc. ............................. 53,275 1,176
Valero Energy Corp. .......................... 72,335 2,660
--------
17,048
Oil - Equipment & Service - 4.1%
Hanover Compressor Co. * ..................... 265,055 8,771
Universal Compression Holdings * ............. 127,510 3,621
--------
12,392
Retail - Department Stores - 1.4%
eBay, Inc. ................................... 61,590 4,218
Retail - Drug Stores - 1.2%
Walgreen Co. ................................. 103,115 3,521
Telecommunication Equipment - 8.0%
American Tower Corp. - Cl. A ................. 480,275 9,927
SBA Communications Corp. ..................... 172,680 4,274
Sonus Networks, Inc. ......................... 289,590 6,765
TriQuint Semiconductor, Inc. ................. 143,640 3,232
--------
24,198
Telecommunication Services - 7.3%
Crown Castle International Corp. * ........... 565,955 9,282
EchoStar Communications Corp. - Cl. A * ...... 100,200 3,248
Western Wireless Corp. - Cl. A * ............. 221,470 9,523
--------
22,053
Transportation Services - 2.4%
C.H. Robinson Worldwide, Inc. ................ 3,060 86
Expeditors International of
Washington, Inc. ............................ 24,570 1,474
Ryanair Holdings PLC - ADR ................... 110,760 5,754
--------
7,314
--------
TOTAL COMMON STOCK- 97.1% 293,785
--------
118
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
MID CAP GROWTH FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
SHORT-TERM INVESTMENTS
Commercial Paper - 2.8%
CIT Group Holdings, Inc.
4.14% due 07/02/01 .......................... $ 8,398 $ 8,398
Shares
Cash Equivalents - 4.0%
Navigator Securities Lending Prime
Portfolio ** 12,189,354 12,189
----------- ------------
TOTAL SHORT-TERM INVESTMENTS 6.8% 20,587
----------- ------------
TOTAL INVESTMENTS- 103.9% 314,372
Other Assets & Liabilities, Net- (3.9)% (11,825)
----------- ------------
NET ASSETS- 100.0% $ 302,547
=========== ============
ADR-American Depository Receipts
* Non-income producing security.
** Represents investment of security lending collateral.
See notes to financial statements.
119
SCHEDULE OF INVESTMENTS
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
MID CAP BLEND FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Auto & Truck Parts - 2.6%
Johnson Controls, Inc. ....................... 3,200 $ 232
Lear Corp. ................................... 3,400 119
Visteon Corp. ................................ 13,300 244
------
595
Bank - 6.7%
Charter One Financial, Inc. .................. 7,300 233
M&T Bank Corp. ............................... 2,100 158
National Commerce Financial Corp. ............ 10,500 256
SouthTrust Corp. ............................. 12,000 312
Synovus Financial Corp. ...................... 7,700 242
TCF Financial Corp. .......................... 6,700 310
------
1,511
Chemical - 3.8%
Air Products & Chemicals, Inc. ............... 6,000 275
Ashland, Inc. ................................ 2,800 112
Eastman Chemical Co. ......................... 2,100 100
Praxair, Inc. ................................ 6,300 296
Rohm & Haas Co. .............................. 2,300 76
------
859
Commercial Services - 2.9%
Avery Dennison Corp. ......................... 3,900 199
Concord EFS, Inc. ............................ 5,700 297
Ecolab, Inc. ................................. 2,000 82
Sybase, Inc. ................................. 4,100 67
------
645
Computer Equipment - 3.5%
Advanced Micro Devices, Inc. ................. 4,900 141
Apple Computer, Inc. ......................... 6,500 151
Lexmark International Group, Inc. - Cl. A .... 7,402 498
------
790
Computer Software & Services - 5.9%
Adobe Systems, Inc. .......................... 1,300 61
BMC Software, Inc. ........................... 3,000 68
Cadence Design Systems, Inc. ................. 8,100 151
Citrix Systems, Inc. ......................... 3,600 126
Fiserv, Inc. ................................. 1,800 115
Intuit, Inc. ................................. 3,500 140
NCR Corp. .................................... 4,600 216
SunGard Data Systems, Inc. ................... 9,900 297
Synopsys, Inc. ............................... 3,100 150
------
1,324
Consumer Miscellaneous - 2.2%
Black & Decker Corp. ......................... 7,500 296
Parker-Hannifin Corp. ........................ 5,000 212
------
508
Cosmetic & Personal Care - 1.2%
Avon Products, Inc. .......................... 5,700 264
Diversified Operations - 2.6%
Danaher Corp. ................................ 5,700 319
ITT Industries, Inc. ......................... 2,500 111
Pall Corp. ................................... 4,800 113
Reynolds & Reynolds Co. - Cl. A .............. 2,300 50
------
593
Electric Power - 10.1%
Allegheny Energy, Inc. ....................... 12,800 618
Calpine Corp. ................................ 2,400 91
Energy East Corp. ............................ 15,700 328
Exelon Corp. ................................. 4,600 295
Mirant Corp. ................................. 9,900 340
UtiliCorp United, Inc. ....................... 19,700 602
------
2,274
Electrical Equipment - 0.7%
Cooper Industries, Inc. ...................... 3,900 154
Electronic Products & Services - 5.1%
Applera Corporation - Applied Biosystems
Group ....................................... 6,500 174
Atmel Corp. .................................. 8,400 113
LSI Logic Corp. .............................. 5,400 102
Maxim Integrated Products, Inc. .............. 1,100 49
Novellus Systems, Inc. ....................... 2,500 142
QLogic Corp. ................................. 1,200 77
Rockwell International Corp. ................. 4,300 164
Tektronix, Inc. .............................. 5,200 141
Teradyne, Inc. ............................... 2,700 89
Waters Corp. ................................. 3,300 91
------
1,142
Financial Services - 2.3%
First Tennessee National Corp. ............... 5,800 201
Stillwell Financial, Inc. .................... 9,700 326
------
527
Food, Beverage & Tobacco - 3.0%
Archer Daniels Midland Co. ................... 29,047 378
Hormel Foods Corp. ........................... 3,700 90
UST, Inc. .................................... 7,500 216
------
684
Health Care Products - 4.7%
Allergan, Inc. ............................... 3,500 299
Cephalon, Inc. ............................... 2,500 176
Invitrogen Corp. ............................. 2,700 194
King Pharmaceuticals, Inc. ................... 2,800 151
Laboratory Corporation of America Holdings ... 1,900 146
Millipore Corp. .............................. 1,600 99
------
1,065
Health Care Services - 4.5%
Lincare Holdings, Inc. ....................... 10,200 306
120
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
MID CAP BLEND FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Health Care Services - Continued
St. Jude Medical, Inc. ....................... 1,100 $ 66
Trigon Healthcare, Inc. ...................... 9,271 601
Universal Health Services, Inc. - Cl. B ...... 900 41
-------
1,014
Housing - 1.5%
Centex Corp. ................................. 8,100 330
Insurance - 7.2%
Everest Re Group, Ltd. ....................... 1,000 75
Hartford Financial Services Group, Inc. ...... 2,000 137
Lincoln National Corp. ....................... 7,800 403
PartnerRe, Ltd. .............................. 3,100 172
St. Paul Cos., Inc. .......................... 7,700 390
Torchmark, Inc. .............................. 5,900 237
XL Capital, Ltd. - Cl. A ..................... 2,700 222
-------
1,636
Leisure & Recreation - 2.0%
Mattel, Inc. ................................. 7,000 133
Sabre Group Holdings, Inc. ................... 6,600 330
-------
463
Media - Publishing - 0.9%
Knight-Ridder, Inc. .......................... 2,100 125
New York Times Co. - Cl. A ................... 1,700 71
-------
196
Media - TV & Radio - 1.0%
Westwood One, Inc. ........................... 5,900 217
Metals & Mining - 0.5%
Alcan Aluminum, Ltd. ......................... 2,600 109
Oil - 0.7%
Conoco, Inc. - Cl. A ......................... 5,300 150
Oil & Natural Gas Exploration & Production - 4.8%
Amerada Hess Corp. ........................... 2,900 234
Apache Corp. ................................. 1,800 91
Noble Drilling Corp. ......................... 5,000 164
Sempra Energy ................................ 4,000 110
Sunoco, Inc. ................................. 4,400 161
USX-Marathon Group ........................... 11,100 328
-------
1,088
Oil - Equipment & Service - 2.1%
BJ Services Co. .............................. 16,700 474
Paper & Forest Products - 1.1%
Abitibi-Consolidated, Inc. ................... 18,800 144
Westvaco Corp. ............................... 4,800 116
-------
260
Precious Metals/Gems/Stones - 0.3%
Freeport-McMoRan Copper & Gold, Inc. - Cl. B . 6,500 72
Retail - Department Stores - 5.3%
Abercrombie & Fitch Co. ...................... 3,400 $ 151
Bed Bath & Beyond, Inc. ...................... 11,200 350
BJ's Wholesale Club, Inc. .................... 900 48
Family Dollar Stores, Inc. ................... 6,100 156
J.C. Penney Co., Inc. ........................ 1,700 45
Kohl's Corp. ................................. 700 44
TJX Cos., Inc. ............................... 7,500 239
Toys "R" Us, Inc. ............................ 6,800 168
-------
1,201
Retail - Food - 1.6%
Brinker International, Inc. .................. 3,300 85
Darden Restaurants, Inc. ..................... 2,300 64
Starbucks Corp. .............................. 6,000 138
Wendy's International, Inc. .................. 2,800 72
-------
359
Shoe & Apparel Manufacturing - 0.8%
Nike, Inc. - Cl. B ........................... 2,500 105
V.F. Corp. ................................... 1,900 69
-------
174
Steel - 0.6%
Nucor Corp. .................................. 2,800 137
Telecommunication Equipment - 0.6%
Comverse Technology, Inc. .................... 1,200 69
Linear Technology Corp. ...................... 1,700 75
-------
144
Telecommunication Services - 1.9%
Broadwing, Inc. .............................. 11,700 286
EchoStar Communications Corp. - Cl. A ........ 4,700 153
-------
439
Telephone - 1.1%
Telephone and Data Systems, Inc. ............. 2,300 250
Transportation Services - 3.8%
AMR Corp. .................................... 2,400 87
Canadian Pacific, Ltd. ....................... 3,100 120
CSX Corp. .................................... 5,700 207
Norfolk Southern Corp. ....................... 9,900 205
Northwest Airlines Corp. ..................... 2,700 68
Southwest Airlines Co. ....................... 9,100 168
-------
855
-------
TOTAL COMMON STOCK- 99.6% 22,503
------
121
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
MID CAP BLEND FUND
Par Market
Value Value
(000's) (000's)
SHORT-TERM INVESTMENTS - 0.0%
Investment in joint trading account
3.97% due 07/02/01 .......................... $ 5 $ 5
------- -------
TOTAL INVESTMENTS- 99.6% 22,508
Other Assets & Liabilities, Net- 0.4% 91
------- -------
NET ASSETS- 100.0% $22,599
======= =======
See notes to financial statements.
122
SCHEDULE OF INVESTMENTS
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
LARGE CAP VALUE FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Aerospace & Defense - 3.1%
Honeywell International, Inc. ................ 83,500 $ 2,922
Lockheed Martin Corp. ........................ 111,000 4,112
-------
7,034
Auto & Truck Parts - 1.1%
Dana Corp. ................................... 7,400 173
Genuine Parts Co. ............................ 59,200 1,865
TRW, Inc. .................................... 10,400 426
-------
2,464
Automobile - 0.5%
Ford Motor Co. ............................... 47,500 1,166
Bank - 9.7%
Bank of America Corp. ........................ 37,200 2,233
Bank One Corp. ............................... 75,100 2,689
FleetBoston Financial Corp. .................. 87,972 3,471
JP Morgan Chase & Co. ........................ 63,230 2,820
Mellon Financial Corp. ....................... 108,400 4,986
Mercantile Bankshares Corp. .................. 34,900 1,366
National City Corp. .......................... 44,100 1,357
US Bancorp ................................... 43,700 996
Wells Fargo & Co. ............................ 40,900 1,899
-------
21,817
Business Services - 1.0%
Dun & Bradstreet Corp. ....................... 23,500 663
H&R Block, Inc. .............................. 23,400 1,510
-------
2,173
Chemical - 3.1%
Dow Chemical Co. ............................. 46,500 1,546
E.I. du Pont de Nemours & Co. ................ 63,700 3,073
Great Lakes Chemical Corp. ................... 47,000 1,450
Hercules, Inc. ............................... 71,700 810
-------
6,879
Commercial Services - 1.3%
R.R. Donnelley & Sons Co. .................... 50,100 1,488
The Dun & Bradstreet Corp. * ................. 46,100 1,544
-------
3,032
Computer Equipment - 1.8%
Compaq Computer Corp. ........................ 54,600 845
Hewlett-Packard Co. .......................... 58,000 1,659
Intel Corp. .................................. 33,400 977
Xerox Corp. .................................. 63,000 603
-------
4,084
Computer Software & Services - 1.2%
BMC Software, Inc.* .......................... 3,000 68
Microsoft Corp. .............................. 28,500 2,080
Unisys Corp. * ............................... 38,600 568
-------
2,716
Construction - 0.8%
Armstrong Holdings, Inc. ..................... 18,400 $ 65
Stanley Works ................................ 41,700 1,747
-------
1,812
Consumer Miscellaneous - 2.0%
Black & Decker Corp. ......................... 17,700 698
Clorox Co. ................................... 38,400 1,300
Fortune Brands, Inc. ......................... 57,500 2,206
Newell Rubbermaid, Inc. ...................... 8,000 201
-------
4,405
Cosmetic & Personal Care - 2.7%
Gillette Co. ................................. 82,500 2,392
International Flavors & Fragrances, Inc ...... 59,300 1,490
Procter & Gamble Co. ......................... 32,800 2,092
-------
5,974
Diversified Operations - 1.7%
Corning, Inc. ................................ 38,900 650
Eaton Corp. .................................. 16,300 1,143
Pall Corp. ................................... 85,100 2,002
-------
3,795
Electric Power - 3.0%
Duke Energy Co. .............................. 25,200 983
Exelon Corp. ................................. 36,375 2,332
Firstenergy Corp. ............................ 38,800 1,248
Mirant Corp. ................................. 3,902 134
Niagara Mohawk Holdings, Inc. ................ 39,100 692
Southern Co. ................................. 60,900 1,416
-------
6,805
Electrical Equipment - 0.3%
Cooper Industries, Inc. ...................... 17,000 673
Electronic Products & Services - 3.5%
Agere Systems, Inc. - Cl. A .................. 137,700 1,033
Axcelis Technologies, Inc. ................... 3,800 56
Hubbell, Inc. - Cl. B ........................ 54,100 1,569
Motorola, Inc. ............................... 94,400 1,563
Rockwell International Corp. ................. 55,600 2,119
Texas Instruments, Inc. ...................... 48,500 1,528
-------
7,868
Food, Beverage & Tobacco - 7.3%
Brown-Forman Corp. - Cl. B ................... 28,000 1,790
Campbell Soup Co. ............................ 52,300 1,347
General Mills, Inc. .......................... 51,200 2,241
H.J. Heinz Co. ............................... 38,100 1,558
Hershey Foods Corp. .......................... 46,000 2,839
Kellogg Co. .................................. 33,900 983
McCormick & Co., Inc. ........................ 32,600 1,370
Philip Morris Cos., Inc. ..................... 45,200 2,294
UST, Inc. .................................... 72,100 2,081
-------
16,503
123
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
LARGE CAP VALUE FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Health Care Products - 5.3%
Abbott Laboratories .......................... 46,600 $ 2,237
American Home Products Corp. ................. 63,500 3,711
Becton, Dickinson & Co. ...................... 41,200 1,475
Bristol-Myers Squibb Co. ..................... 38,300 2,003
Pharmacia Corp. .............................. 14,675 674
Schering-Plough Corp. ........................ 47,600 1,725
-------
11,825
Insurance - 6.4%
American General Corp. ....................... 69,300 3,219
Aon Corp. .................................... 36,000 1,260
Chubb Corp. .................................. 33,700 2,610
Lincoln National Corp. ....................... 31,800 1,646
Safeco Corp. ................................. 53,700 1,584
St. Paul Cos., Inc. .......................... 28,652 1,452
UnumProvident Corp. .......................... 82,700 2,656
-------
14,427
Leisure & Recreation - 3.4%
Eastman Kodak Co. ............................ 47,400 2,213
Hasbro, Inc. ................................. 103,900 1,501
Hilton Hotels Corp. .......................... 113,200 1,313
Starwood Hotels & Resorts Worldwide, Inc. .... 67,300 2,509
-------
7,536
Media - Publishing - 1.9%
Dow Jones & Co., Inc. ........................ 26,100 1,558
Knight-Ridder, Inc. .......................... 39,300 2,331
Readers Digest Association, Inc. - Cl. A ..... 16,500 474
-------
4,363
Media - TV & Radio - 1.0%
The Walt Disney Co. .......................... 78,700 2,274
Metals & Mining - 1.7%
Minnesota Mining & Manufacturing Co. ......... 27,400 3,126
Phelps Dodge Corp. ........................... 17,100 710
-------
3,836
Oil - 1.7%
Baker Hughes, Inc. ........................... 37,100 1,243
Royal Dutch Petroleum Co. - NY Shares ........ 44,500 2,593
-------
3,836
Oil & Natural Gas Exploration & Production - 9.8%
Amerada Hess Corp. ........................... 26,000 2,101
BP Amoco PLC - ADR ........................... 82,332 4,104
Chevron Corp. ................................ 34,400 3,113
Exxon Mobil Corp. ............................ 64,267 5,614
Texaco, Inc. ................................. 53,400 3,556
Unocal Corp. ................................. 66,400 2,268
USX-Marathon Group ........................... 42,500 1,254
-------
22,010
Paper & Forest Products - 2.4%
International Paper Co. ...................... 87,170 3,112
Kimberly-Clark Corp. ......................... 28,800 1,610
Mead Corp. ................................... 23,100 627
-------
5,349
Personal & Commercial Lending - 1.2%
Citigroup, Inc. .............................. 51,566 2,725
Pollution Control - 1.4%
Waste Management, Inc. ....................... 101,290 3,122
Real Estate Investment Trust - 0.9%
Simon Property Group, Inc. ................... 64,700 1,939
Real Estate Operations - 0.5%
Rouse Co. .................................... 42,300 1,212
Retail - Department Stores - 2.4%
J.C. Penney Co., Inc. ........................ 28,000 738
May Department Stores Co. .................... 57,650 1,975
Toys "R" Us, Inc. * ......................... 108,500 2,686
-------
5,399
Retail - Food - 1.1%
Albertson's, Inc. ............................ 15,400 462
McDonald's Corp. ............................. 72,200 1,954
-------
2,416
Telecommunication Equipment - 0.1%
Lucent Technologies, Inc. .................... 46,900 291
Telecommunication Services - 1.6%
Verizon Communications ....................... 68,716 3,676
Telephone - 4.9%
Alltel Corp. ................................. 45,300 2,775
AT&T Corp. ................................... 77,400 1,703
BellSouth Corp. .............................. 52,500 2,114
SBC Communications, Inc. ..................... 73,355 2,939
Sprint Corp. ................................. 71,500 1,527
-------
11,058
Transportation Services - 2.6%
Norfolk Southern Corp. ....................... 81,900 1,695
Union Pacific Corp. .......................... 74,300 4,080
-------
5,775
U.S. Government Agencies - 1.6%
Federal National Mortgage Assoc .............. 41,400 3,525
-------
TOTAL COMMON STOCK- 96.0% 215,794
-------
124
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
LARGE CAP VALUE FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
SHORT-TERM INVESTMENTS
Investment in joint trading account - 3.8%
Investment in joint trading account
3.97% due 07/02/01 ........................... $ 8,673 $ 8,673
Shares
Cash Equvalents - 2.6%
Navigator Securities Lending Prime
Portfolio ** 5,765,047 5,765
---------- --------
TOTAL SHORT-TERM INVESTMENTS 6.4% 14,438
---------- --------
TOTAL INVESTMENTS- 102.4% 230,232
Other Assets & Liabilities, Net- (2.4)% (5,506)
---------- --------
NET ASSETS- 100.0% $224,726
========== ========
ADR-American Depository Receipts
* Non-income producing security.
** Represents investment of security lending collateral.
See notes to financial statements.
125
SCHEDULE OF INVESTMENTS
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
LARGE CAP VALUE CORE FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Aerospace & Defense - 2.4%
Boeing Co. ................................... 2,110 $ 117
General Dynamics Corp ........................ 4,130 321
Honeywell International, Inc. ................ 4,450 156
Lockheed Martin Corp. ........................ 7,370 273
Raytheon Co. ................................. 790 21
United Technologies Corp ..................... 2,040 150
------
1,038
Auto & Truck Parts - 0.8%
Goodyear Tire & Rubber Co. ................... 870 24
Johnson Controls, Inc ........................ 4,260 309
Visteon Corp. ................................ 100 2
------
335
Automobile - 1.3%
Ford Motor Co. ............................... 4,280 105
General Motors Corp. ......................... 7,110 458
General Motors Corp. - Cl. H ................. 1,400 28
------
591
Bank - 10.6%
Bank of America Corp. ........................ 13,780 827
Bank of New York Co., Inc. ................... 7,040 338
Bank One Corp. ............................... 4,110 147
BB&T, Corp. .................................. 3,150 116
Comerica, Inc. ............................... 2,200 127
Fifth Third Bancorp .......................... 1,980 119
FleetBoston Financial Corp ................... 6,270 247
Hudson City Bancorp, Inc ..................... 3,120 72
Investors Financial Services Corp. ........... 1,740 117
JP Morgan Chase & Co. ........................ 6,020 268
M&T Bank Corp. ............................... 3,480 263
Mellon Financial Corp ........................ 3,610 166
National City Corp. .......................... 3,180 98
Northern Trust Corp. ......................... 2,110 132
PNC Bank Corp. ............................... 4,070 268
Popular, Inc. ................................ 610 20
Regions Financial Corp ....................... 1,140 36
SouthTrust Corp. ............................. 530 14
State Street Corp. ........................... 100 5
Suntrust Banks, Inc. ......................... 6,300 408
TCF Financial Corp. .......................... 700 32
US Bancorp ................................... 3,260 74
Washington Mutual, Inc ....................... 11,420 429
Wells Fargo & Co. ............................ 7,070 328
Zions Bancorp ................................ 440 26
------
4,677
Brokerage & Investment Management - 0.4%
Morgan Stanley, Dean Witter,
Discover & Co. .......................... 2,800 180
Building Materials - 0.1%
Monsanto Co. ................................. 910 34
Business Services - 0.1%
Express Scripts, Inc. - Cl. A * .............. 540 30
Chemical - 1.6%
Ashland, Inc. ................................ 5,090 204
Cabot Corp. .................................. 790 29
Dow Chemical Co. ............................. 4,540 151
Engelhard Corp. .............................. 2,380 61
Sigma-Aldrich Corp. .......................... 6,210 240
------
685
Coal - 0.0%
Arch Coal, Inc. .............................. 100 3
Commercial Services - 1.0%
Apollo Group, Inc. - Cl. A .................. 2,090 89
Avery Dennison Corp. ......................... 610 31
Cendant Corp. * .............................. 440 8
Ecolab, Inc. ................................. 2,630 108
Omnicom Group, Inc. .......................... 2,500 215
------
451
Computer Equipment - 1.6%
Dell Computer Corp. .......................... 100 3
EMC Corp. .................................... 520 15
Hewlett-Packard Co. .......................... 2,300 66
International Business Machines Corp. ........ 5,180 585
Tech Data Corp. * ............................ 700 23
Xerox Corp. .................................. 200 2
------
694
Computer Software & Services - 1.9%
3Com Corp.* .................................. 610 3
Affiliated Computer Services, Inc.
- Cl. A * .................................... 3,460 249
At Home Corp. - Ser A ........................ 610 1
EarthLink, Inc. .............................. 100 2
Electronic Data Systems Corp. ................ 1,300 81
First Data Corp. ............................. 2,960 190
Intuit, Inc. * ............................... 350 14
Pixar, Inc. .................................. 1,400 57
Progressive Corp. ............................ 1,830 247
------
844
Consumer Miscellaneous - 0.5%
Harley-Davidson, Inc. ........................ 2,510 118
Ingram Micro, Inc. - Cl. A * ................. 3,860 56
Sherwin-Williams Co. ......................... 2,410 54
------
228
Cosmetic & Personal Care - 3.4%
Alberto-Culver Co. - Cl. B ................... 1,580 66
Avon Products, Inc. .......................... 3,190 148
Colgate-Palmolive Co. ........................ 5,310 313
Estee Lauder Cos., Inc. - Cl. A .............. 1,310 57
Procter & Gamble Co. ......................... 13,310 849
126
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
LARGE CAP VALUE CORE FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Cosmetic & Personal Care - Continued
Unilever NV - NY Shares ...................... 700 $ 42
------
1,475
Diversified Operations - 1.1%
Danaher Corp. ................................ 1,050 59
General Electric Co. ......................... 2,460 120
ITT Industries, Inc. ......................... 610 27
Tyco International, Ltd ...................... 4,330 236
W.W. Grainger, Inc. .......................... 1,500 61
------
503
Electric Power - 2.8%
Consolidated Edison, Inc ..................... 270 11
Dominion Resources, Inc ...................... 1,150 69
Emerson Electric Co. ......................... 960 58
Energy East Corp. ............................ 1,400 29
Entergy Corp. ................................ 3,430 132
Exelon Corp. ................................. 1,180 76
Firstenergy Corp. ............................ 440 14
Mirant Corp.* ................................ 3,550 122
PG&E Corp. ................................... 2,980 33
PPL Corp. .................................... 2,090 115
Reliant Energy, Inc. ......................... 6,410 207
TXU Corp. .................................... 1,310 63
UtiliCorp United, Inc ........................ 10,180 311
------
1,240
Electronic Products & Services - 0.8%
Agilent Technologies, Inc .................... 100 3
Avnet, Inc. .................................. 700 16
AVX Corp. .................................... 1,050 22
Ball Corp. ................................... 1,940 92
KLA-Tencor Corp. ............................. 700 41
Motorola, Inc. ............................... 300 5
PerkinElmer, Inc. ............................ 940 26
Sanmina Corp. * ............................. 3,390 79
Solectron Corp. * ........................... 3,800 70
------
354
Energy - Alternative Source - 0.7%
Dynegy, Inc. - Cl.A .......................... 4,550 211
Massey Energy Co. ............................ 5,860 116
------
327
Financial Services - 3.6%
American Express Co. ......................... 960 37
CNA Financial Corp. * ........................ 8,390 331
Federated Investments, Inc. - Cl. B .......... 790 25
Heller Financial, Inc ........................ 5,970 239
Internet Capital Group, Inc. * ............... 350 1
Lehman Brothers Holdings, Inc. ............... 5,530 430
Merrill Lynch & Co., Inc. .................... 5,850 347
SEI Investments Co. .......................... 1,920 91
Wesco Financial Corp. ........................ 200 69
------
1,570
Food, Beverage & Tobacco - 3.9%
IBP, Inc. .................................... 260 7
Pepsi Bottling Group, Inc .................... 1,760 71
PepsiCo, Inc. ................................ 4,110 182
Philip Morris Cos., Inc ...................... 10,980 557
Quaker Oats Co. .............................. 350 32
R.J. Reynolds Tobacco Holdings, Inc. * ...... 3,150 172
Ralston-Ralston Purina Group ................. 2,520 76
Sara Lee Corp. ............................... 6,820 129
Smithfield Foods, Inc. ....................... 3,260 131
Sysco Corp. .................................. 11,910 323
Tyson Foods, Inc. - Cl. A .................... 960 9
UST, Inc. .................................... 1,160 33
------
1,722
Health Care Products - 7.6%
Abbott Laboratories .......................... 7,340 353
American Home Products Corp. ................. 7,670 448
Baxter International, Inc. ................... 2,280 112
Bristol-Myers Squibb Co. ..................... 2,090 109
Cardinal Health, Inc. ........................ 5,510 380
Eli Lilly & Co. .............................. 1,900 141
Johnson & Johnson ............................ 13,200 660
McKesson HBOC, Inc. .......................... 10,920 405
Medtronic, Inc. .............................. 1,400 65
Merck & Co., Inc. ............................ 4,370 279
Patterson Dental Co. * ....................... 960 29
UnitedHealth Group, Inc. ..................... 5,480 338
------
3,319
Health Care Services - 0.3%
AmeriSource Health Corp. - Cl. A * ........... 1,100 61
Caremark Rx, Inc. ............................ 3,020 50
PacifiCare Health Systems, Inc. * ............ 1,490 24
WebMD Corp. * ................................ 270 2
------
137
Housing - 0.3%
Pulte Corp. .................................. 2,630 112
Insurance - 4.9%
Allstate Corp. ............................... 5,230 230
American General Corp. ....................... 2,280 106
American International Group, Inc. ........... 10,960 942
Cigna Corp. .................................. 910 87
Everest Re Group, Ltd. ....................... 610 46
Hartford Financial Services Group, Inc. ...... 790 54
Metlife, Inc. ................................ 9,610 298
Nationwide Financial Services - Cl. A ........ 7,440 325
The MONY Group, Inc. ......................... 1,170 47
------
2,135
127
SCHEDULE OF INVESTMENTS
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
LARGE CAP VALUE CORE FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Leisure & Recreation - 1.7%
Blockbuster, Inc. - Cl. A .................... 1,330 $ 24
Brunswick Corp. .............................. 1,460 35
International Game Technology ................ 4,450 279
Loews Corp. .................................. 6,060 391
Sabre Group Holdings, Inc. * ................ 690 35
------
764
Machinery - 0.1%
Dover Corp. .................................. 100 4
Thermo Electron Corp. * ...................... 1,850 41
------
45
Media - Publishing - 0.4%
McClatchy Newspapers, Inc. - Cl. A ........... 750 29
New York Times Co. - Cl. A ................... 700 29
Tribune Co. .................................. 3,150 127
------
185
Media - TV / Radio - 2.2%
AOL Time Warner, Inc. * ...................... 1,910 101
BHC Communications, Inc. - Cl. A * ........... 310 43
Charter Communications, Inc. - Cl. A * ....... 2,250 52
Comcast Corp. - Cl. A ........................ 3,320 144
Fox Entertainment Group, Inc. - Cl. A * ...... 1,400 39
The Walt Disney Co. .......................... 7,890 228
USA Networks, Inc.* .......................... 270 8
Viacom, Inc. - Cl. B * ....................... 7,030 364
------
979
Metals & Mining - 1.8%
Alcan Aluminum, Ltd. ......................... 700 29
Alcoa, Inc. .................................. 2,640 104
Inco, Ltd. ................................... 2,550 44
Minnesota Mining & Manufacturing Co. ......... 5,350 611
------
788
Natural Gas Distribution - 0.4%
Enron Corp. .................................. 440 21
KeySpan Corp. ................................ 2,380 87
Nicor, Inc. .................................. 1,310 51
------
159
Oil - 0.4%
ONEOK, Inc. .................................. 7,180 141
Tosco Corp. .................................. 610 27
------
168
Oil & Natural Gas Exploration & Production - 9.4%
Amerada Hess Corp. ........................... 1,490 120
Chevron Corp. ................................ 6,010 544
Conoco, Inc. - Cl. B ......................... 9,780 283
Exxon Mobil Corp. ............................ 26,370 2,303
Helmerich & Payne, Inc. ...................... 1,490 46
Kerr-McGee Corp. ............................. 1,050 69
Occidental Petroleum Corp. ................... 6,380 170
Phillips Petroleum Co. ....................... 3,670 209
Sunoco, Inc. ................................. 890 33
Texaco, Inc. ................................. 3,450 230
Ultramar Diamond Shamrock Corp. .............. 420 20
USX-Marathon Group ........................... 3,500 103
------
4,130
Oil - Equipment & Service - 0.0%
BJ Services Co. * ........................... 540 15
Paper & Forest Products - 0.3%
Boise Cascade Corp. .......................... 100 4
Georgia-Pacific Corp. ........................ 200 7
International Paper Co. ...................... 700 25
Kimberly-Clark Corp. ......................... 1,420 79
Weyerhaeuser Co. ............................. 440 24
------
139
Personal & Commercial Lending - 5.3%
Citigroup, Inc. .............................. 36,670 1,938
Countrywide Credit Industries, Inc. .......... 8,430 387
MBNA Corp. ................................... 610 20
------
2,345
Pollution Control - 1.0%
Republic Services, Inc. - Cl. A .............. 2,460 49
Waste Management, Inc. ....................... 12,530 386
------
435
Real Estate Development - 0.3%
Lennar Corp. ................................. 3,410 142
Real Estate Investment Trust - 1.1%
Archstone Communities Trust .................. 960 25
Avalonbay Communities, Inc. .................. 2,300 108
Equity Office Properties Trust ............... 4,150 131
Equity Residential Properties Trust .......... 3,240 183
Marriott International, Inc. - Cl. A ......... 540 26
Simon Property Group, Inc. ................... 440 13
------
486
Retail - Department Stores - 2.2%
BJ's Wholesale Club, Inc. .................... 6,850 365
Dillard's, Inc. - Cl. A ...................... 2,670 41
Federated Department Stores, Inc. * ......... 520 22
Kohl's Corp. ................................. 960 60
Payless ShoeSource, Inc. * .................. 2,560 166
Sears, Roebuck & Co. ......................... 2,550 108
Target Corp. ................................. 4,200 145
Wal-Mart Stores, Inc. ........................ 1,050 51
------
958
128
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
LARGE CAP VALUE CORE FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Retail - Drug Stores - 0.9%
CVS Corp. .................................... 5,450 $ 210
Walgreen Co. ................................. 5,190 177
------
387
Retail - Food - 0.2%
Brinker International, Inc. * ............... 1,250 32
Darden Restaurants, Inc. ..................... 810 23
Safeway, Inc. * ............................. 690 33
------
88
Shoe & Apparel Manufacturing - 0.2%
Liz Claiborne, Inc. .......................... 440 22
Nike, Inc. - Cl. B ........................... 440 18
Reebok International, Ltd. ................... 1,580 51
------
91
Telecommunication Equipment - 0.7%
Comverse Technology, Inc. .................... 700 40
Covad Communications Group, Inc. * ........... 80
L-3 Communications Holdings, Corp. * ........ 1,050 80
Linear Technology Corp. ...................... 1,400 62
Lucent Technologies, Inc. .................... 300 2
Micron Technology, Inc. ...................... 1,500 62
Nortel Networks Corp. ........................ 120 1
Scientific-Atlanta, Inc. ..................... 1,360 55
Tellabs, Inc. * ............................. 790 15
------
317
Telecommunication Services - 4.1%
BCE, Inc. .................................... 3,250 85
Cox Communications, Inc. - Cl. A ............. 6,780 300
United States Cellular Corp. * .............. 1,320 76
Verizon Communications ....................... 23,650 1,265
WorldCom, Inc. * ............................. 5,921 85
XO Communications, Inc. ...................... 440 1
------
1,812
Telephone - 6.2%
Alltel Corp. ................................. 5,380 330
AT&T Corp. ................................... 22,430 493
AT&T Corp. - Liberty Media Group - Cl. A ..... 23,560 412
AT&T Wireless Group .......................... 6,800 111
BellSouth Corp. .............................. 7,510 302
Constellation Energy Group ................... 100 4
Level 3 Communications, Inc. * ............... 270 1
Qwest Communications International , Inc. .... 3,910 125
SBC Communications, Inc. ..................... 16,740 671
Telephone and Data Systems, Inc. ............. 2,360 257
------
2,706
Transportation Services - 1.3%
Burlington Northern Santa Fe Corp. ........... 610 18
Canadian National Railway Co. ................ 3,410 138
CSX Corp. .................................... 3,410 124
Expeditors International of Washington,
Inc. ........................................ 1,640 98
Southwest Airlines Co. ....................... 1,180 22
UAL Corp. .................................... 2,580 91
Union Pacific Corp. .......................... 800 44
United Parcel Service, Inc. - Cl. B * ........ 990 57
------
592
U.S. Government Agencies - 2.8%
Federal Home Loan Mortgage Corp. ............. 5,920 414
Federal National Mortgage Assoc. ............. 9,850 839
------
1,253
------
TOTAL COMMON STOCK- ........................ 94.7% 41,668
------
Par
Value
(000's)
SHORT-TERM INVESTMENTS - 7.3%
Investment in joint repurchase agreement
with Goldman Sachs & Co., 4.11% due
07/02/01. (Secured by various U.S.
Treasury obligations and U.S. Government
Agency Bonds) $3,200 3,200
---------- ------------
TOTAL INVESTMENTS- 102.0% 44,868
Other Assets & Liabilities, Net- (2.0)% (881)
---------- ------------
NET ASSETS- 100.0% $ 43,987
========== ============
* Non-income producing security.
See notes to financial statements.
129
SCHEDULE OF INVESTMENTS
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
LARGE CAP VALUE CORE II FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Aerospace & Defense - 2.8%
Boeing Co. ................................... 410 $ 23
General Dynamics Corp. ....................... 730 57
Honeywell International, Inc. ................ 690 24
Lockheed Martin Corp. ........................ 1,310 49
Raytheon Co. ................................. 160 4
United Technologies Corp. .................... 370 27
------
184
Auto & Truck Parts - 0.9%
Goodyear Tire & Rubber Co. ................... 180 5
Johnson Controls, Inc. ....................... 780 57
------
62
Automobile - 1.6%
Ford Motor Co. ............................... 850 21
General Motors Corp. ......................... 1,230 79
General Motors Corp. - Cl. H ................. 280 6
------
106
Bank - 12.4%
Bank of America Corp. ........................ 2,500 150
Bank of New York Co., Inc. ................... 1,240 60
Bank One Corp. ............................... 770 28
BB&T Corp .................................... 570 21
Comerica, Inc. ............................... 430 25
Fifth Third Bancorp .......................... 380 23
FleetBoston Financial Corp. .................. 1,090 43
Hudson City Bancorp, Inc. .................... 610 14
Investors Financial Services Corp. ........... 90 6
JP Morgan Chase & Co. ........................ 970 43
M&T Bank Corp. ............................... 600 45
Mellon Financial Corp. ....................... 670 31
National City Corp. .......................... 630 19
Northern Trust Corp. ......................... 410 26
PNC Bank Corp. ............................... 540 36
Popular, Inc. ................................ 130 4
Regions Financial Corp. ...................... 230 7
SouthTrust Corp. ............................. 110 3
Suntrust Banks, Inc. ......................... 1,090 70
TCF Financial Corp. .......................... 140 6
US Bancorp ................................... 640 15
Washington Mutual, Inc. ...................... 2,060 77
Wells Fargo & Co. ............................ 1,250 58
Zions Bancorp ................................ 90 5
------
815
Brokerage & Investment Management - 0.5%
Morgan Stanley, Dean Witter, Discover & Co. .. 530 34
Building Materials - 0.1%
Monsanto Co. ................................. 190 7
Business Services - 0.1%
Express Scripts, Inc. - Cl. A. * ............. 100 5
Chemical - 1.4%
Ashland, Inc. ................................ 420 17
Cabot Corp. .................................. 160 6
Dow Chemical Co. ............................. 860 28
Engelhard Corp. .............................. 460 12
Sigma-Aldrich Corp. .......................... 810 31
------
94
Commercial Services - 1.4%
Apollo Group, Inc. - Cl. A ................... 400 17
Avery Dennison Corp. ......................... 130 7
Cendant Corp. * .............................. 90 2
Ecolab, Inc. ................................. 520 21
Omnicom Group, Inc. .......................... 510 44
------
91
Computer Equipment - 1.2%
EMC Corp. .................................... 110 3
Hewlett-Packard Co. .......................... 430 12
International Business Machines Corp. ........ 510 58
Tech Data Corp. * ............................ 140 5
------
78
Computer Software & Services - 2.3%
3Com Corp. * ................................. 130 1
Affiliated Computer Services, Inc. - Cl. A. * 640 46
At Home Corp. - Ser. A ....................... 130
Electronic Data Systems Corp. ................ 260 16
First Data Corp. ............................. 550 35
Intuit, Inc. ................................. 70 3
Progressive Corp. ............................ 370 50
------
151
Consumer Miscellaneous - 0.4%
Harley-Davidson, Inc. ........................ 130 6
Ingram Micro, Inc. - Cl. A. * ................ 770 11
Sherwin-Williams Co. ......................... 470 11
------
28
Cosmetic & Personal Care - 3.2%
Alberto-Culver Co. - Cl. B ................... 320 13
Avon Products, Inc. .......................... 370 17
Colgate-Palmolive Co. ........................ 910 54
Estee Lauder Cos., Inc. - Cl. A .............. 270 12
Procter & Gamble Co. ......................... 1,700 109
Unilever NV - NY Shares ...................... 140 8
------
213
Diversified Operations - 1.0%
Danaher Corp. ................................ 210 12
General Electric Co. ......................... 480 23
ITT Industries, Inc. ......................... 130 6
Tyco International, Ltd. ..................... 240 13
130
SCHEDULE OF INVESTMENTS
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
LARGE CAP VALUE CORE II FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Diversified Operations - Continued
W.W. Grainger, Inc. .......................... 300 $ 12
-----
66
Electric Power - 3.0%
Consolidated Edison, Inc. .................... 50 2
Dominion Resources, Inc. ..................... 210 13
Emerson Electric Co. ......................... 200 12
Energy East Corp. ............................ 280 6
Entergy Corp. ................................ 590 23
Exelon Corp. ................................. 220 14
Firstenergy Corp. ............................ 90 3
Mirant Corp. * ............................... 140 5
PG&E Corp. ................................... 590 6
PPL Corp. .................................... 400 22
Reliant Energy, Inc. ......................... 1,110 36
TXU Corp. .................................... 270 13
UtiliCorp United, Inc. ....................... 1,480 45
-----
200
Electronic Products & Services - 0.8%
Avnet, Inc. .................................. 140 3
AVX Corp. .................................... 210 4
Ball Corp. ................................... 370 18
PerkinElmer, Inc. ............................ 200 5
Sanmina Corp. * .............................. 300 7
Solectron Corp. * ............................ 750 14
-----
51
Energy - Alternative Source - 0.6%
Dynegy, Inc. - Cl. A ......................... 430 20
Massey Energy Co. ............................ 1,050 21
-----
41
Financial Services - 3.7%
American Express Co. ......................... 200 8
CNA Financial Corp. * ........................ 1,350 53
Federated Investments, Inc. - Cl. B .......... 160 5
Heller Financial, Inc. ....................... 1,020 41
Internet Capital Group, Inc. ................. 70
Lehman Brothers Holdings, Inc. ............... 870 68
Merrill Lynch & Co., Inc. .................... 1,000 59
SEI Investments Company ...................... 250 12
-----
246
Food, Beverage & Tobacco - 4.6%
IBP, Inc. .................................... 50 1
Pepsi Bottling Group, Inc. ................... 340 14
PepsiCo, Inc. ................................ 770 34
Philip Morris Cos., Inc. ..................... 1,610 82
Quaker Oats Co. .............................. 70 6
R.J. Reynolds Tobacco Holdings, Inc. * ....... 570 31
Ralston-Ralston Purina Group ................. 780 23
Sara Lee Corp. ............................... 1,250 24
Smithfield Foods, Inc. ....................... 590 24
Sysco Corp. .................................. 2,060 56
Tyson Foods, Inc. - Cl. A .................... 200 2
UST, Inc. .................................... 240 7
-----
304
Health Care Products - 8.0%
Abbott Laboratories .......................... 1,300 63
American Home Products Corp. ................. 1,020 60
Baxter International, Inc. ................... 460 23
Bristol-Myers Squibb Co. ..................... 400 21
Cardinal Health, Inc. ........................ 890 61
Johnson & Johnson ............................ 2,480 124
McKesson HBOC, Inc. .......................... 1,190 44
Medtronic, Inc. .............................. 280 13
Merck & Co., Inc. ............................ 820 52
Patterson Dental Co. * ....................... 200 6
UnitedHealth Group, Inc. ..................... 960 59
-----
526
Health Care Services - 0.4%
AmeriSource Health Corp. - Cl. A * ........... 230 13
Caremark Rx, Inc. ............................ 600 10
PacifiCare Health Systems, Inc. * ............ 300 5
WebMD Corp. * ................................ 50
-----
28
Housing - 0.3%
Pulte Corp. .................................. 510 22
Insurance - 4.9%
Allstate Corp. ............................... 870 38
American General Corp. ....................... 460 21
American International Group, Inc. ........... 1,420 122
Cigna Corp. .................................. 190 18
Everest Re Group, Ltd. ....................... 130 10
Hartford Financial Services Group, Inc. ...... 160 11
Metlife, Inc. ................................ 1,700 53
Nationwide Financial Services - Cl. A ........ 960 42
The MONY Group, Inc. ......................... 240 10
-----
325
Leisure & Recreation - 1.9%
Blockbuster, Inc. - Cl. A .................... 270 5
Brunswick Corp. .............................. 300 7
International Game Technology ................ 830 52
Loews Corp. .................................. 840 54
Sabre Group Holdings, Inc. * ................. 140 7
-----
125
Machinery - 0.1%
Thermo Electron Corp. * ...................... 360 8
Media - Publishing - 0.5%
McClatchy Newspapers, Inc. - Cl. A ........... 150 6
New York Times Co. - Cl. A ................... 140 6
131
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
LARGE CAP VALUE CORE II FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Media - Publishing - Continued
Tribune Co. .................................. 570 $ 23
-----
35
Media - TV & Radio - 2.7%
AOL Time Warner, Inc. * ...................... 330 17
BHC Communications, Inc. - Cl. A. * .......... 90 13
Charter Communications, Inc. - Cl. A. * ...... 210 5
Comcast Corp. - Cl. A ........................ 610 26
Fox Entertainment Group, Inc. - Cl. A * ...... 280 8
The Walt Disney Co. .......................... 1,440 42
USA Networks, Inc. * ......................... 50 1
Viacom, Inc. - Cl. B. * ...................... 1,220 63
-----
175
Metals & Mining - 1.0%
Alcan Aluminum, Ltd. ......................... 140 6
Alcoa, Inc. .................................. 520 20
Inco, Ltd. ................................... 500 9
Minnesota Mining & Manufacturing Co. ......... 280 32
-----
67
Natural Gas Distribution - 0.5%
Enron Corp. .................................. 90 4
KeySpan Corp. ................................ 460 17
Nicor, Inc. .................................. 270 11
-----
32
Oil - 0.5%
ONEOK, Inc. .................................. 1,320 26
Tosco Corp. .................................. 130 6
-----
32
Oil & Natural Gas Exploration & Production - 10.1%
Amerada Hess Corp. ........................... 300 24
Chevron Corp. ................................ 620 56
Conoco, Inc. - Cl. B ......................... 1,690 49
Exxon Mobil Corp. ............................ 3,830 334
Helmerich & Payne, Inc. ...................... 300 9
Kerr-McGee Corp. ............................. 210 14
Occidental Petroleum Corp. ................... 1,160 31
Phillips Petroleum Co. ....................... 680 39
Sunoco, Inc. ................................. 160 6
Texaco, Inc. ................................. 550 37
Ultramar Diamond Shamrock Corp. .............. 1,000 47
USX-Marathon Group ........................... 640 19
-----
665
Oil - Equipment & Service - 0.0%
BJ Services Co. * ............................ 100 3
Paper & Forest Products - 0.4%
International Paper Co. ...................... 140 5
Kimberly-Clark Corp. ......................... 290 16
Weyerhaeuser Co. ............................. 90 5
-----
26
Personal & Commercial Lending - 4.3%
Citigroup, Inc. .............................. 4,440 234
Countrywide Credit Industries, Inc. .......... 1,060 49
MBNA Corp. ................................... 130 4
-----
287
Pollution Control - 1.2%
Republic Services, Inc. - Cl. A .............. 480 9
Waste Management, Inc. ....................... 2,270 70
-----
79
Real Estate Development - 0.4%
Lennar Corp. ................................. 620 26
Real Estate Investment Trust - 1.0%
Archstone Communities Trust .................. 200 5
Equity Office Properties Trust ............... 800 25
Equity Residential Properties Trust .......... 530 30
Marriott International, Inc. - Cl. A ......... 90 4
Simon Property Group, Inc. ................... 90 3
-----
67
Retail - Department Stores - 1.5%
Dillard's, Inc. - Cl. A ...................... 530 8
Federated Department Stores, Inc. * .......... 110 5
Kohl's Corp. ................................. 200 13
Payless ShoeSource, Inc. * ................... 190 12
Sears, Roebuck & Co. ......................... 500 21
Target Corp. ................................. 780 27
Wal-Mart Stores, Inc. ........................ 210 10
-----
96
Retail - Drug Stores - 1.0%
CVS Corp. .................................... 940 36
Walgreen Co. ................................. 900 31
-----
67
Retail - Food - 0.2%
Brinker International, Inc. * ................ 210 5
Darden Restaurants, Inc. ..................... 130 4
Safeway, Inc. * .............................. 140 7
-----
16
Shoe & Apparel Manufacturing - 0.3%
Liz Claiborne, Inc. .......................... 90 5
Nike, Inc. - Cl. B ........................... 90 4
Reebok International, Ltd. ................... 320 10
-----
19
Telecommunication Equipment - 1.0%
Comverse Technology, Inc. .................... 140 8
L-3 Communications Holdings, Corp. * ......... 210 16
132
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
LARGE CAP VALUE CORE II FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Telecommunication Equipment - Continued
Linear Technology Corp. ...................... 280 $ 13
Micron Technology, Inc. ...................... 300 12
Scientific-Atlanta, Inc. ..................... 280 11
Tellabs, Inc. * .............................. 160 3
------
63
Telecommunication Services - 4.2%
BCE, Inc. .................................... 640 17
Cox Communications, Inc. - Cl. A ............. 700 31
United States Cellular Corp. ................. 270 15
Verizon Communications ....................... 3,680 197
WorldCom, Inc. * ............................. 967 13
XO Communications, Inc. ...................... 90 1
------
274
Telephone - 6.5%
Alltel ....................................... 440 27
AT&T Corp. ................................... 3,820 84
AT&T Corp. - Liberty Media Group - Cl. A ..... 4,250 74
BellSouth Corp. .............................. 1,340 54
Qwest Communications International, Inc. ..... 620 20
SBC Communications, Inc. ..................... 2,950 118
Telephone and Data Systems, Inc. ............. 460 50
------
427
Transportation Services - 1.5%
Burlington Northern Santa Fe Corp. ........... 130 4
Canadian National Railway Co. ................ 620 25
CSX Corp. .................................... 620 23
Expeditors International of Washington, Inc. . 90 5
Southwest Airlines Co. ....................... 240 4
UAL Corp. .................................... 510 18
Union Pacific Corp. .......................... 140 8
United Parcel Service, Inc. - Cl. B. * ....... 160 9
------
96
U.S. Government Agencies - 3.1%
Federal Home Loan Mortgage Corp. ............. 1,060 74
Federal National Mortgage Assoc. ............. 1,500 128
------
202
------
TOTAL INVESTMENTS- 99.5% 6,564
Other Assets & Liabilities, Net- 0.5% 32
------- ------
NET ASSETS- 100.0% $6,596
======= ======
* Non-income producing security
See notes to financial statements.
133
SCHEDULE OF INVESTMENTS
(Unaudited)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
LARGE/MID CAP VALUE FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Aerospace & Defense - 2.0%
Boeing Co. ................................... 4,100 $ 228
Lockheed Martin Corp. ........................ 4,600 171
United Technologies Corp. .................... 4,400 322
------
721
Automobile - 1.6%
Ford Motor Co. ............................... 15,270 375
General Motors Corp. ......................... 2,600 167
General Motors Corp. - Cl. H ................. 2,196 45
------
587
Bank - 14.2%
Australia & New Zealand
Banking Group, Ltd. - ADR ................... 10,200 434
Bank of Montreal ............................. 13,400 346
JP Morgan Chase & Co. ........................ 32,300 1,441
UnionBanCal Corp. ............................ 14,300 482
US Bancorp ................................... 31,661 721
Wachovia Corp. ............................... 2,900 206
Washington Mutual, Inc. ...................... 32,950 1,237
Westpac Banking Corp., Ltd. .................. 8,600 315
------
5,182
Chemical - 1.4%
Air Products & Chemicals, Inc. ............... 4,300 197
E.I. du Pont de Nemours & Co. ................ 6,900 333
------
530
Commercial Services - 0.3%
Avery Dennison Corp. ......................... 1,800 92
Computer Equipment - 2.2%
Compaq Computer Corp. ........................ 5,900 91
Hewlett-Packard Co. .......................... 8,900 255
International Business Machines Corp. ........ 3,700 418
Palm, Inc. ................................... 9,200 56
------
820
Computer Software & Services - 1.1%
First Data Corp. ............................. 6,200 398
Container - 0.2%
Smurfit-Stone Container Corp. ................ 3,700 60
Cosmetic & Personal Care - 2.6%
International Flavors & Fragrances, Inc. ..... 7,600 191
Leggett & Platt, Inc. ........................ 6,200 137
Procter & Gamble Co. ......................... 9,800 625
------
953
Diversified Operations - 2.4%
Eaton Corp. .................................. 2,500 175
General Electric Co. ......................... 8,600 419
Tyco International, Ltd. ..................... 5,000 273
------
867
Electric Power - 3.7%
Calpine Corp. ................................ 7,300 276
Duke Energy Co. .............................. 6,000 234
Exelon Corp. ................................. 8,712 559
Montana Power Co. ............................ 3,400 39
Pinnacle West Capital Corp. .................. 3,400 161
PPL Corp. .................................... 1,800 99
------
1,368
Electronic Products & Services - 1.2%
Cisco Systems, Inc. .......................... 7,300 133
Motorola, Inc. ............................... 18,500 306
------
439
Energy - Alternative Source - 0.9%
El Paso Corp. ................................ 6,500 341
Financial Services - 1.7%
Merrill Lynch & Co., Inc. .................... 8,800 521
Pitney Bowes, Inc. ........................... 2,700 114
------
635
Food, Beverage & Tobacco - 4.2%
ConAgra, Inc. ................................ 18,700 370
PepsiCo, Inc. ................................ 8,700 385
Philip Morris Cos., Inc. ..................... 5,100 259
R.J. Reynolds Tobacco Holdings, Inc. ......... 9,200 502
------
1,516
Health Care Products - 5.8%
Abbott Laboratories .......................... 9,900 475
American Home Products Corp. ................. 3,600 210
Baxter International, Inc. ................... 4,600 225
Bristol-Myers Squibb Co. ..................... 1,500 78
Eli Lilly & Co. .............................. 1,000 74
McKesson HBOC, Inc. .......................... 2,600 97
Merck & Co., Inc. ............................ 3,400 217
Mylan Laboratories, Inc. ..................... 4,500 127
Pharmacia Corp. .............................. 10,047 462
Schering-Plough Corp. ........................ 4,600 167
------
2,132
Health Care Services - 0.1%
WebMD Corp. .................................. 4,000 28
Insurance - 6.8%
American International Group, Inc. ........... 6,250 537
Cigna Corp. .................................. 4,400 422
Marsh & McLennan Cos., Inc. .................. 3,600 364
MBIA, Inc. ................................... 13,300 740
XL Capital, Ltd. - Cl. A ..................... 5,200 427
------
2,490
Leisure & Recreation - 1.0%
Eastman Kodak Co. ............................ 1,900 89
Sabre Group Holdings, Inc. ................... 5,500 275
134
SCHEDULE OF INVESTMENTS--Continued
(Unaudited)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
LARGE/MID CAP VALUE FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Leisure & Recreation - Continued
Six Flags, Inc. .............................. 900 $ 19
------
383
Machinery - 1.0%
Caterpillar, Inc. ............................ 4,100 205
Thermo Electron Corp. ........................ 8,000 176
------
381
Media - Publishing - 0.5%
Gannett Co., Inc. ............................ 2,800 185
Media - TV & Radio - 2.2%
Adelphia Communications Corp. - Cl. A ........ 7,000 287
AOL Time Warner, Inc. ........................ 2,600 138
E.W. Scripps Co. - Cl. A ..................... 2,600 179
USA Networks, Inc. ........................... 7,700 216
------
820
Metals & Mining - 1.4%
Alcoa, Inc. .................................. 8,300 327
Minnesota Mining & Manufacturing Co. ......... 1,600 183
------
510
Oil & Natural Gas Exploration & Production - 9.0%
Chevron Corp. ................................ 8,600 778
Conoco, Inc. - Cl. B ......................... 1,900 55
Exxon Mobil Corp. ............................ 23,250 2,030
Helmerich & Payne, Inc. ...................... 5,000 154
Rowan Cos., Inc. ............................. 8,500 188
Sunoco, Inc. ................................. 600 22
Ultramar Diamond Shamrock Corp. .............. 500 24
USX-Marathon Group ........................... 900 26
------
3,277
Oil - Equipment & Service - 0.2%
Halliburton Co. .............................. 1,600 57
Paper & Forest Products - 1.4%
Bowater, Inc. ................................ 4,500 201
Kimberly-Clark Corp. ......................... 3,500 196
Weyerhaeuser Co. ............................. 2,000 110
------
507
Personal & Commercial Lending - 4.4%
Citigroup, Inc. .............................. 30,766 1,626
Real Estate Investment Trust - 1.6%
Equity Office Properties Trust ............... 13,100 415
Kimco Realty Corp. ........................... 3,700 175
------
590
Real Estate Operations - 0.1%
Security Capital Group, Inc. - Cl. B ......... 2,200 47
Retail - Department Stores - 2.2%
Family Dollar Stores, Inc. ................... 17,600 451
Intimate Brands, Inc. ........................ 2,200 33
Wal-Mart Stores, Inc. ........................ 6,500 317
------
801
Retail - Food - 2.3%
Brinker International, Inc. .................. 3,700 96
McDonald's Corp. ............................. 10,000 271
Safeway, Inc. ................................ 10,200 489
------
856
Shoe & Apparel Manufacturing - 0.9%
Jones Apparel Group, Inc. .................... 3,100 134
Nike, Inc. - Cl. B ........................... 4,400 185
------
319
Telecommunication Services - 4.9%
Broadwing, Inc. .............................. 6,800 166
Verizon Communications ....................... 26,600 1,423
WorldCom, Inc. ............................... 13,200 188
------
1,777
Telephone - 5.5%
AT&T Corp. ................................... 12,600 277
AT&T Corp. - Liberty Media Group - Cl. A ..... 35,000 612
Constellation Energy Group ................... 5,400 230
Qwest Communications International, Inc. ..... 12,337 393
SBC Communications, Inc. ..................... 12,095 485
------
1,997
Transportation Services - 1.0%
Canadian National Railway Co. ................ 2,800 113
Continental Airlines, Inc. - Cl. B ........... 1,300 64
Delta Air Lines, Inc. ........................ 900 40
Southwest Airlines Co. ....................... 8,750 162
------
379
U.S. Government Agencies - 3.0%
Federal Home Loan Mortgage Corp. ............. 4,000 280
Federal National Mortgage Assoc. ............. 9,400 800
------
1,080
------
TOTAL COMMON STOCK- 95.0% 34,751
------
135
SCHEDULE OF INVESTMENTS--Continued
(Unaudited)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
LARGE/MID CAP VALUE FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
SHORT-TERM INVESTMENTS
Investment in joint trading account - 5.4%
Investment in joint trading account
3.97% due 07/02/01 ........................... $ 1,977 $ 1,977
U.S. Treasury Bills - 0.2%
U.S. Treasury Bills
3.79% due 11/01/01 #.......................... 50 50
3.56% due 08/16/01 #.......................... 10 10
---------- ----------
60
----------
TOTAL SHORT-TERM INVESTMENTS- 5.6% 2,037
---------- ----------
TOTAL INVESTMENTS- 100.6% 36,788
Other Assets & Liabilities, Net- (0.6)% (219)
---------- ----------
NET ASSETS- 100.0% $ 36,569
========== ==========
ADR-American Depository Receipts.
# All or a portion of the principle amount of this security was pledged to
cover initial margin requirements for open future contracts.
See notes to financial statements.
136
SCHEDULE OF INVESTMENTS
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
MONEY MARKET FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
COMMERCIAL PAPER
Bank - 22.6%
Abbey National of America
4.63% due 07/12/01 ........................... $ 5,000 $ 4,994
American Centurian Bank
3.96% due 07/10/01 ........................... 11,000 11,000
ANZ Delaware, Inc.
4.2% due 07/23/01 ............................ 5,000 4,988
Bank America NA Charlotte
5.102% due 09/06/01 .......................... 5,000 5,001
Branch Banking & Trust Co.
3.97% due 07/03/01 ........................... 15,000 15,000
Citibank Canada DTC MMI CD
4.23% due 07/25/01 ........................... 8,000 8,000
Credit Suisse First Boston, Inc.
4.7% due 07/02/01 ............................ 2,000 2,000
5.052% due 08/09/01 .......................... 5,000 5,000
Credit Suisse First Boston NY
4.605% due 07/09/01 .......................... 4,000 3,997
Deutsche Bank AG
5.38% due 07/24/01 ........................... 4,000 4,000
Firststar Bank NA Milwaukee WI
3.98% due 08/01/01 ........................... 10,000 10,000
Fleet National Bank
5.13% due 09/07/01 ........................... 3,000 3,000
LaSalle Bank NA
3.75% due 09/05/01 ........................... 14,000 14,000
National Bank of Canada
4.67% due 07/11/01 ........................... 6,000 6,000
National City Bank
5.51% due 08/01/01 ........................... 2,000 2,000
6.34% due 09/21/01 ........................... 5,000 5,017
--------
103,997
Cosmetic & Personal Care - 0.5%
Unilever Capital Corp.
5.11% due 09/07/01 ........................... 2,500 2,500
Diversified Operations - 3.3%
Ciesco Puerto
4.65% due 07/03/01 ........................... 6,000 5,999
Diageo Capital PLC
3.92% due 07/18/01 ........................... 9,000 8,984
--------
14,983
Electric Power - 0.7%
National Rural Utilities Cooperative Finance
Corp.
4.2% due 07/19/01 ............................ 3,000 2,994
Financial Services - 25.8%
Alpine Securitization Corp.
4.25% due 07/19/01 ........................... 5,000 4,990
Apreco, Inc.
3.7% due 09/17/01 ............................ 12,500 12,401
Centric Capital Corp.
4.22% due 07/05/01 ........................... 3,600 3,599
4.68% due 07/09/01 ........................... 4,000 3,996
Chevron Investment PLC
4.63% due 07/06/01 ........................... 8,000 7,996
Corporate Recievables Corp.
3.6% due 09/07/01 ............................ 8,000 7,946
Eureka Securitization, Inc.
3.78% due 08/31/01 ........................... 10,000 9,937
Falcon Asset Securitization
3.7% due 08/03/01 ............................ 13,000 12,957
4.2% due 07/20/01 ............................ 1,793 1,789
General Electric Capital Corp.
3.72% due 10/31/01 ........................... 14,000 13,825
4.22% due 07/18/01 ........................... 3,700 3,693
Goldman Sachs Group, Inc.
5.485% due 11/26/01 .......................... 2,000 2,001
4.56% due 07/10/01 ........................... 5,000 4,995
Greenwich Funding Corp.
4.2% due 07/26/01 ............................ 1,669 1,664
4.65% due 07/05/01 ........................... 1,490 1,489
International Lease Finance Corp.
4.24% due 07/18/01 ........................... 3,977 3,970
Merrill Lynch & Co., Inc.
5.605% due 11/01/01 .......................... 2,000 2,001
National Rural Utilities Cooperative Finance
Corp.
4.797% due 07/20/01 .......................... 2,000 2,000
Sigma Finance Corp.
5.05% due 08/14/01 ........................... 3,500 3,479
UBS Finance , Inc.
3.85% due 08/08/01 ........................... 3,800 3,785
Variable Funding Capital
3.95% due 07/12/01 ........................... 10,000 9,989
--------
118,502
Food Beverage & Tobacco - 5.6%
Anheuser Busch, Inc.
3.6% due 09/21/01 ............................ 14,000 13,886
Coca Cola Enterprises, Inc.
3.71% due 09/26/01 ........................... 12,000 11,894
--------
25,780
Healthcare Products - 3.1%
Merck & Co., Inc.
3.8% due 07/05/01 ............................ 14,000 13,996
Media - Publishing - 1.8%
Washington Post Co.
3.68% due 09/14/01 ........................... 8,500 8,436
137
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
MONEY MARKET FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
COMMERCIAL PAPER - CONTINUED
Media - TV & Radio - 3.0%
Gannett, Inc.
3.95% due 07/06/01 ........................... $ 14,000 $ 13,994
Paper Products - 1.8%
Park Avenue Receivables Corp.
3.75% due 07/11/01 ........................... 8,406 8,398
Personal & Commercial Lending - 12.7%
Greyhawk Fund Corp.
3.7% due 09/10/01 ............................ 14,000 13,899
Halifax PLC
3.6% due 09/17/01 ............................ 14,000 13,892
Household Finance Corp.
5.675% due 08/01/01 .......................... 4,000 4,000
President & Fellows Harvard Co.
3.86% due 07/16/01 ........................... 14,000 13,979
Windmill Funding Corp.
3.75% due 09/12/01 ........................... 9,400 9,330
4.23% due 07/05/01 ........................... 3,000 2,999
--------
58,099
Retail-Department Stores - 3.0%
Wal Mart Stores, Inc.
3.6% due 07/31/01 ............................ 14,000 13,959
Telecommunications Services - 0.7%
Verizon Network Fund
4.25% due 07/10/01 ........................... 3,000 2,997
U.S. Governement Agencies - 10.3%
Federal Home Loan Bank Note
3.66% due 09/07/01 ........................... 22,340 23,181
3.91% due 07/11/01 ........................... 9,528 9,519
Federal National Mortgage Assoc.
3.54% due 09/13/01 ........................... 14,750 14,644
--------
47,344
--------
TOTAL COMMERCIAL PAPER- ................. 94.9% 435,979
--------
JOINT REPURCHASE AGREEMENT - 5.0%
Investment in joint repurchase
agreement with SBC Warburg,
Ltd., 3.295% due 07/02/01
(Secured by Various
U.S. Treasury obligations and U.S.
Government Agency Bonds) .................... 22,825 22,825
-------- --------
TOTAL INVESTMENTS- 99.9% 458,804
Other Assets & Liabilities, Net- 0.1% 565
-------- --------
NET ASSETS- 100.0% $459,369
======== ========
See notes to financial statements.
138
SCHEDULE OF INVESTMENTS
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
LARGE/MID CAP VALUE II FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Aerospace & Defense - 2.1%
Boeing Co. ................................... 15,100 $ 839
Lockheed Martin Corp. ........................ 15,600 578
United Technologies Corp. .................... 15,000 1,099
-------
2,516
Automobile - 1.7%
Ford Motor Co. ............................... 52,400 1,286
General Motors Corp. ......................... 10,500 676
General Motors Corp. - Cl. H ................. 7,500 152
-------
2,114
Bank - 15.1%
Australia & New Zealand Banking
Group, Ltd. - ADR ........................... 33,000 1,404
Bank of Montreal ............................. 44,000 1,136
JP Morgan Chase & Co. ........................ 108,700 4,848
Mercantile Bankshares Corp. .................. 2,500 98
UnionBanCal Corp. ............................ 49,600 1,672
US Bancorp ................................... 108,373 2,470
Wachovia Corp. ............................... 10,000 711
Washington Mutual, Inc. ...................... 127,500 4,788
Westpac Banking Corp., Ltd. .................. 30,200 1,105
-------
18,232
Chemical - 1.5%
Air Products & Chemicals, Inc. ............... 14,800 677
E.I. du Pont de Nemours & Co. ................ 23,300 1,124
-------
1,801
Commercial Services - 0.3%
Avery Dennison Corp. ......................... 6,100 311
Computer Equipment - 2.4%
Compaq Computer Corp. ........................ 32,800 508
Hewlett-Packard Co. .......................... 30,400 869
International Business Machines
Corp. ...................................... 11,900 1,345
Palm, Inc. ................................... 31,600 192
-------
2,914
Computer Software & Services - 1.1%
First Data Corp. ............................. 19,800 1,272
Cosmetic & Personal Care - 2.7%
International Flavors & Fragrances,
Inc. ....................................... 25,800 648
Leggett & Platt, Inc. ........................ 22,500 496
Procter & Gamble Co. ......................... 32,600 2,080
-------
3,224
Diversified Operations - 2.5%
Eaton Corp. .................................. 8,700 610
General Electric Co. ......................... 29,300 1,428
Tyco International, Ltd. ..................... 17,200 938
-------
2,976
Electric Power - 3.5%
Calpine Corp. * .............................. 29,800 1,126
Duke Energy Co. .............................. 20,200 788
Exelon Corp. ................................. 28,100 1,802
Montana Power Co. ............................ 16,900 196
PPL Corp. .................................... 6,100 336
-------
4,248
Electronic Products & Services - 1.2%
Cisco Systems, Inc. .......................... 25,100 457
Motorola, Inc. ............................... 64,100 1,061
-------
1,518
Energy - Alternative Source - 0.9%
El Paso Corp. ................................ 21,800 1,145
Financial Services - 1.7%
Merrill Lynch & Co., Inc. .................... 28,700 1,700
Pitney Bowes, Inc. ........................... 9,200 388
-------
2,088
Food, Beverage & Tobacco - 4.8%
ConAgra, Inc. ................................ 60,600 1,200
PepsiCo, Inc. ................................ 29,800 1,317
Philip Morris Cos., Inc. ..................... 22,800 1,157
R.J. Reynolds Tobacco Holdings,
Inc. * ...................................... 39,700 2,168
-------
5,842
Health Care Products - 6.0%
Abbott Laboratories .......................... 33,700 1,618
American Home Products Corp. ................. 12,100 707
Baxter International, Inc. ................... 16,000 784
Bristol-Myers Squibb Co. ..................... 5,000 262
Eli Lilly & Co. .............................. 3,200 237
McKesson HBOC, Inc. .......................... 9,000 334
Merck & Co., Inc. ............................ 11,300 722
Mylan Laboratories, Inc. ..................... 15,400 433
Pharmacia Corp. .............................. 34,100 1,567
Schering-Plough Corp. ........................ 16,000 580
-------
7,244
Health Care Services - 0.1%
WebMD Corp. .................................. 13,100 92
Insurance - 7.1%
American International Group, Inc. ........... 22,800 1,961
Cigna Corp. .................................. 15,200 1,456
Marsh & McLennan Cos., Inc. .................. 13,000 1,313
MBIA, Inc. ................................... 43,650 2,430
XL Capital, Ltd. - Cl. A ..................... 17,500 1,437
-------
8,597
Leisure & Recreation - 1.1%
Eastman Kodak Co. ............................ 6,400 299
Sabre Group Holdings, Inc. ................... 20,400 1,020
139
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
LARGE/MID CAP VALUE II FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Leisure & Recreation - Continued
Six Flags, Inc. .............................. 3,000 $ 63
-------
1,382
Machinery - 1.1%
Caterpillar, Inc. ............................ 14,100 706
Thermo Electron Corp. * ...................... 27,900 614
-------
1,320
Media - Publishing - 0.5%
Gannett Co., Inc. ............................ 9,800 646
Media - TV / Radio - 2.6%
Adelphia Communications Corp.
- Cl. A ................................. 23,900 980
AOL Time Warner, Inc. * ...................... 9,000 477
E.W. Scripps Co. - Cl. A ..................... 13,400 924
USA Networks, Inc. * ........................ 26,700 748
-------
3,129
Metals & Mining - 1.7%
Alcoa, Inc. .................................. 35,500 1,399
Minnesota Mining & Manufacturing
Co. ......................................... 5,400 616
-------
2,015
Oil & Natural Gas Exploration & Production - 9.1%
Chevron Corp. ................................ 27,700 2,507
Conoco, Inc. - Cl. B ......................... 9,000 260
Exxon Mobil Corp. ............................ 78,700 6,874
Helmerich & Payne, Inc. ...................... 17,100 527
Rowan Cos., Inc. ............................. 30,300 670
Sunoco, Inc. ................................. 1,900 70
Ultramar Diamond Shamrock Corp. .............. 1,600 76
USX-Marathon Group ........................... 3,000 88
-------
11,072
Oil - Equipment & Service - 0.2%
Halliburton Co. .............................. 8,000 285
Paper & Forest Products - 1.1%
Bowater, Inc. ................................ 15,400 689
Kimberly-Clark Corp. ......................... 12,000 671
-------
1,360
Personal & Commercial Lending - 5.1%
Citigroup, Inc. .............................. 116,700 6,166
Real Estate Investment Trust - 1.6%
Equity Office Properties Trust ............... 42,500 1,344
Kimco Realty Corp. ........................... 12,800 606
-------
1,950
Real Estate Operations - 0.1%
Security Capital Group, Inc. -
Cl. B ....................................... 8,300 178
Retail - Department Stores - 2.2%
Family Dollar Stores, Inc. ................... 57,700 1,479
Intimate Brands, Inc. ........................ 12,600 190
Wal-Mart Stores, Inc. ........................ 20,500 1,000
-------
2,669
Retail - Food - 2.5%
Brinker International, Inc. .................. 13,600 352
McDonald's Corp. ............................. 34,300 928
Safeway, Inc. * .............................. 35,500 1,704
-------
2,984
Shoe & Apparel Manufacturing - 1.1%
Jones Apparel Group, Inc. * .................. 11,300 488
Nike, Inc. - Cl. B ........................... 19,200 806
-------
1,294
Telecommunication Services - 4.9%
Broadwing, Inc. .............................. 23,200 567
Verizon Communications ....................... 87,600 4,687
WorldCom, Inc. * ............................ 45,300 643
-------
5,897
Telephone - 5.5%
AT&T Corp. ................................... 44,700 983
AT&T Corp. - Liberty Media Group
- Cl. A ..................................... 115,200 2,015
Constellation Energy Group ................... 18,700 797
Qwest Communications
International, Inc. ......................... 39,800 1,269
SBC Communications, Inc. ..................... 38,800 1,554
-------
6,618
Transportation Services - 1.1%
Canadian National Railway Co. ................ 9,700 393
Continental Airlines, Inc. - Cl. B * ........ 5,200 256
Delta Air Lines, Inc. ........................ 3,700 163
Southwest Airlines Co. ....................... 29,850 552
-------
1,364
U.S. Government Agencies - 3.0%
Federal Home Loan Mortgage Corp. ............. 13,700 959
Federal National Mortgage Assoc .............. 32,200 2,742
-------
3,701
-------
TOTAL COMMON STOCK- ............. 99.2% 120,164
-------
140
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
LARGE/MID CAP VALUE II FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
SHORT-TERM INVESTMENTS
Investment in joint trading account - 1.2%
Investment in joint trading account
3.97% due 07/02/01 .......................... $1,473 $1,473
U.S. Treasury Bills - 0.1%
U.S. Treasury Bills
3.54% due 09/06/01 # ........................ 25 25
3.96% due 07/12/01 .......................... 35 35
3.62% due 07/09/01 .......................... 35 35
------
95
Shares
Cash Equivalents - 5.3%
Navigator Securities Lending Prime
Portfolio ** 6,460,592 6,461
---------- --------
TOTAL SHORT-TERM INVESTMENTS 6.6% 8,029
---------- --------
TOTAL INVESTMENTS- 105.8% 128,193
Other Assets & Liabilities, Net- (5.8)% (7,091)
---------- --------
NET ASSETS- 100.0% $121,102
========== ========
ADR-American Depository Receipts.
* Non-income producing security.
** Represents investment of security lending collateral.
# All or a portion of the principle amount of this security was pledged to
cover initial margin requirements for open future contracts.
See notes to financial statements.
141
SCHEDULE OF INVESTMENTS
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
SMALL/MID CAP GROWTH FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Automobile - 1.8%
United Rentals, Inc. * ....................... 126,900 $ 3,293
Bank - 2.1%
Mercantile Bankshares Corp. .................. 35,800 1,401
Westamerica Bancorp .......................... 35,600 1,397
Wilmington Trust Trust Corp. ................. 16,900 1,059
-------
3,857
Brokerage & Investment Management - 4.3%
Investment Technology Group, Inc. ............ 77,400 3,893
Legg Mason, Inc. ............................. 78,400 3,901
-------
7,794
Business Services - 1.2%
G&K Services, Inc. - Cl. A ................... 83,000 2,233
Chemical - 1.6%
MacDermid, Inc. .............................. 66,800 1,202
NOVA Corp. ................................... 53,800 1,692
-------
2,894
Chemicals - 0.7%
Dionex Corp. ................................. 38,600 1,283
Commercial Services - 1.3%
TMP Worldwide, Inc. * ....................... 39,300 2,358
Computer Equipment - 2.2%
Brocade Communications Systems, Inc. ......... 17,500 770
Lexmark International Group, Inc. -
Cl. A .................................... 47,200 3,174
-------
3,944
Computer Software & Services - 12.5%
Acxiom Corp. ................................. 85,500 1,119
Affiliated Computer Services, Inc. -
Cl. A * .................................. 21,400 1,539
Black Box Corp. .............................. 49,200 3,314
CheckFree Corp. .............................. 10,200 358
DST Systems, Inc. * ......................... 46,000 2,424
IMS Health, Inc. ............................. 110,900 3,161
Macromedia, Inc. * ........................... 83,600 1,505
Mercury Interactive Corp.* ................... 3,900 234
Openwave Systems, Inc. * ..................... 4,000 139
Peoplesoft, Inc. ............................. 16,500 812
Radiant Systems, Inc. * ..................... 8,000 129
Rational Software Corp. * ................... 66,900 1,816
SunGard Data Systems, Inc. ................... 60,600 1,819
Systems & Computer Technology
Corp. .................................... 84,200 762
Trizetto Group, Inc. * ....................... 33,500 310
Verity, Inc. * ............................... 142,200 2,837
Vignette Corp. * ............................. 39,500 350
-------
22,628
Consumer Miscellaneous - 0.9%
Catalina Marketing Corp. ..................... 55,000 1,678
Container - 2.6%
Bemis Co., Inc. .............................. 62,500 2,511
Pactiv Corp. ................................. 162,800 2,181
-------
4,692
Diversified Operations - 1.9%
AptarGroup, Inc. ............................. 40,200 1,304
Ionics, Inc. * ............................... 65,200 2,054
-------
3,358
Electric Power - 2.7%
Calpine Corp. * .............................. 47,700 1,803
Montana Power Co. ............................ 113,100 1,312
Pinnacle West Capital Corp. .................. 38,500 1,825
-------
4,940
Electronic Products & Services - 7.0%
Atmi, Inc. * ................................. 9,200 276
Emulex Corp. ................................. 8,400 339
Littelfuse, Inc. * ........................... 92,700 2,483
Optimal Robotics Corp. * ..................... 73,200 2,782
QLogic Corp. * .............................. 20,500 1,321
Sensormatic Electronics Corp. ................ 202,800 3,448
Varian Semiconductor Equipment
Associates, Inc. ............................ 10,000 420
Veeco Instruments Inc. * ..................... 41,100 1,634
-------
12,703
Food, Beverage & Tobacco - 2.0%
Pepsi Bottling Group, Inc. ................... 91,800 3,681
Health Care Products - 14.0%
Becton, Dickinson & Co. ...................... 103,500 3,704
Biomet, Inc. ................................. 49,550 2,381
Cephalon, Inc. * ............................. 16,000 1,128
COR Therapeutics, Inc.8 ..................... 7,200 220
CV Therapeutics, Inc. * ..................... 21,000 1,197
Edwards Lifesciences Corp. ................... 187,600 4,945
Genzyme Corp. * ............................. 37,000 2,257
Gilead Sciences, Inc. * ..................... 18,000 1,048
Immunex Corp. ................................ 97,200 1,725
Laboratory Corporation of America
Holdings .................................... 21,900 1,684
Millipore Corp. .............................. 37,100 2,300
NPS Pharmaceuticals, Inc. * ................. 12,500 503
Patterson Dental Co. ......................... 70,800 2,124
Regeneron Pharmaceuticals .................... 1,700 589
-------
25,805
Health Care Services - 7.6%
Gene Logic, Inc. ............................. 31,000 676
Health Management Associates, Inc. -
Cl. A * ..................................... 176,200 3,707
Idec Pharmaceuticals Corp. ................... 20,000 1,354
Trigon Healthcare, Inc. ...................... 69,200 4,487
142
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
SMALL/MID CAP GROWTH FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Health Care Services - Continued
Wellpoint Health networks, Inc. .............. 37,000 $ 3,487
--------
13,771
Household Appliances & Furnishings - 2.1%
Herman Miller, Inc. .......................... 154,600 3,741
Insurance - 4.3%
Ambac Financial Group, Inc. .................. 66,900 3,893
Reinsurance Group of America ................. 104,900 3,976
--------
7,869
Leisure & Recreation - 1.7%
Speedway Motorsports, Inc. * ................. 121,700 3,068
Oil & Natural Gas Exploration &
Production- 3.9%
Atwood Oceanics, Inc.* ....................... 38,800 1,362
Helmerich & Payne, Inc. ...................... 94,300 2,906
Murphy Oil Corp. ............................. 29,600 2,179
Suncor Energy, Inc. .......................... 3,400 87
--------
6,534
Oil - Equipment & Service - 2.9%
Hanover Compressor Co. * ..................... 85,800 2,839
Swift Energy Co. ............................. 77,500 2,335
--------
5,174
Retail - Department Stores - 5.2%
Bed Bath & Beyond, Inc.* ..................... 24,300 758
Family Dollar Stores, Inc. ................... 129,200 3,312
Fastenal Co. ................................. 28,900 1,791
Staples, Inc. * ............................. 227,900 3,644
--------
9,505
Retail - Food - 3.3%
Darden Restaurants, Inc. ..................... 123,400 3,443
Whole Foods Market, Inc.* .................... 94,300 2,555
--------
5,998
Shoe & Apparel Manufacturing - 2.0%
Liz Claiborne, Inc. .......................... 70,900 3,577
Telecommunication Equipment - 5.0%
CommScope, Inc.* ............................. 138,700 3,260
DMC Stratex Networks, Inc. - Notes* ......... 145,800 1,458
Symbol Technologies, Inc. .................... 110,650 2,456
Tekelec, Inc. ................................ 51,400 1,393
TriQuint Semiconductor, Inc.* ................ 24,400 549
--------
9,116
Telecommunication Services - 0.3%
Broadwing, Inc. .............................. 25,500 623
Transportation Services - 2.0%
Atlas Air Worldwide Hldgs, Inc. * ........... 77,000 1,090
EGL, Inc. * ................................. 139,500 2,436
--------
3,526
--------
TOTAL COMMON STOCK- 99.1% 179,643
--------
Par
Value
(000's)
SHORT-TERM INVESTMENTS
Investment in joint trading account - 0.6%
Investment in joint trading account
3.97% due 07/02/01 ......................... $ 1,010 1,010
Shares
Cash Equvalents - 15.6%
Navigator Securities Lending Prime
Portfolio ** 28,338,513 28,339
----------- ---------
TOTAL SHORT-TERM INVESTMENTS 16.2% 29,349
----------- ---------
TOTAL INVESTMENTS- 115.3% 208,992
Other Assets & Liabilities, Net- (15.3)% (27,678)
----------- ---------
NET ASSETS- 100.0% $ 181,314
=========== =========
* Non-income producing security.
** Represents investment of security lending collateral.
See notes to financial statements.
143
SCHEDULE OF INVESTMENTS
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
BOND INDEX FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS
Aerospace & Defense - 1.1%
Lockheed Martin Corp.
8.2% due 12/01/09 ............................ $ 200 $ 215
Northrop-Grumman Corp. - Debs.
7.75% due 03/01/16 ........................... 75 77
Raytheon Co. - Notes
6.75% due 08/15/07 ........................... 200 195
Safeway, Inc. - Notes
7.5% due 09/15/09 ............................ 150 156
United Technology Corp.
6.625% due 11/15/04 .......................... 200 207
United Technologies Corp. - Debs.
8.875% due 11/15/19 .......................... 50 59
--------
909
Auto & Truck Parts - 0.5%
TRW, Inc.
7.125% due 06/01/09 .......................... 150 147
Visteon Corp.
7.95% due 08/01/05 ........................... 250 261
--------
408
Automobile - 0.9%
Daimler Chrysler Auto Trust - Notes
6.7% due 03/08/06 ............................ 400 415
Delphi Automotive Systems Corp. - Debs.
7.125% due 05/01/29 .......................... 50 46
Delphi Automotive Systems Corp. - Notes
6.5% due 05/01/09 ............................ 200 192
Ford Motor Co. - Bonds
6.625% due 02/15/28 .......................... 50 43
--------
696
Bank - 3.3%
African Development Bank - Sub. Notes
6.875% due 10/15/15 .......................... 35 36
Asian Development Bank - Bonds
5.5% due 04/23/04 ............................ 270 269
Bank of America Corp. - Sub. Notes
7.8% due 02/15/10 ............................ 150 159
Bank One Corp. - Sr. Notes
5.625% due 02/17/04 .......................... 150 151
BankAmerica Corp. - Sub. Notes
6.5% due 03/15/06 ............................ 150 152
Chase Manhattan Corp. - Sub. Notes
7.125% due 02/01/07 .......................... 225 233
First Union Corp. - Sub. Notes
8.125% due 06/24/02 .......................... 230 238
Fleet Boston Corp. - Sub. Notes
7.375% due 12/01/09 .......................... 100 105
Fleet Financial Group, Inc. - Sub. Debs.
6.7% due 07/15/28 ............................ 75 70
Golden West Financial Corp. - Sub. Notes
6.7% due 07/01/02 ............................ 150 153
HSBC Holdings PLC
7.5% due 07/15/09 ............................ 150 157
InterAmerican Development Bank - Debs.
8.5% due 03/15/11 ............................ 200 233
Korea Development Bank - Bonds
7.375% due 09/17/04 .......................... 120 125
National City Bank of Pennsylvania - Sub.
Notes
7.25% due 10/21/11 ........................... 50 51
Royal Bank of Scotland PLC - Sub. Notes
6.4% due 04/01/09 ............................ 150 148
Wachovia Corp. - Sub. Notes
5.625% due 12/15/08 .......................... 75 70
Wells Fargo Co. - Notes
6.625% due 07/15/04 .......................... 175 181
Wells Fargo Co. - Sub. Notes
6.875% due 04/01/06 .......................... 150 155
--------
2,686
Brokerage & Investment Management - 2.3%
Bear Stearns Co., Inc.
7.625% due 02/01/05 .......................... 250 262
Merrill Lynch & Co., Inc. - Notes
8.0% due 06/01/07 ............................ 200 214
Morgan Stanley Capital, Inc. - CTF 1998 WF1
Cl. A 1
6.25% due 07/15/07 ........................... 1,187 1,206
Morgan Stanley Dean Witter
7.75% due 06/15/05 ........................... 170 181
--------
1,863
Business Services - 0.4%
Electronic Data Systems Corp.
7.125% due 10/15/09 .......................... 100 102
Financing Corp.
8.6% due 09/26/19 ............................ 150 184
--------
286
Chemical - 0.2%
Eastman Chemical - Debs.
7.6% due 02/01/27 ............................ 50 43
Morton International, Inc. - Debs.
9.25% due 06/01/20 ........................... 40 47
Rohm & Haas Co. - Notes
7.4% due 07/15/09 ............................ 80 83
--------
173
Computer Equipment - 0.4%
Hewlett - Packard Co. - Notes
7.15% due 06/15/05 ........................... 200 207
International Business Machines Corp. -
Debs.
7.0% due 10/30/25 ............................ 100 100
--------
307
144
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
BOND INDEX FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINUED
Consumer Miscellaneous - 0.2%
Fortune Brands, Inc. - Debs.
7.875% due 01/15/23 .......................... $ 100 $ 101
United Utilities PLC - Notes
6.875% due 08/15/28 .......................... 100 88
--------
189
Cosmetic & Personal Care - 0.1%
Procter & Gamble Co. - Debs.
6.45% due 01/15/26 ........................... 100 96
Diversified Operations - 0.3%
Honeywell International, Inc. - Notes
7.5% due 03/01/10 ............................ 75 80
John Deere Capital Corp. - Notes
6.0% due 02/15/09 ............................ 60 57
Tyco International Group SA
6.375% due 06/15/05 .......................... 80 81
--------
218
Electric Power - 1.1%
CalEnergy Co., Inc. - Bonds
8.48% due 09/15/28 ........................... 60 65
Duke Energy Co. - 1st Ref. Mtg.
6.75% due 08/01/25 ........................... 100 92
Florida Power & Light Co.
7.75% due 02/01/23 ........................... 50 49
Niagara Mohawk Power Corp.
7.75% due 10/01/08 ........................... 200 204
Ontario Hydro - Local Govt. GTD.
6.1% due 01/30/08 ............................ 100 100
Philadelphia Electric Co. - 1st Ref. Mtg.
7.125% due 09/01/02 .......................... 100 103
Tennessee Valley Authority
6.75% due 11/01/25 ........................... 100 102
Virginia Electric Power Co. - 1st Mtg.
7.625% due 07/01/07 .......................... 150 158
--------
873
Entertainment & Recreation - 0.1%
TCI Communciations, Inc. - Sr. Notes
7.125% due 02/15/28 .......................... 70 65
Financial Services - 2.4%
Ameritech Capital Funding Corp.
6.875% due 10/15/27 .......................... 60 58
Anardarko Finance Co. - Sr. Notes 144A
6.75% due 05/01/11 ........................... 200 199
Associates Corp. of North America
5.5% due 02/15/04 ............................ 675 677
Citicorp Capital II
8.015% due 02/15/27 .......................... 100 103
GATX Capital Corp. - Notes
6.875% due 12/15/06 .......................... 100 94
Goldman Sachs Group, Inc. - Notes
7.35% due 10/01/09 ........................... 100 103
Hartford Financial Services Group, Inc. -
Sr. Notes
7.75% due 06/15/05 ........................... 150 159
Morgan Stanley, Dean Witter, Discover & Co.
- Notes
6.875% due 03/01/03 .......................... 200 206
Newcourt Credit Group, Inc. - Ser. B
6.875% due 02/16/05 .......................... 100 103
Qwest Capital Funding - GTD Notes
7.9% due 08/15/10 ............................ 90 93
Sumitomo Bank International Finance NV -
Notes
8.5% due 06/15/09 ............................ 100 107
Washington Mutual Capital I
8.375% due 06/01/27 .......................... 60 61
--------
1,963
Food, Beverage & Tobacco - 1.2%
Archer Daniels Midland Co. - Notes
6.25% due 05/15/03 ........................... 275 282
Coca-Cola Enterprises, Inc. - Debs.
8.5% due 02/01/22 ............................ 100 115
Conagra, Inc. - Debs.
9.75% due 03/01/21 ........................... 75 90
Kellogg Co. - Bonds
7.45% due 04/01/31 ........................... 100 100
Pepsi Bottling Group, Inc. - Sr. Notes Ser. B
7.0% due 03/01/29 ............................ 100 100
Philip Morris Cos., Inc. - Debs.
8.25% due 10/15/03 ........................... 100 106
SuperValu, Inc. - Notes
7.625% due 09/15/04 .......................... 150 148
--------
941
Foreign Governmental - 2.2%
Government of Canada
5.25% due 11/05/08 ........................... 125 120
Government of New Zealand - Debs.
8.75% due 12/15/06 ........................... 120 136
Hydro-Quebec
8.4% due 01/15/22 ............................ 100 115
Kingdom of Spain
7.0% due 07/19/05 ............................ 250 264
Kingdom of Sweden - Debs.
12.0% due 02/01/10 ........................... 75 104
Malaysia - Bonds
8.75% due 06/01/09 ........................... 50 54
Province of Manitoba - Debs.
6.875% due 09/15/02 .......................... 200 205
Province of Newfoundland - Debs.
9.0% due 10/15/21 ............................ 60 73
Province of Ontario
8.0% due 10/17/01 ............................ 200 202
145
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
BOND INDEX FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINUED
Foreign Governmental - Continued
Province of Ontario - Bonds
6.0% due 02/21/06 ............................ $ 300 $ 304
Province of Quebec - Debs.
7.5% due 07/15/23 ............................ 100 105
Republic of Korea - Unsub.
8.75% due 04/15/03 ........................... 85 90
--------
1,772
Health Care Products - 0.1%
Eli Lilly & Co. - Notes
7.125% due 06/01/25 .......................... 80 83
Insurance - 0.6%
Aetna Inc.
7.625% due 08/15/26 .......................... 100 104
Allstate Corp.
7.2% due 12/01/09 ............................ 150 156
Hartford Life, Inc. - Debs.
7.65% due 06/15/27 ........................... 50 52
Torchmark, Inc. - Debs.
8.25% due 08/15/09 ........................... 100 104
Travelers Property Casualty Corp. - Sr. Notes
7.75% due 04/15/26 ........................... 50 52
--------
468
Machinery - 0.3%
Caterpillar, Inc. - Debs.
8.0% due 02/15/23 ............................ 50 55
Reliance Electric Co. - Notes
6.8% due 04/15/03 ............................ 200 208
--------
263
Media - TV / Radio - 0.5%
News America Holdings, Inc. - Debs.
7.7% due 10/30/25 ............................ 100 93
Time Warner Entertainment, Inc. - Sr. Notes
8.375% due 07/15/33 .......................... 200 217
Viacom, Inc.
7.875% due 07/30/30 .......................... 50 53
--------
363
Metals & Mining - 0.2%
Noranda, Inc. - Debs.
7.0% due 07/15/05 ............................ 200 199
Natural Gas Distribution - 0.2%
Enron Corp. - Notes
6.75% due 09/15/04 ........................... 100 101
Tennessee Gas Pipeline - Bonds
7.5% due 04/01/17 ............................ 100 98
--------
199
Oil - 0.4%
Atlantic Richfield Co. - Notes
5.55% due 04/15/03 ........................... 75 76
Conoco, Inc. - Sr. Notes
6.95% due 04/15/29 ........................... 90 86
Occidental Petroleum Corp. - Debs.
7.2% due 04/01/28 ............................ 40 39
Tosco Corp. - Notes
7.625% due 05/15/06 .......................... 115 122
--------
323
Oil & Natural Gas Exploration & Production - 0.5%
Burlington Resources, Inc - Debs.
9.125% due 10/01/21 .......................... 90 106
Norsk Hydro A/S
7.25% due 09/23/27 ........................... 75 74
Phillips Petroleum Co. - Debs.
6.65% due 07/15/18 ........................... 50 47
Trans-Canada Pipelines
7.7% due 06/15/29 ............................ 100 101
Union Oil Co. of California
7.5% due 02/15/29 ............................ 60 61
--------
389
Oil - Equipment & Service - 0.1%
Coastal Corp. - Debs.
6.5% due 06/01/08 ............................ 100 95
Paper & Forest Products - 0.2%
Bowater, Inc. - Debs.
9.0% due 08/01/09 ............................ 100 107
Champion International Corp. - Debs.
7.35% due 11/01/25 ........................... 50 46
Westvaco Corp. - Notes
7.1% due 11/15/09 ............................ 35 34
--------
187
Personal & Commercial Lending - 2.8%
Aristar, Inc. - Sr. Notes
6.5% due 11/15/03 ............................ 200 204
CitiFinancial Credit Co. - Notes
5.9% due 09/01/03 ............................ 150 152
Ford Motor Credit Co.
6.125% due 01/09/06 .......................... 300 295
General Motors Acceptance Corp.
5.85% due 01/14/09 ........................... 500 465
General Motors Acceptance Corp. - Notes
9.625% due 12/15/01 .......................... 350 358
Household Finance Corp. - Notes
6.5% due 11/15/08 ............................ 280 274
LB Commercial Conduit Mortgage Trust
7.325% due 09/15/09 .......................... 400 417
Toyota Motor Credit Corp. - Notes
5.5% due 12/15/08 ............................ 60 57
--------
2,222
146
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
BOND INDEX FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINUED
Real Estate Investment Trust - 0.1%
Spieker Properties, Inc. - Debs.
7.5% due 10/01/27 ............................ $ 40 $ 37
Retail - Department Stores - 0.6%
Dayton Hudson Corp. - Debs.
6.75% due 01/01/28 ........................... 25 23
Federated Department Stores
6.625% due 04/01/11 .......................... 200 193
Gap, Inc. - Notes
6.9% due 09/15/07 ............................ 100 100
Target Corp.
6.35% due 01/15/11 ........................... 100 99
Wal-Mart Stores, Inc. - Debs.
6.75% due 10/15/23 ........................... 100 100
--------
515
Retail - Food - 0.3%
Albertson's, Inc. - Notes
6.625% due 06/01/28 .......................... 50 42
McDonald's Corp. - Sub. Debs.
7.31% due 09/15/27 ........................... 60 59
Safeway, Inc.
7.25% due 09/15/04 ........................... 150 156
--------
257
Telecommunication Equipment - 0.2%
Deutsche Telekom International Finance
8.25% due 06/15/30 ........................... 100 103
GTE Corp. - Debs.
6.94% due 04/15/28 ........................... 100 93
--------
196
Telecommunication Services - 2.1%
AT&T WirelessGroup - Sr. Notes 144A
7.875% due 03/01/11 .......................... 200 200
AT&T Canada, Inc. - Sr. Notes
7.65% due 09/15/06 ........................... 150 148
Bell Canada
7.75% due 04/01/06 ........................... 125 130
BellSouth Telecommunications, Inc. - Debs.
7.0% due 10/01/25 ............................ 100 98
British Telecommunications PLC - Notes
8.125% due 12/15/10 .......................... 200 212
Dominion Resources, Inc.
8.125% due 06/15/10 .......................... 200 216
France Telecom - Notes Sr. 144A
7.2% due 03/01/06 ............................ 350 360
Telefonica Europe BV - Notes
8.25% due 09/15/30 ........................... 100 106
Vodafone Group PLC
7.75% due 02/15/10 ........................... 100 105
Worldcom, Inc. - Notes
8.25% due 05/15/31 ........................... 150 147
--------
1,722
Telephone - 0.8%
Alltel Corp. - Sr. Notes
7.6% due 04/01/09 ............................ 100 103
Comcast Cable Communications - Notes
8.875% due 05/01/17 .......................... 75 85
New York Telephone Co. - Debs.
7.25% due 02/15/24 ........................... 100 95
SBC Communications Capital Corp. - Debs.
5.875% due 06/01/03 .......................... 100 100
South Carolina Electric & Gas - 1st Mtg.
7.5% due 06/15/23 ............................ 100 96
Sprint Capital Corp.
6.875% due 11/15/28 .......................... 150 127
--------
606
Transportation Services - 0.7%
American Airlines, Inc. - Pass Through
Certificates
7.024% due 04/15/11 .......................... 60 61
Burlington Northern Railroad Co.
6.125% due 03/15/09 .......................... 150 144
CSX Corp. - Debs.
7.45% due 05/01/07 ........................... 125 130
Norfolk Southern Corp. - Notes
7.35% due 05/15/07 ........................... 125 129
Union Pacific Corp. - Debs.
6.625% due 02/01/29 .......................... 85 76
--------
540
U.S. Government Agencies - 44.9%
Federal Home Loan Bank
5.58% due 08/17/01 ........................... 300 300
6.75% due 02/15/02 ........................... 1,600 1,626
Federal Home Loan Bank Disc. Note
5.125% due 03/06/06 .......................... 600 590
Federal Home Loan Mortgage Corp.
5.5% due 06/01/16 ............................ 500 483
5.75% due 04/15/08 ........................... 300 298
6.5% due 01/01/21 ............................ 431 429
6.5% due 05/01/31 ............................ 599 590
7.0% due 07/15/05 ............................ 655 692
7.0% due 02/01/16 ............................ 371 378
7.0% due 05/01/31 ............................ 250 251
8.0% due 09/01/30 ............................ 500 516
Federal Home Loan Mortgage Corp. - Bonds
7.1% due 04/10/07 ............................ 500 534
Federal Home Loan Mortgage Corp. - Deb.
5.0% due 01/15/04 ............................ 800 802
Federal Home Loan Mortgage Corp. - Notes
5.75% due 07/15/03 ........................... 1,000 1,022
6.0% due 10/01/14 ............................ 572 564
6.0% due 08/01/29 ............................ 995 957
6.5% due 11/01/15 ............................ 587 590
6.5% due 09/01/28 ............................ 474 467
6.5% due 06/01/29 ............................ 87 85
147
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
BOND INDEX FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINUED
U.S. Government Agencies - Continued
Federal Home Loan Mortgage Corp. - Notes
6.5% due 07/01/29 ............................ $ 983 $ 968
6.5% due 12/01/30 ............................ 399 393
6.875% due 01/15/05 .......................... 150 158
7.0% due 02/01/30 ............................ 1,397 1,404
7.5% due 02/01/16 ............................ 141 145
7.5% due 11/01/30 ............................ 1,012 1,034
8.0% due 02/01/30 ............................ 363 375
Federal Home Loan Mortgage Corp. - Sr. Notes
5.8% due 09/02/08 ............................ 225 223
Federal National Mortgage Assoc.
5.375% due 03/15/02 .......................... 450 455
5.5% due 03/01/16 ............................ 200 193
5.5% due 04/01/16 ............................ 100 96
6.0% due 05/01/14 ............................ 238 235
6.0% due 06/01/31 ............................ 700 672
6.25% due 05/15/29 ........................... 965 924
6.375% due 06/15/09 .......................... 600 612
6.5% due 04/29/09 ............................ 200 199
6.5% due 11/01/29 ............................ 700 690
7.0% due 05/01/31 ............................ 600 603
7.5% due 11/01/30 ............................ 238 243
Federal National Mortgage Assoc. - Notes
4.75% due 11/14/03 ........................... 175 175
6.0% due 02/01/16 ............................ 589 580
6.0% due 01/01/29 ............................ 994 958
6.19% due 02/19/09 ........................... 120 118
6.5% due 02/01/15 ............................ 279 280
6.5% due 12/01/30 ............................ 469 462
6.5% due 01/01/31 ............................ 114 112
6.5% due 02/01/31 ............................ 1,795 1,768
7.0% due 01/01/08 ............................ 199 202
7.0% due 03/01/16 ............................ 292 297
7.0% due 01/01/30 ............................ 1,726 1,734
7.125% due 01/15/30 .......................... 159 170
7.5% due 10/01/15 ............................ 398 409
7.5% due 09/01/30 ............................ 1,187 1,212
8.0% due 08/01/30 ............................ 492 508
8.5% due 09/01/30 ............................ 339 356
Government National Mortgage Assoc.
6.5% due 05/15/31 ............................ 300 296
7.0% due 06/15/31 ............................ 500 504
7.5% due 01/15/31 ............................ 195 200
8.5% due 09/15/30 ............................ 347 363
Government National Mortgage Assoc. - Notes.
6.0% due 07/15/29 ............................ 325 314
6.5% due 01/15/16 ............................ 196 198
Government National Mortgage Assoc. - Notes
6.5% due 05/15/29 ............................ 1,176 1,164
7.0% due 12/15/30 ............................ 1,382 1,394
7.5% due 09/15/30 ............................ 1,121 1,149
8.0% due 02/15/31 ............................ 772 800
--------
36,519
U.S. Governmental - 24.5%
U.S. Treasury-Bill
3.435% due 09/13/01 .......................... 842 842
U.S. Treasury Bond
5.0% due 02/15/11 ............................ 1,000 970
5.5% due 08/15/28 ............................ 700 663
6.5% due 11/15/26 ............................ 535 576
6.75% due 08/15/26 ........................... 775 859
8.125% due 08/15/21 .......................... 1,100 1,382
8.75% due 08/15/20 ........................... 1,100 1,457
9.125% due 05/15/09 .......................... 750 837
10.75% due 08/15/05 .......................... 600 728
11.25% due 02/15/15 .......................... 260 393
11.75% due 02/15/10 .......................... 250 306
11.75% due 11/15/14 .......................... 465 659
U.S. Treasury - Notes
5.625% due 05/15/08 .......................... 2,000 2,079
5.75% due 10/31/02 .......................... 2,000 2,044
5.75% due 08/15/03 ........................... 1,000 1,028
6.75% due 05/15/05 ........................... 2,500 2,662
7.875% due 11/15/04 .......................... 2,000 2,190
United Mexican States - Notes
9.875% due 02/01/10 .......................... 220 242
--------
19,917
--------
TOTAL PUBLICLY-TRADED BONDS - 96.8% 78,545
--------
SHORT-TERM INVESTMENTS - 2.0%
Investment in joint trading account
3.97% due 07/02/01 ........................... 1,626 1,626
-------- --------
TOTAL INVESTMENTS- 98.8% 80,171
Other Assets & Liabilities, Net- 1.2% 990
-------- --------
NET ASSETS- 100.0% $ 81,161
======== ========
144A-Pursuant to Rule 144A under the Securities Act of 1993, these securities
may be resold in transactions exempt from registration, normally to
qualified institutional buyers. At June 30, 2001, securities aggregated
$759 or .94% of net assets of the Portfolio.
See notes to financial statements.
148
SCHEDULE OF INVESTMENTS
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
LARGE CAP AGGRESSIVE GROWTH FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Aerospace & Defense - 0.8%
Honeywell International, Inc. ................ 7,600 $ 266
Brokerage & Investment Management - 0.4%
Goldman Sachs Group, Inc. .................... 1,800 154
Commercial Services - 1.5%
Concord EFS, Inc. ............................ 5,900 307
Omnicom Group, Inc. .......................... 2,700 232
--------
539
Computer Equipment - 0.4%
Veritas Software Corp. * .................... 2,300 153
Computer Software & Services - 7.9%
Check Point Software Technologies, Ltd. ...... 2,100 106
Electronic Data Systems Corp. ................ 11,000 688
First Data Corp. ............................. 5,000 321
Microsoft Corp. .............................. 20,500 1,496
Siebel Systems, Inc. ......................... 4,600 216
--------
2,827
Cosmetic & Personal Care - 1.5%
Colgate-Palmolive Co. ........................ 8,900 525
Diversified Operations - 7.3%
General Electric Co. ......................... 30,000 1,463
Tyco International, Ltd. ..................... 21,200 1,155
--------
2,618
Electronic Products & Services - 3.7%
Cisco Systems, Inc. * ........................ 48,600 884
Maxim Integrated Products, Inc. .............. 6,200 274
Texas Instruments, Inc. ...................... 4,500 142
--------
1,300
Energy - Alternative Source - 0.9%
Dynegy, Inc. - Cl. A ......................... 6,600 307
Financial Services - 3.1%
Household International, Inc. ................ 11,200 747
Merrill Lynch & Co., Inc. .................... 6,000 356
--------
1,103
Food, Beverage & Tobacco - 1.1%
Anheuser-Busch Cos., Inc. .................... 9,500 391
Health Care Products - 14.1%
Johnson & Johnson ............................ 9,900 495
Medtronic, Inc. .............................. 14,400 663
Pfizer, Inc. ................................. 50,300 2,014
Pharmacia Corp. .............................. 23,700 1,089
Schering-Plough Corp. ........................ 21,300 772
--------
5,033
Health Care Services - 1.0%
Tenet Healthcare Corp. ....................... 6,700 346
Insurance - 3.7%
American International Group, Inc. ........... 15,500 1,333
Media - TV & Radio - 11.9%
AOL Time Warner, Inc. * ...................... 43,100 2,284
Comcast Corp. - Cl. A * ...................... 27,900 1,211
Viacom, Inc. - Cl. B * ...................... 14,600 756
--------
4,251
Oil - 1.1%
Baker Hughes, Inc. ........................... 11,700 392
Oil & Natural Gas Exploration & Production - 3.0%
BP Amoco PLC - ADR ........................... 8,500 424
Chevron Corp. ................................ 4,000 362
Transocean Sedco Forex, Inc. ................. 7,000 289
--------
1,075
Personal & Commercial Lending - 9.1%
Citigroup, Inc. .............................. 31,008 1,638
MBNA Corp. ................................... 49,100 1,618
--------
3,256
Retail - Department Stores - 8.7%
Home Depot, Inc. ............................. 24,200 1,126
Kohl's Corp. ................................. 19,400 1,217
Target Corp. ................................. 10,600 367
Wal-Mart Stores, Inc. ........................ 7,800 381
--------
3,091
Retail - Drug Stores - 1.6%
Walgreen Co. ................................. 16,200 553
Telecommunication Equipment - 3.4%
Micron Technology, Inc. ...................... 6,700 275
Nokia Oyj - ADR .............................. 42,200 930
--------
1,205
Telecommunication Services - 1.3%
Vodafone Group PLC ........................... 21,200 474
Telephone - 3.3%
AT&T Corp. - Liberty Media Group - Cl. A ..... 33,900 593
AT&T Wireless Group * ........................ 34,600 566
--------
1,159
U.S. Government Agencies - 6.8%
Federal Home Loan Mortgage Corp. ............. 24,200 1,694
Federal National Mortgage Assoc. ............. 8,400 715
--------
2,409
--------
TOTAL COMMON STOCK- 97.6% 34,760
--------
149
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
LARGE CAP AGGRESSIVE GROWTH FUND
Par Market
Value Value
(000's) (000's)
SHORT-TERM INVESTMENTS - 2.8%
Investment in joint trading account
3.97% due 07/02/01 .......................... $ 1,006 $ 1,006
------- -------
TOTAL INVESTMENTS- 100.4% 35,766
Other Assets & Liabilities, Net- (0.4)% (137)
------- -------
NET ASSETS- 100.0% $35,629
======= =======
ADR-American Depository Receipts
* Non-income producing security.
See notes to financial statements.
150
SCHEDULE OF INVESTMENTS
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
SMALL/MID CAP CORE FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Aerospace & Defense - 0.3%
Kaman Corp. - Cl. A ........................................ 1,600 $ 28
Memberworks, Inc. .......................................... 1,400 32
Teledyne Technologies, Inc. * .............................. 1,000 15
The Titan Corp. * .......................................... 900 21
------
96
Apparel - 0.1%
Skechers USA, Inc. ......................................... 1,400 41
Auto & Truck Parts - 1.1%
Autoliv, Inc. .............................................. 1,400 24
AutoZone, Inc. * ........................................... 1,400 53
Cummins Engine Company, Inc. ............................... 700 27
Goodyear Tire & Rubber Co. ................................. 3,000 84
Polaris Industries Inc. .................................... 1,000 46
Visteon Corp. .............................................. 3,400 62
------
296
Automobile - 0.4%
Oshkosh Truck Corp. ........................................ 900 40
United Auto Group, Inc. * .................................. 4,100 72
------
112
Bank - 7.4%
Associated Banc-Corp ....................................... 2,800 101
BancorpSouth, Inc. ......................................... 675 11
Bancwest Corp. ............................................. 5,200 179
Banknorth Group, Inc. ...................................... 2,625 59
Capitol Federal Financial .................................. 2,100 41
Cathay Bancorp, Inc. ....................................... 700 38
City National Corp. ........................................ 2,000 89
Commerce Bancorp, Inc. ..................................... 1,000 70
Commerce Bancshares, Inc. .................................. 2,280 84
Corus Bankshares, Inc. ..................................... 1,600 96
Cullen/Frost Bankers, Inc. ................................. 2,900 98
Dime Bancorp, Inc. ......................................... 2,300 86
Downey Financial Corp. ..................................... 500 24
F&M National Corp. ......................................... 1,000 40
First Citizens BancShares, Inc. - Cl. A .................... 800 87
First Sentinel Bancorp, Inc. ............................... 1,400 19
First Virginia Banks, Inc. ................................. 1,400 66
GBC Bancorp ................................................ 800 23
Golden State Bancorp, Inc. * ............................... 2,300 71
Hancock Holding Co. ........................................ 1,400 60
Investors Financial Services Corp. ......................... 1,000 67
M&T Bank Corp. ............................................. 2,100 159
Mercantile Bankshares Corp. ................................ 2,500 98
Net.B@nk, Inc. * ........................................... 500 6
North Fork Bancorporation, Inc. ............................ 1,200 37
OceanFirst Financial Corp. ................................. 1,400 36
Omega Financial Corp. ...................................... 600 19
PFF Bancorp, Inc. * ........................................ 1,200 30
Royal Bank of Canada ....................................... 1,952 62
Silicon Valley Bancshares * ................................ 900 20
TCF Financial Corp. ........................................ 1,300 60
United Community Financial Corp. ........................... 1,900 17
Zions Bancorp .............................................. 1,600 94
------
2,047
Brokerage & Investment Management - 1.8%
Affiliated Managers Group, Inc. * .......................... 2,300 141
Investment Technology Group, Inc. .......................... 600 30
Jefferies Group, Inc. ...................................... 1,900 61
John Nuveen Co. - Cl. A .................................... 3,700 210
Raymond James Financial, Inc. .............................. 1,000 31
Southwest Securities Group, Inc. ........................... 1,160 24
------
497
Building Materials - 0.4%
Interactive Data Corp. ..................................... 1,200 11
The Scotts Co. - Cl A ...................................... 2,700 112
------
123
Business Services - 1.5%
Career Education Corp. ..................................... 700 42
Comdisco, Inc. ............................................. 2,200 3
Corporate Executive Board Co. .............................. 1,200 50
DiamondCluster, Inc. * ..................................... 900 12
Education Management Corp. ................................. 700 28
Express Scripts, Inc. - Cl. A * ............................ 2,600 143
Forrester Research, Inc. * ................................. 900 20
Global Payments, Inc. * .................................... 880 27
Harris Corp. ............................................... 1,900 52
TotalSystem Services, Inc. ................................. 1,000 28
------
405
Chemical - 2.2%
Albemarle Corp. ............................................ 2,300 53
Arch Chemicals, Inc. ....................................... 1,800 39
Ashland, Inc. .............................................. 2,900 116
Cabot Corp. ................................................ 1,700 61
ChemFirst, Inc. ............................................ 1,300 34
Crompton Corp. ............................................. 1,300 14
Cytec Industries, Inc. * ................................... 1,200 46
Engelhard Corp. ............................................ 1,800 47
IMC Global, Inc. ........................................... 1,200 12
Lubrizol Corp. ............................................. 1,600 50
Sigma-Aldrich Corp. ........................................ 3,700 143
W.R. Grace & Co. ........................................... 2,900 5
------
620
Commercial Services - 3.5%
ADVO, Inc. ................................................. 1,400 48
Apollo Group, Inc. - Cl. A ................................. 2,400 102
Brady Corp. - Cl. A ........................................ 1,300 47
Coinstar, Inc. * ........................................... 2,100 47
CSG Systems International, Inc. * .......................... 800 45
F.Y.I., Inc. * ............................................. 800 33
Fair Issac & Co., Inc. ..................................... 1,600 99
151
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
SMALL/MID CAP CORE FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Commercial Services - Continued
Galileo International, Inc. ................................ 1,500 $ 49
Identix, Inc. * ............................................ 400 2
Informix Corp. * ........................................... 3,150 18
Lamar Advertising Co. * .................................... 1,000 44
Macrovision Corp. * ........................................ 1,000 68
Paxar Corp. * .............................................. 1,500 22
Plexus Corp. * ............................................. 1,200 40
Power One, Inc. * .......................................... 700 12
Rent A Car * ............................................... 1,500 79
Standard Register Co. ...................................... 1,700 31
Steelcase, Inc. - Cl. A .................................... 3,900 47
Sybase, Inc. * ............................................. 2,100 35
Sylvan Learning Systems, Inc. * ............................ 1,400 34
TeleTech Holdings, Inc. 8 .................................. 1,700 15
Wackenhut Corp. - Cl. A .................................... 600 10
Waste Connections, Inc. .................................... 800 29
------
956
Computer Equipment - 0.9%
CACI International, Inc. - Cl A ............................ 1,200 56
Cerner Corp. * ............................................. 800 34
Extreme Networks, Inc. 8 ................................... 700 21
Intergraph Corp. ........................................... 800 12
Mentor Graphics Corp. * .................................... 1,800 31
Mercury Computer Systems, Inc. ............................. 1,200 53
Predictive Systems, Inc. * ................................. 1,900 8
Quantum Corp. - DLT & Storage * ............................ 1,400 14
Tech Data Corp. * .......................................... 700 23
------
252
Computer Software & Services - 7.6%
Actuate Software Corp. ..................................... 1,200 11
Acxiom Corp. ............................................... 1,400 18
Advent Software, Inc. ...................................... 500 32
Affiliated Computer Services, Inc. - Cl. A * ............... 3,500 252
Agile Software Corp. * ..................................... 200 3
Art Technology Group, Inc.* ................................ 1,000 6
Aspen Technologies, Inc. ................................... 300 7
Autodesk, Inc. ............................................. 1,500 56
Avant! Corp. * ............................................. 1,600 21
Barra, Inc. * .............................................. 850 33
Black Box Corp. ............................................ 500 34
CacheFlow, Inc. * .......................................... 300 2
Cadence Design Systems, Inc. * ............................. 3,600 67
Ceridian Corp. * ........................................... 1,400 27
CheckFree Corp. ............................................ 900 32
Clarent Corp. * ............................................ 600 6
CNet Networks, Inc. ........................................ 1,200 16
Cognizant Technology Solutions Corp. ....................... 500 21
Digex, Inc. * .............................................. 500 7
Digital Insight Corp.* ..................................... 400 9
E.Piphany, Inc. * .......................................... 1,100 11
EarthLink, Inc. * .......................................... 1,161 16
Echelon Corp. * ............................................ 200 6
Factset Research Systems, Inc. ............................. 700 25
GTech Holdings Corp. ....................................... 1,900 67
Informatica Corp. * ........................................ 900 16
Internap Network Services Corp.* ........................... 1,000 3
Internet Security System, Inc. ............................. 400 19
Intertrust Technologies Corp. * ............................ 1,200 1
Interwoven, Inc. * ......................................... 1,100 19
Intranet Solutions, Inc. * ................................. 300 11
J.D. Edwards & Co.* ........................................ 1,200 17
Jack Henry & Associates, Inc. .............................. 1,200 37
Kana Communications, Inc. * ................................ 2,150 4
Liberate Technologies, Inc. ................................ 900 10
LookSmart, Ltd. * .......................................... 500 1
Macromedia, Inc. * ......................................... 900 16
Manugistics Group, Inc. * .................................. 500 13
MCSi, Inc. * ............................................... 1,400 21
Micromuse, Inc. * .......................................... 1,900 53
Multex.com, Inc. * ......................................... 300 5
National Data Corp. ........................................ 1,200 39
NCR Corp. * ................................................ 1,900 89
Netegrity, Inc. * .......................................... 400 12
NetIQ Corp. * .............................................. 984 31
Network Associates, Inc. ................................... 1,700 21
NextCard, Inc. * ........................................... 200 2
NVIDIA Corp. * ............................................. 1,300 121
Packeteer, Inc. * .......................................... 400 5
Parametric Technology Corp. * .............................. 2,100 29
Peoplesoft, Inc. ........................................... 3,000 148
Peregrine Systems, Inc. * .................................. 2,500 73
Pixar, Inc. ................................................ 1,300 53
PurchasePro.com, Inc. * .................................... 500 1
Radiant Systems, Inc.* ..................................... 1,100 18
Rainbow Technologies, Inc. * ............................... 1,500 8
Red Hat, Inc. * ............................................ 800 3
Renaissance Learning, Inc. ................................. 600 30
Retek, Inc. * .............................................. 745 36
RSA Security, Inc. * ....................................... 750 23
Safeguard Scientifics, Inc. * .............................. 3,600 19
SCM Microsystems, Inc. * ................................... 200 2
Secure Computing Corp. * ................................... 300 5
SonicWall, Inc. * .......................................... 500 13
Symantec Corp. * ........................................... 2,100 92
Synopsys, Inc. * ........................................... 1,200 58
THQ, Inc. .................................................. 1,000 60
Trizetto Group, Inc.* ...................................... 200 2
Unigraphics Solutions, Inc. * .............................. 1,400 44
Verity, Inc. * ............................................. 600 12
VerticalNet, Inc. * ........................................ 1,400 4
Viant Corp. * .............................................. 600 1
WebMethods, Inc. * ......................................... 305 6
152
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
SMALL/MID CAP CORE FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Computer Software & Services - Continued
Wind River Systems * ..................................... 1,200 $ 21
------
2,112
Construction - 1.5%
Dycom Industries, Inc. * .................................. 1,600 37
Emcor Group, Inc. * ....................................... 2,200 80
Hughes Supply, Inc. ....................................... 1,700 40
Jacobs Engineering Group, Inc. ............................ 800 52
NVR, Inc. * ............................................... 1,200 178
Stanley Works ............................................. 700 29
USG Corp. * ............................................... 1,300 5
------
421
Consumer Miscellaneous - 1.6%
Central Garden & Pet Co. * ............................... 2,700 26
Concord Camera Corp. * ................................... 900 5
GoTo.com, Inc. * .......................................... 500 10
Herbalife International, Inc. - Cl. A ..................... 1,100 11
Ingram Micro, Inc. - Cl. A * ............................. 2,800 40
JAKKS Pacific, Inc. ....................................... 2,300 43
Nu Skin Enterprises, Inc. - Cl. A * ...................... 2,800 24
Russ Berrie & Co., Inc. ................................... 800 23
Sherwin-Williams Co. ...................................... 2,100 47
Toro Co. .................................................. 4,600 207
------
436
Container - 0.2%
Chesapeake Corp. .......................................... 2,800 69
Cosmetic & Personal Care - 0.2%
Alberto-Culver Co. - Cl. B ................................ 1,600 67
Diversified Operations - 2.3%
A.O. Smith Corp. .......................................... 1,400 25
Coherent, Inc. * ......................................... 1,300 47
GenTek, Inc. .............................................. 2,000 11
Henry Schein, Inc. * ..................................... 3,000 120
ITT Industries, Inc. ...................................... 2,400 106
National Service Industries, Inc .......................... 2,300 52
Nortek, Inc. .............................................. 1,200 38
Pittston Brink's Group .................................... 1,200 27
Reynolds & Reynolds Co. - Cl A ............................ 1,600 35
Roper Industries, Inc. .................................... 700 29
SCP Pool Corp. * .......................................... 1,700 59
SPS Technologies, Inc. .................................... 600 28
Viad Corp. ................................................ 1,000 26
W.W. Grainger, Inc. ....................................... 600 25
------
628
Electric Power - 3.6%
Avista Corp. .............................................. 2,100 42
CMS Energy Corp. .......................................... 2,100 58
El Paso Electric Co. ...................................... 2,500 40
Energy East Corp. ......................................... 5,100 107
NiSource, Inc. ............................................ 1,900 52
PPL Corp. ................................................. 3,500 193
Public Service Co. of New Mexico .......................... 2,800 90
Puget Energy, Inc. ........................................ 3,400 89
RGS Energy Group, Inc. .................................... 2,700 101
UtiliCorp United, Inc. .................................... 7,200 220
------
992
Electrical Equipment - 0.8%
Anixter International, Inc. ............................... 2,100 64
Mettler-Toledo International, Inc. * ...................... 600 26
Pentair, Inc. ............................................. 700 24
The Genlyte Corp. * ....................................... 2,200 68
Universal Electronics, Inc. ............................... 1,300 23
Zygo Corp.* ............................................... 1,200 27
------
232
Electronic Components - 0.1%
Centiillium Communications, Inc ........................... 900 22
Electronic Products & Services - 5.3%
Aeroflex, Inc. * .......................................... 800 8
Alliance Semiconductor Corp. * ............................ 800 10
Alliant Energy Corp. ...................................... 1,800 52
Amphenol Corp. - Cl. A * .................................. 1,900 76
Anaren Micro Circuits, Inc. * ............................. 400 8
Audiovox Corp. - Cl. A * .................................. 1,200 13
Avnet, Inc. ............................................... 3,144 70
Ball Corp. ................................................ 1,800 86
BEI Technologies, Inc. .................................... 900 24
Benchmark Electronics, Inc. * ............................. 600 15
Cabot Microelectronics Corp. .............................. 664 41
Checkpoint Systems, Inc. * ............................... 600 11
Cirrus Logic, Inc. * ..................................... 1,000 23
CyberOptics Corp. * ....................................... 900 11
Cytyc Corp. * ............................................. 3,100 71
Elantec Semiconductor, Inc. * ............................. 400 14
Electro Scientific Industries, Inc. * ..................... 900 34
Emulex Corp. * ........................................... 900 36
Entrust Technologies, Inc. * .............................. 600 4
Exar, Corp. * ............................................. 800 16
FEI Co.* .................................................. 900 37
General Semiconductor, Inc. ............................... 300 3
Generale Cable Corp. ...................................... 3,700 69
II-VI, Inc. * ............................................. 1,000 18
Keithley Instruments, Inc. ................................ 1,400 30
Lam Research Corp. * ..................................... 2,000 59
Lattice Semiconductor Corp. * ............................. 1,200 29
Microsemi Corp. ........................................... 600 43
Molecular Devices, Corp.* ................................. 300 6
Moog, Inc. - Cl. A * ..................................... 1,000 39
MRV Communications, Inc. * ................................ 1,500 14
Newport Corp. ............................................. 900 24
Park Electrochemical Corp. ................................ 800 21
PerkinElmer, Inc. ......................................... 3,600 99
Pioneer Standard Electronics, Inc ......................... 2,200 28
QLogic Corp. * ........................................... 1,300 84
153
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
SMALL/MID CAP CORE FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Electronic Products & Services - Continued
Rogers Corp. .............................................. 600 $ 16
Rudolph Technologies, Inc. ................................ 500 24
Sensormatic Electronics Corp. * ........................... 1,200 20
Standard Microsystems Corp. ............................... 2,400 43
Tektronix, Inc. ........................................... 3,200 87
TranSwitch Corp. * ....................................... 800 9
Trimble Navigation, Ltd. * ................................ 300 6
Vicor Corp. * ............................................. 800 13
Woodhead Industries, Inc. ................................. 1,300 22
------
1,466
Energy - Alternative Source - 0.8%
Covanta Energy Corp. ...................................... 2,400 45
Massey Energy Co. ......................................... 4,200 83
Woodward Governor Co. ..................................... 1,200 101
------
229
Engineering & Construction - 0.1%
York International Corp. .................................. 1,000 35
Financial Services - 2.0%
Advanta Corp. - Cl. A ..................................... 1,600 26
Ameritrade Holding Corp. * ............................... 1,300 10
BlackRock, Inc.* .......................................... 2,300 79
Eaton Vance Corp. * ....................................... 1,700 59
First Tennessee National Corp. ............................ 1,800 63
Heller Financial, Inc. .................................... 2,700 108
Pacific Century Financial Corp ............................ 1,300 34
S1 Corp. * ............................................... 1,000 14
SEI Investments Co. ....................................... 2,600 123
UIL Holding Corp. ......................................... 500 24
------
540
Food, Beverage & Tobacco - 3.1%
Brown-Forman Corp. - Cl. B ................................ 1,400 90
Constellation Brands, Inc. - Cl. A * ..................... 1,500 61
Corn Products International, Inc .......................... 1,300 42
Fleming Cos., Inc. ........................................ 1,800 64
IBP, Inc. ................................................. 1,300 33
J.M. Smucker Co. .......................................... 1,400 36
McCormick & Co., Inc. ..................................... 1,400 59
Pepsi Bottling Group, Inc. ................................ 2,200 88
Pilgrims Pride Corp. - Cl. B .............................. 1,300 16
R.J. Reynolds Tobacco Holdings, Inc. * .................... 2,300 126
Smithfield Foods, Inc. * ................................. 4,000 161
Suiza Foods Corp. * ....................................... 1,000 53
SuperValu, Inc. ........................................... 1,700 30
------
859
Foreign Governmental - 0.1%
Interface, Inc. ........................................... 2,200 17
Health Care Products - 7.3%
Abgenix, Inc. * ........................................... 1,000 45
Andrx Corp.* ............................................. 700 54
Applera Corporation - Celera Genomics Group ............... 900 36
Bacou USA, Inc. ........................................... 1,200 34
Barr Laboratories, Inc. * ................................. 500 35
Beckman Coulter, Inc. ..................................... 2,100 86
Bergen Brunswig Corp. - Cl. A ............................. 5,300 102
Bio-Rad Laboratories, Inc. - Cl. A ........................ 1,000 50
C.R. Bard, Inc. ........................................... 1,500 85
Cell Genesys, Inc. * ..................................... 2,500 51
Cephalon, Inc. * ......................................... 500 35
Conmed Corp. .............................................. 1,200 31
COR Therapeutics, Inc. * ................................. 900 27
CuraGen Corp. * ........................................... 500 18
Datascope Corp. * ......................................... 1,000 46
Dentsply International, Inc. .............................. 1,600 71
Diagnostic Products Corp. ................................. 1,200 40
Haemonetics Corp.8 ........................................ 700 21
Hillenbrand Industries, Inc. .............................. 1,200 69
Immunogen, Inc. ........................................... 600 12
Invitrogen Corp. * ....................................... 900 65
King Pharmaceuticals, Inc. * ............................. 1,850 99
Maxim Pharmaceuticals, Inc. * ............................. 700 4
Maxygen, Inc. * ........................................... 500 10
Medicis Pharmaceutical Corp. - Cl. A ...................... 500 27
Millipore Corp. ........................................... 500 31
Myriad Genetics, Inc. * ................................... 500 32
Owens and Minor, Inc. ..................................... 2,700 51
Patterson Dental Co. * ................................... 1,400 42
Perrigo Co. ............................................... 10,100 169
Pharmaceutical Product Development, Inc. * ................ 1,500 46
Pharmacopeia, Inc. * ..................................... 800 19
PolyMedica Corp. * ....................................... 1,000 40
Priority Healthcare Corp. - Cl. B * ...................... 900 25
Protein Design Labs, Inc. * ............................... 400 35
ResMed, Inc. .............................................. 1,500 76
Respironics, Inc. * ....................................... 1,400 42
Sicor, Inc. ............................................... 1,800 42
Steris Corp. .............................................. 2,000 40
Varian Medical Systems, Inc. * ............................ 1,200 86
Varian, Inc. * ........................................... 1,000 32
Vertex Pharmaceuticals, Inc. * ............................ 600 30
Vical, Inc. * ............................................ 1,300 18
------
2,009
Health Care Services - 3.9%
Albany Molecular Research, Inc ............................ 800 30
AmeriSource Health Corp. - Cl A * ........................ 2,300 127
Apria Healthcare Group, Inc. * ............................ 1,400 40
Beverly Enterprises, Inc. * ............................... 1,700 18
Biosite Diagnostics, Inc. ................................. 900 40
Caremark Rx, Inc. * ....................................... 4,500 74
Coventry Health Care, Inc. * ............................. 1,900 38
Fisher Scientific International, Inc. ..................... 1,200 35
154
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
SMALL/MID CAP CORE FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Health Care Services - Continued
Health Management Associates, Inc. - Cl. A ................ 1,700 $ 36
Healthnet, Inc. ........................................... 1,800 31
Healthsouth Corp.* ........................................ 4,600 74
Humana, Inc. * ............................................ 3,100 31
Idec Pharmaceuticals Corp. ................................ 2,000 135
Oxford Health Plans, Inc. * ............................... 2,000 57
PacifiCare Health Systems, Inc. * ......................... 2,300 38
St. Jude Medical, Inc. .................................... 2,100 126
Syncor International Corp. * .............................. 1,600 50
Trigon Healthcare, Inc. ................................... 500 33
Universal Health Services, Inc. - Cl. B * ................. 600 27
WebMD Corp. * ............................................. 4,000 28
------
1,068
Household Appliances & Furnishings - 0.9%
CompX International, Inc.* ................................ 1,000 12
Energizer Holdings , Inc. ................................. 1,800 41
Furniture Brands International, Inc.* ..................... 1,200 34
Lennox International, Inc. ................................ 2,100 23
Mohawk Industries, Inc. * ................................. 1,400 49
Rent-Way, Inc. * .......................................... 1,100 12
Springs Industries, Inc. - Cl A ........................... 1,900 84
------
255
Housing - 0.5%
American Standard Cos., Inc. .............................. 500 30
D.R. Horton, Inc. ......................................... 1,561 35
Pulte Corp. ............................................... 1,500 64
------
129
Insurance - 3.0%
American National Insurance Co. ........................... 400 30
Conseco, Inc. ............................................. 2,400 33
Fidelity National Financial, Inc. ......................... 1,410 35
LandAmerica Financial Group, Inc. ......................... 1,400 44
Liberty Financial Companies, Inc. * ....................... 1,700 55
National Western Life Insurance Co. ....................... 500 60
Nationwide Financial Services - Cl. A ..................... 4,900 214
Old Republic International Corp. .......................... 2,900 84
Protective Life Corp. ..................................... 1,300 45
Safeco Corp. .............................................. 2,200 65
Stancorp Financial Group, Inc. ............................ 1,300 61
The Midland Co. ........................................... 900 40
The MONY Group, Inc. ...................................... 1,300 52
------
818
Leisure & Recreation - 3.0%
Arctic Cat, Inc. .......................................... 1,900 27
Argosy Gaming Co. ......................................... 2,200 61
Aztar Corp. ............................................... 1,900 23
Bally Total Fitness Holding Corp. * ....................... 800 24
Blockbuster, Inc. - Cl. A ................................. 2,300 42
Brunswick Corp. ........................................... 1,000 24
Callaway Golf Co. ......................................... 4,500 71
Dover Downs Entertainment ................................. 1,300 20
Hotel Reservations Network, Inc. - Cl. A .................. 100 5
International Game Technology ............................. 4,000 251
Lodgenet Entertainment Corp. .............................. 1,300 23
MeriStar Hospitality Corp. ................................ 3,700 88
Sabre Group Holdings, Inc. * .............................. 1,900 95
Ticketmaster Online-CitySearch, Inc. - Cl. B * ............ 400 6
Trendwest Resorts, Inc. * ................................. 900 21
WMS Industries, Inc. ...................................... 1,000 32
World Wrestling Federation Entertainment, Inc. ............ 1,300 18
------
831
Machinery - 2.7%
AGCO Corp. ................................................ 3,500 32
Applied Industrial Technologies, Inc. ..................... 1,800 34
FMC Corp. * ............................................... 1,200 82
Franklin Electric Co., Inc. ............................... 700 53
Imation Corp. * ........................................... 1,000 25
JLG Industries, Inc. ...................................... 2,400 30
Kennametal, Inc. .......................................... 1,700 63
NACCO Industries, Inc. - Cl. A ............................ 900 70
SPX Corp. ................................................. 1,200 150
Stewart & Stevenson Services, Inc. ........................ 900 30
Tecumseh Products Co. - Cl. A ............................. 1,200 60
Thermo Electron Corp. * ................................... 5,600 123
------
752
Media - Publishing - 0.5%
McClatchy Newspapers, Inc. - Cl. A ........................ 1,700 66
Pulitzer, Inc. ............................................ 1,300 69
------
135
Media - TV & Radio - 1.8%
Belo Corp. ................................................ 2,700 51
BHC Communications, Inc. - Cl A * ......................... 300 42
Charter Communications, Inc. - Cl. A * .................... 2,200 51
Chris-Craft Industries , Inc. ............................. 300 22
Entercom Communications Corp.* ............................ 900 48
Getty Images, Inc. ........................................ 1,600 42
Grey Global Group, Inc. ................................... 60 40
Hearst-Argyle Television, Inc. * .......................... 1,300 26
Insight Communications Co., Inc. * ........................ 1,600 40
Primedia, Inc. ............................................ 1,902 13
Radio One, Inc. * ......................................... 2,400 55
Westwood One, Inc. * ...................................... 2,100 77
------
507
Metal Production & Fabrication - 0.4%
Cleveland Cliffs, Inc. .................................... 1,900 35
Commercial Metals Co. ..................................... 1,400 45
Timken Co. ................................................ 2,100 36
------
116
155
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
SMALL/MID CAP CORE FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Metals & Mining - 0.3%
Penn Engineering & Manufacturing Corp. .................... 1,600 28
Precision Castparts Corp. ................................. 500 18
Wolverine Tube, Inc. * .................................... 2,700 45
------
91
Natural Gas Distribution - 1.5%
Nicor, Inc. ............................................... 1,700 66
Peoples Energy Corp. ...................................... 3,500 141
Southwest Gas Corp. ....................................... 3,800 90
UGI Corp. ................................................. 4,300 116
------
413
Oil - 0.3%
ONEOK, Inc. ............................................... 4,600 91
Oil & Natural Gas Exploration & Production - 3.4%
Equitable Resources, Inc. ................................. 2,900 97
Helmerich & Payne, Inc. ................................... 2,500 77
Kinder Morgan, Inc. ....................................... 1,500 75
Murphy Oil Corp. .......................................... 1,400 103
Patina Oil & Gas Corp. .................................... 800 21
Patterson Uti Energy * .................................... 5,800 104
Pride International, Inc. * ............................... 1,500 28
Rowan Cos., Inc. * ........................................ 1,200 27
Sempra Energy ............................................. 5,000 137
Sunoco, Inc. .............................................. 4,000 146
Tom Brown, Inc. ........................................... 1,300 31
Ultramar Diamond Shamrock Corp ............................ 1,000 47
Valero Energy Corp. ....................................... 700 26
Vintage Petroleum, Inc. ................................... 1,700 32
------
951
Oil - Equipment & Service - 0.7%
Cooper Cameron Corp. ...................................... 400 22
Marine Drilling Companies, Inc. * ......................... 1,500 29
Smith International, Inc. ................................. 1,900 114
Tidewater, Inc. ........................................... 800 30
------
195
Paper & Forest Products - 1.5%
Boise Cascade Corp. ....................................... 2,500 88
Louisiana-Pacific Corp. ................................... 3,700 43
Pope & Talbot, Inc. ....................................... 2,100 27
Rayonier, Inc. ............................................ 1,700 79
United Stationers, Inc. * ................................. 1,900 60
Westvaco Corp. ............................................ 4,400 107
------
404
Personal & Commercial Lending - 0.9%
Countrywide Credit Industries, Inc. ....................... 5,300 243
Pollution Control - 0.8%
Allied Waste Industries, Inc. ............................. 6,900 129
Republic Services, Inc. - Cl A ............................ 5,200 103
------
232
Precious Metals/Gems/Stones - 0.3%
Freeport-McMoRan Copper & Gold, Inc. - Cl. B .............. 4,500 50
Homestake Mining Co. ...................................... 3,800 29
------
79
Real Estate Development - 1.1%
KB Home ................................................... 1,300 39
Lennar Corp. .............................................. 3,800 159
Standard Pacific Corp. .................................... 1,400 32
The St. Joe Co. ........................................... 2,800 75
------
305
Real Estate Investment Trust - 5.1%
AMLI Residential Properties Trust ......................... 2,100 52
Arden Realty Group, Inc. .................................. 2,300 61
Avalonbay Communities, Inc. ............................... 2,400 112
Boston Properties, Inc. ................................... 1,700 70
Camden Property Trust ..................................... 600 22
CarrAmerica Realty Corp. .................................. 2,800 85
Centerpoint Properties Corp. .............................. 1,900 95
Chelsea Property Group, Inc. .............................. 800 38
Duke Realty Investments, Inc. ............................. 3,200 80
FelCor Lodging Trust, Inc. ................................ 3,900 91
First Industrial LP * ..................................... 1,400 45
General Growth Properties ................................. 1,700 67
Glenborough Realty Trust, Inc. ............................ 2,800 54
Healthcare Realty Trust, Inc. ............................. 2,400 63
Highwoods Properties, Inc. ................................ 3,800 101
International Rectifier Corp. * ........................... 600 21
Liberty Property Trust .................................... 2,400 71
Mack-Cali Realty Corp. .................................... 2,100 60
Public Storage, Inc. ...................................... 2,100 62
Spieker Properties, Inc. .................................. 1,400 84
Vornado Realty Trust ...................................... 1,800 70
------
1,404
Real Estate Operations - 0.3%
HomeStore.com, Inc. * ..................................... 900 32
M.D.C. Holdings, Inc. ..................................... 870 31
Security Capital Group, Inc. - Cl. B * .................... 1,000 21
------
84
Retail - Department Stores - 2.4%
BJ's Wholesale Club, Inc. ................................. 1,200 64
Cato Corp. - Cl. A ........................................ 1,300 25
Dillard's, Inc. - Cl. A ................................... 3,900 59
Dollar Thrifty Automotive Group, Inc.* .................... 2,500 60
Family Dollar Stores, Inc. ................................ 1,200 31
Freds , Inc. .............................................. 1,250 32
Genesco, Inc.* ............................................ 1,300 44
Handleman Co. ............................................. 2,200 37
MSC Industrial Direct Co., Inc. - Cl. A ................... 1,400 24
Payless ShoeSource, Inc. * ................................ 400 26
Pier 1 Imports, Inc. ...................................... 2,600 30
156
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
SMALL/MID CAP CORE FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Retail - Department Stores - Continued
Rare Hospitality International, Inc.* ..................... 1,450 $ 33
Shopko Stores, Inc. ....................................... 1,100 8
Spiegel, Inc. - Cl. A ..................................... 1,600 15
Talbots, Inc. ............................................. 700 31
Toys "R" Us, Inc. * ....................................... 2,400 59
Value City Department Stores, Inc * ....................... 4,500 52
Venator Group, Inc. ....................................... 2,400 37
------
667
Retail - Food - 0.7%
Brinker International, Inc. * ............................. 1,550 40
Darden Restaurants, Inc. .................................. 1,500 42
Krispy Kreme Doughnuts, Inc. .............................. 800 32
Landry's Seafood Restaurants, Inc. * ...................... 1,000 17
Lone Star Steakhouse & Saloon ............................. 3,900 50
The Great Atlantic & Pacific Tea Co., Inc. ................ 1,200 18
------
199
Shoe & Apparel Manufacturing - 1.0%
Columbia Sportswear Co. * ................................. 900 46
Jones Apparel Group, Inc. * ............................... 900 39
Liz Claiborne, Inc. ....................................... 1,600 81
Oakley, Inc. * ............................................ 2,000 37
Reebok International, Ltd. ................................ 1,300 41
Timberland Co. - Cl. A * .................................. 700 28
------
272
Steel - 0.6%
AK Steel Corp. ............................................ 2,800 35
Carpenter Technology Corp. ................................ 800 23
Remec, Inc. * ............................................. 850 11
Ryerson Tull, Inc. ........................................ 6,700 90
------
159
Telecommunication Equipment - 1.1%
Andrew Corp. * ............................................ 1,500 28
Cable Design Technologies Corp ............................ 1,650 27
Covad Communications Group, Inc. * ........................ 1,600 2
DMC Stratex Networks, Inc. - Notes * ...................... 2,000 20
Glenayre Technologies, Inc. * ............................. 1,700 2
Harmonic, Inc. * .......................................... 517 5
L-3 Communications Holdings, Corp. * ...................... 1,800 137
NMS Communications Corp. .................................. 700 5
Polycom, Inc. * ........................................... 1,000 23
Somera Communications, Inc. * ............................. 2,400 17
Spectrasite Holdings, Inc. ................................ 1,900 14
Tekelec, Inc. ............................................. 600 16
TriQuint Semiconductor, Inc. * ............................ 700 16
------
312
Telecommunication Services - 1.1%
Allen Telecom, Inc. ....................................... 1,100 17
Centennial Cellular Corp. - A Shares * .................... 1,500 20
Citizens Communications Co. ............................... 4,400 53
Focal Communications Corp. * ............................. 800 2
Greif Bros. Corp. - Cl. A * ............................... 1,000 30
IDT Corp. * ............................................... 400 5
IDT Corp. Cl. B ........................................... 400 4
Illuminet Holdings, Inc. * ............................... 1,400 44
Inet Technologies, Inc. * ................................. 200 2
Leap Wireless International, Inc. * ....................... 500 15
Metricom, Inc. * ......................................... 400 1
Pac-West Telecomm, Inc.* .................................. 1,300 3
RCN Corp. * ............................................... 400 2
TeleCorp PCS, Inc. * ..................................... 900 17
Travelocity.com * ......................................... 300 9
Triton PCS, Inc. - Cl. A .................................. 800 33
WEST Corp. ................................................ 1,600 35
Winstar Communications, Inc. * ............................ 1,900
------
292
Telephone - 0.3%
CenturyTel, Inc. .......................................... 3,000 91
Talk America Holdings, Inc. ............................... 800 1
------
92
Transportation Services - 1.5%
America West Holdings Corp. - Cl. B * .................... 1,300 13
Arkansas Best Corp. ....................................... 1,400 32
CNF Transportation, Inc. .................................. 1,200 34
Expeditors International of Washington, Inc. .............. 1,200 72
Frontier Airlines, Inc. * ................................. 2,400 30
Landstar Systems, Inc. .................................... 300 20
Roadway Express, Inc. ..................................... 1,800 43
UAL Corp. ................................................. 2,200 77
USFreightways Corp. ....................................... 1,000 30
Wabtec Corp. .............................................. 2,200 33
Yellow Corp. * ........................................... 1,700 32
------
416
------
TOTAL COMMON STOCK- 97.8% 27,091
------
RIGHTS
Bank - 0.0%
Bank United Corp.
expires 02/12/01 .......................................... 900 0
TOTAL RIGHTS- 0.0% 0
------
157
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
SMALL/MID CAP CORE FUND
Market
Name of Issuer Shares Value
(000's)
SHORT-TERM INVESTMENTS - 1.1%
Investment in joint repurchase agreement
with Goldman Sachs & Co., 4.11% due
07/02/01. (Secured by various U.S.
Treasury obligations and U.S.
Government Agency Bonds) $ 300 $ 300
-------- --------
TOTAL INVESTMENTS- 98.9% 27,391
Other Assets & Liabilities, Net- 1.1% 298
-------- --------
NET ASSETS- 100.0% $27,689
======== ========
* Non-income producing security.
See notes to financial statements.
158
SCHEDULE OF INVESTMENTS
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
SMALL CAP VALUE FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Apparel - 0.6%
Unifi, Inc. ............................................... 43,700 $ 371
Auto & Truck Parts - 1.3%
Modine Manufacturing Co. .................................. 12,500 345
TBC Corp* ................................................. 43,800 419
-------
764
Bank - 5.4%
Community First Bankshares,
Inc ...................................................... 37,500 862
First Republic Bank * ..................................... 30,900 757
Silicon Valley Bancshares* ................................ 26,300 579
Texas Regional Bancshares, Inc ............................ 24,100 971
-------
3,169
Business Services - 3.5%
Electro Rent Corp. * ...................................... 68,800 1,122
G&K Services, Inc. - Cl. A ................................ 18,800 506
McGrath Rentcorp .......................................... 18,000 434
-------
2,062
Chemical - 1.9%
Airgas, Inc. * ............................................ 46,900 558
Arch Chemicals, Inc. ...................................... 25,000 546
-------
1,104
Computer Software & Services - 2.3%
Analysts International Corp. .............................. 18,700 84
Packeteer, Inc. * ......................................... 28,100 352
Progress Software Corp.* .................................. 34,400 557
SPSS, Inc. * .............................................. 21,900 346
-------
1,339
Construction - 3.9%
Florida Rock Industries, Inc. ............................. 8,800 413
Insituform Technologies, Inc. - Cl. A * ................... 50,000 1,825
U.S. Aggregates, Inc. * ................................... 37,500 50
-------
2,288
Consumer Miscellaneous - 0.8%
CSS Industires, Inc. * .................................... 18,700 482
Container - 2.1%
Ivex Packaging Corp. * .................................... 40,600 771
Liqui-Box Corp. ........................................... 11,200 437
-------
1,208
Diversified Operations - 8.3%
Ameron International Corp. ................................ 4,400 294
AptarGroup, Inc. .......................................... 22,500 730
Culp, Inc. ................................................ 21,900 98
Dal Tile International , Inc. ............................. 25,100 465
Dan River Inc. * .......................................... 62,500 169
Deltic Timber Corp. ....................................... 13,300 383
Landauer, Inc ............................................. 12,500 375
Layne Christensen Co. * ................................... 18,800 160
Mathews International Corp.* .............................. 25,000 1,099
Myers Industries, Inc. .................................... 22,700 343
Packaged Ice, Inc. * ..................................... 53,100 114
SCP Pool Corp. * ......................................... 18,700 644
-------
4,874
Electric Power - 0.3%
West Hampshire Energy Services, Inc. ...................... 10,500 199
Electronic Products & Services - 4.6%
Analogic Corp. ............................................ 17,500 797
Brooks Automation, Inc. * ................................. 15,600 719
Littelfuse, Inc. * ....................................... 21,900 587
Methode Electronics, Inc. - Cl. A ......................... 21,900 188
Stratos Lightwave, Inc. ................................... 31,229 406
-------
2,697
Energy - Alternative Source - 1.7%
Woodward Governor Co. ..................................... 11,800 995
Financial Services - 5.2%
Allied Capital Corp. ...................................... 37,500 868
American Capital Strategies, Ltd .......................... 21,900 614
First Financial Fund Inc. * ............................... 47,000 619
Triad Guaranty, Inc. * ................................... 22,900 916
-------
3,017
Food, Beverage & Tobacco - 0.9%
American Italian Pasta Co. * ............................. 8,000 371
International Multifoods Corp. ............................ 6,200 129
-------
500
Health Care Products - 3.7%
Bone Care International, Inc.* ........................... 37,500 994
Owens and Minor, Inc. ..................................... 43,700 830
Sola International, Inc.* ................................. 25,000 353
-------
2,177
Household Appliances / Furnishings - 1.8%
Aaron Rents, Inc. ......................................... 31,300 532
Stanley Furniture Co., Inc. ............................... 20,000 538
-------
1,070
Housing - 0.9%
Skyline Corp. ............................................. 18,700 509
Insurance - 5.1%
Brown & Brown ............................................. 50,000 2,100
Markel Corp. * ........................................... 3,100 609
Presidential Life Corp. ................................... 12,500 280
-------
2,989
Insurance - Property & Casualty - 0.7%
Proassurance Corp. ........................................ 25,000 431
Machinery - 3.1%
Franklin Electric Co., Inc. ............................... 7,500 569
IDEX Corp. ................................................ 15,600 530
159
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
SMALL CAP VALUE FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Machinery - Continued
Thomas Industries, Inc. ................................... 25,000 $ 738
-------
1,837
Media - TV & Radio - 1.4%
Saga Communications, Inc. - Cl. A* ........................ 29,200 693
Sinclair Broadcast Group, Inc. ............................ 14,400 149
-------
842
Natural Gas Distribution - 0.7%
Vectren Corp. ............................................. 20,000 414
Oil - 1.9%
Newpark Resources, Inc. * ................................. 37,500 416
Tetra Technologies, Inc. * ................................ 28,100 687
-------
1,103
Oil - Equipment & Service - 1.8%
Carbo Ceramics, Inc. ...................................... 15,000 556
Lone Star Technologies, Inc.* ............................. 14,100 510
-------
1,066
Oil & Natural Gas Exploration & Production - 6.6%
Atwood Oceanics, Inc. * ................................... 9,400 330
Chieftan International, Inc. * ............................ 28,100 808
Forest Oil Corp. * ........................................ 20,600 577
HS Resources, Inc. * ...................................... 4,900 318
Penn Virginia Corp. ....................................... 18,800 618
XTO Energy, Inc. .......................................... 84,400 1,211
-------
3,862
Paper & Forest Products - 1.0%
Wausau-Mosinee Paper Corp. ................................ 43,800 565
Real Estate Investment Trust - 6.4%
Apartment Investment & Management Co. ..................... 6,200 299
Glenborough Realty Trust, Inc. ............................ 37,500 724
Innkeepers USA Trust ...................................... 37,500 449
JP Realty, Inc. ........................................... 25,000 612
Kilroy Realty Corp. ....................................... 15,600 454
LaSalle Hotel Properties .................................. 31,200 556
Sun Communities, Inc. ..................................... 18,700 661
-------
3,755
Real Estate Operations - 0.4%
The IT Group, Inc. * ...................................... 36,000 229
Retail - Department Stores - 7.5%
Casey's General Stores, Inc. .............................. 37,500 488
Freds , Inc. .............................................. 35,150 905
Hancock Fabrics, Inc. ..................................... 25,000 224
Haverty Furniture Co., Inc. ............................... 50,000 748
Rare Hospitality
International, Inc. * .................................... 37,500 847
Ruby Tuesday, Inc. ........................................ 68,800 1,176
-------
4,388
Shoe & Apparel Manufacturing - 1.1%
Stein Mart, Inc.* ......................................... 62,500 646
Steel - 1.0%
Gibraltar Steel Corp. ..................................... 28,100 551
Telecommunication Equipment - 0.5%
UTI Worlwide, Inc. ........................................ 17,000 271
Telephone - 2.5%
Black Hills Corp. ......................................... 11,200 450
Cleco Corp. ............................................... 28,700 653
Otter Tail Power Co. ...................................... 12,600 350
-------
1,453
Transportation Services - 2.2%
Hub Group Inc. * .......................................... 13,200 172
Landstar Systems, Inc. .................................... 11,300 769
Midwest Express Holdings, Inc.* ........................... 20,600 357
-------
1,298
-------
TOTAL COMMON STOCK- ............................ 93.1% 54,525
-------
Par
Value
(000's)
SHORT-TERM INVESTMENTS
Investments in joint trading account - 5.0%
Investments in joint trading account
3.97% due 07/02/01 $ 2,911 2,911
U.S. Treasury Bills - 1.8%
U.S. Treasury Bills 3.49% due 12/06/01 # .................. 1,100 1,083
------- -------
TOTAL SHORT-TERM INVESTMENTS- 6.8% 3,994
------- -------
TOTAL INVESTMENTS- 99.9% 58,519
Other Assets & Liabilities, Net- 0.1% 54
------- -------
NET ASSETS- 100.0% $58,573
======= =======
* Non-income producing security.
# All or a portion of the principle amount of this security was pledged to cover
initial margin requirements for open future contracts.
See notes to financial statements.
160
SCHEDULE OF INVESTMENTS
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
REAL ESTATE EQUITY FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Leisure & Recreation - 4.7%
Hilton Hotels Corp. ...................................... 10,900 $ 126
MeriStar Hospitality Corp. ............................... 93,050 2,210
Starwood Hotels & Resorts Worldwide Inc. ................. 141,600 5,279
--------
7,615
Real Estate - 0.7%
Weingarten Realty Investors .............................. 24,800 1,087
Real Estate Development - 1.7%
Catellus Development Corp.* .............................. 96,700 1,687
The Macerich Co. ......................................... 44,300 1,099
--------
2,786
Real Estate Investment Trust - 88.6%
Alexandria Real Estate ................................... 19,700 784
AMB Property Corp. ....................................... 119,400 3,076
AMLI Residential Properties Trust ........................ 50,700 1,247
Apartment Investment & Management Co. .................... 51,500 2,482
Archstone Communities Trust .............................. 219,800 5,667
Arden Realty Group, Inc. ................................. 137,200 3,663
Avalonbay Communities, Inc. .............................. 184,045 8,604
Boston Properties, Inc. .................................. 151,100 6,180
BRE Properties, Inc. ..................................... 51,200 1,551
Brookfield Properties Corp. .............................. 176,300 3,369
Cabot Industrial Trust .................................. 29,300 615
Camden Property Trust .................................... 62,000 2,275
CarrAmerica Realty Corp. ................................. 158,300 4,828
CBL & Associates Properties, Inc. ........................ 59,200 1,817
Centerpoint Properties Corp. ............................. 19,450 976
Charles E. Smith Residential Realty, Inc. ................ 95,600 4,794
Chateau Communities, Inc. ................................ 75,900 2,383
Cousins Properties, Inc. ................................. 77,250 2,074
Duke Realty Investments, Inc. ............................ 97,739 2,429
Equity Office Properties Trust ........................... 369,693 11,693
Equity Residential Properties Trust ...................... 147,300 8,330
Essex Property Trust, Inc. ............................... 65,500 3,246
Federal Realty Investment Trust .......................... 142,800 2,962
FelCor Lodging Trust, Inc. ............................... 88,500 2,071
First Industrial LP * .................................... 33,800 1,086
Frontline Capital Group .................................. 118,800 178
General Growth Properties ................................ 40,700 1,602
Host Marriott Corp. ...................................... 312,500 3,913
Kimco Realty Corp. ....................................... 50,000 2,368
Koger Equity, Inc. * ..................................... 10,400 172
Liberty Property Trust ................................... 81,200 2,404
Mack-Cali Realty Corp. ................................... 23,600 672
Manufactured Home Communities, Inc. ...................... 65,100 1,829
Pacific Gulf Properties, Inc. ............................ 22,300 109
Post Properties, Inc. .................................... 9,700 367
Prentiss Properties Trust ................................ 65,850 1,732
Prologis Trust ........................................... 156,659 3,559
PS Business Parks, Inc. .................................. 18,500 518
Public Storage, Inc. ..................................... 204,000 6,049
Reckson Associates Realty Corp. .......................... 7,700 177
Regency Centers Corp. .................................... 50,450 1,281
Shurgard Storage Centers, Inc. ........................... 22,000 688
Simon Property Group, Inc. ............................... 235,800 7,067
SL Green Realty Corp. .................................... 40,300 1,222
Spieker Properties, Inc. ................................. 132,400 7,937
Storage USA, Inc. ........................................ 10,000 360
Summit Properties, Inc. .................................. 14,900 400
Sun Communities, Inc. .................................... 500 18
Taubman Centers, Inc. .................................... 35,000 490
Trizec Hahn Corp. ........................................ 149,000 2,710
Vornado Realty Trust ..................................... 130,400 5,091
Washington Real Estate Investment Trust .................. 35,200 832
Wyndham International, Inc. .............................. 137,500 344
--------
142,291
Real Estate Operations - 1.6%
Rouse Co. ................................................ 89,200 2,556
--------
TOTAL COMMON STOCK- 97.3% 156,335
--------
Par
Value
(000's)
SHORT-TERM INVESTMENTS - 2.1%
Investment in joint trading account
3.97% due 07/02/01 ..................................... $ 3,401 3,401
--------- --------
TOTAL INVESTMENTS- 99.4% 159,736
Other Assets & Liabilities, Net- 0.6% 893
--------- --------
NET ASSETS- 100.0% $160,629
========= ========
* Non-income producing security.
See notes to financial statements.
161
SCHEDULE OF INVESTMENTS
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
GROWTH & INCOME FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Aerospace & Defense - 1.8%
Boeing Co. ........................................... 146,300 $ 8,134
General Dynamics Corp. ............................... 266,000 20,697
United Technologies Corp. ............................ 277,800 20,352
---------
49,183
Auto & Truck Parts - 0.3%
Lear Corp. * ........................................ 244,000 8,516
Automobile - 0.9%
Ford Motor Co. ....................................... 600,000 14,730
General Motors Corp. - Cl. H ......................... 506,658 10,260
---------
24,990
Bank - 5.0%
Bank of America Corp. ................................ 340,000 20,410
Bank of New York Co., Inc. ........................... 121,100 5,813
Comerica, Inc. ....................................... 232,800 13,409
Fifth Third Bancorp .................................. 107,900 6,479
FleetBoston Financial Corp. .......................... 226,600 8,939
JP Morgan Chase & Co. ................................ 400,000 17,840
Mellon Financial Corp. ............................... 341,400 15,705
State Street Corp. ................................... 53,600 2,653
US Bancorp ........................................... 1,236,000 28,169
Washington Mutual, Inc. .............................. 565,200 21,223
---------
140,640
Brokerage & Investment Management - 0.4%
Charles Schwab Corp. ................................. 3,900 60
Goldman Sachs Group, Inc. ............................ 45,900 3,938
Morgan Stanley, Dean Witter,
Discover & Co. ...................................... 128,300 8,241
---------
12,239
Chemical - 1.8%
Air Products & Chemicals,
Inc ................................................. 298,700 13,666
Dow Chemical Co. ..................................... 428,500 14,248
E.I. du Pont de Nemours &
Co .................................................. 125,230 6,041
Praxair, Inc. ........................................ 346,200 16,271
---------
50,226
Commercial Services - 0.9%
Avery Dennison Corp. ................................. 219,400 11,200
Concord EFS, Inc. .................................... 150,600 7,833
Omnicom Group, Inc. .................................. 22,400 1,926
TMP Worldwide, Inc. .................................. 60,800 3,648
---------
24,607
Computer Equipment - 6.0%
Brocade Communications
Systems, Inc. ....................................... 55,800 2,455
Dell Computer Corp. * ................................ 921,600 24,100
EMC Corp. ............................................ 115,100 3,344
Gateway, Inc. ........................................ 144,100 2,370
Intel Corp. .......................................... 2,077,100 60,755
International Business
Machines Corp. ...................................... 418,600 47,302
Lexmark International Group,
Inc. - Cl. A ........................................ 265,400 17,848
McData Corp. ......................................... 154,100 2,704
Veritas Software Corp.* .............................. 105,500 7,019
---------
167,897
Computer Software & Services - 8.2%
Adobe Systems, Inc. .................................. 183,100 8,606
Cadence Design Systems, Inc. ......................... 386,200 7,195
Check Point Software
Technologies, Ltd. * ................................ 105,200 5,320
Electronic Data Systems
Corp. * ............................................. 283,400 17,712
First Data Corp. ..................................... 192,900 12,394
Fiserv, Inc. ......................................... 156,100 9,987
Micromuse, Inc. * .................................... 119,200 3,336
Microsoft Corp. ...................................... 1,808,900 132,050
Oracle Corp.* ........................................ 886,000 16,834
Parametric Technology Corp. .......................... 42,400 593
Peoplesoft, Inc. ..................................... 109,900 5,410
Siebel Systems, Inc. * ............................... 112,000 5,253
SunGard Data Systems, Inc. ........................... 181,700 5,453
---------
230,143
Consumer Miscellaneous - 0.7%
Black & Decker Corp. ................................. 305,700 12,063
Harley-Davidson, Inc. ................................ 147,100 6,925
---------
18,988
Cosmetic & Personal Care - 1.6%
Avon Products, Inc. .................................. 244,100 11,297
Colgate-Palmolive Co. ................................ 164,900 9,727
Procter & Gamble Co. ................................. 176,000 11,229
Unilever NV - NY Shares .............................. 217,700 12,968
---------
45,221
Diversified Operations - 8.1%
Amgen, Inc. .......................................... 150,700 9,144
Danaher Corp. ........................................ 193,500 10,836
General Electric Co. ................................. 3,401,330 165,815
Tyco International, Ltd. ............................. 774,800 42,227
---------
228,022
Electric Power - 2.0%
Allegheny Energy, Inc. ............................... 241,800 11,667
Duke Energy Co. ...................................... 400,000 15,604
Exelon Corp. ......................................... 335,500 21,512
Mirant Corp. ......................................... 194,400 6,687
---------
55,470
Electrical Equipment - 0.2%
Best Buy Co., Inc. ................................... 106,800 6,784
162
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
GROWTH & INCOME FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Electronic Components - 0.1%
Electronic Arts, Inc. ................................. 28,400 $ 1,644
Electronic Products & Services - 4.9%
Analog Devices, Inc. .................................. 232,400 10,051
Applera Corporation - Applied Biosystems Group ........ 86,700 2,319
Applied Materials, Inc. * ............................. 357,300 17,544
Applied Micro Circuits Corp. * ........................ 133,900 2,303
Celestica, Inc. ....................................... 49,300 2,539
Cisco Systems, Inc. ................................... 1,483,100 26,992
Emulex Corp. .......................................... 78,800 3,184
Integrated Device Technology, Inc. .................... 55,800 1,768
KLA-Tencor Corp.* ..................................... 237,363 13,879
LSI Logic Corp. ....................................... 350,000 6,580
Marvell Technology Group, Ltd. * ...................... 140,600 3,782
Maxim Integrated Products, Inc. * ..................... 262,432 11,602
Sanmina Corp. * ....................................... 114,200 2,673
Tektronix, Inc. ....................................... 288,900 7,844
Texas Instruments, Inc. ............................... 476,500 15,010
Xilinx, Inc. * ........................................ 219,300 9,044
---------
137,114
Energy - Alternative Source - 0.3%
El Paso Corp. ......................................... 155,900 8,191
Financial Services - 0.7%
Providian Financial Corp. * ........................... 120,000 7,104
Stillwell Financial, Inc. ............................. 362,500 12,165
---------
19,269
Food, Beverage & Tobacco - 3.4%
Anheuser-Busch Cos., Inc. ............................. 247,200 10,185
Coca-Cola Co. ......................................... 300,000 13,500
Kraft Foods, Inc. CL A ................................ 163,800 5,078
Pepsi Bottling Group, Inc. ............................ 6,900 277
PepsiCo, Inc. ......................................... 549,800 24,301
Philip Morris Cos., Inc. .............................. 837,900 42,523
---------
95,864
Health Care Products - 12.5%
Abbott Laboratories ................................... 308,000 14,787
Allergan, Inc. ........................................ 132,500 11,329
American Home Products Corp. .......................... 608,200 35,543
Andrx Corp. * ......................................... 32,300 2,487
Bristol-Myers Squibb Co. .............................. 436,000 22,803
Eli Lilly & Co. ....................................... 112,400 8,318
Forest Laboratories, Inc. * ........................... 31,000 2,201
Genetech, Inc. * ...................................... 104,000 5,731
Ivax Corp. ............................................ 61,650 2,404
Johnson & Johnson ..................................... 1,057,704 52,885
King Pharmaceuticals, Inc. * .......................... 64,500 3,467
MedImmune, Inc. * ..................................... 108,900 5,140
Medtronic, Inc. ....................................... 173,600 7,987
Merck & Co., Inc. ..................................... 493,100 31,514
Pfizer, Inc. .......................................... 2,726,300 109,188
Pharmacia Corp. ....................................... 181,700 8,349
Schering-Plough Corp. ................................. 570,100 20,661
UnitedHealth Group, Inc. .............................. 105,700 6,527
---------
351,321
Health Care Services - 0.7%
Lincare Holdings, Inc. ................................ 137,400 4,123
Tenet Healthcare Corp. ................................ 130,000 6,707
Trigon Healthcare, Inc. ............................... 144,700 9,384
---------
20,214
Insurance - 4.1%
American International Group, Inc. .................... 407,500 35,045
Hartford Financial Services
Group, Inc. .......................................... 349,600 23,913
Lincoln National Corp. ................................ 412,200 21,331
St. Paul Cos., Inc. ................................... 381,100 19,318
Torchmark, Inc. ....................................... 210,100 8,448
XL Capital, Ltd. - Cl. A .............................. 78,900 6,478
---------
114,533
Leisure & Recreation - 0.2%
Sabre Group Holdings, Inc. ............................ 100,000 5,000
Media - TV & Radio - 5.2%
AOL Time Warner, Inc. * ............................... 1,636,250 86,722
BEA Systems, Inc. ..................................... 148,100 4,548
Clear Channel Communications, Inc. .................... 229,700 14,402
The Walt Disney Co. ................................... 487,300 14,078
Viacom, Inc. - Cl. B * ................................ 489,299 25,321
---------
145,071
Metals & Mining - 0.8%
Minnesota Mining &
Manufacturing Co. .................................... 197,100 22,489
Natural Gas Distribution - 0.9%
Enron Corp. ........................................... 509,900 24,985
Oil - 1.5%
Baker Hughes, Inc. .................................... 300,000 10,050
Royal Dutch Petroleum Co. - NY Shares ................. 540,100 31,472
---------
41,522
Oil & Natural Gas Exploration & Production - 4.3%
Chevron Corp. ......................................... 174,000 15,747
Exxon Mobil Corp. ..................................... 842,870 73,625
Kerr-McGee Corp. ...................................... 168,200 11,147
Transocean Sedco Forex, Inc. .......................... 50,450 2,081
USX-Marathon Group .................................... 572,500 16,894
---------
119,494
163
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
GROWTH & INCOME FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Paper & Forest Products - 0.4%
Kimberly-Clark Corp. ................................ 203,000 $ 11,348
Personal & Commercial Lending - 2.9%
Citigroup, Inc. ..................................... 1,549,000 81,849
Real Estate Operations - 0.1%
HomeStore.com, Inc. ................................. 39,800 1,391
Retail - Department Stores - 7.4%
Abercrombie & Fitch Co. ............................. 197,700 8,798
Bed Bath & Beyond, Inc. * ........................... 300,500 9,376
Home Depot, Inc. .................................... 559,600 26,049
Kohl's Corp. ........................................ 393,500 24,684
Lowe's Cos., Inc. ................................... 402,766 29,221
May Department Stores Co. ........................... 271,100 9,288
Talbots, Inc. ....................................... 128,000 5,600
Target Corp. ........................................ 338,300 11,705
TJX Cos., Inc. ...................................... 499,100 15,906
Wal-Mart Stores, Inc. ............................... 1,348,900 65,826
----------
206,453
Retail - Drug Stores - 0.6%
CVS Corp. ........................................... 263,900 10,187
Rite Aid Corp. ...................................... 15,000 135
Walgreen Co. ........................................ 210,700 7,182
----------
17,504
Retail - Food - 0.2%
Starbucks Corp. * ................................... 210,700 4,846
Telecommunication Equipment - 2.6%
Ciena Corp. * ....................................... 96,900 3,682
Comverse Technology, Inc. ........................... 219,400 12,528
Linear Technology Corp. ............................. 339,700 15,022
Micron Technology, Inc. ............................. 181,100 7,443
Nokia Oyj - ADR ..................................... 200,000 4,408
Qualcomm, Inc. * .................................... 382,000 22,339
RF Micro Devices, Inc. .............................. 105,000 2,832
Scientific-Atlanta, Inc. * .......................... 76,200 3,094
Sonus Networks, Inc. * .............................. 99,200 2,317
----------
73,665
Telecommunication Services - 3.2%
Broadwing, Inc. ..................................... 452,100 11,054
EchoStar Communications
Corp. - Cl. A* ..................................... 195,400 6,335
Sprint PCS (PCS Group) * ............................ 809,500 19,549
Verizon Communications .............................. 971,600 51,981
----------
88,919
Telephone - 2.3%
AT&T Corp. - Liberty Media
Group - Cl. A ...................................... 704,262 12,318
Qwest Communications
International, Inc. ................................ 1,080,300 34,429
SBC Communications, Inc. ............................ 196,800 7,884
Telephone and Data Systems, Inc. .................... 96,500 10,494
----------
65,125
U.S. Government Agencies - 1.4%
Federal National Mortgage Assoc. .................... 471,900 40,182
----------
TOTAL COMMON STOCK- 98.6% 2,760,919
----------
Par
Value
(000's)
SHORT-TERM INVESTMENTS
Investment in joint trading account - 1.6%
Investments in joint trading account
3.97% due 07/02/01 ................................. $ 45,184 45,184
Shares
Cash Equivalents - 0.4%
Navigator Securities Lending
Prime Portfolio ** 9,944,668 9,945
---------- ----------
TOTAL SHORT-TERM INVESTMENTS 2.0% 55,129
---------- ----------
TOTAL INVESTMENTS- 100.6% 2,816,048
Other Assets & Liabilities, Net- (0.6)% (16,058)
---------- ----------
NET ASSETS- 100.0% $2,799,990
========== ==========
ADR-american Depository Receipts.
* Non-income producing security.
** Represents investment of security lending collateral.
See notes to financial statements.
164
SCHEDULE OF INVESTMENTS
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
MANAGED FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Aerospace & Defense - 1.0%
General Dynamics Corp. (US) ............................. 120,200 $ 9,353
United Technologies Corp. (US) .......................... 233,660 17,118
--------
26,471
Auto & Truck Parts - 0.3%
Lear Corp. (US) ......................................... 144,500 5,043
Visteon Corp. (US) ...................................... 212,400 3,904
--------
8,947
Automobile - 0.8%
AutoNation, Inc. (US) ................................... 99,300 1,152
Ford Motor Co. (US) ..................................... 309,000 7,586
General Motors Corp. (US) ............................... 82,000 5,277
General Motors Corp. - Cl. H (US) ....................... 438,100 8,871
--------
22,886
Bank - 3.9%
Bank of America Corp. (US) .............................. 347,500 20,860
Bank of New York Co., Inc. (US) ......................... 85,100 4,085
Bank One Corp. (US) ..................................... 120,000 4,296
Comerica, Inc. (US) ..................................... 159,600 9,193
FleetBoston Financial Corp. (US) ........................ 143,900 5,677
JP Morgan Chase & Co. (US) .............................. 269,400 12,015
Mellon Financial Corp. (US) ............................. 139,524 6,418
TCF Financial Corp. (US) ................................ 100,000 4,631
US Bancorp (US) ......................................... 699,600 15,944
Washington Mutual, Inc. (US) ............................ 616,800 23,161
--------
106,280
Business Services - 0.1%
Interpublic Group Cos., Inc. (US) ....................... 59,200 1,738
Robert Half International, Inc. (US) .................... 61,000 1,518
--------
3,256
Chemical - 1.5%
Air Products & Chemicals, Inc. (US) ..................... 224,632 10,277
Dow Chemical Co. (US) ................................... 539,900 17,952
E.I. du Pont de Nemours & Co. (US) ...................... 76,500 3,690
Praxair, Inc. (US) ...................................... 196,200 9,221
--------
41,140
Commercial Services - 1.0%
Avery Dennison Corp. (US) ............................... 108,500 5,539
Concord EFS, Inc. (US) .................................. 83,700 4,353
Omnicom Group, Inc. (US) ................................ 147,100 12,651
Quintiles Transnational Corp. (US) ...................... 111,500 2,815
R.R. Donnelley & Sons Co. (US) .......................... 108,200 3,214
--------
28,572
Computer Equipment - 3.1%
Brocade Communications Systems, Inc. (US) ............... 22,300 981
Compaq Computer Corp. (US) .............................. 63,000 976
Dell Computer Corp. (US) ................................ 383,400 10,026
Hewlett-Packard Co. (US) ................................ 24,800 709
Intel Corp. (US) ........................................ 1,057,400 30,929
International Business Machines Corp. (US) .............. 253,700 28,668
Lexmark International Group, Inc. - Cl. A (US) .......... 190,000 12,778
--------
85,067
Computer Software & Services - 4.6%
Cadence Design Systems, Inc. (US) ....................... 229,400 4,274
CheckFree Corp. (US) .................................... 58,900 2,065
DoubleClick, Inc. (US) .................................. 107,500 1,501
Electronic Data Systems Corp. (US) ...................... 111,500 6,969
First Data Corp. (US) ................................... 186,800 12,002
Intuit, Inc. (US) ....................................... 187,100 7,482
Macromedia, Inc. (US) ................................... 64,900 1,168
Micromuse, Inc. (US) .................................... 58,100 1,626
Microsoft Corp. (US) .................................... 881,300 64,335
NCR Corp. (US) .......................................... 75,000 3,525
Oracle Corp. (US) ....................................... 559,800 10,636
Peoplesoft, Inc. (US) ................................... 30,000 1,477
SunGard Data Systems, Inc. (US) ......................... 169,000 5,072
VeriSign, Inc. (US) ..................................... 33,000 1,980
WebMethods, Inc. (US) ................................... 17,900 379
--------
124,491
Consumer Miscellaneous - 0.5%
Black & Decker Corp. (US) ............................... 185,000 7,300
Clorox Co. (US) ......................................... 122,200 4,136
Dollar General Corp. (US) ............................... 166,100 3,239
--------
14,675
Cosmetic & Personal Care - 0.8%
Avon Products, Inc. (US) ................................ 100,100 4,633
Colgate-Palmolive Co. (US) .............................. 120,000 7,079
Procter & Gamble Co. (US) ............................... 74,508 4,753
Unilever NV - NY Shares (US) ............................ 97,300 5,796
--------
22,261
Diversified Operations - 4.1%
Costco Wholesale Corp. (US) ............................. 115,200 4,733
Danaher Corp. (US) ...................................... 117,200 6,563
General Electric Co. (US) ............................... 1,452,100 70,790
Illinois Tool Works, Inc. (US) .......................... 32,100 2,032
Reynolds & Reynolds Co - Cl. A (US) ..................... 149,400 3,279
Tyco International, Ltd. (US) ........................... 451,300 24,596
--------
111,993
Electric Power - 1.9%
AES Corp. (US) .......................................... 151,900 6,539
Allegheny Energy, Inc. (US) ............................. 135,600 6,543
Calpine Corp. (US) ...................................... 95,100 3,595
Duke Energy Co. (US) .................................... 190,100 7,416
Edison International (US) ............................... 283,000 3,155
Emerson Electric Co. (US) ............................... 63,400 3,836
165
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
MANAGED FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Electric Power - Continued
Exelon Corp. (US) ..................................... 215,200 $ 13,798
Mirant Corp. (US) ..................................... 85,000 2,924
Northeast Utilities (US) .............................. 150,700 3,127
----------
50,933
Electronic Products & Services - 3.2%
Agere Systems, Inc. - Cl. A (US) ...................... 245,400 1,841
Agilent Technologies, Inc. (US) ....................... 33,000 1,073
Altera Corp. (US) ..................................... 60,000 1,740
Analog Devices, Inc. (US) ............................. 140,900 6,094
Applera Corporation - Applied
Biosystems Group (US) ............................... 216,200 5,783
Applied Materials, Inc. (US) .......................... 198,276 9,735
Applied Micro Circuits Corp. (US) ..................... 110,000 1,892
Bookham Technolgy PLC (US) ............................ 184,900 536
Cisco Systems, Inc. (US) .............................. 767,300 13,965
KLA-Tencor Corp. (US) ................................. 63,000 3,684
LSI Logic Corp. (US) .................................. 200,000 3,760
Maxim Integrated Products, Inc. (US) .................. 88,752 3,924
MIPS Technologies, Inc. - Cl. B (US) .................. 36,100 347
Novellus Systems, Inc. (US) ........................... 60,600 3,441
Philips Electronics NV (US) ........................... 131,000 3,462
PMC-Sierra, Inc. (US) ................................. 59,300 1,842
Tektronix, Inc. (US) .................................. 190,800 5,180
Teradyne, Inc. (US) ................................... 58,600 1,940
Texas Instruments, Inc. (US) .......................... 306,000 9,639
Waters Corp. (US) ..................................... 175,000 4,832
Xilinx, Inc. (US) ..................................... 84,900 3,501
----------
88,211
Energy - Alternative Source - 0.6%
Dynegy, Inc. - Cl.A (US) .............................. 241,300 11,220
El Paso Corp. (US) .................................... 117,700 6,184
----------
17,404
Engineering & Construction - 0.2%
Fluor Corp. (US) ...................................... 109,300 4,935
Financial Services - 0.4%
Household International, Inc. (US) .................... 75,000 5,003
Stillwell Financial, Inc. (US) ........................ 149,200 5,007
----------
10,010
Food, Beverage & Tobacco - 2.8%
Anheuser-Busch Cos., Inc. (US) ........................ 193,000 7,952
Archer Daniels Midland Co. (US) ....................... 325,400 4,230
Campbell Soup Co. (US) ................................ 159,300 4,102
Coca-Cola Co. (US) .................................... 143,800 6,471
General Mills, Inc. (US) .............................. 111,000 4,860
Kellogg Co. (US) ...................................... 296,200 8,590
Kraft Foods, Inc. CL A (US) ........................... 132,700 4,114
PepsiCo, Inc. (US) .................................... 282,884 12,503
Philip Morris Cos., Inc. (US) ......................... 426,300 21,635
Sara Lee Corp. (US) ................................... 164,548 3,116
----------
77,573
Health Care Products - 8.0%
Abbott Laboratories (US) .............................. 110,800 5,320
Allergan, Inc. (US) ................................... 97,100 8,302
American Home Products Corp. (US) ..................... 124,500 7,276
AstraZeneca Group PLC - ADR (US) ...................... 244,300 11,421
Becton, Dickinson & Co. (US) .......................... 42,400 1,517
Bristol-Myers Squibb Co. (US) ......................... 239,500 12,526
Forest Laboratories, Inc. (US) ........................ 121,800 8,648
Genetech, Inc. (US) ................................... 29,200 1,609
Guidant Corp. (US) .................................... 69,400 2,498
Johnson & Johnson (US) ................................ 589,316 29,466
Medtronic, Inc. (US) .................................. 296,300 13,633
Merck & Co., Inc. (US) ................................ 364,800 23,314
Millipore Corp. (US) .................................. 35,200 2,182
Pfizer, Inc. (US) ..................................... 1,724,700 69,074
Pharmacia Corp. (US) .................................. 220,000 10,109
Schering-Plough Corp. (US) ............................ 147,500 5,345
UnitedHealth Group, Inc. (US) ......................... 89,600 5,533
----------
217,773
Health Care Services - 0.6%
Lincare Holdings, Inc. (US) ........................... 178,000 5,342
Trigon Healthcare, Inc. (US) .......................... 111,900 7,257
Universal Health Services, Inc. - Cl B (US) ........... 89,000 4,049
----------
16,648
Insurance - 3.0%
Allstate Corp. (US) ................................... 100,000 4,399
American International Group,
Inc. (US) ............................................ 194,600 16,736
Cincinnati Financial Corp. (US) ....................... 94,000 3,713
Hartford Financial Services Group, Inc.
(US) ................................................. 234,300 16,026
Jefferson-Pilot Corp. (US) ............................ 72,300 3,494
Lincoln National Corp. (US) ........................... 187,600 9,708
St. Paul Cos., Inc. (US) .............................. 197,200 9,996
The PMI Group, Inc. (US) .............................. 35,000 2,543
Torchmark, Inc. (US) .................................. 144,500 5,810
XL Capital, Ltd. - Cl. A (US) ......................... 105,252 8,641
----------
81,066
Leisure & Recreation - 0.3%
Carnival Corp. (US) ................................... 80,900 2,484
Sabre Group Holdings, Inc. (US) ....................... 105,000 5,250
----------
7,734
Media - Publishing - 0.0%
Knight-Ridder, Inc. (US) .............................. 9,600 569
Media - TV & Radio - 3.4%
Adelphia Communications Corp. .........................
- Cl. A (US) ...................................... 3,800 156
AOL Time Warner, Inc. (US) ............................ 765,750 40,585
Cablevision Systems Corp. (US) ........................ 101,350 2,615
166
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
MANAGED FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Media - TV & Radio - Continued
Cablevision Systems Corp. -
Cl. A (US) .......................................... 135,900 $ 7,950
Charter Communications, Inc. -
Cl. A (US) .......................................... 90,700 2,118
Clear Channel Communications,
Inc. (US) .......................................... 77,000 4,828
Fox Entertainment Group, Inc. -
Cl. A (US) .......................................... 55,000 1,534
The Walt Disney Co. (US) .............................. 345,900 9,993
USA Networks, Inc. (US) ............................... 98,600 2,761
Viacom, Inc. - Cl. B (US) ............................. 385,800 19,965
---------
92,505
Metals & Mining - 0.7%
Alcoa, Inc. (US) ...................................... 208,600 8,219
Minnesota Mining & Manufacturing
Co. (US) ............................................. 89,300 10,189
---------
18,408
Natural Gas Distribution - 0.6%
Enron Corp. (US) ...................................... 217,200 10,643
Williams Cos., Inc. (US) .............................. 200,200 6,596
---------
17,239
Oil - 1.3%
Baker Hughes, Inc. (US) ............................... 274,000 9,179
Conoco, Inc. - Cl. A (US) ............................. 151,032 4,259
Royal Dutch Petroleum Co. -
NY Shares (US) .................................... 327,180 19,065
Weatherford International, Inc. (US) .................. 52,300 2,510
---------
35,013
Oil & Natural Gas Exploration & Production - 2.7%
Chevron Corp. (US) .................................... 77,600 7,023
Exxon Mobil Corp. (US) ................................ 531,200 46,400
Kerr-McGee Corp. (US) ................................. 50,900 3,373
Kinder Morgan Management LLC
SHS (US) ............................................. 33,500 2,295
Shell Transport & Trading Co. (US) .................... 108,100 5,441
Texaco, Inc. (US) ..................................... 32,400 2,158
Unocal Corp. (US) ..................................... 85,000 2,903
USX-Marathon Group (US) ............................... 120,900 3,568
---------
73,161
Oil - Equipment & Service - 0.1%
BJ Services Co. (US) .................................. 90,600 2,571
Paper & Forest Products - 0.3%
Kimberly-Clark Corp. (US) ............................. 156,500 8,748
Personal & Commercial Lending - 2.6%
Citigroup, Inc. (US) .................................. 961,400 50,801
USA Education, Inc. (US) .............................. 289,100 21,104
---------
71,905
Real Estate Investment Trust - 0.1%
Equity Office Properties Trust (US) ................... 60,000 1,898
Retail - Department Stores - 4.1%
Abercrombie & Fitch Co. (US) .......................... 143,100 6,368
Bed Bath & Beyond, Inc. (US) .......................... 198,000 6,178
Circuit City Stores, Inc. (US) ........................ 175,000 3,150
Gap, Inc. (US) ........................................ 51,300 1,488
Home Depot, Inc. (US) ................................. 258,552 12,036
Kohl's Corp. (US) ..................................... 209,100 13,117
Lowe's Cos., Inc. (US) ................................ 330,200 23,956
May Department Stores Co. (US) ........................ 160,700 5,505
Target Corp. (US) ..................................... 272,200 9,418
TJX Cos., Inc. (US) ................................... 239,200 7,623
Wal-Mart Stores, Inc. (US) ............................ 493,800 24,097
---------
112,936
Retail - Drug Stores - 0.4%
CVS Corp. (US) ........................................ 135,800 5,242
Walgreen Co. (US) ..................................... 133,200 4,549
---------
9,791
Retail - Food - 0.1%
McDonald's Corp. (US) ................................. 93,900 2,541
Steel - 0.2%
Nucor Corp. (US) ...................................... 92,700 4,532
Telecommunication Equipment - 0.7%
Comverse Technology, Inc. (US) ........................ 63,700 3,637
Linear Technology Corp. (US) .......................... 136,900 6,054
Nokia Oyj - ADR (US) .................................. 135,700 2,991
Qualcomm, Inc. (US) ................................... 126,800 7,415
---------
20,097
Telecommunication Services - 2.1%
Broadwing, Inc. (US) .................................. 237,100 5,797
Cox Communications, Inc. -
Cl. A (US) ......................................... 44,000 1,949
Sprint PCS (PCS Group) (US) ........................... 530,900 12,821
Verizon Communications (US) ........................... 672,400 35,974
---------
56,541
Telephone - 1.9%
AT&T Corp. (US) ....................................... 230,900 5,080
AT&T Corp. - Liberty Media Group -
Cl. A (US) ........................................... 851,300 14,889
AT&T Wireless Group (US) .............................. 280,000 4,578
Qwest Communications International,
Inc. (US) ............................................ 536,400 17,095
SBC Communications, Inc. (US) ......................... 177,000 7,091
Sprint Corp. (US) ..................................... 98,400 2,102
---------
50,835
Transportation Services - 0.4%
Canadian National Railway Co. (US) .................... 75,300 3,050
CNF Transportation, Inc. (US) ......................... 1,400 40
167
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
MANAGED FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Transportation Services - Continued
Union Pacific Corp. (US) .............................. 138,032 $ 7,579
----------
10,669
U.S. Government Agencies - 0.9%
Federal National
Mortgage Assoc. (US) ................................. 279,300 23,782
----------
TOTAL COMMON STOCK- ................................. 65.3% 1,782,067
----------
Par
Value
(000's)
PUBLICLY-TRADED BONDS
Aerospace & Defense - 0.1%
Lockheed Martin Corp. - Bonds (US)
8.5% due 12/01/29 ..................................... $ 2,943 3,264
Automobile - 0.4%
Ford Motor Co. - Bonds (US)
6.625% due 10/01/28 ................................... 13,024 11,234
Hertz Corp. (US)
7.625% due 08/15/07 ................................... 200 207
----------
11,441
Bank - 1.2%
Bank of America Corp. - Sr. Notes
(US)
7.125% due 09/15/06 ................................... 200 209
Bank of America Corp. (US)
7.4% due 01/15/11 ..................................... 4,225 4,390
Bank One Corp. - Notes (US)
6.5% due 02/01/06 ..................................... 700 709
Banponce Financial Corp. - Ser C. (US)
6.58% due 11/25/03 .................................... 8,900 9,097
Capital One Bank - Sr. Notes (US)
6.875% due 02/01/06 ................................... 200 195
Credit Suisse First Boston Mortgage
Securities Corp. (US)
7.545% due 04/15/10 ................................... 4,533 4,791
Credit Suisse First Boston, Inc. (US)
7.29% due 09/15/09 .................................... 8,062 8,406
J.P. Morgan & Co., Inc. - Sr. Notes (US)
5.75% due 02/25/04 .................................... 1,000 1,009
JP Morgan Chase & Co. - Sub Notes (US)
6.75% due 02/01/11 .................................... 200 200
Korea Development Bank - Notes (US)
7.125% due 04/22/04 ................................... 4,773 4,916
----------
33,922
Brokerage & Investment Management - 0.8%
Lehman Brothers Holdings, Inc. -
Notes (US)
6.625% due 04/01/04 ................................... 7,010 7,162
7.75% due 01/15/05 .................................... 8,062 8,482
Morgan Stanley Group, Inc. (US)
6.75% due 04/15/11 .................................... 4,850 4,816
Residential Funding and Mortgage
Securities Trust II (US)
6.43% due 04/25/16 .................................... 250 248
----------
20,708
Computer Equipment - 0.1%
International Business Machines Corp.
- Notes (US)
5.625% due 04/12/04 ................................... 2,870 2,914
Diversified Operations - 0.0%
EOP Operating LP (US)
7.75% due 11/15/07 .................................... 200 208
Electric Power - 0.2%
Exelon Corp. Sr Notes (US)
6.75% due 05/01/11 .................................... 3,575 3,519
Progress Energy, Inc. - Sr. Notes (US)
7.1% due 03/01/11 ..................................... 500 507
----------
4,026
Electrical Equipment - 0.0%
Progress Energy, Inc. - Sr. Notes (US)
7.75% due 03/01/31 .................................... 200 206
Finance - 0.0.%
Citibank Credit Card Issuance Trust -
Ser. 2000 Cl. C1 (US)
7.45% due 09/15/07 .................................... 250 258
Financial Services - 3.4%
Associates Corp. of North America -
Sr Notes (US)
6.25% due 11/01/08 .................................... 8,118 7,990
Capital One Financial Corp. - Notes (US)
7.25% due 12/01/03 .................................... 8,312 8,443
Chase Commercial Mortgage
Securities Corp. - Ser. 1997-1
Cl. A2 (US)
7.37% due 02/19/07 .................................... 10,722 11,214
Citigroup , Inc. (US)
7.25% due 10/01/10 .................................... 200 208
Citigroup, Inc. - Notes (US)
6.5% due 02/07/06 ..................................... 4,600 4,662
Goldman Sachs Group, Inc. (US)
6.875% due 01/15/11 ................................... 3,380 3,361
Green Tree Financial Corp. (US)
6.68% due 01/15/29 .................................... 7,043 7,186
168
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
MANAGED FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINUED
Financial Services - Continued
Green Tree Financial Corp. - Ser.
1996-8 Cl. A6 (US)
7.6% due 10/15/27 ..................................... $ 7,721 $ 8,100
Green Tree Financial Corp. - Ser.
1997-6 Cl. A7 (US)
7.14% due 01/15/29 .................................... 500 512
LB-UBS Commercial Mortgage Trust
- Ser. 2000-C4 Cl. A2 (US)
7.37% due 06/15/10 .................................... 15,318 16,024
Mortgage Capital Funding, Inc. - Ser
1996 - MC2 Cl. A1 (US)
6.758% due 02/20/04 ................................... 7,990 8,191
Nisource Finance Corp. (US)
7.875% due 11/15/10 ................................... 625 662
PNC Funding Corp. - Sub. Notes (US)
7.5% due 11/01/09 ..................................... 4,094 4,283
Residential Asset Securities Corp. (US)
6.11% due 05/25/24 .................................... 8,062 8,168
Salomon, Inc. - Sr Notes (US)
7.2% due 02/01/04 ..................................... 2,300 2,392
---------
91,396
Food, Beverage & Tobacco - 0.2%
Conagra Foods, Inc. - Notes (US)
7.5% due 09/15/05 ..................................... 500 519
7.875% due 09/15/10 ................................... 450 473
Nabisco, Inc. - Deb (US)
7.55% due 06/15/15 .................................... 700 713
Philip Morris Cos., Inc. - Debs. (US)
8.25% due 10/15/03 .................................... 3,055 3,231
---------
4,936
Foreign Governmental - 0.5%
Province of Ontario (CA)
7.75% due 06/04/02 .................................... 2,000 2,062
Province of Quebec - Debs (CA)
5.5% due 04/11/06 ..................................... 4,755 4,683
7.5% due 09/15/29 ..................................... 6,530 6,914
---------
13,659
Health Care Products - 0.2%
Beckman Instruments, Inc. - Sr. Notes (US)
7.1% due 03/04/03 ..................................... 4,837 4,908
Health Care Services - 0.6% Columbia/HCA
Healthcare Corp. (US)
6.91% due 06/15/05 .................................... 4,000 3,934
HCA-The Healthcare Co. - Sr. Notes (US)
7.875% due 02/01/11 ................................... 6,800 6,834
Tenet Healthcare Corp. - Sr. Notes (US)
8.0% due 01/15/05 ..................................... 3,950 4,068
United Healthcare - Notes (US)
7.5% due 11/15/05 ..................................... 200 209
---------
15,045
Insurance - 0.1%
Aetna Inc. - Sr Notes (US)
7.375% due 03/01/06 ................................... 450 445
Allstate Corp. (US)
7.2% due 12/01/09 ..................................... 200 208
Lincoln National Corp. - Notes (US)
7.0% due 03/15/18 ..................................... 200 192
Provident Companies, Inc. - Sr. Notes (US)
7.0% due 07/15/18 ..................................... 500 453
---------
1,298
Leisure & Recreation - 0.0%
MGM Mirage, Inc. (US)
8.5% due 09/15/10 ..................................... 200 208
Six Flags, Inc. - Sr Notes 144A (US)
9.5% due 02/01/09 ..................................... 500 501
---------
709
Media - TV & Radio - 1.2%
Belo Corp. - Sr Notes (US)
7.125% due 06/01/07 ................................... 500 494
Belo Corp. - Debs (US)
7.25% due 09/15/27 .................................... 750 641
CBS Corp. - Sr. Notes (US)
7.15% due 05/20/05 .................................... 3,525 3,671
Chancellor Media Corp. (US)
8.0% due 11/01/08 ..................................... 750 782
Charter Communications Holdings
LLC - Sr Disc. Notes 144A (US)
0.0% due 05/15/11 ..................................... 230 133
Charter Communications Holdings
LLC - Sr. Notes (US)
10.75% due 10/01/09 ................................... 500 524
Charter Communications Holdings
LLC - Sr Notes 144A (US)
10.0% due 05/15/11 .................................... 1,000 1,015
Clear Channel Communications,
Inc. (US)
7.65% due 09/15/10 .................................... 250 258
Comcast Cable Communications (US)
6.75% due 01/30/11 .................................... 500 489
Cox Radio, Inc. - Sr Notes (US)
6.625% due 02/15/06 ................................... 750 747
CSC Holdings, Inc. - Sr. Notes (US)
8.125% due 07/15/09 ................................... 5,000 4,949
Fox Sports Networks LLC - Sr. Disc.
Notes (US)
0.0% due 08/15/07 ..................................... 750 713
169
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
MANAGED FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINUED
Media - TV & Radio - Continued
Fox/Liberty Networks LLC - Sr Notes (US)
8.875% due 08/15/07 ..................................... $ 1,000 $ 1,040
Liberty Media Corp. - Bonds (US)
7.875% due 07/15/09 ..................................... 1,000 959
News America, Inc. - Debs. (US)
7.125% due 04/08/28 ..................................... 3,483 3,484
Radio one, Inc. - Sr Sub Notes 144A (US)
8.875% due 07/01/11 ..................................... 200 200
The Walt Disney Co. (US)
5.5% due 12/29/06 ....................................... 200 196
Time Warner, Inc. (US)
6.625% due 05/15/29 ..................................... 3,579 3,197
Time Warner, Inc. - Debs (US)
7.25% due 10/15/17 ...................................... 200 197
Time Warner, Inc. - Debs (US)
7.57% due 02/01/24 ...................................... 500 498
Time Warner, Inc. - Notes (US)
8.18% due 08/15/07 ...................................... 2,075 2,252
Viacom, Inc. (US)
7.7% due 07/30/10 ....................................... 5,200 5,484
-------
31,923
Natural Gas Distribution - 0.2%
Florida Gas Transmission Co. (US)
7.625% due 12/01/10 ..................................... 750 763
KN Energy, Inc. - Sr. Notes (US)
6.45% due 03/01/03 ...................................... 4,590 4,654
-------
5,417
Oil & Natural Gas Exploration & Production - 0.3%
Coastal Corp. (US)
7.75% due 06/15/10 ...................................... 500 511
Gulf Canada Resources, Ltd. - Sr. Notes (US)
8.35% due 08/01/06 ...................................... 4,460 4,856
Petroleum Geo-Services ASA - Notes (US)
7.5% due 03/31/07 ....................................... 2,463 2,441
-------
7,808
Paper & Forest Products - 0.0%
Fort James Corp. - Sr. Notes (US)
6.875% due 09/15/07 ..................................... 200 192
Paper Products - 0.0%
Greater Connecticut Consumer Loan
Trust - Notes Cl. A 2BRV 144A (US)
6.25% due 02/15/20 ...................................... 726 725
Personal & Commercial Lending - 3.6%
Asset Backed Securities Corp. - Series 2000-LB1 Cl AF2 (US)
7.57% due 03/21/24 ...................................... 6,795 7,003
Citigroup, Inc. (US)
6.5% due 01/18/11 ....................................... 8,685 8,620
Credit Based Asset Servicing - Sr 2000-CB4 Cl. M1 (US)
7.565% due 11/25/31 ..................................... 11,531 11,691
CS First Boston Securities Corp. (US)
6.91% due 01/15/08 ...................................... 5,735 5,901
EQCC Home Equity Loan Trust (US)
6.223% due 06/25/11 ..................................... 7,498 7,549
Ford Motor Credit Co. (US)
7.875% due 06/15/10 ..................................... 500 522
Ford Motor Credit Co. - Notes (US)
6.875% due 02/01/06 ..................................... 10,120 10,253
GE Capital Commercial Mortgage Corp. (US)
6.079% due 10/15/10 ..................................... 4,980 4,927
General Motors Acceptance Corp. (US)
7.5% due 07/15/05 ....................................... 7,618 7,965
Household Financial Corp. (US)
6.5% due 01/24/06 ....................................... 5,750 5,828
Household Finance Corp. - Notes (US)
6.0% due 05/01/04 ....................................... 5,020 5,068
6.75% due 05/15/11 ...................................... 5,500 5,426
LB Commercial Conduit Mortgage Trust (US)
5.87% due 08/15/06 ...................................... 5,154 5,174
MBNA Master Credit Card Trust (US)
6.6% due 11/15/04 ....................................... 1,000 1,022
Regional Diversified Funding, Ltd. (US)
9.25% due 03/15/30 ...................................... 1,000 993
Residential Asset Mortgage Trust (US)
7.21% due 11/25/19 ...................................... 6,158 6,188
Residential Asset Securities Corp. (US)
7.18% due 01/25/25 ...................................... 2,000 2,056
Sears Credit Account Master Trust - Ser 1998-2 Cl. A (US)
5.25% due 10/16/08 ...................................... 1,000 1,006
Structured Assets Securities Corp. (US)
8.538% due 07/15/27 ..................................... 456 477
-------
97,669
Pollution Control - 0.0%
Waste Management, Inc. - Sr Notes (US)
7.375% due 08/01/10 ..................................... 700 701
170
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
MANAGED FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINUED
Pollution Control - Continued
WMX Technologies, Inc. - Notes (US)
7.1% due 08/01/26 .................................... $ 500 $ 509
---------
1,210
Retail - Department Stores - 0.8%
Federated Department Stores, Inc. -
Sr. Notes (US)
8.5% due 06/15/03 .................................... 6,002 6,329
Office Depot, Inc.- Sr. Sub Notes
144A (US)
10.0% due 07/15/08 ................................... 200 195
Target Corp. (US)
6.35% due 01/15/11 ................................... 7,580 7,484
Wal Mart Stores, Inc. (US)
7.55% due 02/15/30 ................................... 7,405 8,062
---------
22,070
Retail - Food - 0.1%
The Kroger Co. (US)
6.8% due 04/01/11 .................................... 3,125 3,086
Telecommunication Equipment - 0.1%
American Tower Corp. - Sr. Notes
144A (US)
9.375% due 02/01/09 ................................... 900 846
BellSouth Capital Funding
- Debs. (US)
7.875% due 02/15/30 ................................... 1,540 1,640
Nortel Networks, Ltd. - Notes (US)
6.125% due 02/15/06 ................................... 325 281
Spectrasite Holdings, Inc. - Sr. Notes
Ser. B (US)
10.75% due 03/15/10 ................................... 500 420
---------
3,187
Telecommunication Services - 0.3%
AT&T Wireless Group - Sr. Notes
144A (US)
7.875% due 03/01/11 ................................... 200 201
Crown Castle International Corp. - Sr.
Notes (US)
10.75% due 08/01/11 ................................... 875 844
Motorola, Inc. - Notes (US)
6.75% due 02/01/06 ................................... 825 780
Tellus Corp. - Notes (US)
7.5% due 06/01/07 .................................... 250 255
8.0% due 06/01/11 .................................... 400 409
Vodafone Group PLC - Notes (US)
7.625% due 02/15/05 ................................... 500 525
Worldcom, Inc. NT (US)
7.5% due 05/15/11 .................................... 6,665 6,490
---------
9,504
Telephone - 0.7%
AT&T Corp. - Notes (US)
5.625% due 03/15/04 ................................... 2,000 1,994
6.5% due 03/15/29 ..................................... 1,800 1,537
CenturyTel, Inc. - Sr. Notes
Ser. H (US)
8.375% due 10/15/10 ................................... 2,250 2,346
MCI WorldCom, Inc. - Notes (US)
7.75% due 04/01/07 .................................... 5,289 5,451
Sprint Capital Corp. (US)
7.625% due 01/30/11 ................................... 5,390 5,348
U.S. West Capital Funding, Inc. (US)
6.875% due 07/15/28 ................................... 1,849 1,628
---------
18,304
Transportation Services - 0.0%
International Shipholding Corp. - Sr. Notes
Ser. B (US)
7.75% due 10/15/07 .................................... 1,000 890
Teekay Shipping Corp. - Sr Notes 144A (US)
8.875% due 07/15/11 ................................... 200 202
---------
1,092
U.S. Government Agencies - 14.8%
Federal Home Loan Bank- Discount Note (US)
5.25% due 02/13/04 .................................... 2,000 2,014
Federal Home Loan Mortgage Corp. -
Sr Notes (US)
5.8% due 09/02/08 ..................................... 1,500 1,485
Federal National Mortgage
Assoc. (US)
4.75% due 03/15/04 .................................... 9,000 8,958
6.0% due 05/15/08 ..................................... 3,400 3,422
6.0% due 07/25/16 ..................................... 970 955
6.0% due 07/25/31 ..................................... 38,287 36,744
6.375% due 06/15/09 ................................... 1,000 1,020
6.5% due 08/01/13 ..................................... 1,653 1,662
6.5% due 09/01/30 ..................................... 3,729 3,670
6.5% due 05/01/31 ..................................... 9,036 8,891
6.5% due 07/25/31 ..................................... 65,843 64,793
6.5% due 07/25/16 ..................................... 23,244 23,302
6.625% due 11/15/10 ................................... 15,000 15,497
6.75% due 08/15/02 .................................... 10,267 10,554
7.0% due 11/01/30 ..................................... 3,973 3,990
7.0% due 06/01/31 ..................................... 1,000 1,004
7.0% due 0725/31 ...................................... 61,208 61,476
7.25% due 05/15/30 .................................... 4,200 4,545
7.5% due 11/01/30 ..................................... 3,983 4,064
7.5% due 12/01/30 ..................................... 2,416 2,465
7.5% due 06/01/31 ..................................... 2,000 2,041
7.5% due 07/25/16 ..................................... 19,461 20,015
7.5% due 07/25/31 ..................................... 49,730 50,740
8.0% due 12/01/29 ..................................... 2,348 2,425
171
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
MANAGED FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - Continued
U.S. Government Agencies - Continued
8.0% due 07/25/31 ..................................... $ 27,054 $ 27,942
Federal National Mortgage Assoc. -
Notes (US)
7.0% due 07/15/05 ..................................... 10,600 11,200
GMAC Home Loan Trust (US)
6.04% due 09/25/26 .................................... 7,500 7,563
Government National Mortgage Assoc. (US)
6.0% due 10/15/28 ..................................... 3,891 3,766
7.5% due 10/15/30 ..................................... 3,021 3,097
7.5% due 11/15/30 ..................................... 859 881
7.5% due 12/15/31 ..................................... 10,892 11,168
8.0% due 11/15/30 ..................................... 4,356 4,513
----------
405,412
U.S. Governmental - 3.4%
U.S. Treasury - Bonds (US)
5.0% due 02/15/11 ..................................... 8,000 7,761
5.25% due 02/15/29 .................................... 21,835 19,965
6.25% due 05/15/30 .................................... 8,000 8,474
6.75% due 08/15/26 .................................... 9,825 10,895
7.5% due 11/15/16 ..................................... 1,500 1,748
8.875% due 08/15/17 ................................... 13,100 17,196
U.S. Treasury - Notes (US)
4.25% due 05/31/03 .................................... 1,400 1,400
4.625% due 05/15/06 ................................... 6,500 6,411
5.625% due 02/15/06 ................................... 1,500 1,540
5.625% due 05/15/08 ................................... 4,350 4,521
5.75% due 08/15/10 .................................... 4,100 4,195
6.25% due 02/15/07 .................................... 3,750 3,957
6.375% due 08/15/02 ................................... 3,250 3,334
6.875% due 05/15/06 ................................... 1,250 1,348
----------
92,745
----------
TOTAL PUBLICLY-TRADED BONDS 33.3% 909,242
----------
SHORT-TERM INVESTMENTS
Investment in joint trading account - 12.6%
Investment in joint trading account
3.97% due 07/02/01 ................................. 342,997 342,997
Cash Equvalents - 1.6%
Navigator Securities Lending
Prime Portfolio ** ................................ 43,710,715 43,710
---------- ----------
TOTAL SHORT-TERM INVESTMENTS 14.2% 386,707
---------- ----------
TOTAL INVESTMENTS- 112.8% 3,078,016
Other Assets & Liabilities, Net- (12.8)% (348,152)
---------- ----------
NET ASSETS- 100.0% $2,729,864
========== ==========
ADR-American Depository Receipts.
144A - Pursuant to Rule 144A under the Securities Act of 1993, these securities
may be resold in transactions exempt from registration, normally to qualified
institutional buyers. At June 30, 2001, securities aggregated $4,018 or .15%
of net assets of the Fund.
**Represents investment of security lending collatral.
See note to financial statements.
SUMMARY OF LONG-TERM SECURITIES BY COUNTRY
Market % of
Country Value Long-Term
Abbreviation (000)'s Investments
Cash Equivalents - Continued
United States ......................... US $2,677,650 99.5%
Canada ................................ CA 13,659 0.5
---------- ----------
$2,691,309 100.0%
========== ==========
172
SCHEDULE OF INVESTMENTS
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
SHORT-TERM BOND FUND
Market
Name of Issuer Shares Value
(000's)
PUBLICLY-TRADED BONDS
Aerospace/Defense - 1.3%
CWABS , Inc.
7.74% due 08/25/17 ...................................... $ 1,500 $ 1,534
Automobile - 5.2%
Ford Credit Auto Owner Trust
7.13% due 07/15/04 ...................................... 2,500 2,572
Premier Auto Trust
5.82% due 10/08/03 ...................................... 3,335 3,386
--------
5,958
Bank - 5.3%
BankBoston Corp. - Sr. Notes
6.125% due 03/15/02 ..................................... 1,900 1,924
Banponce Corp. - Notes
6.54% due 11/06/01 ...................................... 1,000 1,009
First Union Corp. - Notes
6.95% due 11/01/04 ...................................... 500 518
J.P. Morgan & Co., Inc. - Sr. Notes
5.75% due 02/25/04 ...................................... 1,000 1,009
Star Banc Corp. - Notes
5.875% due 11/01/03 ..................................... 600 606
Westpac Banking Corp. - Sub. Debs.
9.125% due 08/15/01 ..................................... 1,000 1,006
--------
6,072
Brokerage & Investment Management - 4.6%
Donaldson, Lufkin & Jenrette, Inc. -
Sr. Notes
5.875% due 04/01/02 ..................................... 1,900 1,920
Lehman Brothers Holdings, Inc. -
Notes
6.625% due 04/01/04 ..................................... 470 480
Morgan Stanley, Dean Witter,
Discover & Co.
5.625% due 01/20/04 ..................................... 500 502
Residential Funding and Mortgage
Securities Trust II
5.37% due 02/25/15 ...................................... 2,000 1,996
5.64% due 07/25/14 ...................................... 400 403
--------
5,301
Computer Equipment - 0.4%
International Business Machines Corp. - Notes
5.625% due 04/12/04 ..................................... 500 508
Cosmetics & Personal Care - 1.7%
Dial Corp. - Notes
5.9% due 10/25/01 ....................................... 2,000 1,999
Diversified Operations - 1.3%
CMS Panhandle Holding - Sr. Notes
6.125% due 03/15/04 ..................................... 1,000 983
El Paso Energy Corp. - Sr. Notes
6.625% due 07/15/01 ..................................... 500 501
--------
1,484
Electric Power - 0.4%
Niagara Mohawk Power Corp. - Sr. Notes
7.25% due 10/01/02 ...................................... 499 508
Financial Services - 9.2%
Associates Corp. of North America
- Sr. Notes
5.75% due 11/01/03 ...................................... 1,450 1,462
Chase Credit Card Master Trust
- Cl. A 1998-3
6.0% due 08/15/05 ....................................... 1,075 1,099
CIT Group, Inc.
5.625% due 05/17/04 ..................................... 1,000 997
General Electric Capital Corp. ..........................
7.5% due 05/15/05 ....................................... 3,150 3,365
General Motors Acceptance Corp. -
Notes
7.48% due 02/28/03 ...................................... 1,200 1,241
Green Tree Financial Corp. - Ser
1996-8 Cl. A6
7.6% due 10/15/27 ....................................... 680 713
Lehman Brothers Holdings, Inc. -
Notes
6.625% due 02/05/06 ..................................... 600 611
Salomon, Inc. - Sr. Notes
7.2% due 02/01/04 ....................................... 500 520
U.S. West Capital Funding, Inc. .........................
6.875% due 08/15/01 ..................................... 500 501
--------
10,509
Food, Beverage & Tobacco - 0.6%
Philip Morris Cos., Inc. - Debs.
8.25% due 10/15/03 ...................................... 640 677
Foreign Governmental - 6.1%
Province of Ontario - Canada
7.75% due 06/04/02 ...................................... 3,000 3,093
Province of Quebec - Canada
5.5% due 04/11/06 ....................................... 4,000 3,940
--------
7,033
Healthcare Products - 1.3%
Beckman Instruments, Inc. - Sr. Notes
7.1% due 03/04/03 ....................................... 1,475 1,497
173
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
SHORT-TERM BOND FUND
Market
Name of Issuer Shares Value
(000's)
PUBLICLY-TRADED BONDS - CONTINUED
Healthcare Services - 0.8%
Columbia/HCA Healthcare Corp.
6.91% due 06/15/05 ...................................... $ 500 $ 492
Tenet Healthcare Corp. - Sr
Notes
8.625% due 12/01/03 ..................................... 360 375
--------
867
Machinary - 1.4%
Ingersoll Rand Co. - Notes
5.75% due 02/14/03 ...................................... 1,300 1,310
6.25% due 05/15/06 ...................................... 350 351
--------
1,661
Media - T.V. & Radio - 1.9%
Continental Cablevision - Sr. Notes
8.5% due 09/15/01 ....................................... 1,010 1,017
Turner Broadcasting Systems , Inc. -
Sr. Notes
7.4% due 02/01/04 ....................................... 1,144 1,191
--------
2,208
Natural Gas Distribution - 1.6%
Enron Corp. - Debs.
9.125% due 04/01/03 ..................................... 500 530
KN Energy, Inc. - Sr. Notes
6.45% due 03/01/03 ...................................... 1,300 1,318
--------
1,848
Oil - 1.8%
Coastal Corp. - Sr. Notes
8.125% due 09/15/02 ..................................... 500 517
Conoco, Inc. - Notes
5.9% due 04/15/04 ....................................... 1,550 1,569
--------
2,086
Oil & Natural Gas Exploration & Production - 1.9%
Gulf Canada Resources, Ltd. - Sr. Notes
8.35% due 08/01/06 ...................................... 170 185
Occidental Petroleum Corp. - Notes
8.5% due 11/09/01 ....................................... 1,000 1,012
Petroleum-Geo Services ASA - Bonds
6.25% due 11/19/03 ...................................... 1,000 987
--------
2,184
Personal & Commercial Lending - 8.7%
American General Finance Corp. - Notes
5.75% due 11/23/01 ...................................... 1,270 1,280
Asset Backed Securities Corp. - Ser.
2000 Cl. AF2
Asset Backed Securities Corp. - Ser.
2000 Cl. AF2
7.57% due 03/21/24 ...................................... 177 182
Countrywide Funding Corp.
5.25% due 06/15/04 ...................................... 500 498
5.25% due 05/22/03 ...................................... 1,000 1,001
Covenant Transport, Inc. - Cl. A
7.6% due 12/15/29 ....................................... 252 261
Ford Motor Credit Co. - Notes
6.875% due 02/01/06 ..................................... 1,110 1,124
Ford Motor Credit Co. - Sr. Notes
6.125% due 03/20/04 ..................................... 1,500 1,514
Green Tree Financial Corp. - Ser.
1996-F
7.3% due 01/15/28 ....................................... 23 23
Household Finance Corp. - Notes
6.0% due 05/01/04 ....................................... 2,000 2,019
MBNA Master Credit Card Trust
6.6% due 11/15/04 ....................................... 935 956
Money Store Home Equity Trust -
Ser. 1996-B A7
7.55% due 02/15/20 ...................................... 71 72
Money Store Home Equity Trust -
Ser. 1997-D AF3
6.345% due 11/15/21 ..................................... 55 55
Residential Asset Mortgage Trust
7.21% due 11/25/19 ...................................... 1,087 1,092
--------
10,077
Retail - Department Stores - 1.0%
Federated Department Stores, inc . - Sr.
Notes
8.5% due 06/15/03 ....................................... 1,090 1,149
Retail - Food - 1.0%
Safeway, Inc. - Notes
7.05% due 09/15/02 ...................................... 1,100 1,120
Telecommunication Services - 3.6%
Cox Communications, Inc. - Notes
7.0% due 08/15/01 ....................................... 1,100 1,502
Worldcom, Inc. Sr. Notes
6.125% due 08/15/01 ..................................... 1,500 1,502
7.55% due 04/01/04 ...................................... 1,100 1,133
--------
4,139
U.S. Government Agencies - 20.3%
Federal Home Loan Bank
8.0% due 06/01/10 ....................................... 969 1,006
Federal Home Loan Mortgage Corp.
7.75% due 01/15/21 ...................................... 32 32
Federal National Mortgage Assoc.
6.375% due 10/15/02 ..................................... 7,500 7,696
174
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
SHORT-TERM BOND FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINUED
U.S. Government Agencies - Continued
6.5% due 09/01/02 .................................... $ 1,134 $ 1,147
7.0% due 01/01/03 .................................... 3,406 3,452
7.0% due 12/01/10 .................................... 1,490 1,522
Federal National Mortgage Assoc. - Notes
4.75% due 11/14/03 ................................... 8,500 8,496
---------
23,351
U.S. Governmental - 12.8%
U.S. Treasury - Bonds
5.875% due 11/15/04 .................................. 4,650 4,809
U.S. Treasury - Notes
4.75% due 11/15/03 ................................... 4,530 4,511
5.875 due 02/15/04 ................................... 2,810 2,903
6.625% due 07/31/01 .................................. 2,500 2,506
---------
14,729
---------
TOTAL PUBLICLY-TRADED-BONDS .......................... 94.2% 106,444
---------
SHORT-TERM INVESTMENTS
Investment in joint trading account - 4.7%
Investment in joint trading account
3.97% due 07/02/01 ................................... 5,573 5,373
Shares
Cash Equivalents - 10.2%
Navigator Securities Lending Prime
Portfolio ** 11,815,749 11,816
------------ ---------
TOTAL SHORT-TERM INVESTMENTS 14.9% 17,189
------------ ---------
TOTAL INVESTMENTS- 109.1% 125,688
Other Assets & Liabilities, Net- (9.1)% (10,504)
------------ ---------
NET ASSETS- 100.0% $115,184
============ =========
** Represents investment of security lending collateral.
See notes to financial statements.
175
SCHEDULE OF INVESTMENTS
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
SMALL CAP EQUITY FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Aerospace & Defense - 0.5%
Armor Holdings, Inc. * ................................. 26,400 $ 396
Apparel - 0.1%
Charlotte Russe Holding, Inc. ........................... 4,000 107
Auto & Truck Parts - 2.2%
CSK Auto Corp. .......................................... 34,500 286
Polaris Industries Inc. ................................. 29,500 1,351
--------
1,637
Automobile - 1.3%
ANC Rental Corp. * ..................................... 58,400 175
Oshkosh Truck Corp. ..................................... 18,200 806
--------
981
Bank - 3.3%
Citizens Banking Corp. .................................. 1,600 47
Community Bankshares, Inc. .............................. 13,800 199
First Midwest Bancorp, Inc. ............................. 12,200 362
Fulton Financial Corp. .................................. 16,590 339
Net.B@nk, Inc. * ....................................... 38,900 440
San Juan Basin Royalty Trust ............................ 49,600 629
Waypoint Financial Corp. * ............................. 38,800 485
--------
2,501
Brokerage & Investment Management - 0.1%
America First Mortgage Investments, Inc. ................ 11,000 82
Building Materials - 0.8%
The Scotts Co. - Cl A ................................... 13,800 572
Business Services - 0.6%
On Assignment, Inc. ..................................... 10,600 191
Resources Connection, Inc. .............................. 9,000 232
--------
423
Chemical - 0.8%
OM Group, Inc. .......................................... 4,900 275
Spartech Corp. .......................................... 13,900 336
--------
611
Commercial Services - 2.9%
HeadHunter.net, Inc.* ................................... 48,300 226
Korn/Ferry International * ............................. 8,000 124
Official Payments Corp. * ............................... 30,700 158
Power One, Inc. ......................................... 30,000 499
Quanta Services, Inc.* .................................. 25,000 551
RPM, Inc. ............................................... 36,400 335
Steiner Leisure, Ltd. * ................................. 15,000 300
--------
2,193
Computer Equipment - 0.5%
Documentum, Inc. * ..................................... 17,500 226
UNOVA, Inc. * ........................................... 26,000 179
--------
405
Computer Software & Services - 8.3%
Click Commerce, Inc.* ................................... 31,800 286
click2learn.com, Inc. * ................................. 31,900 52
CNet Networks, Inc. ..................................... 18,000 234
Cognizant Technology Solutions Corp ..................... 5,000 212
Digex, Inc. * ........................................... 16,800 218
Digital Insight Corp. 8 ................................. 20,400 451
Extensity, Inc. * ....................................... 20,700 209
Harris Interactive, Inc. * ............................. 31,900 80
Informax, Inc. * ....................................... 18,800 134
Ixia * ................................................. 10,900 207
MatrixOne, Inc. * ....................................... 18,200 422
MicroStrategy, Inc. * ................................... 50,400 141
Moldflow Corp. * ....................................... 15,300 236
National Information Consortium, Inc. * ................. 61,800 113
NetIQ Corp. * ........................................... 25,800 807
Numerical Technologies, Inc. ............................ 10,000 210
PC-Tel, Inc. * ......................................... 16,400 151
Pinnacle Systems, Inc. .................................. 42,000 254
Pixar, Inc. ............................................. 4,600 188
Riverdeep Group PLC - ADR * ............................. 9,700 272
RSA Security, Inc.* ..................................... 13,250 410
Saba Software, Inc. ..................................... 10,900 179
Selectica, Inc. * ....................................... 19,900 85
SignalSoft Corp. ........................................ 11,900 137
Via Networks, Inc. * ................................... 46,400 71
Vignette Corp. * ....................................... 100 1
WebMethods, Inc. ........................................ 5,700 121
Websense, Inc. * ....................................... 14,200 284
Witness Systems, Inc. * ................................. 14,100 155
--------
6,320
Consumer Miscellaneous - 1.4%
Libbey, Inc. ............................................ 21,600 858
NetRatings, Inc. * ..................................... 15,900 229
--------
1,087
Diversified Operations - 1.9%
Donaldson Co., Inc. ..................................... 24,400 760
Ionics, Inc. * ......................................... 16,100 507
Wesco International, Inc. * ............................. 23,600 215
--------
1,482
Electrical Equipment - 4.6%
Advanced Energy Industries, Inc.* ....................... 24,400 1,007
Integrated Electrical Services, Inc. * .................. 29,500 288
LTX Corp. ............................................... 40,500 1,035
Pentair, Inc. ........................................... 25,700 869
Zygo Corporation ........................................ 13,600 302
--------
3,501
Electronic Products & Services - 15.6%
American Superconductor Corp.* ......................... 15,400 397
Anadigics, Inc.* ........................................ 34,300 789
Anaren Micro Circuits, Inc. ............................. 23,300 466
176
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
SMALL CAP EQUITY FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Electronic Products & Services - Continued
ASM International N.V. * ................................ 26,500 $ 526
BE Semiconductor Industries ............................. 7,000 47
Bookham Technology PLC .................................. 17,000 49
Cymer, Inc. * ........................................... 27,200 688
DuPont Photomasks, Inc. ................................. 4,600 222
Electro Scientific Industries, Inc.* .................... 24,900 949
Electroglas, Inc. * ..................................... 38,800 687
EMCORE Corp. * .......................................... 30,700 944
Exar, Corp.* ............................................ 31,500 622
FEI Co. ................................................. 5,500 226
GlobeSpan, Inc.* ........................................ 20,000 292
Helix Technology Corp. .................................. 25,900 789
Microtune, Inc. * ....................................... 18,600 409
Nanometrics, Inc. * ..................................... 19,700 542
Newport Corp. ........................................... 13,000 345
ON Semiconductor Corp .* ................................ 51,400 234
Parthus Technologies PLC - ADR * ........................ 7,200 56
Power Integrations, Inc. * .............................. 25,300 395
Sawtek, Inc. * .......................................... 19,600 461
SpeedFAm-IPEC, Inc. * ................................... 20,800 66
Therma-Wave, Inc. * ..................................... 33,200 633
Transmeta Corp. ......................................... 9,000 50
TranSwitch Corp. ........................................ 18,000 198
Veeco Instruments Inc. * ................................ 10,100 401
Virata, Corp. ........................................... 37,400 443
--------
11,926
Energy - Alternative Source - 1.1%
Massey Energy Co. ....................................... 10,100 199
Rayovac Corp.* .......................................... 19,100 407
Valence Technology, Inc. * .............................. 37,000 238
--------
844
Engineering & Construction - 0.5%
York International Corp. ................................ 11,500 403
Financial Services - 2.1%
American Capital Strategies, Ltd. ....................... 30,600 859
BOK Financial Corp. ..................................... 10,000 269
LendingTree, Inc. 8 ..................................... 32,500 207
Medallion Financial Corp. ............................... 24,000 246
--------
1,581
Food, Beverage & Tobacco - 3.5%
Adolph Coors Co. - Cl. B ................................ 8,000 401
Corn Products International, Inc. ....................... 19,700 630
Dreyer's Grand Ice Cream, Inc. .......................... 23,000 642
Flowers Foods, Inc. * ................................... 4,520 142
Suiza Foods Corp. * ..................................... 15,400 818
--------
2,633
Health Care Products - 9.0%
3 Dimensional Pharmaceuticals, Inc.* .................... 14,200 136
Aclara Biosciences, Inc. * .............................. 14,200 110
Antigenics, Inc. ........................................ 22,800 450
Aviron * ................................................ 10,800 616
Charles River Laboratories * ............................ 9,600 334
ChromaVision Medical Systems, Inc. * .................... 35,600 179
Diversa Corp. ........................................... 17,200 350
Durect Corp. 8 .......................................... 17,100 222
Exelixis, Inc. * ........................................ 41,000 778
Genaissance Pharmaceuticals, Inc. * ..................... 14,800 208
Heska Corp. * ........................................... 89,900 96
ILEX Oncology, Inc. * ................................... 19,600 586
Illumina, Inc. .......................................... 23,500 277
Lexicon Genetics, Inc.* ................................. 18,500 231
Scios, Inc. 8 ........................................... 12,800 320
Tanox, Inc.* ............................................ 11,400 360
Trimeris, Inc.* ......................................... 14,800 741
Unilab Corp. ............................................ 1,200 30
Vical, Inc.* ............................................ 23,900 334
ViroPharma, Inc.* ....................................... 14,700 500
--------
6,858
Health Care Services - 2.3%
Gene Logic, Inc. ........................................ 19,700 430
Kendle International, Inc. * ............................ 24,200 485
LifePoint Hospitals, Inc. * ............................. 12,000 531
Orthodontic Centers of America, Inc. * .................. 10,500 319
--------
1,765
Insurance - 4.1%
Everest Re Group, Ltd. .................................. 17,100 1,279
Fidelity National Financial, Inc. ....................... 29,800 732
First American Financial Corp. .......................... 24,100 456
W.R. Berkley Corp. ...................................... 6,000 249
Willis Group Holdings, Ltd. ............................. 2,700 48
Zenith National Insurance Corp. ......................... 14,000 378
--------
3,142
Leisure & Recreation - 3.8%
Cheap Tickets, Inc. * ................................... 40,300 609
Hotel Reservations Network, Inc. - Cl. A * .............. 5,700 265
International Speedway Corp. - Cl A ..................... 11,200 471
MeriStar Hospitality Corp. .............................. 18,200 432
Speedway Motorsports, Inc. * ............................ 27,700 698
World Wrestling Federation
Entertainment, Inc. .................................... 33,100 457
--------
2,932
Machinery - 0.6%
Columbus McKinnon Corp. ................................. 25,200 284
SonoSite, Inc. .......................................... 7,600 147
--------
431
Media - Publishing - 0.6%
Banta Corp. ............................................. 15,200 445
Media - TV & Radio - 6.8%
ACTV, Inc. * ............................................ 8,200 27
177
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
SMALL CAP EQUITY FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Media - TV & Radio - Continued
BHC Communications, Inc. - Cl. A* ....................... 2,000 $ 278
Crown Media Holdings, Inc. .............................. 15,100 280
Entercom Communications Corp.* .......................... 7,200 386
Entravision Communications - Cl A* ...................... 20,000 246
Insight Communications Company, Inc.8 ................... 28,900 722
Martha Stewart Living Omnimedia, Inc. - Cl. A* .......... 16,000 370
Mediacom Communications Corp. * ......................... 22,800 319
Primedia, Inc. .......................................... 73,036 496
Radio One, Inc. - Cl. D* ................................ 34,900 769
Sirius Satellite Radio Inc. * ........................... 14,600 178
Westwood One, Inc. * .................................... 9,000 332
XM Satellite Radio Holdings, Inc. - Cl. A * ............. 28,000 454
Young Broadcasting, Inc. - Cl. A * ...................... 10,000 336
--------
5,193
Metals & Mining - 0.4%
Kaiser Aluminum Corp. ................................... 78,100 311
Natural Gas Distribution - 1.5%
Energen Corp. ........................................... 12,600 348
New Jersey Resources Corp. .............................. 9,800 443
WGL Holdings, Inc. ...................................... 13,000 352
--------
1,143
Oil & Natural Gas Exploration & Production - 0.2%
Penzoil-Quaker State Co. ................................ 15,000 168
Oil - Equipment & Service - 0.9%
Hydril Co. * ............................................ 10,000 228
Seacor Smit, Inc. ....................................... 9,200 430
--------
658
Paper & Forest Products - 0.2%
Caraustar Industries, Inc. .............................. 18,100 167
Real Estate Development - 0.4%
Trammell Crow Co.* ...................................... 25,400 281
Real Estate Investment Trust - 0.8%
Annaly Mortgage Management, Inc. ........................ 24,000 329
Anthracite Capital, Inc. ................................ 21,900 242
--------
571
Real Estate Operations - 1.2%
CB Richard Ellis Services, Inc. * ....................... 27,200 427
Insignia Financial Group, Inc. * ........................ 39,700 488
--------
915
Retail - 0.0%
Galyans Trading Co., Inc. .............................. 1,500 31
Retail - Department Stores - 3.6%
Dollar Thrifty Automotive Group, Inc.* .................. 9,700 233
Dollar Tree Stores, Inc.* ............................... 36,900 1,027
Factory 2-U Stores, Inc. * .............................. 14,900 438
Ruby Tuesday, Inc. ...................................... 33,700 576
School Specialty, Inc.* ................................. 17,600 455
--------
2,729
Retail - Food - 1.3%
California Pizza Kitchen, Inc. .......................... 17,900 416
Williams-Sonoma, Inc. ................................... 14,300 555
--------
971
Shoe & Apparel Manufacturing - 1.5%
Kellwood Co. ............................................ 20,900 483
Novel Denim Holdings, Ltd. * ............................ 16,000 245
Stride Rite Corp. ....................................... 39,300 334
Tommy Hilfiger Corp. * .................................. 6,000 84
--------
1,146
Telecommunication Equipment - 3.6%
Advanced Fibre Communications, Inc. * ................... 8,200 172
Alliance Fiber Optic Products, Inc.* .................... 34,700 165
Avanex Corp. * .......................................... 37,000 359
Cable Design Technologies Corp. ......................... 20,000 323
Carrier Access Corp. .................................... 39,900 239
Luminent, Inc. * ........................................ 32,500 137
Monolithic Systems Technology, Inc ...................... 5,000 55
Optical Communications Products, Inc* ................... 38,100 405
Polycom, Inc. ........................................... 9,000 208
Spectrasite Holdings, Inc. .............................. 14,000 101
Superior Telecom, Inc. .................................. 39,100 110
Tier Technologies, Inc. Cl B ............................ 23,000 220
Vitria Technology, Inc. ................................. 13,100 45
WebEx Communications, Inc. * ............................ 7,500 200
--------
2,739
Telecommunication Services - 0.8%
Aspect Communications Corp. * ........................... 46,400 324
Emmis Communications Corp. .............................. 8,000 246
Focal Communications Corp.* ............................. 30,900 73
--------
643
Transportation Services - 3.2%
America West Holdings Corp. - Cl B * .................... 23,800 237
Landstar Systems, Inc. .................................. 10,700 728
SkyWest, Inc. ........................................... 8,200 229
USFreightways Corp. ..................................... 12,700 375
Werner Enterprises, Inc. ................................ 36,000 873
--------
2,442
--------
TOTAL COMMON STOCK- 98.9% 75,366
--------
178
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
SMALL CAP EQUITY FUND
Market
Name of Issuer Shares Value
(000's)
SHORT-TERM INVESTMENTS - 0.7%
Investment in joint trading account
3.97% due 07/02/01 ..................................... $ 567 $ 567
-------- --------
TOTAL INVESTMENTS- 99.6% 75,933
Other Assets & Liabilities, Net- 0.4% 298
-------- --------
NET ASSETS- 100.0% $ 76,231
======== ========
ADR-American Depository Receipt
* Non-income producing security.
See notes to financial statements.
179
SCHEDULE OF INVESTMENTS
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
INTERNATIONAL OPPORTUNITIES FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Australia - 0.6%
Brambles Industries,
Ltd. (DIOP) ............................................ 11,553 $ 283
Publishing &
Broadcasting, Ltd.
(MEDI) ................................................. 48,083 223
------
506
Belgium - 0.7%
Dexia NPV (BANK) ........................................ 17,550 279
Fortis (B) (INSU) ....................................... 13,910 336
UCB SA (HEAL) ........................................... 1,180 41
------
656
Brazil - 0.7%
Compania Brasileira de
Distribuicao Grupo Pao
de Acucar - ADR (RETF) ................................. 5,800 135
Petroleo Brasileiro SA*
(OILX) ................................................. 7,000 182
Telecomunicacoes
Brasileiras SA - ADR
(UTIT) ................................................. 3,434 161
Unibanco - Uniao de
Bancos Brasileiros SA - ................................ 3,985 101
GDR (BANK) ------
579
Canada - 0.3%
Alcan Aluminum, Ltd.
(MEDI) ................................................. 3,122 131
Royal Bank of Canada
(BANK) ................................................. 4,280 137
------
268
Denmark - 0.1%
Tele Danmark A/S (TELS) ................................. 1,530 55
Finland - 1.4%
Nokia Oyj (TELS) ........................................ 55,320 1,255
France - 13.4%
Alcatel (TELE) .......................................... 11,330 237
Altran Technologies SA
(ENGI) ................................................. 1,450 68
AXA SA (INSU) ........................................... 38,200 1,089
Banque Nationale de
Paris (BANK) ........................................... 11,892 1,036
Canal Plus (MEDI) ....................................... 643 2
Cap Gemini SA (COMM) .................................... 1,888 138
Compagnie de St. Gobain
(CONS) ................................................. 3,400 462
Equant (COMP) ........................................... 1,905 34
Groupe Danone (FOOD) .................................... 1,590 218
HerMes International
(RETS) ................................................. 1,430 198
L'Oreal SA (HNBA) ....................................... 2,030 131
Lafarge SA (CONS) ....................................... 681 58
Legrand SA (ELEQ) ....................................... 1,864 356
LVMH (Louis Vuitton Moet
Hennessy) (FOOD) ....................................... 1,910 96
Orange SA* (TELS) ....................................... 34,990 285
Rhone-Poulenc SA (BANK) ................................. 19,509 1,559
Sanofi-Synthelabo SA*
(HEAL) ................................................. 14,478 951
Schneider SA (MACH) ..................................... 1,621 90
Societe Generale - Cl. A
(BANK) ................................................. 3,612 214
Societe Television
Francaise 1 (MEDI) ..................................... 15,375 449
Sodexho Alliance SA
(FOOD) ................................................. 12,634 591
STMicroelectronics
(ETRN) ................................................. 9,456 329
Total Fina SA - Cl. B
(OILX) ................................................. 15,890 2,227
Vivendi Universal SA
(DIOP) ................................................. 16,113 940
------
11,758
Germany - 4.1%
Allianz AG - Reg. (INSU) ................................ 3,128 914
Aventis SA (HEAL) ....................................... 2,288 181
Bayer AG (CHEM) ......................................... 3,835 151
Bayerische Vereinsbank
AG (BANK) .............................................. 6,244 309
Deutsche Bank AG (BANK) ................................. 11,493 824
Deutsche Telekom AG
(UTIT) ................................................. 2,945 67
E.On AG (DIOP) .......................................... 8,421 442
Gehe AG (HEAL) .......................................... 5,860 228
Rhoen-Klinikum AG (HEAL) ................................ 1,720 80
SAP AG (SOFT) ........................................... 2,310 321
Siemins AG (DIOP) ....................................... 1,977 121
------
3,638
Hong Kong - 2.5%
Cheung Kong (Holdings),
Ltd. (READ) ............................................ 44,000 479
China Telecom (Hong
Kong), Ltd. (TELS) ..................................... 120,000 632
Henderson Land
Development Co., Ltd. ..................................
(READ) ................................................. 32,000 142
HSBC Holdings PLC (BANK) ................................ 18,800 222
Hutchison Whampoa, Ltd. .................................
(COMM) ................................................. 67,900 686
------
2,161
India - 0.7%
Global Tele-Systems,
Ltd. (TELE) ............................................ 14,000 52
Hindustan Lever Ltd. ....................................
(CNSU) ................................................. 72,000 314
ICICI, Ltd. (FINL) ...................................... 71,484 213
Reliance Industries,
Inc. (OILX) ............................................ 3,000 24
------
603
Israel - 0.1%
Check Point Software
Technologies, Ltd.*
(COMP) ................................................. 1,857 94
Italy - 5.6%
Alleanza Assicurazioni
(INSU) ................................................. 37,170 392
Assicurazioni Generali
(INSU) ................................................. 7,000 211
Banca Intel SpA (BANK) .................................. 335,413 1,185
Banca Nazionale del
Lavoro (BANK) .......................................... 29,750 93
Bipop-Carire SpA (BANK) ................................. 32,500 122
ENI SpA (OILS) .......................................... 60,872 743
Mediaset SpA (MEDI) ..................................... 10,000 84
Mediolanum SpA (INSU) ................................... 18,315 185
Olivetti SpA (COMM) ..................................... 265,152 470
San Paolo-IMI SpA (BANK) ................................ 4,858 62
Telecom Italia Mobile
SpA (TELS) ............................................. 90,210 460
Telecom Italia SpA
(TELS) ................................................. 29,900 269
UniCredito Italiano SpA
(BANK) ................................................. 152,893 657
------
4,933
180
SCHEDULE OF INVESTMENTS
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
INTERNATIONAL OPPORTUNITIES FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Japan - 17.3%
Canon, Inc. (COMM) ...................................... 42,000 $1,697
DDI Corp. (UTIT) ........................................ 23 107
Fanuc, Ltd. (ELEQ) ...................................... 5,200 259
Fuji Television Network,
Inc. (MEDI) ............................................ 42 242
Fujitsu, Ltd. (ELEQ) .................................... 18,000 189
Ito-Yokado Co., Ltd.
(RETS) ................................................. 4,000 184
KAO Corp. (HNBA) ........................................ 7,000 174
Kokuyo Co. (COMM) ....................................... 8,000 84
Kyocera Corp. (ETRN) .................................... 4,600 406
Marui Co., Ltd. (RETS) .................................. 25,000 361
Matsushita Communication
Industries (TELS) ...................................... 4,800 219
Matsushita Electric
Industrial Co. (ETRN) .................................. 37,000 579
Mitsui Fudosan Co., Ltd. ................................
(REAL) ................................................. 52,000 560
Mizuho Holdings, Inc.*
(BANK) ................................................. 180 837
Murata Manufacturing
Co., Ltd. (ETRN) ....................................... 9,800 651
NEC Corp. (COMP) ........................................ 61,000 824
Nippon Telegraph &
Telephone Corp. (UTIT) ................................. 89 464
Nomura Securities Co.,
Ltd. (FUND) ............................................ 42,000 805
NTT Mobile
Communications Network,
Inc. (TELS) ............................................ 92 1,601
Sankyo Co., Ltd. (HEAL) ................................. 16,000 289
Seven-Eleven Japan
(RETF) ................................................. 7,000 273
Shin-Etsu Chemical Co. ..................................
(CHEM) ................................................. 11,000 404
Shiseido Co., Ltd. ......................................
(CHEM) ................................................. 18,000 169
Sony Corp. (ETRN) ....................................... 20,800 1,368
Sumitomo Bank (BANK) .................................... 73,000 603
Sumitomo Corp. (DIOP) ................................... 28,000 196
TDK Corp. (COMP) ........................................ 3,300 154
Tokyo Electron, Ltd. ....................................
(ETRN) ................................................. 5,500 333
Toshiba Corp. (ETRN) .................................... 102,000 539
UFJ Holdings, Inc.
(FINL) ................................................. 29 156
Yamanouchi
Pharmaceutical Co.,
Ltd. (HEAL) ............................................ 13,000 365
------
15,092
Luxembourg - 0.1%
Society Europeenne des
Satellites (MEDI) ...................................... 567 74
Mexico - 1.6%
Fomento Economico
Mexicano SA de CV
(FOOD) ................................................. 81,000 344
Grupo Financiero Banamex
Accival, SA de CV
(FINL) ................................................. 45,000 117
Grupo Iusacell SA de CV
- ADR V* (TELS) ........................................ 9,000 62
Grupo Televisa SA* - GDR
(OILX) ................................................. 15,052 602
Telefonica S.A. (TELS) .................................. 4,529 169
Telefonos de Mexico SA -
ADR (UTIT) ............................................. 2,369 83
------
1,377
Netherlands - 7.2%
ABN Amro Holding NV
(BANK) ................................................. 3,526 66
Akzo Nobel NV (CHEM) .................................... 1,390 59
ASM Lithography Holding
NV (COMP) .............................................. 21,180 476
Elsevier NV (MEDP) ...................................... 13,140 164
Fortis (NL) NV (INSU) ................................... 18,010 438
ING Groep NV (BANK) ..................................... 26,700 1,747
Koninklije KPN NV (TELS) ................................ 2,891 16
Koninklijke (Royal)
Philips Electronics
N.V. (ETRN) ............................................ 34,739 922
Royal Dutch Petroleum
Co. (OILX) ............................................. 16,580 955
VNU NV (MEDP) ........................................... 30,790 1,044
Wolters Kluwer NV - CVA
(MEDP) ................................................. 14,805 398
6,285
Norway - 0.4%
Orkla ASA (DIOP) ........................................ 13,750 249
Statoil ASA (OILX) ...................................... 8,950 66
------
315
Portugal - 0.4%
Jeronimo Martins, SGPS,
SA (RETF) .............................................. 7,183 46
Portugal Telecom, SA
(TELS) ................................................. 41,210 288
------
334
Singapore - 0.6%
United Overseas Bank,
Ltd. (BANK) ............................................ 84,072 531
South Korea - 0.6%
Samsung Electronics
(ETRN) ................................................. 2,700 399
Korea Telelecom Corp. - ADR* (TELS) .................... 4,481 99
------
498
Spain - 2.5%
Banco Bilbao Vizcaya SA
(BANK) ................................................. 65,010 842
Banco Santander Central
Hispano SA (BANK) ...................................... 50,980 462
Endesa SA (UTIE) ........................................ 17,270 276
Repsol SA (OILX) ........................................ 10,115 167
Telefonica SA (UTIT) .................................... 32,806 405
------
2,152
Sweden - 3.0%
Electrolux AB - Ser. B
(APPL) ................................................. 11,910 165
Hennes & Mauritz AB - B
Shares (RETS) .......................................... 19,680 338
Nordic Baltic Holding AB
(BANK) ................................................. 121,620 693
Sandvik AB (MACH) ....................................... 3,220 65
Securitas AB - B Shares
(COMM) ................................................. 52,328 917
Telefonaktiebolaget LM
Ericsson AB* (TELE) .................................... 80,300 439
------
2,617
Switzerland - 4.3%
ABB , Ltd. *(ENGI) ...................................... 10,748 163
Adecco SA (COMM) ........................................ 17,300 815
181
SCHEDULE OF INVESTMENTS
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
INTERNATIONAL OPPORTUNITIES FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Switzerland - Continued
Credit Suisse Group -
Reg. (BANK) ............................................ 1,030 $ 169
Nestle SA (FOOD) ........................................ 6,720 1,429
Roche Holdings AG (HEAL) ................................ 5,500 396
UBS AG (BANK) ........................................... 5,422 777
------
3,749
Taiwan - 0.5%
Taiwan Semiconductor
(ETRN) ................................................. 239,400 445
United Kingdom - 24.7%
Abbey National First
Capital BV (BANK) ...................................... 9,461 166
AstraZeneca Group PLC
(HEAL) ................................................. 25,013 1,167
Autonomy Corp. PLC
*(SOFT) ............................................... 1,500 9
BG Group PLC (UTIG) ..................................... 13,522 53
BP Amoco PLC (OILX) ..................................... 61,000 502
British
Telelecommunications
PLC (TELS) ............................................. 22,000 139
Cable & Wireless PLC
(TELS) ................................................. 37,270 220
Cadbury Schwepps PLC
(FOOD) ................................................. 49,606 335
Celestica, Inc. (TELS) .................................. 11,670 601
Celltech Group PLC
*(HEAL) ............................................... 14,608 247
Centrica PLC (UTIG) ..................................... 30,900 99
Compass Group PLC*
(FOOD) ................................................. 162,730 1,304
David S. Smith Holdings
PLC (OILX) ............................................. 18,000 35
Diageo PLC (FOOD) ....................................... 84,512 928
Dimension Data Holdings
PLC (SOFT) ............................................. 12,500 48
Electrocomponents PLC
(ETRN) ................................................. 29,070 220
Flextronics
International Ltd. .....................................
(ELEQ) ................................................. 7,100 185
GKN PLC (PART) .......................................... 5,000 48
GlaxoSmithKline PLC*
(HEAL) ................................................. 135,981 3,830
Granada Compass PLC
(DIOP) ................................................. 155,558 327
Hays PLC (DIOP) ......................................... 43,876 113
Hilton Group PLC (LEIS) ................................. 20,000 67
J. Sainsbury PLC (RETF) ................................. 1,640 10
Kingfisher PLC (RETS) ................................... 49,628 269
Lattice Group* (ETRN) ................................... 35,522 79
Reckitt Benckiser PLC
(HNBA) ................................................. 2,000 29
Reed InTELErnational PLC
(HNBA) ................................................. 196,000 1,739
Rio Tinto PLC - Reg .....................................
(DIOP) ................................................. 47,663 847
Royal Bank of Scotland
Group (BANK) ........................................... 84,225 1,859
Shell Transport &
Trading Co. PLC (OILX) ................................. 227,587 1,894
SmartForce Public
Limited Co. - ADR
(COMP) ................................................. 6,166 217
Standard CharTELEred PLC
(BANK) ................................................. 32,000 411
Tesco PLC (RETF) ........................................ 114,360 413
Tomkins PLC (DIOP) ...................................... 97,506 251
Unilever PLC (CNSU) ..................................... 40,388 341
United Business MEDIdia
(MEDP) ................................................. 12,193 99
Vodafone AirTouch PLC
(TELS) ................................................. 677,984 1,504
WPP Group PLC *(COMM) ................................... 94,580 932
------
21,537
United States - 0.1%
Pohang Iron & Steel Co.,
Ltd. - ADR (STEE) ...................................... 6,153 $ 121
------
TOTAL COMMON STOCK- ................................ 93.5% 81,633
------
PREFERRED STOCK
Australia - 0.7%
News Corp., Ltd. (MEDI) ................................. 79,247 637
Brazil - 0.8%
Petroleo Brasiliero SA - ................................ 27,192 637
Petrobas (OILX)
------
TOTAL PREFERRED STOCK- ................................ 1.5% 1,274
------
RIGHTS
Portugal - 0.0%
Portugal Telecom (TELS)
expires 07/09/01 ........................................ 41,210 6
------
TOTAL RIGHTS- ................................ 0.0% 6
------
Par
Value
(000's)
SHORT-TERM INVESTMENTS
Investment in joint trading account - 0.9%
Investment in joint trading account
3.97% due 07/02/01 ...................................... $ 827 827
Shares
Cash Equvalents - 15.4%
Navigator Securities
Lending Prime Portfolio** 13,433,155 13,433
TOTAL SHORT-TERM
INVESTMENTS 16.3% 14,260
---------- --------
TOTAL INVESTMENTS- 111.3% 97,173
Other Assets &
Liabilities, Net- (11.3)% (9,840)
---------- --------
NET ASSETS- 100.0% $ 87,333
========== ========
ADR-American Depository Receipts.
GDR-Global Depository Receipts.
* Non-income producing security.
** Represents investment of security lending collateral.
See notes to financial statements.
182
+++
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
INTERNATIONAL OPPORTUNITIES FUND
Market % of
Industry Value Long-Term
Industry Abbreviation (000s) Investments
Bank ........................................ BANK $16,533 19.9%
Telecommunication Services .................. TELS 7,880 9.5
Health Care Products ........................ HEAL 7,775 9.4
Oil & Natural Gas Exploration &
Production ................................. OILX 7,281 8.8
Electronic Products & Services .............. ETRN 6,270 7.6
Commercial Sevices .......................... COMM 5,739 7.0
Food, Beverage & Tobacco .................... FOOD 5,245 6.3
Diversified Operations ...................... DIOP 3,769 4.5
Insurance ................................... INSU 3,565 4.3
Cosmetic & Personal Care .................... HNBA 2,073 2.5
Media - TV & Radio .......................... MEDI 1,842 2.2
Computer Equipment .......................... COMP 1,799 2.2
Media - Publishing .......................... MEDP 1,705 2.0
Retail - Department Stores .................. RETS 1,350 1.6
Telephone ................................... UTIT 1,287 1.5
Electrical Equipment ........................ ELEQ 989 1.2
Retail - Food ............................... RETF 877 1.1
Brokerage & Investment
Management ................................. FUND 805 1.0
Chemicals ................................... CHEM 783 0.9
Oil ......................................... OILS 743 0.9
Telecommunication Equipment ................. TELE 728 0.9
Consumer Miscellaneous ...................... CNSU 655 0.8
Real Estate Operations ...................... READ 621 0.7
Construction ................................ CONS 520 0.6
Financial Services .......................... FINL 486 0.6
Computer Software & Services ................ SOFT 378 0.5
Electric Power .............................. UTIE 276 0.3
Engineering & Construction .................. ENGI 231 0.3
Household Appliances &
Furnishings ................................ APPL 165 0.2
Machinery ................................... MACH 155 0.2
Natural Gas Distribution .................... UTIG 152 0.2
Steel ....................................... STEE 121 0.1
Leisure & Recreation ........................ LEIS 67 0.1
Auto & Truck Parts .......................... AUTO 48 0.1
------- -----
$82,913 100.0%
======= =====
183
SCHEDULE OF INVESTMENTS
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
EQUITY INDEX FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Aerospace & Defense - 1.4%
B.F. Goodrich Co. ....................................... 4,500 $ 171
Boeing Co. .............................................. 41,568 2,311
General Dynamics Corp. .................................. 9,300 724
Honeywell International, Inc. ........................... 37,862 1,325
Lockheed Martin Corp. ................................... 20,100 745
Northrop Grumman Corp. .................................. 3,900 312
Raytheon Co. ............................................ 17,400 462
United Technologies Corp. ............................... 22,400 1,641
------
7,691
Auto & Truck Parts - 0.3%
AutoZone, Inc. * ........................................ 5,600 210
Cooper Tire & Rubber Co. ................................ 3,200 45
Cummins Engine Co., Inc. ................................ 1,700 66
Dana Corp. .............................................. 6,515 152
Genuine Parts Co. ....................................... 8,650 273
Goodyear Tire & Rubber Co. .............................. 7,600 213
Johnson Controls, Inc. .................................. 4,100 297
Paccar, Inc. ............................................ 3,300 170
TRW, Inc. ............................................... 6,200 254
Visteon Corp. * ......................................... 6,166 113
------
1,793
Automobile - 0.8%
Delphi Automotive Systems Corp. ......................... 27,069 431
Ford Motor Co. .......................................... 87,036 2,137
General Motors Corp. .................................... 26,100 1,679
Navistar International Corp., Inc. -
Cl. B ................................................ 2,700 76
------
4,323
Bank - 6.6%
AmSouth Bancorp ......................................... 16,900 312
Bank of America Corp. ................................... 75,268 4,518
Bank of New York Co., Inc. .............................. 34,300 1,646
Bank One Corp. .......................................... 54,850 1,964
BB&T Corp. .............................................. 18,800 690
Charter One Financial, Inc. ............................. 9,450 301
Comerica, Inc. .......................................... 8,500 490
Fifth Third Bancorp ..................................... 27,054 1,625
First Union Corp. ....................................... 46,646 1,630
FleetBoston Financial Corp. ............................. 51,420 2,029
Golden West Financial Corp. ............................. 7,300 469
Huntington Bancshares, Inc. ............................. 12,031 197
JP Morgan Chase & Co. ................................... 93,150 4,154
KeyCorp ................................................. 20,400 531
Mellon Financial Corp. .................................. 22,800 1,049
National City Corp. ..................................... 28,500 877
Northern Trust Corp. .................................... 10,300 644
PNC Bank Corp. .......................................... 13,900 914
Regions Financial Corp. ................................. 11,200 358
SouthTrust Corp. ........................................ 15,600 406
State Street Corp. ...................................... 15,200 752
Suntrust Banks, Inc. .................................... 14,100 913
Synovus Financial Corp. ................................. 13,250 416
Union Planters Corp. .................................... 6,600 288
US Bancorp .............................................. 90,919 2,072
Wachovia Corp. .......................................... 10,100 719
Washington Mutual, Inc. ................................. 41,277 1,550
Wells Fargo & Co. ....................................... 80,900 3,756
Zions Bancorp ........................................... 4,300 254
------
35,524
Brokerage & Investment Management - 1.0%
Bear Stearns Cos., Inc. ................................. 5,032 297
Charles Schwab Corp. .................................... 64,675 989
Franklin Resources, Inc. ................................ 13,000 595
Morgan Stanley, Dean Witter, Discover &
Co ..................................................... 52,200 3,353
T. Rowe Price Group, Inc. ............................... 6,100 228
------
5,462
Business Services - 0.5%
Automatic Data Processing, Inc. ......................... 29,900 1,486
H&R Block, Inc. ......................................... 4,200 271
Interpublic Group Cos., Inc. ............................ 18,100 531
Robert Half International, Inc. ......................... 8,800 219
------
2,507
Chemical - 1.0%
Air Products & Chemicals, Inc. .......................... 10,500 480
Ashland, Inc. ........................................... 3,000 120
Dow Chemical Co. ........................................ 42,643 1,418
E.I. du Pont de Nemours & Co. ........................... 48,982 2,363
Eastman Chemical Co. .................................... 3,400 162
Engelhard Corp. ......................................... 6,100 157
Great Lakes Chemical Corp. .............................. 2,300 71
Hercules, Inc. .......................................... 4,600 52
Praxair, Inc. ........................................... 7,300 343
Rohm & Haas Co. ......................................... 10,227 337
Sigma-Aldrich Corp. ..................................... 3,700 143
------
5,646
Commercial Services - 0.9%
American Greetings Corp. - Cl. A ........................ 2,800 31
Avery Dennison Corp. .................................... 5,200 265
Cendant Corp. * ......................................... 40,899 798
Cintas Corp. ............................................ 7,900 365
Concord EFS, Inc. ....................................... 11,600 603
Convergys Corp. * ....................................... 8,000 242
Deluxe Corp. ............................................ 3,100 90
Ecolab, Inc. ............................................ 6,500 266
Equifax, Inc. ........................................... 7,200 264
Omnicom Group, Inc. ..................................... 9,000 774
Power One, Inc. * ....................................... 3,300 55
Quintiles Transnational Corp. * ......................... 6,500 164
R.R. Donnelley & Sons Co. ............................... 4,800 143
The Dun & Bradstreet Corp. * ............................ 7,700 258
184
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
EQUITY INDEX FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Commercial Services - Continued
TMP Worldwide, Inc. ..................................... 5,100 $ 306
-------
4,624
Computer Equipment - 5.9%
Advanced Micro Devices, Inc. ............................ 15,700 453
Apple Computer, Inc. * .................................. 16,000 372
Compaq Computer Corp. ................................... 79,011 1,224
Dell Computer Corp. * ................................... 122,500 3,203
EMC Corp. ............................................... 104,912 3,048
Gateway, Inc. * ......................................... 15,100 248
Hewlett-Packard Co. ..................................... 92,400 2,643
Intel Corp. ............................................. 316,400 9,255
International Business Machines Corp. ................... 81,700 9,232
Lexmark International Group, Inc. -
Cl. A. * ............................................. 6,100 410
Network Appliance, Inc. * ............................... 15,000 206
Palm, Inc. .............................................. 24,561 149
Veritas Software Corp. * ................................ 19,100 1,271
Xerox Corp. ............................................. 32,500 311
-------
32,025
Computer Software & Services - 6.7%
Adobe Systems, Inc. ..................................... 11,200 526
Autodesk, Inc. .......................................... 2,400 90
BMC Software, Inc. ...................................... 11,500 259
BroadVision, Inc. * ..................................... 11,100 56
Cabletron Systems, Inc. * ............................... 9,400 215
Citrix Systems, Inc. * .................................. 8,800 307
Computer Associates International, Inc. ................ 26,925 969
Computer Sciences Corp. * ............................... 8,100 280
Compuware Corp. * ....................................... 17,500 245
Electronic Data Systems Corp. ........................... 22,300 1,394
First Data Corp. ........................................ 18,500 1,189
Fiserv, Inc. ............................................ 5,600 358
IMS Health, Inc. ........................................ 14,200 405
Intuit, Inc. * .......................................... 9,600 384
Mercury Interactive Corp. * ............................. 3,600 216
Microsoft Corp. ......................................... 253,500 18,505
NCR Corp. * ............................................. 4,800 226
Novell, Inc. * .......................................... 14,100 80
Oracle Corp. * .......................................... 263,500 5,006
Parametric Technology Corp. * ........................... 11,800 165
Peoplesoft, Inc. ........................................ 14,100 694
Progressive Corp. ....................................... 3,400 460
Sapient Corp. ........................................... 5,000 49
Siebel Systems, Inc. * .................................. 21,800 1,022
Sun Microsystems, Inc. * ................................ 154,400 2,427
Unisys Corp. * .......................................... 16,000 235
Yahoo!, Inc. * .......................................... 27,400 548
-------
36,310
Construction - 0.1%
Stanley Works ........................................... 3,800 159
Vulcan Materials Co. .................................... 4,800 258
-------
417
Consumer Miscellaneous - 0.5%
Black & Decker Corp. .................................... 3,500 138
Clorox Co. .............................................. 11,100 376
Dollar General Corp. .................................... 15,646 305
Fortune Brands, Inc. .................................... 7,300 280
Harley-Davidson, Inc. ................................... 14,200 669
Newell Rubbermaid, Inc. ................................. 13,116 329
Parker-Hannifin Corp. ................................... 5,650 240
Sherwin-Williams Co. .................................... 7,000 155
Snap-On, Inc. ........................................... 2,500 60
Tupperware Corp. ........................................ 2,500 59
-------
2,611
Container - 0.1%
Bemis Co., Inc. ......................................... 2,400 96
Pactiv Corp. * .......................................... 7,400 99
Sealed Air Corp. * ...................................... 3,589 134
-------
329
Cosmetic & Personal Care - 1.8%
Alberto-Culver Co. - Cl. B .............................. 2,700 114
Avon Products, Inc. ..................................... 11,700 541
Colgate-Palmolive Co. ................................... 26,800 1,581
Gillette Co. ............................................ 50,500 1,464
International Flavors & Fragrances, Inc. ................ 4,400 111
Leggett & Platt, Inc. ................................... 9,900 218
Procter & Gamble Co. .................................... 60,700 3,873
Unilever NV - NY Shares ................................. 26,782 1,595
-------
9,497
Diversified Operations - 6.5%
Amgen, Inc. ............................................. 49,300 2,992
Corning, Inc. ........................................... 43,100 720
Costco Wholesale Corp. * ................................ 21,000 863
Crane Co. ............................................... 2,950 91
Danaher Corp. ........................................... 6,800 381
Eaton Corp. ............................................. 3,100 217
General Electric Co. .................................... 468,000 22,815
Illinois Tool Works, Inc. ............................... 14,100 893
ITT Industries, Inc. .................................... 4,200 186
National Service Industries, Inc. ....................... 1,700 38
Pall Corp. .............................................. 5,300 125
PPG Industries, Inc. .................................... 7,900 415
Textron, Inc. ........................................... 6,700 369
Tyco International, Ltd. ................................ 90,930 4,956
W.W. Grainger, Inc. ..................................... 4,700 193
-------
35,254
Electric Power - 2.8%
AES Corp. * ............................................. 24,900 1,072
Allegheny Energy, Inc. .................................. 5,800 280
Ameren Corp. ............................................ 6,500 278
185
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
EQUITY INDEX FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Electric Power - Continued
American Electric Power Co. ............................. 15,260 $ 705
Calpine Corp. * ......................................... 14,300 541
Cinergy Corp. ........................................... 7,500 262
CMS Energy Corp. ........................................ 5,700 159
Consolidated Edison, Inc. ............................... 10,100 402
Dominion Resources, Inc. ................................ 11,994 721
DTE Energy Co. .......................................... 8,000 372
Duke Energy Co. ......................................... 36,488 1,423
Edison International .................................... 14,300 159
Emerson Electric Co. .................................... 20,100 1,216
Entergy Corp. ........................................... 10,500 403
Exelon Corp. ............................................ 15,150 971
Firstenergy Corp. ....................................... 11,200 360
FPL Group, Inc. ......................................... 8,300 500
GPU, Inc. ............................................... 6,100 214
Mirant Corp. ............................................ 15,868 546
Niagara Mohawk Holdings, Inc. ........................... 7,800 138
NiSource, Inc. .......................................... 9,149 250
PG&E Corp. .............................................. 19,900 223
Pinnacle West Capital Corp. ............................. 4,400 209
PPL Corp. ............................................... 6,900 380
Progress Energy, Inc. ................................... 9,556 429
Public Services Enterprise Group, Inc. .................. 10,100 494
Reliant Energy, Inc. .................................... 14,224 458
Southern Co. ............................................ 32,000 744
TXU Corp. ............................................... 12,312 593
Xcel Energy, Inc. ....................................... 15,550 442
-------
14,944
Electrical Equipment - 0.2%
American Power Conversion ............................... 8,300 131
Best Buy Co., Inc. ...................................... 9,700 616
Cooper Industries, Inc. ................................. 4,000 158
Molex, Inc. ............................................. 9,550 349
-------
1,254
Electronic Products & Services - 3.9%
Agilent Technologies, Inc. * ............................ 21,374 695
Altera Corp. * .......................................... 18,600 539
Analog Devices, Inc. * .................................. 17,200 744
Applera Corporation - Applied Biosystems
Group .................................................. 10,000 268
Applied Materials, Inc. * ............................... 38,400 1,885
Applied Micro Circuits Corp. * .......................... 14,100 243
Ball Corp. .............................................. 1,400 67
Broadcom Corp. - Cl. A. * ............................... 12,900 552
Cisco Systems, Inc. * ................................... 344,000 6,261
Conexant Systems, Inc. * ................................ 10,500 94
Jabil Circuit, Inc. * ................................... 9,000 278
KLA-Tencor Corp. * ...................................... 8,700 509
LSI Logic Corp. * ....................................... 17,200 323
Maxim Integrated Products, Inc. * ....................... 15,100 668
Motorola, Inc. .......................................... 103,895 1,720
National Semiconductor Corp. * .......................... 8,700 253
Novellus Systems, Inc. * ................................ 6,500 369
PerkinElmer, Inc. ....................................... 5,000 138
QLogic Corp. * .......................................... 4,600 296
Rockwell International Corp. * .......................... 8,900 339
Sanmina Corp. ........................................... 14,100 330
Solectron Corp. * ....................................... 30,200 553
Tektronix, Inc. ......................................... 4,000 109
Teradyne, Inc. * ........................................ 8,200 271
Texas Instruments, Inc. ................................. 82,100 2,586
Thomas & Betts Corp. .................................... 2,500 55
Vitesse Semiconductor Corp. * ........................... 9,100 191
Xilinx, Inc. * .......................................... 15,300 631
-------
20,967
Energy - Alternative Source - 0.4%
Dynegy, Inc. - Cl.A ..................................... 15,100 702
El Paso Corp. ........................................... 24,362 1,280
-------
1,982
Engineering & Construction - 0.0%
Fluor Corp. * ........................................... 3,300 149
Financial Services - 1.8%
American Express Co. .................................... 63,000 2,444
Household International, Inc. ........................... 22,166 1,478
Lehman Brothers Holdings, Inc. .......................... 11,700 910
Merrill Lynch & Co., Inc. ............................... 39,300 2,329
Paychex, Inc. ........................................... 17,950 718
Pitney Bowes, Inc. ...................................... 11,800 497
Providian Financial Corp. * ............................. 13,700 811
Stillwell Financial, Inc. ............................... 10,900 366
-------
9,553
Food, Beverage & Tobacco - 4.3%
Adolph Coors Co. - Cl. B ................................ 1,600 80
Anheuser-Busch Cos., Inc. ............................... 42,800 1,763
Archer Daniels Midland Co. .............................. 30,266 394
Brown-Forman Corp. - Cl. B .............................. 3,300 211
Campbell Soup Co. ....................................... 19,700 507
Coca-Cola Co. ........................................... 117,600 5,292
Coca-Cola Enterprises, Inc. ............................. 20,300 332
ConAgra, Inc. ........................................... 25,700 509
General Mills, Inc. ..................................... 13,500 591
H.J. Heinz Co. .......................................... 16,100 658
Hershey Foods Corp. ..................................... 6,600 407
Kellogg Co. ............................................. 19,600 569
Pepsi Bottling Group, Inc. .............................. 6,400 257
PepsiCo, Inc. ........................................... 68,600 3,032
Philip Morris Cos., Inc. ................................ 103,300 5,243
Quaker Oats Co. ......................................... 6,400 584
Ralston-Ralston Purina Group ............................ 14,300 429
Sara Lee Corp. .......................................... 37,700 714
SuperValu, Inc. ......................................... 5,600 98
Sysco Corp. ............................................. 31,800 863
UST, Inc. ............................................... 8,300 240
186
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
EQUITY INDEX FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Food, Beverage & Tobacco - Continued
Wm. Wrigley Jr. Co. ..................................... 10,600 $ 497
-------
23,270
Health Care Products - 11.0%
Abbott Laboratories ..................................... 73,200 3,514
Allergan, Inc. .......................................... 6,200 530
American Home Products Corp. ............................ 62,000 3,623
Bausch & Lomb, Inc. ..................................... 2,200 80
Baxter International, Inc. .............................. 28,200 1,382
Becton, Dickinson & Co. ................................. 11,700 419
Biomet, Inc. ............................................ 8,550 411
Boston Scientific Corp. * ............................... 19,100 325
Bristol-Myers Squibb Co. ................................ 91,300 4,775
C.R. Bard, Inc. ......................................... 2,200 125
Cardinal Health, Inc. ................................... 21,350 1,473
Chiron Corp. * .......................................... 9,200 469
Eli Lilly & Co. ......................................... 52,700 3,900
Forest Laboratories, Inc. * ............................. 8,500 603
Guidant Corp. * ......................................... 14,700 529
Johnson & Johnson ....................................... 143,378 7,169
King Pharmaceuticals, Inc. * ............................ 8,300 446
McKesson HBOC, Inc. ..................................... 13,233 491
MedImmune, Inc. * ....................................... 10,000 472
Medtronic, Inc. ......................................... 57,500 2,646
Merck & Co., Inc. ....................................... 107,800 6,889
Millipore Corp. ......................................... 1,900 118
Pfizer, Inc. ............................................ 297,175 11,902
Pharmacia Corp. ......................................... 61,805 2,840
Schering-Plough Corp. ................................... 69,300 2,511
Stryker Corp. ........................................... 9,000 494
UnitedHealth Group, Inc. ................................ 15,300 945
Watson Pharmaceuticals, Inc. * .......................... 4,800 296
-------
59,377
Health Care Services - 0.6%
Biogen, Inc. * .......................................... 7,100 386
HCA-The Healthcare Corp. ................................ 25,750 1,164
Healthsouth Corp. * ..................................... 19,800 316
Humana, Inc. * .......................................... 7,200 71
Manor Care, Inc. * ...................................... 4,400 140
St. Jude Medical, Inc. .................................. 4,200 252
Tenet Healthcare Corp. * ................................ 15,400 794
Wellpoint Health Networks, Inc. * ....................... 3,200 301
-------
3,424
Household Appliances & Furnishings - 0.1%
Maytag Corp. ............................................ 3,500 102
Whirlpool Corp. ......................................... 3,100 194
-------
296
Housing - 0.1%
Centex Corp. ............................................ 2,800 114
Masco Corp. ............................................. 21,600 539
Pulte Corp. ............................................. 2,200 94
-------
747
Insurance - 4.1%
Aetna US Healthcare, Inc. * ............................. 6,700 173
AFLAC, Inc. ............................................. 24,900 784
Allstate Corp. .......................................... 34,600 1,522
Ambac Financial Group, Inc. ............................. 5,000 291
American General Corp. .................................. 23,842 1,108
American International Group, Inc. ...................... 109,729 9,437
Aon Corp. ............................................... 11,900 417
Chubb Corp. ............................................. 8,300 643
Cigna Corp. ............................................. 7,200 690
Cincinnati Financial Corp. .............................. 7,900 312
Conseco, Inc. ........................................... 15,391 210
Hartford Financial Services Group, Inc. ................. 11,100 759
Jefferson-Pilot Corp. ................................... 7,575 366
John Hancock Financial Services ......................... 14,400 580
Lincoln National Corp. .................................. 9,000 466
Marsh & McLennan Cos., Inc. ............................. 13,100 1,323
MBIA, Inc. .............................................. 7,100 395
Metlife, Inc. ........................................... 35,700 1,106
MGIC Investment Corp. ................................... 4,900 356
Safeco Corp. ............................................ 6,100 180
St. Paul Cos., Inc. ..................................... 10,214 518
Torchmark, Inc. ......................................... 6,300 253
UnumProvident Corp. ..................................... 11,720 376
-------
22,265
Leisure & Recreation - 0.7%
Brunswick Corp. ......................................... 3,800 91
Carnival Corp. .......................................... 27,300 838
Eastman Kodak Co. ....................................... 13,300 621
Harrah's Entertainment, Inc. * .......................... 5,200 183
Hasbro, Inc. ............................................ 7,125 103
Hilton Hotels Corp. ..................................... 17,500 203
Loews Corp. ............................................. 9,200 593
Mattel, Inc. ............................................ 20,900 395
Sabre Group Holdings, Inc. * ............................ 6,274 314
Starwood Hotels & Resorts Worldwide, Inc. ............... 8,900 332
-------
3,673
Machinery - 0.4%
Caterpillar, Inc. ....................................... 16,500 826
Deere & Co. ............................................. 10,700 405
Dover Corp. ............................................. 9,500 358
FMC Corp. * ............................................. 1,400 96
Ingersoll-Rand Co. ...................................... 7,800 321
McDermott International, Inc. ........................... 2,100 25
Thermo Electron Corp. * ................................. 8,600 189
-------
2,220
187
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
EQUITY INDEX FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Media - Publishing - 0.4%
Dow Jones & Co., Inc. ................................... 4,400 $ 263
Gannett Co., Inc. ....................................... 12,300 810
Knight-Ridder, Inc. ..................................... 3,300 196
Meredith Corp. .......................................... 2,200 79
New York Times Co. - Cl. A .............................. 7,300 306
Tribune Co. ............................................. 14,265 571
-------
2,225
Media - TV & Radio - 4.3%
AOL Time Warner, Inc. * ................................. 208,550 11,053
Clear Channel Communications, Inc. ...................... 27,800 1,743
Comcast Corp. - Cl. A ................................... 44,600 1,936
McGraw-Hill Cos., Inc. .................................. 9,200 609
The Walt Disney Co. ..................................... 98,500 2,846
Univision Communications, Inc. -
Cl. A.* ................................................. 9,500 406
Viacom, Inc. - Cl. B. * ................................. 83,562 4,324
-------
22,917
Metal Production & Fabrication - 0.0%
Timken Co. .............................................. 2,900 49
Worthington Industries, Inc. ............................ 3,700 50
-------
99
Metals & Mining - 0.9%
Alcan Aluminum, Ltd. .................................... 15,000 630
Alcoa, Inc. ............................................. 41,088 1,619
Inco, Ltd. .............................................. 9,400 162
Minnesota Mining & Manufacturing Co. .................... 18,800 2,145
Newmont Mining Corp. .................................... 9,401 175
Phelps Dodge Corp. ...................................... 3,396 141
-------
4,872
Natural Gas Distribution - 0.5%
Enron Corp. ............................................. 35,500 1,740
KeySpan Corp. ........................................... 6,400 233
Nicor, Inc. ............................................. 2,000 78
Peoples Energy Corp. .................................... 1,900 76
Williams Cos., Inc. ..................................... 22,600 745
-------
2,872
Oil - 1.3%
Baker Hughes, Inc. ...................................... 15,600 522
ONEOK, Inc. ............................................. 2,400 47
Royal Dutch Petroleum Co. - NY
Shares .................................................. 100,800 5,874
Tosco Corp. ............................................. 7,100 313
-------
6,756
Oil & Natural Gas Exploration & Production - 4.8%
Amerada Hess Corp. ...................................... 4,200 340
Anadarko Petroleum Corp. ................................ 11,662 630
Apache Corp. ............................................ 5,700 289
Burlington Resources, Inc. .............................. 10,510 420
Chevron Corp. ........................................... 30,400 2,751
Conoco, Inc. - Cl. B .................................... 29,145 842
Devon Energy Corp. ...................................... 6,000 315
EOG Resources, Inc. ..................................... 5,600 199
Exxon Mobil Corp. ....................................... 162,455 14,191
Kerr-McGee Corp. ........................................ 4,470 296
Kinder Morgan, Inc. ..................................... 5,400 271
Noble Drilling Corp. * .................................. 6,600 216
Occidental Petroleum Corp. .............................. 18,200 484
Phillips Petroleum Co. .................................. 11,900 678
Rowan Cos., Inc. * ...................................... 4,000 89
Sempra Energy ........................................... 9,704 265
Sunoco, Inc. ............................................ 3,800 139
Texaco, Inc. ............................................ 26,100 1,738
Transocean Sedco Forex, Inc. ............................ 15,236 629
Unocal Corp. ............................................ 11,400 389
USX-Marathon Group ...................................... 14,500 428
-------
25,599
Oil - Equipment & Service - 0.5%
Halliburton Co. ......................................... 20,600 734
Nabors Industries, Inc. * ............................... 7,100 264
Schlumberger, Ltd. ...................................... 27,200 1,432
-------
2,430
Paper & Forest Products - 0.7%
Boise Cascade Corp. ..................................... 2,500 88
Georgia-Pacific Corp. ................................... 10,526 356
International Paper Co. ................................. 22,467 802
Kimberly-Clark Corp. .................................... 25,000 1,398
Louisiana-Pacific Corp. ................................. 4,600 54
Mead Corp. .............................................. 4,400 120
Potlatch Corp. .......................................... 1,200 41
Temple-Inland, Inc. ..................................... 2,200 117
Westvaco Corp. .......................................... 4,300 105
Weyerhaeuser Co. ........................................ 10,500 577
Willamette Industries, Inc. ............................. 5,400 267
-------
3,925
Personal & Commercial Lending - 2.8%
Capital One Financial Corp. ............................. 10,200 612
Citigroup, Inc. ......................................... 236,790 12,512
Countrywide Credit Industries, Inc. ..................... 5,500 252
MBNA Corp. .............................................. 40,575 1,337
USA Education, Inc. ..................................... 7,900 577
-------
15,290
Pollution Control - 0.2%
Allied Waste Industries, Inc. * ......................... 8,600 161
Waste Management, Inc. .................................. 29,057 895
-------
1,056
Precious Metals/Gems/Stones - 0.1%
Barrick Gold Corp. ...................................... 19,300 292
188
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
EQUITY INDEX FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Precious Metals/Gems/Stones - Continued
Freeport-McMoRan Copper & Gold, Inc. -
Cl. B .................................................. 6,300 $ 70
Homestake Mining Co. .................................... 11,100 86
Placer Dome, Inc. ....................................... 14,100 138
-------
586
Real Estate Development - 0.0%
KB Home ................................................. 2,100 63
Real Estate Investment Trust - 0.1%
Marriott International, Inc. - Cl. A .................... 11,800 559
Retail - Department Stores - 4.7%
Bed Bath & Beyond, Inc. * ............................... 13,100 409
Circuit City Stores, Inc. ............................... 8,700 157
Dillard's, Inc. - Cl. A ................................. 3,600 55
Federated Department Stores, Inc. * ..................... 9,200 391
Gap, Inc. ............................................... 41,075 1,191
Harcourt General, Inc. .................................. 3,500 204
Home Depot, Inc. ........................................ 109,650 5,104
J.C. Penney Co., Inc. ................................... 12,400 327
K-mart Corp. * .......................................... 22,900 263
Kohl's Corp. ............................................ 15,500 972
Limited, Inc. ........................................... 20,052 331
Lowe's Cos., Inc. ....................................... 18,200 1,320
May Department Stores Co. ............................... 13,950 478
Nordstrom, Inc. ......................................... 7,000 130
Office Depot, Inc. ...................................... 12,900 134
RadioShack Corp. ........................................ 8,800 268
Sears, Roebuck & Co. .................................... 15,500 656
Staples, Inc. * ......................................... 20,750 332
Target Corp. ............................................ 42,600 1,474
Tiffany & Co. ........................................... 6,900 250
TJX Cos., Inc. .......................................... 13,400 427
Toys "R" Us, Inc. * ..................................... 9,300 230
Wal-Mart Stores, Inc. ................................... 210,400 10,268
-------
25,371
Retail - Drug Stores - 0.4%
CVS Corp. ............................................... 18,300 706
Longs Drug Stores Corp. ................................. 1,900 41
Walgreen Co. ............................................ 48,200 1,646
-------
2,393
Retail - Food - 1.0%
Albertson's, Inc. ....................................... 19,177 575
Darden Restaurants, Inc. ................................ 5,300 148
McDonald's Corp. ........................................ 61,800 1,672
Safeway, Inc. * ......................................... 24,200 1,162
Starbucks Corp. * ....................................... 17,400 400
The Kroger Co. * ........................................ 39,200 980
Tricon Global Restaurants, Inc. * ....................... 7,050 310
Wendy's International, Inc. ............................. 4,900 125
Winn-Dixie Stores, Inc. ................................. 6,700 175
-------
5,547
Retailers - Broadline - 0.0%
Big Lots, Inc. .......................................... 5,300 73
Shoe & Apparel Manufacturing - 0.2%
Liz Claiborne, Inc. ..................................... 2,300 116
Nike, Inc. - Cl. B ...................................... 12,400 520
Reebok International, Ltd. .............................. 2,400 77
V.F. Corp. .............................................. 5,800 211
-------
924
Steel - 0.1%
Allegheny Technologies, Inc. ............................ 3,750 68
Nucor Corp. ............................................. 3,600 176
USX-U.S. Steel Group, Inc. .............................. 3,800 76
-------
320
Telecommunication Equipment - 1.6%
ADC Telecommunications, Inc. * .......................... 36,700 242
Andrew Corp. * .......................................... 3,450 64
Comverse Technology, Inc. ............................... 7,700 440
JDS Uniphase Corp. * .................................... 60,900 761
Linear Technology Corp. ................................. 14,800 654
Lucent Technologies, Inc. ............................... 161,925 1,004
Micron Technology, Inc. ................................. 27,700 1,139
Nortel Networks Corp. ................................... 151,000 1,373
Qualcomm, Inc. * ........................................ 36,100 2,111
Scientific-Atlanta, Inc. ................................ 7,400 300
Symbol Technologies, Inc. ............................... 10,300 229
Tellabs, Inc. * ......................................... 19,200 372
-------
8,689
Telecommunication Services - 2.1%
Avaya , Inc. * .......................................... 14,102 193
Citizens Communications Co. ............................. 14,400 173
Global Crossing, Ltd. * ................................. 41,490 358
Nextel Communications, Inc. - Cl. A. * .................. 36,700 642
Sprint PCS (PCS Group). * ............................... 43,500 1,051
Verizon Communications .................................. 127,174 6,804
WorldCom, Inc. * ........................................ 136,477 1,938
-------
11,159
Telephone - 3.4%
Alltel Corp. ............................................ 14,600 894
AT&T Corp. .............................................. 161,707 3,558
BellSouth Corp. ......................................... 88,600 3,568
CenturyTel, Inc. ........................................ 7,100 215
Constellation Energy Group .............................. 7,500 319
Qwest Communications International, Inc. ................ 78,462 2,501
SBC Communications, Inc. ................................ 158,297 6,341
Sprint Corp. ............................................ 42,400 906
-------
18,302
Transportation Services - 0.7%
AMR Corp. * ............................................. 7,500 271
Burlington Northern Santa Fe Corp. ...................... 18,900 570
189
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
EQUITY INDEX FUND
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Transportation Services - Continued
CSX Corp. ............................................... 9,900 $ 359
Delta Air Lines, Inc. ................................... 5,800 256
Fedex Corp. * ........................................... 14,300 575
Norfolk Southern Corp. .................................. 18,000 372
Ryder System, Inc. ...................................... 2,600 51
Southwest Airlines Co. .................................. 35,250 652
U.S. Airways Group, Inc. * .............................. 2,900 70
Union Pacific Corp. ..................................... 11,600 637
-------
3,813
U.S. Government Agencies - 1.2%
Federal Home Loan Mortgage Corp. ........................ 33,000 2,310
Federal National Mortgage Assoc ......................... 46,900 3,994
-------
6,304
-------
TOTAL COMMON STOCK- ............... 96.5% 520,278
-------
Par
Value
(000's)
SHORT-TERM INVESTMENTS
Investment in joint trading account
3.97% due 07/02/01 ...................................... $ 17,751 17,751
U.S. Treasury Bills
3.435% due 09/13/01# .................................... 1,245 1,236
-------- --------
TOTAL SHORT-TERM
INVESTMENTS- ............... 3.5% 18,987
-------- --------
TOTAL INVESTMENTS- ............... 100.0% 539,265
Other Assets & Liabilities, Net- ............... (0.0)% (118)
-------- --------
NET ASSETS- ............... 100.0% $539,147
======== ========
* Non-income producing security.
# All or a portion of the principle amount of this security was pledged to cover
initial margin requirements for open future contracts.
See notes to financial statements.
190
SCHEDULE OF INVESTMENTS
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
HIGH YIELD BOND FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS
Aerospace & Defense - 1.6%
Argo-Tech Corp.
8.625% due 10/01/07 ..................................... 415 $ 371
K&F Industries, Inc. - Sr. Sub. Notes
9.25% due 10/15/07 ...................................... 225 232
-------
603
Asset Backed - 0.4%
Hayes Lemmerz International , Inc.
Sr. Notes 144A
11.875% due 06/15/06 .................................... 150 148
Auto & Truck Parts - 5.0%
Accuride Corp. - Sr. Sub. Notes
9.25% due 02/01/08 ...................................... 375 248
Delco Remy International, Inc.
10.625% due 08/01/06 .................................... 195 198
Delco Remy International, Inc. - Sr Notes
8.625% due 12/15/07 ..................................... 50 49
Dura Operating Corp.
9.0% due 05/01/09 ....................................... 235 217
Federal Mogul Corp.
7.5% due 01/15/09 ....................................... 750 90
Federal Mogul Corp. - Sr. Notes
8.8% due 04/15/07 ....................................... 100 13
Hayes Lemmerz International, Inc.
9.125% due 07/15/07 ..................................... 575 431
Hayes Lemmerz International, Inc. - Ser. B
9.125% due 07/15/07 ..................................... 5 4
LDM Technologies, Inc.
10.75% due 01/15/07 ..................................... 135 81
Lear Corp. - Ser. B
7.96% due 05/15/05 ...................................... 140 141
8.11% due 05/15/09 ...................................... 300 298
Lear Corp. - Sub. Notes
9.5% due 07/15/06 ....................................... 100 104
Numatics, Inc. - Ser. B
9.625% due 04/01/08 ..................................... 100 63
-------
1,937
Automobile - 0.5%
Navistar International Corp.- Sr Notes 144A
9.375% due 06/01/06 ..................................... 35 35
Navistar International - Sr. Sub Notes Ser. B
8.0% due 02/01/08 ....................................... 150 140
-------
175
Bank - 0.3%
Western Financial Bank - Sub.
8.875% due 08/01/07 ..................................... 125 118
Business Services - 0.2%
Express Scripts, Inc. - Sr. Notes
9.625% due 06/15/09 ..................................... 80 87
Chemical - 3.5%
Acetex Corp. - Sr. Notes
9.75% due 10/01/03 ...................................... 120 120
Georgia Gulf Corp.
10.375% due 11/01/07 .................................... 400 400
Lyondell Chemical Co.
9.875% due 05/01/07 ..................................... 345 345
Lyondell Chemical Co. - Debs
9.8% due 02/01/20 ....................................... 110 107
Lyondell Chemical Co. - Sec. Notes Ser. A
9.625% due 05/01/07 ..................................... 100 100
PCI Chemicals Canada, Inc.
9.25% due 10/15/07 ...................................... 90 43
PMD Group, Inc. 144A
11.0% due 02/28/11 ...................................... 15 15
Sterling Chemicals, Inc. - Ser. B
12.375% due 07/15/06 .................................... 125 103
Texas Petrochemical Corp. - Sr. Sub.
Notes
11.125% due 07/01/06 .................................... 150 133
-------
1,366
Chemicals - 0.2%
Hexcel Corp. Sr. Sub Notes 144A
9.75% due 01/15/09 ...................................... 85 82
Coal - 0.7%
P&L Coal Holdings Corp.
9.625% due 05/15/08 ..................................... 242 254
Commercial Services - 3.1%
Allied Waste North America
10.0% due 08/01/09 ...................................... 450 464
American Color Graphics, Inc.
12.75% due 08/01/05 ..................................... 250 245
Pierce Leahy Command Co.
8.125% due 05/15/08 ..................................... 75 75
Pierce Leahy Corp. - Sr. Sub. Notes
9.125% due 07/15/07 ..................................... 220 222
Waste Management, Inc.
6.875% due 05/15/09 ..................................... 200 194
-------
1,200
Computer Equipment - 0.5%
Seagate Technology, Inc. 144A
12.5% due 11/15/07 ...................................... 210 208
Computer Software & Services - 1.2%
Concentric Network Corp. - Sr. Notes
12.75% due 12/15/07 ..................................... 150 51
Exodus Communications, Inc.
10.75% due 12/15/09 ..................................... 300 102
Exodus Communications, Inc. - Sr Notes
11.25% due 07/01/08 ..................................... 150 52
11.625% due 07/15/10 .................................... 650 231
PSINet, Inc. - Sr. Notes
10.0% due 02/15/05 ...................................... 200 13
191
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
HIGH YIELD BOND FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINUED
Computer Software & Services - Continued
PSINet, Inc. - Sr. Notes
11.0% due 08/01/09 ...................................... 50 $ 3
11.5% due 11/01/08 ...................................... 375 24
-------
476
Construction - 0.4%
Beazer Homes USA , Inc. - Sr. Notes
8.625% due 05/15/11 ..................................... 115 116
Kansas City Southern Railway Co.
9.5% due 10/01/08 ....................................... 25 26
-------
142
Consumer Miscellaneous - 2.0%
Hasbro, Inc. - Notes
7.95% due 03/15/03 ...................................... 83 80
8.5% due 03/15/06 ....................................... 34 33
Lin Holdings Corp. - Sr. Disc. Notes
1.0% due 03/01/08 ....................................... 750 579
Resolution Performance Products - Sr. Sub Notes
13.5% due 11/15/10 ...................................... 65 70
-------
762
Container - 3.8%
BWAY Corp. - Ser. B
10.25% due 04/15/07 ..................................... 175 166
Crown Cork & Seal Co., Inc. - Notes
8.375% due 01/15/05 ..................................... 175 72
Gaylord Container Corp. - Sr. Notes Ser. B
9.375% due 06/15/07 ..................................... 645 407
Owens-Illinois Inc.
7.85% due 05/15/04 ...................................... 165 130
Owens-Ilinois, Inc. - Debs
7.5% due 05/15/10 ....................................... 210 149
Stone Container Corp.
9.75% due 02/01/11 ...................................... 350 356
Stone Container Corp. - Sr. Notes 144A
9.25% due 02/01/08 ...................................... 200 203
-------
1,483
Diversified Operations - 1.0%
Consumers International - Sr. Notes
10.25% due 04/01/05 ..................................... 350 112
Pacifica Papers, Inc. - Sr. Notes
10.0% due 03/15/09 ...................................... 50 53
Roller Bearing Co. America, Inc. - Ser. B
9.625% due 06/15/07 ..................................... 30 28
SCG Holdings Corp.
12.0% due 08/01/09 ...................................... 229 144
Westinghouse Air Brake Co. - Sr Notes
9.375% due 06/15/05 ..................................... 45 45
-------
382
Electric Power - 3.9%
AES Corp. - Sr. Notes
8.875% due 02/15/11 ..................................... 485 473
Calpine Corp. - Sr. Notes
8.5% due 02/15/11 ....................................... 600 577
8.625% due 08/15/10 ..................................... 100 97
CMS Energy Corp. Sr. Notes
7.5% due 01/15/09 ....................................... 200 186
Western Resources, Inc.
7.125% due 08/01/09 ..................................... 15 14
Western Resources, Inc. - Sr. Notes
6.875% due 08/01/04 ..................................... 180 172
-------
1,519
Electrical Equipment - 2.0%
Amkor Technologies, Inc.
9.25% due 05/01/06 ...................................... 50 48
9.25% due 02/15/08 ...................................... 475 446
Amkor Technologies, Inc. - Sr. Sub Notes
10.5% due 05/01/09 ...................................... 175 165
Wesco Distribution, Inc. - Ser. B
9.125% due 06/01/08 ..................................... 100 95
-------
754
Electronic Products & Services - 0.3%
ViaSystems, Inc. Sr. Sub Notes Ser B
9.75% due 06/01/07 ...................................... 230 115
Financial Services - 0.6%
AMSC Acquisition Co., Inc. - Ser. B
12.25% due 03/31/08 ..................................... 50 13
Tembec Finance Corp. - Sr. Notes
9.875% due 09/30/05 ..................................... 195 201
-------
214
Food, Beverage & Tobacco - 2.0%
Aurora Foods, Inc. - Sr. Sub Notes
9.875% due 02/15/07 ..................................... 230 1202
8.75% due 07/01/08 ...................................... 75 62
Azurix Corp.
10.75% due 02/15/10 ..................................... 145 146
Nash-Finch Co. - Ser. B
8.5% due 05/01/08 ....................................... 225 213
New World Pasta Co.
9.25% due 02/15/09 ...................................... 225 148
-------
771
Health Care Products - 4.8%
Alaris Medical Systems, Inc.
9.75% due 12/01/06 ...................................... 850 595
Alaris Medical, Inc. - Sr. Disc Notes
1.0% due 08/01/08 ....................................... 150 38
Bergen Brunswig Corp.
7.375% due 01/15/03 ..................................... 250 249
Conmed Corp.
9.0% due 03/15/08 ....................................... 340 333
192
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
HIGH YIELD BOND FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINUED
Health Care Products - Continued
Mediq, Inc.
11.0% due 06/01/08 ...................................... $ 125 $ 1
Owens & Minor, Inc.
10.875% due 06/01/06 .................................... 131 138
Owens Illinois, Inc.
7.15% due 05/15/05 ...................................... 315 233
Packard Bioscience, Co. - Sr. Sub Notes
9.375% due 03/01/07 ..................................... 125 118
Warner Chilcott, Inc.
12.625% due 02/15/08 .................................... 125 138
-------
1,843
Health Care Services - 3.3%
Beverly Enterprises, Inc.
9.0% due 02/15/06 ....................................... 410 419
9.625% due 04/15/09 ..................................... 130 133
Bio-Rad Laboratories, Inc.
11.625% due 02/15/07 .................................... 107 116
Fisher Scientific International, Inc. - Sr. Sub Notes
9.0% due 02/01/08 ....................................... 125 124
HCA-The Healthcare Corp. - Notes
8.75% due 09/01/10 ...................................... 65 69
Manor Care, Inc. - Sr. Notes 144A
8.0% due 03/01/08 ....................................... 25 25
Omnicare, Inc. - Sr. Sub Notes 144A
8.125% due 03/15/11 ..................................... 50 52
Tenet Healthcare Corp. - Sr. Sub Notes
8.125% due 12/01/08 ..................................... 75 77
8.625% due 01/15/07 ..................................... 50 52
Triad Hospitals
8.75% due 05/01/09 ...................................... 50 51
Universal Hospital Services - Sr Notes
10.25% due 03/01/08 ..................................... 150 136
-------
1,254
Household Appliances / Furnishings - 0.4%
Mattress Discounters Corp.
12.625% due 07/15/07 .................................... 75 23
Sealy Mattress Co. - Ser. B
0.0% due 12/15/07 ....................................... 175 143
-------
166
Housing - 2.3%
American Standard Cos., Inc.
7.625% due 02/15/10 ..................................... 85 84
Grove Worldwide LLC - Sr. Sub. Notes
9.25% due 05/01/08 ...................................... 85 1
KB Home - Sr. Sub Notes
9.5% due 02/15/11 ....................................... 280 281
Standard Pacific Corp. - Sr. Notes
8.5% due 06/15/07 ....................................... 110 108
8.5% due 04/01/09 ....................................... 220 216
Standard Pacific Corp. - Sr. Notes
9.5% due 09/15/10 ....................................... 200 201
-------
891
Industrial Tech - div - 0.7%
Conseco, Inc. - Sr. Notes
10.75% due 06/15/08 ..................................... 265 260
Leisure & Recreation - 4.9%
Ackerley Group, Inc. - Sr. Sub Notes Ser. B
9.0% due 01/15/09 ....................................... 400 350
AMC Entertainment, Inc. - Sr. Sub. Notes
9.5% due 03/15/09 ....................................... 50 46
9.5% due 02/01/11 ....................................... 375 334
John Q. Hammons Hotels
8.875% due 02/15/04 ..................................... 425 420
Physician Sales & Service, Inc.
8.5% due 10/01/07 ....................................... 230 214
Station Casinos, Inc. - Sr. Sub Notes
8.875% due 12/01/08 ..................................... 150 151
9.875% due 07/01/10 ..................................... 100 103
True Temper Sports, Inc. - Sr. Sub. Notes
10.875% due 12/01/08 .................................... 275 280
-------
1,898
Machinery - 0.4%
Anthony Crane Rental - Sr. Notes
10.375% due 08/01/08 .................................... 300 155
Media - Publishing - 0.3%
Sun Media Corp. - Sr. Sub. Notes
9.5% due 05/15/07 ....................................... 135 134
Media - TV & Radio - 11.9%
Adelphia Communications Corp.
9.375% due 11/15/09 ..................................... 50 48
9.875% due 03/01/07 ..................................... 100 99
Allbritton Communications Co. - Sr Sub. Debs. Ser. B
9.75% due 11/30/07 ...................................... 50 51
Cablevision SA - Bonds
13.75% due 05/01/09 ..................................... 60 42
Century Communications Corp. - Cl. A
8.875% due 01/15/07 ..................................... 75 71
Century Communications Corp. - Sr Disc. Notes
0.0% due 01/15/08 ....................................... 650 299
Charter Communications Holdings LLC - Sr. Notes
10.75% due 10/01/09 ..................................... 100 105
Charter Communications Holdings LLC - Sr. Notes 144A
10.0% due 05/15/11 ...................................... 100 101
193
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
HIGH YIELD BOND FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINUED
Media - TV Continued
Charter Communications Holdings, LLC - Sr. Notes
8.625% due 04/01/09 ..................................... $ 525 $ 499
Classic Cable, Inc.
10.5% due 03/01/10 ...................................... 560 162
Classic Cable, Inc. - Ser. B
9.375% due 08/01/09 ..................................... 20 6
CSC Holdings, Inc. - Sr. Notes 144A
7.625% due 04/01/11 ..................................... 100 95
EchoStar DBS Corp. - Sr. Notes
9.375% due 02/01/09 ..................................... 675 673
Frontiervision Holding L.P. - Sr Disc. Notes
1.0% due 09/15/07 ....................................... 200 207
Granite Broadcassting Corp. - Sr Sub. Notes
8.875% due 05/15/08 ..................................... 175 122
Insight Communications Company, Inc. - Sr. Notes 144A
0.0% due 02/15/11 ....................................... 350 199
Mediacom Broadband LLC - Sr. Notes 144A
11.0% due 07/15/13 ...................................... 200 203
Quebecor Media, Inc. - Sr. Disc Notes 144A
0.0% due 07/15/11 ....................................... 680 349
Rogers Communications
8.875% due 07/15/07 ..................................... 200 200
Telewest Communications - Sr. Notes
9.875% due 02/01/10 ..................................... 650 543
Time Warner Telecom, Inc.
10.125% due 02/01/11 .................................... 370 337
United Pan Europe Communications - Sr. Notes Ser. B
11.25% due 02/01/10 ..................................... 175 63
11.5% due 02/01/10 ...................................... 125 45
Young Broadcasting, Inc.
8.75% due 06/15/07 ...................................... 50 46
-------
4,565
Metal Production & Fabrication - 0.3%
Century Aluminum Co. - Ser. 144A
11.75% due 04/15/08 ..................................... 95 99
Metals & Mining - 0.1%
Neenah Corp. - Ser. F
11.125% due 05/01/07 .................................... 40 21
Neenah Corp. - Sr. Sub. Notes
11.125% due 05/01/07 .................................... 10 6
-------
27
Natural Gas Distribution - 1.2%
Energy Corp. of America - Sr. Sub. Notes
9.5% due 05/15/07 ....................................... 550 445
Oil & Natural Gas Exploration & Production - 2.0%
Costilla Energy, Inc. - Sr. Notes
10.25% due 10/01/06 ..................................... 68
Plains Resources, Inc.
10.25% due 03/15/06 ..................................... 200 206
Plains Resources, Inc. - Sr. Sub Notes
10.25% due 03/15/06 ..................................... 175 180
Pride International, Inc. - Sr Notes
9.375% due 05/01/07 ..................................... 100 106
10.0% due 06/01/09 ...................................... 100 111
Texas Petrochemical Corp. - Sr. Sub. Notes
11.125% due 07/01/06 .................................... 175 156
-------
759
Oil - Equipment & Service - 0.3%
ICO, Inc. - Sr. Notes
10.375% due 06/01/07 .................................... 50 50
Pioneer Natural Resources Co.
9.625% due 04/01/10 ..................................... 45 50
-------
100
Paper & Forest Products - 2.3%
Caraustar Industries, Inc. - Sr. Sub Notes - Ser. 144A
9.875% due 04/01/11 ..................................... 300 282
Doman Industries, Ltd.
12.0% due 07/01/04 ...................................... 75 77
Doman Industries, Ltd. - Sr. Notes
8.75% due 03/15/04 ...................................... 275 165
Millar Western Forest Products, Ltd - Sr. Notes
9.875% due 05/15/08 ..................................... 200 188
Paperboard Industries International, Inc. - Sr. Notes
8.375% due 09/15/07 ..................................... 185 167
Tembec Indiana , Inc. - Sr. Notes
8.5% due 02/01/11 ....................................... 15 15
-------
894
Pollution Control - 0.6%
Allied Waste North America
7.625% due 01/01/06 ..................................... 250 247
Real Estate Development - 0.3%
D.R. Horton, Inc.
8.0% due 02/01/09 ....................................... 60 58
Del Webb Corp. - Sr. Sub. Debs ..........................
10.25% due 02/15/10 ..................................... 75 77
-------
135
Real Estate Operations - 0.1%
The IT Group, Inc.
11.25% due 04/01/09 ..................................... 40 37
Retail - Department Stores - 0.3%
J.C. Penney Co., Inc.
7.6% due 04/01/07 ....................................... 50 47
194
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
HIGH YIELD BOND FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINUED
Retail - Department Stores - Continued
J.C. Penney Co., Inc. Notes
7.375% due 08/15/08 ..................................... $ 85 $ 76
-------
123
Retail - Drug Stores - 1.3%
Duane Reade, Inc. - Sr. Sub. Notes
9.25% due 02/15/08 ...................................... 500 490
Retail - Food - 0.1%
Stater Bros. Holdings, Inc. - Sr Notes
10.75% due 08/15/06 ..................................... 55 52
Retailers - Food & Drug - 1.2%
Rite Aid Corp. - Notes
7.125% due 01/15/07 ..................................... 300 250
Rite Aid Corp. - Sr. Notes 144A
11.25% due 07/01/08 ..................................... 200 200
-------
450
Shoe & Apparel Manufacturing - 1.4%
Levi Strauss & Co.
11.625% due 01/15/08 .................................... 225 203
Levi Strauss & Co. - Notes
7.0% due 11/01/06 ....................................... 260 195
WestPoint Stevens, Inc. - Sr. Notes
7.875% due 06/15/08 ..................................... 350 128
-------
526
Steel - 2.3%
AK Steel Corp.
7.875% due 02/15/09 ..................................... 400 392
AK Steel Corp. - Sr. Notes
9.125% due 12/15/06 ..................................... 100 103
Algoma Steel, Inc.
12.375% due 07/15/05 .................................... 300 60
Armco, Inc. - Sr. Notes
9.0% due 09/15/07 ....................................... 75 74
Bayou Steel Corp.
9.5% due 05/15/08 ....................................... 10 6
National Steel Corp.
9.875% due 03/01/09 ..................................... 320 125
Weirton Steel Corp. - Sr. Notes
11.375% due 07/01/04 .................................... 375 113
-------
873
Telecommunication Equipment - 3.1%
Fairchild Semiconductor Corp.
10.375% due 10/01/07 .................................... 35 34
Fairchild Semiconductor Corp. - Sr Sub. Notes
10.125% due 03/15/07 .................................... 400 384
10.5% due 02/01/09 ...................................... 200 193
L-3 Communications Corp. - Sr. Sub. Notes
8.5% due 05/15/08 ....................................... 35 36
Nextel Communications, Inc. - Sr Notes
9.375% due 11/15/09 ..................................... 350 276
NTL, Inc. - Sr. Notes
10.0% due 02/15/07 ...................................... 100 68
Satelites Mexicanos SA - Sr. Notes
10.125% due 11/01/04 .................................... 125 85
Williams Communications Group, Inc. - Sr. Notes
10.875% due 10/01/09 .................................... 250 103
Winstar Communications, Inc. - Sr Notes
12.75% due 04/15/10 ..................................... 150 2
-------
1,181
Telecommunication Services - 12.6%
BTI Telecom Corp. - Sr. Notes
10.5% due 09/15/07 ...................................... 100 20
Crown Castle International Corp. - Sr. Disc. Notes
1.0% due 11/15/07 ....................................... 250 192
Flag Telecom Holdings, Ltd. - Sr Notes
11.625% due 03/30/10 .................................... 200 136
Fonda Group, Inc. - Sr. Sub Notes
9.5% due 03/01/07 ....................................... 125 101
GCI, Inc. - Sr. Notes
9.75% due 08/01/07 ...................................... 575 562
Global Crossing Holdings, Ltd.
9.125% due 11/15/06 ..................................... 450 354
Global Crossing Holdings, Ltd. - Sr Sub Notes 144A
8.7% due 08/01/07 ....................................... 300 229
GST Telecommunications, Inc. - Sr Sub Notes
12.75% due 11/15/07 ..................................... 50
GT Group Telecom - Sr. Disc. Notes
0.0% due 02/01/10 ....................................... 630 208
Hyperion Telecommunications, Inc. - Sr. Disc. Notes
13.0% due 04/15/03 ...................................... 250 188
Hyperion Telecommunications, Inc. - Sr. Notes
12.25% due 09/01/04 ..................................... 190 156
Insight Midwest LP
9.75% due 10/01/09 ...................................... 235 241
Insight Midwest LP - Sr. Notes 144A
10.5% due 11/01/10 ...................................... 40 42
KMC Telecom Holdings, Inc. - Sr Disc. Notes
1.0% due 02/15/08 ....................................... 275 25
Level 3 Communications, Inc.
11.25% due 03/15/10 ..................................... 200 86
Level 3 Communications, Inc. - Sr Notes
9.125% due 05/01/08 ..................................... 230 97
McLeodUSA, Inc.
8.125% due 02/15/09 ..................................... 175 95
McLeodUSA, Inc. - Sr. Notes
8.375% due 03/15/08 ..................................... 380 209
195
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
HIGH YIELD BOND FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINUED
Telecommunication Services - Continued
McLeodUSA, Inc. - Sr. Notes
9.5% due 11/01/08 ....................................... $ 55 $ 32
Nextel Communications, Inc. - Sr. Disc. Notes
1.0% due 10/31/07 ....................................... 650 422
NTL Communications Corp. - Sr. Notes
1.0% due 10/01/08 ....................................... 615 271
RCN Corp.
0.0% due 10/15/07 ....................................... 50 13
10.0% due 10/15/07 ...................................... 200 84
RCN Corp. - Sr. Disc. Notes
1.0% due 07/01/08 ....................................... 425 111
Rogers Cantel, Inc. Sr. Sec. Debs
9.375% due 06/01/08 ..................................... 225 223
Rogers Wireless, Inc.
9.625% due 05/01/11 ..................................... 175 175
Telecommunications Techniques Co.
9.75% due 05/15/08 ...................................... 240 204
Time Warner Telecom Llc - Sr. Notes
9.75% due 07/15/08 ...................................... 395 355
------
4,831
Telephone - 0.4%
ITC DeltaCom, Inc. - Sr. Notes
8.875% due 03/01/08 ..................................... 125 71
9.75% due 11/15/08 ...................................... 75 46
Nextlink Communications, Inc. - Sr Disc. Notes
1.0% due 04/15/08 ....................................... 300 48
------
165
Transportation Services - 1.7%
Air Canada, Inc. - Sr. Notes - Ser 144A
10.25% due 03/15/11 ..................................... 555 508
Dunlop Standard Aero Holdings - Sr Notes
11.875% due 05/15/09 .................................... 150 158
------
666
------
TOTAL PUBLICLY-TRADED-BONDS- .................... 93.8% 36,062
------
Shares
COMMON STOCK
Food, Beverage & Tobacco - 0.0%
Aurora Foods, Inc. ...................................... 2,213 11
------
TOTAL COMMON STOCK- 0.0% 11
------
PREFERRED STOCK
Media - Publishing - 0.3%
Primedia, Inc. .......................................... 1,250 97
Telecommunication Services - 0.0%
XO Communications, Inc. ................................. 136 8
------
TOTAL PREFERRED STOCK- 0.3% 105
Market
Name of Issuer Shares Value
(000's)
WARRANTS
Household Appliances / Furnishings - 0.0%
Mattress Discounters Corp.
expires 07/15/07 ...................................... 75 $ 0
Telecommunication Services - 0.0%
GT Group Telecom, Inc.
expires 02/01/10 ...................................... 180 5
KMC Telecom Holdings, Inc. - WT 144A
expires 04/15/08 ...................................... 250 1
------
TOTAL WARRANTS- 0.0% 6
------
Par
Value
(000's)
SHORT-TERM INVESTMENTS - 4.0%
Investment in joint trading account
3.97% due 07/02/01 ................................... $1,554 1,554
------ -------
TOTAL INVESTMENTS- 98.1% 37,738
Other Assets & Liabilities, Net- 1.9% 725
------ -------
NET ASSETS- 100.0% $38,463
====== =======
144/ Pursuant to Rule 144A under the Securities Act of 1993, these securities
may be resold in transactions exempt from registration, normal/to qualified
institutional buyers. At June 30, 2001, securities aggregated $3,021 or 7.8% of
net assets of the Fund.
See notes to financial statements.
196
SCHEDULE OF INVESTMENTS
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
GLOBAL BOND FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS
Australia - 0.9%
Commonwealth of Australia - Bonds
(GOVF)
7.5% due 07/15/05 ................................. 1,000 $ 542
Canada - 0.9%
Government of Canada - Bonds (GOVF)
7.0% due 12/01/06 ................................. 500 348
Tellus Corp. (TELS)
7.5% due 06/01/06 ................................. 250 165
-------
513
Denmark - 2.2%
Danske Kredit (LEND)
6.0% due 10/01/29 ................................. 5,932 645
Kingdom of Denmark -
Bullet Bond (GOVF)
8.0% due 03/15/06 ................................. 5,080 649
-------
1,294
Finland - 4.6%
Republic of Finland - Bonds (GOVF)
5.75% due 02/23/11 ................................ 3,050 2,662
France - 4.6%
Government of France - Bonds (GOVF)
5.25% due 04/25/08 ................................ 1,580 1,362
Government of France - O.A.T. (GOVF)
5.5% due 04/25/07 ................................. 1,490 1,308
-------
2,670
Germany - 16.9%
Bayer Hypo Vereins (BANK)
5.0% due 04/02/08 ................................. 1,000 835
Bundesrepublic Deutschland - Bonds
(GOVF)
6.75% due 04/22/03 ................................ 2,500 2,200
Federal Republic of Germany - Bonds
(GOVF)
5.25% due 01/04/08 ................................ 3,750 3,241
5.25% due 01/04/11 ................................ 750 643
6.875% due 05/12/05 ............................... 2,350 2,146
Kredit Fur Wiederaufbau (BANK)
5.0% due 07/04/11 ................................. 900 740
-------
9,805
Greece - 1.6%
Hellenic Republic - Bonds (GOVF)
8.6% due 03/26/08 ................................. 646 650
8.8% due 06/19/07 ................................. 293 294
-------
944
Ireland - 1.0%
Republic of Ireland - Debs. (GOVF)
4.0% due 04/18/10 ................................. 750 578
Japan - 6.3%
Government of Japan - Bonds (GOVF)
0.9% due 12/22/08 ................................. 370,000 2,987
1.8% due 03/22/10 ................................. 80,000 686
-------
3,673
Luxembourg - 1.5%
KFW International Finance, Inc.
(GOVF)
1.75% due 03/23/10 ................................ 100,000 862
Netherlands - 4.9%
Government of Netherlands - Bonds
(GOVF)
6.5% due 04/15/03 ................................. 1,500 1,316
Kingdom of Netherlands (GOVF)
5.5% due 07/15/10 ................................. 1,780 1,538
-------
2,854
New Zealand - 0.7%
Government of New Zealand - Bonds
(GOVF)
8.0% due 11/15/06 ................................. 1,000 430
Norway - 0.9%
Norwegian Government - Bonds (GOVF)
6.75% due 01/15/07 ................................ 5,000 534
Spain - 1.5%
Kingdom of Spain (GOVF)
4.0% due 01/31/10 ................................. 1,150 887
Supra National - 16.1%
Asian Development Bank (BANK)
5.625% due 02/18/02 ............................... 150,000 1,244
Bank of Ireland (BANK)
6.45% due 02/10/10 ................................ 1,000 861
BAT International Finance (FOOD)
4.875% due 02/25/09 ............................... 600 466
British Telecommunications
PLC (GOVF)
6.875% due 02/15/11 ............................... 1,120 959
European Investment Bank - Notes (GOVF)
3.0% due 09/20/06 ................................. 230,000 2,091
FIixed Link Finance BV (FINL)
6.3% due 08/28/25 ................................. 250 352
International-American Development Bank -
Bonds (BANK)
1.9% due 07/08/09 ................................. 100,000 873
Kingdom of Spain - Notes (GOVF)
3.1% due 09/20/06 ................................. 120,000 1,098
197
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
GLOBAL BOND FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINUED
Supra National - Continued
Mannesman Finance BV (MACH)
4.75% due 05/27/09 ................................. 750 $ 581
Royal Bank of Scotland PLC (BANK)
8.375% due 01/29/07 ................................ 300 459
Standard Charter Bank (BANK)
5.375% due 05/06/09 ................................ 450 355
-------
9,339
Sweden - 0.8%
Swedish Government (GOVF)
5.0% due 01/28/09 .................................. 5,200 468
United Kingdom - 3.7%
Treasury (GOVF)
8.0% due 12/07/15 .................................. 540 968
U.K. Treasury (GOVF)
7.25% due 12/07/07 ................................. 555 856
U.K. Treasury - Bonds (GOVF)
8.5% due 12/07/05 .................................. 200 314
-------
2,138
United States - 26.8%
Aetna Inc. SR NT (INSU)
7.375% due 03/01/06 ................................ 100 99
American Tower Corp.
- Sr. Notes 144A (TELS)
9.375% due 02/01/09 ................................ 225 212
Bank One Corp. - Notes (BANK)
6.5% due 02/01/06 .................................. 250 253
Belo Corp. - Debs (MEDI)
7.25% due 09/15/27 ................................. 425 363
Belo Corp. - Sr Notes (MEDI)
7.125% due 06/01/07 ................................ 100 99
CenturyTel, Inc. - Sr. Notes Ser. H
(UTIT)
8.375% due 10/15/10 ................................ 250 261
Chancellor Media Corp. (MEDI)
8.0% due 11/01/08 .................................. 125 130
Charter Communications Holdings
LLC - Sr Notes (MEDI)
10.75% due 10/01/09 ................................ 50 52
Charter Communications Holdings
LLC - Sr Notes144A (MEDI)
10.0% due 05/15/11 ................................. 375 381
Clear Channel Communications, Inc.
(MEDI)
7.65% due 09/15/10 ................................. 250 258
Comcast Cable Communications
(MEDI)
6.75% due 01/30/11 ................................. 100 98
Cox Radio, Inc. - Sr Notes (MEDI)
6.625% due 02/15/06 ................................ 150 149
Crown Castle International Corp.
- Sr. Notes (TELS)
10.75% due 08/01/11 ................................ 75 73
Federal Home Loan Mortgage (GOVA)
4.5% due 03/15/04 .................................. 740 626
Federal Natioanl Mortgage Assoc.
(GOVA)
5.125% due 02/13/04 ................................ 1,000 1,005
6.0% due 05/15/08 .................................. 225 226
6.5% due 08/01/13 .................................. 444 446
6.5% due 09/01/30 .................................. 489 481
7.0% due 11/01/30 .................................. 745 748
7.0% due 12/01/30 .................................. 583 586
7.5% due 12/01/30 .................................. 403 411
8.0% due 12/01/30 .................................. 380 392
Federal National Mortgage Assoc. - Sr.
Notes (GOVA)
2.125% due 10/09/07 ................................ 100,000 880
Fox Sports Networks LLC - Sr. Disc.
Notes (MEDI)
0.0% due 08/15/07 .................................. 125 119
Liberty Media Corp. - Bonds (MEDI)
7.875% due 07/15/09 ................................ 100 96
Nisource Finance Corp. (FINL)
7.875% due 11/15/10 ................................ 125 132
Nortel Networks, Ltd. - Notes (TRAN)
6.125% due 02/15/06 ................................ 125 108
Progress Energy, Inc. - Sr. Notes
(UTIE)
7.1% due 03/01/11 .................................. 100 101
Six Flags, Inc. - Sr Notes 144A (LEIS)
9.5% due 02/01/09 .................................. 100 100
Spectrasite Holdings, Inc. - Sr. Notes
Ser. B (TELS)
10.75% due 03/15/10 ................................ 75 63
Tellus Corp. NT (TELS)
8.0% due 06/01/11 .................................. 75 77
The Kroger Co. (TELS)
6.8% due 04/01/11 .................................. 75 74
Time Warner, Inc. -
Notes (MEDI)
8.18% due 08/15/07 ................................. 150 163
U.S. Treasury - Bonds (GOVE)
5.25% due 02/15/29 ................................. 250 229
7.25% due 05/15/16 ................................. 1,500 1,709
8.875% due 08/15/17 ................................ 425 558
U.S. Treasury - Notes (GOVE)
5.75% due 08/15/03 ................................. 1,000 1,028
6.25% due 02/15/07 ................................. 1,325 1,398
6.875% due 05/15/06 ................................ 1,000 1,078
Viacom, Inc. (MEDI)
7.7% due 07/30/10 .................................. 150 158
Waste Management, Inc. - Sr. Notes
(POLL)
7.375% due 08/01/10 ................................ 125 125
-------
15,545
-------
TOTAL PUBLICLY-TRADED-BOND .......................... 95.9% 55,738
-------
198
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2001
--------------------------------------------------------------------------------
GLOBAL BOND FUND
Par Market
Name of Issuer Value Value
(000's) (000's)
SHORT-TERM INVESTMENTS
Investment in joint trading account - 2.0%
Investment in joint trading account
3.97% due 07/02/01 ...................... $ 1,146 $ 1,146
Shares
Cash Equivalents - 7.2%
Navigator Securities
Lending Prime Portfolio ** ............. 4,185,781 4,186
---------- ----------
TOTAL SHORT-TERM INVESTMENTS-....... 9.2% 5,332
---------- ----------
TOTAL INVESTMENTS- ................... 105.1% 61,070
Other Assets & Liabilities, Net .. (5.1)% (2,961)
---------- ----------
NET ASSETS- ................... 100.0% $ 58,109
========== ==========
** Represents investment of security lending collateral.
See notes to financial statements.
SUMMARY OF LONG-TERM SECURITIES BY INDUSTRY
Market % of
Industry Value Long-Term
Industry Abbreviation (000s) Investments
Foreign Governmental ..................... GOVF $32,617 58.5%
U.S. Governmental ........................ GOVE 6,000 10.7
U.S. Government Agencies ................. GOVA 5,801 10.4
Bank ..................................... BANK 5,620 10.1
Media - TV & Radio ....................... MEDI 2,066 3.7
Telecommunication Services ............... TELS 664 1.2
Personal & Commercial Lending ............ LEND 645 1.2
Machinery ................................ MACH 581 1.0
Financial Services ....................... FINL 484 0.9
Food, Beverage & Tobacco ................. FOOD 466 0.8
Telephone ................................ UTIT 261 0.5
Pollution Control ........................ POLL 125 0.2
Transportation ........................... TRAN 108 0.2
Electric Power ........................... UTIE 101 0.2
Leisure & Recreation ..................... LEIS 100 0.2
Insurance ................................ INSU 99 0.2
------- -----
$55,738 100.0%
======= =====
199
NOTES TO FINANCIAL STATEMENTS
JOHN HANCOCK VARIABLE SERIES TRUST I
(UNAUDITED)
June 30, 2001
--------------------------------------------------------------------------------
(000's Omitted)
NOTE A--ORGANIZATION
The John Hancock Variable Series Trust I (the "Trust") is a diversified
open-end management investment company registered under the Investment Company
Act of 1940, as amended. The Trust is organized as a Massachusetts business
trust. The Trust consists of thirty-three funds: Large Cap Growth, Fundamental
Growth, Aggressive Balanced, Active Bond, Active Bond II (formerly, CORE Bond),
Emerging Markets Equity, International Equity Index, International Equity, Small
Cap Growth, Health Sciences, Global Balanced, Mid Cap Growth, Mid Cap Blend,
Large Cap Value, Large Cap Value CORE, Large Cap Value CORE II (formerly,
American Leaders Large Cap Value), Large/Mid Cap Value, Money Market, Large/Mid
Cap Value II (formerly, Mid Cap Value), Small/Mid Cap Growth, Bond Index, Large
Cap Aggressive Growth, Small/Mid Cap CORE, Small Cap Value(formerly, Small/Mid
Cap Value), Real Estate Equity, Growth & Income, Managed, Short-Term Bond, Small
Cap Equity, International Opportunities, Equity Index, High Yield Bond and
Global Bond Funds (collectively, "the Funds"). The Trust may add or delete Funds
in the future to accommodate various investment objectives. The Trust has issued
shares of beneficial interest exclusively to John Hancock Variable Life Account
U ("JHVLAU"), John Hancock Variable Life Account V ("JHVLAV"), John Hancock
Variable Life Account S ("JHVLAS"), and John Hancock Variable Annuity Account I
("JHVAAI") to fund policies and contracts issued by the John Hancock Variable
Life Insurance Company ("JHVLICO"), and to John Hancock Variable Annuity Account
U ("JHVAAU"), John Hancock Variable Annuity Account V ("JHVAAV"), John Hancock
Variable Life Insurance Account UV ("JHVLAUV"), John Hancock Variable Annuity
Account H ("JHVAAH"), and John Hancock Variable Annuity Account JF ("JHVAAJF")
to fund contracts and policies issued by John Hancock Life Insurance Company
("John Hancock" or "JHLICO") to Investors Partner Life Account L ("IPLL"), to
John Hancock Variable Life Account PPM-1 ("PPM-1"), and to John Hancock Variable
Life Account PPM-2 ("PPM-2").
NOTE B--ACCOUNTING POLICIES
VALUATION OF INVESTMENTS: For the Large Cap Growth, Fundamental Growth,
------------------------
Aggressive Balanced, Emerging Markets Equity, Small Cap Growth, Health Sciences,
Mid Cap Growth, Mid Cap Blend, Large Cap Value, Large Cap Value CORE, Large Cap
Value CORE II, Large/Mid Cap Value, Large/Mid Cap Value II, Small/Mid Cap
Growth, Large Cap Aggressive Growth, Small/Mid Cap CORE, Small Cap Value, Real
Estate Equity, Growth & Income, Managed, Small Cap Equity, and Equity Index
Funds: Common stocks and other such securities traded on national exchanges are
normally valued on the basis of closing prices. Securities traded in the
over-the-counter market and securities with no sales on the day of valuation are
normally valued at their last available bid price.
For the Active Bond, Active Bond II, Bond Index, Managed, Short-Term Bond,
High Yield Bond and Global Bond Funds: Debt investment securities having a
primary market over-the-counter are valued on the basis of valuations furnished
by a pricing service which determines valuations for normal institutional size
trading units of debt securities, without exclusive reliance upon quoted prices.
For the Money Market Fund: The Board of Trustees has determined that the
appropriate method for valuing Fund securities is amortized cost, so long as the
average weighted maturity of money market instruments comprising the Fund does
not exceed 90 days. Accordingly, Fund securities are valued at amortized cost,
which approximates market value. The amortized cost method involves valuing a
security at its cost on the date of purchase and thereafter assuming a constant
amortization to maturity of the difference between the principal amount due at
maturity and the cost of the security to the Fund.
For each of the Funds, short-term investments, with a maturity not to
exceed 60 days, are valued at amortized cost, which approximates market value.
For the International Equity Index, International Equity, Global Balanced
and International Opportunities
200
NOTES TO FINANCIAL STATEMENTS
JOHN HANCOCK VARIABLE SERIES TRUST I
(UNAUDITED)
June 30, 2001
--------------------------------------------------------------------------------
(000's Omitted)
NOTE B--ACCOUNTING POLICIES--CONTINUED
Funds: Investments in securities traded on national securities exchanges in the
United States or on equivalent foreign exchanges are normally valued at the last
quoted sales price on such exchanges as of the close of business on the date of
which assets are valued. Securities traded in the over-the-counter market and
securities traded with no sales on the day of valuation are normally valued at
their last available bid price. All Fund securities initially expressed in terms
of foreign currencies have been translated into U.S. Dollars as described in
"Currency Translation" below.
Investment securities for which no current market quotations are readily
available, including certain foreign securities, when held by the Funds, are
valued at fair value as determined in good faith by the Board of Trustees.
Investment security transactions are recorded on the date of purchase or sale.
REPURCHASE AGREEMENTS: The Funds may enter into repurchase agreements which
---------------------
are contracts under which a Fund would acquire a security for a relatively short
period (usually not more than 7 days) subject to the obligation of the seller to
repurchase and the Fund to resell such security at a fixed time and price
(representing the Funds' cost plus interest). A Fund will enter into repurchase
agreements only with member banks of the Federal Reserve System and with
"primary dealers" in United States government securities. The underlying
securities, which represent the collateral of the agreement, must be marked to
market daily to ensure that each repurchase agreement is fully collateralized at
all times. A Fund will not invest more than 10% of its net assets in repurchase
agreements maturing in more than 7 days.
JOINT REPURCHASE AGREEMENTS: The Active Bond and Small Cap Growth Funds,
---------------------------
along with other registered investment companies having a management contract
with John Hancock Advisers, Inc. ("Adviser"), an indirect wholly-owned
subsidiary of John Hancock, may participate in a joint repurchase agreement
pursuant to an exemptive order issued by the Securities and Exchange Commission.
Aggregate cash balances are invested in one or more repurchase agreements, whose
underlying securities are obligations of the U.S. Government and/or its
agencies. The Funds' custodian bank receives delivery of the underlying
securities for the joint repurchase agreement on the Funds' behalf. The Adviser
is responsible for ensuring that the agreement is fully collateralized at all
times. The International Equity, Large Cap Value CORE and Small/Mid Cap CORE
Funds, along with other registered investment companies having a management
contract with Goldman Sachs Asset Management, may participate in a joint
repurchase agreement pursuant to an exemptive order issued by the Securities and
Exchange Commission. Aggregate cash balances are invested in one or more
repurchase agreements, whose underlying securities are obligations of the U.S.
Government and/or its agencies. The Funds' custodian bank receives delivery of
the underlying securities for the joint repurchase agreement on the Funds'
behalf. Goldman Sachs Asset Management is responsible for ensuring that the
agreement is fully collateralized at all times.
JOINT TRADING ACCOUNT: Pursuant to an exemptive order issued by the
---------------------
Securities and Exchange Commission, the order permits the Funds to pool daily
uninvested cash balances into a joint account for the purpose of investing the
cash balances in short-term repurchase agreements, commercial paper and other
short-term investments which in no event will have a maturity in excess of 7
days. Joint account holdings as of June 30, 2001:
Name of Issuer Market Value
-------------- ------------
Abbott Laboratories, 4.10%, due 07/05/01 $29,990
AES Hawaii Inc., 3.82%, due 07/03/01 41,478
American General Financial Corp., 3.87%, due 07/05/01 49,984
Blue Ridge Asset, 3.78%, due 07/02/01 50,000
Deere John Capital Corp., 3.75%, due 07/03/01 49,995
Eagle Funding Capital Corp., 3.98%, due 07/02/01 36,025
201
NOTES TO FINANCIAL STATEMENTS
JOHN HANCOCK VARIABLE SERIES TRUST I
(UNAUDITED)
June 30, 2001
--------------------------------------------------------------------------------
(000's Omitted)
NOTE B--ACCOUNTING POLICIES--Continued
Name of Issuer Market Value
--------------
Ford Motor Credit Corp., 3.86%, due 07/02/01 $36,801
Ford Motor Credit Corp. Puerto Rico, 3.86%, due 07/03/01 13,099
Greenwich Funding Corp., 3.77%, due 07/02/01 18,774
Greenwich Funding Corp., 4.05%, due 07/06/01 7,496
Greenwich Funding Corp., 4.10%, due 07/05/01 3,421
National Australia Funding, 3.86%, due 07/05/01 14,807
Paccar Financial Corp., 4.05%, due 07/06/01 49,978
Petrobas Int'l Financial Corp., 3.85%, due 07/03/01 8,861
Prudential Funding Corp., 3.75%, due 07/02/01 6,584
Twin Towers Inc., 3.85%, due 07/03/01 5,102
Twin Towers Inc., 3.90%, due 07/05/01 43,986
Windmill Funding Corp., 4.05%, due 07/05/01 14,995
Windmill Funding Corp., 4.11%, due 07/06/01 34,984
--------
Joint Trading Account Totals $516,360
========
CURRENCY TRANSLATION: All assets or liabilities initially expressed in
--------------------
terms of foreign currencies are translated into U.S. dollars based on London
currency exchange quotations as of 5:00 p.m., London time, on the date of any
determination of the net asset value of the Funds. Unrealized exchange
adjustments are included in unrealized appreciation (depreciation) of
investments. Transactions affecting statement of operations accounts and net
realized gain (loss) on investments are translated at the rates prevailing at
the dates of transactions.
The Funds do not isolate that portion of the results of operations
resulting from changes in foreign exchange rates on investments from the
fluctuations arising from changes in market prices of securities held. Such
fluctuations are included with the net realized and unrealized gains or losses
from investments.
Reported net realized gains and losses on foreign currency transactions
represent net gains and losses from sales and maturities of forward foreign
currency contracts, disposition of foreign currencies, currency gains and losses
realized between trade and settlement dates of security transactions, and the
difference between the amounts of net investment income accrued and the U.S.
dollar amount actually received. Net unrealized foreign exchange gains and
losses arise from changes in the value of assets and liabilities other than
investments in securities, resulting from changes in the exchange rate.
DISCOUNT AND PREMIUM ON SECURITIES: The Funds accrete discount and amortize
----------------------------------
premium from par value on securities from either the date of issue or the date
of purchase over the life of the security.
EXPENSES: Expenses directly attributable to a Fund are charged to that
--------
Fund. Expenses not directly attributed to a Fund are allocated on the basis of
relative net assets.
BANK BORROWINGS: The Funds (except for Money Market and International
---------------
Equity Index Funds) are permitted to have bank borrowings for temporary or
emergency purposes, including the meeting of redemption requests that otherwise
might require the untimely disposition of securities. The Funds have entered
into a syndicated line of credit agreement with State Street Bank and Trust
Company ("SSBT"). This agreement enables the Funds to participate in an
unsecured line of credit, which permits borrowings up to $75 million,
collectively. Interest is charged to each Fund, based on its borrowing. In
addition, a commitment fee is charged to each Fund based on the average daily
unused portion of the line of credit and is allocated among the participating
Funds. Interest expense paid under the line of credit is
202
NOTES TO FINANCIAL STATEMENTS
JOHN HANCOCK VARIABLE SERIES TRUST I
(UNAUDITED)
June 30, 2001
--------------------------------------------------------------------------------
(000's Omitted)
NOTE B--ACCOUNTING POLICIES--CONTINUED
included under the caption "Other fees" in the Statement of Operations. The
following funds had borrowings under the line of credit during the period ended
June 30, 2001:
Average Daily Loan
Balance During the
Period for which Weighted
Loans were Average Interest
Fund Outstanding Interest Rate Expense
---- ----------- ------------- -------
Large Cap Growth .................. $2,065 4.70% $ 4
Mid Cap Blend ..................... 89 5.47 --
Large Cap Aggressive
Growth ........................... 1,086 4.95 --
Small/Mid Cap CORE ................ 210 6.02 --
Short-Term Bond ................... 1,568 5.95 1
International
Opportunities .................... 989 4.57 3
High Yield Bond ................... 113 6.57 --
Global Bond ....................... 273 4.85 1
SECURITIES LENDING: Certain Funds (Large Cap Growth, Active Bond,
------------------
International Equity Index, Small Cap Growth, Mid Cap Growth, Large Cap Value,
Large/Mid Cap Value II, Small/Mid Cap Growth, Growth & Income, Managed,
Short-Term Bond, International Opportunities and Global Bond Funds) have entered
into an agreement with SSBT to lend their securities to certain qualified
brokers who pay these Funds negotiated lender fees. These loans are
collateralized at all times with cash or securities with a market value at least
equal to the market value of the securities on loan. Cash collateral is invested
in a short-term instrument. As with other extensions of credit, these Funds may
bear the risk of delay of the loaned securities in recovery or even loss of
rights in the collateral should the borrower of the securities fail financially.
At June 30, 2001, the market value of the securities loaned and the market value
of the collateral were as follows:
Value of Securities
Fund Value of Securities Loaned Value of Collateral Collateral
---- -------------------------- ------------------- -------------------
Large Cap Growth $19,365 $20,023 -
Active Bond 239,427 247,041 -
International Equity 24,514 25,718 $85
Index
Small Cap Growth 15,490 15,318 849
Mid Cap Growth 11,799 12,189 -
Large Cap Value 5,585 5,765 -
Large/Mid Cap Value II 6,269 6,461 -
Small/Mid Cap Growth 27,428 28,339 -
Growth & Income 9,611 9,945 -
Managed 42,656 43,710 -
Short-Term Bond 12,320 11,816 753
International 13,057 13,433 275
Opportunities
Global Bond 4,102 4,186 -
FINANCIAL FUTURES CONTRACTS: The Large Cap Growth, Active Bond, Emerging
---------------------------
Markets Equity, International Equity Index, International Equity, Small Cap
Growth, Health Sciences, Global Balanced, Mid Cap Growth,
203
NOTES TO FINANCIAL STATEMENTS
JOHN HANCOCK VARIABLE SERIES TRUST I
(UNAUDITED)
June 30, 2001
--------------------------------------------------------------------------------
(000's Omitted)
NOTE B--ACCOUNTING POLICIES--Continued
Large Cap Value CORE, Large/Mid Cap Value, Large/Mid Cap Value II, Small/Mid Cap
Growth, Small Cap Value, Small/Mid Cap CORE, Real Estate Equity, Growth &
Income, Managed, Short-Term Bond, Equity Index, High Yield Bond and Global Bond
Funds may buy and sell financial futures contracts to hedge against the effects
of fluctuations in interest rates and other market conditions. At the time the
Fund enters into a financial futures contract, it will be required to deposit
with its custodian a specified amount of cash or U.S. government securities,
known as "initial margin". Each day, the futures contract is valued at the
official settlement price of the board of trade or U.S. commodities exchange.
Daily variation margin adjustments, arising from this "mark to market", are
recorded by the Funds as unrealized gains or losses.
When the contracts are closed, the Fund recognizes a gain or a loss. Risk
of entering into futures contracts include the possibility that there may be an
illiquid market and/or that a change in the value of the contract may not
correlate with changes in the value of the underlying securities. In addition,
the Fund could be prevented from opening or realizing the benefits of closing
out futures positions because of position limits or limits on daily price
fluctuations imposed by an exchange. At June 30, 2001, open financial futures
contracts were as follows:
Open Unrealized
Fund Contracts Position Expiration Month Gain (Loss)
---- --------- -------- ---------------- ----------
INTERNATIONAL EQUITY
INDEX
CAC 40 10 Euro Index 3 Long Sep. 01 $ 4
Futures
DAX Index Futures 1 Long Sep. 01 5
Nikkei 225 Index Futures 3 Long Sep. 01 2
UK Treasury Bond Futures 2 Long Sep. 01 (2)
----
$ 9
====
INTERNATIONAL EQUITY
DJ Euro 50 Index Futures 6 Long Sep. 01 $ 4
TOPIX Index Futures 4 Long Sep. 01 (3)
----
$ 1
====
LARGE CAP VALUE CORE
S&P 500 Index Futures 4 Long Sep. 01 $ 4
S&P Mini 500 Index 11 Long Sep. 01 (1)
Futures ----
$ 3
====
LARGE/MID CAP VALUE
S&P Mini 500 Index 7 Long Sep. 01 $ 3
Futures ====
LARGE/MID CAP VALUE II
S&P 500 Index Futures 3 Long Sep. 01 ($35)
====
SMALL/MID CAP CORE
Russell 2000 Index 2 Long Sep. 01 $14
Futures ====
SMALL CAP VALUE
Russell 2000 Index 6 Long Sep. 01 $32
Futures ====
EQUITY INDEX
S&P 500 Index Futures 56 Long Sep. 01 ($515)
=====
204
NOTES TO FINANCIAL STATEMENTS
JOHN HANCOCK VARIABLE SERIES TRUST I
(UNAUDITED)
June 30, 2001
--------------------------------------------------------------------------------
(000's Omitted)
NOTE B--ACCOUNTING POLICIES--CONTINUED
At June 30, 2001, the International Equity, Large Cap Value CORE and
Small/Mid Cap CORE Funds had deposited $36, $165 and $200, respectively, in
segregated accounts to cover initial margin requirements on open financial
futures contracts.
FORWARD FOREIGN CURRENCY CONTRACTS: The Funds may use forward foreign
----------------------------------
currency contracts to facilitate transactions in foreign securities and to
manage Funds' currency exposure. Contracts to buy generally are used to acquire
exposure to foreign currencies, while contracts to sell are used to hedge the
Funds' investments against currency fluctuations. Neither type of foreign
currency transaction will eliminate fluctuations in the prices of the Funds'
securities or prevent loss if the price of such securities should decline. The
U.S. dollar value of a forward foreign currency contract is determined using
forward exchange rates supplied by a quotation service. Realized gain (loss) on
the purchases and sales of forward foreign currency contracts is recognized on
settlement date.
As of June 30, 2001 the Emerging Markets Equity, International Equity
Index, Global Balanced, Managed and Global Bond Funds had open forward foreign
currency contracts which contractually obligate the Fund to deliver or receive
currencies at a specified date, as follows:
Principal Amount Unrealized
Fund Covered by Contract Expiration Month Gain (Loss)
---- ------------------- ---------------- -----------
EMERGING MARKETS EQUITY
Currency Sold
-------------
Mexican Peso 15,170 Jan. 02 ($98)
======
INTERNATIONAL EQUITY INDEX
Currency Purchased
------------------
Euro 455 Sep. 01 ($4)
Japanese Yen 102,700 Sep. 01 (29)
Pound Sterling 289 Sep. 01 3
------
($30)
======
Currency Sold
-------------
Euro 154 Sep. 01 $2
Japanese Yen 78,800 Sep. 01 9
Pound Sterling 175 Sep. 01 1
------
$12
======
GLOBAL BALANCED
Currency Purchased
------------------
Canadian Dollar 128 Sep. 01 $3
Euro 93 Jul. 01 (4)
Euro 214 Aug. 01 (13)
Euro 164 Sep. 01 (7)
Euro 399 Mar. 02 (6)
------
($27)
======
205
NOTES TO FINANCIAL STATEMENTS
JOHN HANCOCK VARIABLE SERIES TRUST I
(UNAUDITED)
June 30, 2001
--------------------------------------------------------------------------------
(000's Omitted)
NOTE B--ACCOUNTING POLICIES--Continued
Principal Amount Covered by Expiration Unrealized
Fund Contract Month Gain (Loss)
---- -------- ----- -----------
GLOBAL BALANCED-CONTINUED
Currency Sold
-------------
Canadian Dollar 207 Sep. 01 ($1)
Euro 39 Jul. 01 1
Euro 93 Sep. 01 4
Japanese Yen 5,907 Jul. 01 1
Japanese Yen 19,959 Aug. 01 15
Japanese Yen 5,072 Sep. 01 1
Japanese Yen 38,276 Mar. 02 3
--------
$24
========
MANAGED
Currency Purchased
------------------
Euro 46,363 Oct. 01 ($652)
Japanese Yen 4,850,237 Oct. 01 (445)
Pound Sterling 5,610 Oct. 01 (29)
Swiss Franc 15,760 Oct. 01 (132)
--------
($1,258)
========
Currency Sold
-------------
Euro 46,363 Oct. 01 $373
Japanese Yen 4,850,237 Oct. 01 1,335
Pound Sterling 5,610 Oct. 01 61
Swiss Franc 3,029 Jun. 01 11
Swiss Franc 12,731 Oct. 01 72
--------
$1,852
========
GLOBAL BOND
Currency Purchased
------------------
Australian Dollar 1,954 Sep. 01 $4
Euro 254,663 Jul. 01 (73)
Japanese Yen 114,590 Sep. 01 (7)
--------
($76)
========
Currency Sold
-------------
Euro 7,901 Jul. 01 $178
Euro 525 Sep. 01 10
Pound Sterling 700 Sep. 01 7
Swedish Krona 5,000 Sep. 01 20
--------
$215
========
FEDERAL INCOME TAXES: Each of the Funds intends to comply with the
--------------------
requirements of Subchapter M of the Internal Revenue Code applicable to
regulated investment companies and to distribute substantially all of its
taxable income to shareholders. Therefore, no federal income tax provision is
required.
206
NOTES TO FINANCIAL STATEMENTS
JOHN HANCOCK VARIABLE SERIES TRUST I
(UNAUDITED)
June 30, 2001
--------------------------------------------------------------------------------
(000's Omitted)
NOTE B--ACCOUNTING POLICIES--CONTINUED
As of December 31, 2000, the Funds had approximate net tax basis capital loss
carryforwards, which may be applied against any net taxable gains, as follows:
Small Cap Growth had $8,256, which expires in 2008; Money Market had $14 and
$78, which expire in 2007 and 2008, respectively; Bond Index had $158 and $557,
which expire in 2007 and 2008, respectively; Short-Term Bond had $131, $1,304
and $679, which expire in 2006, 2007 and 2008, respectively; High Yield Bond had
$276 and $513, which expire in 2007 and 2008, respectively; and Global Bond had
$1,204 and $1,947, which expire in 2007 and 2008, respectively.
DIVIDENDS, INTEREST AND DISTRIBUTIONS: Dividend income is recorded on the
-------------------------------------
ex-dividend date and interest income is recorded on the accrual basis. Dividend
income for the Aggressive Balanced, Emerging Markets Equity, International
Equity Index, International Equity, Health Sciences, Global Balanced, Mid Cap
Growth, Mid Cap Blend, Large Cap Value, Large/Mid Cap Value, Large/Mid Cap Value
II, Small/Mid Cap Growth, Large Cap Aggressive Growth, Real Estate Equity,
Growth & Income, Managed, International Opportunities and Equity Index Funds are
shown net of foreign taxes withheld of $1, $34, $268, $21, $1, $12, $3, $1, $11,
$1, $6, $2, $2, $8, $92, $80, $127 and $17, respectively. Realized gains and
losses from security transactions are determined on the basis of identified
cost.
A dividend of its net investment income will be declared and distributed
daily by the Money Market Fund. Dividends of net investment income will be
declared and distributed monthly by all other Funds. Each Fund will distribute
all of its net realized capital gains annually, at the end of its fiscal year.
ESTIMATES: The preparation of the financial statements in conformity with
---------
accounting principles generally accepted in the United States of America
requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported amounts of
revenues and expenses during the reporting period. Actual results could differ
from those estimates.
NOTE C--INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
On February 16, 2000, September 28, 2000, October 20, 2000 and April 6,
2001, the Board of Trustees of the Trust renewed its Investment Advisory
Agreement with John Hancock. For its services, John Hancock receives monthly
compensation at the following rates:
For the Large Cap Growth Fund, 0.40% on an annual basis of the first
$500,000 of the net assets of the Fund; 0.35% for net assets between $500,000
and $1,000,000; and 0.30% for net assets in excess of $1,000,000;
For the Fundamental Growth Fund, 0.90% on an annual basis of the first
$250,000 of the Fund's net assets; and 0.85% for net assets in excess of
$250,000;
For the Aggressive Balanced Fund, 0.675% on an annual basis of the first
$250,000 of the Fund's net assets; 0.625% for net assets between $250,000 and
$500,000; and 0.60% for net assets in excess of $500,000;
For the Active Bond Fund, 0.70% on an annual basis of the first $100,000 of
the net assets of the Fund; 0.65% for net assets between $100,000 and
$250,000; 0.61% for net assets between $250,000 and $500,000; 0.575% for net
assets between $500,000 and $1,000,000; and 0.55% for net assets in excess of
$1,000,000;
For the Active Bond II Fund, 0.70% on an annual basis of the first $100,000
of the net assets of the Fund; 0.65% for net assets between $100,000 and
$250,000; 0.61% for net assets between $250,000 and $500,000; 0.575% for net
assets between $500,000 and $1,000,000; and 0.55% for net assets in excess of
$1,000,000;
For the Emerging Markets Equity Fund, 1.30% on an annual basis of the first
$10,000 of the Fund's net assets; 1.20% for net assets between $10,000 and
$150,000; and 1.10% for net assets in excess of $150,000;
207
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
(UNAUDITED)
June 30, 2001
--------------------------------------------------------------------------------
(000's Omitted)
NOTE C--INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH
AFFILIATES--CONTINUED
For the International Equity Index Fund, 0.18% on an annual basis of
the first $100,000 of the Fund's net assets; 0.15% for net assets between
$100,000 and $200,000; and 0.11% for net assets in excess of $200,000;
For the International Equity Fund, 1.00% on an annual basis of the
first $50,000 of the Fund's net assets; 0.95% for net assets between
$50,000 and $200,000; and 0.90% for net assets in excess of $200,000;
For the Small Cap Growth Fund, 0.75% on an annual basis of the Fund's
net assets;
For the Health Sciences Fund, 1.00% on an annual basis of the first
$250,000 of the Fund's net assets; 0.95% of net assets in excess of
$250,000;
For the Global Balanced Fund, 1.05% on an annual basis of the first
$150,000 of the Fund's net assets; 0.95% for net assets between $150,000
and $300,000; 0.80% for net assets between $300,000 and $500,000; and 0.75%
for net assets in excess of $500,000;
For the Mid Cap Growth Fund, 0.85% on an annual basis of the first
$100,000 of the Fund's net assets; and 0.80% on an annual basis for net
assets in excess of $100,000;
For the Mid Cap Blend Fund, 0.75% on an annual basis of the first
$250,000 of the Fund's net assets; 0.70% for net assets between $250,000
and $500,000; and 0.65% for net assets in excess of $500,000;
For the Large Cap Value Fund, 0.75% on an annual basis of the Fund's
net assets;
For the Large Cap Value CORE Fund, 0.75% on an annual basis for the
first $50,000 of the Fund's net assets; 0.65% for net assets between
$50,000 and $200,000; and 0.60% in excess of $200,000;
For the Large Cap Value CORE II Fund, 0.75% on an annual basis for the
first $50,000 of the Fund's net assets; 0.65% for net assets between
$50,000 and $200,000; and 0.60% in excess of $200,000;
For the Large/Mid Cap Value Fund, 0.95% on an annual basis for the
first $25,000 of the Fund's net assets; 0.85% for net assets between
$25,000 and $50,000; 0.75% for net assets between $50,000 and $100,000; and
0.65% for net assets in excess of $100,000;
For the Money Market Funds, 0.25% on an annual basis of the Fund's net
assets;
For the Large/Mid Cap Value II Fund, 0.95% on an annual basis for the
first $25,000 of the Fund's net assets; 0.85% for net assets between
$25,000 and $50,000; 0.75% for net assets between $50,000 and $100,000; and
0.65% for net assets in excess of $100,000;
For the Small/Mid Cap Growth Fund, 0.75% on an annual basis of the
first $250,000 of the Fund's net assets; 0.70% for net assets between
$250,000 and $500,000; and 0.65% for net assets in excess of $500,000;
For the Bond Index Fund, 0.15% on an annual basis of the first
$100,000 of the Fund's net assets; 0.13% for net assets between $100,000
and $250,000; and 0.11% for net assets in excess of $250,000;
For the Large Cap Aggressive Growth Fund, 1.00% on an annual basis for
the first $10,000 of the Fund's net assets; 0.875% for net assets between
$10,000 and $20,000; 0.75% for net assets in excess of $20,000;
For the Small/Mid Cap CORE Fund, 0.80% on an annual basis of the first
$50,000 of the Fund's net assets; and 0.70% for net assets in excess of
$50,000;
For the Small Cap Value Fund, 0.95% on an annual basis for the first
$100,000 of the Fund's net assets; 0.90% for net assets between $100,000
and $250,000; 0.85% for net assets in excess of $250,000.
For the Real Estate Equity Fund, 1.10% on an annual basis of the first
$50,000 of the Fund's net assets, 1.00% for net assets between $50,000 and
$100,000; 0.90% for net assets between $100,000 and $200,000 and 0.80% for
net assets in excess of $200,000;
208
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
(UNAUDITED)
June 30, 2001
--------------------------------------------------------------------------------
(000's Omitted)
NOTE C--INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH
AFFILIATES--CONTINUED
For the Growth & Income Fund, 0.71% on an annual basis of the first
$150,000 of the Fund's net assets; 0.69% for net assets between $150,000
and $300,000; and 0.67% for net assets in excess of $300,000;
For the Managed Fund, 0.74% on an annual basis of the first $500,000
of the Fund's net assets; 0.68% for net assets between $500,000 and
$1,000,000; and 0.65% for net assets in excess of $1,000,000;
For the Short-Term Bond Fund, 0.30% on an annual basis of the Fund's
net assets;
For the Small Cap Equity Fund, 0.90% on an annual basis of the first
$150,000 of the Fund's net assets; 0.75% for net assets between $150,000
and $300,000; 0.65% for net assets between $300,000 and $500,000, and 0.60%
for net assets in excess of $500,000;
For the International Opportunities Fund, 1.00% on an annual basis of
the first $20,000 of the Fund's net assets; 0.85% for net assets between
$20,000 and $50,000; and 0.75% for net assets in excess of $50,000;
For the Equity Index Fund, 0.15% on an annual basis of the first
$75,000 of the Fund's net assets; 0.14% for net assets between $75,000 and
$125,000; and 0.13% for the net assets in excess of $125,000;
For the High Yield Bond Fund, 0.65% on an annual basis of the first
$100,000 of the Fund's net assets; 0.60% for net assets between $100,000
and $200,000; and 0.50% for net assets in excess of $200,000;
For the Global Bond Fund, 0.85% on an annual basis of the first
$150,000 of the Fund's net assets; 0.80% for net assets between $150,000
and $300,000; 0.75% for net assets between $300,000 and 500,000; and 0.70%
for the net assets in excess of $500,000.
In the event that normal operating expenses of each Fund, exclusive of
investment advisory fees, taxes, interest, brokerage commissions and
extraordinary expenses, shall exceed 0.10% of each Fund's daily net asset value,
John Hancock and JHVLICO will reimburse each Fund for such excess. Accordingly,
for the period ended June 30, 2001, the reimbursements paid from John Hancock
and JHVLICO were $249 to Large Cap Growth, $50 to Fundamental Growth, $28 to
Aggressive Balanced, $84 to Active Bond, $23 to Active Bond II, $286 to Emerging
Markets Equity, $15 to International Equity Index, $42 to International Equity,
$24 to Global Balanced, $24 to Mid Cap Blend, $21 to Large Cap Value CORE, $34
to Large Cap Value CORE II, $14 Large/Mid Cap Value, $31 to Small/Mid Cap CORE,
$11 to Small Cap Value, $149 to Growth & Income, $3 to Small Cap Equity, $57 to
International Opportunities, $14 to High Yield Bond and $9 to Global Bond Funds.
During the year ended December 31, 2000, John Hancock voluntarily
contributed approximately $284 to the Money Market Fund. John Hancock received
no shares of beneficial interest or other consideration in exchange for the
contribution, which increased the Funds' net asset values.
John Hancock has entered into Sub-Advisory Agreements with Independence
Investment LLC, formerly Independence Investment Associates, Inc., with respect
to the Large Cap Growth, Aggressive Balanced, Mid Cap Blend, Real Estate Equity,
Growth & Income, Managed and Short-Term Bond Funds; with Adviser, with respect
to the Active Bond, Active Bond II and Small Cap Growth Funds; with Independence
International Associates, Inc., with respect to the International Equity Index
Fund, each of whom is an affiliate of John Hancock, and, under the supervision
of John Hancock, is responsible for the day-to-day investment management of each
of the Funds. John Hancock has also entered into the Sub-Advisory Agreements
with the following Sub-Advisers, each of whom under the supervision of John
Hancock, is responsible for the day-to-day investment management of each of the
Funds:
209
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
(UNAUDITED)
June 30, 2001
--------------------------------------------------------------------------------
(000's Omitted)
NOTE C--INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH
AFFILIATES--CONTINUED
Fund Sub-Advisers
---- ------------
Fundamental Growth Putnam Investment Management, LLC.
Emerging Markets Equity Morgan Stanley Investment Management, Inc.
International Equity Goldman Sachs Asset Management
Health Sciences Putnam Investment Management, LLC
Global Balanced Capital Guardian Trust Company
Mid Cap Growth Janus Capital Corporation
Large Cap Value T. Rowe Price Associates, Inc.
Large Cap Value CORE Goldman Sachs Asset Management
Large Cap Value CORE II Goldman Sachs Asset Management
Large/Mid Cap Value Wellington Management Company, LLP
Money Market Wellington Management Company, LLP
Large/Mid Cap Value II Wellington Management Company, LLP
Small/Mid Cap Growth Wellington Management Company, LLP
Bond Index Mellon Bond Associates, LLP
Large Cap Aggressive Growth Alliance Capital Management, LLP
Small/Mid Cap CORE Goldman Sachs Asset Management
Small Cap Value T. Rowe Price Associates, Inc.
Real Estate Equity Morgan Stanley Investment Management, Inc.
Growth & Income Putnam Investment Management, LLC
Managed Capital Guardian Trust Company
Small Cap Equity Capital Guardian Trust Company
International Opportunities T. Rowe Price International, Inc.
Equity Index State Street Global Bank & Trust N.A.
High Yield Bond Wellington Management Company, LLP
Global Bond Capital Guardian Trust Company
Signator Investors, Inc., a wholly owned subsidiary of John Hancock is the
principal underwriter and transfer agent of the Trust. Certain officers and
trustees of the Trust are officers and directors of JHVLICO, JHVLAU, JHVLAV,
JHVLAS, JHVAAI, JHVLAUV, JHVAAV, JHVAAU, JHVAAH, JHVAAJF, PPM-1, and PPM-2, and
some are also officers of John Hancock. Fees for independent trustees are paid
by the Trust.
NOTE D--INVESTMENT TRANSACTIONS
Purchases and proceeds from sales and maturities of investments, excluding
short-term securities and obligations of the U.S. government, for each Fund for
the period ended June 30, 2001 were as follows:
Fund Purchases Sales and Maturities
---- --------- --------------------
Large Cap Growth $348,967 $470,780
Fundamental Growth 26,189 20,227
Aggressive Balanced 18,881 18,201
210
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
(UNAUDITED)
June 30, 2001
--------------------------------------------------------------------------------
(000's Omitted)
NOTE D--INVESTMENT TRANSACTIONS--CONTINUED
Fund Purchases Sales and Maturities
---- --------- --------------------
Active Bond $1,032,689 $1,031,185
Active Bond II 10,764 9,694
Emerging Markets Equity 19,299 20,006
International Equity Index 1,523 13,009
International Equity 11,489 3,490
Small Cap Growth 92,144 106,028
Health Sciences 21,829 1,103
Global Balanced 5,863 5,235
Mid Cap Growth 205,948 179,358
Mid Cap Blend 18,693 16,729
Large Cap Value 31,678 14,597
Large Cap Value CORE 32,971 7,446
Large Cap Value CORE II 6,934 6,108
Large/Mid Cap Value 28,813 8,658
Large/Mid Cap Value II 175,136 174,373
Small/Mid Cap Growth 86,602 90,331
Bond Index 56,128 37,584
Large Cap Aggressive Growth 27,076 14,269
Small/Mid Cap CORE 13,939 7,798
Small Cap Value 49,686 29,419
Real Estate Equity 16,297 19,157
Growth & Income 1,301,449 1,497,180
Managed 2,547,128 2,660,323
Short-Term Bond 76,006 43,513
Small Cap Equity 19,961 14,766
International Opportunities 8,697 22,541
Equity Index 108,060 56,800
High Yield Bond 17,368 4,789
Global Bond 13,024 17,850
The identified cost of investments owned by the Funds (including earned
discount on corporate short-term notes, and commercial paper) and their
respective gross unrealized appreciation and depreciation at June 30, 2001, were
as follows:
Net Unrealized
Identified Unrealized Unrealized Appreciation
Fund Cost Appreciation Depreciation (Depreciation)
---- ---- ------------ ------------ --------------
Large Cap Growth $879,877 $91,678 $(98,282) $(6,604)
Fundamental Growth 43,668 2,716 (6,770) (4,054)
Aggressive Balanced 19,821 1,320 (958) 362
Active Bond 751,001 12,448 (5,054) 7,394
Active Bond II 6,036 102 (28) 74
211
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
(UNAUDITED)
June 30, 2001
--------------------------------------------------------------------------------
(000's) Omitted)
NOTE D--INVESTMENT TRANSACTIONS--Continued
Net Unrealized
Identified Unrealized Unrealized Appreciation
Fund Cost Appreciation Depreciation (Depreciation)
---- ---- ------------ ------------ ------------
Emerging Markets $31,458 $1,384 $(6,384) $(5,000)
Equity
International Equity 172,212 16,111 (34,872) (18,761)
Index
International Equity 22,763 566 (3,325) (2,759)
Small Cap Growth 193,543 29,252 (27,669) 1,583
Health Sciences 20,732 1,296 (933) 363
Global Balanced 28,446 1,336 (3,201) (1,865)
Mid Cap Growth 335,271 24,877 (66,733) (41,486)
Mid Cap Blend 20,788 2,453 (738) 1,715
Large Cap Value 198,377 27,975 (10,558) 17,417
Large Cap Value CORE 41,072 2,193 (1,597) 596
Large Cap Value CORE II 6,427 431 (294) 137
Large/Mid Cap Value 34,451 1,408 (1,108) 300
Large/Mid Cap Value II 121,079 6,789 (7,704) (915)
Small/Mid Cap Growth 173,354 26,190 (19,901) 6,289
Bond Index 78,055 962 (472) 490
Large Cap Aggressive
Growth 36,458 1,585 (3,283) (1,698)
Small/Mid Cap CORE 26,120 3,914 (2,943) 971
Small Cap Value 48,906 6,936 (1,317) 5,619
Real Estate Equity 131,899 26,215 (1,779) 24,436
Growth & Income 2,539,202 445,108 (223,391) 221,717
Managed 2,488,798 307,678 (105,167) 202,511
Short-Term Bond 107,177 1,431 (109) 1,322
Small Cap Equity 81,967 9,992 (16,593) (6,601)
International
Opportunities 102,682 3,267 (23,036) (19,769)
Equity Index 556,479 42,341 (78,542) (36,201)
High Yield Bond 41,135 1,073 (6,024) (4,951)
Global Bond 57,066 513 (1,841) (1,328)
NOTE E--COMBINATION
On December 22, 2000, the shareholders of John Hancock International
Opportunities II Fund ("International Opportunities II") approved the
combination between International Opportunities II and International
Opportunities, Funds, providing for the transfer of substantially all of the
assets and liabilities of the International Opportunities II Fund to the
International Opportunities Fund in exchange solely for the trust shares of the
International Opportunities Fund. The acquisition was accounted for as a
tax-free exchange of 1,947 trust shares of the International Opportunities Fund
for the net assets of International Opportunities II Fund, which amounted to
$22,528, including $2,878 of unrealized depreciation, after the close of
business on December 29, 2000. The net assets of the International Opportunities
Fund prior to the combination on December 29, 2000, were $94,169, and the
aggregate net assets of the International Opportunities Fund after the
combination amounted to $116,697.
212
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
(UNAUDITED)
June 30, 2001
--------------------------------------------------------------------------------
(000's Omitted)
NOTE F--CHANGE IN ACCOUNTING PRINCIPLE
Effective January 1, 2001, the Funds adopted the provisions of the AICPA
Audit and Accounting Guide for Investment Companies, as revised, and began
amortizing premiums on debt securities. Prior to this date, the Funds did not
amortize premiums on debt securities. The cumulative effect of this accounting
change had no impact on the total net assets of the Funds, but resulted in a
following reduction in the cost of the investments and a corresponding increase
(decrease) in unrealized appreciation (depreciation) on investments, based on
securities held as of December 31, 2000:
Reduction in the Cost Increase in Net
Fund of Investments Unrealized Appreciation
---- -------------- -----------------------
Aggressive Balanced $4 $4
Active Bond 3,461 3,461
Active Bond II 1 1
Global Balanced 35 35
Bond Index 678 678
Managed 5,533 5,533
Short-Term Bond 314 314
High Yield Bond 41 41
Global Bond 156 156
The effect of this change in the period ended June 30, 2001 was as follows:
Increase In
Decrease in Net Net Unrealized Increase in
Fund Investment Income Appreciation/(Depreciation) Net Realized Losses
---- ----------------- --------------------------- -------------------
Aggressive Balanced $4 $7 $(3)
Active Bond 853 2,309 (1,456)
Active Bond II 4 7 (3)
Global Balanced 38 63 (25)
Bond Index 125 553 (428)
Managed 1,370 7,558 (6,188)
Short-Term Bond 143 192 (49)
High Yield Bond 9 18 (9)
Global Bond 206 215 (9)
213
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
(UNAUDITED)
June 30, 2001
--------------------------------------------------------------------------------
(000's Omitted)
NOTE F--CHANGE IN ACCOUNTING PRINCIPLE--CONTINUED
The effect of this change on the per share operating performance and on the
annualized ratio of net investment income to average net assets in the period
ended June 30, 2001 was as follows:
Increase (Decrease)
Decrease in in Net Realized and Decrease in Net
Net Investment Income Unrealized Gains Investment Income
Fund Per Share (Losses) Per Share to Average Net Assets
---- --------- ------------------- ---------------------
Aggressive Balanced - - 0.04%
Active Bond $0.01 $0.01 0.20
Active Bond II 0.01 0.01 0.15
Global Balanced 0.01 0.01 0.27
Bond Index 0.02 0.02 0.35
Managed 0.01 0.01 0.10
Short-Term Bond 0.01 0.01 0.29
High Yield Bond - - 0.06
Global Bond 0.03 0.03 0.64
The Statement of Changes in Net Assets and the Financial Highlights for
prior periods have not been restated to reflect this change in presentation.
OTHER MATTERS
Section 30 and Rule 30d-1(b) under the Investment Company Act of 1940, as
amended, requires registered management investment companies to furnish
information relating to any matter submitted during the reporting period to a
vote of Shareholders of the Trust. John Hancock Variable Series Trust I
solicited a vote at special meeting of Contract owners/ Policyholders held on
April 6, 2001 on the following matters:
FOR THE ACTIVE BOND II FUND (FORMERLY, CORE BOND FUND): For Against Abstain
--- ------- -------
To approve a new Sub-Investment Management Agreement among the Trust, John 92% 0% 8%
Hancock, and John Hancock Advisers, Inc.
To approve an amendment to the current Investment Management Agreement between 52% 40% 8%
the Trust and John Hancock, reflecting an increase in this Fund's investment
advisory fee.
FOR THE LARGE CAP VALUE FUND:
To approve an amendment to the current Sub-Investment Management Agreement 88% 4% 8%
among the Trust, John Hancock, and T. Rowe Price Associates, Inc.,
reflecting a decrease in this Fund's sub-investment advisory fee.
To approve an amendment to the current Investment Management Agreement between 68% 23% 9%
the Trust and John Hancock, reflecting an increase in this Fund's investment
advisory fee.
214
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
(UNAUDITED)
June 30, 2001
--------------------------------------------------------------------------------
(000's Omitted)
FOR THE LARGE CAP VALUE CORE II FUND (FORMERLY, AMERICAN LEADERS For Against Abstain
LARGE CAP VALUE FUND): --- ------- -------
To approve a new Sub-Investment Management Agreement among the Trust, John 100% 0% 0%
Hancock, and Goldman Sachs Asset Management, a unit of the Investment
Management Division of Goldman, Sachs & Co.
To approve an amendment to the current Investment Management Agreement between 80% 19% 1%
the Trust and John Hancock, reflecting an increase in this Fund's investment
advisory fee.
FOR THE MONEY MARKET FUND:
To approve a new Sub-Investment Management Agreement among the Trust, John 81% 9% 10%
Hancock, and Wellington Management Company, LLP.
FOR THE LARGE/MID CAP VALUE II FUND (FORMERLY, MID CAP VALUE FUND):
To approve a new Sub-Investment Management Agreement among the Trust, John 83% 7% 10%
Hancock, and Wellington Management Company, LLP.
To approve an amendment to the current Investment management Agreement between 69% 21% 10%
the Trust and John Hancock, reflecting an increase in this Fund's investment
advisory fee.
FOR THE SMALL CAP VALUE FUND (FORMERLY, SMALL/MID CAP VALUE FUND):
To approve a new Sub-Investment Management Agreement among the Trust, John 87% 4% 9%
Hancock, and T. Rowe Price Associates, Inc.
To approve an amendment to the current Investment Management Agreement between 75% 17% 8%
the Trust and John Hancock, reflecting an increase in this Fund's investment
advisory fee.
215
OFFICERS AND TRUSTEES
Michele G. Van Leer, Chairman
Kathleen F. Driscoll, President and Vice Chairman
Karen Q. Visconti, Secretary
Arnold Bergman, Assistant Secretary
Raymond F. Skiba, Treasurer
Jude A. Curtis, Compliance Officer
Maryellen Carney, Assistant Compliance Officer
Patrick F. Smith, Controller
Paula M. Pashko, Assistant Controller
Elizabeth G. Cook
Reverend Diane C. Kessler
Hassel H. McClellan
Robert F. Verdonck
INVESTMENT ADVISER
John Hancock Life Insurance Company
John Hancock Place
P.O. Box 111
Boston, MA 02117
INDEPENDENT AUDITORS
Ernst & Young LLP
200 Clarendon Street
Boston, MA 02116
SUB-INVESTMENT ADVISERS
Independence Investment LLC
53 State Street
Boston, MA 02109
Alliance Capital Management L.P.
1345 Avenue of the Americas
New York, NY 10105
The Boston Company Asset Management, LLC
One Boston Place
Boston, MA 02108
Capital Guardian Trust Company
333 South Hope Street
Los Angeles, CA 90071
Goldman Sachs Asset Management
32 Old Slip
New York, NY 10005
Janus
100 Fillmore Street
Denver, CO 80206-4928
Mellon Bond Associates, LLP
One Mellon Bank Center, Suite 5400
Pittsburgh, PA 15258-0001
John Hancock Advisers, Inc.
101 Huntington Avenue
Boston, MA 02199
Morgan Stanley Asset Management Inc.
1221 Avenue of the Americas
New York, NY 10020
Putnam Investments
One Post Office Square
Boston, MA 02109
SSgA Funds Management, Inc.
Two International Place
Boston, MA 02110
T. Rowe Price Associates, Inc.
100 East Pratt Street
Baltimore, MD 21202
T. Rowe Price International, Inc.
100 East Pratt Street
Baltimore, MD 21202
Wellington Management Company, LLP
75 State Street
Boston, MA 02109
[LOGO OF JOHN HANCOCK]
The Variable Series Trust consists of funds used as investment options for
various John Hancock variable life and variable annuity contracts. This report
must be accompanied by the required prospectus and the most current quarterly
performance report for the contract offered. Investors are not able to invest
directly in the Variable Series Trust.
Not all of the funds described in this report are available on every product.
Please refer to the prospectus for additional information about the investment
options on your variable product.
Insurance Products are Issued by: John Hancock Life Insurance Company John
Hancock Variable Life Insurance Company* (*not licensed in New York), Boston, MA
02117 Securities Products are Distributed by: John Hancock Funds, Inc., Member
NASD Signator Investors, Inc., Member NASD, SIPC
S8128 7/01 [LOGO OF IMSA]
ATTACHMENT 4.
JOHN HANCOCK V.S.T. LARGE CAP VALUE CORE FUND
NOTES TO PRO FORMA COMBINED FINANCIAL STATEMENTS
JUNE 30, 2001
Pro forma information is intended to provide the shareholders of the John
Hancock V.S.T. Large Cap Value CORE Fund and the John Hancock V.S.T. Large Cap
Value CORE II Fund with information about the impact of the proposed merger by
indicating how the merger might have affected information had the merger been
consummated as of June 30, 2000.
The pro forma combined statements of assets and liabilities and results of
operations as of June 30, 2001 have been prepared to reflect the merger of John
Hancock V.S.T. Large Cap Value CORE Fund and John Hancock V.S.T. Large Cap Value
CORE II Fund after giving effect to pro forma adjustments described in the notes
below.
(a) Acquisition by John Hancock V.S.T. Large Cap Value CORE Fund of all assets
of John Hancock V.S.T. Large Cap Value CORE II Fund and issuance of John
Hancock V.S.T. Large Cap Value CORE Fund shares in exchange for all of the
outstanding shares of John Hancock V.S.T. Large Cap Value CORE II Fund.
(b) The investment advisory fee was adjusted to reflect the application of the
fee structure which will be in effect for John Hancock V.S.T. Large Cap
Value CORE Fund:
0.75% for the first $50,000,000 of net assets;
0.65% for net assets between $50,000,000 and $200,000,000;
0.60% for net assets in excess of $200,000,000.
(c) The actual expenses incurred by the John Hancock V.S.T. Large Cap Value
CORE Fund and the John Hancock V.S.T. Large Cap Value CORE II Fund were
reduced to reflect the estimated savings arising from the merger.
(d) Represents the Adviser's voluntary agreement to limit the funds' other
expenses to an annual rate of 0.10% of the funds' average daily net assets.
John Hancock V.S.T. Large Cap Value CORE Fund Exhibit C
Pro-forma combined statement of assets and liabilities
June 30, 2001
(000's omitted)
John Hancock John Hancock
V.S.T. Large Cap V.S.T. Large Cap
Value CORE Value CORE II Pro-Forma
Fund Fund Adjustments Combined
--------------- ---------------- ----------- ----------
ASSETS
Long term investments at cost $ 41,072 $ 6,427 $ -- $ 47,499
Net unrealized appreciation (depreciation) of
investments 596 137 -- 733
Short-term investments at value 3,200 -- -- 3,200
-------- -------- -------- --------
Total investments 44,868 6,564 -- 51,432
Cash 264 29 -- 293
Receivable for:
Dividends 34 6 -- 40
Futures contracts variation margin 7 -- -- 7
-------- -------- -------- --------
Total Assets 45,173 6,599 -- 51,772
-------- -------- -------- --------
LIABILITIES
Payables for:
Investments purchased 1,177 -- -- 1,177
Other liabilities 9 3 -- 12
-------- -------- -------- --------
Total Liabilities 1,186 3 -- 1,189
-------- -------- -------- --------
Net Assets 43,987 6,596 -- 50,583
======== ======== ======== ========
Net assets:
Capital paid-in 43,519 6,249 -- 49,768
Accumulated net realized gain (loss) on
investments, futures and foreign currency
transactions (131) 210 -- 79
Net unrealized appreciation (depreciation)
of investments, futures and translation
of assets and liabilities in foreign
currencies 599 137 -- 736
-------- -------- -------- --------
43,987 6,596 -- 50,583
======== ======== ======== ========
Net assets:
V.S.T. Large Cap Value CORE Fund 43,987 -- 6,596 (a) 50,583
V.S.T. Large Cap Value CORE II Fund -- 6,596 (6,596) (a) --
-------- -------- -------- --------
43,987 6,596 -- 50,583
======== ======== ======== ========
Shares outstanding:
V.S.T. Large Cap Value CORE Fund 4,268 -- 638 (a) 4,906
V.S.T. Large Cap Value CORE II Fund -- 621 (621) (a) --
-------- -------- -------- --------
4,268 621 17 (a) 4,906
======== ======== ======== ========
Net asset value per share:
V.S.T. Large Cap Value CORE Fund $ 10.31 -- -- $ 10.31
V.S.T. Large Cap Value CORE II Fund -- $ 10.62 $ (10.62) (a) --
======== ======== ======== ========
See Notes to Pro-forma Combined Financial Statements
John Hancock V.S.T. Large Cap Value CORE Fund Exhibit C
Pro-forma Combined Statement of Operations
For the year ended June 30, 2001
(000's omitted)
John Hancock John Hancock
V.S.T. Large Cap V.S.T. Large Cap
Value CORE Value CORE II
Fund Fund
12 months ended 12 months ended Pro-Forma
June 30, 2001 June 30, 2001 Adjustments Combined
--------------- ---------------- ----------- ---------
INVESTMENT INCOME
Interest $ 53 $ 10 $ -- $ 63
Dividends 312 99 -- 411
---------- ---------- ---------- ----------
Total investment income 365 109 -- 474
---------- ---------- ---------- ----------
EXPENSES
Investment management fee 146 44 1 (b) 191
Auditing fees 2 1 (1) (c) 2
Custodian fees 45 28 -- 73
Legal fees 1 -- -- (c) 1
Printing & mailing fees (9) 10 -- (c) 1
Other fees 1 -- -- 1
---------- ---------- ---------- ----------
Total expenses 186 83 (0) 269
Less expenses reimbursed (20) (34) -- (d) (54)
---------- ---------- ---------- ----------
Net expenses 166 49 (0) 215
---------- ---------- ---------- ----------
Net investment income (loss) 199 60 (0) 259
---------- ---------- ---------- ----------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investments 64 236 -- 300
Financial futures contracts (102) (8) -- (110)
Change in net unrealized appreciation
(depreciation) on:
Investments 985 137 -- 1,122
Futures (5) -- -- (5)
Foreign currency translation 15 -- -- 15
---------- ---------- ---------- ----------
Net realized and unrealized gain (loss) 957 365 -- 1,322
---------- ---------- ---------- ----------
Net increase (decrease) in net assets
resulting from operations $ 1,156 $ 425 $ (0) $ 1,581
========== ========== --------- =========
See Note to Pro-forma Combined Financial Statements
Schedule of Investments Exhibit C
June 30, 2001
The Schedule of Investments is a complete list of all the securities owned by
the V.S.T. Large Cap Value CORE Fund and the V.S.T. Large Cap Value CORE II
Fund, combined on June 30, 2001.
----------------------------------------------------------------------------------------------
John Hancock V.S.T. Large Cap John Hancock V.S.T. Large Cap
Value CORE Fund Value CORE II Fund Combined
----------------------------------------------------------------------------------------------
NUMBER OF MARKET VALUE NUMBER OF MARKET VALUE NUMBER OF MARKET VALUE
INTEREST SHARES OR (000'S INTEREST SHARES OR (000'S SHARES OR (000'S
RATE WARRANTS OMITTED) RATE WARRANTS OMITTED) WARRANTS OMITTED)
----------------------------------------------------------------------------------------------
ISSUER, DESCRIPTION
-------------------
COMMON STOCK
Aerospace & Defense - (2.42%)
Boeing Co. 2,100 $ 117 410 $ 23 2,520 $ 140
General Dynamics Corp. 4,130 321 730 57 4,860 378
Honeywell International, Inc. 4,450 156 690 24 5,140 180
Lockheed Martin Corp. 7,370 273 1,310 49 8,680 322
Raytheon Co. COM NEW 790 21 160 4 950 25
United Technologies Corp. 2,040 150 370 27 2,410 177
------------ ------------ -----------
1,038 184 1,222
------------ ------------ -----------
Auto & Truck Parts - (0.78%)
Goodyear Tire & Rubber Co. 870 24 180 5 1,050 29
Johnson Controls, Inc. 4,260 309 780 57 5,040 366
Visteon Corp. 100 2 100 2
------------ ------------ -----------
335 62 397
------------ ------------ -----------
Automobile - (1.38%)
Ford Motor Co. 4,280 105 850 21 5,130 126
General Motors Corp. 7,110 458 1,230 79 8,340 537
General Motors Corp. - Cl. H 1,400 28 280 6 1,680 34
------------ ------------ -----------
591 106 697
------------ ------------ -----------
Bank - (10.85%)
Bank of America Corp. 13,780 827 2,500 150 16,280 977
Bank of New York Co., Inc. 7,040 338 1,240 60 8,280 398
Bank One Corp. 4,110 147 770 28 4,880 175
BB&T Corporation 3,150 116 570 21 3,720 137
Comerica, Inc. 2,200 127 430 25 2,630 152
Fifth Third Bancorp 1,980 119 380 23 2,360 142
FleetBoston Financial Corp. 6,270 247 1,090 43 7,360 290
Hudson City Bancorp, Inc. 3,120 72 610 14 3,730 86
Investors Financial Services Corp. 1,740 117 90 6 1,830 123
JP Morgan Chase & Co. 6,020 268 970 43 6,990 311
M & T Bank Corp. 3,480 263 600 45 4,080 308
Mellon Financial Corp. 3,610 166 670 31 4,280 197
Schedule of Investments Exhibit C
June 30, 2001
The Schedule of Investments is a complete list of all the securities owned by
the V.S.T. Large Cap Value CORE Fund and the V.S.T. Large Cap Value CORE II
Fund, combined on June 30, 2001.
----------------------------------------------------------------------------------------------
John Hancock V.S.T. Large Cap John Hancock V.S.T. Large Cap
Value CORE Fund Value CORE II Fund Combined
----------------------------------------------------------------------------------------------
NUMBER OF MARKET VALUE NUMBER OF MARKET VALUE NUMBER OF MARKET VALUE
INTEREST SHARES OR (000'S INTEREST SHARES OR (000'S SHARES OR (000'S
RATE WARRANTS OMITTED) RATE WARRANTS OMITTED) WARRANTS OMITTED)
----------------------------------------------------------------------------------------------
ISSUER, DESCRIPTION
-------------------
National City Corp. 3,180 $ 98 630 $ 19 3,810 $ 117
Northern Trust Corp. 2,110 132 410 26 2,520 158
PNC Bank Corp. 4,070 268 540 36 4,610 304
Popular, Inc. 610 20 130 4 740 24
Regions Financial Corp. 1,140 36 230 7 1,370 43
SouthTrust Corp. 530 14 110 3 640 17
State Street Corp. 100 5 100 5
Suntrust Banks, Inc. 6,300 408 1,090 70 7,390 478
TCF Financial Corp. 700 32 140 6 840 38
US Bancorp 3,260 74 640 15 3,900 89
Washington Mutual, Inc. 11,420 429 2,060 77 13,480 506
Wells Fargo & Co. 7,070 328 1,250 58 8,320 386
Zions Bancorp 440 26 90 5 530 31
------------- ------------ -----------
4,677 815 5,492
------------- ------------ -----------
Brokerage & Investment
Management - (0.42%)
Morgan Stanley, Dean Witter,
Discover & Co. 2,800 180 530 34 3,330 214
------------- ------------ -----------
Building Materials - (0.08%)
Monsanto Co. COM 910 34 190 7 1,100 41
------------- ------------ -----------
Business Services - (0.07%)
Express Scripts, Inc. - Cl. A * 540 30 100 5 640 35
------------- ------------ -----------
Chemical - (1.54%)
Ashland, Inc. 5,090 204 420 17 5,510 221
Cabot Corp. 790 29 160 6 950 35
Dow Chemical Co. 4,540 151 860 28 5,400 179
Engelhard Corp. 2,380 61 460 12 2,840 73
Sigma-Aldrich Corp. 6,210 240 810 31 7,020 271
------------- ------------ -----------
685 94 779
------------- ------------ -----------
Coal - (0.01%)
Arch Coal, Inc. 100 3 100 3
------------- -----------
Schedule of Investments Exhibit C
June 30, 2001
The Schedule of Investments is a complete list of all the securities owned by
the V.S.T. Large Cap Value CORE Fund and the V.S.T. Large Cap Value CORE II
Fund, combined on June 30, 2001.
----------------------------------------------------------------------------------------------
John Hancock V.S.T. Large Cap John Hancock V.S.T. Large Cap
Value CORE Fund Value CORE II Fund Combined
----------------------------------------------------------------------------------------------
NUMBER OF MARKET VALUE NUMBER OF MARKET VALUE NUMBER OF MARKET VALUE
INTEREST SHARES OR (000'S INTEREST SHARES OR (000'S SHARES OR (000'S
RATE WARRANTS OMITTED) RATE WARRANTS OMITTED) WARRANTS OMITTED)
----------------------------------------------------------------------------------------------
ISSUER, DESCRIPTION
-------------------
Commercial Services - (1.07%)
Apollo Group, Inc. - Cl. A 2,090 $ 89 400 $ 17 2,490 $ 106
Avery Dennison Corp. 610 31 130 7 740 38
Cendant Corp. * 440 8 90 2 530 10
Ecolab, Inc. 2,630 108 520 21 3,150 129
Omnicom Group, Inc. 2,500 215 510 44 3,010 259
------------ ------------ -----------
451 91 542
------------ ------------ -----------
Computer Equipment - (1.53%)
Dell Computer Corp. 100 3 100 3
EMC Corp. 520 15 110 3 630 18
Hewlett-Packard Co. 2,300 66 430 12 2,730 78
International Business Machines Corp. 5,180 585 510 58 5,690 643
Tech Data Corp. * 700 23 140 5 840 28
Xerox Corp. 200 2 200 2
------------ ------------ -----------
694 78 772
------------ ------------ -----------
Computer Software & Services - (1.97%)
3Com Corp. * 610 3 130 1 740 4
Affiliated Computer Services,
Inc. - Cl. A* 3,460 249 640 46 4,100 295
At Home Corp. - Ser. A 610 1 130 740 1
EarthLink, Inc. 100 2 100 2
Electronic Data Systems Corp. 1,300 81 260 16 1,560 97
First Data Corp. 2,960 190 550 35 3,510 225
Intuit, Inc. * 350 14 70 3 420 17
Pixar, Inc. 1,400 57 1,400 57
Progressive Corp. 1,830 247 370 50 2,200 297
------------ ------------ -----------
844 151 995
------------ ------------ -----------
Consumer Miscellaneous - (0.51%)
Harley-Davidson, Inc. 2,510 118 130 6 2,640 124
Ingram Micro, Inc. - Cl. A* 3,860 56 770 11 4,630 67
Sherwin-Williams Co. 2,410 54 470 11 2,880 65
------------ ------------ -----------
228 28 256
------------ ------------ -----------
Schedule of Investments Exhibit C
June 30, 2001
The Schedule of Investments is a complete list of all the securities owned by
the V.S.T. Large Cap Value CORE Fund and the V.S.T. Large Cap Value CORE II
Fund, combined on June 30, 2001.
----------------------------------------------------------------------------------------------
John Hancock V.S.T. Large Cap John Hancock V.S.T. Large Cap
Value CORE Fund Value CORE II Fund Combined
----------------------------------------------------------------------------------------------
NUMBER OF MARKET VALUE NUMBER OF MARKET VALUE NUMBER OF MARKET VALUE
INTEREST SHARES OR (000'S INTEREST SHARES OR (000'S SHARES OR (000'S
RATE WARRANTS OMITTED) RATE WARRANTS OMITTED) WARRANTS OMITTED)
----------------------------------------------------------------------------------------------
ISSUER, DESCRIPTION
-------------------
Cosmetic & Personal Care - (3.34%)
Alberto-Culver Co. - Cl. B 1,580 $ 66 320 $ 13 1,900 $ 79
Avon Products, Inc. 3,190 148 370 17 3,560 165
Colgate-Palmolive Co. 5,310 313 910 54 6,220 367
Estee Lauder Cos., Inc. - Cl. A 1,310 57 270 12 1,580 69
Procter & Gamble Co. 13,310 849 1,700 109 15,010 958
Unilever NV - NY Shares 700 42 140 8 840 50
------------ ------------ -----------
1,475 213 1,688
------------ ------------ -----------
Diversified Operations - (1.12%)
Danaher Corp. 1,050 59 210 12 1,260 71
General Electric Co. 2,460 120 480 23 2,940 143
ITT Industries, Inc. 610 27 130 6 740 33
Tyco International, Ltd. 4,330 236 240 13 4,570 249
W.W. Grainger, Inc. 1,500 61 300 12 1,800 73
------------ ------------ -----------
503 66 569
------------ ------------ -----------
Electric Power - (2.85%)
Consolidated Edison, Inc. 270 11 50 2 320 13
Dominion Resources, Inc. 1,150 69 210 13 1,360 82
Emerson Electric Co. 960 58 200 12 1,160 70
Energy East Corp. 1,400 29 280 6 1,680 35
Entergy Corp. 3,430 132 590 23 4,020 155
Exelon Corp. 1,180 76 220 14 1,400 90
Firstenergy Corp. 440 14 90 3 530 17
Mirant Corp. * 3,550 122 140 5 3,690 127
PG & E Corp. 2,980 33 590 6 3,570 39
PPL Corp. 2,090 115 400 22 2,490 137
Reliant Energy, Inc. 6,410 207 1,110 36 7,520 243
TXU Corp. 1,310 63 270 13 1,580 76
UtiliCorp United, Inc. 10,180 311 1,480 45 11,660 356
------------ ------------ -----------
1,240 200 1,440
------------ ------------ -----------
Electronic Products & Services - (0.80%)
Agilent Technologies, Inc. 100 3 100 3
Avnet, Inc. 700 16 140 3 840 19
AVX Corp. 1,050 22 210 4 1,260 26
Schedule of Investments Exhibit C
June 30, 2001
The Schedule of Investments is a complete list of all the securities owned by
the V.S.T. Large Cap Value CORE Fund and the V.S.T. Large Cap Value CORE II
Fund, combined on June 30, 2001.
----------------------------------------------------------------------------------------------
John Hancock V.S.T. Large Cap John Hancock V.S.T. Large Cap
Value CORE Fund Value CORE II Fund Combined
----------------------------------------------------------------------------------------------
NUMBER OF MARKET VALUE NUMBER OF MARKET VALUE NUMBER OF MARKET VALUE
INTEREST SHARES OR (000'S INTEREST SHARES OR (000'S SHARES OR (000'S
RATE WARRANTS OMITTED) RATE WARRANTS OMITTED) WARRANTS OMITTED)
----------------------------------------------------------------------------------------------
ISSUER, DESCRIPTION
-------------------
Ball Corp. 1,940 $ 92 370 $ 18 2,310 $ 110
KLA-Tencor Corp. 700 41 700 41
Motorola, Inc. 300 5 300 5
PerkinElmer, Inc. 940 26 200 5 1,140 31
Sanmina Corp. * 3,390 79 300 7 3,690 86
Solectron Corp. * 3,800 70 750 14 4,550 84
------------ ------------ -----------
354 51 405
------------ ------------ -----------
Energy - Alternative Source - (0.73%)
Dynegy, Inc. - Cl.A 4,550 211 430 20 4,980 231
Massey Energy Co. 5,860 116 1,050 21 6,910 137
------------ ------------ -----------
327 41 368
------------ ------------ -----------
Financial Services - (3.59%)
American Express Co. 960 37 200 8 1,160 45
CNA Financial Corp. * 8,390 331 1,350 53 9,740 384
Federated Investments, Inc. - Cl. B 790 25 160 5 950 30
Heller Financial, Inc. 5,970 239 1,020 41 6,990 280
Internet Capital Group, Inc. * 350 1 70 420 1
Lehman Brothers Holdings, Inc. 5,530 430 870 68 6,400 498
Merrill Lynch & Co., Inc. 5,850 347 1,000 59 6,850 406
SEI Investments Company 1,920 91 250 12 2,170 103
Wesco Financial Corp. COM 200 69 200 69
------------ ------------ -----------
1,570 246 1,816
------------ ------------ -----------
Food, Beverage & Tobacco - (4.00%)
IBP, Inc. 260 7 50 1 310 8
Pepsi Bottling Group, Inc. 1,760 71 340 14 2,100 85
PepsiCo, Inc. 4,110 182 770 34 4,880 216
Philip Morris Cos., Inc. 10,980 557 1,610 82 12,590 639
Quaker Oats Co. 350 32 70 6 420 38
R.J. Reynolds Tobacco Holdings, Inc. * 3,150 172 570 31 3,720 203
Ralston-Ralston Purina Group 2,520 76 780 23 3,300 99
Sara Lee Corp. 6,820 129 1,250 24 8,070 153
Smithfield Foods, Inc. 3,260 131 590 24 3,850 155
Sysco Corp. 11,910 323 2,060 56 13,970 379
Tyson Foods, Inc. - Cl. A 960 9 200 2 1,160 11
UST, Inc. 1,160 33 240 7 1,400 40
------------ ------------ -----------
1,722 304 2,026
------------ ------------ -----------
Schedule of Investments Exhibit C
June 30, 2001
The Schedule of Investments is a complete list of all the securities owned by
the V.S.T. Large Cap Value CORE Fund and the V.S.T. Large Cap Value CORE II
Fund, combined on June 30, 2001.
------------------------------------------------------------------------------------------------
John Hancock V.S.T. Large Cap John Hancock V.S.T. Large Cap
Value CORE Fund Value CORE II Fund Combined
------------------------------------------------------------------------------------------------
NUMBER OF MARKET VALUE NUMBER OF MARKET VALUE NUMBER OF MARKET VALUE
INTEREST SHARES OR (000'S INTEREST SHARES OR (000'S SHARES OR (000'S
RATE WARRANTS OMITTED) RATE WARRANTS OMITTED) WARRANTS OMITTED)
------------------------------------------------------------------------------------------------
ISSUER, DESCRIPTION
-------------------
Health Care Products - (7.60%)
Abbott Laboratories 7,340 $ 353 1,300 $ 63 8,640 $ 416
American Home Products Corp. 7,670 448 1,020 60 8,690 508
Baxter International, Inc. 2,280 112 460 23 2,740 135
Bristol-Myers Squibb Co. 2,090 109 400 21 2,490 130
Cardinal Health, Inc. 5,510 380 890 61 6,400 441
Eli Lilly & Co. 1,900 141 1,900 141
Johnson & Johnson 13,200 660 2,480 124 15,680 784
McKesson HBOC, Inc. 10,920 405 1,190 44 12,110 449
Medtronic, Inc. 1,400 65 280 13 1,680 78
Merck & Co., Inc. 4,370 279 820 52 5,190 331
Patterson Dental Co. * 960 29 200 6 1,160 35
UnitedHealth Group, Inc. 5,480 338 960 59 6,440 397
------------ ------------ ----------
3,319 526 3,845
------------ ------------ ----------
Health Care Services - (0.33%)
AmeriSource Health Corp. - Cl. A* 1,100 61 230 13 1,330 74
Caremark Rx, Inc. 3,020 50 600 10 3,620 60
PacifiCare Health Systems, Inc. * 1,490 24 300 5 1,790 29
WebMD Corp. * 270 2 50 320 2
------------ ------------ ----------
137 28 165
------------ ------------ ----------
Housing - (0.26%)
Pulte Corp. 2,630 112 510 22 3,140 134
------------ ------------ ----------
Insurance - (4.86%)
Allstate Corp. 5,230 230 870 38 6,100 268
American General Corp. 2,280 106 460 21 2,740 127
American International Group, Inc. 10,960 942 1,420 122 12,380 1,064
Cigna Corp. 910 87 190 18 1,100 105
Everest Re Group, Ltd. 610 46 130 10 740 56
Hartford Financial Services Group, Inc. 790 54 160 11 950 65
Metlife, Inc. 9,610 298 1,700 53 11,310 351
Nationwide Financial Services - Cl. A 7,440 325 960 42 8,400 367
The MONY Group, Inc. 1,170 47 240 10 1,410 57
------------ ------------ ----------
2,135 325 2,460
------------ ------------ ----------
Schedule of Investments Exhibit C
June 30, 2001
The Schedule of Investments is a complete list of all the securities owned by
the V.S.T. Large Cap Value CORE Fund and the V.S.T. Large Cap Value CORE II
Fund, combined on June 30, 2001.
----------------------------------------------------------------------------------------------
John Hancock V.S.T. Large Cap John Hancock V.S.T. Large Cap
Value CORE Fund Value CORE II Fund Combined
----------------------------------------------------------------------------------------------
NUMBER OF MARKET VALUE NUMBER OF MARKET VALUE NUMBER OF MARKET VALUE
INTEREST SHARES OR (000'S INTEREST SHARES OR (000'S SHARES OR (000'S
RATE WARRANTS OMITTED) RATE WARRANTS OMITTED) WARRANTS OMITTED)
----------------------------------------------------------------------------------------------
ISSUER, DESCRIPTION
-------------------
Leisure & Recreation - (1.76%)
Blockbuster, Inc. - Cl. A 1,330 $ 24 270 $ 5 1,600 $ 29
Brunswick Corp. 1,460 35 300 7 1,760 42
International Game Technology 4,450 279 830 52 5,280 331
Loews Corp. 6,060 391 840 54 6,900 445
Sabre Group Holdings, Inc. * 690 35 140 7 830 42
------------ ------------ -----------
764 125 889
------------ ------------ -----------
Machinery - (0.10%)
Dover Corp. 100 4 100 4
Thermo Electron Corp. * 1,850 41 360 8 2,210 49
------------ ------------ -----------
45 8 53
------------ ------------ -----------
Media - Publishing - (0.43%)
McClatchy Newspapers, Inc. - Cl. A 750 29 150 6 900 35
New York Times Co. - Cl. A 700 29 140 6 840 35
Tribune Co. 3,150 127 570 23 3,720 150
------------ ------------ -----------
185 35 220
------------ ------------ -----------
Media - TV / Radio - (2.28%)
AOL Time Warner, Inc. * 1,910 101 330 17 2,240 118
BHC Communications, Inc. - Cl. A* 310 43 90 13 400 56
Charter Communications, Inc. - Cl. A* 2,250 52 210 5 2,460 57
Comcast Corp. - Cl. A 3,320 144 610 26 3,930 170
Fox Entertainment Group, Inc. - Cl. A* 1,400 39 280 8 1,680 47
The Walt Disney Co. 7,890 228 1,440 42 9,330 270
USA Networks, Inc. * 270 8 50 1 320 9
Viacom, Inc. - Cl. B* 7,030 364 1,220 63 8,250 427
------------ ------------ -----------
979 175 1,154
------------ ------------ -----------
Metals & Mining - (1.69%)
Alcan Aluminum, Ltd. 700 29 140 6 840 35
Alcoa, Inc. 2,640 104 520 20 3,160 124
Inco, Ltd. 2,550 44 500 9 3,050 53
Minnesota Mining & Manufacturing Co. 5,350 611 280 32 5,630 643
------------ ------------ -----------
788 67 855
------------ ------------ -----------
Schedule of Investments Exhibit C
June 30, 2001
The Schedule of Investments is a complete list of all the securities owned by
the V.S.T. Large Cap Value CORE Fund and the V.S.T. Large Cap Value CORE II
Fund, combined on June 30, 2001.
----------------------------------------------------------------------------------------------
John Hancock V.S.T. Large Cap John Hancock V.S.T. Large Cap
Value CORE Fund Value CORE II Fund Combined
----------------------------------------------------------------------------------------------
NUMBER OF MARKET VALUE NUMBER OF MARKET VALUE NUMBER OF MARKET VALUE
INTEREST SHARES OR (000'S INTEREST SHARES OR (000'S SHARES OR (000'S
RATE WARRANTS OMITTED) RATE WARRANTS OMITTED) WARRANTS OMITTED)
----------------------------------------------------------------------------------------------
ISSUER, DESCRIPTION
-------------------
Natural Gas Distribution - (0.38%)
Enron Corp. 440 $ 21 90 $ 4 530 $ 25
KeySpan Corp. 2,380 87 460 17 2,840 104
Nicor, Inc. 1,310 51 270 11 1,580 62
------------ ----------- -----------
159 32 191
------------ ----------- -----------
Oil - (0.40%)
ONEOK, Inc. 7,180 141 1,320 26 8,500 167
Tosco Corp. 610 27 130 6 740 33
------------ ----------- -----------
168 32 200
------------ ----------- -----------
Oil & Natural Gas Exploration &
Production - (9.48%)
Amerada Hess Corp. 1,490 120 300 24 1,790 144
Chevron Corp. 6,010 544 620 56 6,630 600
Conoco, Inc. - Cl. B 9,780 283 1,690 49 11,470 332
Exxon Mobil Corp. 26,370 2,303 3,830 334 30,200 2,637
Helmerich & Payne, Inc. 1,490 46 300 9 1,790 55
Kerr-McGee Corp. 1,050 69 210 14 1,260 83
Occidental Petroleum Corp. 6,380 170 1,160 31 7,540 201
Phillips Petroleum Co. 3,670 209 680 39 4,350 248
Sunoco, Inc. 890 33 160 6 1,050 39
Texaco, Inc. 3,450 230 550 37 4,000 267
Ultramar Diamond Shamrock Corp. 420 20 1,000 47 1,420 67
USX-Marathon Group 3,500 103 640 19 4,140 122
------------ ----------- -----------
4,130 665 4,795
------------ ----------- -----------
Oil - Equipment & Service - (0.04%)
BJ Services Co. * 540 15 100 3 640 18
------------ ----------- -----------
Paper & Forest Products - (0.33%)
Boise Cascade Corp. 100 4 100 4
Georgia-Pacific Corp. 200 7 200 7
International Paper Co. 700 25 140 5 840 30
Kimberly-Clark Corp. 1,420 79 290 16 1,710 95
Weyerhaeuser Co. 440 24 90 5 530 29
------------ ----------- -----------
139 26 165
------------ ----------- -----------
Schedule of Investments Exhibit C
June 30, 2001
The Schedule of Investments is a complete list of all the securities owned by
the V.S.T. Large Cap Value CORE Fund and the V.S.T. Large Cap Value CORE II
Fund, combined on June 30, 2001.
----------------------------------------------------------------------------------------------
John Hancock V.S.T. Large Cap John Hancock V.S.T. Large Cap
Value CORE Fund Value CORE II Fund Combined
----------------------------------------------------------------------------------------------
NUMBER OF MARKET VALUE NUMBER OF MARKET VALUE NUMBER OF MARKET VALUE
INTEREST SHARES OR (000'S INTEREST SHARES OR (000'S SHARES OR (000'S
RATE WARRANTS OMITTED) RATE WARRANTS OMITTED) WARRANTS OMITTED)
----------------------------------------------------------------------------------------------
ISSUER, DESCRIPTION
-------------------
Personal & Commercial Lending - (5.20%)
Citigroup, Inc. 36,670 $ 1,938 4,440 $ 234 41,110 $ 2,172
Countrywide Credit Industries, Inc. 8,430 387 1,060 49 9,490 436
MBNA Corp. 610 20 130 4 740 24
------------ ----------- -----------
2,345 287 2,632
------------ ----------- -----------
Pollution Control - (1.02%)
Republic Services, Inc. - Cl. A 2,460 49 480 9 2,940 58
Waste Management, Inc. 12,530 386 2,270 70 14,800 456
------------ ----------- -----------
435 79 514
------------ ----------- -----------
Real Estate Development - (0.33%)
Lennar Corp. 3,410 142 620 26 4,030 168
------------ ----------- -----------
Real Estate Investment Trust - (1.09%)
Archstone Communities Trust 960 25 200 5 1,160 30
Avalonbay Communities, Inc. 2,300 108 2,300 108
Equity Office Properties Trust 4,150 131 800 25 4,950 156
Equity Residential Properties Trust 3,240 183 530 30 3,770 213
Marriott International, Inc. - Cl. A 540 26 90 4 630 30
Simon Property Group, Inc. 440 13 90 3 530 16
------------ ----------- -----------
486 67 553
------------ ----------- -----------
Retail - Department Stores - (2.57%)
BJ's Wholesale Club, Inc. 6,850 365 6,850 365
CVS Corp. 5,450 210 940 36 6,390 246
Dillard's, Inc. - Cl. A 2,670 41 530 8 3,200 49
Federated Department Stores, Inc. * 520 22 110 5 630 27
Kohl's Corp. 960 60 200 13 1,160 73
Payless ShoeSource, Inc. * 2,560 166 190 12 2,750 178
Sears, Roebuck & Co. 2,550 108 500 21 3,050 129
Target Corp. 4,200 145 780 27 4,980 172
Wal-Mart Stores, Inc. 1,050 51 210 10 1,260 61
------------ ----------- -----------
1,168 132 1,300
------------ ----------- -----------
Schedule of Investments Exhibit C
June 30, 2001
The Schedule of Investments is a complete list of all the securities owned by
the V.S.T. Large Cap Value CORE Fund and the V.S.T. Large Cap Value CORE II
Fund, combined on June 30, 2001.
---------------------------------------------------------------------------------------------
John Hancock V.S.T. Large Cap John Hancock V.S.T. Large Cap
Value CORE Fund Value CORE II Fund Combined
---------------------------------------------------------------------------------------------
NUMBER OF MARKET VALUE NUMBER OF MARKET VALUE NUMBER OF MARKET VALUE
INTEREST SHARES OR (000'S INTEREST SHARES OR (000'S SHARES OR (000'S
RATE WARRANTS OMITTED) RATE WARRANTS OMITTED) WARRANTS OMITTED)
---------------------------------------------------------------------------------------------
ISSUER, DESCRIPTION
-------------------
Retail - Drug Stores - (0.41%)
Walgreen Co. 5,190 $ 177 900 $ 31 6,090 $ 208
------------ ------------ -----------
Retail - Food - (0.21%)
Brinker International, Inc. * 1,250 32 210 5 1,460 37
Darden Restaurants, Inc. 810 23 130 4 940 27
Safeway, Inc. * 690 33 140 7 830 40
------------ ------------ -----------
88 16 104
------------ ------------ -----------
Shoe & Apparel Manufacturing - (0.22%)
Liz Claiborne, Inc. 440 22 90 5 530 27
Nike, Inc. - Cl. B 440 18 90 4 530 22
Reebok International, Ltd. 1,580 51 320 10 1,900 61
------------ ------------ -----------
91 19 110
------------ ------------ -----------
Telecommunication Equipment - (0.75%)
Comverse Technology, Inc. 700 40 140 8 840 48
Covad Communications Group, Inc. * 80 20 100 --
L-3 Communications Holdings, Corp. * 1,050 80 210 16 1,260 96
Linear Technology Corp. 1,400 62 280 13 1,680 75
Lucent Technologies, Inc. 300 2 300 2
Micron Technology, Inc. 1,500 62 300 12 1,800 74
Nortel Networks Corp. 120 1 20 140 1
Scientific-Atlanta, Inc. 1,360 55 280 11 1,640 66
Tellabs, Inc. * 790 15 160 3 950 18
------------ ------------ -----------
317 63 380
------------ ------------ -----------
Telecommunication Services - (4.12%)
BCE, Inc. 3,250 85 640 17 3,890 102
Cox Communications, Inc. - Cl. A 6,780 300 700 31 7,480 331
United States Cellular Corp. * 1,320 76 270 15 1,590 91
Verizon Communications 23,650 1,265 3,680 197 27,330 1,462
WorldCom, Inc. * 5,740 82 930 13 6,670 95
Worldcom, Inc. MCI GROUP COM 181 3 37 1 218 4
XO Communications, Inc. 440 1 90 530 1
------------ ------------ -----------
1,812 274 2,086
------------ ------------ -----------
Schedule of Investments Exhibit C
June 30, 2001
The Schedule of Investments is a complete list of all the securities owned by
the V.S.T. Large Cap Value CORE Fund and the V.S.T. Large Cap Value CORE II
Fund, combined on June 30, 2001.
----------------------------------------------------------------------------------------------
John Hancock V.S.T. Large Cap John Hancock V.S.T. Large Cap
Value CORE Fund Value CORE II Fund Combined
----------------------------------------------------------------------------------------------
NUMBER OF MARKET VALUE NUMBER OF MARKET VALUE NUMBER OF MARKET VALUE
INTEREST SHARES OR (000'S INTEREST SHARES OR (000'S SHARES OR (000'S
RATE WARRANTS OMITTED) RATE WARRANTS OMITTED) WARRANTS OMITTED)
----------------------------------------------------------------------------------------------
ISSUER, DESCRIPTION
-------------------
Telephone - (6.19%)
Alltel Corp. 5,380 $ 330 440 $ 27 5,820 $ 357
AT&T Corp. 22,430 493 3,820 84 26,250 577
AT&T Corp. - Liberty Media
Group - Cl. A 23,560 412 4,250 74 27,810 486
AT&T Wireless Group 6,800 111 6,800 111
BellSouth Corp. 7,510 302 1,340 54 8,850 356
Constellation Energy Group 100 4 100 4
Level 3 Communications, Inc. * 270 1 50 320 1
Qwest Communications
International, Inc. 3,910 125 620 20 4,530 145
SBC Communications, Inc. 16,740 671 2,950 118 19,690 789
Telephone and Data Systems, Inc. 2,360 257 460 50 2,820 307
------------ ------------ -----------
2,706 427 3,133
------------ ------------ -----------
Transportation Services - (1.36%)
Burlington Northern Santa Fe Corp. 610 18 130 4 740 22
Canadian National Railway Co. 3,410 138 620 25 4,030 163
CSX Corp. 3,410 124 620 23 4,030 147
Expeditors International of
Washington, Inc. 1,640 98 90 5 1,730 103
Southwest Airlines Co. 1,180 22 240 4 1,420 26
UAL Corp. 2,580 91 510 18 3,090 109
Union Pacific Corp. 800 44 140 8 940 52
United Parcel Service, Inc. - Cl. B* 990 57 160 9 1,150 66
------------ ------------ -----------
592 96 688
------------ ------------ -----------
U.S. Government Agencies - (2.88%)
Federal Home Loan Mortgage Corp. 5,920 414 1,060 74 6,980 488
Federal National Mortgage Assoc 9,850 839 1,500 128 11,350 967
------------ ------------ -----------
1,253 202 1,455
------------ ------------ -----------
------------ ------------ -----------
TOTAL COMMON STOCK - (95.35%) 41,668 6,564 48,232
------------ ------------ -----------
Schedule of Investments Exhibit C
June 30, 2001
The Schedule of Investments is a complete list of all the securities owned by
the V.S.T. Large Cap Value CORE Fund and the V.S.T. Large Cap Value CORE II
Fund, combined on June 30, 2001.
----------------------------------------------------------------------------------------------
John Hancock V.S.T. Large Cap John Hancock V.S.T. Large Cap
Value CORE Fund Value CORE II Fund Combined
----------------------------------------------------------------------------------------------
NUMBER OF MARKET VALUE NUMBER OF MARKET VALUE NUMBER OF MARKET VALUE
INTEREST SHARES OR (000'S INTEREST SHARES OR (000'S SHARES OR (000'S
RATE WARRANTS OMITTED) RATE WARRANTS OMITTED) WARRANTS OMITTED)
----------------------------------------------------------------------------------------------
ISSUER, DESCRIPTION
-------------------
PAR VALUE PAR VALUE PAR VALUE
(000's (000's (000's
OMITTED) OMITTED) OMITTED)
---------- ---------- ---------
SHORT TERM INVESTMENTS
Rights/Warrants - 6.33%
Goldman Saks Repo
4.11% due 07/02/01 4.110% $ 3,200 $ 3,200 $ 3,200 $ 3,200
------------ -----------
TOTAL SHORT TERM INVESTMENTS (6.33%) 3,200 3,200
------------ -----------
TOTAL INVESTMENTS (101.68%) 44,868 $ 6,564 51,432
------------ ------------ -----------
OTHER ASSETS AND LIABILITIES, NET (1.68%) (881) 32 (849)
------------ ------------ -----------
TOTAL NET ASSETS (100.00%) $ 43,987 $ 6,596 $ 50,583
------------ ------------ -----------
NOTES TO THE SCHEDULE OF INVESTMENTS
* Non-income producing security
The percentage shown for each investment category is the total value of that
category as a percentage of the combined net assets of the Funds.
JOHN HANCOCK V.S.T. LARGE/MID CAP VALUE FUND
NOTES TO PRO FORMA COMBINED FINANCIAL STATEMENTS
JUNE 30, 2001
Pro forma information is intended to provide the shareholders of the John
Hancock V.S.T. Large/Mid Cap Value Fund and the John Hancock V.S.T. Large/Mid
Cap Value II Fund with information about the impact of the proposed merger by
indicating how the merger might have affected information had the merger been
consummated as of June 30, 2000.
The pro forma combined statements of assets and liabilities and results of
operations as of June 30, 2001 have been prepared to reflect the merger of John
Hancock V.S.T. Large/Mid Cap Value Fund and John Hancock V.S.T. Large/Mid Cap
Value II Fund after giving effect to pro forma adjustments described in the
notes below.
(a) Acquisition by John Hancock V.S.T. Large/Mid Cap Value Fund of all assets
of John Hancock V.S.T. Large/Mid Cap Value II Fund and issuance of John
Hancock V.S.T. Large/Mid Cap Value Fund shares in exchange for all of the
outstanding shares of John Hancock V.S.T. Large/Mid Cap Value II Fund.
(b) The investment advisory fee was adjusted to reflect the application of the
fee structure which will be in effect for John Hancock V.S.T. Large/Mid Cap
Value Fund:
0.95% for the first $25,000,000 of the Fund's net assets;
0.85% for net assets between $25,000,000 and $50,000,000;
0.75% for net assets between $50,000,000 and $100,000,000;
0.65% for net assets in excess of $100,000,000.
(c) The actual expenses incurred by the John Hancock V.S.T. Large/Mid Cap Value
Fund and the John Hancock V.S.T. Large/Mid Cap Value II Fund were reduced
to reflect the estimated savings arising from the merger.
(d) Represents the Adviser's voluntary agreement to limit the funds' other
expenses to an annual rate of 0.10% of the funds' average daily net assets.
John Hancock V.S.T. Large/Mid Cap Value Fund Exhibit C
Pro-forma combined statement of assets and liabilities
June 30, 2001
(000's omitted)
John Hancock
John Hancock V.S.T. Large/Mid
V.S.T. Large/Mid Cap Value II Pro-Forma
Cap Value Fund Fund Adjustments Combined
---------------- ---------------- -------------- -------------
ASSETS
Long term investments at cost $ 34,451 $ 121,079 $ -- $ 155,530
Net unrealized appreciation (depreciation)
of investments 300 (915) -- (615)
Short-term investments at value 2,037 8,029 -- 10,066
---------------- ---------------- -------------- -------------
Total investments 36,788 128,193 -- 164,981
Receivable for:
Investments sold 354 1,056 -- 1,410
Dividends 43 191 -- 234
Futures contracts variation margin 2 4 -- 6
---------------- ---------------- -------------- -------------
Total Assets 37,187 129,444 -- 166,631
---------------- ---------------- -------------- -------------
LIABILITIES
Payables for:
Due to custodian -- 6 -- 6
Investments purchased 613 1,866 -- 2,479
Securities on loan -- 6,461 -- 6,461
Other liabilities 5 9 -- 14
---------------- ---------------- -------------- -------------
Total Liabilities 618 8,342 -- 8,960
---------------- ---------------- -------------- -------------
Net Assets 36,569 121,102 -- 157,671
================ ================ ============== =============
Net assets:
Capital paid-in 35,651 106,971 -- 142,622
Accumulated net realized gain (loss) on
investments, futures and foreign
currency transactions 616 15,084 -- 15,700
Undistributed (distribution in excess of)
net investment income (loss) (1) (3) -- (4)
Net unrealized appreciation (depreciation)
of investments, futures and
translation of assets and
liabilities in foreign currencies 303 (950) -- (647)
---------------- ---------------- -------------- -------------
36,569 121,102 -- 157,671
================ ================ -------------- =============
Net assets:
V.S.T. Large/Mid Cap Value Fund 36,569 -- 121,102 (a) 157,671
V.S.T. Large/Mid Cap Value II Fund -- 121,102 (121,102)(a) --
---------------- ---------------- -------------- -------------
36,569 121,102 -- 157,671
================ ================ ============== =============
Shares outstanding:
V.S.T. Large/Mid Cap Value Fund 3,246 -- 10,744 (a) 13,990
V.S.T. Large/Mid Cap Value II Fund -- 8,480 (8,480)(a) --
---------------- ---------------- -------------- -------------
3,246 8,480 2,264 13,990
================ ================ ============== =============
Net asset value per share:
V.S.T. Large/Mid Cap Value Fund $ 11.27 -- -- $ 11.27
V.S.T. Large/Mid Cap Value II Fund -- $ 14.28 $ (14.28)(a) --
================ ================ ============== =============
John Hancock V.S.T. Large/Mid Cap Value Fund Exhibit C
Pro-forma combined statement of operations
For the year ended June 30, 2001
(000's omitted)
John Hancock John Hancock
V.S.T. Large/Mid V.S.T. Large/Mid
Cap Value Fund Cap Value II Fund
12 months ended 12 months ended Pro-Forma
June 30, 2001 June 30, 2001 Adjustments Combined
---------------- ---------------- -------------- -------------
INVESTMENT INCOME
Interest $ 39 $ 181 $ - $ 220
Dividends 288 1,657 - 1,945
Securities Lending - 20 - 20
---------------- ---------------- -------------- -------------
Total investment income 327 1,858 - 2,185
---------------- ---------------- -------------- -------------
EXPENSES
Investment management fee 158 955 (49)(b) 1,064
Auditing fees 2 9 (3)(c) 8
Custodian fees 45 43 - 88
Legal fees 1 2 (1)(c) 2
Printing & mailing fees 2 1 (1)(c) 2
Trustees' fee - 3 - 3
Other fees - 5 - 5
---------------- ---------------- -------------- -------------
Total expenses 208 1,018 (54) 1,172
Less expenses reimbursed (32) - 32 (d) -
---------------- ---------------- -------------- -------------
Net expenses 176 1,018 (22) 1,172
---------------- ---------------- -------------- -------------
Net investment income (loss) 151 840 22 1,013
---------------- ---------------- -------------- -------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investments 777 25,381 - 26,158
Financial futures contracts (67) 21 - (46)
Change in net unrealized appreciation
(depreciation) on:
Investments 377 (6,651) - (6,274)
Futures 3 (35) - (32)
---------------- ---------------- -------------- -------------
Net realized and unrealized gain (loss) 1,090 18,716 - 19,806
---------------- ---------------- -------------- -------------
Net increase (decrease) in net assets resulting
from operations $ 1,241 $ 19,556 $ 22 $ 20,819
================ ================ ============== =============
Schedule of Investments Exhibit C
June 30, 2001
The Schedule of Investments is a complete list of all the securities owned by
the V.S.T. Large/Mid Cap Value Fund and the V.S.T. Large/Mid Cap Value II Fund,
combined on June 30, 2001.
-------------------------------------------------------------
V.S.T. Large/Mid Cap Value Fund
-------------------------------------------------------------
NUMBER OF MARKET VALUE
INTEREST SHARES OR (000's
RATE WARRANTS OMITTED)
-------------------------------------------------------------
ISSUER, DESCRIPTION
-------------------
Common Stock
Aerospace & Defense (2.05%)
Boeing Co. 4,100 $ 228
Lockheed Martin Corp. 4,600 171
United Technologies Corp. 4,400 322
------------
721
------------
Automobile (1.71%)
Ford Motor Co. 15,270 375
General Motors Corp. 2,600 167
General Motors Corp. - Cl. H 2,196 45
------------
587
------------
Bank (14.85%)
Australia & New Zealand Banking Group, Ltd. - ADR 10,200 434
Bank of Montreal 13,400 346
JP Morgan Chase & Co. 32,300 1,441
Mercantile Bankshares Corp.
UnionBanCal Corp. 14,300 482
US Bancorp 31,661 721
Wachovia Corp. 2,900 206
Washington Mutual, Inc. 32,950 1,237
Westpac Banking Corp., Ltd. 8,600 315
------------
5,182
------------
Chemical (1.48%)
Air Products & Chemicals, Inc. 4,300 197
E.I. du Pont de Nemours & Co. 6,900 333
------------
530
------------
Commercial Services (0.26%)
Avery Dennison Corp. 1,800 92
------------
V.S.T. Large/Mid Cap Value II Fund
-----------------------------------------------------------
NUMBER OF MARKET VALUE
INTEREST SHARES OR (000's
RATE WARRANTS OMITTED)
-----------------------------------------------------------
ISSUER, DESCRIPTION
-------------------
Common Stock
Aerospace & Defense (2.05%)
Boeing Co. 15,100 $ 839
Lockheed Martin Corp. 15,600 578
United Technologies Corp. 15,000 1,099
------------
2,516
------------
Automobile (1.71%)
Ford Motor Co. 52,400 1,286
General Motors Corp. 10,500 676
General Motors Corp. - Cl. H 7,500 152
------------
2,114
------------
Bank (14.85%)
Australia & New Zealand Banking Group, Ltd. - ADR 33,000 1,404
Bank of Montreal 44,000 1,136
JP Morgan Chase & Co. 108,700 4,848
Mercantile Bankshares Corp. 2,500 98
UnionBanCal Corp. 49,600 1,672
US Bancorp 108,373 2,470
Wachovia Corp. 10,000 711
Washington Mutual, Inc. 127,500 4,788
Westpac Banking Corp., Ltd. 30,200 1,105
------------
18,232
------------
Chemical (1.48%)
Air Products & Chemicals, Inc. 14,800 677
E.I. du Pont de Nemours & Co. 23,300 1,124
------------
1,801
------------
Commercial Services (0.26%)
Avery Dennison Corp. 6,100 311
------------
----------------------------------------------------------------
Combined Combined
----------------------------------------------------------------
NUMBER OF MARKET VALUE
INTEREST SHARES OR (000's
RATE WARRANTS OMITTED)
----------------------------------------------------------------
ISSUER, DESCRIPTION
-------------------
Common Stock
Aerospace & Defense (2.05%)
Boeing Co. 19,200 $ 1,067
Lockheed Martin Corp. 20,200 749
United Technologies Corp. 19,400 1,421
------------
3,237
------------
Automobile (1.71%)
Ford Motor Co. 67,670 1,661
General Motors Corp. 13,100 843
General Motors Corp. - Cl. H 9,696 197
------------
2,701
------------
Bank (14.85%)
Australia & New Zealand Banking Group, Ltd. - ADR 43,200 1,838
Bank of Montreal 57,400 1,482
JP Morgan Chase & Co. 141,000 6,289
Mercantile Bankshares Corp. 2,500 98
UnionBanCal Corp. 63,900 2,154
US Bancorp 140,034 3,191
Wachovia Corp. 12,900 917
Washington Mutual, Inc. 160,450 6,025
Westpac Banking Corp., Ltd. 38,800 1,420
------------
23,414
------------
Chemical (1.48%)
Air Products & Chemicals, Inc. 19,100 874
E.I. du Pont de Nemours & Co. 30,200 1,457
------------
2,331
------------
Commercial Services (0.26%)
Avery Dennison Corp. 7,900 403
------------
Schedule of Investments Exhibit C
June 30, 2001
The Schedule of Investments is a complete list of all the securities owned by
the V.S.T. Large/Mid Cap Value Fund and the V.S.T. Large/Mid Cap Value II Fund,
combined on June 30, 2001.
-------------------------------------------------------------
V.S.T. Large/Mid Cap Value Fund
-------------------------------------------------------------
NUMBER OF MARKET VALUE
INTEREST SHARES OR (000's
RATE WARRANTS OMITTED)
-------------------------------------------------------------
ISSUER, DESCRIPTION
-------------------
Computer Equipment (2.37%)
Compaq Computer Corp. 5,900 $ 91
Hewlett-Packard Co. 8,900 255
International Business Machines Corp. 3,700 418
Palm, Inc. 9,200 56
------------
820
------------
Computer Software & Services (1.06%)
First Data Corp. 6,200 398
------------
Container (0.04%)
Smurfit-Stone Container Corp. 3,700 60
------------
Cosmetic & Personal Care (2.65%)
International Flavors & Fragrances, Inc. 7,600 191
Leggett & Platt, Inc. 6,200 137
Procter & Gamble Co. 9,800 625
------------
953
------------
Diversified Operations (2.44%)
Eaton Corp. 2,500 175
General Electric Co. 8,600 419
Tyco International, Ltd. 5,000 273
------------
867
------------
Electric Power (3.56%)
Calpine Corp.* 7,300 276
Duke Energy Co. 6,000 234
Exelon Corp. 8,712 559
Montana Power Co. 3,400 39
Pinnacle West Capital Corp. 3,400 161
PPL Corp. 1,800 99
------------
1,368
------------
-----------------------------------------------------------
V.S.T. Large/Mid Cap Value II Fund
-----------------------------------------------------------
NUMBER OF MARKET VALUE
INTEREST SHARES OR (000's
RATE WARRANTS OMITTED)
-----------------------------------------------------------
ISSUER, DESCRIPTION
-------------------
Computer Equipment (2.37%)
Compaq Computer Corp. 32,800 $ 508
Hewlett-Packard Co. 30,400 869
International Business Machines Corp. 11,900 1,345
Palm, Inc. 31,600 192
------------
2,914
------------
Computer Software & Services (1.06%)
First Data Corp. 19,800 1,272
------------
Container (0.04%)
Smurfit-Stone Container Corp.
Cosmetic & Personal Care (2.65%)
International Flavors & Fragrances, Inc. 25,800 648
Leggett & Platt, Inc. 22,500 496
Procter & Gamble Co. 32,600 2,080
------------
3,224
------------
Diversified Operations (2.44%)
Eaton Corp. 8,700 610
General Electric Co. 29,300 1,428
Tyco International, Ltd. 17,200 938
------------
2,976
------------
Electric Power (3.56%)
Calpine Corp. * 29,800 1,126
Duke Energy Co. 20,200 788
Exelon Corp. 28,100 1,802
Montana Power Co. 16,900 196
Pinnacle West Capital Corp.
PPL Corp. 6,100 336
------------
4,248
------------
----------------------------------------------------------------
Combined Combined
----------------------------------------------------------------
NUMBER OF MARKET VALUE
INTEREST SHARES OR (000's
RATE WARRANTS OMITTED)
----------------------------------------------------------------
ISSUER, DESCRIPTION
-------------------
Computer Equipment (2.37%)
Compaq Computer Corp. 38,700 $ 599
Hewlett-Packard Co. 39,300 1,124
International Business Machines Corp. 15,600 1,763
Palm, Inc. 40,800 248
------------
3,734
------------
Computer Software & Services (1.06%)
First Data Corp. 26,000 1,670
------------
Container (0.04%)
Smurfit-Stone Container Corp. 3,700 60
------------
Cosmetic & Personal Care (2.65%)
International Flavors & Fragrances, Inc. 33,400 839
Leggett & Platt, Inc. 28,700 633
Procter & Gamble Co. 42,400 2,705
------------
4,177
------------
Diversified Operations (2.44%)
Eaton Corp. 11,200 785
General Electric Co. 37,900 1,847
Tyco International, Ltd. 22,200 1,211
------------
3,843
------------
Electric Power (3.56%)
Calpine Corp. * 37,100 1,402
Duke Energy Co. 26,200 1,022
Exelon Corp. 36,812 2,361
Montana Power Co. 20,300 235
Pinnacle West Capital Corp. 3,400 161
PPL Corp. 7,900 435
------------
5,616
------------
Schedule of Investments Exhibit C
June 30, 2001
The Schedule of Investment is a complete list of all the securities owned by the
V.S.T. Large/Mid Cap Value Fund and the V.S.T. Large/Mid Cap Value II Fund,
combined on June 30, 2001.
-------------------------------------------------------------
V.S.T. Large/Mid Cap Value Fund
-------------------------------------------------------------
NUMBER OF MARKET VALUE
INTEREST SHARES OR (000's
RATE WARRANTS OMITTED)
-------------------------------------------------------------
ISSUER, DESCRIPTION
-------------------
Electronic Products & Services (1.24%)
Cisco Systems, Inc. 7,300 $ 133
Motorola, Inc. 18,500 306
------------
439
------------
Energy - Alternative Source (0.94%)
El Paso Corp. 6,500 341
------------
Financial Services (1.73%)
Merrill Lynch & Co., Inc. 8,800 521
Pitney Bowes, Inc. 2,700 114
------------
635
------------
Food, Beverage & Tobacco (4.67%)
ConAgra, Inc. 18,700 370
PepsiCo, Inc. 8,700 385
Philip Morris Cos., Inc. 5,100 259
R.J. Reynolds Tobacco Holdings, Inc.* 9,200 502
------------
1,516
------------
Health Care Products (5.95%)
Abbott Laboratories 9,900 475
American Home Products Corp. 3,600 210
Baxter International, Inc. 4,600 225
Bristol-Myers Squibb Co. 1,500 78
Eli Lilly & Co. 1,000 74
McKesson HBOC, Inc. 2,600 97
Merck & Co., Inc. 3,400 217
Mylan Laboratories, Inc. 4,500 127
Pharmacia Corp. 10,047 462
Schering-Plough Corp. 4,600 167
------------
2,132
------------
Health Care Services (0.08%)
WebMD Corp. 4,000 28
------------
-----------------------------------------------------------
V.S.T. Large/Mid Cap Value II Fund
-----------------------------------------------------------
NUMBER OF MARKET VALUE
INTEREST SHARES OR (000's
RATE WARRANTS OMITTED)
-----------------------------------------------------------
ISSUER, DESCRIPTION
-------------------
Electronic Products & Services (1.24%)
Cisco Systems, Inc. 25,100 $ 457
Motorola, Inc. 64,100 1,061
------------
1,518
------------
Energy - Alternative Source (0.94%)
El Paso Corp. 21,800 1,145
------------
Financial Services (1.73%)
Merrill Lynch & Co., Inc. 28,700 1,700
Pitney Bowes, Inc. 9,200 388
------------
2,088
------------
Food, Beverage & Tobacco (4.67%)
ConAgra, Inc. 60,600 1,200
PepsiCo, Inc. 29,800 1,317
Philip Morris Cos., Inc. 22,800 1,157
R.J. Reynolds Tobacco Holdings, Inc.* 39,700 2,168
------------
5,842
------------
Health Care Products (5.95%)
Abbott Laboratories 33,700 1,618
American Home Products Corp. 12,100 707
Baxter International, Inc. 16,000 784
Bristol-Myers Squibb Co. 5,000 262
Eli Lilly & Co. 3,200 237
McKesson HBOC, Inc. 9,000 334
Merck & Co., Inc. 11,300 722
Mylan Laboratories, Inc. 15,400 433
Pharmacia Corp. 34,100 1,567
Schering-Plough Corp. 16,000 580
------------
7,244
------------
Health Care Services (0.08%)
WebMD Corp. 13,100 92
------------
----------------------------------------------------------------
Combined Combined
----------------------------------------------------------------
NUMBER OF MARKET VALUE
INTEREST SHARES OR (000's
RATE WARRANTS OMITTED)
----------------------------------------------------------------
ISSUER, DESCRIPTION
-------------------
Electronic Products & Services (1.24%)
Cisco Systems, Inc. 32,400 $ 590
Motorola, Inc. 82,600 1,367
------------
1,957
------------
Energy - Alternative Source (0.94%)
El Paso Corp. 28,300 1,486
------------
Financial Services (1.73%)
Merrill Lynch & Co., Inc. 37,500 2,221
Pitney Bowes, Inc. 11,900 502
------------
2,723
------------
Food, Beverage & Tobacco (4.67%)
ConAgra, Inc. 79,300 1,570
PepsiCo, Inc. 38,500 1,702
Philip Morris Cos., Inc. 27,900 1,416
R.J. Reynolds Tobacco Holdings, Inc.* 48,900 2,670
------------
7,358
------------
Health Care Products (5.95%)
Abbott Laboratories 43,600 2,093
American Home Products Corp. 15,700 917
Baxter International, Inc. 20,600 1,009
Bristol-Myers Squibb Co. 6,500 340
Eli Lilly & Co. 4,200 311
McKesson HBOC, Inc. 11,600 431
Merck & Co., Inc. 14,700 939
Mylan Laboratories, Inc. 19,900 560
Pharmacia Corp. 44,147 2,029
Schering-Plough Corp. 20,600 747
------------
9,376
------------
Health Care Services (0.08%)
WebMD Corp. 17,100 120
------------
Schedule of Investments Exhibit C
June 30, 2001
The Schedule of Investments is a complete list of all the securities owned by
the V.S.T. Large/Mid Cap Value Fund and the V.S.T. Large/Mid Cap Value II Fund,
combined on June 30, 2001.
-------------------------------------------------------------
V.S.T. Large/Mid Cap Value Fund
-------------------------------------------------------------
NUMBER OF MARKET VALUE
INTEREST SHARES OR (000's
RATE WARRANTS OMITTED)
-------------------------------------------------------------
ISSUER, DESCRIPTION
-------------------
Insurance (7.03%)
American International Group, Inc. 6,250 $ 537
Cigna Corp. 4,400 422
Marsh & McLennan Cos., Inc. 3,600 364
MBIA, Inc. 13,300 740
XL Capital, Ltd. - Cl. A 5,200 427
------------
2,490
------------
Leisure & Recreation (1.12%)
Eastman Kodak Co. 1,900 89
Sabre Group Holdings, Inc. 5,500 275
Six Flags, Inc. 900 19
------------
383
------------
Machinery (1.08%)
Caterpillar, Inc. 4,100 205
Thermo Electron Corp.* 8,000 176
------------
381
------------
Media - Publishing (0.53%)
Gannett Co., Inc. 2,800 185
------------
Media - TV / Radio (2.51%)
Adelphia Communications Corp. - Cl. A 7,000 287
AOL Time Warner, Inc.* 2,600 138
E.W. Scripps Co. - Cl. A 2,600 179
USA Networks, Inc.* 7,700 216
------------
820
------------
Metals & Mining (1.60%)
Alcoa, Inc. 8,300 327
Minnesota Mining & Manufacturing Co. 1,600 183
------------
510
------------
-----------------------------------------------------------
V.S.T. Large/Mid Cap Value II Fund
-----------------------------------------------------------
NUMBER OF MARKET VALUE
INTEREST SHARES OR (000's
RATE WARRANTS OMITTED)
-----------------------------------------------------------
ISSUER, DESCRIPTION
-------------------
Insurance (7.03%)
American International Group, Inc. 22,800 $ 1,961
Cigna Corp. 15,200 1,456
Marsh & McLennan Cos., Inc. 13,000 1,313
MBIA, Inc. 43,650 2,430
XL Capital, Ltd. - Cl. A 17,500 1,437
------------
8,597
------------
Leisure & Recreation (1.12%)
Eastman Kodak Co. 6,400 299
Sabre Group Holdings, Inc. 20,400 1,020
Six Flags, Inc. 3,000 63
------------
1,382
------------
Machinery (1.08%)
Caterpillar, Inc. 14,100 706
Thermo Electron Corp.* 27,900 614
------------
1,320
------------
Media - Publishing (0.53%)
Gannett Co., Inc. 9,800 646
------------
Media - TV / Radio (2.51%)
Adelphia Communications Corp. - Cl. A 23,900 980
AOL Time Warner, Inc.* 9,000 477
E.W. Scripps Co. - Cl. A 13,400 924
USA Networks, Inc.* 26,700 748
------------
3,129
------------
Metals & Mining (1.60%)
Alcoa, Inc. 35,500 1,399
Minnesota Mining & Manufacturing Co. 5,400 616
------------
2,015
------------
----------------------------------------------------------------
Combined Combined
----------------------------------------------------------------
NUMBER OF MARKET VALUE
INTEREST SHARES OR (000's
RATE WARRANTS OMITTED)
----------------------------------------------------------------
ISSUER, DESCRIPTION
-------------------
Insurance (7.03%)
American International Group, Inc. 29,050 $ 2,498
Cigna Corp. 19,600 1,878
Marsh & McLennan Cos., Inc. 16,600 1,677
MBIA, Inc. 56,950 3,170
XL Capital, Ltd. - Cl. A 22,700 1,864
------------
11,087
------------
Leisure & Recreation (1.12%)
Eastman Kodak Co. 8,300 388
Sabre Group Holdings, Inc. 25,900 1,295
Six Flags, Inc. 3,900 82
------------
1,765
------------
Machinery (1.08%)
Caterpillar, Inc. 18,200 911
Thermo Electron Corp.* 35,900 790
------------
1,701
------------
Media - Publishing (0.53%)
Gannett Co., Inc. 12,600 831
------------
Media - TV / Radio (2.51%)
Adelphia Communications Corp. - Cl. A 30,900 1,267
AOL Time Warner, Inc.* 11,600 615
E.W. Scripps Co. - Cl. A 16,000 1,103
USA Networks, Inc.* 34,400 964
------------
3,949
------------
Metals & Mining (1.60%)
Alcoa, Inc. 43,800 1,726
Minnesota Mining & Manufacturing Co. 7,000 799
------------
2,525
------------
Schedule of Investments Exhibit C
June 30, 2001
The Schedule of Investments is a complete list of all the securities owned by
the V.S.T. Large/Mid Cap Value Fund and the V.S.T. Large/Mid Cap Value II Fund,
combined on June 30, 2001.
-------------------------------------------------------------
V.S.T. Large/Mid Cap Value Fund
-------------------------------------------------------------
NUMBER OF MARKET VALUE
INTEREST SHARES OR (000's
RATE WARRANTS OMITTED)
-------------------------------------------------------------
ISSUER, DESCRIPTION
-------------------
Oil & Natural Gas Exploration & Production (9.10%)
Chevron Corp. 8,600 $ 778
Conoco, Inc. - Cl. B 1,900 55
Exxon Mobil Corp. 23,250 2,030
Helmerich & Payne, Inc. 5,000 154
Rowan Cos., Inc. 8,500 188
Sunoco, Inc. 600 22
Ultramar Diamond Shamrock Corp. 500 24
USX-Marathon Group 900 26
------------
3,277
------------
Oil - Equipment & Service (0.22%)
Halliburton Co. 1,600 57
------------
Paper & Forest Products (1.18%)
Bowater, Inc. 4,500 201
Kimberly-Clark Corp. 3,500 196
Weyerhaeuser Co. 2,000 110
------------
507
------------
Personal & Commercial Lending (4.94%)
Citigroup, Inc. 30,766 1,626
------------
Real Estate Investment Trust (1.61%)
Equity Office Properties Trust 13,100 415
Kimco Realty Corp. 3,700 175
------------
590
------------
Real Estate Operations (0.14%)
Security Capital Group, Inc. - Cl. B 2,200 47
------------
Retail - Department Stores (2.20%)
Family Dollar Stores, Inc. 17,600 451
Intimate Brands, Inc. 2,200 33
Wal-Mart Stores, Inc. 6,500 317
------------
801
------------
-----------------------------------------------------------
V.S.T. Large/Mid Cap Value II Fund
-----------------------------------------------------------
NUMBER OF MARKET VALUE
INTEREST SHARES OR (000's
RATE WARRANTS OMITTED)
-----------------------------------------------------------
ISSUER, DESCRIPTION
-------------------
Oil & Natural Gas Exploration & Production (9.10%)
Chevron Corp. 27,700 $ 2,507
Conoco, Inc. - Cl. B 9,000 260
Exxon Mobil Corp. 78,700 6,874
Helmerich & Payne, Inc. 17,100 527
Rowan Cos., Inc. 30,300 670
Sunoco, Inc. 1,900 70
Ultramar Diamond Shamrock Corp. 1,600 76
USX-Marathon Group 3,000 88
------------
11,072
------------
Oil - Equipment & Service (0.22%)
Halliburton Co. 8,000 285
------------
Paper & Forest Products (1.18%)
Bowater, Inc. 15,400 689
Kimberly-Clark Corp. 12,000 671
Weyerhaeuser Co.
------------
1,360
------------
Personal & Commercial Lending (4.94%)
Citigroup, Inc. 116,700 6,166
------------
Real Estate Investment Trust (1.61%)
Equity Office Properties Trust 42,500 1,344
Kimco Realty Corp. 12,800 606
------------
1,950
------------
Real Estate Operations (0.14%)
Security Capital Group, Inc. - Cl. B 8,300 178
------------
Retail - Department Stores (2.20%)
Family Dollar Stores, Inc. 57,700 1,479
Intimate Brands, Inc. 12,600 190
Wal-Mart Stores, Inc. 20,500 1,000
------------
2,669
------------
----------------------------------------------------------------
Combined Combined
----------------------------------------------------------------
NUMBER OF MARKET VALUE
INTEREST SHARES OR (000's
RATE WARRANTS OMITTED)
----------------------------------------------------------------
ISSUER, DESCRIPTION
-------------------
Oil & Natural Gas Exploration & Production (9.10%)
Chevron Corp. 36,300 $ 3,285
Conoco, Inc. - Cl. B 10,900 315
Exxon Mobil Corp. 101,950 8,904
Helmerich & Payne, Inc. 22,100 681
Rowan Cos., Inc. 38,800 858
Sunoco, Inc. 2,500 92
Ultramar Diamond Shamrock Corp. 2,100 100
USX-Marathon Group 3,900 114
------------
14,349
------------
Oil - Equipment & Service (0.22%)
Halliburton Co. 9,600 342
------------
Paper & Forest Products (1.18%)
Bowater, Inc. 19,900 890
Kimberly-Clark Corp. 15,500 867
Weyerhaeuser Co. 2,000 110
------------
1,867
------------
Personal & Commercial Lending (4.94%)
Citigroup, Inc. 147,466 7,792
------------
Real Estate Investment Trust (1.61%)
Equity Office Properties Trust 55,600 1,759
Kimco Realty Corp. 16,500 781
------------
2,540
------------
Real Estate Operations (0.14%)
Security Capital Group, Inc. - Cl. B 10,500 225
------------
Retail - Department Stores (2.20%)
Family Dollar Stores, Inc. 75,300 1,930
Intimate Brands, Inc. 14,800 223
Wal-Mart Stores, Inc. 27,000 1,317
------------
3,470
------------
Schedule of Investments Exhibit C
June 30, 2001
The Schedule of Investments is a complete list of all the securities owned by
the V.S.T. Large/Mid Cap Value Fund and the V.S.T. Large/Mid Cap Value II Fund,
combined on June 30, 2001.
-------------------------------------------------------------
V.S.T. Large/Mid Cap Value Fund
-------------------------------------------------------------
NUMBER OF MARKET VALUE
INTEREST SHARES OR (000's
RATE WARRANTS OMITTED)
-------------------------------------------------------------
ISSUER, DESCRIPTION
-------------------
Retail - Food (2.44%)
Brinker International, Inc. 3,700 $ 96
McDonald's Corp. 10,000 271
Safeway, Inc.* 10,200 489
------------
856
------------
Shoe & Apparel Manufacturing (1.02%)
Jones Apparel Group, Inc.* 3,100 134
Nike, Inc. - Cl. B 4,400 185
------------
319
------------
Telecommunication Services (4.86%)
Broadwing, Inc. 6,800 166
Verizon Communications 26,600 1,423
WorldCom, Inc.* 13,200 188
------------
1,777
------------
Telephone (5.46%)
AT&T Corp. 12,600 277
AT&T Corp. - Liberty Media Group - Cl. A 35,000 612
Constellation Energy Group 5,400 230
Qwest Communications International, Inc. 12,337 393
SBC Communications, Inc. 12,095 485
------------
1,997
------------
Transportation Services (1.10%)
Canadian National Railway Co. 2,800 113
Continental Airlines, Inc. - Cl. B* 1,300 64
Delta Air Lines, Inc. 900 40
Southwest Airlines Co. 8,750 162
------------
379
------------
-----------------------------------------------------------
V.S.T. Large/Mid Cap Value II Fund
-----------------------------------------------------------
NUMBER OF MARKET VALUE
INTEREST SHARES OR (000's
RATE WARRANTS OMITTED)
-----------------------------------------------------------
ISSUER, DESCRIPTION
-------------------
Retail - Food (2.44%)
Brinker International, Inc. 13,600 $ 352
McDonald's Corp. 34,300 928
Safeway, Inc.* 35,500 1,704
------------
2,984
------------
Shoe & Apparel Manufacturing (1.02%)
Jones Apparel Group, Inc.* 11,300 488
Nike, Inc. - Cl. B 19,200 806
------------
1,294
------------
Telecommunication Services (4.86%)
Broadwing, Inc. 23,200 567
Verizon Communications 87,600 4,687
WorldCom, Inc.* 45,300 643
------------
5,897
------------
Telephone (5.46%)
AT&T Corp. 44,700 983
AT&T Corp. - Liberty Media Group - Cl. A 115,200 2,015
Constellation Energy Group 18,700 797
Qwest Communications International, Inc. 39,800 1,269
SBC Communications, Inc. 38,800 1,554
------------
6,618
------------
Transportation Services (1.10%)
Canadian National Railway Co. 9,700 393
Continental Airlines, Inc. - Cl. B* 5,200 256
Delta Air Lines, Inc. 3,700 163
Southwest Airlines Co. 29,850 552
------------
1,364
------------
----------------------------------------------------------------
Combined Combined
----------------------------------------------------------------
NUMBER OF MARKET VALUE
INTEREST SHARES OR (000's
RATE WARRANTS OMITTED)
----------------------------------------------------------------
ISSUER, DESCRIPTION
-------------------
Retail - Food (2.44%)
Brinker International, Inc. 17,300 $ 448
McDonald's Corp. 44,300 1,199
Safeway, Inc.* 45,700 2,193
------------
3,840
------------
Shoe & Apparel Manufacturing (1.02%)
Jones Apparel Group, Inc.* 14,400 622
Nike, Inc. - Cl. B 23,600 991
------------
1,613
------------
Telecommunication Services (4.86%)
Broadwing, Inc. 30,000 733
Verizon Communications 114,200 6,110
WorldCom, Inc.* 58,500 831
------------
7,674
------------
Telephone (5.46%)
AT&T Corp. 57,300 1,260
AT&T Corp. - Liberty Media Group - Cl. A 150,200 2,627
Constellation Energy Group 24,100 1,027
Qwest Communications International, Inc. 52,137 1,662
SBC Communications, Inc. 50,895 2,039
------------
8,615
------------
Transportation Services (1.10%)
Canadian National Railway Co. 12,500 506
Continental Airlines, Inc. - Cl. B* 6,500 320
Delta Air Lines, Inc. 4,600 203
Southwest Airlines Co. 38,600 714
------------
1,743
------------
Schedule of Investments Exhibit C
June 30, 2001
The Schedule of Investments is a complete list of all the securities owned by
the V.S.T. Large/Mid Cap Value Fund and the V.S.T. Large/Mid Cap Value II Fund,
combined on June 30, 2001.
-------------------------------------------------------------
V.S.T. Large/Mid Cap Value Fund
-------------------------------------------------------------
NUMBER OF MARKET VALUE
INTEREST SHARES OR (000's
RATE WARRANTS OMITTED)
-------------------------------------------------------------
ISSUER, DESCRIPTION
-------------------
U.S. Government Agencies (3.03%)
Federal Home Loan Mortgage Corp. 4,000 $ 280
Federal National Mortgage Assoc. 9,400 800
------------
1,080
------------
------------
TOTAL COMMON STOCK (98.25%) 34,751
------------
PAR VALUE
(000's
OMITTED)*
----------------------
SHORT-TERM INVESTMENTS (2.19%)
Investment in joint trading account
3.97% due 07/02/01 3.970% $ 1,977 1,977
------------
U.S. Treasury BillS (0.10%)
3.79% due 11/01/01 3.790 50 50
3.56% due 08/16/01 3.560 10 10
3.54% due 09/06/01
3.96% due 07/12/01
3.62% due 07/09/01
------------
60
------------
CASH EQUIVALENTS (4.10%)
Navigator Securities Lending Prime Portfolio**
------------
TOTAL SHORT-TERM INVESTMENTS (6.38%) 2,037
------------
TOTAL INVESTMENTS (104.64%) 36,788
------------
OTHER ASSETS AND LIABILITIES, NET (4.64%) (219)
------------
NET ASSETS (100.00%) $ 36,569
============
-----------------------------------------------------------
V.S.T. Large/Mid Cap Value II Fund
-----------------------------------------------------------
NUMBER OF MARKET VALUE
INTEREST SHARES OR (000's
RATE WARRANTS OMITTED)
-----------------------------------------------------------
ISSUER, DESCRIPTION
-------------------
U.S. Government Agencies (3.03%)
Federal Home Loan Mortgage Corp. 13,700 $ 959
Federal National Mortgage Assoc. 32,200 2,742
------------
3,701
------------
------------
TOTAL COMMON STOCK (98.25%) 120,164
------------
PAR VALUE
(000's
OMITTED)
----------------------
SHORT-TERM INVESTMENTS (2.19%)
Investment in joint trading account
3.97% due 07/02/01 3.970% $ 1,473 1,473
------------
U.S. Treasury BillS (0.10%)
3.79% due 11/01/01
3.56% due 08/16/01
3.54% due 09/06/01 3.540 25 25
3.96% due 07/12/01 3.960 35 35
3.62% due 07/09/01 3.620 35 35
------------
95
------------
CASH EQUIVALENTS (4.10%)
Navigator Securities Lending Prime Portfolio** 6,461
------------
TOTAL SHORT-TERM INVESTMENTS (6.38%) 8,029
------------
TOTAL INVESTMENTS (104.64%) 128,193
------------
OTHER ASSETS AND LIABILITIES, NET (4.64%) (7,091)
------------
NET ASSETS (100.00%) $ 121,102
============
----------------------------------------------------------------
Combined Combined
----------------------------------------------------------------
NUMBER OF MARKET VALUE
INTEREST SHARES OR (000's
RATE WARRANTS OMITTED)
----------------------------------------------------------------
ISSUER, DESCRIPTION
-------------------
U.S. Government Agencies (3.03%)
Federal Home Loan Mortgage Corp. 17,700 $ 1,239
Federal National Mortgage Assoc. 41,600 3,542
------------
4,781
------------
------------
TOTAL COMMON STOCK (98.25%) 154,915
------------
PAR VALUE
(000's
OMITTED)
----------------------
SHORT-TERM INVESTMENTS (2.19%)
Investment in joint trading account
3.97% due 07/02/01 $ 3,450 3,450
------------
U.S. Treasury BillS (0.10%)
3.79% due 11/01/01 50 50
3.56% due 08/16/01 10 10
3.54% due 09/06/01 25 25
3.96% due 07/12/01 35 35
3.62% due 07/09/01 35 35
------------
155
------------
CASH EQUIVALENTS (4.10%)
Navigator Securities Lending Prime Portfolio** 6,461
------------
TOTAL SHORT-TERM INVESTMENTS (6.38%) 10,066
------------
TOTAL INVESTMENTS (104.64%) 164,981
------------
OTHER ASSETS AND LIABILITIES, NET (4.64%) (7,310)
------------
NET ASSETS (100.00%) $ 157,671
============
NOTES TO THE SCHEDULE OF INVESTMENTS
ADR American Depository Receipts.
** Represents investment of security lending collateral.
* Non-income-producing security.
# All or a portion of the principle amount of this security was pledged
to cover initial margin requirements for open future contracts.
The percentage shown for each investment category is the total value of that
category as a percentage of the combined net assets of the Funds.
JOHN HANCOCK VARIABLE LIFE INSURANCE COMPANY
JOHN HANCOCK LIFE INSURANCE COMPANY
VOTE THIS CARD TODAY!
A PROMPT RESPONSE WILL SAVE THE FUND
THE EXPENSE OF ADDITIONAL MAILING
LARGE CAP VALUE CORE/SM/ II FUND
(Formerly named the "American Leaders Large Cap Value Fund").
A Series of John Hancock Variable Series Trust I
These voting instructions will be used by the insurance companies in connection
with a proxy solicitation by the trustees of the Fund.
The undersigned, revoking previous instructions, hereby instructs the above-
referenced insurance companies to vote all the shares of beneficial interest of
the Large Cap Value CORE/SM/ II Fund attributed to the undersigned at the
Special Meeting of Shareholders (the "Meeting") of the Fund to be held at 197
Clarendon Street, Boston, Massachusetts, on Wednesday, December 5, 2001 at 11:00
a.m., Eastern Time, and at any adjournment(s) of the Meeting. Receipt of the
Proxy Statement dated __________, 2001 is hereby acknowledged. If not revoked,
this card shall be voted at the Meeting, as specified on the reverse side.
PLEASE SIGN, DATE AND RETURN
PROMPTLY IN ENCLOSED ENVELOPE
Date __________________________, 2001
NOTE: Signature(s) should agree with the name(s) printed
hereon. When signing as attorney, executor, administrator,
trustee or guardian, please give your full name as such. If
a corporation, please sign in full corporate name by
president or other authorized officer. If a partnership,
please sign in partnership name by authorized person.
JOHN HANCOCK VARIABLE LIFE INSURANCE COMPANY
JOHN HANCOCK LIFE INSURANCE COMPANY
VOTE THIS CARD TODAY!
A PROMPT RESPONSE WILL SAVE THE FUND
THE EXPENSE OF ADDITIONAL MAILING
Large Cap Value CORE/SM/ II
Fund (formerly named the "American Leaders
Large Cap Value Fund")
Special Meeting of Shareholders to Be Held on
December 5, 2001
Indicate your voting instructions below by filing in the appropriate boxes using
blue or black ink or dark pencil.
If this voting instruction card is properly executed, shares attributable to
your variable annuity contract or variable life insurance policy will be voted
in the manner you direct below. If this card is executed, but you give no
direction, the shares will be voted for the proposal. They will be voted in the
discretion of the insurance company upon any other business that may properly
come before the meeting, or any adjournment(s) thereof.
Proposal: To combine the Large Cap Value CORE/SM/ II Fund with the Large Cap
Value CORE Fund.
FOR [_] AGAINST [_] ABSTAIN [_]
PLEASE DO NOT FORGET TO SIGN AND DATE THE REVERSE SIDE OF THIS CARD.
JOHN HANCOCK VARIABLE LIFE INSURANCE COMPANY
JOHN HANCOCK LIFE INSURANCE COMPANY
VOTE THIS CARD TODAY!
A PROMPT RESPONSE WILL SAVE THE FUND
THE EXPENSE OF ADDITIONAL MAILING
ACTIVE BOND II FUND
(Formerly named the "Core Bond Fund").
A Series of John Hancock Variable Series Trust I
These voting instructions will be used by the insurance companies in connection
with a proxy solicitation by the trustees of the Fund.
The undersigned, revoking previous instructions, hereby instructs the
above-referenced insurance companies to vote all the shares of beneficial
interest of the Active Bond II Fund attributed to the undersigned at the Special
Meeting of Shareholders (the "Meeting") of the Fund to be held at 197 Clarendon
Street, Boston, Massachusetts, on Wednesday, December 5, 2001 at 11:00 a.m.,
Eastern Time, and at any adjournment(s) of the Meeting. Receipt of the Proxy
Statement dated __________, 2001 is hereby acknowledged. If not revoked, this
card shall be voted at the Meeting, as specified on the reverse side.
PLEASE SIGN, DATE AND RETURN
PROMPTLY IN ENCLOSED ENVELOPE
Date __________________________, 2001
NOTE: Signature(s) should agree with the
name(s) printed hereon. When signing as
attorney, executor, administrator, trustee
or guardian, please give your full name as
such. If a corporation, please sign in full
corporate name by president or other
authorized officer. If a partnership, please
sign in partnership name by authorized person.
JOHN HANCOCK VARIABLE LIFE INSURANCE COMPANY
JOHN HANCOCK LIFE INSURANCE COMPANY
VOTE THIS CARD TODAY!
A PROMPT RESPONSE WILL SAVE THE FUND
THE EXPENSE OF ADDITIONAL MAILING
Active Bond II Fund
(formerly named the "Core Bond Fund")
Special Meeting of Shareholders to Be Held on
December 5, 2001
Indicate your voting instructions below by filing in the appropriate boxes using
blue or black ink or dark pencil.
If this voting instruction card is properly executed, shares attributable to
your variable annuity contract or variable life insurance policy will be voted
in the manner you direct below. If this card is executed, but you give no
direction, the shares will be voted for the proposal. They will be voted in the
discretion of the insurance company upon any other business that may properly
come before the meeting, or any adjournment(s) thereof.
Proposal: To combine the Active Bond II Fund with the Active Bond Fund.
FOR [_] AGAINST [_] ABSTAIN [_]
PLEASE DO NOT FORGET TO SIGN AND DATE THE REVERSE SIDE OF THIS CARD.
2
JOHN HANCOCK VARIABLE LIFE INSURANCE COMPANY
JOHN HANCOCK LIFE INSURANCE COMPANY
VOTE THIS CARD TODAY!
A PROMPT RESPONSE WILL SAVE THE FUND
THE EXPENSE OF ADDITIONAL MAILING
LARGE/MID CAP VALUE II FUND
(formerly named the "Mid Cap Value Fund")
A Series of John Hancock Variable Series Trust I
These voting instructions will be used by the insurance companies in connection
with a proxy solicitation by the trustees of the Fund.
The undersigned, revoking previous instructions, hereby instructs the
above-referenced insurance companies to vote all the shares of beneficial
interest of the Large/Mid Cap Value II Fund attributed to the undersigned at the
Special Meeting of Shareholders (the "Meeting") of the Fund to be held at 197
Clarendon Street, Boston, Massachusetts, on Wednesday, December 5, 2001 at 11:00
a.m., Eastern Time, and at any adjournment(s) of the Meeting. Receipt of the
Proxy Statement dated __________, 2001 is hereby acknowledged. If not revoked,
this card shall be voted at the Meeting, as specified on the reverse side.
PLEASE SIGN, DATE AND RETURN
PROMPTLY IN ENCLOSED ENVELOPE
Date __________________________, 2001
NOTE: Signature(s) should agree with the name(s) printed
hereon. When signing as attorney, executor, administrator,
trustee or guardian, please give your full name as such. If
a corporation, please sign in full corporate name by
president or other authorized officer. If a partnership,
please sign in partnership name by authorized person.
JOHN HANCOCK VARIABLE LIFE INSURANCE COMPANY
JOHN HANCOCK LIFE INSURANCE COMPANY
VOTE THIS CARD TODAY!
A PROMPT RESPONSE WILL SAVE THE FUND
THE EXPENSE OF ADDITIONAL MAILING
Large/Mid Cap Value II
Fund (formerly named the "Mid Cap Value Fund")
Special Meeting of Shareholders to Be Held on
December 5, 2001
Indicate your voting instructions below by filing in the appropriate boxes using
blue or black ink or dark pencil.
If this voting instruction card is properly executed, shares attributable to
your variable annuity contract or variable life insurance policy will be voted
in the manner you direct below. If this card is executed, but you give no
direction, the shares will be voted for the proposal. They will be voted in the
discretion of the insurance company upon any other business that may properly
come before the meeting, or any adjournment(s) thereof.
Proposal: To combine the Large/Mid Cap Value II Fund with the Large/Mid Cap
Value Fund.
FOR [_] AGAINST [_] ABSTAIN [_]
PLEASE DO NOT FORGET TO SIGN AND DATE THE REVERSE SIDE OF THIS CARD.
2
JOHN HANCOCK VARIABLE LIFE INSURANCE COMPANY
JOHN HANCOCK LIFE INSURANCE COMPANY
VOTE THIS CARD TODAY!
A PROMPT RESPONSE WILL SAVE THE FUND
THE EXPENSE OF ADDITIONAL MAILING
AGGRESSIVE BALANCED FUND
A Series of John Hancock Variable Series Trust I
These voting instructions will be used by the insurance companies in connection
with a proxy solicitation by the trustees of the Fund.
The undersigned, revoking previous instructions, hereby instructs the
above-referenced insurance companies to vote all the shares of beneficial
interest of the Aggressive Balanced Fund attributed to the undersigned at the
Special Meeting of Shareholders (the "Meeting") of the Fund to be held at 197
Clarendon Street, Boston, Massachusetts, on Wednesday, December 5, 2001 at 11:00
a.m., Eastern Time, and at any adjournment(s) of the Meeting. Receipt of the
Proxy Statement dated __________, 2001 is hereby acknowledged. If not revoked,
this card shall be voted at the Meeting, as specified on the reverse side.
PLEASE SIGN, DATE AND RETURN
PROMPTLY IN ENCLOSED ENVELOPE
Date __________________________, 2001
NOTE: Signature(s) should agree with the
name(s) printed hereon. When signing as
attorney, executor, administrator,
trustee or guardian, please give your
full name as such. If a corporation,
please sign in full corporate name by
president or other authorized officer. If
a partnership, please sign in partnership
name by authorized person.
JOHN HANCOCK VARIABLE LIFE INSURANCE COMPANY
JOHN HANCOCK LIFE INSURANCE COMPANY
VOTE THIS CARD TODAY!
A PROMPT RESPONSE WILL SAVE THE FUND
THE EXPENSE OF ADDITIONAL MAILING
Aggressive Balanced Fund
Special Meeting of Shareholders to Be Held on
December 5, 2001
Indicate your voting instructions below by filing in the appropriate boxes using
blue or black ink or dark pencil.
If this voting instruction card is properly executed, shares attributable to
your variable annuity contract or variable life insurance policy will be voted
in the manner you direct below. If this card is executed, but you give no
direction, the shares will be voted for the proposal. They will be voted in the
discretion of the insurance company upon any other business that may properly
come before the meeting, or any adjournment(s) thereof.
Proposal: To combine the Aggressive Balanced Fund with the Managed Fund.
FOR [_] AGAINST [_] ABSTAIN [_]
PLEASE DO NOT FORGET TO SIGN AND DATE THE REVERSE SIDE OF THIS CARD.
2
JOHN HANCOCK VARIABLE LIFE INSURANCE COMPANY
JOHN HANCOCK LIFE INSURANCE COMPANY
VOTE THIS CARD TODAY!
A PROMPT RESPONSE WILL SAVE THE FUND
THE EXPENSE OF ADDITIONAL MAILING
MID CAP BLEND FUND
A Series of John Hancock Variable Series Trust I
These voting instructions will be used by the insurance companies in connection
with a proxy solicitation by the trustees of the Fund.
The undersigned, revoking previous instructions, hereby instructs the
above-referenced insurance companies to vote all the shares of beneficial
interest of the Mid Cap Blend Fund attributed to the undersigned at the Special
Meeting of Shareholders (the "Meeting") of the Fund to be held at 197 Clarendon
Street, Boston, Massachusetts, on Wednesday, December 5, 2001 at 11:00 a.m.,
Eastern Time, and at any adjournment(s) of the Meeting. Receipt of the Proxy
Statement dated __________, 2001 is hereby acknowledged. If not revoked, this
card shall be voted at the Meeting, as specified on the reverse side.
PLEASE SIGN, DATE AND RETURN
PROMPTLY IN ENCLOSED ENVELOPE
Date __________________________, 2001
NOTE: Signature(s) should agree with the name(s) printed
hereon. When signing as attorney, executor, administrator,
trustee or guardian, please give your full name as such. If
a corporation, please sign in full corporate name by
president or other authorized officer. If a partnership,
please sign in partnership name by authorized person.
JOHN HANCOCK VARIABLE LIFE INSURANCE COMPANY
JOHN HANCOCK LIFE INSURANCE COMPANY
VOTE THIS CARD TODAY!
A PROMPT RESPONSE WILL SAVE THE FUND
THE EXPENSE OF ADDITIONAL MAILING
Mid Cap Blend Fund
Special Meeting of Shareholders to Be Held on
December 5, 2001
Indicate your voting instructions below by filing in the appropriate boxes using
blue or black ink or dark pencil.
If this voting instruction card is properly executed, shares attributable to
your variable annuity contract or variable life insurance policy will be voted
in the manner you direct below. If this card is executed, but you give no
direction, the shares will be voted for the proposal. They will be voted in the
discretion of the insurance company upon any other business that may properly
come before the meeting, or any adjournment(s) thereof.
Proposal: To combine the Mid Cap Blend Fund with the Growth & Income Fund.
FOR [_] AGAINST [_] ABSTAIN [_]
PLEASE DO NOT FORGET TO SIGN AND DATE THE REVERSE SIDE OF THIS CARD.
2
PART C
OTHER INFORMATION
Item 15. Indemnification
In response to this item and the requirements of Rule 484 under the
Securities Act of 1933, the registrant hereby incorporates by reference its
response to item 25 in Post-Effective Amendment No. 31 to its Form N-1A
registration statement (File No. 33-2081) filed on May 1, 2001.
Item 16. Exhibits*
(1) Declaration of Trust of John Hancock Variable Series Trust I, dated
February 21, 1988, incorporated by reference from Pre-effective Amendment No. 2
to the Trust's Form N-14 registration statement (File No. 333-47686), filed on
December 6, 2000.
(2) By-Laws of John Hancock Variable Series Trust I, amended and restated as
of September 27, 2000, incorporated by reference from Pre-effective Amendment
No. 2 to the Trust's Form N-14 registration statement (File No. 333-47686),
filed on December 6, 2000.
(3) Not Applicable.
(4) Form of Plan and Agreement of Reorganization (filed herewith).
(5) Not Applicable.
(6)(a) Investment Management Agreement dated April 12, 1998 between, John
Hancock and the Trust, relating to the Managed, Growth & Income and Active Bond
Funds, incorporated by reference from Post-Effective Amendment No. 4 to the
Trust's Form N-1A registration statement (File No. 33-2081), filed in April
1989.
(6)(b) Amendment dated November 1, 2000 to Investment Management dated April 12,
1988, relating to the Managed, Growth & Income and Active Bond Funds (filed
herewith).
(6)(c) Sub-Investment Management Agreements dated November 1, 2000, among John
Hancock, the Trust and Independence Investments, LLC (formerly named
Independence
-------------------------
* Because certain Funds of the Trust have changed their names at various
times, certain of the documents referenced in this exhibit list may refer to
those Funds by their name that was used at the time the document in question was
prepared. For example, the Active Bond Fund was formerly known as the "Sovereign
Bond Fund" and, before that, the "Bond Fund," and the Growth & Income Fund was
formerly known as the "Stock Fund." Also, at some times in the past, the Funds
have referred to themselves as "Portfolios," rather than "Funds,"
Investment Associates, Inc.) pertaining to the Growth & Income and Managed Funds
(filed herewith).
(6)(d) Sub-Investment Management Agreement dated November 1, 2000, between John
Hancock, the Trust and Capital Guardian Trust Company, relating to the Managed
Portfolio (filed herewith).
(6)(e) Sub-Investment Management Agreement dated November 1, 2000, between John
Hancock, the Trust and Putnam Investment Management, LLC relating to the Growth
& Income Portfolio (filed herewith).
(6)(f) Amendment dated June 21, 2001 to the Sub-Investment Management Agreement
dated November 1, 2000 among John Hancock, the Trust, and Putnam Investment
Management, LLC, relating to the Growth & Income Fund, incorporated by reference
from the Trust's Form N-14 registration statement (File No. 333-69440), filed on
September 14, 2001.
(6)(g) Sub-Investment Management Agreement between John Hancock, the Trust and
John Hancock Advisers, Inc., relating to the Active Bond Fund, incorporated by
reference from Post-Effective Amendment No. 11 to the Trust's Form N-1A
registration statement (File No. 33-2081), filed on April 29, 1995.
(6)(h) Amendment dated November 1, 2000 to the Sub-Investment Management
Agreement dated May 1, 1995 among John Hancock, the Trust and John Hancock
Advisers, Inc., pertaining to the Active Bond Fund (filed herewith).
(6)(i) Investment Management Agreement dated July 28, 1999, between John Hancock
and the Trust, relating to the Large Cap Aggressive Growth, Fundamental Growth,
International Equity, Aggressive Balanced, Large Cap Vale CORE/SM/, Large/Mid
Cap Value, Mid Cap Blend and Small Cap Value Funds, incorporated by reference
from Post-Effective Amendment No. 23 to this the Trust's Form N-1A registration
statement (File No. 33-2081), filed on August 9, 1999.
(6)(j) Sub-Investment Management Agreement dated August 17, 1999, among John
Hancock, the Trust, and Goldman Sachs Asset Management, relating to the Large
Cap Value CORE/SM/ Fund, incorporated by reference from Post-Effective Amendment
No. 23 to the Trust's Form N-1A registration statement (File No. 33-2081), filed
August 9, 1999.
(6)(k) Amendment dated June 21, 2001 to the Sub-Investment Management Agreement
among John Hancock, the Trust, and Goldman Sachs Asset Management, relating to
the Large Cap Value CORE/SM/ Fund, incorporated by reference from the Trust's
Form N-14 registration statement (File No. 333-69440), filed September 14, 2001.
(7) Underwriting and Indemnity Agreement among John Hancock Variable Series
Trust I, Signator Investors, Inc. (formerly named John Hancock Distributors,
Inc.), and John Hancock, incorporated by reference to Post-Effective Amendment
No. 14 to the Trust's Form N-1A registration statement (File No. 33-2081), filed
on February 28, 1997.
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(8) Not Applicable.
(9)(a) Custodian Agreement Between John Hancock Variable Series Trust I and
State Street Bank and Trust Company, dated January 30, 1995, relating to the
International Equity Index and Small/Mid Cap CORE/SM/ Fund, incorporated by
reference from Pre-effective Amendment No. 2 to the Trust's Form N-14
registration statement (File No. 333-47686), filed on December 6, 2000.
(9)(b) Amendment dated as of March 18, 1996 to Custodian Agreement dated January
30, 1995, between John Hancock Variable Series Trust I and State Street Bank and
Trust Company, expanding the Agreement to cover certain additional Funds
(including the Managed and Large/Mid Cap Value Funds), incorporated by reference
from Post-Effective Amendment No. 13 to the Trust's Form N-1A registration
statement (File No. 33-2081), filed on May 1, 1996.
(9)(c) Amendment dated as of April 14, 1998 to Custodian Agreement dated January
30, 1995, between John Hancock Variable Series Trust I and State Street Bank and
Trust Company, expanding the agreement to cover additional Funds (including the
Active Bond and Growth & Income Funds), incorporated by reference from
Post-Effective Amendment No. 19 to the Trust's Form N-1A registration statement
(File No. 33-2081), filed on May 1, 1998.
(9)(d) Amendment dated as of December 18, 1998 to Custodian Agreement dated
January 30, 1995, between John Hancock Variable Series Trust I and State Street
Bank and Trust Company, addressing "eligible foreign custodians" within the
meaning of Rule 17f-5, incorporated by reference from Post-Effective Amendment
No. 24 to the Trust's Form N-1A registration statement (File No. 33-2081), filed
on April 6, 2000.
(9)(e) Amendment dated as of July 28, 1999 to Custodian Agreement dated January
30, 1995, between John Hancock Variable Series Trust I and State Street Bank and
Trust Company, expanding the agreement to cover additional Funds (which included
the Large Cap Value CORE/SM/ Fund), incorporated by reference from Post-
Effective Amendment No. 23 to the Trust's Form N-1A registration statement (File
No. 33-2081), filed on August 9, 1999.
(9)(f) Amendment dated as of December 21, 2000 to Custodian Agreement dated
January 30, 1995, between John Hancock Variable Series Trust I and State Street
Bank and Trust Company, to reflect new names and new sub-advisers for multiple
Funds (including the Large/Mid Cap Value Fund), incorporated by reference to
Post-Effective Amendment No. 30 to the Trust's Form N-1A registration statement
(File No. 33-2081), filed on February 21, 2001.
(10) Not Applicable.
(11) Opinion of Counsel as to Legality of Securities (filed herewith).
(12) Included in Exhibit (4).
(13) Not Applicable.
C-3
(14) Consent of Independent Public Accountants to the incorporation by
reference of their opinion into the Statement of Additional Information (Filed
herewith).
(15) Not Applicable.
(16) Powers of Attorney for Elizabeth G. Cook, Kathleen F. Driscoll, Diane C.
Kessler, Michele G. Van Leer, Hassell H. McClellan, and Robert F. Verdonck,
incorporated by reference from the Trust's Form N-14 registration statement
(File No. 333-69440), filed on September 14, 2001.
(17) Code of Ethics, adopted by John Hancock Variable Series Trust I, its
Investment Adviser and Principal Underwriter (as revised July 2001),
incorporated by reference to Form N-14 registration statement of the Trust (File
No. 333-69440), filed on September 14, 2001.
(18) Not Applicable.
Item 17. Undertakings
(1) The undersigned Registrant agrees that prior to any public reoffering of
the securities registered through the use of a prospectus which is a part of
this registration statement by any person or party who is deemed to be an
underwriter within the meaning of Rule 145(c) of the Securities Act of 1933, the
reoffering prospectus will contain the information called for by the applicable
registration form for reofferings by persons who may be deemed underwriters, in
addition to the information called for by the other items of the applicable
form.
(2) The undersigned Registrant agrees that every prospectus that is filed
under paragraph (1) above will be filed as a part of an amendment to this
registration statement and will not be used until the amendment is effective,
and that, in determining any liability under the Securities Act of 1933, each
post-effective amendment shall be deemed to be a new registration statement for
the securities offered therein, and the offering of the securities at that time
shall be deemed to be the initial bona fide offering of them.
C-4
SIGNATURES
As required by the Securities Act of 1933, this registration statement has been
signed on behalf of the Registrant, in the City of Boston and Commonwealth of
Massachusetts, on the 15th day of October, 2001.
JOHN HANCOCK VARIABLE SERIES TRUST I
By: /s/ Michele Van Leer
--------------------------------------
Name: Michele G. Van Leer
Title: Chairman of the Board of Trustees
As required by the Securities Act of 1933, this registration statement has been
signed by the following persons in the capacities and on the date indicated.
SIGNATURE DATE
By: /s/ Raymond F. Skiba October 15, 2001
--------------------
Raymond F. Skiba
Treasurer (Principal Financial
and Accounting Officer)
By: /s/ Michele Van Leer October 15, 2001
--------------------
Michele G. Van Leer
Chairman of the Board of Trustees
For herself and as attorney-in-fact for:
Michele G. Van Leer, Chairman
Elizabeth G. Cook, Trustee
Diane C. Kessler, Trustee
Robert F. Verdonck, Trustee
Hassell H. McClellan, Trustee
C-5