June 24, 2004
EDGAR
United States Securities and
Exchange Commission
Judiciary Plaza
450 Fifth Street, N.W.
Washington, D.C. 20549
Re: Form N-CSR
John Hancock Equity Trust (the "Registrant") on behalf of:
John Hancock Growth Trends Fund
File Nos. 2-92548; 811-4079
Ladies and Gentlemen:
Enclosed herewith for filing pursuant to the Investment Company Act of 1940
and the Securities Exchange Act of 1934 is the Registrants Form N-CSR filing
for the period ending April 30, 2004.
If you have any questions or comments regarding this filing, please contact
the undersigned at (617) 375-1722.
Sincerely,
/s/Brian E. Langenfeld
Brian E. Langenfeld
Attorney and Assistant Secretary
ITEM 1. REPORT TO SHAREHOLDERS.
JOHN HANCOCK
Growth Trends Fund
4.30.2004
Semiannual Report
[A 2" x 1" John Hancock (Signature)/John Hancock Funds logo in lower,
center middle of page. A tag line below reads "JOHN HANCOCK FUNDS."]
[A photo of James A. Shepherdson, Chairman President and Chief Executive
Officer, flush left next to first paragraph.]
WELCOME
Table of contents
Your fund at a glance
page 1
Managers' report
page 2
A look at performance
page 6
Growth of $10,000
page 7
Fund's investments
page 8
Financial statements
page 12
For your information
page 25
To Our Shareholders,
I am pleased to be writing to you as Chairman, President and Chief
Executive Officer of John Hancock Funds, LLC.
As you may know, John Hancock Financial Services, Inc. -- the parent
company of John Hancock Funds -- was acquired by Manulife Financial
Corporation on April 28, 2004. The merger combines two exceptionally strong
companies into a single, integrated, global market leader whose scale and
capital will create an industry pacesetter strengthening our company's
leadership in markets around the world.
Although this change has no impact on the mutual funds you have invested
in, it did bring with it some changes in the executive-level management of
John Hancock Funds. Specifically, Maureen Ford Goldfarb has decided to step
down as chairman, president and chief executive officer in order to pursue
personal interests. Since her appointment in January 2000, Maureen has
provided John Hancock Funds with strong leadership and steady guidance
through several years of extremely turbulent market and industry
conditions.
Effective May 12, 2004, I have also been appointed by your Board of
Trustees to the roles of Trustee, President and Chief Executive Officer of
your fund. I have been in the investment business for over 25 years, most
recently as President of Retirement Services at John Hancock Financial
Services. In that role, my responsibilities included developing and
directing the sale of John Hancock's variable and fixed annuity businesses
through a diverse distribution network of banks and broker-dealers --
including wirehouses, regional brokerage houses and financial planners.
Prior to joining John Hancock, I served as Co-Chief Executive Officer of
MetLife Investors Group, a subsidiary of MetLife, Inc. In that capacity my
responsibilities included the design, manufacture and distribution of
MetLife's annuity and life insurance products sold through third-party
channels.
Although there has been a change in executive-level management, the one
thing that never wavers is John Hancock Funds' commitment to placing the
needs of our shareholders above all else. We are all dedicated to the task
of working with you and your financial advisors to help you reach your
long-term financial goals.
Sincerely,
/S/ JAMES A. SHEPHERDSON
James A. Shepherdson,
Chief Executive Officer
This commentary reflects the CEO's views as of April 30, 2004. They are
subject to change at any time.
YOUR FUND
AT A GLANCE
The Fund seeks
long-term growth
of capital by
investing approxi-
mately one-third
of its assets in
equity securities
of U.S. and foreign
companies in each
of the following
sectors: financial
services, health care
and technology.
Over the last six months
* The stock market advanced on strong economic and corporate earnings news.
* Technology was the worst-performing sector, retreating after strong 2003
advances, and financials underperformed on interest-rate hike fears.
* Health-care stocks produced strong results and were the Fund's
best-performing sector, in part due to the Fund's large stake in biotech
stocks.
[Bar chart with heading "John Hancock Growth Trends Fund." Under the
heading is a note that reads "Fund performance for the six months ended
April 30, 2004." The chart is scaled in increments of 2% with 0% at the
bottom and 4% at the top. The first bar represents the 3.09% total return
for Class A. The second bar represents the 2.59% total return for Class B.
The third bar represents the 2.59% total return for Class C. A note below
the chart reads "Total returns for the Fund are at net asset value with all
distributions reinvested."]
Top holdings
Financial Services
8.2% Bank of America
8.0% Citigroup
7.8% Wells Fargo
7.7% State Street
7.1% American International Group
Health Care
6.2% Neurocrine Biosciences
6.0% WebMD
4.9% Gilead Sciences
4.2% Abbott Laboratories
4.0% Pfizer
Technology
12.5% Microsoft
10.4% IBM
7.3% QUALCOMM
7.0% Cisco Systems
4.7% Intel
As a percentage of Financial Services, Health Care and Technology net
assets, respectively, on 4-30-04.
1
MANAGERS'
REPORT
JOHN HANCOCK
Growth Trends Fund
After a strong run in 2003, the stock market turned choppy during the first
few months of 2004, as a dynamic tension emerged between investors focused
on positive earnings growth and those concerned about the prospect of
rising interest rates. Nonetheless, the market posted a solid return in the
six-month period ending April 30, 2004, with the Standard & Poor's 500
Index advancing 6.27%. In this period, the Fund's Class A, Class B and
Class C shares posted total returns of 3.09%, 2.59% and 2.59%,
respectively, at net asset value. That compared with the 5.73% return of
the average multi-cap core fund, according to Lipper, Inc.1 Keep in mind
that your net asset value return will differ from the Fund's performance if
you were not invested in the Fund for the entire period and did not
reinvest all distributions. For historical performance information, please
see pages six and seven.
"Health-care stocks were
standouts among the
Fund's three sectors."
Health-care stocks were standouts among the Fund's three sectors, while
technology stocks retreated in this period after strong gains in 2003, and
financials underperformed the broad market on fears that rising interest
rates would stunt earnings growth.
FINANCIALS By James K. Schmidt, CFA,
John Hancock Advisers, LLC
Financial stocks produced positive results over the last six months, but
growing fears that an interest-rate hike was increasingly certain and
increasingly near caused financial companies to falter. Rising rate fears
hit banks the hardest, and they lagged behind the sector. But banks that
were involved in mergers stood out, and they were among the portfolio's top
performers. Both FleetBoston and Bank of America served us well when their
stocks rose after an initial shakeout period following the merger
announcement in late October 2003. J.P. Morgan Chase's stock rose with the
announcement that it was buying Bank One Corp. Some of our biggest
disappointments also came from the bank group, however. Earnings
disappointments hurt the stocks of
2
State Street and Fifth Third Bancorp., while M&T Bank Corp. fell on
reduced mortgage-related activity and the challenging mortgage
environment.
After several tough years, many insurance companies rebounded in the
period. Reinsurers RenaissanceRe and Transatlantic Holdings served us well,
as did our stock selection among life insurers such as Prudential Financial
and Hartford Financial. They benefited from the market's rebound, which
boosted sales of their variable annuity products. Property and casualty
giant American International Group also rebounded from previous troubles.
Asset managers that avoided the mutual fund scandals also did well, such as
Legg Mason. Investment bankers had solid earnings growth, but the group's
results were mixed, as the market remained wary about interest rates and
volatile earnings. Our large position in Goldman Sachs helped performance.
"...financials underper-
formed the broad market
on fears that rising
interest rates would
stunt earnings growth."
We remain optimistic about the prospects for financial stocks and will
continue to favor those companies with leverage to an economic and market
recovery, including brokers, asset managers, financial processors and banks
with capital markets exposure.
HEALTH CARE By Jordan Schreiber, CFA,
Mercury Advisors
The health-care sector posted a solid gain during the period, outperforming
the broader market. Several health-care subsectors did surprisingly well
over the past six months, notably managed care and biotechnology. Even
pharmaceuticals, viewed as the most defensive health-care subsector,
outperformed the broader market, as investor concerns about potentially
onerous health-care legislation diminished and valuations reached
historically attractive levels.
Fund performance was helped by having a large presence in the biotechnology
subsector. Standouts in this area included Neurocrine Biosciences, Inc.,
which is developing a new drug for treating insomnia, a large unsatisfied
market, and Charles River Laboratories, a leader in providing animal models
for drug development. We were also helped by our holdings in Celgene Corp.,
3
whose drug Thalomid is a leading treatment for multiple myeloma, and
Abgenix Inc., which is a technology leader in developing fully human
antibodies against numerous diseases. The Fund also benefited from its
holdings in medical device and orthopedics companies such as Guidant
Corp. and Smith & Nephew PLC.
[Table at top left-hand side of page entitled "Top five industry groups."
The first listing is Medical 24%, the second is Computers 20%, the third
Medical -- drugs 13%, the fourth Banks -- United States 13% and the fifth
Insurance 8%.]
Disappointments during the period include generic drug maker Taro
Pharmaceuticals Inc., which had a surprise earnings shortfall, and Cubist
Pharmaceuticals, whose new highly-effective antibiotic is experiencing a
slower than expected sales ramp.
Looking ahead, valuations in the large-cap pharmaceutical sector have
become more attractive. Hospital admission trends appear to be improving
and bad debt concerns sparked by a slow economy are moderating, which could
offer opportunity for that subsector. We also believe biotechnology remains
a dynamic long-term growth area; however, we plan to remain diversified
within the health-care sector so as to minimize risk.
[Pie chart at middle of page with heading "Portfolio diversification As a
percentage of net assets on 4-30-04." The chart is divided into four
sections (from top to left): Medical 37%, Technology 32%, Financial 30% and
Short-term investments & other 1%.]
TECHNOLOGY By Anurag Pandit, CFA,
John Hancock Advisers, LLC
Technology was the only sector of the S&P 500 to decline during the past
six months. Concerns about relatively high valuations weighed on technology
stocks, and threats of terrorism and rising interest rates led many
investors to reduce the risk profile of their portfolios.
We focused on companies that would benefit the most from an increase in
technology spending. In particular, we emphasized software, storage and
communications equipment stocks over hardware and semiconductor names.
4
[Table at top of page entitled "SCORECARD." The header for the left column
is "INVESTMENT" and the header for the right column is "PERIOD'S
PERFORMANCE...AND WHAT'S BEHIND THE NUMBERS." The first listing is
Neurocrine Bioscience followed by an up arrow with the phrase "Developing
new insomnia drug." The second listing is Bank of America followed by an up
arrow with the phrase "Boosted by announced acquisition of FleetBoston."
The third listing is Intel followed by a down arrow with the phrase
"Lackluster 2004 outlook hurts stock."]
Our stock selection was most successful in the software and communications
equipment segments. The best performance contributor was Autodesk, which
makes the leading software for drafting and building design. Symantec, a
maker of computer security software, and Websense, which makes Internet
monitoring software, also posted strong results. Among communications
equipment stocks, wireless chipmaker QUALCOMM was the top performance
contributor. The company raised its dividend and earnings forecasts based
on higher-than-expected revenues. Cell phone manufacturer Motorola also
performed well, benefiting from the successful introduction of new
products.
"Technology was the only
sector of the S&P 500 to
decline during the past
six months."
Our stock selection fared less well in semiconductor stocks, which
detracted the most from performance. Intel posted negative results after
providing a lackluster 2004 outlook. The portfolio's semiconductor
equipment holdings Applied Materials and KLA-Tencor also suffered losses
during the period.
Despite the recent decline in technology stocks, we believe the outlook for
the sector is still positive. Further economic improvement, as evidenced by
the recent rebound in job growth, should convince corporations to loosen
their purse strings after several years of depressed technology spending.
This commentary reflects the views of the portfolio managers through the
end of the Fund's period discussed in this report. The managers' statements
reflect their own opinions. As such, they are in no way guarantees of
future events, and are not intended to be used as investment advice or a
recommendation regarding any specific security. They are also subject to
change at any time as market and other conditions warrant.
Sector investing is subject to greater risks than the market as a whole.
1 Figures from Lipper, Inc. include reinvested dividends and do not take
into account sales charges. Actual load-adjusted performance is lower.
5
A LOOK AT
PERFORMANCE
For the period ended
April 30, 2004
Class A Class B Class C
Inception date 9-22-00 9-22-00 9-22-00
Average annual returns with maximum sales charge (POP)
One year 16.63% 16.76% 19.45%
Since inception -15.71% -15.83% -15.35%
Cumulative total returns with maximum sales charge (POP)
Six months -2.07% -2.41% 0.66%
One year 16.63% 16.76% 19.45%
Since inception -45.97% -46.26% -45.15%
Performance figures assume all distributions are reinvested. Returns with
maximum sales charge reflect a sales charge on Class A shares of 5% and
Class C shares of 1%, and the applicable contingent deferred sales charge
(CDSC) on Class B and Class C shares. The Class B shares' CDSC declines
annually between years 1-6 according to the following schedule: 5, 4, 3,
3, 2, 1%. No sales charge will be assessed after the sixth year. Class C
shares held for less than one year are subject to a 1% CDSC. The return and
principal value of an investment in the Fund will fluctuate, so that
shares, when redeemed, may be worth more or less than the original cost.
The returns reflect past results and should not be considered indicative of
future performance. The performance table above and the chart on the next
page do not reflect the deduction of taxes that a shareholder would pay on
fund distributions or the redemption of fund shares.
The Fund's performance results reflect any applicable expense reductions,
without which the expenses would increase and results would have been less
favorable. These reductions can be terminated in the future. See the
prospectus for details.
6
GROWTH OF
$10,000
This chart shows what happened to a hypothetical $10,000 investment in
Class A shares for the period indicated. For comparison, we've shown the
same investment in the Standard & Poor's 500 Index.
Line chart with the heading "GROWTH OF $10,000." Within the chart are three
lines. The first line represents the Index and is equal to $8,083 as of
April 30, 2004. The second line represents the value of the hypothetical
$10,000 investment made in the John Hancock Growth Trends Fund, before
sales charge, and is equal to $5,690 as of April 30, 2004. The third line
represents the value of the same hypothetical investment made in the John
Hancock Growth Trends Fund, after sales charge, and is equal to $5,403 as
of April 30, 2004.
Cum Value Cum Value
of $10K of $10K S&P 500
Plot Date (No Load) (w/Load) Index
9-22-00 $10,000 $9,500 $10,000
9-30-00 10,000 9,497 9,472
10-31-00 9,540 9,060 9,432
1-31-01 8,670 8,234 9,041
4-30-01 7,390 7,018 8,294
5-31-01 7,310 6,942 8,349
7-31-01 6,842 6,497 8,066
10-31-01 5,880 5,584 7,083
1-31-02 6,261 5,945 7,581
4-30-02 5,810 5,517 7,247
5-31-02 5,519 5,242 7,193
7-31-02 4,598 4,366 6,160
10-31-02 4,498 4,271 6,013
1-31-03 4,367 4,148 5,836
4-30-03 4,638 4,404 6,282
5-31-03 5,008 4,756 6,613
7-31-03 5,269 5,004 6,816
10-31-03 5,519 5,242 7,264
1-31-04 5,940 5,641 7,854
4-30-04 5,690 5,403 8,083
Class B Class C 1
Period beginning 9-22-00 9-22-00
Without sales charge $5,540 $5,540
With maximum sales charge $5,374 $5,485
Index $8,083 $8,083
Assuming all distributions were reinvested for the period indicated, the
table above shows the value of a $10,000 investment in the Fund's Class B
and Class C shares, respectively, as of April 30, 2004. Performance of the
classes will vary based on the difference in sales charges paid by
shareholders investing in the different classes and the fee structure of
those classes.
Standard & Poor's 500 Index is an unmanaged index that includes 500 widely
traded common stocks.
It is not possible to invest directly in an index. Index figures do not
reflect sales charges and would be lower if they did.
1 No contingent deferred sales charge applicable.
7
FINANCIAL STATEMENTS
FUND'S
INVESTMENTS
Securities owned
by the Fund on
April 30, 2004
(unaudited)
This schedule is divided into two main categories: common stocks and
short-term investments. Common stocks are further broken down by industry
group. Short-term investments, which represent the Fund's cash position,
are listed last.
ISSUER SHARES VALUE
COMMON STOCKS 99.10% $196,864,224
(Cost $174,517,136)
Advertising 0.14% 278,012
DoubleClick, Inc.* 34,450 278,012
Banks -- United States 13.16% 26,134,345
Bank of America Corp. 61,606 4,958,667
Charter One Financial, Inc. 42,000 1,401,540
Fifth Third Bancorp 78,000 4,185,480
M&T Bank Corp. 10,000 850,000
SouthTrust Corp. 128,000 3,978,240
State Street Corp. 96,000 4,684,800
Wachovia Corp. 30,000 1,372,500
Wells Fargo & Co. 83,300 4,703,118
Broker Services 2.41% 4,794,350
Goldman Sachs Group, Inc. (The) 34,000 3,289,500
Lehman Brothers Holdings, Inc. 10,000 734,000
Morgan Stanley 15,000 770,850
Computers 20.36% 40,432,787
Autodesk, Inc. 82,650 2,768,775
BARRA, Inc. 35,750 1,460,387
Cisco Systems, Inc.* 215,450 4,496,441
Citrix Systems, Inc.* + 93,050 1,772,602
Dell, Inc.* 44,700 1,551,537
Digital Insight Corp.* + 89,050 1,718,665
eBay, Inc.* + 21,600 1,724,112
EMC Corp.* 182,986 2,042,124
Hewlett-Packard Co. 52,715 1,038,485
International Business Machines Corp. 75,995 6,700,479
Lexmark International, Inc.* 21,958 1,986,321
Macromedia, Inc.* 43,700 900,220
McDATA Corp. (Class A) * 59,600 317,668
Microsoft Corp. 311,650 8,093,551
Symantec Corp.* + 34,000 1,531,700
See notes to
financial statements.
8
ISSUER SHARES VALUE
Computers (continued)
VeriSign, Inc.* 72,650 $1,171,845
Websense, Inc.* + 39,250 1,157,875
Electronics 5.58% 11,083,736
Applied Materials, Inc.* 105,950 1,931,468
Intel Corp. 117,800 3,030,994
KLA-Tencor Corp.* + 26,550 1,106,339
RF Micro Devices, Inc.* + 59,200 435,712
Taiwan Semiconductor Manufacturing Co. Ltd.
American Depositary Receipts (ADR) (Taiwan) *+ 243,610 2,321,603
Texas Instruments, Inc. 89,945 2,257,620
Finance 6.61% 13,137,861
American Express Co. 84,000 4,111,800
Citigroup, Inc. 101,000 4,857,090
First Data Corp. 32,850 1,491,061
J.P. Morgan Chase & Co. 40,000 1,504,000
Legg Mason, Inc. 11,000 1,012,660
National Financial Partners Corp.* 5,160 161,250
Insurance 7.53% 14,959,037
American International Group, Inc. 60,000 4,299,000
Benfield Group Plc (United Kingdom) 16,035 74,786
Hartford Financial Services Group, Inc. (The) 7,200 439,776
Marsh & McLennan Cos., Inc. 93,250 4,205,575
PartnerRe Ltd. (Bermuda) 50,000 2,865,000
RenaissanceRe Holdings Ltd. (Bermuda) 16,000 843,040
Scottish Re Group Ltd. (Cayman Islands) 32,000 700,160
Transatlantic Holdings, Inc. 9,000 805,500
Willis Group Holdings Ltd. (Bermuda) 20,000 726,200
Leisure 0.18% 364,228
Imax Corp. (Canada) *+ 73,300 364,228
Media 0.66% 1,310,994
Macrovision Corp.* 77,850 1,310,994
Medical 23.75% 47,181,280
Abgenix, Inc.* 150,000 2,440,500
Aetna, Inc. 30,000 2,482,500
AmerisourceBergen Corp. 45,000 2,605,050
Amgen, Inc.* 30,000 1,688,100
Anthem, Inc.* 15,000 1,328,700
Baxter International, Inc. 75,000 2,373,750
Boston Scientific Corp.* 45,000 1,853,550
Cell Genesys, Inc.* 110,000 1,215,500
Cerner Corp.* 40,000 1,712,800
Charles River Laboratories International, Inc.* 60,000 2,760,000
Gilead Sciences, Inc.* 60,000 3,649,800
See notes to
financial statements.
9
ISSUER SHARES VALUE
Medical (continued)
Guidant Corp. 45,000 $2,835,450
HCA, Inc. 55,000 2,234,650
Integra LifeSciences Holdings* 55,000 1,760,000
Lexicon Genetics, Inc.* 296,200 2,091,172
Manor Care, Inc.* 75,000 2,433,000
Medarex, Inc.* 101,900 971,107
Medtronic, Inc. 45,000 2,270,700
Millennium Pharmaceuticals, Inc.* 90,000 1,349,100
Smith & Nephew Plc (United Kingdom) 151,736 1,540,501
Triad Hospitals, Inc.* 35,000 1,190,350
WebMD Corp.* 500,000 4,395,000
Medical -- Drugs 13.32% 26,464,029
Abbott Laboratories 70,000 3,081,400
Celgene Corp.* 55,000 2,842,950
Cubist Pharmaceuticals, Inc.* 170,000 1,689,800
Cypress Bioscience Inc.* 35,600 517,268
Impax Laboratories, Inc.* 70,000 1,456,700
Neurocrine Biosciences, Inc.* 70,000 4,594,100
NPS Pharmaceuticals, Inc.* 80,000 2,004,000
Pfizer, Inc. 83,400 2,982,384
Rigel Pharmaceuticals, Inc.* 100,000 2,121,000
Roche Holding AG (Switzerland) 12,000 1,258,677
Shire Pharmaceuticals Group Plc (ADR) (United Kingdom)* 85,000 2,358,750
Taro Pharmaceutical Industries Ltd. (Israel)* 36,000 1,557,000
Mortgage Banking 0.69% 1,374,400
Fannie Mae 20,000 1,374,400
Telecommunications 4.71% 9,349,165
American Tower Corp. (Class A)* + 102,400 1,274,880
Andrew Corp.* 38,850 658,508
Motorola, Inc. 149,659 2,731,277
QUALCOMM, Inc.* + 75,000 4,684,500
See notes to
financial statements.
10
INTEREST PAR VALUE
ISSUER, DESCRIPTION, MATURITY DATE RATE (000s OMITTED) VALUE
SHORT-TERM INVESTMENTS 9.20% $18,285,211
(Cost $18,285,211)
Joint Repurchase Agreement 1.25%
Investment in a joint repurchase agreement
transaction with Barclays Capital, Inc. --
Dated 04-30-04, due 05-03-04 (Secured by
U.S. Treasury Inflation Indexed Bond, 3.875%
due 04-15-29, and U.S. Treasury Inflation
Indexed Note, 3.000% due 07-15-12) 0.93% $2,484 2,484,000
SHARES
Cash Equivalents 7.95%
AIM Cash Investment Trust ** 15,801,211 15,801,211
TOTAL INVESTMENTS 108.30% $215,149,435
OTHER ASSETS AND LIABILITIES, NET (8.30%) ($16,488,426)
TOTAL NET ASSETS 100.00% $198,661,009
* Non-income-producing security.
+ All or a portion of this security is on loan as of April 30, 2004
** Represents investment of securities lending collateral.
Parenthetical disclosure of a foreign country in the security description
represents country of a foreign issuer.
The percentage shown for each investment category is the total value of
that category as a percentage of the net assets of the Fund.
See notes to
financial statements.
11
FINANCIAL STATEMENTS
ASSETS AND
LIABILITIES
April 30, 2004
(unaudited)
This Statement
of Assets and
Liabilities is the
Fund's balance
sheet. It shows
the value of
what the Fund
owns, is due
and owes. You'll
also find the net
asset value and the
maximum
offering price
per share.
ASSETS
Investments at value (cost $192,802,347)
including $15,002,168 of securities loaned $215,149,435
Receivable for investments sold 1,164,481
Receivable for shares sold 44,545
Dividends and interest receivable 159,824
Other assets 8,611
Total assets 216,526,896
LIABILITIES
Due to custodian 427,790
Payable for investments purchased 1,069,587
Payable for shares repurchased 217,463
Payable for securities on loan 15,801,211
Payable to affiliates
Management fees 170,458
Distribution and service fees 12,825
Other 107,432
Other payables and accrued expenses 59,121
Total liabilities 17,865,887
NET ASSETS
Capital paid-in 401,902,521
Accumulated net realized loss on investments
and foreign currency transactions (224,398,403)
Net unrealized appreciation of investments and
translation of assets and liabilities in foreign currencies 22,348,108
Accumulated net investment loss (1,191,217)
Net assets $198,661,009
NET ASSET VALUE PER SHARE
Based on net asset values and shares outstanding
Class A ($64,533,190 [DIV] 11,355,901 shares) $5.68
Class B ($97,809,538 [DIV] 17,643,750 shares) $5.54
Class C ($36,318,281 [DIV] 6,551,457 shares) $5.54
MAXIMUM OFFERING PRICE PER SHARE
Class A 1 ($5.68 [DIV] 95%) $5.98
Class C ($5.54 [DIV] 99%) $5.60
1 On single retail sales of less than $50,000. On sales of $50,000 or more
and on group sales the offering price is reduced.
See notes to
financial statements.
12
FINANCIAL STATEMENTS
OPERATIONS
For the period ended
April 30, 2004
(unaudited) 1
This Statement
of Operations
summarizes the
Fund's investment
income earned
and expenses
incurred in oper-
ating the Fund.
It also shows net
gains (losses) for
the period stated.
INVESTMENT INCOME
Dividends (net of foreign withholding taxes of $3,399) $1,001,766
Securities lending 45,841
Interest 21,288
Total investment income 1,068,895
EXPENSES
Investment management fees 1,063,249
Class A distribution and service fees 103,107
Class B distribution and service fees 521,319
Class C distribution and service fees 198,240
Transfer agent fees 561,488
Custodian fees 47,702
Accounting and legal services fees 31,897
Registration and filing fees 16,588
Printing 15,681
Professional fees 12,253
Miscellaneous 8,363
Trustees' fees 5,627
Interest 4,876
Securities lending fees 1,124
Total expenses 2,591,514
Less expense reductions (333,463)
Net expenses 2,258,051
Net investment loss (1,189,156)
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized loss on
Investments (96,652)
Foreign currency transactions (2,407)
Change in net unrealized appreciation (depreciation) of
Investments 7,783,701
Translation of assets and liabilities in foreign currencies 420
Net realized and unrealized gain 7,685,062
Increase in net assets from operations $6,495,906
1 Semiannual period from 11-1-03 through 4-30-04.
See notes to
financial statements.
13
FINANCIAL STATEMENTS
CHANGES IN
NET ASSETS
These Statements
of Changes in
Net Assets show
how the value
of the Fund's
net assets has
changed during
the last two
periods. The dif-
ference reflects
earnings less
expenses, any
investment gains
and losses,
distributions, if
any, paid to
shareholders and
any increase or
decrease in
money share-
holders invested
in the Fund.
YEAR PERIOD
ENDED ENDED
10-31-03 4-30-04 1
INCREASE (DECREASE) IN NET ASSETS
From operations
Net investment loss ($2,264,556) ($1,189,156)
Net realized loss (51,590,047) (99,059)
Change in net unrealized
appreciation (depreciation) 94,112,450 7,784,121
Increase in net assets
resulting from operations 40,257,847 6,495,906
From Fund share transactions (35,411,929) (21,099,446)
NET ASSETS
Beginning of period 208,418,631 213,264,549
End of period 2 $213,264,549 $198,661,009
1 Semiannual period from 11-1-03 through 4-30-04. Unaudited.
2 Accumulated net investment loss of $2,061 and $1,191,217, respectively.
See notes to
financial statements.
14
FINANCIAL HIGHLIGHTS
FINANCIAL
HIGHLIGHTS
CLASS A SHARES
The Financial Highlights show how the Fund's net asset value for a share
has changed since the end of the previous period.
PERIOD ENDED 10-31-00 1 10-31-01 10-31-02 10-31-03 4-30-04 2
PER SHARE OPERATING PERFORMANCE
Net asset value,
beginning of period $10.00 $9.54 $5.87 $4.49 $5.51
Net investment income (loss) 3 0.01 (0.05) (0.05) (0.03) (0.02)
Net realized and unrealized gain
(loss) on investments (0.47) (3.61) (1.33) 1.05 0.19
Total from
investment operations (0.46) (3.66) (1.38) 1.02 0.17
Less distributions
From net investment income -- (0.01) -- -- --
Net asset value,
end of period $9.54 $5.87 $4.49 $5.51 $5.68
Total return 4,5 (%) (4.60) 6 (38.37) (23.51) 22.72 3.09 6
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period
(in millions) $86 $99 $65 $69 $65
Ratio of expenses
to average net assets (%) 1.65 7 1.65 1.65 1.65 1.65 7
Ratio of adjusted expenses
to average net assets 8 (%) 1.75 7 1.85 1.88 2.02 1.96 7
Ratio of net investment income (loss)
to average net assets (%) 0.57 7 (0.70) (0.91) (0.64) (0.64)7
Portfolio turnover (%) 11 116 68 76 31
See notes to
financial statements.
15
FINANCIAL HIGHLIGHTS
CLASS B SHARES
PERIOD ENDED 10-31-00 1 10-31-01 10-31-02 10-31-03 4-30-04 2
PER SHARE OPERATING PERFORMANCE
Net asset value,
beginning of period $10.00 $9.54 $5.83 $4.42 $5.40
Net investment loss 3 -- 9 (0.10) (0.09) (0.06) (0.04)
Net realized and unrealized
gain (loss) on investments (0.46) (3.61) (1.32) 1.04 0.18
Total from
investment operations (0.46) (3.71) (1.41) 0.98 0.14
Net asset value,
end of period $9.54 $5.83 $4.42 $5.40 $5.54
Total return 4,5 (%) (4.60) 6 (38.89) (24.19) 22.17 2.59 6
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period
(in millions) $125 $161 $102 $104 $98
Ratio of expenses to
average net assets (%) 2.34 7 2.35 2.35 2.35 2.35 7
Ratio of adjusted expenses to
average net assets 8 (%) 2.44 7 2.55 2.58 2.72 2.66 7
Ratio of net investment loss to
average net assets (%) (0.13) 7 (1.40) (1.61) (1.34) (1.35) 7
Portfolio turnover (%) 11 116 68 76 31
See notes to
financial statements.
16
FINANCIAL HIGHLIGHTS
CLASS C SHARES
PERIOD ENDED 10-31-00 1 10-31-01 10-31-02 10-31-03 4-30-04 2
PER SHARE OPERATING PERFORMANCE
Net asset value,
beginning of period $10.00 $9.54 $5.83 $4.42 $5.40
Net investment loss 3 -- 9 (0.10) (0.09) (0.06) (0.04)
Net realized and unrealized
gain (loss) on investments (0.46) (3.61) (1.32) 1.04 0.18
Total from
investment operations (0.46) (3.71) (1.41) 0.98 0.14
Net asset value,
end of period $9.54 $5.83 $4.42 $5.40 $5.54
Total return 4,5 (%) (4.60) 6 (38.89) (24.19) 22.17 2.59 6
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period
(in millions) $53 $69 $42 $41 $36
Ratio of expenses
to average net assets (%) 2.34 7 2.35 2.35 2.35 2.35 7
Ratio of adjusted expenses
to average net assets 8 (%) 2.44 7 2.55 2.58 2.72 2.66 7
Ratio of net investment loss
to average net assets (%) (0.13) 7 (1.40) (1.61) (1.34) (1.34) 7
Portfolio turnover (%) 11 116 68 76 31
1 Class A, Class B and Class C shares began operations on 9-22-00.
2 Semiannual period from 11-01-03 through 4-30-04. Unaudited.
3 Based on average of the shares outstanding.
4 Assumes dividend reinvestment and does not reflect the effect of sales
charges.
5 Total returns would have been lower had certain expenses not been reduced
during the periods shown.
6 Not annualized.
7 Annualized.
8 Does not take into consideration expense reductions during the periods
shown.
9 Less than $0.01 per share.
See notes to
financial statements.
17
NOTES TO
STATEMENTS
Unaudited
NOTE A
Accounting policies
John Hancock Growth Trends Fund (the "Fund") is a diversified series of
John Hancock Equity Trust, an open-end management investment company
registered under the Investment Company Act of 1940. The investment
objective of the Fund is to achieve long-term growth of capital. The Fund
will invest in a number of industry groups without concentration in any
particular industry.
The Trustees have authorized the issuance of multiple classes of shares of
the Fund, designated as Class A, Class B and Class C shares. The shares of
each class represent an interest in the same portfolio of investments of
the Fund and have equal rights as to voting, redemptions, dividends and
liquidation, except that certain expenses, subject to the approval of the
Trustees, may be applied differently to each class of shares in accordance
with current regulations of the Securities and Exchange Commission and the
Internal Revenue Service. Shareholders of a class that bears distribution
and service expenses under the terms of a distribution plan have exclusive
voting rights to that distribution plan.
Significant accounting policies
of the Fund are as follows:
Valuation of investments
Securities in the Fund's portfolio are valued on the basis of market
quotations, valuations provided by independent pricing services or if
quotations are not readily available, or the value has been materially
affected by events occurring after the closing of a foreign market, at fair
value as determined in good faith in accordance with procedures approved by
the Trustees. Short-term debt investments maturing within 60 days are
valued at amortized cost, which approximates market value. Investments in
AIM Cash Investment Trust are valued at their net asset value each business
day. All portfolio transactions initially expressed in terms of foreign
currencies have been translated into U.S. dollars as described in "Foreign
currency translation" below.
Joint repurchase agreement
Pursuant to an exemptive order issued by the Securities and Exchange
Commission, the Fund, along with other registered investment companies
having a management contract with John Hancock Advisers, LLC (the
"Adviser"), a wholly owned subsidiary of John Hancock Financial Services,
Inc., may participate in a joint repurchase agreement transaction.
Aggregate cash balances are invested in one or more large repurchase
agreements, whose underlying securities are obligations of the U.S.
government and/or its agencies. The Fund's custodian bank receives delivery
of the underlying securities for the joint account on the Fund's behalf.
The Adviser is responsible for ensuring that the agreement is fully
collateralized at all times.
18
Foreign 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 4:00 P.M., London time, on the date of any
determination of the net asset value of the Fund. Transactions affecting
statement of operations accounts and net realized gain (loss) on
investments are translated at the rates prevailing at the dates of the
transactions.
The Fund does 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 gain or loss
from investments.
Reported net realized foreign currency exchange gains or losses arise from
sales of foreign currency, currency gains or losses realized between the
trade and settlement dates on securities transactions, and the difference
between the amounts of dividends, interest and foreign withholding taxes
recorded on the Fund's books and the U.S. dollar equivalent of the amounts
actually received or paid. Net unrealized foreign currency 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
rates.
Investment transactions
Investment transactions are recorded as of the date of purchase, sale or
maturity. Net realized gains and losses on sales of investments are
determined on the identified cost basis. Capital gains realized on some
foreign securities are subject to foreign taxes, which are accrued as
applicable.
Class allocations
Income, common expenses and realized and unrealized gains (losses) are
determined at the fund level and allocated daily to each class of shares
based on the appropriate net asset value of the respective classes.
Distribution and service fees, if any, are calculated daily at the class
level based on the appropriate net asset value of each class and the
specific expense rate(s) applicable to each class.
Expenses
The majority of expenses are directly identifiable to an individual fund.
Expenses that are not readily identifiable to a specific fund are allocated
in such a manner as deemed equitable, taking into consideration, among
other things, the nature and type of expense and the relative sizes of the
funds.
Bank borrowings
The Fund is 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 Fund has entered into a
syndicated line of credit agreement with various banks. This agreement
enables the Fund to participate, with other funds managed by the Adviser,
in an unsecured line of credit with banks, which permits borrowings of up
to $250 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. The Fund had no borrowing activity under the
line of credit during the period ended April 30, 2004.
Securities lending
The Fund may lend securities to certain qualified brokers who pay the Fund
negotiated lender fees. The 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, the Fund 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 April 30, 2004, the Fund loaned securities having a market
value of $15,002,168
19
collateralized by cash in the amount of $15,801,211. The cash collateral
was invested in a short-term instrument. Securities lending expenses are
paid by the Fund to the Adviser.
Forward foreign currency
exchange contracts
The Fund may enter into forward foreign currency exchange contracts as a
hedge against the effect of fluctuations in currency exchange rates. A
forward foreign currency exchange contract involves an obligation to
purchase or sell a specific currency at a future date at a set price. The
aggregate principal amounts of the contracts are marked to market daily at
the applicable foreign currency exchange rates. Any resulting unrealized
gains and losses are included in the determination of the Fund's daily net
asset value. The Fund records realized gains and losses at the time the
forward foreign currency exchange contracts are closed out. Risks may arise
upon entering these contracts from the potential inability of
counterparties to meet the terms of the contracts and from unanticipated
movements in the value of a foreign currency relative to the U.S. dollar.
These contracts involve market or credit risk in excess of the unrealized
gain or loss reflected in the Fund's Statement of Assets and Liabilities.
The Fund may also purchase and sell forward contracts to facilitate the
settlement of foreign currency denominated portfolio transactions, under
which it intends to take delivery of the foreign currency. Such contracts
normally involve no market risk if they are offset by the currency amount
of the underlying transactions.
The Fund had no open forward foreign currency exchange contracts on April
30, 2004.
Federal income taxes
The Fund qualifies as a "regulated investment company" by complying with
the applicable provisions of the Internal Revenue Code and will not be
subject to federal income tax on taxable income that is distributed to
shareholders. Therefore, no federal income tax provision is required. For
federal income tax purposes, the Fund has $223,630,898 of a capital loss
carryforward available, to the extent provided by regulations, to offset
future net realized capital gains. To the extent that such carryforward is
used by the Fund, no capital gain distributions will be made. The loss
carryforward expires as follows: October 31, 2008 -- $307,599, October 31,
2009 -- $84,312,445, October 31, 2010 -- $87,616,374 and October 31, 2011
- -- $51,394,480.
Dividends, interest
and distributions
Dividend income on investment securities is recorded on the ex-dividend
date or, in the case of some foreign securities, on the date thereafter
when the Fund identifies the dividend. Interest income on investment
securities is recorded on the accrual basis. Foreign income may be subject
to foreign withholding taxes, which are accrued as applicable.
The Fund records distributions to shareholders from net investment income
and net realized gains on the ex-dividend date. Distributions paid by the
Fund with respect to each class of shares are calculated in the same
manner, at the same time and are in the same amount, except for the effect
of expenses that may be applied differently to each class.
Such distributions, on a tax basis, are determined in conformity with
income tax regulations, which may differ from accounting principles
generally accepted in the United States of America. Distributions in excess
of tax basis earnings and profits, if any, are reported in the Fund's
financial statements as a return of capital.
Use of estimates
The preparation of these financial statements, in accordance with
accounting principles generally accepted
20
in the United States of America, incorporates estimates made by
management in determining the reported amount of assets, liabilities,
revenues and expenses of the Fund. Actual results could differ from
these estimates.
NOTE B
Management fee and
transactions with
affiliates and others
The Fund has an investment management contract with the Adviser. Under the
investment management contract, the Fund pays a monthly management fee to
the Adviser at an annual rate of 1.00% of the Fund's average daily net
asset value. The Adviser has a subadvisory agreement with Mercury Advisors.
The Fund is not responsible for payment of the subadvisory fees.
The Adviser has agreed to limit the Fund's total expenses, excluding
distribution and service fees, to 1.35% of the Fund's average daily net
asset value, at least until February 28, 2005. Accordingly, the expense
reductions related to total expense limitation amounted to $306,267 for the
period ended April 30, 2004. The Adviser reserves the right to terminate
this limitation in the future.
The Fund has Distribution Plans with John Hancock Funds, LLC ("JH Funds"),
a wholly owned subsidiary of the Adviser. The Fund has adopted Distribution
Plans with respect to Class A, Class B and Class C, pursuant to Rule 12b-1
under the Investment Company Act of 1940, to reimburse JH Funds for the
services it provides as distributor of shares of the Fund. Accordingly, the
Fund makes monthly payments to JH Funds at an annual rate not to exceed
0.30% of Class A average daily net asset value and 1.00% of Class B and
Class C average daily net asset value. A maximum of 0.25% of such payments
may be service fees, as defined by the Conduct Rules of the National
Association of Securities Dealers. Under the Conduct Rules, curtailment of
a portion of the Fund's 12b-1 payments could occur under certain
circumstances.
Class A and Class C shares are assessed up-front sales charges. During the
period ended April 30, 2004, JH Funds received net up-front sales charges
of $87,378 with regard to sales of Class A shares. Of this amount, $13,385
was retained and used for printing prospectuses, advertising, sales
literature and other purposes, $48,032 was paid as sales commissions to
unrelated broker-dealers and $25,961 was paid as sales commissions to sales
personnel of Signator Investors, Inc. ("Signator Investors"), a related
broker-dealer. The Adviser's indirect parent, John Hancock Life Insurance
Company ("JHLICo"), is the indirect sole shareholder of Signator Investors.
During the period ended April 30, 2004, JH Funds received net up-front
sales charges of $6,557 with regard to sales of Class C shares. Of this
amount, $6,439 was paid as sales commissions to unrelated broker-dealers
and $118 was paid as sales commissions to sales personnel of Signator
Investors.
Class B shares that are redeemed within six years of purchase are subject
to a contingent deferred sales charge ("CDSC") at declining rates,
beginning at 5.00% of the lesser of the current market value at the time of
redemption or the original purchase cost of the shares being redeemed.
Class C shares that are redeemed within one year of purchase are subject to
a CDSC at a rate of 1.00% of the lesser of the current market value at the
time of redemption or the original purchase cost of the shares being
redeemed. Proceeds from the CDSCs are paid to JH Funds and are used, in
whole or in part, to defray its expenses for providing distribution-related
services to the Fund in connection with the sale of Class B and Class C
shares. During the period ended April 30, 2004, CDSCs received by JH Funds
amounted to $227,782 for Class B shares and $5,714 for Class C shares.
21
The Fund has a transfer agent agreement with John Hancock Signature
Services, Inc. ("Signature Services"), an indirect subsidiary of JHLICo.
The Fund pays a monthly transfer agent fee at an annual rate of 0.05% of
the Fund's average daily net asset value, plus a fee based on the number of
shareholder accounts and reimbursement for certain out-of-pocket expenses,
aggregated and allocated to each class on the basis of its relative net
asset value. Signature Services reduced the transfer agent fee for Class A,
Class B and Class C shares by $27,196, during the period ended April 30,
2004. Signature Services reserves the right to terminate this limitation in
the future.
The Fund has an agreement with the Adviser to perform necessary tax,
accounting and legal services for the Fund. The compensation for the period
was at an annual rate of approximately 0.03% of the average daily net asset
value of the Fund. The Fund also paid the Adviser the amount of $138 for
certain publishing services, included in the printing fees.
Mr. James A. Shepherdson is a director and/or officer of the Adviser and/or
its affiliates, as well as Trustee of the Fund. The compensation of
unaffiliated Trustees is borne by the Fund. The unaffiliated Trustees may
elect to defer, for tax purposes, their receipt of this compensation under
the John Hancock Group of Funds Deferred Compen sation Plan. The Fund makes
investments into other John Hancock funds, as applicable, to cover its
liability for the deferred compensation. Investments to cover the Fund's
deferred compensation liability are recorded on the Fund's books as an
other asset. The deferred compensation liability and the related other
asset are always equal and are marked to market on a periodic basis to
reflect any income earned by the investments, as well as any unrealized
gains or losses. The Deferred Compensation Plan investments had no impact
on the operations of the Fund.
NOTE C
Fund share transactions
This listing illustrates the number of Fund shares sold and repurchased
during the last two periods, along with the corresponding dollar value. The
Fund has an unlimited number of shares authorized with no par value.
YEAR ENDED 10-31-03 PERIOD ENDED 4-30-041
SHARES AMOUNT SHARES AMOUNT
CLASS A SHARES
Sold 1,904,610 $9,337,076 780,734 $4,501,395
Repurchased (3,866,431) (18,250,013) (1,893,267) (10,958,613)
Net decrease (1,961,821) ($8,912,937) (1,112,533) ($6,457,218)
CLASS B SHARES
Sold 1,542,219 $7,313,411 610,100 $3,438,418
Repurchased (5,376,766) (25,094,848) (2,239,986) (12,649,025)
Net decrease (3,834,547) ($17,781,437) (1,629,886) ($9,210,607)
CLASS C SHARES
Sold 518,564 $2,468,614 237,744 $1,346,625
Repurchased (2,399,620) (11,186,169) (1,196,116) (6,778,246)
Net decrease (1,881,056) ($8,717,555) (958,372) ($5,431,621)
NET DECREASE (7,677,424) ($35,411,929) (3,700,791) ($21,099,446)
1 Semiannual period from 11-1-03 through 4-30-04. Unaudited.
22
NOTE D
Investment
transactions
Purchases and proceeds from sales or maturities of securities, other than
short-term securities and obligations of the U.S. government, during the
period ended April 30, 2004, aggregated $63,766,435 and $83,552,546,
respectively.
The cost of investments owned on April 30, 2004, including short-term
investments, for federal income tax purposes, was $193,283,608. Gross
unrealized appreciation and depreciation of investments aggregated
$28,925,796 and $7,059,969, respectively, resulting in net unrealized
appreciation of $21,865,827. The difference between book basis and tax
basis net unrealized appreciation of investments is attributable primarily
to the tax deferral of losses on certain sales of securities.
23
OUR FAMILY
OF FUNDS
- ----------------------------------------------------------
Equity Balanced Fund
Classic Value Fund
Core Equity Fund
Focused Equity Fund
Growth Trends Fund
International Fund
Large Cap Equity Fund
Large Cap Growth Fund
Large Cap Select Fund
Mid Cap Growth Fund
Multi Cap Growth Fund
Small Cap Equity Fund
Small Cap Growth Fund
Sovereign Investors Fund
U.S. Global Leaders Growth Fund
- ----------------------------------------------------------
Sector Biotechnology Fund
Financial Industries Fund
Health Sciences Fund
Real Estate Fund
Regional Bank Fund
Technology Fund
- ----------------------------------------------------------
Income Bond Fund
Government Income Fund
High Income Fund
High Yield Fund
Investment Grade Bond Fund
Strategic Income Fund
- ----------------------------------------------------------
Tax-Free Income California Tax-Free Income Fund
High Yield Municipal Bond Fund
Massachusetts Tax-Free Income Fund
New York Tax-Free Income Fund
Tax-Free Bond Fund
- ----------------------------------------------------------
Money Market Money Market Fund
U.S. Government Cash Reserve
For more complete information on any John Hancock fund
and a prospectus, which includes charges and expenses,
call your financial professional, or John Hancock Funds at
1-800-225-5291. Please read the prospectus carefully before
investing or sending money.
24
FOR YOUR
INFORMATION
TRUSTEES
Dennis S. Aronowitz
Richard P. Chapman, Jr.
William J. Cosgrove
Richard A. Farrell
William F. Glavin*
Dr. John A. Moore*
Patti McGill Peterson*
John W. Pratt
James A. Shepherdson
*Members of the Audit Committee
OFFICERS
James A. Shepherdson
President and Chief Executive Officer
Richard A. Brown
Senior Vice President
and Chief Financial Officer
Susan S. Newton
Senior Vice President and Secretary
William H. King
Vice President and Treasurer
INVESTMENT ADVISER
John Hancock Advisers, LLC
101 Huntington Avenue
Boston, Massachusetts 02199-7603
SUB-INVESTMENT ADVISER
Mercury Advisors
800 Scudders Mill Road
Plainsboro, New Jersey 08536
PRINCIPAL DISTRIBUTOR
John Hancock Funds, LLC
101 Huntington Avenue
Boston, Massachusetts 02199-7603
CUSTODIAN
The Bank of New York
One Wall Street
New York, New York 10286
TRANSFER AGENT
John Hancock Signature Services, Inc.
1 John Hancock Way, Suite 1000
Boston, Massachusetts 02217-1000
LEGAL COUNSEL
Hale and Dorr LLP
60 State Street
Boston, Massachusetts 02109-1803
HOW TO
CONTACT US
On the Internet www.jhfunds.com
By regular mail John Hancock Signature Services, Inc.
1 John Hancock Way, Suite 1000
Boston, MA 02217-1000
By express mail John Hancock Signature Services, Inc.
Attn: Mutual Fund Image Operations
529 Main Street
Charlestown, MA 02129
Customer service representatives 1-800-225-5291
24-hour automated information 1-800-338-8080
TDD line 1-800-554-6713
The Fund's voting policies and procedures are available without charge,
upon request:
By phone 1-800-225-5291
On the Fund's Web site www.jhfunds.com/proxy
On the SEC's Web site www.sec.gov
25
[A 1 1/2" x 1/2" John Hancock (Signature) logo in upper left hand corner.
A tag line below reads "JOHN HANCOCK FUNDS."]
1-800-225-5291
1-800-554-6713 (TDD)
1-800-338-8080 EASI-Line
www.jhfunds.com
Now available: electronic delivery
www.jhancock.com/funds/edelivery
This report is for the information of
the shareholders of the John Hancock
Growth Trends Fund.
460SA 4/04
6/04
ITEM 2. CODE OF ETHICS.
Not applicable at this time.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable at this time.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable at this time.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. SCHEDULE OF INVESTMENTS.
Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
(a) The registrant has adopted procedures by which shareholders may recommend
nominees to the registrant's Board of Trustees. A copy of the procedures is
filed as an exhibit to this Form N-CSR. See attached "John Hancock Funds -
Administration Committee Charter".
ITEM 10. CONTROLS AND PROCEDURES.
(a) Based upon their evaluation of the registrant's disclosure controls and
procedures as conducted within 90 days of the filing date of this Form N-CSR,
the registrant's principal executive officer and principal financial officer
have concluded that those disclosure controls and procedures provide
reasonable assurance that the material information required to be disclosed by
the registrant on this report is recorded, processed, summarized and reported
within the time periods specified in the Securities and Exchange Commission's
rules and forms.
(b) There were no changes in the registrant's internal control over financial
reporting that occurred during the registrant's most recent fiscal half-year
(the registrant's second fiscal half-year in the case of an annual report)
that have materially affected, or are reasonably likely to materially affect,
the registrant's internal control over financial reporting.
ITEM 11. EXHIBITS.
(a)(1) Separate certifications for the registrant's principal executive
officer and principal financial officer, as required by Section 302 of the
Sarbanes-Oxley Act of 2002 and Rule 30a-2(a) under the Investment Company Act
of 1940, are attached.
(b)(1) Separate certifications for the registrant's principal executive
officer and principal financial officer, as required by 18 U.S.C. Section
1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002,
and Rule 30a-2(b) under the Investment Company Act of 1940, are attached. The
certifications furnished pursuant to this paragraph are not deemed to be
"filed" for purposes of Section 18 of the Securities Exchange Act of 1934, or
otherwise subject to the liability of that section. Such certifications are
not deemed to be incorporated by reference into any filing under the
Securities Act of 1933 or the Securities Exchange Act of 1934, except to the
extent that the Registrant specifically incorporates them by reference.
(c)(1) Submission of Matters to a Vote of Security Holders is attached. See
attached "John Hancock Funds - Administration Committee Charter".
(c)(2) Contact person at the registrant.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to
be signed on its behalf by the undersigned, thereunto duly authorized.
John Hancock Equity Trust
By:
- ---------------------------------
James A. Shepherdson
President and Chief Executive Officer
Date: June 24, 2004
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By:
- ---------------------------------
James A. Shepherdson
President and Chief Executive Officer
Date: June 24, 2004
By:
- ---------------------------------
Richard A. Brown
Senior Vice President and Chief Financial Officer
Date: June 24, 2004