UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-4932
John Hancock World Fund
(Exact name of registrant as specified in charter)
101 Huntington Avenue, Boston, Massachusetts 02199
(Address of principal executive offices) (Zip code)
Alfred P. Ouellette
Senior Attorney and Assistant Secretary
101 Huntington Avenue
Boston, Massachusetts 02199
(Name and address of agent for service)
Registrant's telephone number, including area code: 617-375-1513
Date of fiscal year end: October 31
Date of reporting period: April 30, 2005
ITEM 1. REPORT TO SHAREHOLDERS.
SEMIANNUAL REPORT
John Hancock
Biotechnology Fund
April 30, 2005
YOUR
EXPENSES
These examples are intended to help you understand your ongoing operating
expenses.
Understanding fund expenses
As a shareholder of the Fund, you incur two types of costs:
* Transaction costs which include sales charges (loads) on purchases or
redemptions (varies by share class), minimum account fee charge, etc.
* Ongoing operating expenses including management fees, distribution and
service fees (if applicable) and other fund expenses.
We are going to present only your ongoing operating expenses here.
Actual expenses/actual returns
This example is intended to provide information about your fund's actual
ongoing operating expenses, and is based on your fund's actual return. It
assumes an account value of $1,000.00 on October 31, 2004, with the same
investment held until April 30, 2005.
Account value Expenses paid
$1,000.00 Ending value during period
on 10-31-04 on 4-30-05 ended 4-30-05 1
Class A $965.60 $7.80
Class B 962.20 11.19
Class C 962.20 11.19
Together with the value of your account, you may use this information to
estimate the operating expenses that you paid over the period. Simply
divide your account value at April 30, 2005 by $1,000.00, then multiply it
by the "expenses paid" for your share class from the table above. For
example, for an account value of $8,600.00, the operating expenses should
be calculated as follows:
Example
-- -- -- --
| My account value / | | "expenses paid" | My
| / $1,000.00 = 8.6 | X $| | = actual
| $8,600.00 / | | from table | expenses
-- -- -- --
Hypothetical example for comparison purposes
This table allows you to compare your fund's ongoing operating expenses
with those of any other fund. It provides an example of the Fund's
hypothetical account values and hypothetical expenses based on each class's
actual expense ratio and an assumed 5% annual return before expenses (which
is not your fund's actual return). It assumes an account value of $1,000.00
on October 31, 2004, with the same investment held until April 30, 2005.
Look in any other fund shareholder report to find its hypothetical example
and you will be able to compare these expenses.
Account value Expenses paid
$1,000.00 Ending value during period
on 10-31-04 on 4-30-05 ended 4-30-05 1
Class A $1,016.86 $8.00
Class B 1,013.39 11.48
Class C 1,013.39 11.48
Remember, these examples do not include any transaction costs, such as
sales charges; therefore, these examples will not help you to determine the
relative total costs of owning different funds. If transaction costs were
included, your expenses would have been higher. See the prospectus for
details regarding transaction costs.
1 Expenses are equal to the Fund's annualized expense ratio of 1.60%,
2.30% and 2.30% for Class A, Class B and Class C, respectively,
multiplied by the average account value over the period, multiplied by
number of days in most recent fiscal half-year/365 or 366 (to reflect the
one-half year period).
John Hancock
Biotechnology Fund
Securities owned by the Fund on
April 30, 2005 (unaudited)
Issuer Shares Value
- ------------------------------------------------------------------------------
Common stocks 94.55% $15,161,388
- ------------------------------------------------------------------------------
(Cost $13,613,201)
Biotechnology 60.13% 9,642,331
- ------------------------------------------------------------------------------
Abgenix, Inc. (I) 32,000 223,040
Alkermes, Inc. (I) 10,000 112,500
Amgen, Inc. (I) 42,000 2,444,820
Amylin Pharmaceuticals, Inc. (I)(L) 5,000 85,000
Applera Corp.-Celera Genomics Group (I) 30,000 276,000
Celgene Corp. (I) 20,000 758,200
Cephalon, Inc. (I) 5,000 219,500
Charles River Laboratories International, Inc. (I) 4,000 189,480
Eyetech Pharmaceuticals, Inc. (I)(L) 7,500 172,425
Genentech, Inc. (I)(L) 12,500 886,750
Genzyme Corp. (I) 16,000 937,760
Gilead Sciences, Inc. (I) 22,000 816,200
Human Genome Sciences, Inc. (I) 25,000 258,500
Invitrogen Corp. (I) 2,000 146,540
Life Sciences Research, Inc. (I) 15,000 193,500
Martek Biosciences Corp. (I) 5,000 191,350
Medarex, Inc. (I) 32,500 230,100
Nabi Biopharmaceuticals (I) 9,900 107,910
Neurocrine Biosciences, Inc. (I) 6,000 209,760
Protein Design Labs, Inc. (I) 23,000 411,240
Sepracor, Inc. (I) 50 2,996
Telik, Inc. (I)(L) 12,000 194,400
Vicuron Pharmaceuticals, Inc. (I) 20,000 327,000
ZymoGenetics, Inc. (I) 16,000 247,360
Health Care Equipment 11.87% 1,902,643
- ------------------------------------------------------------------------------
Boston Scientific Corp. (I) 11,600 343,128
Caliper Life Sciences, Inc. (I) 50,000 289,500
Fisher Scientific International, Inc. (I) 3,500 207,830
Gen-Probe, Inc. (I) 10,000 501,900
Hospira, Inc. (I) 16,700 560,285
Health Care Services 6.94% 1,112,755
- ------------------------------------------------------------------------------
Accredo Health, Inc. (I) 10,000 453,000
Cytokinetics, Inc. (I) 17,000 83,470
Nektar Therapeutics (I) 22,000 313,720
Onyx Pharmaceuticals, Inc. (I) 8,500 262,565
Health Care Supplies 1.07% 171,650
- ------------------------------------------------------------------------------
Bioenvision, Inc. (I) 10,000 64,000
Serologicals Corp. (I) 5,000 107,650
Pharmaceuticals 14.54% $2,332,009
- ------------------------------------------------------------------------------
ARIAD Pharmaceuticals, Inc. (I) 25,000 153,500
Aspreva Pharmaceuticals Corp. (I) 5,180 75,214
Connetics Corp. (I) 5,000 108,650
ICOS Corp. (I)(L) 5,000 112,800
IVAX Corp. (I) 13,350 252,315
Medicines Co. (The) (I) 15,000 320,250
MGI Pharma, Inc. (I)(L) 8,000 176,400
Nuvelo, Inc. (I) 33,000 192,390
Pharmion Corp. (I) 5,000 115,500
Rigel Pharmaceuticals, Inc. (I) 15,000 257,250
Salix Pharmaceuticals, Ltd. (I) 7,000 100,100
Shire Pharmaceuticals Group Plc, American Depositary
Receipt (ADR) (United Kingdom) 6,000 186,480
Teva Pharmaceutical Industries Ltd. (ADR) (Israel) 9,000 281,160
Interest Par value
Issuer, description, maturity date rate (000) Value
- ------------------------------------------------------------------------------
Short-term investments 15.54% $2,491,312
- ------------------------------------------------------------------------------
(Cost $2,491,312)
Joint Repurchase Agreement 6.03% 966,000
- ------------------------------------------------------------------------------
Investment in a joint repurchase
agreement transaction with Bank of
America Corp. - Dated 4-29-05 due
5-2-05 (secured by U.S. Treasury
STRIPS due 11-15-10 thru 8-15-25) 2.85% $966 966,000
Shares
- ------------------------------------------------------------------------------
Cash Equivalents 9.51% 1,525,312
- ------------------------------------------------------------------------------
AIM Cash Investment Trust (T) 1,525,312 1,525,312
- ------------------------------------------------------------------------------
Total investments 110.09% $17,652,700
- ------------------------------------------------------------------------------
Other assets and liabilities, net (10.09%) ($1,617,527)
- ------------------------------------------------------------------------------
Total net assets 100.00% $16,035,173
- ------------------------------------------------------------------------------
John Hancock
Biotechnology Fund
Footnotes to Schedule of Investments
(I) Non-income-producing security.
(L) All or a portion of this security is on loan as of April 30, 2005.
(T) 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.
John Hancock Biotechnology Fund
ASSETS AND
LIABILITIES
April 30, 2005
(unaudited)
Assets
Investments, at value (cost $16,104,513)
including $1,495,404 of securities loaned $17,652,700
Cash 247
Receivable for shares sold 3,674
Interest receivable 153
Receivable from affiliates 14,770
Other assets 732
Total assets 17,672,276
Liabilities
Payable for shares repurchased 72,574
Payable upon return of securites loaned 1,525,312
Payable to affiliates
Management fees 12,197
Distribution and service fees 1,385
Other 7,662
Other payables and accrued expenses 17,973
Total liabilities 1,637,103
Net assets
Capital paid-in 19,045,519
Accumulated net realized loss on investments (4,374,739)
Net unrealized appreciation of investments 1,548,187
Accumulated net investment loss (183,794)
Net assets $16,035,173
Net asset value per share
Based on net asset values and shares outstanding --
the Fund has an unlimited number of shares
authorized with no par value
Class A ($6,463,263/851,094 shares) $7.59
Class B ($6,926,016/938,172 shares) $7.38
Class C ($2,645,894/358,411 shares) $7.38
Maximum offering price per share
Class A 1 (7.59/95%) $7.99
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.
John Hancock Biotechnology Fund
OPERATIONS
For the period ended
April 30, 2005
(unaudited) 1
Investment income
Interest $5,386
Securities lending 3,681
Dividends (net of foreign withholding taxes of $425) 3,566
Total investment income 12,633
Expenses
Investment management fees 87,674
Class A distribution and service fees 11,867
Class B distribution and service fees 39,836
Class C distribution and service fees 18,023
Transfer agent fees 47,216
Registration and filing fees 19,439
Printing 13,092
Professional fees 11,071
Custodian fees 7,460
Miscellaneous 3,420
Accounting and legal services fees 2,375
Trustees' fees 358
Securities lending fees 176
Total expenses 262,007
Less expense reductions (65,640)
Net expenses 196,367
Net investment loss (183,734)
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain on investments 584,476
Change in net unrealized appreciation (depreciation) of
Investments (982,902)
Net realized and unrealized loss (398,426)
Decrease in net assets from operations ($582,160)
1 Semiannual period from 11-1-04 through 4-30-05.
See notes to
financial statements.
John Hancock Biotechnology Fund
CHANGES IN
NET ASSETS
Year ended Period ended
10-31-04 4-30-05 1
Increase (decrease) in net assets
From operations
Net investment loss ($429,387) ($183,734)
Net realized gain 2,324,411 584,476
Change in net unrealized appreciation (depreciation) (932,719) (982,902)
Increase (decrease) in net assets resulting from operations 962,305 (582,160)
From Fund share transactions 904,366 (4,152,725)
Net assets
Beginning of period 18,903,387 20,770,058
End of period 2 $20,770,058 $16,035,173
1 Semiannual period from 11-1-04 through 4-30-05. Unaudited.
2 Includes accumulated net investment loss of $60 and $183,794, respectively.
See notes to
financial statements.
John Hancock Biotechnology Fund
Financial Highlights
CLASS A
Period ended 10-31-01 1 10-31-02 10-31-03 10-31-04 4-30-05 2
Per share operating performance
Net asset value, beginning of period $10.00 $9.49 $5.55 $7.39 $7.86
Net investment loss 3 (0.07) (0.09) (0.08) (0.12) (0.06)
Net realized and unrealized gain (loss) on investments (0.44) (3.84) 1.92 0.59 (0.21)
Total from investment operations (0.51) (3.93) 1.84 0.47 (0.27)
Less distributions
From net investment income -- (0.01) -- -- --
Net asset value, end of period $9.49 $5.55 $7.39 $7.86 $7.59
Total return 4,5 (%) (5.10) 6 (41.46) 33.15 6.36 (3.44) 6
Ratios and supplemental data
Net assets, end of period (in millions) $6 $5 $8 $8 $6
Ratio of expenses to average net assets (%) 1.60 7 1.60 1.60 1.60 1.60 7
Ratio of adjusted expenses to average net assets 8 (%) 4.34 7 2.59 2.65 2.12 2.27 7
Ratio of net investment loss to average net assets (%) (1.15) 7 (1.29) (1.35) (1.46) (1.47) 7
Portfolio turnover (%) 63 97 130 80 17
See notes to financial statements.
John Hancock Biotechnology Fund
Financial Highlights
CLASS B
Period ended 10-31-01 1 10-31-02 10-31-03 10-31-04 4-30-05 2
Per share operating performance
Net asset value, beginning of period $10.00 $9.44 $5.49 $7.26 $7.67
Net investment loss 3 (0.13) (0.14) (0.13) (0.17) (0.09)
Net realized and unrealized gain (loss) on investments (0.43) (3.81) 1.90 0.58 (0.20)
Total from investment operations (0.56) (3.95) 1.77 0.41 (0.29)
Net asset value, end of period $9.44 $5.49 $7.26 $7.67 $7.38
Total return 4,5 (%) (5.60) 6 (41.84) 32.24 5.65 (3.78) 6
Ratios and supplemental data
Net assets, end of period (in millions) $4 $4 $8 $9 $7
Ratio of expenses to average net assets (%) 2.30 7 2.30 2.30 2.30 2.30 7
Ratio of adjusted expenses to average net assets 8 (%) 5.05 7 3.29 3.35 2.82 2.97 7
Ratio of net investment loss to average net assets (%) (2.01) 7 (1.99) (2.05) (2.16) (2.17) 7
Portfolio turnover (%) 63 97 130 80 17
See notes to financial statements.
John Hancock Biotechnology Fund
Financial Highlights
CLASS C
Period ended 10-31-01 1 10-31-02 10-31-03 10-31-04 4-30-05 2
Per share operating performance
Net asset value, beginning of period $10.00 $9.44 $5.49 $7.26 $7.67
Net investment loss 3 (0.13) (0.14) (0.13) (0.17) (0.09)
Net realized and unrealized gain (loss) on investments (0.43) (3.81) 1.90 0.58 (0.20)
Total from investment operations (0.56) (3.95) 1.77 0.41 (0.29)
Net asset value, end of period $9.44 $5.49 $7.26 $7.67 $7.38
Total return 4,5 (%) (5.60) 6 (41.84) 32.24 5.65 (3.78) 6
Ratios and supplemental data
Net assets, end of period (in millions) $2 $2 $2 $4 $3
Ratio of expenses to average net assets (%) 2.30 7 2.30 2.30 2.30 2.30 7
Ratio of adjusted expenses to average net assets 8 (%) 5.05 7 3.29 3.35 2.82 2.97 7
Ratio of net investment loss to average net assets (%) (2.07) 7 (1.99) (2.05) (2.16) (2.17) 7
Portfolio turnover (%) 63 97 130 80 17
1 Class A, Class B and Class C shares began operations on 3-1-01.
2 Semiannual period from 11-1-04 through 4-30-05. Unaudited.
3 Based on the 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.
See notes to financial statements.
NOTES TO FINANCIAL STATEMENTS
(unaudited)
Note A
Accounting policies
John Hancock Biotechnology Fund (the "Fund") is a non-diversified series of
John Hancock World Fund, 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 capital appreciation.
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 at fair
value as determined in good faith in accordance with procedures approved by
the Trustees. Short-term debt investments which have a remaining maturity
of 60 days or less may be valued at amortized cost, which approximates
market value. Investments in AIM Cash Investment Trust are valued at their
net asset value each business day.
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.
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.
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, 2005.
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. On April 30, 2005, the Fund loaned securities having a market
value of $1,495,404 collateralized by cash in the amount of $1,525,312. The
cash collateral was invested in a short-term instrument. Securities lending
expenses are paid by the Fund to the Adviser.
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 $4,431,628 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, 2010 - $3,046,491 and October
31, 2011 - $1,385,137.
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, if any, 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 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 equivalent, on an annual basis, to the sum of: (a) 0.90% of the
first $500,000,000 of the Fund's average daily net asset value, (b) 0.85%
of the next $500,000,000 and (c) 0.80% of the Fund's average daily net
asset value in excess of $1,000,000,000.
The Adviser has agreed to limit the Fund's total expenses excluding the
distribution and service fees, to 1.30% of the Fund's average daily net
asset value, at least until February 28, 2006. Accordingly, the expense
reduction related to the total expense limitation amounted to $65,640 for
the period ended April 30, 2005. 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 shares are assessed up-front sales charges. During the period ended
April 30, 2005, JH Funds received net up-front sales charges of $15,537
with regard to sales of Class A shares. Of this amount, $2,563 was retained
and used for printing prospectuses, advertising, sales literature and other
purposes, $11,652 was paid as sales commissions to unrelated broker-dealers
and $1,322 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.
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, 2005, CDSCs received by JH Funds
amounted to $26,944 for Class B shares and $1,044 for Class C shares.
The Fund has a transfer agent agreement with John Hancock Signature
Services, Inc. ("Signature Services"), an indirect subsidiary of JHLICo.
For Class A, Class B and Class C shares, 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 agreed to voluntarily reduce the Fund's asset-based portion of the
transfer agent fee if the total transfer agent fee exceeds the Lipper, Inc.
median transfer agency fee for comparable mutual funds by 0.05%. There were
no transfer agent fee reductions during the period ended April 30, 2005.
Signature Services reserves the right to terminate this limitation at any
time.
The Fund has an agreement with the Adviser to perform necessary tax,
accounting and legal services for the Fund. The compensation for the period
amounted to $2,375. The Fund also paid the Adviser the amount of $49 for
certain publishing services, included in the printing fees.
Mr. James A. Shepherdson is a director and officer of the Adviser, as well
as affiliated Trustee of the Fund, and is compensated by the Adviser. 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
Compensation 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.
YEAR ENDED 10-31-04 PERIOD ENDED 4-30-05 1
SHARES AMOUNT SHARES AMOUNT
CLASS A SHARES
Sold 995,092 $8,365,725 166,711 $1,376,808
Repurchased (1,047,383) (8,849,637) (362,303) (2,901,646)
Net decrease (52,291) ($483,912) (195,592) ($1,524,838)
CLASS B SHARES
Sold 588,836 $4,817,701 63,309 $496,875
Repurchased (585,849) (4,633,982) (272,688) (2,152,947)
Net increase (decrease) 2,987 $183,719 (209,379) ($1,656,072)
CLASS C SHARES
Sold 248,261 $1,998,289 28,720 $229,792
Repurchased (100,421) (793,730) (158,549) (1,201,607)
Net increase (decrease) 147,840 $1,204,559 (129,829) ($971,815)
NET INCREASE (DECREASE) 98,536 $904,366 (534,800) ($4,152,725)
1 Semiannual period from 11-1-04 through 4-30-05. Unaudited.
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, 2005, aggregated $3,173,689 and $7,390,118,
respectively.
The cost of investments owned on April 30, 2005, including short-term
investments, for federal income tax purposes, was $16,532,710. Gross
unrealized appreciation and depreciation of investments aggregated
$2,516,445 and $1,396,455, respectively, resulting in net unrealized
appreciation of $1,119,990. 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.
Note E
Proposed reorganization
On March 8, 2005, the Trustees approved the reorganization of John Hancock
Biotechnology Fund into John Hancock Health Sciences Fund. The
reorganization is scheduled to take place after the close of business on
June 10, 2005, subject to approval by shareholders at a special shareholder
meeting.
Note F
Shareholder meeting
On December 1, 2004, a Special Meeting of shareholders of the Fund was held
to elect nine Trustees effective January 1, 2005. Proxies covering
2,215,366 shares of beneficial interest were voted at the meeting.
The shareholders elected the following Trustees to serve until their
respective successors are duly elected and qualified, with the votes
tabulated as follows:
WITHHELD
FOR AUTHORITY
- ---------------------------------------------------------------
James F. Carlin 2,192,119 23,247
Richard P. Chapman, Jr. 2,191,985 23,381
William H. Cunningham 2,192,119 23,247
Ronald R. Dion 2,196,118 19,248
Charles L. Ladner 2,195,426 19,940
Dr. John A. Moore 2,191,985 23,381
Patti McGill Peterson 2,196,118 19,248
Steven R. Pruchansky 2,195,560 19,806
James A. Shepherdson 2,195,560 19,806
John Hancock Biotechnology Fund
Trustees
James F. Carlin
Richard P. Chapman, Jr.*
William Cunningham
Ronald Dion
Charles L. Ladner*
Dr. John A. Moore*
Patti McGill Peterson*
Steven R. Pruchansky
Lt. Gen. Norman H. Smith, USMC (Ret.)
* Member of Audit Committee
Officers
James A. Shepherdson
President and Chief Executive Officer
William H. King
Vice President and Treasurer
Investment Adviser
John Hancock Advisers, LLC
101 Huntington Avenue
Boston, MA 02199-7603
Principal Distributor
John Hancock Funds, LLC
101 Huntington Avenue
Boston, MA 02199-7603
Custodian
The Bank of New York
One Wall Street
New York, NY 10286
Transfer Agent
John Hancock Signature Services, Inc.
1 John Hancock Way, Suite 1000
Boston, MA 02217-1000
Legal Counsel
Wilmer Cutler Pickering
Hale and Dorr LLP
60 State Street
Boston, MA 02109-1803
JOHN HANCOCK
Health Sciences
Fund
4.30.2005
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, Chief Executive Officer, flush left next
to first paragraph.]
CEO CORNER
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
Your expenses
page 8
Fund's investments
page 10
Financial statements
page 14
For more information
page 29
Dear Fellow Shareholders,
After advancing for a second straight year in 2004, the stock market
pulled back in the first four months of 2005. For much of 2004 the market
had been in the doldrums as investors fretted about rising oil prices,
higher interest rates, the war in Iraq and a closely contested
presidential race. But the year ended on a high note with a sharp rally
sparked by a definitive end to the U.S. presidential election and
moderating oil prices.
Investors were brought back down to earth in January, however, as the
market declined in three of the four weeks and produced negative results
for the month in a broad-based move downward. Rising oil prices and
interest rates, and concerns about less robust corporate earnings growth
were among the culprits that kept investors on the sidelines. Investors
began to re-enter the market in February, reversing January's decline. But
as the month progressed into March and April investors again grew
concerned about further spikes in oil prices and rising interest rates. As
a result, the first four months of 2005 ended with the major indexes in
the red. By the end of April, the Dow Jones Industrial Average had
returned -4.81%, the S&P 500 Index returned -4.00%, while the Nasdaq
Composite Index fell by 11.67%. Bonds performed slightly better, managing
to produce positive results, with the Lehman Brothers Aggregate Bond Index
returning 0.87%.
In October, you may recall we requested your vote on a proposal regarding
the election of your fund's Board of Trustees. We are pleased to report
that shareholders overwhelmingly approved the proposal, which became
effective January 1, 2005. As a result, all open-end John Hancock funds
now have the same Board of Trustees, comprised of ten members -- nine of
them, including the Chairman, are independent Trustees with no direct or
indirect interest in John Hancock Advisers, LLC, your fund's investment
adviser. We believe this move is a way to improve the effectiveness of the
Trustees' oversight of the funds, and we are grateful for your support.
Sincerely,
/S/ JAMES A. SHEPHERDSON
James A. Shepherdson,
Chief Executive Officer
This commentary reflects the CEO's views as of April 30, 2005. They are
subject to change at any time.
YOUR FUND
AT A GLANCE
The Fund seeks
long-term growth of
capital by normally
investing at least
80% of its assets in
stocks of U.S. and
foreign health
sciences companies.
Over the last six months
* The stock market posted modest returns in the face of rising interest
rates and oil prices.
* Health care stocks outperformed the broad market, as they are typically
viewed as a defensive move amid uncertainty.
* Underweightings in large pharmaceuticals, and good stock choices among
managed care and pharmacy benefit managers, boosted the Fund's results.
[Bar chart with heading "John Hancock Health Sciences Fund." Under the
heading is a note that reads "Fund performance for the six months ended
April 30, 2005." The chart is scaled in increments of 5% with 0% at the
bottom and 10% at the top. The first bar represents the 7.74% total return
for Class A. The second bar represents the 7.36% total return for Class B.
The third bar represents the 7.36% 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. These returns do not reflect the deduction of the
maximum sales charge, which would reduce the performance shown above."]
Top 10 holdings
5.0% Medtronic, Inc.
4.2% Abbot Laboratories
3.7% Genentech, Inc.
3.6% Amgen, Inc.
3.2% UnitedHealth Group, Inc.
3.2% Hospira, Inc.
3.1% Johnson & Johnson
2.9% WellPoint, Inc.
2.7% Caremark Rx, Inc.
2.7% Novartis AG
As a percentage of net assets on April 30, 2005.
1
BY ROBERT C. JUNKIN, CPA, PORTFOLIO MANAGER
MANAGER'S
REPORT
JOHN HANCOCK
Health Sciences Fund
Robert Junkin recently assumed the management of John Hancock Health
Sciences Fund, replacing Linda J. Miller who left the company to pursue
other interests.
Recently, John Hancock Biotechnology Fund merged into John Hancock Health
Sciences Fund upon receiving approval from shareholders.
Despite some noteworthy regulatory and legal headwinds, health care stocks
outpaced the broader stock market for the six months ended April 30, 2005.
During November and early December 2004, the group staged a significant
post-presidential-election relief rally, fueled by investors' optimism
that the re-election of President Bush would preclude more industry
regulation, increases in competition from overseas drug makers, price
curbs and other less favorable changes. However, the performance of the
various subsectors that make up the health care group began to diverge in
the first four months of 2005. In the wake of concerns over potentially
slowing economic conditions and rising inflation, the group's historic
reputation as being defensive helped attract investor demand, pushing the
stock prices for many health care companies -- including HMOs, hospitals
and even battered drug stocks. In contrast, the more speculative areas --
namely biotech -- suffered as investors increasingly shunned riskier
assets.
"Despite some noteworthy regu-
latory and legal headwinds,
health care stocks outpaced the
broader stock market for the six
months ended April 30, 2005."
Performance
For the six months ended April 30, 2005, John Hancock Health Sciences
Fund's Class A, Class B and Class C shares posted total returns of 7.74%,
7.36% and 7.36%, respectively, at net asset value. During the same
six-month period, the Russell 3000 Healthcare Index returned 10.77% and
the average health/biotechnology fund had a total return of 5.98%,
according to Lipper, Inc.,1 while the Standard & Poor's 500 Index returned
3.28%. Keep in mind that your net asset value return will be different
from the Fund's performance if you were not invested in the Fund for the
entire
2
period and did not reinvest all distributions. See pages six and
seven for historical performance results.
[A photo of Robert Junkin, flush right next to first paragraph.]
We believe that our underperformance of the index was due to our
overweighting in biotech concerns. We attribute our outperformance of the
Lipper average to our lower exposure to large drug companies.
Managed care, PBMs top the Fund's winners list
At the top of our best-performers list during the period were a number of
managed care and pharmacy benefit managers (PBMs), the latter of which
design prescription plans and process pharmacy data claims for their
customers, who include businesses, health plans and government employers
that provide drug coverage for employees. Managed care companies have
benefited from rising earnings which resulted from health care premium
increases they passed onto their customers and that were compounded by
moderating medical cost trends. For example, the stock price of WellPoint,
Inc., the nation's largest health insurance provider, surged as it
continued to post strong profit and earnings growth following its November
2004 merger with Anthem. Similarly, UnitedHealth Group Inc. also performed
well, benefiting from significant profit increases across its business
units. Pharmacy benefit manager Caremark Rx was another winner. Much of
Caremark's bottom-line growth resulted from the strength of its mail-order
pharmacy and from the company's recent acquisition of rival AdvancePCS.
Another PBM, Medco Health Solutions, also benefited from strong volume
growth from its mail-order prescription business.
"At the top of our best-performers
list during the period were a number
of managed care and pharmacy
benefit managers..."
Another factor aiding the Fund's performance was our decision to maintain
an underweighting relative to the benchmark in large-cap pharmaceutical
companies, because as a group, they lagged the overall health care sector,
battered by concerns over weak new product pipelines, patent expirations
and negative product news.
Biotech holdings mixed
Because growing concerns about slowing economic conditions put pressure on
the more speculative segments of the stock market, our overweighting in
biotech stocks proved to be the biggest detractor
3
from performance during the period. That said, our stock selection within
the group was generally favorable and we held a number of winners during
the period. One of the Fund's best performers overall was Genentech, the
world's biggest biotech company. It reported strong growth in profits and
revenues as its sales of its new cancer drug Avastin continued to expand.
Avastin, a new drug that fights tumors by cutting off their blood supply
has quickly become Genentech's most successful product since it was
approved in 2004 and is one of the fastest-growing cancer drugs ever. The
company's stock continued to surge after it was announced in mid-April
that Avastin helped some of the sickest breast cancer patients live longer
than expected. Shareholders also cheered the late-period news that the
drug Herceptin, an older cancer therapy from Genentech, helped prevent the
recurrence of breast cancer following tumor surgery. In the biotechnology
diagnostic area, we saw strong gains from our holdings in Gen-Probe, as it
posted solid earnings growth.
[Table at top left-hand side of page entitled "Industry distribution 2."
The first listing is Health care equipment - 25%, the second is
Pharmaceuticals - 23%, the third is Biotechnology - 21%, the fourth is
Health care services - 11%, the fifth is Managed health care - 7%, the
sixth is Health care facilities - 4%, the seventh is Health care supplies -
2% and the eighth is Health care distributors - 1%.]
[Pie chart just below middle of page with heading "Portfolio
diversification 2." The chart is divided into two sections (from top to
right): Common stocks 94% and Short-term investments & other 6%. ]
Unfortunately, there were also a number of disappointments among our
biotech holdings. The biggest one was Biogen Idec, which suffered losses
in response to news that the company was suspending sales of Tysabri
following the death of several multiple sclerosis patients who were taking
the drug and contracted a rare neurological disease. Boston Scientific
also disappointed, primarily due to concerns that it could lose sales of
its cardiovascular stent to rival Johnson & Johnson. We also lost ground
with AtheroGenics, which is focused on the treatment of chronic
inflammatory diseases. It suffered from concerns over the veracity of the
data it published regarding the efficacy of its cholesterol treatment.
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
performanceand what's behind the numbers." The first listing is WellPoint
Inc. followed by an up arrow with the phrase "Premium increases +
moderating costs = earnings gains." The second listing is Genentech
followed by an up arrow with the phrase "Investors cheer positive news on
company's cancer drugs." The third listing is Biogen Idec followed by a
down arrow with the phrase "Suspension of sales of MS drug hurts stock."]
Outlook
In our view, health care stocks may continue to be subject to the risks of
increased regulatory and legal scrutiny throughout 2005, although we
remain quite optimistic about them over the long term. Continued
government scrutiny of product marketing and manufacturing, Medicare and
physician billing practices, consolidation activities and corporate
transparency all may continue to grab headlines and increase health care
companies' cost of doing business. Furthermore, the newly enacted federal
drug benefits program is likely to affect some health care subgroups more
negatively than others. Potentially offsetting these challenges are higher
interest rates and a slowing global economy, which could continue to
prompt more investors to gravitate toward defensive segments of the stock
market, including health care securities. But we believe that over the
longer term, the prospects for health care stocks are quite good, because
demographics and product innovation continue to be favorable for the
industry. No matter what the environment, we'll continue to work to
uncover companies with exciting new product and service developments whose
stocks are selling at compelling valuations.
"...health care stocks may continue to
be subject to the risks of increased
regulatory and legal scrutiny
throughout 2005, although we
remain quite optimistic about them
over the long term."
This commentary reflects the views of the portfolio manager through the
end of the Fund's period discussed in this report. The manager's
statements reflect his 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.
2 As a percentage of net assets on 4-30-05.
5
A LOOK AT
PERFORMANCE
For the period ended
April 30, 2005
Class A Class B Class C
Inception date 10-1-91 3-7-94 3-1-99
Average annual returns with maximum sales charge (POP)
One year -4.93% -5.41% -1.59%
Five years 3.42 3.41 3.75
Ten years 10.49 10.43 --
Since inception -- -- 5.16
Cumulative total returns with maximum sales charge (POP)
Six months 2.36 2.36 6.36
One year -4.93 -5.41 -1.59
Five years 18.32 18.23 20.23
Ten years 171.10 169.64 --
Since inception -- -- 36.39
Performance figures assume all distributions are reinvested. Returns with
maximum sales charge reflect a sales charge on Class A shares of 5%, and
the applicable contingent deferred sales charge (CDSC) on Class B and
Class C shares. The returns for Class C shares have been adjusted to
reflect the elimination of the front-end sales charge effective July 15,
2004. 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 returns reflect past results and should not be considered indicative
of future performance. The return and principal value of an investment
will fluctuate so that shares, when redeemed, may be worth more or less
than their original cost. Due to market volatility, the Fund's current
performance may be higher or lower than the performance shown. For
performance data current to the most recent month-end, please call
1-800-225-5291 or visit the Fund's Web site at www.jhfunds.com.
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.
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 two separate indexes.
[Line chart with the heading "GROWTH OF $10,000." Within the chart are four
lines. The first line represents the Russell 3000 Healthcare Index and is
equal to $33,708 as of April 30, 2005. The second line represents the value
of the hypothetical $10,000 investment made in the John Hancock Health
Sciences Fund, before sales charge, and is equal to $28,543 as of April 30,
2005. The third line represents the value of the same hypothetical
investment made in the John Hancock Health Sciences Fund, after sales
charge, and is equal to $27,110 as of April 30, 2005. The fourth line
represents the Standard & Poor's 500 Index and is equal to $26,562 as of
April 30, 2005.]
Class B 1 Class C 1
Period beginning 4-30-95 3-1-99
Health Sciences Fund $26,964 $13,639
Index 1 26,562 10,265
Index 2 33,708 11,258
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, 2005. The Class C shares
investment with maximum sales charge has been adjusted to reflect the
elimination of the front-end sales charge effective July 15, 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 -- Index 1 -- is an unmanaged index that
includes 500 widely traded common stocks.
Russell 3000 Healthcare Index -- Index 2 -- is a capitalization-weighted
index composed of companies involved in medical services or health care.
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
YOUR
EXPENSES
These examples are intended to help you understand your ongoing operating
expenses.
Understanding fund expenses
As a shareholder of the Fund, you incur two types of costs:
* Transaction costs which include sales charges (loads) on purchases or
redemptions (varies by share class), minimum account fee charge, etc.
* Ongoing operating expenses including management fees, distribution and
service fees (if applicable) and other fund expenses.
We are going to present only your ongoing operating expenses here.
Actual expenses/actual returns
This example is intended to provide information about your fund's actual
ongoing operating expenses, and is based on your fund's actual return. It
assumes an account value of $1,000.00 on October 31, 2004, with the same
investment held until April 30, 2005.
Account value Expenses paid
$1,000.00 Ending value during period
on 10-31-04 on 4-30-05 ended 4-30-05 1
Class A $1,077.40 $8.24
Class B 1,073.60 11.82
Class C 1,073.60 11.82
Together with the value of your account, you may use this information to
estimate the operating expenses that you paid over the period. Simply
divide your account value at April 30, 2005 by $1,000.00, then multiply it
by the "expenses paid" for your share class from the table above. For
example, for an account value of $8,600.00, the operating expenses should
be calculated as follows:
Example
-- -- -- --
| My account value / | | "expenses paid" | My
| / $1,000.00 = 8.6 | X $| | = actual
| $8,600.00 / | | from table | expenses
-- -- -- --
8
Hypothetical example for comparison purposes
This table allows you to compare your fund's ongoing operating expenses
with those of any other fund. It provides an example of the Fund's
hypothetical account values and hypothetical expenses based on each
class's actual expense ratio and an assumed 5% annual return before
expenses (which is not your fund's actual return). It assumes an account
value of $1,000.00 on October 31, 2004, with the same investment held
until April 30, 2005. Look in any other fund shareholder report to find
its hypothetical example and you will be able to compare these expenses.
Account value Expenses paid
$1,000.00 Ending value during period
on 10-31-04 on 4-30-05 ended 4-30-05 1
Class A $1,016.86 $8.00
Class B 1,013.39 11.48
Class C 1,013.39 11.48
Remember, these examples do not include any transaction costs, such as
sales charges; therefore, these examples will not help you to determine
the relative total costs of owning different funds. If transaction costs
were included, your expenses would have been higher. See the prospectus
for details regarding transaction costs.
1 Expenses are equal to the Fund's annualized expense ratio of 1.60%,
2.30% and 2.30% for Class A, Class B and Class C, respectively, multiplied
by the average account value over the period, multiplied by number of days
in most recent fiscal half-year/365 or 366 (to reflect the one-half year
period).
9
FINANCIAL STATEMENTS
FUND'S
INVESTMENTS
Securities owned
by the Fund on
April 30, 2005
(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 94.04% $250,440,693
(Cost $176,629,980)
Biotechnology 20.84% 55,487,302
Amgen, Inc. (I) 162,800 9,476,588
Celgene Corp. (I)(L) 110,000 4,170,100
Charles River Laboratories International, Inc. (I) 57,000 2,700,090
Eyetech Pharmaceuticals, Inc. (I)(L) 100,000 2,299,000
Genentech, Inc. (I)(L) 137,500 9,754,250
Genzyme Corp. (I) 100,000 5,861,000
Gilead Sciences, Inc. (I) 155,000 5,750,500
Invitrogen Corp. (I)(L) 20,000 1,465,400
Martek Biosciences Corp. (I)(L) 45,000 1,722,150
Nabi Biopharmaceuticals (I) 20,000 218,000
Neurocrine Biosciences, Inc. (I)(L) 50,000 1,748,000
Protein Design Labs, Inc. (I)(L) 130,000 2,324,400
Sepracor, Inc. (I)(L) 35,950 2,154,124
Telik, Inc. (I)(L) 115,000 1,863,000
Vicuron Pharmaceuticals, Inc. (I)(L) 130,000 2,125,500
ZymoGenetics, Inc. (I)(L) 120,000 1,855,200
Health Care Distributors 1.33% 3,539,150
AmerisourceBergen Corp. 20,000 1,225,600
Cardinal Health, Inc. 15,000 833,550
McKesson Corp. 40,000 1,480,000
Health Care Equipment 25.01% 66,608,675
American Medical Systems Holdings, Inc. (I) 150,000 2,619,000
ArthroCare Corp. (I)(L) 110,000 3,231,800
Biomet, Inc. 82,500 3,191,925
Boston Scientific Corp. (I) 186,400 5,513,712
See notes to
financial statements.
10
FINANCIAL STATEMENTS
Issuer Shares Value
Health Care Equipment (continued)
DENTSPLY International, Inc. 60,000 $3,279,600
Fisher Scientific International, Inc. (I) 45,000 2,672,100
Gen-Probe, Inc. (I) 85,000 4,266,150
Hospira, Inc. (I) 252,700 8,478,085
Integra LifeSciences Holdings (I) 60,000 2,125,800
Kinetic Concepts, Inc. (I)(L) 80,000 4,916,000
Medtronic, Inc. 250,000 13,175,000
St. Jude Medical, Inc. (I) 110,000 4,293,300
Stryker Corp. (L) 54,000 2,621,700
Varian Medical Systems, Inc. (I)(L) 125,000 4,217,500
Zimmer Holdings, Inc. (I)(L) 24,650 2,007,003
Health Care Facilities 3.54% 9,430,500
Community Health Systems, Inc. (I) 80,000 2,916,000
DaVita, Inc. (I) 75,000 3,022,500
VCA Antech, Inc. (I)(L) 150,000 3,492,000
Health Care Services 11.29% 30,064,764
Advisory Board Co. (The) (I)(L) 70,000 2,849,000
Caremark Rx, Inc. (I) 180,000 7,209,000
Covance, Inc. (I) 90,000 4,107,600
ICON Plc, American Depositary Receipt (ADR) (Ireland) (I)(L) 65,000 2,160,314
IDX Systems Corp. (I) 80,000 2,477,600
Medco Health Solutions, Inc. (I)(L) 90,000 4,587,300
Quest Diagnostics, Inc. 15,000 1,587,000
Stericycle, Inc. (I)(L) 85,000 4,136,950
WebMD Corp. (I)(L) 100,000 950,000
Health Care Supplies 1.87% 4,983,560
Alcon, Inc. (Switzerland) (L) 30,000 2,910,000
Bioenvision, Inc. (I) 125,000 800,000
Retractable Technologies, Inc. (I) 50,000 154,000
Serologicals Corp. (I) 52,000 1,119,560
Managed Health Care 7.01% 18,662,892
PacifiCare Health Systems, Inc. (I) 41,700 2,491,992
UnitedHealth Group, Inc. 90,000 8,505,900
WellPoint, Inc. (I) 60,000 7,665,000
See notes to
financial statements.
11
FINANCIAL STATEMENTS
Issuer Shares Value
Pharmaceuticals 23.15% $61,663,850
Abbot Laboratories 230,000 11,306,800
Aspreva Pharmaceuticals Corp. (I) 74,820 1,086,386
IVAX Corp. (I)(L) 206,050 3,894,345
Johnson & Johnson 120,000 8,235,600
Lilly (Eli) & Co. 95,250 5,569,268
Medicines Co. (The) (I)(L) 120,000 2,562,000
MGI Pharma, Inc. (I) 107,000 2,359,350
Novartis AG (ADR) (Switzerland) 145,000 7,065,850
Pfizer, Inc. 250,000 6,792,500
Roche Holding AG (Switzerland) 45,000 5,466,351
Shire Pharmaceuticals Group Plc, (ADR) (United Kingdom) 100,000 3,108,000
Teva Pharmaceutical Industries Ltd., (ADR) (Israel) 135,000 4,217,400
Interest Par value
Issuer, description, maturity date rate (000) Value
Short-term investments 29.53% $78,634,820
(Cost $78,634,820)
Joint Repurchase Agreement 6.28% 16,718,000
Investment in a joint repurchase agreement transaction
with Bank of America Corp. -- Dated 4-29-05
due 5-2-05 (secured by U.S. Treasury STRIPS due
11-15-10 thru 8-15-25) 2.850% $16,718 16,718,000
Shares
Cash Equivalents 23.25% 61,916,820
AIM Cash Investment Trust (T) 61,916,820 61,916,820
Total investments 123.57% $329,075,513
Other assets and liabilities, net (23.57%) ($62,767,705)
Total net assets 100.00% $266,307,808
See notes to
financial statements.
12
FINANCIAL STATEMENTS
Notes to Schedule of Investments
(I) Non-income-producing security.
(L) All or a portion of this security is on loan as of April 30, 2005.
(T) 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.
13
FINANCIAL STATEMENTS
ASSETS AND
LIABILITIES
April 30, 2005
(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 $255,264,800)
including $60,702,765 of securities loaned $329,075,513
Cash 335
Receivable for shares sold 69,864
Dividends and interest receivable 85,175
Other assets 17,985
Total assets 329,248,872
Liabilities
Payable for shares repurchased 294,730
Payable upon return of securities loaned 61,916,820
Payable to affiliates
Management fees 537,058
Distribution and service fees 23,217
Other 100,885
Other payables and accrued expenses 68,354
Total liabilities 62,941,064
Net assets
Capital paid-in 172,163,121
Accumulated net realized gain on investments
and foreign currency transactions 22,349,290
Net unrealized appreciation of investments
and translation of assets and liabilities
in foreign currencies 73,810,918
Accumulated net investment loss (2,015,521)
Net assets $266,307,808
Net asset value per share
Based on net asset values and shares outstanding --
the Fund has an unlimited number of shares
authorized with no par value
Class A ($133,242,143 [DIV] 2,966,779 shares) $44.91
Class B ($120,627,880 [DIV] 2,935,400 shares) $41.09
Class C ($12,437,785 [DIV] 302,660 shares) $41.09
Maximum offering price per share
Class A 1 ($44.91 [DIV] 95%) $47.27
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.
14
FINANCIAL STATEMENTS
OPERATIONS
For the period ended
April 30, 2005
(unaudited) 1
This Statement
of Operations
summarizes the
Fund's investment
income earned and
expenses incurred
in operating the
Fund. It also shows
net gains (losses)
for the period
stated.
Investment income
Dividends (net of foreign withholding taxes of $35,809) $529,734
Interest 97,859
Securities lending 48,523
Total investment income 676,116
Expenses
Investment management fees 1,055,730
Class A distribution and service fees 195,852
Class B distribution and service fees 648,438
Class C distribution and service fees 65,223
Transfer agent fees 533,948
Printing 47,927
Custodian fees 31,121
Accounting and legal services fees 30,575
Miscellaneous 26,359
Registration and filing fees 21,551
Professional fees 20,997
Trustees' fees 4,723
Securities lending fees 2,319
Total expenses 2,684,763
Net investment loss (2,008,647)
Realized and unrealized gain (loss)
Net realized gain (loss) on
Investments 26,374,943
Foreign currency transactions (2,007)
Change in net unrealized appreciation (depreciation) of
Investments (4,190,838)
Translation of assets and liabilities in foreign currencies (121)
Net realized and unrealized gain 22,181,977
Increase in net assets from operations $20,173,330
1 Semiannual period from 11-1-04 through 4-30-05.
See notes to
financial statements.
15
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
difference reflects
earnings less
expenses, any
investment
gains and losses,
distributions, if
any, paid to
shareholders and
the net of Fund
share transactions.
Year Period
ended ended
10-31-04 4-30-05 1
Increase (decrease) in net assets
From operations
Net investment loss ($4,377,016) ($2,008,647)
Net realized gain 22,478,975 26,372,936
Change in net unrealized
appreciation (depreciation) 5,299,222 (4,190,959)
Increase in net assets resulting
from operations 23,401,181 20,173,330
Distributions to shareholders
From net realized gain
Class A -- (4,490,378)
Class B -- (5,195,070)
Class C -- (513,947)
-- (10,199,395)
From Fund share transactions (35,461,797) (15,566,298)
Net assets
Beginning of period 283,960,787 271,900,171
End of period 2 $271,900,171 $266,307,808
1 Semiannual period from 11-1-04 through 4-30-05. Unaudited.
2 Includes accumulated net investment loss of $6,874 and $2,015,521,
respectively.
See notes to
financial statements.
16
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 10-31-01 10-31-02 10-31-03 10-31-04 4-30-05 1
Per share operating performance
Net asset value,
beginning of period $34.28 $49.99 $40.06 $34.67 $39.79 $43.22
Net investment loss 2 (0.33) (0.37) (0.41) (0.38) (0.47) (0.24)
Net realized and unrealized
gain (loss) on investments 16.04 (5.99) (4.98) 5.50 3.90 3.50
Total from
investment operations 15.71 (6.36) (5.39) 5.12 3.43 3.26
Less distributions
From net realized gain -- (3.57) -- -- -- (1.57)
Net asset value, end of period $49.99 $40.06 $34.67 $39.79 $43.22 $44.91
Total return 3 (%) 45.83 (13.56) (13.45) 14.77 8.62 7.74 4
Ratios and supplemental data
Net assets, end of period
(in millions) $178 $145 $110 $117 $125 $133
Ratio of expenses
to average net assets (%) 1.50 1.50 1.59 1.67 1.57 1.60 5
Ratio of net investment loss
to average net assets (%) (0.75) (0.87) (1.06) (1.04) (1.08) (1.10) 5
Portfolio turnover (%) 147 91 85 95 54 27
See notes to
financial statements.
17
FINANCIAL HIGHLIGHTS
CLASS B SHARES
Period ended 10-31-00 10-31-01 10-31-02 10-31-03 10-31-04 4-30-05 1
Per share operating performance
Net asset value,
beginning of period $32.83 $47.55 $37.68 $32.39 $36.91 $39.81
Net investment loss 2 (0.60) (0.63) (0.63) (0.59) (0.72) (0.37)
Net realized and unrealized
gain (loss) on investments 15.32 (5.67) (4.66) 5.11 3.62 3.22
Total from
investment operations 14.72 (6.30) (5.29) 4.52 2.90 2.85
Less distributions
From net realized gain -- (3.57) -- -- -- (1.57)
Net asset value, end of period $47.55 $37.68 $32.39 $36.91 $39.81 $41.09
Total return 3 (%) 44.84 (14.18) (14.04) 13.95 7.86 7.36 4
Ratios and supplemental data
Net assets, end of period
(in millions) $294 $231 $162 $154 $134 $121
Ratio of expenses
to average net assets (%) 2.20 2.20 2.29 2.37 2.27 2.30 5
Ratio of net investment loss
to average net assets (%) (1.46) (1.57) (1.76) (1.74) (1.77) (1.81) 5
Portfolio turnover (%) 147 91 85 95 54 27
See notes to
financial statements.
18
FINANCIAL HIGHLIGHTS
CLASS C SHARES
Period ended 10-31-00 10-31-01 10-31-02 10-31-03 10-31-04 4-30-05 1
Per share operating performance
Net asset value,
beginning of period $32.83 $47.55 $37.68 $32.39 $36.91 $39.81
Net investment loss 2 (0.64) (0.63) (0.63) (0.59) (0.72) (0.37)
Net realized and unrealized
gain (loss) on investments 15.36 (5.67) (4.66) 5.11 3.62 3.22
Total from
investment operations 14.72 (6.30) (5.29) 4.52 2.90 2.85
Less distributions
From net realized gain -- (3.57) -- -- -- (1.57)
Net asset value, end of period $47.55 $37.68 $32.39 $36.91 $39.81 $41.09
Total return 3 (%) 44.84 (14.18) (14.04) 13.95 7.86 7.36 4
Ratios and supplemental data
Net assets, end of period
(in millions) $14 $15 $12 $13 $13 $12
Ratio of expenses
to average net assets (%) 2.20 2.20 2.29 2.37 2.27 2.30 5
Ratio of net investment loss
to average net assets (%) (1.50) (1.58) (1.76) (1.73) (1.78) (1.80) 5
Portfolio turnover (%) 147 91 85 95 54 27
1 Semiannual period from 11-1-04 through 4-30-05. Unaudited.
2 Based on the average of the shares outstanding.
3 Assumes dividend reinvestment and does not reflect the effect of sales
charges.
4 Not annualized.
5 Annualized.
See notes to
financial statements.
19
NOTES TO
STATEMENTS
Unaudited
Note A
Accounting policies
John Hancock Health Sciences Fund (the "Fund") is a non-diversified series
of John Hancock World Fund, 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 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 close of a foreign market, at fair
value as determined in good faith in accordance with procedures approved
by the Trustees. Short-term debt investments which have a remaining
maturity of 60 days or less may be 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.
20
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.
Distribu tion 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, 2005.
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. On April 30, 2005, the Fund loaned securities having a
market value of $60,702,765 collateralized by cash in the
21
amount of $61,916,820. 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, 2005.
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.
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, if any, on the ex-dividend date. Dis tri bu tions
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 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 quarterly management fee
to the Adviser equivalent, on an annual basis, to the
22
sum of: (a) 0.80% of the first $200,000,000 of the Fund's average daily
net asset value and (b) 0.70% of the Fund's daily average net asset value
in excess of $200,000,000.
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 shares are assessed up-front sales charges. During the period
ended April 30, 2005, JH Funds received net up-front sales charges of
$82,103 with regard to sales of Class A shares. Of this amount, $11,517
was retained and used for printing prospectuses, advertising, sales
literature and other purposes, $54,546 was paid as sales commissions to
unrelated broker-dealers and $16,040 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.
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, 2005, CDSCs
received by JH Funds amounted to $125,967 for Class B shares and $404 for
Class C shares.
The Fund has a transfer agent agreement with John Hancock Signature
Services, Inc. ("Signature Services"), an indirect subsidiary of JHLICo.
For Class A, Class B and Class C shares, the Fund pays a monthly transfer
agent fee at an annual rate of 0.05% of each class'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 agreed to voluntarily reduce the Fund's asset-based portion of
the transfer agent fee if the total transfer agent fee exceeds the Lipper,
Inc. median transfer agency fee for comparable mutual funds by 0.05%.
There were no transfer agent fee reductions during the period ended April
30, 2005. Signature Services reserves the right to terminate this
limitation at any time.
The Fund has an agreement with the Adviser to perform necessary tax,
accounting and legal services for the Fund. The compensation for the
period amounted to $30,575. The Fund also paid the Adviser the amount of
$116 for certain publishing services, included in the printing fees.
Mr. James A. Shepherdson is a director and officer of the
23
Adviser, as well as affiliated Trustee of the Fund, and is compensated by
the Adviser. 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 Compensation 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, reinvested and
repurchased during the last two periods, along with the corresponding
dollar value.
Year Ended 10-31-04 Period Ended 4-30-05 1
Shares Amount Shares Amount
Class A shares
Sold 838,297 $37,031,926 347,040 $15,406,316
Distributions reinvested -- -- 100,940 4,292,992
Repurchased (881,741) (38,668,127) (376,474) (16,755,833)
Net increase (decrease) (43,444) ($1,636,201) 71,506 $2,943,475
Class B shares
Sold 570,109 $22,972,932 94,296 $3,860,748
Distributions reinvested -- -- 127,562 4,978,739
Repurchased (1,396,371) (56,382,735) (641,347) (26,131,324)
Net decrease (826,262) ($33,409,803) (419,489) ($17,291,837)
Class C shares
Sold 92,939 $3,788,765 26,451 $1,083,857
Distributions reinvested -- -- 10,062 392,718
Repurchased (105,002) (4,204,558) (65,963) (2,694,511)
Net decrease (12,063) ($415,793) (29,450) ($1,217,936)
Net decrease (881,769) ($35,461,797) (377,433) ($15,566,298)
1 Semiannual period from 11-1-04 through 4-30-05. Unaudited.
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, 2005, aggregated $70,688,447 and $104,559,633,
respectively.
The cost of investments owned on April 30, 2005, including short-term
investments, for federal income tax purposes, was $257,528,031. Gross
unrealized appreciation and depreciation of investments aggregated
$75,628,704 and $4,081,222, respectively, resulting in net unrealized
appreciation of
24
$71,547,482. The difference between book basis and tax basis net
unrealized appreciation of investments is attributable primarily to the
tax deferral of losses certain sales of securities.
Note E
Proposed
reorganization
On March 8, 2005, the Trustees approved the reorganization of John Hancock
Biotechnology Fund into the Fund. The reorganization is scheduled to take
place after the close of business on June 10, 2005, subject to approval by
shareholders.
Note F
Shareholder meeting
On December 1, 2004, a Special Meeting of shareholders of the Fund was
held to elect nine Trustees effective January 1, 2005.
Proxies covering 5,416,269 shares of beneficial interest were voted at the
meeting.
The shareholders elected the following Trustees to serve until their
respective successors are duly elected and qualified, with the votes
tabulated as follows:
WITHHELD
FOR AUTHORITY
- ---------------------------------------------------------------------
James F. Carlin 5,298,019 118,250
Richard P. Chapman, Jr. 5,292,095 124,174
William H. Cunningham 5,292,069 124,200
Ronald R. Dion 5,296,819 119,450
Charles L. Ladner 5,293,897 122,372
Dr. John A. Moore 5,293,818 122,451
Patti McGill Peterson 5,291,747 124,522
Steven R. Pruchansky 5,294,370 121,899
James A. Shepherdson 5,293,700 122,569
25
OUR FAMILY
OF FUNDS
- -----------------------------------------------------------
Equity Balanced Fund
Classic Value Fund
Core Equity Fund
Focused Equity Fund
Greater China Opportunities Fund
Growth Trends Fund
International Fund
Large Cap Equity Fund
Large Cap Select Fund
Mid Cap Growth Fund
Multi Cap Growth Fund
Small Cap Fund
Small Cap Equity Fund
Small Cap Growth Fund
Sovereign Investors Fund
U.S. Global Leaders Growth Fund
- -----------------------------------------------------------
Sector 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
A fund's investment objectives, risks, charges and expenses are included
in the prospectus and should be considered carefully before investing. For
a prospectus, call your financial professional, call John Hancock Funds at
1-800-225-5291 or visit our Web site at www.jhfunds.com. Please read the
prospectus carefully before investing or sending money.
26
ELECTRONIC
DELIVERY
Now available from
John Hancock Funds
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the U.S. mail, we'll notify you by e-mail when these documents are
available for online viewing.
How does electronic delivery benefit you?
* No more waiting for the mail to arrive; you'll receive an e-mail
notification as soon as the document is ready for online viewing.
* Reduces the amount of paper mail you receive from John Hancock Funds.
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Sign up for electronic delivery today at www.jhfunds.com/edelivery
27
OUR WEB SITE
A wealth of information --
www.jhfunds.com
View the latest information for your account.
- ------------------------------------------------
Transfer money from one account to another.
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Get current quotes for major market indexes.
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Use our online calculators to help you with your
financial goals.
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28
For more information
The Fund's proxy voting policies, procedures and records are available
without charge, upon request:
By phone On the Fund's Web site On the SEC's Web site
1-800-225-5291 www.jhfunds.com/proxy www.sec.gov
Trustees
Charles L. Ladner, Chairman*
James F. Carlin
Richard P. Chapman, Jr.*
William H. Cunningham
Ronald R. Dion
Dr. John A. Moore*
Patti McGill Peterson*
Steven R. Pruchansky
James A. Shepherdson
Lt. Gen. Norman H. Smith,
USMC (Ret.)
*Members of the Audit Committee
Officers
James A. Shepherdson
President and
Chief Executive Officer
William H. King
Vice President and Treasurer
Investment adviser
John Hancock Advisers, LLC
101 Huntington Avenue
Boston, MA 02199-7603
Principal distributor
John Hancock Funds, LLC
101 Huntington Avenue
Boston, MA 02199-7603
Custodian
The Bank of New York
One Wall Street
New York, NY 10286
Transfer agent
John Hancock Signature
Services, Inc.
1 John Hancock Way, Suite 1000
Boston, MA 02217-1000
Legal counsel
Wilmer Cutler Pickering
Hale and Dorr LLP
60 State Street
Boston, MA 02109-1803
The Fund's investment objective, risks, charges and expenses are included
in the prospectus and should be considered carefully before investing. For
a prospectus, call your financial professional, call John Hancock Funds at
1-800-225-5291, or visit the Fund's Web site at www.jhfunds.com. Please
read the prospectus carefully before investing or sending money.
How to contact us
Internet www.jhfunds.com
Mail Regular mail: Express mail:
John Hancock John Hancock
Signature Services, Inc. Signature Services, Inc.
1 John Hancock Way, Suite 1000 Mutual Fund Image Operations
Boston, MA 02217-1000 529 Main Street
Charlestown, MA 02129
Phone Customer service representatives 1-800-225-5291
24-hour automated information 1-800-338-8080
TDD line 1-800-554-6713
A listing of month-end portfolio holdings is available on our Web site,
www.jhfunds.com. A more detailed portfolio holdings summary is available
on a quarterly basis 60 days after the fiscal quarter on our Web site or
upon request by calling 1-800-225-5291, or on the Securities and Exchange
Commission's Web site, www.sec.gov.
29
[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.jhfunds.com/edelivery
This report is for the information of
the shareholders of John Hancock
Health Sciences Fund.
280SA 4/05
6/05
ITEM 2. CODE OF ETHICS.
As of the end of the period, April 30, 2005, the registrant has adopted a
code of ethics, as defined in Item 2 of Form N-CSR, that applies to its
Chief Executive Officer, Chief Financial Officer and Treasurer
(respectively, the principal executive officer, the principal financial
officer and the principal accounting officer, the "Senior Financial
Officers"). A copy of the code of ethics is filed as an exhibit to this
Form N-CSR.
The code of ethics was amended effective February 1, 2005 to address new
Rule 204A-1 under the Investment Advisers Act of 1940 and to make other
related changes.
The most significant amendments were:
(a) Broadening of the General Principles of the code to cover compliance
with all federal securities laws.
(b) Eliminating the interim requirements (since the first quarter of 2004)
for access persons to preclear their personal trades of John Hancock mutual
funds. This was replaced by post-trade reporting and a 30 day hold
requirement for all employees.
(c) A new requirement for "heightened preclearance" with investment
supervisors by any access person trading in a personal position worth
$100,000 or more.
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 at this time.
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. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
The registrant has adopted procedures by which shareholders may recommend
nominees to the registrant's Board of Trustees. A copy of the procedures
is filed as an exhibit to this Form
N-CSR. See attached "John Hancock Funds - Administration Committee Charter"
and "John Hancock Funds - Governance Committee Charter".
ITEM 11. CONTROLS AND PROCEDURES.
(a) Based upon their evaluation of the registrant's disclosure
controls and procedures as conducted within 90 days of the filing date of
this Form N-CSR, the registrant's principal executive officer and principal
financial officer have concluded that those disclosure controls and
procedures provide reasonable assurance that the material information
required to be disclosed by the registrant on this report is recorded,
processed, summarized and reported within the time periods specified in the
Securities and Exchange Commission's rules and forms.
(b) There were no changes in the registrant's internal control over
financial reporting that occurred during the 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 12. EXHIBITS.
(a)(1) Code of Ethics for Senior Financial Officers is attached.
(a)(2) 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) 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" and "John
Hancock Funds - Governance 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 World Fund
By:
------------------------------
James A. Shepherdson
President and Chief Executive Officer
Date: June 30, 2005
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 30, 2005
By:
------------------------------
William H. King
Vice President and Treasurer
Date: June 30, 2005