Annual Report
for John Hancock Variable Series Trust I
December 31, 2003
[LOGO] John Hancock
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Not FDIC Insured Not Bank Guaranteed May Lose Value
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Not a Deposit Not Insured by Any Federal Government Agency
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Inception: May 1, 1996
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Small Cap Emerging Growth Fund (FORMERLY SMALL CAP EQUITY FUND)
Wellington Management Company, LLP Steven C. Angeli
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.. In 2003, the Fund returned 48.83%, outperforming its custom benchmark.
.. On May 1st, the sub-advisor was changed to Wellington Management Co. Since
that date, the Fund has outperformed its benchmark, the Russell 2000 Growth
Index.
.. Since May 1st, the Fund outperformed its benchmark due to favorable stock
selection decisions, while sector allocation decisions detracted. Stock
selection in the health care sector was the biggest contributor, followed
by the information technology sector. The Fund's modest allocation to cash
was the biggest detractor to relative returns, as all other sectors had
positive returns.
.. The Fund's exposure to health care was the largest contributor to absolute
performance, followed by information technology. There were no detractors
to absolute returns since all sectors had positive absolute returns.
.. The top and bottom contributors to absolute returns came from a variety of
sectors. The biggest contributors to performance were Red Hat, ASE Test,
and HealthExtras. The main detractors included Enterasys Networks and
Hollywood Entertainment Corp.
.. At year-end, the portfolio was overweight the consumer discretionary
sector, while underweight in the information technology sector.
.. The manager employs bottom-up, fundamental research to identify
attractively valued growth stocks. The Fund's sector allocations are
broadly diversified but are primarily driven by stock selection.
[CHART]
Line Chart
Historical Fund Return
$10,000
Investment made 5/1/96
(Fund Inception Date)
Small Cap
Emerging Growth Small Cap Emerging
Fund Growth Benchmark (1)
--------------- ------------------
5/01/1996 $10,000.00 $10,000.00
5/31/1996 10,231.73 10,253.00
6/30/1996 10,126.04 10,132.01
7/31/1996 9,630.09 9,592.99
8/31/1996 10,161.38 10,009.33
9/30/1996 10,449.97 10,282.58
10/31/1996 10,340.15 10,401.86
11/30/1996 10,678.01 10,961.48
12/31/1996 11,033.49 11,317.73
1/31/1997 11,114.52 11,492.02
2/28/1997 10,927.45 11,601.20
3/31/1997 10,594.17 11,290.28
4/30/1997 10,831.29 11,456.25
5/31/1997 11,818.21 12,368.17
6/30/1997 12,512.51 12,994.00
7/31/1997 13,256.14 13,539.75
8/31/1997 13,389.29 13,755.03
9/30/1997 14,242.08 14,669.74
10/31/1997 13,761.11 14,270.72
11/30/1997 13,862.77 14,427.70
12/31/1997 13,855.26 14,916.80
1/31/1998 13,513.54 14,646.80
2/28/1998 14,524.23 15,531.47
3/31/1998 15,129.82 16,162.05
4/30/1998 15,213.56 16,241.24
5/31/1998 14,450.38 15,666.30
6/30/1998 14,449.78 15,578.57
7/31/1998 13,262.11 14,358.77
8/31/1998 10,895.23 12,110.18
9/30/1998 11,407.11 12,794.41
10/31/1998 11,726.51 13,174.40
11/30/1998 12,312.68 13,531.43
12/31/1998 13,029.17 13,956.32
1/31/1999 12,708.23 13,639.51
2/28/1999 11,869.37 12,707.93
3/31/1999 11,818.92 12,602.45
4/30/1999 12,612.00 13,753.06
5/31/1999 12,790.33 14,175.28
6/30/1999 13,622.04 14,688.42
7/31/1999 13,436.12 14,340.31
8/31/1999 12,841.31 13,816.89
9/30/1999 12,612.59 13,540.55
10/31/1999 12,358.41 13,269.74
11/30/1999 12,260.42 13,338.74
12/31/1999 12,582.73 13,748.24
1/31/2000 11,847.60 13,389.41
2/29/2000 12,338.26 14,207.50
3/31/2000 12,566.66 14,274.28
4/30/2000 12,779.68 14,358.50
5/31/2000 12,662.80 14,138.81
6/30/2000 12,732.80 14,551.66
7/31/2000 12,995.66 15,036.24
8/31/2000 13,753.86 15,708.35
9/30/2000 13,766.35 15,618.82
10/31/2000 13,760.05 15,562.59
11/30/2000 10,725.63 13,964.31
12/31/2000 11,463.94 15,163.85
1/31/2001 13,016.00 15,953.88
2/28/2001 11,049.57 14,907.31
3/31/2001 10,136.03 14,178.34
4/30/2001 11,309.76 15,287.09
5/31/2001 11,648.62 15,663.15
6/30/2001 11,925.17 16,203.53
7/31/2001 11,168.88 15,326.92
8/31/2001 10,641.88 14,831.86
9/30/2001 8,692.54 12,835.49
10/31/2001 9,418.37 13,586.37
11/30/2001 10,217.98 14,637.95
12/31/2001 11,031.01 15,541.11
1/31/2002 10,623.32 15,379.48
2/28/2002 10,376.77 14,958.09
3/31/2002 11,643.45 16,160.72
4/30/2002 11,257.82 16,307.78
5/31/2002 10,623.43 15,583.71
6/30/2002 9,911.82 14,810.76
7/31/2002 8,279.77 12,574.34
8/31/2002 8,121.51 12,541.64
9/30/2002 7,365.38 11,641.15
10/31/2002 7,534.57 12,014.83
11/30/2002 8,405.94 13,086.56
12/31/2002 7,919.40 12,357.64
1/31/2003 7,581.58 12,015.33
2/28/2003 7,290.25 11,652.47
3/31/2003 7,364.33 11,802.78
4/30/2003 8,121.20 12,921.69
5/31/2003 8,985.52 14,377.96
6/30/2003 9,319.89 14,655.46
7/31/2003 9,978.95 15,763.41
8/31/2003 10,517.84 16,609.90
9/30/2003 10,170.66 16,189.67
10/31/2003 11,132.94 17,588.46
11/30/2003 11,515.98 18,161.84
12/31/2003 11,786.13 18,243.57
Value on 12/31/03:
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$11,786 Small Cap Emerging Growth Fund
$18,244 Small Cap Emerging Growth Benchmark(1)
MORNINGSTAR CATEGORY+:
.. Small Growth
MORNINGSTAR RISK+:
.. High (VL/VUL)
.. High (VA)
MORNINGSTAR RATING+:
.. **** (VL/VUL)
.. **** (VA)
TOP TEN HOLDINGS (as of December 31, 2003)
% of
Assets
------
Beverly Enterprises, Inc. 2.2%
Sirius Satellite Radio, Inc. 2.1%
Yellow Roadway Corp. 2.0%
Arch Coal, Inc. 1.7%
American Tower Corp. 1.7%
Red Hat, Inc. 1.6%
Orthofix International 1.6%
Healthextras, Inc. 1.6%
Crown Castle International Corp. 1.6%
Wilson Greatbatch Technologies, Inc. 1.6%
AVERAGE ANNUAL TOTAL RETURNS*
Small Cap Emerging Small Cap Emerging
Growth Fund Growth Benchmark(1)
------------------ -------------------
1 Year 48.83% 47.63%
3 Years 0.93 6.36
5 Years -1.99 5.50
Since Inception (5/1/96) 2.17 8.16
SECTOR/INDUSTRY ALLOCATION (as of December 31, 2003)
% of
Assets
------
Information Technology 25.69%
Health Care 22.07%
Consumer Discretionary 18.64%
Industrials 15.82%
Financials 7.33%
Energy 3.61%
Telecommunication
Services 3.23%
Consumer Staples 1.89%
Materials 1.71%
(1) The Small Cap Emerging Growth benchmark represents the Russell 2000 Value
Index from May 1996 to October 2000, the Russell 2000 from November 2000 to
April 2003 and then the Russell 2000 Growth from May 2003 to present.
* Total returns are for the period ended December 31, 2003. Returns represent
past performance, assume reinvestment of all distributions and are not
indicative of future performance. Investment returns and principal value of
fund shares will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. Small-company investing entails special
risks as outlined in the prospectus. The performance of the fund on this
page is reported net of Trust level charges (i.e. investment management
fees and operating expenses). It does not reflect expense and charges of
the applicable separate accounts and variable products, all of which vary
to a considerable extent and are described in your product prospectus.
Performance would be lower if expenses and charges of the separate accounts
and products were reflected.
+ Source: MorningStar, Inc. Data as of 12/31/03. VL represents Variable Life
subaccounts, VUL represents Variable Universal Life subaccounts and VA
represents Variable Annuity subaccounts Hancock VL/VUL subaccounts were
rated against 338 VL/VUL subaccounts and 528 VA subaccounts in the
Morningstar Small Growth category. This represents the Morningstar 3 year
rating.
STATEMENT OF ASSETS AND LIABILITIES
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2003
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(000's Omitted)
ASSETS
Long term investments at cost (including $19,013 of
securities loaned (Note B)) ..................................... $ 71,940
Net unrealized appreciation of investments ......................... 13,871
Short-term investments at value .................................... 20,806
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Total investments ............................................ 106,617
Receivable for:
Investments sold ................................................ 1,508
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Total assets ....................................................... 108,125
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LIABILITIES
Payables for:
Investments purchased ........................................... 568
Fund shares purchased ........................................... 1,301
Collateral for securities on loan ............................... 19,675
Other liabilities ............................................... 2
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Total liabilities .................................................. 21,546
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Net assets ......................................................... $ 86,579
========
Shares of beneficial interest outstanding .......................... 10,684
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Net asset value per share .......................................... $ 8.10
========
Composition of net assets:
Capital paid-in ................................................. $ 94,993
Accumulated net realized loss on investments,
futures and foreign currency transactions .................... (22,285)
Net unrealized appreciation of investments ...................... 13,871
--------
Net assets ......................................................... $ 86,579
========
STATEMENT OF OPERATIONS
JOHN HANCOCK VARIABLE SERIES TRUST I
For the Year Ended December 31, 2003
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(000's Omitted)
INVESTMENT INCOME
Interest ...................................................... $ 47
Dividends ..................................................... 253
Securities lending ............................................ 34
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Total investment income ............................................. 334
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EXPENSES
Investment advisory fee ....................................... 659
Auditors fees ................................................. 8
Custodian fees ................................................ 89
Legal fees .................................................... 4
Printing & mailing fees ....................................... 22
Trustees' fees ................................................ 2
Other fees .................................................... 2
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Total expenses ...................................................... 786
Less expenses reimbursed ...................................... (62)
Less custodian expense reduction offset by
commission recapture arrangement (Note C) .................. (6)
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Net expenses ........................................................ 718
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Net investment loss ................................................. (384)
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REALIZED AND UNREALIZED GAIN (LOSS)
Net realized loss on investments ................................. (4,652)
Change in unrealized appreciation on
investments ................................................... 32,639
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Net realized and unrealized gain .................................... 27,987
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Net increase in net assets resulting from
operations ....................................................... 27,603
=======
See notes to financial statements.
STATEMENT OF CHANGES IN NET ASSETS
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2003
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(000's Omitted)
Year Ended Year Ended
December 31, December 31,
2003 2002
------------ ------------
INCREASE (DECREASE) IN NET ASSETS
From operations
Net investment income (loss) ......................................... $ (384) $ 114
Net realized loss .................................................... (4,652) (6,232)
Change in net unrealized appreciation (depreciation) ................. 32,639 (13,044)
-------- --------
Net increase (decrease) in net assets resulting from operations ... 27,603 (19,162)
Distributions to shareholders from:
Net investment income ................................................ (71) (114)
Realized gains ....................................................... (11,472)
-------- --------
Decrease in net assets resulting from distributions ............... (11,543) (114)
From fund share transactions:
Proceeds from shares sold ............................................ 50,786 40,696
Distributions reinvested ............................................. 11,543 114
Payment for shares redeemed .......................................... (42,137) (42,400)
-------- --------
Increase (decrease) in net assets from fund share transactions .... 20,192 (1,590)
-------- --------
NET INCREASE (DECREASE) IN NET ASSETS ................................... 36,252 (20,866)
NET ASSETS
Beginning of Period .................................................. 50,327 71,193
-------- --------
End of Period ........................................................ $ 86,579 $ 50,327
======== ========
Analysis of fund share transactions:
Sold ................................................................. 6,929 5,357
Reinvested ........................................................... 1,458 19
Redeemed ............................................................. (5,696) (5,481)
-------- --------
Net increase (decrease) in fund shares outstanding ...................... 2,691 (105)
======== ========
See notes to financial statements.
FINANCIAL HIGHLIGHTS
JOHN HANCOCK VARIABLE SERIES TRUST I
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Selected data for each share of beneficial interest outstanding throughout the
period indicated:
Small Cap Emerging Growth Fund
--------------------------------------------------------------
Year Ended December 31,
--------------------------------------------------------------
2003(e) 2002 2001 2000(c) 1999
------- ------- ------- ------- -------
Net Assets Value at Beginning of Period ...................... $ 6.30 $ 8.79 $ 9.14 $ 10.92 $ 11.59
Income from Investment Operations:
Net Investment Income (Loss) .............................. (0.03) 0.01 0.01 0.14 0.09
Net Realized and Unrealized Gain (Loss) on
Investments(a) ......................................... 3.07 (2.49) (0.35) (1.13) (0.50)
------- ------- ------- ------- -------
Total From Investment Operations .......................... 3.04 (2.48) (0.34) (0.99) (0.41)
Less Distributions:
Distribution from Net Investment Income ................... (0.01) (0.01) (0.01) (0.15) (0.07)
Distribution from Net Realized Gains on Investments ....... (1.23) (0.14) (0.01)
Distribution from Excess of Net Investment Income/Gains ... (0.20) (0.18)
Distribution from Capital Paid-in ......................... (0.30)
------- ------- ------- ------- -------
Total Distributions ....................................... (1.24) (0.01) (0.01) (0.79) (0.26)
------- ------- ------- ------- -------
Net Assets Value at End of Period ............................ $ 8.10 $ 6.30 $ 8.79 $ 9.14 $ 10.92
======= ======= ======= ======= =======
Total Investment Return(b) ................................... 48.83% (28.21)% (3.78)% (8.89)% (3.43)%
Ratios/Supplemental Data:
Ratio of Operating Expenses to Average Net Assets ......... 1.11%(d)(f) 1.00%(d) 1.00%(d) 0.92%(d) 0.95%(d)
Ratio of Net Investment Income (Loss) to Average Net
Assets ................................................. (0.59)% 0.19% 0.06% 1.25% 0.78%
Portfolio Turnover Rate ................................... 235.48% 45.03% 60.73% 189.57% 117.33%
Net Assets End of Period (000s Omitted) ...................... $86,579 $50,327 $71,193 $70,031 $68,900
(a) The amount shown at this caption for each share outstanding throughout the
year may not accord with the change in the aggregate gains and losses in
the portfolio securities for the year because of the timing of the
purchases and withdrawals of the shares in relation to the fluctuating
market values of the portfolio.
(b) The performance does not reflect expenses and charges of the applicable
separate accounts and variable products, all of which vary to a
considerable extent and are described in your product's prospectus.
(c) The Fund entered into a new sub-advisory agreement with Capital Guardian
Trust Company during the period shown.
(d) Expense ratio is net of expense reimbursements. Had such reimbursements not
been made the expense ratio would have been 1.21%, 1.04%, 1.02%, .95%, and
.96%, for the years ended December 31, 2003, 2002, 2001, 2000, and 1999,
respectively.
(e) The fund entered into a new sub-advisory agreement with Wellington
Management Company during the period shown.
(f) The Fund is required to calculate an expense ratio without taking into
consideration any expense reductions related to expense offset
arrangements.
SCHEDULE OF INVESTMENTS
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2003
- --------------------------------------------------------------------------------
SMALL CAP EMERGING GROWTH FUND
Market
Name of Issuer Shares Value
-------------- ------- -------
(000's)
COMMON STOCK
Aerospace & Defense - 1.3%
Moog, Inc. - Cl. A * ................................... 22,700 $1,121
Air Freight & Couriers - 1.1%
Forward Air Corp. * .................................... 34,550 950
Airlines - 2.3%
AMR Corp. * ............................................ 91,990 1,191
Arkansas Best Corp. .................................... 26,270 825
------
2,016
Banks - 2.4%
Amcore Financial, Inc. ................................. 29,770 804
First Niagara Financial Group, Inc. .................... 40,400 602
Hancock Holding Co. .................................... 12,750 696
------
2,102
Biotechnology - 4.0%
Abgenix, Inc. * ........................................ 58,000 723
Alkermes, Inc. * ....................................... 67,120 906
Ciphergen Biosystems, Inc. * ........................... 34,590 389
CV Therapeutics, Inc. * ................................ 21,900 321
Exelixis, Inc. * ....................................... 60,047 425
Kosan Biosciences, Inc. * .............................. 22,610 223
Telik, Inc. * .......................................... 19,020 437
------
3,424
Commercial Services & Supplies - 8.9%
DiamondCluster, Inc. * ................................. 96,750 987
Gevity HR., Inc. ....................................... 26,970 600
LECG Corp .............................................. 29,840 683
MDC Holdings, Inc. ..................................... 20,540 1,325
MPS Group, Inc. * ...................................... 66,260 619
Sirva, Inc. * .......................................... 34,440 673
Strayer Education, Inc. ................................ 6,210 676
The Bisys Group, Inc. * ................................ 73,200 1,089
Universal Technical Institute, Inc. * .................. 6,600 198
University of Phoenix Online * ......................... 12,220 842
------
7,692
Communications Equipment - 3.8%
American Tower Corp. - Cl. A ........................... 132,330 1,432
Plantronics, Inc. * .................................... 35,410 1,156
Polycom, Inc. * ........................................ 34,290 669
------
3,257
Computers & Peripherals - 2.1%
Dot Hill Systems Corp. * ............................... 1,730 26
Overland Storage, Inc. * ............................... 47,960 902
Tumbleweed Communications Corp. * ...................... 101,610 851
------
1,779
Construction & Engineering - 2.1%
Navigant Consulting, Inc. * ............................ 50,040 944
Washington Group International, Inc. * ................. 26,170 $ 889
------
1,833
Diversified Financials - 1.2%
Affiliated Managers Group, Inc. * ...................... 15,170 1,056
Diversified Telecommunication Services - 1.5%
Crown Castle International Corp. * ..................... 121,580 1,341
Electrical Equipment - 1.2%
Techtronic Industries, Ltd. - ADR ...................... 75,010 1,041
Electronic Equipment & Instruments - 2.6%
Asyst Technologies, Inc. * ............................. 55,280 959
ON Semiconductor Corp. * ............................... 202,680 1,307
------
2,266
Energy Equipment & Services - 0.6%
Quantum Fuel Technologies * ............................ 59,340 477
Finance - 1.2%
United Holdings Corp. .................................. 77,210 1,008
Food Products - 1.9%
Peets Coffee & Tea, Inc. * ............................. 36,490 635
Sunopta, Inc. * ........................................ 107,140 989
------
1,624
Health Care Equipment & Supplies - 7.9%
Abaxis, Inc. - Sr. Notes ............................... 38,630 700
DJ Orthopedics, Inc. * ................................. 32,640 875
Merit Medical Systems, Inc. * .......................... 53,008 1,180
Orthofix International * ............................... 27,890 1,366
Respironics, Inc. * .................................... 17,650 796
Wilson Greatbatch Technologies, Inc. * ................. 31,490 1,331
Zoll Medical Corp. * ................................... 17,140 608
------
6,856
Health Care Providers & Services - 5.5%
Amsurg Corp ............................................ 18,250 691
Beverly Enterprises, Inc. * ............................ 221,290 1,901
Genesis Healthcare Corp. * ............................. 25,100 572
Odyssey Healthcare, Inc. * ............................. 35,415 1,036
Psychiatric Solutions, Inc. * .......................... 28,900 604
------
4,804
Hotels Restaurants & Leisure - 4.5%
Cumulus Media, Inc. - Cl. A * .......................... 51,450 1,132
Rare Hospitality International, Inc. * ................. 25,830 632
Scientific Games Corp. - Sr. Notes ..................... 70,150 1,193
Wynn Resorts, Ltd. * ................................... 32,850 920
------
3,877
Insurance - 4.0%
Arch Capital Group, Ltd. * ............................. 29,540 1,177
Healthextras, Inc. * ................................... 100,660 1,349
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2003
- --------------------------------------------------------------------------------
SMALL CAP EMERGING GROWTH FUND
Market
Name of Issuer Shares Value
-------------- ------- -------
(000's)
COMMON STOCK - Continued
Insurance - Continued
Platinum Underwriters Holdings ......................... 31,660 $ 950
-------
3,476
Internet Software & Services - 1.6%
Embarcadero Technologies, Inc. * ....................... 50,800 810
WebMethods, Inc. * ..................................... 63,770 584
-------
1,394
IT Consulting & Services - 1.0%
Sapient Corp ........................................... 153,920 862
Media - 4.0%
GrayTelevison, Inc. .................................... 59,990 907
Lin TV Corp. - Cl. A * ................................. 30,810 795
Sirius Satellite Radio, Inc. * ......................... 561,060 1,773
-------
3,475
Multiline Retail - 1.9%
Freds, Inc. ............................................ 22,700 703
Insight Enterprises, Inc. * ............................ 48,580 914
-------
1,617
Oil & Gas - 5.8%
Arch Coal, Inc. ........................................ 47,210 1,472
Cabot Oil & Gas Corp. - Cl. A .......................... 27,570 809
Fuelcell Energy, Inc. .................................. 37,240 484
OMI Corp. SHS .......................................... 28,800 257
Patina Oil & Gas Corp. ................................. 26,295 1,288
Whiting Petroleum Corp. * .............................. 40,200 740
-------
5,050
Pharmaceuticals - 2.9%
Atherogenics, Inc. * ................................... 37,560 562
Medicinesco ............................................ 34,980 1,030
NPS Pharmaceuticals, Inc. * ............................ 29,800 916
-------
2,508
Road & Rail - 3.7%
Old Dominion Freight Lines, Inc. * ..................... 28,020 955
Quality Distribution, Inc. Florida * ................... 26,000 508
Yellow Roadway Corp. * ................................. 48,000 1,736
-------
3,199
Semiconductor Equipment & Products - 8.7%
Aeroflex, Inc. * ....................................... 82,630 966
Artisan Components, Inc. ............................... 30,920 634
Ase Test, Ltd. * ....................................... 64,630 968
Chippac, Inc. - Cl. A * ................................ 113,280 860
Genesis Microchip, Inc. * .............................. 42,010 758
MEMC Electronic Materials, Inc. * ...................... 95,530 919
Microsemi Corp. * ...................................... 27,790 683
Pericom Semiconductor Corp. * .......................... 38,120 406
Pixelworks, Inc. * ..................................... 64,760 715
Semtech Corp. * ........................................ 26,540 603
-------
7,512
Software - 4.6%
Agile Software Corp. ................................... 62,400 $ 618
Network Associates, Inc. * ............................. 58,200 875
Red Hat, Inc. * ........................................ 74,190 1,392
Safenet, Inc. * ........................................ 25,890 797
Skillsoftpub Co., Ltd. - ADR * ......................... 38,100 330
-------
4,012
Specialty Retail - 3.9%
AC Moore Arts & Crafts, Inc. * ......................... 36,880 710
Dicks Sporting Goods, Inc. ............................. 10,270 500
Hollywood Entertainment Corp. * ........................ 95,830 1,318
Sharper Image Corp. * .................................. 25,970 848
-------
3,376
Textiles & Apparel - 0.9%
K-Swiss, Inc. - Cl. A .................................. 33,480 806
-------
TOTAL COMMON STOCK- 99.1% 85,811
Par
Value
-------
(000's)
INVESTMENT COMPANIES HELD
AS COLLATERAL ON LOANED
SECURITIES - 22.7%
State Street Navigator Securities Lending
Portfolio .......................................... $19,675 $ 19,675
SHORT-TERM INVESTMENTS - 1.3%
Investment in joint trading account
(Note B)
1.061% due 01/02/04 ................................ 1,131 1,131
------- --------
TOTAL INVESTMENTS- .............................. 123.1% 106,617
Payables, less cash and receivables- ............... (23.1)% (20,038)
------- --------
NET ASSETS- .................................. 100.0% $ 86,579
======= ========
* Non-income producing security.
ADR-American Depository Receipts.
See notes to financial statements.
NOTES TO FINANCIAL STATEMENTS
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2003
- --------------------------------------------------------------------------------
(000's Omitted)
NOTE A--ORGANIZATION
John Hancock Small Cap Emerging Growth Fund, (formerly John Hancock Small
Cap Equity), (the "Fund") is a diversified series of John Hancock Variable
Series Trust I (the "Trust"), an open-end investment management company
registered under the Investment Company Act of 1940. The Trust is organized as a
Massachusetts business trust and consists of thirty different funds as of
December 31, 2003. The results of this Fund are included in this report. The
results of the other Funds in the Trust are presented under separate cover. The
Trust may add or delete Funds in the future to accommodate various investment
objectives. The Trust has issued shares of beneficial interest exclusively to
John Hancock Variable Life Account U ("JHVLAU"), John Hancock Variable Life
Account V ("JHVLAV"), John Hancock Variable Life Account S ("JHVLAS"), and John
Hancock Variable Annuity Account I ("JHVAAI") to fund policies and contracts
issued by the John Hancock Variable Life Insurance Company ("JHVLICO"), and to
John Hancock Variable Annuity Account U ("JHVAAU"), John Hancock Variable
Annuity Account V ("JHVAAV"), John Hancock Variable Life Account UV ("JHVLAUV"),
John Hancock Variable Annuity Account H ("JHVAAH"), and John Hancock Variable
Annuity Account JF ("JHVAAJF") to fund contracts and policies issued by John
Hancock Life Insurance Company ("John Hancock" or "JHLICO"), to John Hancock
Variable Life Account PPM-1 ("PPM-1"), and to John Hancock Variable Life Account
PPM-2 ("PPM-2").
NOTE B--ACCOUNTING POLICIES
Valuation of investments: Common stocks and other such securities traded on
national exchanges are normally valued on the basis of closing prices.
Securities traded in the over-the-counter market and securities with no sales on
the day of valuation are normally valued at their last available bid price.
Short-term investments, with a maturity not to exceed 60 days, are valued
at amortized cost, which approximates market value.
Investment securities for which no current market quotations are readily
available, including certain foreign securities, when held by the Fund, are
valued at fair value as determined in good faith by the Board of Trustees.
Investment security transactions are recorded on the date of purchase or sale.
Repurchase agreements: The Fund may enter into repurchase agreements which
are contracts under which the Fund would acquire a security for a relatively
short period (usually not more than 7 days) subject to the obligation of the
seller to repurchase and the Fund to resell such security at a fixed time and
price (representing the Fund's cost plus interest). The Fund will enter into
repurchase agreements only with member banks of the Federal Reserve System and
with "primary dealers" in United States Government Securities. The underlying
securities, which represent the collateral of the agreement, must be marked to
market daily to ensure that each repurchase agreement is fully collateralized at
all times. The Fund will not invest more than 10% of its net assets in
repurchase agreements maturing in more than 7 days.
Joint trading account: Pursuant to an exemptive order issued by the
Securities and Exchange Commission, the order permits the Fund to pool daily
uninvested cash balances into a joint account for the purpose of investing the
cash balances in short-term repurchase agreements, commercial paper and other
short-term investments which in no event will have a maturity in excess of 7
days. Joint account holdings as of December 31, 2003 are as follows:
Name of Issuer Market Value
- -------------- ------------
Alpine Securitization Corp., 1.12%, due 01/07/04 $29,995
Alpine Securitization Corp., 1.12%, due 01/06/04 19,998
Barclays US Fund, 1.10%, due 01/05/04 29,997
Cargill Asia Pacific, 1.06%, due 01/02/04 20,000
Cargill Asia Pacific, 1.05%, due 01/02/04 25,000
Danske Corp., 1.07%, due 01/05/04 49,996
Greenwich CPL Holding Funding, 0.95%, due 01/02/04 17,654
Merrill Lynch & Co., Inc., 1.04%, due 01/05/04 18,838
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2003
- --------------------------------------------------------------------------------
(000's Omitted)
NOTE B--ACCOUNTING POLICIES--Continued
Name of Issuer Market Value
- -------------- ------------
Merrill Lynch & Co., Inc., 1.05%, due 01/06/04 $ 31,156
Mortgage Int. Networking, 0.98%, due 01/02/04 50,000
Three Pillars Funding Corp., 1.08%, due 01/06/04 49,994
UBS Finance LLC, 1.02%, due 01/02/04 3,917
UBS Finance LLC, 1.05%, due 01/02/04 4,088
UBS Finance LLC, 0.96%, due 01/02/04 35,000
--------
Joint Trading Account Totals $385,633
========
Expenses: Expenses directly attributable to the Fund are charged to the
Fund. Expenses not directly attributed to the Fund are allocated on the basis of
relative net assets of the Fund.
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 syndicated line of credit agreements with State Street Bank and
Trust Company ("SSBT"), the Trust's record keeper and custodian and the Bank of
New York. These agreements enable the Fund to participate in an unsecured line
of credit, which permits borrowings up to $125 and $75 million, respectively.
Interest is charged to the Fund, based on its borrowing. In addition, a
commitment fee is charged to the Fund based on the average daily unused portion
of the line of credit and is allocated among the participating Funds in the
Trust. Interest expense paid under the line of credit is included under the
caption "Other fees" in the Statement of Operations.
The Fund had borrowings under the line of credit during the year ended
December 31, 2003 as follows:
Average Daily Loan Balance
During the Period for which Weighted Average
Loans were Outstanding Interest Rate Interest Expense
- --------------------------- ---------------- ----------------
$382 1.75% $--
Securities lending: The Fund has entered into an agreement with SSBT to
lend its securities to certain qualified brokers who pay the Fund's negotiated
lender fees. This loan is collateralized at all times with cash or securities
with a market value at least equal to the market value of the securities on
loan. Cash collateral is invested in a short-term instrument. As with other
extensions of credit, 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 December 31, 2003, the market
value of the securities loaned and the market value of the collateral for the
Fund was as follows:
Value of Securities Loaned Value of Collateral
- -------------------------- -------------------
$19,013 $19,675
Financial futures contracts: The Fund may buy and sell financial futures
contracts to hedge against the effects of fluctuations in interest rates and
other market conditions. At the time the Fund enters into a financial futures
contract, it will be required to deposit with its custodian a specified amount
of cash or U.S. government securities, known as "initial margin". Each day, the
futures contract is valued at the official settlement price of the Chicago Board
of Trade or U.S. commodities exchange. Daily adjustments, called variation
margin, arising from this "mark to market", are recorded by the Fund as
unrealized gains or losses.
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2003
- --------------------------------------------------------------------------------
(000's Omitted)
NOTE B--ACCOUNTING POLICIES--Continued
When the contracts are closed, the Fund recognizes a gain or a loss. Risks
of entering into futures contracts include the possibility that there may be an
illiquid market and/or that a change in the value of the contract may not
correlate with changes in the value of the underlying securities. In addition,
the Fund could be prevented from opening or realizing the benefits of closing
out futures positions because of position limits or limits on daily price
fluctuations imposed by an exchange. At December 31, 2003, the Fund had no open
financial futures contracts.
Forward foreign currency contracts: The Fund may use forward foreign
currency contracts to facilitate transactions in foreign securities and to
manage the Fund's currency exposure. Contracts to buy generally are used to
acquire exposure to foreign currencies, while contracts to sell are used to
hedge the Fund's investments against currency fluctuations. Neither type of
forward foreign currency transaction will eliminate fluctuations in the prices
of the Fund's securities or prevent loss if the price of such securities should
decline. The U.S. dollar value of a forward foreign currency contract is
determined using forward exchange rates supplied by a quotation service.
Realized gain (loss) on the purchases and sales of forward foreign currency
contracts is recognized on settlement date. At December 31, 2003, the Fund had
no open forward foreign currency contracts.
Federal income taxes: The Fund intends to comply with the requirements of
Subchapter M of the Internal Revenue Code applicable to regulated investment
companies and to distribute substantially all of its taxable income to
shareholders. Therefore, no federal income tax provision is required.
As of December 31, 2003, the Fund had approximate net tax basis capital
loss carryforwards, which may be applied against any net taxable gains, as
follows: $11,459, $2,741 and $7,997 which expire in 2009, 2010 and 2011,
respectively.
In addition, from the period November 1, 2003 through December 31, 2003,
the Fund incurred no net realized capital losses.
Dividends, Interest and Distributions: Dividend income is recorded on the
ex-dividend date and interest income is recorded on the accrual basis. Realized
gains and losses from security transactions are determined on the basis of
identified cost.
Dividends of net investment income will be declared and distributed monthly
by the Fund. The Fund will distribute all of its net realized capital gains
annually, at the end of its fiscal year.
Estimates: The preparation of the financial statements in conformity with
accounting principles generally accepted in the United States of America
requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported amounts of
revenues and expenses during the reporting period. Actual results could differ
from those estimates.
NOTE C--INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
On February 5, 2003, the Board of Trustees of the Trust renewed its
Investment Advisory Agreement with John Hancock. For its services, John Hancock
receives monthly compensation at the following rate on an annual basis of the
Fund's net assets:
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2003
- --------------------------------------------------------------------------------
(000's Omitted)
NOTE C--INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH
AFFILIATES--Continued
Excess Over
First $100 Million $100 Million
- ------------------ ------------
1.05% 1.00%
In the event that normal operating expenses of the Fund, exclusive of
investment advisory fees, taxes, interest, brokerage commissions and
extraordinary expenses, shall exceed 0.10% of the Fund's daily net asset value,
John Hancock and JHVLICO will reimburse the Fund for such excess. Accordingly,
for the year ended December 31, 2003, the reimbursements paid from John Hancock
and JHVLICO were $62 to the Fund.
The Fund entered into a commission recapture program, which enables it to
pay some of its operational expenses by recouping a portion of the commissions
it pays to a broker that is not a related party of the Fund. Expenses paid
through this program may include costs of custodial, transfer agency or
accounting services. The impact of this arrangement was a reduction of $6.
John Hancock has entered into a Sub-Advisory Agreement with Wellington
Management Company LLP, with respect to the Fund. Wellington Management Company
LLC is an affiliate of John Hancock, and under its supervision, is responsible
for the day-to-day investment management of the Fund.
Signator Investors, Inc., a wholly owned subsidiary of John Hancock is the
principal underwriter and transfer agent of the Trust. Certain officers and
trustees of the Trust are officers and directors of JHVLICO, JHVLAU, JHVLAV, JHV
LAS, JHVAAI, JHVLAUV, JHVAAV, JHVAAU, JHVAAH, JHVAAJF, PPM-1, and PPM-2, and
some are also officers of John Hancock. Fees for independent trustees are paid
by the Trust.
NOTE D--INVESTMENT TRANSACTIONS
Purchases and proceeds from sales and maturities of investments, excluding
short-term securities and obligations of the U.S. government, for the Fund for
the year ended December 31, 2003 were as follows:
Purchases Sales and Maturities
- --------- --------------------
$158,267 $149,263
The identified cost of investments owned by the Fund (including earned
discount on corporate short-term notes, commercial paper and collateral for
securities lending) and their respective gross unrealized appreciation and
depreciation for Federal income tax purposes at December 31, 2003 were as
follows:
Identified Unrealized Unrealized Net Unrealized
Cost Appreciation Depreciation Appreciation
- ---------- ------------ ------------ --------------
$92,836 $15,219 $(1,438) $13,781
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2003
- --------------------------------------------------------------------------------
(000's Omitted)
NOTE D--INVESTMENT TRANSACTIONS--Continued
Distribution of Income and Gains: Distributions of net investment income,
if any, are made at least annually. Net realized gains from investment
transactions, in excess of available capital loss carryforwards, would be
taxable to the Fund if not distributed, and, therefore, will be distributed to
shareholders at least annually. Earnings and profits distributed to shareholders
on redemption of fund shares may be utilized by the Fund, to the extent
permissible, as part of the Fund's dividends-paid deduction on its federal
income tax return.
The timing and characterization of certain income and capital gains
distributions are determined annually in accordance with federal tax
regulations. As a result, net investment income (loss) and net realized gain
(loss) on investment transactions for a reporting period may differ
significantly from distributions during such period. These differences primarily
relate to certain securities sold at a loss. Additionally, as a result, net
investment income (loss) and net realized gain (loss) on investment transactions
for a reporting period may differ significantly from distributions during such
period. Accordingly, the Fund may periodically make reclassifications among
certain of its capital accounts without impacting the net asset value of the
Fund.
At December 31, 2003, the Fund's components of distributable earnings on a
tax basis were as follows:
Undistributed Undistributed
Ordinary Net Long-Term Capital Loss Net Unrealized
Income Capital Gain Carryforwards Appreciation
- ------------- ------------- ------------- --------------
$-- $-- $22,197 $13,781
In addition, the tax character of distributions paid by the Fund are
summarized as follows:
Distributions from Distributions from
Year Ordinary Income Long-Term Capital Gain Return of Capital
- ---- ------------------ ---------------------- -----------------
2003 $ -- $-- $11,543
2002 114 -- --
NOTE E--OTHER MATTERS (UNAUDITED)
Section 30 and Rule 30d-1(b) under the Investment Company Act of 1940, as
amended, requires registered management investment companies to furnish
information relating to any matter submitted during the reporting period to a
vote of Shareholders of the Trust.
John Hancock Variable Series Trust I solicited a vote at special meeting of
Contract owners/Policyholders held on April 4, 2003 on the following matters:
For Against Abstain
--- ------- -------
To approve, as to the Small Cap Equity Fund, a new
Sub-Investment Agreement among the Trust, John
Hancock and Wellington Management Company, LLP. 73% 20% 7%
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2003
- --------------------------------------------------------------------------------
NOTE E--OTHER MATTERS (UNAUDITED)--Continued
For Against Abstain
--- ------- -------
To approve, as to the Small Cap Equity Fund, an
amendment to the current Investment Management
Agreement between the Trust and John Hancock,
reflecting an increase in the Fund's investment 59% 36% 5%
advisory fee.
NOTE F--BOARD OF TRUSTEES AND OFFICERS OF THE TRUST (UNAUDITED)
The Board of Trustees of the Trust is responsible for overall management of
the Trust. The Board may exercise all powers of the Trust, except those powers
which are conferred solely upon or reserved to the shareholders. The Trust's
Statement of Additional Information (SAI) includes additional information about
the Trustees and is available without charge, upon request, by calling toll-free
at 1-800-576-2227.
The following table provides information about the members of the Board of
Trustees and the officers of the Trust:
Disinterested Trustees
Positions Held Principal Occupation(s)
Name, Address and Age With Trust During Past Five Years
- -------------------------------- ---------------------------- -----------------------------------
Elizabeth G. Cook (age 66) Trustee Expressive Arts Therapist, Dana-
c/o John Hancock Variable Series Farber Cancer Institute; President,
Trust I The Advertising Club of Greater
John Hancock Place Boston
Boston, Massachusetts 02117
Diane C. Kessler (age 57) Trustee Executive Director, Massachusetts
c/o John Hancock Variable Series Council of Churches
Trust I
John Hancock Place
Boston, Massachusetts 02117
Robert Verdonck (age 58) Trustee President and Chief
c/o John Hancock Variable Series Executive Officer, East Boston
Trust I Savings Bank
John Hancock Place
Boston, Massachusetts 02117
Hassell H. McClellan (age 58) Trustee Associate Professor and Graduate
c/o John Hancock Variable Series Dean, The Graduate School of the
Trust I Wallace G. Carroll School of
John Hancock Place Management, Boston College
Boston, Massachusetts 02117
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2003
- --------------------------------------------------------------------------------
NOTE F--BOARD OF TRUSTEES AND OFFICERS OF THE TRUST (UNAUDITED)--Continued
Trustees Affiliated with the Trust and Officers of the Trust
Positions Held Principal Occupation(s)
Name, Address and Age With Trust During Past Five Years
- -------------------------------- ---------------------------- -----------------------------------
Michele G. Van Leer* (age 46) Chairman and Trustee Senior Vice President, Product
John Hancock Place Management, John Hancock Life
Boston, Massachusetts 02117 Insurance Company; Vice Chairman,
President & Director, John Hancock
Variable Life Insurance Company
Kathleen F. Driscoll* (age 47) Vice Chairman, President Senior Vice President, Signator
John Hancock Place and Trustee Brokerage, John Hancock Life
Boston, Massachusetts 02117 Insurance Company; Vice President
Corporate Communications, John
Hancock Life Insurance Company
Jude A. Curtis (age 45) Compliance Officer Vice President and Chief Investment
John Hancock Place Compliance Officer, John Hancock
Boston, Massachusetts 02117 Life Insurance Company; formerly
Second Vice President and Counsel,
Office of Business Conduct; John
Hancock Life Insurance Company;
formerly a Partner at Hale and Dorr
LLP (law firm)
Janet Wang (age 35) Assistant Compliance Officer Compliance Specialist, John
John Hancock Place Hancock Life Insurance Company
Boston, Massachusetts 02117
Raymond F. Skiba (age 58) Treasurer Director of Fund Operations, John
John Hancock Place Hancock Life Insurance Company
Boston, Massachusetts 02117
Gladys C. Millan (age 57) Assistant Treasurer Manager of Fund Operations, John
John Hancock Place Hancock Life Insurance Company
Boston, Massachusetts 02117
Karen Q. Visconti (age 50) Secretary Director, Product & Market
John Hancock Place Management, John Hancock Life
Boston, Massachusetts 02117 Insurance Company
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 2003
- --------------------------------------------------------------------------------
NOTE F--BOARD OF TRUSTEES AND OFFICERS OF THE TRUST (UNAUDITED)--Continued
Trustees Affiliated with the Trust and Officers of the Trust--Continued
Positions Held Principal Occupation(s)
Name, Address and Age With Trust During Past Five Years
- -------------------------------- ---------------------------- -----------------------------------
Arnold R. Bergman (age 53) Assistant Secretary Senior Counsel, Law Department,
John Hancock Place John Hancock Life Insurance
Boston, Massachusetts 02117 company; formerly Vice President,
General Counsel and Secretary, First
Variable Life Insurance Company
*Trustee who is an "interested person" as defined in the 1940 Act, due to
her position with John Hancock Life Insurance Company (or its affiliates), the
ultimate controlling parent of the investment advisor.
Because the Trust does not hold regular annual shareholders meetings, each
Trustee holds office for an indefinite term until his successor is duly elected
and qualified or until he dies, retires, resigns, is removed or becomes
disqualified. None of the Trustees is a director of other complexes except noted
above.
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
To the Contractowners, Policyholders, and
Board of Trustees of
John Hancock Variable Series Trust I
We have audited the accompanying statement of assets and liabilities,
including the schedule of investments, of the Small Cap Emerging Growth Fund
(formerly, Small Cap Equity Fund) (a portfolio included in the series of John
Hancock Variable Series Trust I {the "Trust"}) as of December 31, 2003, and the
related statement of operations for the year then ended, the statements of
changes in net assets for each of the two years in the period then ended, and
the financial highlights for each of the five years in the period then ended.
These financial statements and financial highlights are the responsibility of
the Trust's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements
and financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned as of December 31, 2003, by correspondence with the custodian and brokers,
or by other appropriate auditing procedures where replies from brokers were not
received. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of the
Small Cap Emerging Growth Fund of John Hancock Variable Series Trust I at
December 31, 2003, the results of its operations for the year then ended, the
changes in its net assets for each of the two years in the period then ended,
and the financial highlights for each of the five years in the period then
ended, in conformity with accounting principles generally accepted in the United
States.
/s/ Ernst & Young LLP
Boston, Massachusetts
February 6, 2004
Officers and Trustees Investment Adviser
Michele G. Van Leer, John Hancock Life Insurance Company
Chairman of the Board of Trustees John Hancock Place
Kathleen F. Driscoll, P.O. Box 111
President and Vice Chairman Boston, MA 02117
of the Board of Trustees
Elizabeth G. Cook, Trustee
Reverend Diane C. Kessler, Trustee
Hassell H. McClellan, Trustee Independent Auditors
Robert F. Verdonck, Trustee Ernst & Young LLP
Karen Q. Visconti, Secretary 200 Clarendon Street
Arnold R. Bergman, Assistant Secretary Boston, MA 02116
Raymond F. Skiba, Treasurer
Gladys C. Millan, Assistant Treasurer
Ronald J. Bocage, Chief Legal Officer
Jude A. Curtis, Compliance Officer
Janet Wang, Assistant Compliance Officer
Sub-Investment Advisers
Capital Guardian Trust Company Pacific Investment Management Company LLC
Los Angeles, CA 90071 Newport Beach, CA 92660
Declaration Management & Research LLC RREEF America LLC
McLean, VA 22102 Chicago, IL 60611
Fidelity Management & Research Company SSgA Funds Management, Inc.
Boston, MA 02109 Boston, MA 02110
Goldman Sachs Asset Management, LP Standish Mellon Asset
New York, NY 10005 Management Company LLC
Pittsburgh, PA 15258
Independence Investment LLC T. Rowe Price Associates, Inc.
Boston, MA 02109 Baltimore, MD 21202
John Hancock Advisers, LLC T. Rowe Price International, Inc.
Boston, MA 02199 Baltimore, MD 21202
Morgan Stanley Investment Management Inc. Wellington Management Company, LLP
New York, NY 10020 Boston, MA 02109
The John Hancock Variable Series Trust I consists of funds used as investment
options for various John Hancock variable life and variable annuity contracts.
Investors are not able to invest directly in the John Hancock Variable Series
Trust I.
If the total investment return for any fund for any given year appears unusually
high, the return may be attributable to unusually favorable market conditions
which will probably not be sustainable. For instance, a high total investment
return may reflect participation in IPOs, "hot" industries (e.g.,
internet-related companies), private placements, and/or leveraging investment
techniques during the period indicated. There is no assurance that any of those
methods, or any other investment technique will continue to have the same impact
on the fund's total investment returns.
All of the funds (except bond funds and equity index funds) may participate in
initial public offerings (IPOs). Under certain market conditions, such
participation could significantly improve a fund's total investment return.
There is no assurance that such market conditions will continue and provide the
same favorable impact on future investment returns.
Please refer to the prospectus for your product for additional information about
the investment options available. Variable life insurance and variable annuities
are sold by prospectus. These reports may be used as sales literature when
preceeded or accompanied by the funds' prospectus, which detail charges,
investment objectives, and operating policies.
Insurance products are issued by John Hancock Life Insurance Company, or John
Hancock Variable Life Insurance Company* (*not licensed in New York), Boston, MA
02117. Securities products are distributed by Signator Investors, Inc., Member
NASD, SIPC, 197 Clarendon Street, Boston, MA 02116.
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