John Hancock

Government Income Fund

Annual report 5/31/2020

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the fund's shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change, and you do not need to take any action. You may elect to receive shareholder reports and other communications electronically by calling John Hancock Investment Management at 800-225-5291 (Class A, Class B and Class C shares) or 888-972-8696 (Class I and Class R6 shares) or by contacting your financial intermediary.

You may elect to receive all reports in paper, free of charge, at any time. You can inform John Hancock Investment Management or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by following the instructions listed above. Your election to receive reports in paper will apply to all funds held with John Hancock Investment Management or your financial intermediary.

Dear shareholder,

Global financial markets delivered strong returns during first half of the 12-month period ended May 31, 2020; however, heightened fears over the coronavirus (COVID-19) sent markets tumbling during the latter half of February and early March. Investors reacted by exiting higher-risk assets and moving into cash, leading to a liquidity crunch in the fixed-income markets.

In response to the sell-off, the U.S. Federal Reserve acted quickly, lowering interest rates to near zero and reinstating quantitative easing, as well as announcing its plans to shore up short-term debt. These steps, along with the passage of a $2 trillion federal economic stimulus bill, helped lift the markets during the last two months of the period, while credit spreads rebounded off their highs as liquidity concerns eased.

The continued spread of COVID-19, trade disputes, rising unemployment, and other geopolitical tensions may continue to create uncertainty among businesses and investors. Your financial professional can help position your portfolio so that it's sufficiently diversified to seek to meet your long-term objectives and to withstand the inevitable bouts of market volatility along the way. 

On behalf of everyone at John Hancock Investment Management, I'd like to take this opportunity to welcome new shareholders and thank existing shareholders for the continued trust you've placed in us.

Sincerely,

Andrew G. Arnott
President and CEO,
John Hancock Investment Management
Head of Wealth and Asset Management,
United States and Europe

This commentary reflects the CEO's views as of this report's period end and are subject to change at any time. Diversification does not guarantee investment returns and does not eliminate risk of loss. All investments entail risks, including the possible loss of principal. For more up-to-date information, you can visit our website at jhinvestments.com.

ANNUAL REPORT   |   JOHN HANCOCK GOVERNMENT INCOME FUND       1

INVESTMENT OBJECTIVE

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The fund seeks a high level of current income consistent with preservation of capital. Maintaining a stable share price is a secondary goal.

AVERAGE ANNUAL TOTAL RETURNS AS OF 5/31/2020 (%)

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The Bloomberg Barclays U.S. Government Bond Index is an unmanaged index of U.S. Treasury and government agency bonds.

It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns.

The fund's Morningstar category average is a group of funds with similar investment objectives and strategies and is the equal-weighted return of all funds per category. Morningstar places funds in certain categories based on their historical portfolio holdings. Figures from Morningstar, Inc. include reinvested distributions and do not take into account sales charges. Actual load-adjusted performance is lower.

The past performance shown here reflects reinvested distributions and the beneficial effect of any expense reductions, and does not guarantee future results. Performance of the other share classes will vary based on the difference in the fees and expenses of those classes. Shares will fluctuate in value and, when redeemed, may be worth more or less than their original cost. Current month-end performance may be lower or higher than the performance cited, and can be found at jhinvestments.com or by calling 800-225-5291. For further information on the fund's objectives, risks, and strategy, see the fund's prospectus.

ANNUAL REPORT   |   JOHN HANCOCK GOVERNMENT INCOME FUND       2

PERFORMANCE HIGHLIGHTS OVER THE LAST TWELVE MONTHS

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Government bonds delivered strong gains

Slowing economic growth, a flight to quality from higher-risk assets, and the U.S. Federal Reserve's decision to cut interest rates to near zero contributed to the rally.

U.S. Treasuries outperformed

U.S. Treasuries generated impressive total returns, as did agency mortgage-backed securities.

The fund trailed its benchmark, the Bloomberg Barclays U.S. Government Bond Index

An overweight in securitized assets and a corresponding underweight in U.S. Treasuries were the leading causes of the shortfall.

PORTFOLIO COMPOSITION AS OF 5/31/2020 (%)

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ANNUAL REPORT   |   JOHN HANCOCK GOVERNMENT INCOME FUND       3

QUALITY COMPOSITION AS OF 5/31/2020 (%)

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A note about risks

The fund may be subject to various risks as described in the fund's prospectus. A widespread health crisis such as a global pandemic could cause substantial market volatility, exchange trading suspensions and closures, impact the ability to complete redemptions, and affect fund performance. For example, the novel coronavirus disease (COVID-19) has resulted in significant disruptions to global business activity. The impact of a health crisis and other epidemics and pandemics that may arise in the future, could affect the global economy in ways that cannot necessarily be foreseen at the present time. A health crisis may exacerbate other pre-existing political, social, and economic risks. Any such impact could adversely affect the fund's performance, resulting in losses to your investment. For more information, please refer to the "Principal risks" section of the prospectus.

ANNUAL REPORT   |   JOHN HANCOCK GOVERNMENT INCOME FUND       4

How would you describe the investment backdrop during the 12 months ended May 31, 2020?

The government bond market performed very well, led by U.S. Treasuries. The yield on the 10-year Treasury note experienced a remarkable decline from 2.14% on May 31, 2019, to 0.65% on the final day of the period. (Prices and yields move in opposite directions.) Shorter-term debt staged an equally impressive rally, with the yield on the two-year note falling from 1.95% to 0.16%. The emergence of COVID-19 was the primary driver of these unusual moves. As officials shut down large portions of the economy in an effort to slow the spread of the virus, investors began to factor the likelihood of a recession into asset prices.

The ensuing sell-off in higher-risk market segments led to a surge in demand for higher-quality assets, which boosted U.S. Treasuries. Government bonds were further aided by the U.S. Federal Reserve's (Fed's) decision to cut short-term interest rates to near zero and institute several other measures designed to support the economy and markets. Agency mortgage-backed securities (MBS) also benefited from these developments, but other areas of the government bond market—including asset-backed securities (ABS) and commercial mortgage-backed securities (CMBS)—didn't keep pace with the index.

What elements of the fund's positioning helped and hurt results?

Asset allocation was the primary detractor from relative performance. We typically seek to diversify the portfolio beyond U.S. Treasuries and into higher-yielding segments of the government bond market that aren't represented in the benchmark. The fund therefore typically has overweight positions in government-backed securitized assets such as agency MBS, ABS, and CMBS. This approach was a net detractor during the period. While the overweight in agency MBS was a positive, the benefit was outweighed by the effect of being overweight in ABS and CMBS. The underperformance of CMBS was particularly notable, as the COVID-19 crisis fueled worries that a growing number of commercial tenants would be unable to make their rent payments. Duration and yield curve positioning was also a modest negative due to the fund's shorter average duration (below-benchmark interest-rate sensitivity).

ANNUAL REPORT   |   JOHN HANCOCK GOVERNMENT INCOME FUND       5

What were some key aspects of your portfolio activity?

We gradually lowered portfolio risk during 2019 on the belief that valuations in the higher-yielding areas of the government bond market had become less compelling. We achieved this by reducing the fund's allocations to securitized assets and adding to its weighting in U.S. Treasuries. Overall, we maintained a steady approach that provided exposure to government bonds and sought to capitalize on relative values throughout the asset class.

We believe yields can stay low for some time, although it's possible the yield curve will steepen as the economic outlook improves. We closed the period with a neutral duration versus the index, and we favored short- to intermediate-term bonds based on our expectation that the Fed will remain accommodative for an extended period. We also saw a continued opportunity in agency MBS given that the Fed continues to buy securities in this area.

MANAGED BY

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Howard C. Greene, CFA, Manulife IM (US)

Jeffrey N. Given, CFA, Manulife IM (US)

The views expressed in this report are exclusively those of Howard C. Greene, CFA, and Jeffrey N. Given, CFA, Manulife Investment Management (US) LLC, and are subject to change. They are not meant as investment advice. Please note that the holdings discussed in this report may not have been held by the fund for the entire period. Portfolio composition is subject to review in accordance with the fund's investment strategy and may vary in the future. Current and future portfolio holdings are subject to risk.

ANNUAL REPORT   |   JOHN HANCOCK GOVERNMENT INCOME FUND       6

TOTAL RETURNS FOR THE PERIOD ENDED  MAY 31, 2020 

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Average annual total returns (%) with maximum sales charge					Cumulative total returns (%) with maximum sales charge				SEC 30-day yield (%) subsidized		SEC 30-day yield (%) unsubsidized1
	1-year	5-year	10-year			5-year	10-year		as of 5-31-20		as of 5-31-20
Class A	5.12	2.21	2.66			11.57	29.97		0.32		0.25
Class B	3.65	1.85	2.44			9.62	27.26		-0.47		-0.48
Class C	7.64	2.22	2.28			11.62	25.27		-0.47		-0.47
Class I2,3	9.73	3.21	3.16			17.10	36.50		0.51		0.50
Class R62,3	9.85	3.20	3.16			17.07	36.47		0.64		0.63
Index†	11.24	3.85	3.50			20.79	41.10		—		—

Performance figures assume all distributions have been reinvested. Figures reflect maximum sales charges on Class A shares of 4.0% and the applicable contingent deferred sales charge (CDSC) on Class B and Class C shares. The returns for Class A shares have been adjusted to reflect the reduction in the maximum sales charge from 4.5% to 4.0%, effective 2-3-14. The Class B shares' CDSC declines annually between years 1 to 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 sold within one year of purchase are subject to a 1% CDSC. Sales charges are not applicable to Class I and Class R6 shares.

The expense ratios of the fund, both net (including any fee waivers and/or expense limitations) and gross (excluding any fee waivers and/or expense limitations), are set forth according to the most recent publicly available prospectuses for the fund and may differ from those disclosed in the Financial highlights tables in this report.Net expenses reflect contractual expense limitations in effect until September 30, 2021 and are subject to change. Had the contractual fee waivers and expense limitations not been in place, gross expenses would apply. The expense ratios are as follows:

	Class A	Class B	Class C	Class I	Class R6
Gross (%)	1.04	1.79	1.79	0.79	0.68
Net (%)	0.98	1.78	1.78	0.78	0.67

Please refer to the most recent prospectus and annual or semiannual report for more information on expenses and any expense limitation arrangements for each class.

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 and other factors, the fund's current performance may be higher or lower than the performance shown. For current to the most recent month-end performance data, please call 800-225-5291 or visit the fund's website at jhinvestments.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 fee waivers or expense reductions, without which the expenses would increase and results would have been less favorable.

†	Index is the Bloomberg Barclays U.S. Government Bond Index.

See the following page for footnotes.

ANNUAL REPORT   |   JOHN HANCOCK GOVERNMENT INCOME FUND       7

This chart and table show what happened to a hypothetical $10,000 investment in John Hancock Government Income Fund for the share classes and periods indicated, assuming all distributions were reinvested. For comparison, we've shown the same investment in the Bloomberg Barclays U.S. Government Bond Index.

	Start date	With maximum sales charge ($)	Without sales charge ($)	Index ($)
Class B4	5-31-10	12,726	12,726	14,110
Class C4	5-31-10	12,527	12,527	14,110
Class I2,3	5-31-10	13,650	13,650	14,110
Class R62,3	5-31-10	13,647	13,647	14,110

The values shown in the chart for Class A shares with maximum sales charge have been adjusted to reflect the reduction in the Class A shares' maximum sales charge from 4.5% to 4.0%, which became effective on 2-3-14.

The Bloomberg Barclays U.S. Government Bond Index is an unmanaged index of U.S. Treasury and government agency bonds.

It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns.

Footnotes related to performance pages

1	Unsubsidized yield reflects what the yield would have been without the effect of reimbursements and waivers.
2	For certain types of investors, as described in the fund's prospectus.
3	Class I shares and Class R6 shares were first offered on 9-9-16 and 8-30-17, respectively. Returns prior to these dates are those of Class A shares that have not been adjusted for class-specific expenses; otherwise, returns would vary.
4	The contingent deferred sales charge is not applicable.

ANNUAL REPORT   |   JOHN HANCOCK GOVERNMENT INCOME FUND       8

These examples are intended to help you understand your ongoing operating expenses of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds.

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 presenting only your ongoing operating expenses here.

Actual expenses/actual returns

The first line of each share class in the table on the following page is intended to provide information about the fund’s actual ongoing operating expenses, and is based on the fund’s actual return. It assumes an account value of $1,000.00 on December 1, 2019, with the same investment held until May 31, 2020.

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 May 31, 2020, by $1,000.00, then multiply it by the “expenses paid” for your share class from the table. For example, for an account value of $8,600.00, the operating expenses should be calculated as follows:

Hypothetical example for comparison purposes

The second line of each share class in the table on the following page allows you to compare the 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% annualized return before expenses (which is not the class’s actual return). It assumes an account value of $1,000.00 on December 1, 2019, with the same investment held until May 31, 2020. Look in any other fund shareholder report to find its hypothetical example and you will be able to compare these expenses. Please remember that these hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period.

ANNUAL REPORT | JOHN HANCOCK GOVERNMENT INCOME FUND

9

Remember, these examples do not include any transaction costs, 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 annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period).

AS OF 5-31-20

	Rate (%)	Maturity date		Par value^	Value
U.S. Government and Agency obligations 86.8%					$275,454,021
(Cost $257,382,926)
U.S. Government 60.4%					191,553,281
U.S. Treasury
Bond	2.000	02-15-50		2,850,000	3,258,018
Bond	2.375	11-15-49		12,875,000	15,866,426
Bond	2.875	05-15-43		4,450,000	5,797,863
Bond	2.875	11-15-46		8,345,000	11,076,358
Bond	2.875	05-15-49		4,534,000	6,118,775
Bond	3.125	08-15-44		7,475,000	10,175,052
Note	0.125	05-15-23		3,000,000	2,993,789
Note	0.375	04-30-25		8,000,000	8,027,188
Note	0.500	03-15-23		3,000,000	3,026,367
Note	0.500	03-31-25		3,000,000	3,028,477
Note	0.500	04-30-27		1,250,000	1,250,635
Note	0.625	03-31-27		2,500,000	2,522,754
Note	1.125	02-28-22		4,000,000	4,066,406
Note	1.125	02-28-25		5,000,000	5,198,633
Note	1.125	02-28-27		1,500,000	1,564,102
Note (A)	1.125	05-15-40		1,000,000	989,688
Note	1.375	02-15-23		1,000,000	1,032,305
Note	1.500	01-15-23		19,195,000	19,857,078
Note	1.500	02-15-30		10,650,000	11,511,984
Note	1.625	12-31-21		9,600,000	9,818,250
Note	1.750	12-31-24		40,000,000	42,665,625
Note	1.750	11-15-29		10,000,000	11,038,281
Note	3.000	10-31-25		9,350,000	10,669,227
U.S. Government Agency 26.4%					83,900,740
Federal Home Loan Mortgage Corp.
30 Yr Pass Thru	3.000	04-01-43		969,469	1,049,867
30 Yr Pass Thru	3.000	10-01-49		949,350	1,003,139
30 Yr Pass Thru	3.500	12-01-44		3,123,501	3,417,945
30 Yr Pass Thru	3.500	02-01-47		1,334,436	1,431,456
30 Yr Pass Thru	3.500	11-01-47		3,232,702	3,431,297
30 Yr Pass Thru	3.500	03-01-48		2,221,462	2,355,117
30 Yr Pass Thru	3.500	06-01-49		1,474,175	1,562,895
30 Yr Pass Thru	4.000	12-01-40		658,588	724,107
30 Yr Pass Thru	4.000	01-01-41		727,399	799,764
30 Yr Pass Thru	4.000	01-01-41		819,219	900,719
30 Yr Pass Thru	4.000	11-01-43		1,103,764	1,212,537
30 Yr Pass Thru	4.000	12-01-46		1,292,433	1,403,593
30 Yr Pass Thru	4.000	06-01-47		1,212,430	1,307,587
Note	0.375	04-20-23		5,000,000	5,011,737

Fund’ s investments

	Rate (%)	Maturity date		Par value^	Value
U.S. Government Agency (continued)
Federal National Mortgage Association
15 Yr Pass Thru	3.000	03-01-28		1,112,035	$1,180,523
30 Yr Pass Thru	3.000	10-01-49		2,405,482	2,541,774
30 Yr Pass Thru	3.000	11-01-49		2,396,703	2,524,259
30 Yr Pass Thru	3.000	11-01-49		2,416,974	2,553,918
30 Yr Pass Thru	3.500	07-01-43		1,782,089	1,952,828
30 Yr Pass Thru	3.500	03-01-44		834,688	915,441
30 Yr Pass Thru	3.500	01-01-45		4,232,794	4,646,267
30 Yr Pass Thru	3.500	04-01-45		3,813,668	4,137,337
30 Yr Pass Thru	3.500	07-01-47		1,548,630	1,643,767
30 Yr Pass Thru	3.500	05-01-48		1,348,079	1,474,287
30 Yr Pass Thru	3.500	10-01-49		1,784,261	1,894,989
30 Yr Pass Thru	4.000	09-01-40		1,943,489	2,136,270
30 Yr Pass Thru	4.000	12-01-40		1,336,246	1,468,792
30 Yr Pass Thru	4.000	09-01-41		1,381,070	1,516,336
30 Yr Pass Thru	4.000	10-01-41		1,267,033	1,397,465
30 Yr Pass Thru	4.000	01-01-42		672,529	741,761
30 Yr Pass Thru	4.000	07-01-42		1,625,197	1,794,024
30 Yr Pass Thru	4.000	11-01-42		3,262,647	3,582,200
30 Yr Pass Thru	4.000	11-01-43		2,852,217	3,158,311
30 Yr Pass Thru	4.000	12-01-43		1,572,977	1,729,005
30 Yr Pass Thru	4.500	08-01-40		1,299,277	1,454,108
30 Yr Pass Thru	4.500	06-01-41		2,292,608	2,560,799
30 Yr Pass Thru	4.500	07-01-41		2,121,488	2,369,660
30 Yr Pass Thru	4.500	11-01-41		401,761	449,387
30 Yr Pass Thru	4.500	02-01-42		1,348,161	1,499,971
30 Yr Pass Thru	4.500	04-01-48		1,772,320	1,939,215
Note	0.625	04-22-25		5,000,000	5,026,286
Collateralized mortgage obligations 10.1%					$32,047,385
(Cost $32,055,973)
Commercial and residential 2.1%					6,545,373
Citigroup Mortgage Loan Trust, Inc. Series 2018-RP1, Class A1 (B)(C)	3.000	09-25-64		1,491,985	1,534,042
Commercial Mortgage Trust (Cantor Fitzgerald/Deutsche Bank AG) Series 2012-CR2, Class XA IO	1.630	08-15-45		3,747,970	103,692
JPMorgan Chase Commercial Mortgage Securities Trust Series 2012-HSBC, Class XA IO (B)	1.431	07-05-32		4,732,902	122,501
Seasoned Credit Risk Transfer Trust
Series 2018-3, Class MA	3.500	08-25-57		2,054,433	2,192,442
Series 2019-1, Class MA	3.500	07-25-58		1,522,053	1,628,705
Series 2019-2, Class MA	3.500	08-25-58		899,170	963,991
U.S. Government Agency 8.0%					25,502,012
Federal Home Loan Mortgage Corp.

	Rate (%)	Maturity date		Par value^	Value
U.S. Government Agency (continued)
Series 4083, Class PB	3.500	09-15-41		4,046,128	$4,347,801
Series 4459, Class CA	5.000	12-15-34		96,625	106,166
Series K017, Class X1 IO	1.286	12-25-21		3,361,011	48,392
Series K018, Class A2	2.789	01-25-22		1,929,494	1,979,735
Series K018, Class X1 IO	1.300	01-25-22		3,261,865	49,099
Series K022, Class X1 IO	1.194	07-25-22		8,611,217	174,884
Series K026, Class X1 IO	0.970	11-25-22		4,188,754	80,651
Series K030, Class X1 IO	0.178	04-25-23		46,497,036	213,328
Series K032, Class A1	3.016	02-25-23		641,635	663,236
Series K038, Class X1 IO	1.126	03-25-24		6,602,277	232,897
Series K048, Class X1 IO	0.243	06-25-25		5,058,383	54,940
Series K050, Class X1 IO	0.324	08-25-25		72,517,484	1,095,928
Series K053, Class X1 IO	0.887	12-25-25		27,695,635	1,157,719
Series K054, Class X1 IO	1.172	01-25-26		21,565,762	1,164,590
Series K715, Class X1 IO	1.101	01-25-21		34,133,970	170,530
Series K716, Class A2	3.130	06-25-21		570,166	579,885
Series K718, Class X1 IO	0.603	01-25-22		20,309,373	145,791
Series K720, Class X1 IO	0.522	08-25-22		62,900,211	508,856
Series K722, Class X1 IO	1.307	03-25-23		26,241,101	743,363
Series K725, Class A1	2.666	05-25-23		1,174,269	1,210,298
Series KSMC, Class A2	2.615	01-25-23		2,000,000	2,090,301
Federal National Mortgage Association
Series 1993-225, Class TK	6.500	12-25-23		101,388	106,170
Series 2013-40, Class DG	2.000	06-25-37		457,328	458,422
Series 2014-44, Class DA	3.000	07-25-36		890,758	953,622
Series 2014-49, Class CA	3.000	08-25-44		828,484	876,618
Series 2018-M7, Class A1 (C)	3.052	03-25-28		1,857,044	2,021,474
Government National Mortgage Association
Series 2012-114, Class IO	0.760	01-16-53		1,516,204	55,928
Series 2013-30, Class A	1.500	05-16-42		406,364	406,874
Series 2015-7, Class IO	0.734	01-16-57		13,659,522	602,483
Series 2017-109, Class IO	0.599	04-16-57		2,527,526	118,077
Series 2017-124, Class IO	0.712	01-16-59		2,710,090	145,553
Series 2017-140, Class IO	0.618	02-16-59		1,705,834	91,232
Series 2017-20, Class IO	0.733	12-16-58		3,898,999	203,667
Series 2017-41, Class IO	0.766	07-16-58		2,586,733	146,185
Series 2017-46, Class IO	0.616	11-16-57		2,981,139	150,429
Series 2017-54, Class IO	0.636	12-16-58		16,906,779	841,726
Series 2017-61, Class IO	0.764	05-16-59		1,877,370	114,817
Series 2017-74, Class IO	0.718	09-16-58		2,953,818	140,942
Series 2017-89, Class IO	0.765	07-16-59		3,466,126	224,555
Series 2018-114, Class IO	0.555	04-16-60		3,623,269	197,728
Series 2018-68, Class A	2.850	04-16-50		686,413	710,751
Series 2018-9, Class IO	0.557	01-16-60		2,165,959	116,369

	Rate (%)	Maturity date		Par value^	Value
Asset backed securities 1.0%					$2,988,988
(Cost $3,015,534)
Asset backed securities 1.0%					2,988,988
Bravo Mortgage Asset Trust Series 2006-1A, Class A2 (1 month LIBOR + 0.240%) (B)(D)	0.408	07-25-36		185,709	184,008
Pennsylvania Higher Education Assistance Agency Series 2006-2, Class A3 (3 month LIBOR + 0.130%) (D)	1.121	10-25-36		858,424	807,657
TAL Advantage V LLC Series 2014-1A, Class A (B)	3.510	02-22-39		146,250	144,510
Towd Point Mortgage Trust
Series 2017-1, Class A1 (B)(C)	2.750	10-25-56		103,002	104,487
Series 2017-2, Class A1 (B)(C)	2.750	04-25-57		79,223	80,355
Series 2017-3, Class A1 (B)(C)	2.750	07-25-57		1,056,981	1,073,164
Series 2017-5, Class A1 (1 month LIBOR + 0.600%) (B)(D)	0.768	02-25-57		605,133	594,807

    

		Yield (%)		Shares	Value
Short-term investments 1.7%					$5,396,628
(Cost $5,396,828)
Short-term funds 1.7%					5,396,628
John Hancock Collateral Trust (E)		0.3653(F)		539,032	5,396,628

    

Total investments (Cost $297,851,261) 99.6%					$315,887,022
Other assets and liabilities, net 0.4%					1,337,502
Total net assets 100.0%					$317,224,524

    

The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund.
^All par values are denominated in U.S. dollars unless otherwise indicated.
Security Abbreviations and Legend
IO	Interest-Only Security - (Interest Tranche of Stripped Mortgage Pool). Rate shown is the annualized yield at the end of the period.
LIBOR	London Interbank Offered Rate
(A)	Security purchased or sold on a when-issued or delayed delivery basis.
(B)	These securities are exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be resold, normally to qualified institutional buyers, in transactions exempt from registration.
(C)	Variable or floating rate security, the interest rate of which adjusts periodically based on a weighted average of interest rates and prepayments on the underlying pool of assets. The interest rate shown is the current rate as of period end.
(D)	Variable rate obligation. The coupon rate shown represents the rate at period end.
(E)	Investment is an affiliate of the fund, the advisor and/or subadvisor.
(F)	The rate shown is the annualized seven-day yield as of 5-31-20.

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JOHN HANCOCK GOVERNMENT INCOME FUND | ANNUAL REPORT

SEE NOTES TO FINANCIAL STATEMENTS

DERIVATIVES

FUTURES

Open contracts	Number of contracts	Position	Expiration date	Notional basis^	Notional value^	Unrealized appreciation (depreciation)
2-Year U.S. Treasury Note Futures	91	Long	Sep 2020	$20,094,126	$20,096,781	$2,655
5-Year U.S. Treasury Note Futures	101	Long	Sep 2020	12,672,553	12,688,126	15,573
						$18,228

^ Notional basis refers to the contractual amount agreed upon at inception of open contracts; notional value represents the current value of the open contract.

At 5-31-20, the aggregate cost of investments for federal income tax purposes was $298,580,597. Net unrealized appreciation aggregated to $17,324,653, of which $19,466,340 related to gross unrealized appreciation and $2,141,687 related to gross unrealized depreciation.

See Notes to financial statements regarding investment transactions and other derivatives information.

SEE NOTES TO FINANCIAL STATEMENTS

ANNUAL REPORT | JOHN HANCOCK GOVERNMENT INCOME FUND

15

SEE NOTES TO FINANCIAL STATEMENTS

ANNUAL REPORT | JOHN HANCOCK Government Income Fund

17

    

1	Based on average daily shares outstanding.
2	Total returns would have been lower had certain expenses not been reduced during the applicable periods.
3	Does not reflect the effect of sales charges, if any.
4	Less than $500,000.

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JOHN HANCOCK Government Income Fund | ANNUAL REPORT

SEE NOTES TO FINANCIAL STATEMENTS

    

1	Based on average daily shares outstanding.
2	Total returns would have been lower had certain expenses not been reduced during the applicable periods.
3	Does not reflect the effect of sales charges, if any.

SEE NOTES TO FINANCIAL STATEMENTS

ANNUAL REPORT | JOHN HANCOCK Government Income Fund

21

    

1	The inception date for Class I shares is 9-9-16.
2	Based on average daily shares outstanding.
3	Total returns would have been lower had certain expenses not been reduced during the applicable periods.
4	Not annualized.
5	Annualized.
6	Portfolio turnover is shown for the period from 6-1-16 to 5-31-17.

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JOHN HANCOCK Government Income Fund | ANNUAL REPORT

SEE NOTES TO FINANCIAL STATEMENTS

    

1	The inception date for Class R6 shares is 8-30-17.
2	Based on average daily shares outstanding.
3	Total returns would have been lower had certain expenses not been reduced during the applicable periods.
4	Not annualized.
5	Annualized.
6	Portfolio turnover is shown for the period from 6-1-17 to 5-31-18.

SEE NOTES TO FINANCIAL STATEMENTS

ANNUAL REPORT | JOHN HANCOCK Government Income Fund

23

Notes to financial statements

fund's own assumptions in determining the fair value of investments. Factors used in determining value may include market or issuer specific events or trends, changes in interest rates and credit quality. The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Changes in valuation techniques and related inputs may result in transfers into or out of an assigned level within the disclosure hierarchy.

The following is a summary of the values by input classification of the fund's investments as of May 31, 2020, by major security category or type:

When-issued/delayed-delivery securities. The fund may purchase or sell debt securities on a when-issued or delayed-delivery basis, or in a “To Be Announced” (TBA) or “forward commitment” transaction, with delivery or payment to occur at a later date beyond the normal settlement period. TBA securities resulting from these transactions are included in the portfolio or in a schedule to the portfolio (Sale Commitments Outstanding). At the time a fund enters into a commitment to purchase or sell a security, the transaction is recorded and the value of the security is reflected in its NAV. The price of such security and the date that the security will be delivered and paid for are fixed at the time the transaction is negotiated. The value of the security may vary with market fluctuations. No interest accrues until settlement takes place. At the time that the fund enters into this type of transaction, the fund is required to have sufficient cash and/or liquid securities to cover its commitments.

Certain risks may arise upon entering into when-issued or delayed-delivery securities transactions, including the potential inability of counterparties to meet the terms of their contracts, and the issuer’s failure to issue the securities due to political, economic or other factors. Additionally, losses may arise due to declines in the value of the securities purchased or increase in the value of securities sold prior to settlement date.

Stripped securities. Stripped securities are financial instruments structured to separate principal and interest cash flows so that one class receives principal payments from the underlying assets (PO or principal only), while the other class receives the interest cash flows (IO or interest only). Both PO and IO investments represent an interest in the cash flows of an underlying stripped security. If the underlying assets experience greater than anticipated prepayments of principal, the fund may fail to fully recover its initial investment in an IO security. The market value of these securities can be extremely volatile in response to changes in interest rates or prepayments on the underlying securities. In addition, these securities present additional credit risk such that the fund may not receive all or part of its principal or interest payments because the borrower or issuer has defaulted on its obligation.

ANNUAL REPORT | JOHN HANCOCK Government Income Fund

25

Mortgage and asset backed securities. The fund may invest in mortgage-related securities, such as mortgage-backed securities, and other asset-backed securities, which are debt obligations that represent interests in pools of mortgages or other income-bearing assets, such as consumer loans or receivables. Such securities often involve risks that are different from the risks associated with investing in other types of debt securities. Mortgage-backed and other asset-backed securities are subject to changes in the payment patterns of borrowers of the underlying debt. When interest rates fall, borrowers are more likely to refinance or prepay their debt before its stated maturity. This may result in the fund having to reinvest the proceeds in lower yielding securities, effectively reducing the fund's income. Conversely, if interest rates rise and borrowers repay their debt more slowly than expected, the time in which the mortgage-backed and other asset-backed securities are paid off could be extended, reducing the fund's cash available for reinvestment in higher yielding securities. The timely payment of principal and interest of certain mortgage-related securities is guaranteed with the full faith and credit of the U.S. Government. Pools created and guaranteed by non-governmental issuers, including government-sponsored corporations (e.g. FNMA), may be supported by various forms of insurance or guarantees, but there can be no assurance that private insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. The fund is also subject to risks associated with securities with contractual cash flows including asset-backed and mortgage related securities such as collateralized mortgage obligations, mortgage pass-through securities and commercial mortgage-backed securities. The value, liquidity and related income of these securities are sensitive to changes in economic conditions, including real estate value, pre-payments, delinquencies and/or defaults, and may be adversely affected by shifts in the market’s perception of the issuers and changes in interest rates.

Security transactions and related investment income. Investment security transactions are accounted for on a trade date plus one basis for daily NAV calculations. However, for financial reporting purposes, investment transactions are reported on trade date. Interest income is accrued as earned. Interest income includes coupon interest and amortization/accretion of premiums/discounts on debt securities. Debt obligations may be placed in a non-accrual status and related interest income may be reduced by stopping current accruals and writing off interest receivable when the collection of all or a portion of interest has become doubtful. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds from litigation.

Securities lending. The fund may lend its securities to earn additional income. The fund receives collateral from the borrower in an amount not less than the market value of the loaned securities. The fund will invest its cash collateral in John Hancock Collateral Trust (JHCT), an affiliate of the fund, which has a floating NAV and is registered with the Securities and Exchange Commission (SEC) as an investment company. JHCT invests in short-term money market investments. The fund will receive the benefit of any gains and bear any losses generated by JHCT with respect to the cash collateral.

The fund has the right to recall loaned securities on demand. If a borrower fails to return loaned securities when due, then the lending agent is responsible and indemnifies the fund for the lent securities. The lending agent uses the collateral received from the borrower to purchase replacement securities of the same issue, type, class and series of the loaned securities. If the value of the collateral is less than the purchase cost of replacement securities, the lending agent is responsible for satisfying the shortfall but only to the extent that the shortfall is not due to any decrease in the value of JHCT.

Although the risk of loss on securities lent is mitigated by receiving collateral from the borrower and through lending agent indemnification, the fund could experience a delay in recovering securities or could experience a lower than expected return if the borrower fails to return the securities on a timely basis. The fund receives compensation for lending its securities by retaining a portion of the return on the investment of the collateral and compensation from fees earned from borrowers of the securities. Securities lending income received by the fund is net of fees retained by the securities lending agent. Net income received from JHCT is a component of securities lending income as recorded on the Statement of operations. As of May 31, 2020, there were no securities on loan.

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JOHN HANCOCK Government Income Fund | ANNUAL REPORT

Overdraft. The fund may have the ability to borrow from banks for temporary or emergency purposes, including meeting redemption requests that otherwise might require the untimely sale of securities. Pursuant to the fund's custodian agreement, the custodian may loan money to the fund to make properly authorized payments. The fund is obligated to repay the custodian for any overdraft, including any related costs or expenses. The custodian may have a lien, security interest or security entitlement in any fund property that is not otherwise segregated or pledged, to the extent of any overdraft, and to the maximum extent permitted by law.

Line of credit. The fund and other affiliated funds have entered into a syndicated line of credit agreement with Citibank, N.A. as the administrative agent that enables them to participate in a $750 million unsecured committed line of credit. Excluding commitments designated for a certain fund and subject to the needs of all other affiliated funds, the fund can borrow up to an aggregate commitment amount of $500 million, subject to asset coverage and other limitations as specified in the agreement. A commitment fee payable at the end of each calendar quarter, based on the average daily unused portion of the line of credit, is charged to each participating fund based on a combination of fixed and asset based allocations and is reflected in Other expenses on the Statement of operations. For the year ended May 31, 2020, the fund had no borrowings under the line of credit. Commitment fees for the year ended May 31, 2020 were $3,035.

Expenses. Within the John Hancock group of funds complex, expenses that are directly attributable to an individual fund are allocated to such fund. Expenses that are not readily attributable to a specific fund are allocated among all funds in an equitable manner, taking into consideration, among other things, the nature and type of expense and the fund’s relative net assets. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.

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 net assets of the class. Class-specific expenses, such as distribution and service fees, if any, and transfer agent fees, for all classes, are charged daily at the class level based on the net assets of each class and the specific expense rates applicable to each class.

Change in accounting principle. Accounting Standards Update (ASU) 2017-08, Premium Amortization on Purchased Callable Debt Securities, shortens the premium amortization period for purchased non contingently callable debt securities and is effective for public companies with fiscal years beginning after December 15, 2018. Adoption of the ASU did not have a material impact to the fund.

Federal income taxes. The fund intends to continue to qualify 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, as of May 31, 2020, the fund has a short-term capital loss carryforward of $4,056,892 and a long-term capital loss carryforward of $6,902,844 available to offset future net realized capital gains. These carryforwards do not expire.

As of May 31, 2020, the fund had no uncertain tax positions that would require financial statement recognition, derecognition or disclosure. The fund's federal tax returns are subject to examination by the Internal Revenue Service for a period of three years.

Distribution of income and gains. Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-date. The fund generally declares dividends daily and pays them monthly. Capital gain distributions, if any, are typically distributed annually.

The tax character of distributions for the years ended May 31, 2020 and 2019 was as follows:

	May 31, 2020	May 31, 2019
Ordinary income	$4,112,730	$6,140,967

ANNUAL REPORT | JOHN HANCOCK Government Income Fund

27

Distributions paid by the fund with respect to each class of shares are calculated in the same manner, at the same time and in the same amount, except for the effect of class level expenses that may be applied differently to each class. As of May 31, 2020, the components of distributable earnings on a tax basis consisted of $507,048 of undistributed ordinary income.

Such distributions and distributable earnings, on a tax basis, are determined in conformity with income tax regulations, which may differ from US GAAP. Distributions in excess of tax basis earnings and profits, if any, are reported in the fund's financial statements as a return of capital.

Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences, if any, will reverse in a subsequent period. Book-tax differences are primarily attributable to amortization and accretion on debt securities.

Note 3—Derivative instruments

The fund may invest in derivatives in order to meet its investment objective. Derivatives include a variety of different instruments that may be traded in the over-the-counter (OTC) market, on a regulated exchange or through a clearing facility. The risks in using derivatives vary depending upon the structure of the instruments, including the use of leverage, optionality, the liquidity or lack of liquidity of the contract, the creditworthiness of the counterparty or clearing organization and the volatility of the position. Some derivatives involve risks that are potentially greater than the risks associated with investing directly in the referenced securities or other referenced underlying instrument. Specifically, the fund is exposed to the risk that the counterparty to an OTC derivatives contract will be unable or unwilling to make timely settlement payments or otherwise honor its obligations. OTC derivatives transactions typically can only be closed out with the other party to the transaction.

Certain derivatives are traded or cleared on an exchange or central clearinghouse. Exchange-traded or centrally-cleared transactions generally present less counterparty risk to a fund than OTC transactions. The exchange or clearinghouse stands between the fund and the broker to the contract and therefore, credit risk is generally limited to the failure of the exchange or clearinghouse and the clearing member.

Futures. A futures contract is a contractual agreement to buy or sell a particular currency or financial instrument at a pre-determined price in the future. Futures are traded on an exchange and cleared through a central clearinghouse. Risks related to the use of futures contracts include possible illiquidity of the futures markets and contract prices that can be highly volatile and imperfectly correlated to movements in the underlying financial instrument and potential losses in excess of the amounts recognized on the Statement of assets and liabilities. Use of long futures contracts subjects the fund to the risk of loss up to the notional value of the futures contracts. Use of short futures contracts subjects the fund to unlimited risk of loss.

Upon entering into a futures contract, the fund is required to deposit initial margin with the broker in the form of cash or securities. The amount of required margin is set by the broker and is generally based on a percentage of the contract value. The margin deposit must then be maintained at the established level over the life of the contract. Cash that has been pledged by the fund is detailed in the Statement of assets and liabilities as Collateral held at broker for futures contracts. Securities pledged by the fund, if any, are identified in the Fund's investments. Subsequent payments, referred to as variation margin, are made or received by the fund periodically and are based on changes in the market value of open futures contracts. Futures contracts are marked-to-market daily and unrealized gain or loss is recorded by the fund. Receivable for futures variation margin is included on the Statement of assets and liabilities. When the contract is closed, the fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

During the year ended May 31, 2020, the fund used futures contracts to manage the duration of the fund. The fund held futures contracts with USD notional values ranging from $16.1 million to $32.8 million, as measured at each quarter end.

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JOHN HANCOCK Government Income Fund | ANNUAL REPORT

Fair value of derivative instruments by risk category

The table below summarizes the fair value of derivatives held by the fund at May 31, 2020 by risk category:

ANNUAL REPORT | JOHN HANCOCK Government Income Fund

29

The Advisor has contractually agreed to waive a portion of its management fee and/or reimburse expenses for certain funds of the John Hancock group of funds complex, including the fund (the participating portfolios). This waiver is based upon aggregate net assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund. During the year ended May 31, 2020, this waiver amounted to 0.01% of the fund’s average daily net assets. This arrangement expires on July 31, 2022, unless renewed by mutual agreement of the fund and the Advisor based upon a determination that this is appropriate under the circumstances at that time.

The Advisor has contractually agreed to waive all or a portion of its management fee and/or reimburse or pay operating expenses of the fund to the extent necessary to maintain the total operating expenses at 0.98% for Class A shares, excluding certain expenses such as taxes, brokerage commissions, interest expense, litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of the fund’s business, acquired fund fees and expenses paid indirectly, borrowing costs, prime brokerage fees and short dividend expense. The fee waiver and/or expense reimbursements will expire on September 30, 2021, unless renewed by mutual agreement of the fund and the Advisor based upon a determination that this is appropriate under the circumstances at the time.

For the year ended May 31, 2020, the expense reductions described above amounted to the following:

Sales charges. Class A shares are assessed up-front sales charges, which resulted in payments to the Distributor amounting to $182,827 for the year ended May 31, 2020. Of this amount, $26,903 was retained and used for printing prospectuses, advertising, sales literature and other purposes and $155,924 was paid as sales commissions to broker-dealers.

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JOHN HANCOCK Government Income Fund | ANNUAL REPORT

Class A, Class B and Class C shares may be subject to contingent deferred sales charges (CDSCs). Certain Class A shares that are acquired through purchases of $1 million or more and are redeemed within one year of purchase are subject to a 1.00% sales charge. Class B shares that are redeemed within six years of purchase are subject to CDSCs, at declining rates, beginning at 5.00%. Class C shares that are redeemed within one year of purchase are subject to a 1.00% CDSC. CDSCs are applied to the lesser of the current market value at the time of redemption or the original purchase cost of the shares being redeemed. Proceeds from CDSCs are used to compensate the Distributor for providing distribution-related services in connection with the sale of these shares. During the year ended May 31, 2020, CDSCs received by the Distributor amounted to $12,188 and $396 for Class A and Class C shares, respectively. During the year ended May 31, 2020, there were no CDSCs received by the Distributor for Class B shares.

Transfer agent fees. The John Hancock group of funds has a complex-wide transfer agent agreement with John Hancock Signature Services, Inc. (Signature Services), an affiliate of the Advisor. The transfer agent fees paid to Signature Services are determined based on the cost to Signature Services (Signature Services Cost) of providing recordkeeping services. It also includes out-of-pocket expenses, including payments made to third-parties for recordkeeping services provided to their clients who invest in one or more John Hancock funds. In addition, Signature Services Cost may be reduced by certain fees that Signature Services receives in connection with retirement and small accounts. Signature Services Cost is calculated monthly and allocated, as applicable, to five categories of share classes: Retail Share and Institutional Share Classes of Non-Municipal Bond Funds, Class R6 Shares, Retirement Share Classes and Municipal Bond Share Classes. Within each of these categories, the applicable costs are allocated to the affected John Hancock affiliated funds and/or classes, based on the relative average daily net assets.

Class level expenses. Class level expenses for the year ended May 31, 2020 were as follows:

Class	Distribution and service fees	Transfer agent fees
Class A	$563,482	$281,720
Class B	5,518	682
Class C	61,111	7,660
Class I	—	10,436
Class R6	—	2,985
Total	$630,111	$303,483

Trustee expenses. The fund compensates each Trustee who is not an employee of the Advisor or its affiliates. The costs of paying Trustee compensation and expenses are allocated to the fund based on its net assets relative to other funds within the John Hancock group of funds complex.

Note 6—Fund share transactions

Transactions in fund shares for the years ended May 31, 2020 and 2019 were as follows:

	Year Ended 5-31-20		Year Ended 5-31-19
	Shares	Amount	Shares	Amount
Class B shares
Sold	885	$8,945	346	$3,152
Distributions reinvested	432	4,129	1,989	18,003
Repurchased	(62,916)	(603,260)	(81,505)	(736,331)
Net decrease	(61,599)	$(590,186)	(79,170)	$(715,176)
Class C shares
Sold	501,933	$4,965,226	175,871	$1,592,839
Distributions reinvested	4,511	43,499	13,175	119,382
Repurchased	(321,842)	(3,102,667)	(443,766)	(4,013,330)
Net increase (decrease)	184,602	$1,906,058	(254,720)	$(2,301,109)
Class I shares
Sold	2,655,974	$26,464,768	286,094	$2,598,653
Distributions reinvested	13,790	135,128	12,083	109,738
Repurchased	(1,056,468)	(10,554,687)	(197,902)	(1,787,137)
Net increase	1,613,296	$16,045,209	100,275	$921,254
Class R6 shares
Sold	2,354,504	$23,363,655	368,226	$3,336,578
Distributions reinvested	42,770	414,796	59,163	536,828
Repurchased	(659,887)	(6,453,321)	(667,965)	(6,042,108)
Net increase (decrease)	1,737,387	$17,325,130	(240,576)	$(2,168,702)
Total net increase (decrease)	4,949,195	$49,557,028	(1,681,070)	$(15,135,071)

Note 7—Purchase and sale of securities

Purchases and sales of securities, other than short-term investments and U.S. Treasury obligations, amounted to $36,664,116 and $38,297,528, respectively, for the year ended May 31, 2020. Purchases and sales of U.S. Treasury obligations aggregated $446,541,789 and $396,659,694, respectively, for the year ended May 31, 2020.

Note 8—Investment in affiliated underlying funds

The fund may invest in affiliated underlying funds that are managed by the Advisor and its affiliates. Information regarding the fund's fiscal year to date purchases and sales of the affiliated underlying funds as well as income and capital gains earned by the fund, if any, is as follows:

							Dividends and distributions
Affiliate	Ending share amount	Beginning value	Cost of purchases	Proceeds from shares sold	Realized gain (loss)	Change in unrealized appreciation (depreciation)	Income distributions received	Capital gain distributions received	Ending value
John Hancock Collateral Trust*	539,032	—	$293,727,061	$(288,346,516)	$16,283	$(200)	$65,515	—	$5,396,628

    

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JOHN HANCOCK Government Income Fund | ANNUAL REPORT

*	Refer to the Securities lending note within Note 2 for details regarding this investment.

Note 9—LIBOR discontinuation risk

LIBOR (London Interbank Offered Rate) is a measure of the average interest rate at which major global banks can borrow from one another. Following allegations of rate manipulation and concerns regarding its thin liquidity, in July 2017, the U.K. Financial Conduct Authority, which regulates LIBOR, announced that it will stop encouraging banks to provide the quotations needed to sustain LIBOR after 2021. This event will likely cause LIBOR to cease to be published. Before then, it is expected that market participants will transition to the use of different reference or benchmark rates. However, although regulators have suggested alternative rates, there is currently no definitive information regarding the future utilization of LIBOR or of any replacement rate.

It is uncertain what impact the discontinuation of LIBOR will have on the use of LIBOR as a reference rate for securities in which the fund invests. It is expected that market participants will amend financial instruments referencing LIBOR to include fallback provisions and other measures that contemplate the discontinuation of LIBOR or other similar market disruption events, but neither the effect of the transition process nor the viability of such measures is known. In addition, there are obstacles to converting certain longer term securities and transactions to a new benchmark or benchmarks and the effectiveness of one alternative reference rate versus multiple alternative reference rates in new or existing financial instruments and products has not been determined. As market participants transition away from LIBOR, LIBOR's usefulness may deteriorate, which could occur prior to the end of 2021. The transition process may lead to increased volatility and illiquidity in markets that currently rely on LIBOR to determine interest rates. LIBOR's deterioration may adversely affect the liquidity and/or market value of securities that use LIBOR as a benchmark interest rate.

Note 10—Coronavirus (COVID-19) pandemic

The novel COVID-19 disease has resulted in significant disruptions to global business activity. A widespread health crisis such as a global pandemic could cause substantial market volatility, exchange trading suspensions and closures, impact the ability to complete redemptions, and affect fund performance.

ANNUAL REPORT | JOHN HANCOCK Government Income Fund

33

Independent Trustees (continued)

Name, year of birth Position(s) held with Trust Principal occupation(s) and other directorships during past 5 years	Trustee of the Trust since1	Number of John Hancock funds overseen by Trustee
Deborah C. Jackson, Born: 1952	2008	195
Trustee President, Cambridge College, Cambridge, Massachusetts (since 2011); Board of Directors, Massachusetts Women's Forum (since 2018); Board of Directors, National Association of Corporate Directors/New England (since 2015); Board of Directors, Association of Independent Colleges and Universities of Massachusetts (2014-2017); Chief Executive Officer, American Red Cross of Massachusetts Bay (2002-2011); Board of Directors of Eastern Bank Corporation (since 2001); Board of Directors of Eastern Bank Charitable Foundation (since 2001); Board of Directors of American Student Assistance Corporation (1996-2009); Board of Directors of Boston Stock Exchange (2002-2008); Board of Directors of Harvard Pilgrim Healthcare (health benefits company) (2007-2011). Trustee of various trusts within the John Hancock Fund Complex (since 2008).

James M. Oates,2 Born: 1946	2012	195
Trustee Managing Director, Wydown Group (financial consulting firm) (since 1994); Chairman and Director, Emerson Investment Management, Inc. (2000-2015); Independent Chairman, Hudson Castle Group, Inc. (formerly IBEX Capital Markets, Inc.) (financial services company) (1997-2011); Director, Stifel Financial (since 1996); Director, Investor Financial Services Corporation (1995-2007); Director, Connecticut River Bancorp (1998-2014); Director/Trustee, Virtus Funds (since 1988). Trustee (since 2004) and Chairperson of the Board (2005-2016) of various trusts within the John Hancock Fund Complex.

Steven R. Pruchansky, Born: 1944	1994	195
Trustee and Vice Chairperson of the Board Managing Director, Pru Realty (since 2017); Chairman and Chief Executive Officer, Greenscapes of Southwest Florida, Inc. (2014-2020); Director and President, Greenscapes of Southwest Florida, Inc. (until 2000); Member, Board of Advisors, First American Bank (until 2010); Managing Director, Jon James, LLC (real estate) (since 2000); Partner, Right Funding, LLC (2014-2017); Director, First Signature Bank & Trust Company (until 1991); Director, Mast Realty Trust (until 1994); President, Maxwell Building Corp. (until 1991). Trustee (since 1992), Chairperson of the Board (2011-2012), and Vice Chairperson of the Board (since 2012) of various trusts within the John Hancock Fund Complex.

Gregory A. Russo, Born: 1949	2009	195
Trustee Director and Audit Committee Chairman (2012-2020), and Member, Audit Committee and Finance Committee (2011-2020), NCH Healthcare System, Inc. (holding company for multi-entity healthcare system); Director and Member (2012-2018) and Finance Committee Chairman (2014-2018), The Moorings, Inc. (nonprofit continuing care community); Vice Chairman, Risk & Regulatory Matters, KPMG LLP (KPMG) (2002-2006); Vice Chairman, Industrial Markets, KPMG (1998-2002); Chairman and Treasurer, Westchester County, New York, Chamber of Commerce (1986-1992); Director, Treasurer, and Chairman of Audit and Finance Committees, Putnam Hospital Center (1989-1995); Director and Chairman of Fundraising Campaign, United Way of Westchester and Putnam Counties, New York (1990-1995). Trustee of various trusts within the John Hancock Fund Complex (since 2008).

Non-Independent Trustees³

Name, year of birth Position(s) held with Trust Principal occupation(s) and other directorships during past 5 years	Trustee of the Trust since1	Number of John Hancock funds overseen by Trustee
Andrew G. Arnott, Born: 1971	2017	195
President and Non-Independent Trustee Head of Wealth and Asset Management, United States and Europe, for John Hancock and Manulife (since 2018); Executive Vice President, John Hancock Financial Services (since 2009, including prior positions); Director and Executive Vice President, John Hancock Investment Management LLC (since 2005, including prior positions); Director and Executive Vice President, John Hancock Variable Trust Advisers LLC (since 2006, including prior positions); President, John Hancock Investment Management Distributors LLC (since 2004, including prior positions); President of various trusts within the John Hancock Fund Complex (since 2007, including prior positions). Trustee of various trusts within the John Hancock Fund Complex (since 2017).

Marianne Harrison, Born: 1963	2018	195
Non-Independent Trustee President and CEO, John Hancock (since 2017); President and CEO, Manulife Canadian Division (2013-2017); Member, Board of Directors, CAE Inc. (since 2019); Member, Board of Directors, MA Competitive Partnership Board (since 2018); Member, Board of Directors, American Council of Life Insurers (ACLI) (since 2018); Member, Board of Directors, Communitech, an industry-led innovation center that fosters technology companies in Canada (2017-2019); Member, Board of Directors, Manulife Assurance Canada (2015-2017); Board Member, St. Mary's General Hospital Foundation (2014-2017); Member, Board of Directors, Manulife Bank of Canada (2013-2017); Member, Standing Committee of the Canadian Life & Health Assurance Association (2013-2017); Member, Board of Directors, John Hancock USA, John Hancock Life & Health, John Hancock New York (2012-2013). Trustee of various trusts within the John Hancock Fund Complex (since 2018).

Principal officers who are not Trustees

Name, year of birth Position(s) held with Trust Principal occupation(s) during past 5 years	Officer of the Trust since
Francis V. Knox, Jr., Born: 1947	2005
Chief Compliance Officer Vice President, John Hancock Financial Services (since 2005); Chief Compliance Officer, various trusts within the John Hancock Fund Complex, John Hancock Investment Management LLC, and John Hancock Variable Trust Advisers LLC (since 2005).

Charles A. Rizzo, Born: 1957	2007
Chief Financial Officer Vice President, John Hancock Financial Services (since 2008); Senior Vice President, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2008); Chief Financial Officer of various trusts within the John Hancock Fund Complex (since 2007).

Salvatore Schiavone, Born: 1965	2010
Treasurer Assistant Vice President, John Hancock Financial Services (since 2007); Vice President, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2007); Treasurer of various trusts within the John Hancock Fund Complex (since 2007, including prior positions).

Principal officers who are not Trustees (continued)

Name, year of birth Position(s) held with Trust Principal occupation(s) during past 5 years	Officer of the Trust since
Christopher (Kit) Sechler, Born: 1973	2018
Chief Legal Officer and Secretary Vice President and Deputy Chief Counsel, John Hancock Investments (since 2015); Assistant Vice President and Senior Counsel (2009-2015), John Hancock Investment Management; Chief Legal Officer and Secretary of various trusts within the John Hancock Fund Complex (since 2018); Assistant Secretary of John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2009).

The business address for all Trustees and Officers is 200 Berkeley Street, Boston, Massachusetts 02116-5023.

The Statement of Additional Information of the fund includes additional information about members of the Board of Trustees of the Trust and is available without charge, upon request, by calling 800-225-5291.

1	Each Trustee holds office until his or her successor is elected and qualified, or until the Trustee's death, retirement, resignation, or removal. Mr. Boyle has served as Trustee at various times prior to the date listed in the table.
2	Member of the Audit Committee.
3	The Trustee is a Non-Independent Trustee due to current or former positions with the Advisor and certain affiliates.

Trustees Hassell H. McClellan, Chairperson Steven R. Pruchansky, Vice Chairperson Andrew G. Arnott† Charles L. Bardelis* James R. Boyle Peter S. Burgess* William H. Cunningham Grace K. Fey Marianne Harrison† Deborah C. Jackson James M. Oates* Gregory A. Russo Officers Andrew G. Arnott President Francis V. Knox, Jr. Chief Compliance Officer Charles A. Rizzo Chief Financial Officer Salvatore Schiavone Treasurer Christopher (Kit) Sechler Secretary and Chief Legal Officer

Investment advisor John Hancock Investment Management LLC Subadvisor Manulife Investment Management (US) LLC Portfolio Managers Jeffrey N. Given, CFA Howard C. Greene, CFA Principal distributor John Hancock Investment Management Distributors LLC Custodian State Street Bank and Trust Company Transfer agent John Hancock Signature Services, Inc. Legal counsel K&L Gates LLP Independent registered public accounting firm PricewaterhouseCoopers LLP

* Member of the Audit Committee
† Non-Independent Trustee

The fund's proxy voting policies and procedures, as well as the fund proxy voting record for the most recent twelve-month period ended June 30, are available free of charge on the Securities and Exchange Commission (SEC) website at sec.gov or on our website.

All of the fund's holdings as of the end of the third month of every fiscal quarter are filed with the SEC on Form N-PORT within 60 days of the end of the fiscal quarter. The fund's Form N-PORT filings are available on our website and the SEC's website, sec.gov.

We make this information on your fund, as well as monthly portfolio holdings, and other fund details available on our website at jhinvestments.com or by calling 800-225-5291.

	You can also contact us:
	800-225-5291 jhinvestments.com	Regular mail: John Hancock Signature Services, Inc. PO Box 219909 Kansas City, MO 64121-9909	Express mail: John Hancock Signature Services, Inc. 430 W 7th Street Suite 219909 Kansas City, MO 64105-1407

ANNUAL REPORT   |   JOHN HANCOCK GOVERNMENT INCOME FUND       43

 

DOMESTIC EQUITY FUNDS Blue Chip Growth Classic Value Disciplined Value Disciplined Value Mid Cap Equity Income Financial Industries Fundamental All Cap Core Fundamental Large Cap Core New Opportunities Regional Bank Small Cap Core Small Cap Growth Small Cap Value U.S. Global Leaders Growth U.S. Quality Growth GLOBAL AND INTERNATIONAL EQUITY FUNDS Disciplined Value International Emerging Markets Emerging Markets Equity Fundamental Global Franchise Global Equity Global Shareholder Yield Global Thematic Opportunities International Dynamic Growth International Growth International Small Company		INCOME FUNDS Bond California Tax-Free Income Emerging Markets Debt Floating Rate Income Government Income High Yield High Yield Municipal Bond Income Investment Grade Bond Money Market Short Duration Bond Short Duration Credit Opportunities Strategic Income Opportunities Tax-Free Bond ALTERNATIVE AND SPECIALTY FUNDS Absolute Return Currency Alternative Asset Allocation Alternative Risk Premia Diversified Macro Infrastructure Multi-Asset Absolute Return Seaport Long/Short

A fund's investment objectives, risks, charges, and expenses should be considered carefully before investing. The prospectus contains this and other important information about the fund. To obtain a prospectus, contact your financial professional, call John Hancock Investment Management at 800-225-5291, or visit our website at jhinvestments.com. Please read the prospectus carefully before investing or sending money.

ASSET ALLOCATION Balanced Multi-Asset High Income Multi-Index Lifetime Portfolios Multi-Index Preservation Portfolios Multimanager Lifestyle Portfolios Multimanager Lifetime Portfolios Retirement Income 2040 EXCHANGE-TRADED FUNDS John Hancock Multifactor Consumer Discretionary ETF John Hancock Multifactor Consumer Staples ETF John Hancock Multifactor Developed International ETF John Hancock Multifactor Emerging Markets ETF John Hancock Multifactor Energy ETF John Hancock Multifactor Financials ETF John Hancock Multifactor Healthcare ETF John Hancock Multifactor Industrials ETF John Hancock Multifactor Large Cap ETF John Hancock Multifactor Materials ETF John Hancock Multifactor Media and Communications ETF John Hancock Multifactor Mid Cap ETF John Hancock Multifactor Small Cap ETF John Hancock Multifactor Technology ETF John Hancock Multifactor Utilities ETF		ENVIRONMENTAL, SOCIAL, AND GOVERNANCE FUNDS ESG All Cap Core ESG Core Bond ESG International Equity ESG Large Cap Core CLOSED-END FUNDS Financial Opportunities Hedged Equity & Income Income Securities Trust Investors Trust Preferred Income Preferred Income II Preferred Income III Premium Dividend Tax-Advantaged Dividend Income Tax-Advantaged Global Shareholder Yield

John Hancock Multifactor ETF shares are bought and sold at market price (not NAV), and are not individually redeemed
from the fund. Brokerage commissions will reduce returns.

John Hancock ETFs are distributed by Foreside Fund Services, LLC, and are subadvised by Dimensional Fund Advisors LP.
Foreside is not affiliated with John Hancock Investment Management Distributors LLC or Dimensional Fund Advisors LP.

Dimensional Fund Advisors LP receives compensation from John Hancock in connection with licensing rights to the
John Hancock Dimensional indexes. Dimensional Fund Advisors LP does not sponsor, endorse, or sell, and makes no
representation as to the advisability of investing in, John Hancock Multifactor ETFs.

John Hancock Investment Management

A trusted brand

John Hancock Investment Management is a premier asset manager
representing one of America's most trusted brands, with a heritage of
financial stewardship dating back to 1862. Helping our shareholders
pursue their financial goals is at the core of everything we do. It's why
we support the role of professional financial advice and operate with
the highest standards of conduct and integrity.

A better way to invest

We serve investors globally through a unique multimanager approach:
We search the world to find proven portfolio teams with specialized
expertise for every strategy we offer, then we apply robust investment
oversight to ensure they continue to meet our uncompromising
standards and serve the best interests of our shareholders.

Results for investors

Our unique approach to asset management enables us to provide
a diverse set of investments backed by some of the world's best
managers, along with strong risk-adjusted returns across asset classes.

John Hancock Investment Management Distributors LLC n Member FINRA, SIPC
200 Berkeley Street n Boston, MA 02116-5010 n 800-225-5291 n jhinvestments.com

This report is for the information of the shareholders of John Hancock Government Income Fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by a prospectus.

MF1210533	56A 5/20 7/2020

John Hancock

Investment Grade Bond Fund

Annual report 5/31/2020

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the fund's shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change, and you do not need to take any action. You may elect to receive shareholder reports and other communications electronically by calling John Hancock Investment Management at 800-225-5291 (Class A, Class B and Class C shares) or 888-972-8696 (Class I, Class R2, Class R4 and Class R6 shares) or by contacting your financial intermediary.

You may elect to receive all reports in paper, free of charge, at any time. You can inform John Hancock Investment Management or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by following the instructions listed above. Your election to receive reports in paper will apply to all funds held with John Hancock Investment Management or your financial intermediary.

Dear shareholder,

Global financial markets delivered strong returns during first half of the 12-month period ended May 31, 2020; however, heightened fears over the coronavirus (COVID-19) sent markets tumbling during the latter half of February and early March. Investors reacted by exiting higher-risk assets and moving into cash, leading to a liquidity crunch in the fixed-income markets.

In response to the sell-off, the U.S. Federal Reserve acted quickly, lowering interest rates to near zero and reinstating quantitative easing, as well as announcing its plans to shore up short-term debt. These steps, along with the passage of a $2 trillion federal economic stimulus bill, helped lift the markets during the last two months of the period, while credit spreads rebounded off their highs as liquidity concerns eased.

The continued spread of COVID-19, trade disputes, rising unemployment, and other geopolitical tensions may continue to create uncertainty among businesses and investors. Your financial professional can help position your portfolio so that it's sufficiently diversified to seek to meet your long-term objectives and to withstand the inevitable bouts of market volatility along the way. 

On behalf of everyone at John Hancock Investment Management, I'd like to take this opportunity to welcome new shareholders and thank existing shareholders for the continued trust you've placed in us.

Sincerely,

Andrew G. Arnott
President and CEO,
John Hancock Investment Management
Head of Wealth and Asset Management,
United States and Europe

This commentary reflects the CEO's views as of this report's period end and are subject to change at any time. Diversification does not guarantee investment returns and does not eliminate risk of loss. All investments entail risks, including the possible loss of principal. For more up-to-date information, you can visit our website at jhinvestments.com.

ANNUAL REPORT   |   JOHN HANCOCK INVESTMENT GRADE BOND FUND       1

INVESTMENT OBJECTIVE

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The fund seeks a high level of current income consistent with preservation of capital and maintenance of liquidity.

AVERAGE ANNUAL TOTAL RETURNS AS OF 5/31/2020 (%)

---

The Bloomberg Barclays U.S. Aggregate Bond Index is an unmanaged index of dollar-denominated and nonconvertible investment-grade debt issues.

It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns.

The fund's Morningstar category average is a group of funds with similar investment objectives and strategies and is the equal-weighted return of all funds per category. Morningstar places funds in certain categories based on their historical portfolio holdings. Figures from Morningstar, Inc. include reinvested distributions and do not take into account sales charges. Actual load-adjusted performance is lower.

The past performance shown here reflects reinvested distributions and the beneficial effect of any expense reductions, and does not guarantee future results. Performance of the other share classes will vary based on the difference in the fees and expenses of those classes. Shares will fluctuate in value and, when redeemed, may be worth more or less than their original cost. Current month-end performance may be lower or higher than the performance cited, and can be found at jhinvestments.com or by calling 800-225-5291. For further information on the fund's objectives, risks, and strategy, see the fund's prospectus.

ANNUAL REPORT   |   JOHN HANCOCK INVESTMENT GRADE BOND FUND       2

PERFORMANCE HIGHLIGHTS OVER THE LAST TWELVE MONTHS

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Investment-grade bonds rallied

The slowdown in growth associated with COVID-19, together with the U.S. Federal Reserve's decision to cut short-term interest rates to near zero, fueled elevated demand for higher-quality bonds.

The fund trailed its benchmark

Although the fund produced a strong absolute return, it didn't keep pace with the Bloomberg Barclays U.S. Aggregate Bond Index.

Security selection was the primary cause of the shortfall

The fund's holdings in asset-backed securities and corporate bonds underperformed the corresponding benchmark components.

PORTFOLIO COMPOSITION AS OF 5/31/2020 (%)

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ANNUAL REPORT   |   JOHN HANCOCK INVESTMENT GRADE BOND FUND       3

QUALITY COMPOSITION AS OF 5/31/2020 (%)

---

---

A note about risks

The fund may be subject to various risks as described in the fund's prospectus. A widespread health crisis such as a global pandemic could cause substantial market volatility, exchange trading suspensions and closures, impact the ability to complete redemptions, and affect fund performance. For example, the novel coronavirus disease (COVID-19) has resulted in significant disruptions to global business activity. The impact of a health crisis and other epidemics and pandemics that may arise in the future, could affect the global economy in ways that cannot necessarily be foreseen at the present time. A health crisis may exacerbate other pre-existing political, social, and economic risks. Any such impact could adversely affect the fund's performance, resulting in losses to your investment. For more information, please refer to the "Principal risks" section of the prospectus.

ANNUAL REPORT   |   JOHN HANCOCK INVESTMENT GRADE BOND FUND       4

How would you describe the investment backdrop during the 12 months ended May 31, 2020?

Investment-grade bonds produced strong total returns, with meaningful price appreciation augmenting the benefit of income. From the beginning of the period through mid-February 2020, the fixed-income market delivered steady gains thanks in part to stable economic growth and the U.S. Federal Reserve's (Fed's) shift to a more accommodative monetary policy. This environment changed considerably once COVID-19 became the primary driver of investor sentiment midway through the first calendar quarter. The prospect of a dramatic economic slowdown, together with the Fed's decision to cut short-term interest rates to near zero, fueled a remarkable rally in U.S. Treasuries. Corporate bonds lagged in the sell-off, but they subsequently made up the lost ground with an impressive advance in April and May. These trends contributed to a sizable gain for the fund's benchmark, the Bloomberg Barclays U.S. Aggregate Bond Index, with corporates and U.S. Treasuries the largest drivers of the positive return. Securitized assets such as mortgage-backed securities (MBS), while posting gains, lagged somewhat.

What elements of the fund's positioning helped and hurt results?

The fund delivered a positive total return but failed to keep pace with its benchmark. Security selection, particularly among asset-backed securities and corporates, was the primary reason for the shortfall. Sector allocation had a largely neutral effect on results. While overweights in corporates and MBS added value, the benefit was offset by an overweight in commercial mortgage-backed securities and an underweight in U.S. Treasuries. Duration and yield curve positioning also detracted, albeit to a very limited extent.

What were some key aspects of your portfolio activity?

Believing valuations in the credit sectors had become rich in relation to historical levels, we steadily reduced portfolio risk in the second half of 2019 and early 2020. We sought to accomplish this by decreasing the fund's allocations to investment-grade corporate bonds and increasing its weighting in agency MBS. Additionally, we repositioned the portfolio toward the intermediate portion of the yield curve. We refrained from making any major changes to the portfolio during the peak of the COVID-19 crisis, but we increased the fund's weighting in corporates and reduced its position in agency MBS as valuations became more compelling in the sell-off. We

ANNUAL REPORT   |   JOHN HANCOCK INVESTMENT GRADE BOND FUND       5

achieved this largely through additions in high-quality debt in the new issue market, where there was a record level issuance in the first five months of 2020.

At the close of the period, we viewed corporates as the most attractive area of the market based on our cautiously optimistic view on the prospects for the U.S. economy. Still, we maintained a cautious approach given the unusual circumstances facing the economy and markets. We therefore continued to emphasize bottom-up security selection and robust fundamental analysis to identify opportunities among stable, high-quality issuers in the best position to withstand a potentially difficult environment. At the same time, we sought to avoid issuers where our analysis showed that yields weren't adequately compensating investors for the potential risks.

MANAGED BY

---

Howard C. Greene, CFA, Manulife IM (US)

Jeffrey N. Given, CFA, Manulife IM (US)

The views expressed in this report are exclusively those of Howard C. Greene, CFA, and Jeffrey N. Given, CFA, Manulife Investment Management (US) LLC, and are subject to change. They are not meant as investment advice. Please note that the holdings discussed in this report may not have been held by the fund for the entire period. Portfolio composition is subject to review in accordance with the fund's investment strategy and may vary in the future. Current and future portfolio holdings are subject to risk.

ANNUAL REPORT   |   JOHN HANCOCK INVESTMENT GRADE BOND FUND       6

TOTAL RETURNS FOR THE PERIOD ENDED  MAY 31, 2020 

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Average annual total returns (%) with maximum sales charge					Cumulative total returns (%) with maximum sales charge				SEC 30-day yield (%) subsidized		SEC 30-day yield (%) unsubsidized1
	1-year	5-year	10-year			5-year	10-year		as of 5-31-20		as of 5-31-20
Class A	3.37	2.71	3.87			14.31	46.18		1.74		1.66
Class B	1.90	2.42	3.69			12.69	43.61		1.08		1.00
Class C	5.90	2.78	3.52			14.69	41.34		1.08		1.00
Class I2	7.97	3.81	4.59			20.56	56.70		2.06		1.98
Class R22,3	7.57	3.46	4.25			18.54	51.65		1.69		1.61
Class R42,3	7.82	3.69	4.37			19.88	53.39		1.94		1.76
Class R62,3	7.99	3.93	4.49			21.25	55.18		2.19		2.10
Index†	9.42	3.94	3.92			21.34	46.91		—		—

Performance figures assume all distributions have been reinvested. Figures reflect maximum sales charges on Class A shares of 4.0% and the applicable contingent deferred sales charge (CDSC) on Class B and Class C shares. The returns for Class A shares have been adjusted to reflect the reduction in the maximum sales charge from 4.5% to 4.0%, effective 2-3-14. The Class B shares' CDSC declines annually between years 1 to 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 sold within one year of purchase are subject to a 1% CDSC. Sales charges are not applicable to Class I, Class R2, Class R4, and Class R6 shares.

The expense ratios of the fund, both net (including any fee waivers and/or expense limitations) and gross (excluding any fee waivers and/or expense limitations), are set forth according to the most recent publicly available prospectus for the fund and may differ from those disclosed in the Financial highlights tables in this report. Net expenses reflect contractual expense limitations in effect until September 30, 2021 and are subject to change. Had the contractual fee waivers and expense limitations not been in place, gross expenses would apply. The expense ratios are as follows:

	Class A	Class B	Class C	Class I	Class R2	Class R4	Class R6
Gross (%)	0.86	1.61	1.61	0.61	1.00	0.85	0.50
Net (%)	0.75	1.50	1.50	0.50	0.89	0.64	0.39

Please refer to the most recent prospectus and annual or semiannual report for more information on expenses and any expense limitation arrangements for each class.

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 and other factors, the fund's current performance may be higher or lower than the performance shown. For current to the most recent month-end performance data, please call 800-225-5291 or visit the fund's website at jhinvestments.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 fee waivers or expense reductions, without which the expenses would increase and results would have been less favorable.

†	Index is the Bloomberg Barclays U.S. Aggregate Bond Index.

See the following page for footnotes.

ANNUAL REPORT   |   JOHN HANCOCK INVESTMENT GRADE BOND FUND       7

This chart and table show what happened to a hypothetical $10,000 investment in John Hancock Investment Grade Bond Fund for the share classes and periods indicated, assuming all distributions were reinvested. For comparison, we've shown the same investment in the Bloomberg Barclays U.S. Aggregate Bond Index.

	Start date	With maximum sales charge ($)	Without sales charge ($)	Index ($)
Class B4	5-31-10	14,361	14,361	14,691
Class C4	5-31-10	14,134	14,134	14,691
Class I2	5-31-10	15,670	15,670	14,691
Class R22,3	5-31-10	15,165	15,165	14,691
Class R42,3	5-31-10	15,339	15,339	14,691
Class R62,3	5-31-10	15,518	15,518	14,691

The values shown in the chart for Class A shares with maximum sales charge have been adjusted to reflect the reduction in the Class A shares' maximum sales charge from 4.5% to 4.0%, which became effective on 2-3-14.

The Bloomberg Barclays U.S. Aggregate Bond Index is an unmanaged index of dollar-denominated and nonconvertible investment-grade debt issues.

It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns.

Footnotes related to performance pages

1	Unsubsidized yield reflects what the yield would have been without the effect of reimbursements and waivers.
2	For certain types of investors, as described in the fund's prospectuses.
3	Class R2, Class R4, and Class R6 shares were first offered on 3-27-15. Returns prior to this date are those of Class A shares that have not been adjusted for class-specific expenses; otherwise, returns would vary.
4	The contingent deferred sales charge is not applicable.

ANNUAL REPORT   |   JOHN HANCOCK INVESTMENT GRADE BOND FUND       8

These examples are intended to help you understand your ongoing operating expenses of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds.

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 presenting only your ongoing operating expenses here.

Actual expenses/actual returns

The first line of each share class in the table on the following page is intended to provide information about the fund’s actual ongoing operating expenses, and is based on the fund’s actual return. It assumes an account value of $1,000.00 on December 1, 2019, with the same investment held until May 31, 2020.

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 May 31, 2020, by $1,000.00, then multiply it by the “expenses paid” for your share class from the table. For example, for an account value of $8,600.00, the operating expenses should be calculated as follows:

Hypothetical example for comparison purposes

The second line of each share class in the table on the following page allows you to compare the 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% annualized return before expenses (which is not the class’s actual return). It assumes an account value of $1,000.00 on December 1, 2019, with the same investment held until May 31, 2020. Look in any other fund shareholder report to find its hypothetical example and you will be able to compare these expenses. Please remember that these hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period.

ANNUAL REPORT | JOHN HANCOCK INVESTMENT GRADE BOND FUND

9

Remember, these examples do not include any transaction costs, 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 annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period).

AS OF 5-31-20

	Rate (%)	Maturity date		Par value^	Value
U.S. Government and Agency obligations 40.1%					$831,334,528
(Cost $788,002,087)
U.S. Government 14.7%					305,227,160
U.S. Treasury
Bond	2.000	02-15-50		28,761,000	32,878,542
Bond	2.250	08-15-49		17,801,000	21,352,856
Bond	2.750	11-15-42		54,595,000	69,653,410
Bond	3.000	02-15-47		1,282,000	1,742,969
Bond	3.125	11-15-41		27,585,000	37,232,207
Note	0.125	04-30-22		4,310,000	4,307,643
Note	0.375	03-31-22		9,545,000	9,580,794
Note	0.375	04-30-25		46,206,000	46,363,028
Note	0.625	05-15-30		54,052,000	53,899,979
Note	1.625	09-30-26		18,120,000	19,447,148
Treasury Inflation Protected Security	0.250	07-15-29		8,169,069	8,768,584
U.S. Government Agency 25.4%					526,107,368
Federal Home Loan Mortgage Corp.
30 Yr Pass Thru	3.000	03-01-43		452,000	493,157
30 Yr Pass Thru	3.000	03-01-43		3,733,538	4,018,661
30 Yr Pass Thru	3.000	04-01-43		643,015	696,341
30 Yr Pass Thru	3.000	12-01-45		1,545,410	1,661,015
30 Yr Pass Thru	3.000	10-01-46		1,743,700	1,865,747
30 Yr Pass Thru	3.000	10-01-46		1,321,189	1,409,700
30 Yr Pass Thru	3.000	12-01-46		4,803,785	5,100,085
30 Yr Pass Thru	3.000	12-01-46		1,122,218	1,210,374
30 Yr Pass Thru	3.000	04-01-47		774,075	825,933
30 Yr Pass Thru	3.000	04-01-47		11,103,731	11,725,918
30 Yr Pass Thru	3.000	09-01-49		13,257,214	14,000,069
30 Yr Pass Thru	3.000	10-01-49		8,769,331	9,243,721
30 Yr Pass Thru	3.000	10-01-49		4,936,621	5,216,325
30 Yr Pass Thru	3.000	12-01-49		15,333,455	16,250,150
30 Yr Pass Thru	3.000	12-01-49		20,387,089	21,472,120
30 Yr Pass Thru	3.000	02-01-50		16,115,777	16,978,519
30 Yr Pass Thru	3.500	02-01-42		1,264,078	1,378,499
30 Yr Pass Thru	3.500	04-01-44		647,226	713,699
30 Yr Pass Thru	3.500	07-01-46		2,767,602	2,975,653
30 Yr Pass Thru	3.500	10-01-46		1,978,081	2,160,763
30 Yr Pass Thru	3.500	11-01-46		1,834,539	1,979,385
30 Yr Pass Thru	3.500	12-01-46		1,023,071	1,108,324
30 Yr Pass Thru	3.500	01-01-47		6,552,050	7,149,218
30 Yr Pass Thru	3.500	02-01-47		1,837,087	1,975,532
30 Yr Pass Thru	3.500	04-01-47		1,142,488	1,246,617
30 Yr Pass Thru	3.500	11-01-47		2,808,667	3,011,993

Fund’ s investments

	Rate (%)	Maturity date		Par value^	Value
U.S. Government Agency (continued)
30 Yr Pass Thru	3.500	11-01-48		5,649,610	$6,153,935
30 Yr Pass Thru	3.500	05-01-49		19,907,245	21,136,084
30 Yr Pass Thru	3.500	06-01-49		13,819,450	14,711,609
30 Yr Pass Thru	3.500	12-01-49		7,294,216	7,746,882
30 Yr Pass Thru	3.500	12-01-49		5,886,008	6,232,890
30 Yr Pass Thru	4.000	11-01-43		241,448	265,242
30 Yr Pass Thru	4.000	02-01-44		101,680	111,795
30 Yr Pass Thru	4.000	07-01-45		3,579,169	3,956,494
30 Yr Pass Thru	4.000	03-01-48		1,971,762	2,112,281
30 Yr Pass Thru	4.000	08-01-48		1,155,960	1,248,519
30 Yr Pass Thru	4.000	12-01-48		3,606,203	3,853,257
30 Yr Pass Thru	4.500	02-01-41		520,484	582,375
30 Yr Pass Thru	4.500	03-01-47		1,973,238	2,159,780
Federal National Mortgage Association
15 Yr Pass Thru	3.000	07-01-27		208,377	220,038
15 Yr Pass Thru	3.500	06-01-34		820,897	877,824
15 Yr Pass Thru	4.000	12-01-24		221,050	234,888
30 Yr Pass Thru	3.000	12-01-42		1,055,370	1,145,178
30 Yr Pass Thru	3.000	04-01-43		3,587,202	3,842,015
30 Yr Pass Thru	3.000	12-01-45		3,738,253	3,964,077
30 Yr Pass Thru	3.000	08-01-46		1,823,488	1,946,179
30 Yr Pass Thru	3.000	10-01-46		2,152,389	2,302,322
30 Yr Pass Thru	3.000	01-01-47		2,177,272	2,322,407
30 Yr Pass Thru	3.000	02-01-47		1,159,677	1,250,388
30 Yr Pass Thru	3.000	10-01-47		2,551,928	2,722,037
30 Yr Pass Thru	3.000	12-01-47		10,852,031	11,460,113
30 Yr Pass Thru	3.000	11-01-48		2,791,397	2,956,533
30 Yr Pass Thru	3.000	11-01-48		14,046,699	14,781,116
30 Yr Pass Thru	3.000	12-01-48		1,727,250	1,824,035
30 Yr Pass Thru	3.000	07-01-49		16,448,818	17,298,548
30 Yr Pass Thru	3.000	09-01-49		12,640,259	13,307,462
30 Yr Pass Thru	3.000	09-01-49		6,907,233	7,271,824
30 Yr Pass Thru	3.000	09-01-49		2,904,585	3,114,540
30 Yr Pass Thru	3.000	10-01-49		3,147,473	3,314,248
30 Yr Pass Thru	3.000	10-01-49		4,947,285	5,266,244
30 Yr Pass Thru	3.000	11-01-49		24,229,565	25,602,387
30 Yr Pass Thru	3.000	11-01-49		2,779,978	2,984,401
30 Yr Pass Thru	3.000	11-01-49		2,963,968	3,131,903
30 Yr Pass Thru	3.500	01-01-42		1,276,833	1,392,780
30 Yr Pass Thru	3.500	06-01-42		1,835,627	2,012,642
30 Yr Pass Thru	3.500	07-01-42		2,953,476	3,244,750
30 Yr Pass Thru	3.500	01-01-43		539,460	587,436
30 Yr Pass Thru	3.500	04-01-43		456,662	503,696
30 Yr Pass Thru	3.500	06-01-43		1,905,195	2,087,728

	Rate (%)	Maturity date		Par value^	Value
U.S. Government Agency (continued)
30 Yr Pass Thru	3.500	07-01-43		309,683	$339,644
30 Yr Pass Thru	3.500	03-01-44		2,899,443	3,179,952
30 Yr Pass Thru	3.500	10-01-44		3,880,222	4,249,554
30 Yr Pass Thru	3.500	04-01-45		784,361	850,930
30 Yr Pass Thru	3.500	04-01-45		1,917,155	2,079,866
30 Yr Pass Thru	3.500	07-01-46		3,057,836	3,257,156
30 Yr Pass Thru	3.500	07-01-46		1,242,936	1,341,434
30 Yr Pass Thru	3.500	07-01-47		4,248,032	4,633,788
30 Yr Pass Thru	3.500	11-01-47		3,995,508	4,319,627
30 Yr Pass Thru	3.500	11-01-47		1,825,151	1,937,276
30 Yr Pass Thru	3.500	12-01-47		2,528,253	2,722,285
30 Yr Pass Thru	3.500	01-01-48		5,217,277	5,617,680
30 Yr Pass Thru	3.500	03-01-48		2,071,259	2,267,761
30 Yr Pass Thru	3.500	06-01-48		875,015	945,450
30 Yr Pass Thru	3.500	07-01-49		7,341,686	7,789,727
30 Yr Pass Thru	3.500	09-01-49		16,573,245	17,589,320
30 Yr Pass Thru	3.500	10-01-49		8,029,174	8,527,450
30 Yr Pass Thru	3.500	12-01-49		10,224,302	10,858,803
30 Yr Pass Thru	3.500	01-01-50		14,946,854	15,770,502
30 Yr Pass Thru	3.500	03-01-50		11,174,715	11,881,294
30 Yr Pass Thru	4.000	09-01-40		597,623	656,903
30 Yr Pass Thru	4.000	01-01-41		478,708	526,192
30 Yr Pass Thru	4.000	09-01-41		803,723	882,945
30 Yr Pass Thru	4.000	09-01-41		2,382,941	2,642,396
30 Yr Pass Thru	4.000	10-01-41		30,916	34,098
30 Yr Pass Thru	4.000	11-01-41		1,224,588	1,344,528
30 Yr Pass Thru	4.000	01-01-42		329,920	363,883
30 Yr Pass Thru	4.000	01-01-42		460,056	505,115
30 Yr Pass Thru	4.000	03-01-42		2,333,781	2,559,441
30 Yr Pass Thru	4.000	05-01-43		2,382,373	2,609,754
30 Yr Pass Thru	4.000	09-01-43		1,712,934	1,925,668
30 Yr Pass Thru	4.000	10-01-43		1,424,145	1,574,311
30 Yr Pass Thru	4.000	12-01-43		2,120,120	2,330,421
30 Yr Pass Thru	4.000	01-01-44		353,208	392,769
30 Yr Pass Thru	4.000	02-01-46		1,441,715	1,565,350
30 Yr Pass Thru	4.000	06-01-46		1,015,323	1,099,220
30 Yr Pass Thru	4.000	07-01-46		2,558,327	2,769,722
30 Yr Pass Thru	4.000	03-01-47		4,115,822	4,461,058
30 Yr Pass Thru	4.000	05-01-47		2,643,701	2,862,977
30 Yr Pass Thru	4.000	12-01-47		1,072,457	1,168,112
30 Yr Pass Thru	4.000	04-01-48		3,836,464	4,175,052
30 Yr Pass Thru	4.000	06-01-48		3,173,740	3,400,283
30 Yr Pass Thru	4.000	10-01-48		2,136,691	2,321,259
30 Yr Pass Thru	4.000	09-01-49		9,879,490	10,600,129

	Rate (%)	Maturity date		Par value^	Value
U.S. Government Agency (continued)
30 Yr Pass Thru	4.500	08-01-40		1,013,649	$1,134,443
30 Yr Pass Thru	4.500	08-01-40		483,194	540,624
30 Yr Pass Thru	4.500	12-01-40		330,784	369,996
30 Yr Pass Thru	4.500	05-01-41		397,506	444,752
30 Yr Pass Thru	4.500	05-01-41		567,777	634,196
30 Yr Pass Thru	4.500	06-01-41		632,444	706,427
30 Yr Pass Thru	4.500	07-01-41		360,653	402,842
30 Yr Pass Thru	4.500	11-01-41		100,226	112,107
30 Yr Pass Thru	4.500	12-01-41		1,910,774	2,130,117
30 Yr Pass Thru	4.500	05-01-42		885,950	989,589
30 Yr Pass Thru	4.500	04-01-48		1,558,426	1,705,179
30 Yr Pass Thru	4.500	07-01-48		4,535,695	4,897,611
Foreign government obligations 0.4%					$9,113,230
(Cost $8,494,183)
Qatar 0.2%					4,414,694
State of Qatar
Bond (A)	3.375	03-14-24		2,246,000	2,381,016
Bond (A)	5.103	04-23-48		1,560,000	2,033,678
Saudi Arabia 0.2%					4,698,536
Kingdom of Saudi Arabia Bond (A)	4.375	04-16-29		4,130,000	4,698,536
Corporate bonds 41.8%					$867,984,387
(Cost $850,309,892)
Communication services 3.3%					68,756,821
Diversified telecommunication services 1.0%
AT&T, Inc.	2.300	06-01-27		1,833,000	1,854,047
AT&T, Inc.	3.400	05-15-25		4,171,000	4,497,300
AT&T, Inc.	3.800	02-15-27		1,887,000	2,061,743
Level 3 Financing, Inc. (A)	3.400	03-01-27		2,563,000	2,591,834
Verizon Communications, Inc.	3.000	03-22-27		532,000	579,411
Verizon Communications, Inc.	4.400	11-01-34		1,435,000	1,760,728
Verizon Communications, Inc.	4.862	08-21-46		5,174,000	6,941,660
Entertainment 0.1%
Activision Blizzard, Inc.	3.400	09-15-26		1,126,000	1,255,732
Media 1.8%
Charter Communications Operating LLC	4.200	03-15-28		3,707,000	4,126,999
Charter Communications Operating LLC	4.800	03-01-50		3,511,000	3,909,607
Charter Communications Operating LLC	5.750	04-01-48		4,461,000	5,493,288
Charter Communications Operating LLC	6.484	10-23-45		3,910,000	5,050,231
Comcast Corp.	3.000	02-01-24		2,655,000	2,859,879
Comcast Corp.	3.100	04-01-25		1,820,000	1,989,101
Comcast Corp.	3.999	11-01-49		552,000	655,151

	Rate (%)	Maturity date		Par value^	Value
Communication services (continued)
Media (continued)
Comcast Corp.	4.049	11-01-52		2,962,000	$3,537,680
Comcast Corp.	4.150	10-15-28		6,517,000	7,709,427
ViacomCBS, Inc.	4.750	05-15-25		2,932,000	3,225,768
Wireless telecommunication services 0.4%
CC Holdings GS V LLC	3.849	04-15-23		1,590,000	1,703,478
Oztel Holdings SPC, Ltd. (A)	6.625	04-24-28		740,000	670,106
T-Mobile USA, Inc. (A)	3.875	04-15-30		3,665,000	3,973,153
T-Mobile USA, Inc. (A)	4.500	04-15-50		2,055,000	2,310,498
Consumer discretionary 3.6%					74,803,437
Automobiles 1.3%
BMW US Capital LLC (A)(B)	2.950	04-14-22		904,000	920,997
Daimler Finance North America LLC (A)	2.700	06-14-24		1,005,000	1,006,232
Daimler Finance North America LLC (A)	3.500	08-03-25		1,005,000	1,036,284
Ford Motor Credit Company LLC	4.134	08-04-25		5,895,000	5,513,063
Ford Motor Credit Company LLC	5.113	05-03-29		3,341,000	3,119,826
Ford Motor Credit Company LLC	5.875	08-02-21		3,696,000	3,705,240
General Motors Financial Company, Inc.	4.000	01-15-25		5,255,000	5,296,159
General Motors Financial Company, Inc.	4.300	07-13-25		2,964,000	3,026,361
Nissan Motor Acceptance Corp. (A)	3.450	03-15-23		1,325,000	1,220,407
Volkswagen Group of America Finance LLC (A)	2.900	05-13-22		3,109,000	3,163,588
Hotels, restaurants and leisure 0.3%
Choice Hotels International, Inc.	3.700	12-01-29		2,479,000	2,297,612
Resorts World Las Vegas LLC (A)	4.625	04-16-29		1,565,000	1,475,268
Starbucks Corp.	2.250	03-12-30		2,637,000	2,625,356
Internet and direct marketing retail 1.2%
Amazon.com, Inc.	3.150	08-22-27		4,805,000	5,458,383
Amazon.com, Inc.	4.050	08-22-47		3,193,000	4,197,550
Expedia Group, Inc.	3.250	02-15-30		2,496,000	2,231,844
Expedia Group, Inc.	3.800	02-15-28		3,508,000	3,238,028
Expedia Group, Inc.	5.000	02-15-26		3,711,000	3,794,785
Prosus NV (A)	4.850	07-06-27		775,000	858,820
Prosus NV (A)	5.500	07-21-25		1,690,000	1,889,518
QVC, Inc.	4.375	03-15-23		2,440,000	2,379,000
QVC, Inc.	5.125	07-02-22		735,000	734,081
QVC, Inc.	5.450	08-15-34		700,000	589,750
Multiline retail 0.4%
Dollar Tree, Inc.	4.200	05-15-28		4,998,000	5,649,792
Target Corp.	2.250	04-15-25		1,637,000	1,744,782
Specialty retail 0.4%
AutoNation, Inc.	4.750	06-01-30		1,394,000	1,451,313

	Rate (%)	Maturity date		Par value^	Value
Consumer discretionary (continued)
Specialty retail (continued)
The TJX Companies, Inc.	3.500	04-15-25		2,555,000	$2,854,566
The TJX Companies, Inc.	3.875	04-15-30		2,831,000	3,324,832
Consumer staples 1.0%					21,313,408
Beverages 0.5%
Anheuser-Busch InBev Worldwide, Inc.	4.600	04-15-48		2,553,000	2,838,399
Coca-Cola Femsa SAB de CV	2.750	01-22-30		1,571,000	1,595,743
Constellation Brands, Inc.	2.875	05-01-30		900,000	932,668
Keurig Dr Pepper, Inc.	3.200	05-01-30		1,460,000	1,584,634
The Coca-Cola Company	4.200	03-25-50		2,126,000	2,747,372
Food and staples retailing 0.2%
Alimentation Couche-Tard, Inc. (A)	2.700	07-26-22		1,343,000	1,371,756
Dollar General Corp.	3.500	04-03-30		1,682,000	1,880,984
The Kroger Company (B)	2.200	05-01-30		1,463,000	1,498,471
Food products 0.2%
Cargill, Inc. (A)	1.375	07-23-23		1,171,000	1,190,909
Cargill, Inc. (A)	2.125	04-23-30		1,167,000	1,185,249
Kraft Heinz Foods Company (A)	4.875	02-15-25		1,495,000	1,531,402
Household products 0.1%
The Clorox Company	1.800	05-15-30		2,931,000	2,955,821
Energy 2.4%					49,311,601
Oil, gas and consumable fuels 2.4%
Aker BP ASA (A)	3.000	01-15-25		1,157,000	1,117,380
Cimarex Energy Company	4.375	06-01-24		1,125,000	1,139,976
Colorado Interstate Gas Company LLC (A)	4.150	08-15-26		1,020,000	1,098,496
Enbridge, Inc. (5.500% to 7-15-27, then 3 month LIBOR + 3.418%)	5.500	07-15-77		65,000	59,918
Enbridge, Inc. (6.250% to 3-1-28, then 3 month LIBOR + 3.641%)	6.250	03-01-78		2,006,000	1,925,760
Energy Transfer Operating LP	4.200	04-15-27		563,000	576,173
Energy Transfer Operating LP	4.250	03-15-23		2,877,000	2,983,437
Energy Transfer Operating LP	5.150	03-15-45		2,404,000	2,311,668
Energy Transfer Operating LP	5.875	01-15-24		1,612,000	1,759,946
Enterprise Products Operating LLC (5.250% to 8-16-27, then 3 month LIBOR + 3.033%)	5.250	08-16-77		4,405,000	3,968,949
Husky Energy, Inc.	3.950	04-15-22		1,010,000	1,017,476
Kinder Morgan Energy Partners LP	7.750	03-15-32		1,790,000	2,415,390
MPLX LP	4.000	03-15-28		1,747,000	1,797,875
MPLX LP	4.250	12-01-27		958,000	1,003,487
MPLX LP	5.250	01-15-25		992,000	1,028,475
ONEOK Partners LP	4.900	03-15-25		663,000	694,400
Phillips 66	3.700	04-06-23		669,000	714,833

	Rate (%)	Maturity date		Par value^	Value
Energy (continued)
Oil, gas and consumable fuels (continued)
Sabine Pass Liquefaction LLC	4.200	03-15-28		1,279,000	$1,360,844
Sabine Pass Liquefaction LLC	5.000	03-15-27		1,592,000	1,766,660
Sabine Pass Liquefaction LLC	5.875	06-30-26		3,543,000	4,071,289
Saudi Arabian Oil Company (A)	2.875	04-16-24		4,104,000	4,250,505
Sunoco Logistics Partners Operations LP	3.900	07-15-26		2,310,000	2,328,647
Sunoco Logistics Partners Operations LP	5.400	10-01-47		1,406,000	1,396,621
The Williams Companies, Inc.	3.750	06-15-27		2,510,000	2,669,628
The Williams Companies, Inc.	4.550	06-24-24		4,249,000	4,606,279
TransCanada PipeLines, Ltd.	4.250	05-15-28		1,100,000	1,247,489
Financials 13.5%					279,557,561
Banks 9.2%
Australia & New Zealand Banking Group, Ltd. (6.750% to 6-15-26, then 5 Year ICE Swap Rate + 5.168%) (A)(C)	6.750	06-15-26		1,020,000	1,129,018
Banco Santander SA	4.379	04-12-28		1,525,000	1,667,257
Bank of America Corp. (2.592% to 4-29-30, then SOFR + 2.150%)	2.592	04-29-31		3,361,000	3,454,578
Bank of America Corp. (3.864% to 7-23-23, then 3 month LIBOR + 0.940%)	3.864	07-23-24		4,975,000	5,386,056
Bank of America Corp.	3.950	04-21-25		4,185,000	4,572,525
Bank of America Corp.	4.200	08-26-24		1,118,000	1,232,959
Bank of America Corp.	4.450	03-03-26		4,038,000	4,547,522
Bank of America Corp. (6.300% to 3-10-26, then 3 month LIBOR + 4.553%) (C)	6.300	03-10-26		4,491,000	4,917,645
Bank of Montreal	1.850	05-01-25		2,880,000	2,952,662
Bank of Montreal	3.300	02-05-24		6,610,000	7,092,812
Barclays Bank PLC (A)	10.179	06-12-21		650,000	703,294
Barclays PLC	4.375	01-12-26		1,265,000	1,392,022
BPCE SA (A)	4.500	03-15-25		2,195,000	2,361,781
BPCE SA (A)	5.700	10-22-23		1,850,000	2,029,631
Citigroup, Inc.	3.200	10-21-26		3,959,000	4,236,189
Citigroup, Inc.	4.600	03-09-26		4,488,000	5,025,975
Citigroup, Inc.	5.500	09-13-25		905,000	1,058,569
Citizens Bank NA	2.250	04-28-25		2,366,000	2,414,102
Citizens Financial Group, Inc.	3.250	04-30-30		3,254,000	3,343,701
Credit Agricole SA (A)	3.250	01-14-30		3,928,000	4,071,274
Danske Bank A/S (A)	5.000	01-12-22		2,497,000	2,616,175
Discover Bank	2.450	09-12-24		2,465,000	2,469,354
Fifth Third Bancorp	1.625	05-05-23		888,000	904,184
HSBC Holdings PLC (3.950% to 5-18-23, then 3 month LIBOR + 0.987%)	3.950	05-18-24		4,280,000	4,570,614