UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811- 04651
John Hancock Strategic Series
(Exact name of registrant as specified in charter)
200 Berkeley Street, Boston, Massachusetts 02116 (Address of principal executive offices) (Zip code)
Salvatore Schiavone
Treasurer
200 Berkeley Street
Boston, Massachusetts 02116
(Name and address of agent for service) Registrant's telephone number, including area code: 617-663-4497
|
Date of fiscal year end: |
May 31 |
|
Date of reporting period: |
May 31, 2021 |
ITEM 1. REPORTS TO STOCKHOLDERS
The Registrant prepared two annual reports to shareholders for the period ended May 31, 2021. The first report applies to John Hancock Income Fund, the second report applies to three John Hancock Managed Account Shares Portfolios of the Registrant.
Annual report
John Hancock
Income Fund
Fixed income
May 31, 2021
A message to shareholders
Dear shareholder,
While stocks rebounded from
the multiple challenges faced in 2020 to post gains for the 12 months ended May 31, 2021, the results for bonds were much more mixed. Overall, bond markets saw a sharp increase in yields and a steeper yield curve
during the period. The generally positive news flow pressured U.S. Treasuries by raising the prospect of inflation and causing investors to question whether the U.S. Federal Reserve would need to begin hiking interest
rates sooner than expected. The credit-oriented segments of the market—including investment-grade and high-yield corporate bonds—outperformed government issues. Both categories were helped by the improving
outlook for economic growth and corporate earnings, as well as investors’ elevated demand for yield.
In these uncertain times, your
financial professional can assist with positioning your portfolio so that it’s sufficiently diversified to help 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
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.
John Hancock
Income Fund
Table of contents
| ANNUAL REPORT | JOHN HANCOCK INCOME FUND | 1 |
Your fund at a glance
INVESTMENT OBJECTIVE
The fund seeks a high level of
current income.
AVERAGE ANNUAL TOTAL RETURNS AS
OF 5/31/2021 (%)
The Bloomberg Barclays U.S.
Aggregate Bond Index is an unmanaged index of US dollar-denominated and non-convertible 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.
| 2 | JOHN HANCOCK INCOME FUND | ANNUAL REPORT |
PERFORMANCE HIGHLIGHTS OVER THE
LAST TWELVE MONTHS
Mixed results for
the U.S. bond market as the pandemic eased
Corporate bonds
benefited from an improving U.S. economy as the COVID-19 pandemic began to recede, while rising bond yields put downward pressure on U.S. Treasury securities.
The fund
outperformed its benchmark
The fund posted
a strong absolute return and outpaced the modest decline of its benchmark, the Bloomberg Barclays U.S. Aggregate Bond Index.
Sector allocation
added the most value
An emphasis on
corporate credit, along with limited interest-rate sensitivity, contributed the most to the fund’s outperformance of the benchmark.
PORTFOLIO COMPOSITION AS OF
5/31/2021 (% of net assets)
| ANNUAL REPORT | JOHN HANCOCK INCOME FUND | 3 |
QUALITY COMPOSITION AS OF
5/31/2021 (% of net assets)
Ratings are from Moody’s
Investors Service, Inc. If not available, we have used Standard & Poor’s Ratings Services. In the absence of ratings from these agencies, we have used Fitch Ratings, Inc. “Not rated” securities
are those with no ratings available from these agencies. All ratings are as of 5-31-21 and do not reflect subsequent downgrades or upgrades, if any.
Notes about risk
The fund is subject to various
risks as described in the fund's prospectus. 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, which may lead to less liquidity in certain instruments, industries, sectors or the markets generally, and may ultimately affect fund's performance. For
more information, please refer to the “Principal risks” section of the prospectus.
| 4 | JOHN HANCOCK INCOME FUND | ANNUAL REPORT |
Manager’s discussion of fund performance
Can you talk about the bond market
and its performance during the 12 months ended May 31, 2021?
U.S. bonds posted mixed results in
a period shaped by the COVID-19 pandemic. Lockdowns and shelter-in-place policies designed to slow the spread of the virus led to a severe U.S. economic downturn early in the period. The federal government responded
with unprecedented monetary and fiscal stimulus, which helped shore up the economy and stabilize financial markets. By the second half of the period, the approval and rollout of multiple coronavirus vaccines led to
declining COVID-19 death and infection rates and a partial return to normalcy.
Bond yields fell early in the
period in response to the economic downturn, but subsequently reversed course as the developing economic recovery led to concerns about higher inflation down the road. The overall rise in bond yields during the period
put downward pressure on U.S. Treasury bonds, reflecting their greater interest-rate sensitivity. However, improving economic expectations provided a lift to corporate bonds, particularly the high-yield segment.
How did the fund perform for the
period?
The fund outperformed its
benchmark, the Bloomberg Barclays U.S. Aggregate Bond Index. The most significant contributor to this outperformance was the fund’s exposure to corporate credit. A sizable position in high-yield corporate bonds
added the most value, along with a small position in convertible bonds. The fund’s
| ANNUAL REPORT | JOHN HANCOCK INCOME FUND | 5 |
limited exposure to U.S. Treasury bonds and
residential mortgage-backed securities was also beneficial to performance.
The fund’s duration
positioning was another positive contributor to relative performance. The fund had a considerably shorter duration (a measure of interest-rate sensitivity) than the benchmark, which muted the negative impact of rising
bond yields on fund performance. The fund also benefited from its foreign currency positioning as the U.S. dollar declined against most major currencies during the period.
Did you make any changes to the
portfolio during the period?
The changes we made were designed
to reduce interest-rate risk in the portfolio while increasing income and credit exposure. In the early stages of the pandemic, we increased the fund’s holdings of high-yield corporate bonds after they fell
sharply, and we continued to add more over the past year. We also took steps to shorten the fund’s duration, mostly through reducing the fund’s positions in the most interest-rate-sensitive sectors of the
bond market, including U.S. Treasury securities and investment-grade corporate bonds.
How was the portfolio positioned at
the end of the reporting period?
The fund’s positioning
reflects our view that higher inflation—driven by pent-up consumer demand, a robust economic recovery, and continued accommodative policy from the U.S. Federal Reserve—won't be as temporary as many
currently anticipate. Furthermore, the federal government has injected five times the amount of stimulus money into the U.S. economy during the pandemic than it did during the financial crisis in 2008/2009. While
being mindful of elevated valuations, we believe that the fund’s emphasis on higher income and corporate credit, along with limited interest-rate exposure, is the best positioning going forward.
MANAGED BY
Daniel S. Janis III
Thomas C. Goggins
Kisoo Park
Christopher M. Chapman, CFA
The views expressed in
this report are exclusively those of Daniel S. Janis III, 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.
| 6 | JOHN HANCOCK INCOME FUND | ANNUAL REPORT |
A look at performance
TOTAL RETURNS FOR THE PERIOD
ENDED MAY 31, 2021
|
Average annual total returns (%)
with maximum sales charge |
Cumulative total returns (%)
with maximum sales charge |
SEC 30-day
yield (%) subsidized |
SEC 30-day
yield (%) unsubsidized† |
|||||
| 1-year | 5-year | 10-year | 5-year | 10-year |
as of
5-31-21 |
as of
5-31-21 |
||
| Class A | 3.78 | 2.90 | 3.15 | 15.36 | 36.39 | 2.01 | 2.00 | |
| Class C | 6.41 | 3.02 | 2.86 | 16.04 | 32.57 | 1.40 | 1.39 | |
| Class I1 | 8.51 | 4.02 | 3.90 | 21.79 | 46.57 | 2.39 | 2.38 | |
| Class R21,2 | 8.07 | 3.65 | 3.53 | 19.61 | 41.54 | 2.03 | 2.02 | |
| Class R41 | 8.34 | 3.90 | 3.74 | 21.10 | 44.36 | 2.22 | 2.11 | |
| Class R51 | 8.57 | 4.11 | 3.96 | 22.32 | 47.43 | 2.43 | 2.42 | |
| Class R61,2 | 8.61 | 4.17 | 4.01 | 22.64 | 48.16 | 2.48 | 2.48 | |
| Index†† | -0.40 | 3.25 | 3.29 | 17.34 | 38.24 | — | — | |
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 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. 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, Class R5, 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 fee waivers and expense limitations in effect until September 30, 2022 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 C | Class I | Class R2 | Class R4 | Class R5 | Class R6 | |
| Gross (%) | 0.85 | 1.55 | 0.55 | 0.94 | 0.79 | 0.49 | 0.44 |
| Net (%) | 0.84 | 1.54 | 0.54 | 0.93 | 0.68 | 0.48 | 0.43 |
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.
† Unsubsidized yield reflects what the yield would have been without the effect of reimbursements and waivers.
†† Index is the Bloomberg Barclays U.S. Aggregate Bond Index.
See the following page for
footnotes.
| ANNUAL REPORT | JOHN HANCOCK INCOME FUND | 7 |
This chart and table show what
happened to a hypothetical $10,000 investment in John Hancock Income Fund for the share classes and periods indicated, assuming all distributions were reinvested. For comparison, we’ve shown the same investment
in the Bloomberg Barclays U.S. Aggregate Bond Index.
| Start date |
With maximum
sales charge ($) |
Without
sales charge ($) |
Index ($) | |
| Class C3 | 5-31-11 | 13,257 | 13,257 | 13,824 |
| Class I1 | 5-31-11 | 14,657 | 14,657 | 13,824 |
| Class R21,2 | 5-31-11 | 14,154 | 14,154 | 13,824 |
| Class R41 | 5-31-11 | 14,436 | 14,436 | 13,824 |
| Class R51 | 5-31-11 | 14,743 | 14,743 | 13,824 |
| Class R61,2 | 5-31-11 | 14,816 | 14,816 | 13,824 |
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 US dollar-denominated and non-convertible 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 | For certain types of investors, as described in the fund's prospectus. |
| 2 | Class R6 and Class R2 shares were first offered on 9-1-11 and 3-1-12, 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. |
| 3 | The contingent deferred sales charge is not applicable. |
| 8 | JOHN HANCOCK INCOME FUND | ANNUAL REPORT |
Your expenses
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, 2020, with the same investment held until May 31, 2021.
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, 2021, 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, 2020, with the same investment held until May 31, 2021. 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 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.
SHAREHOLDER EXPENSE EXAMPLE
CHART
|
Account
value on 12-1-2020 |
Ending
value on 5-31-2021 |
Expenses
paid during period ended 5-31-20211 |
Annualized
expense ratio |
||
| Class A | Actual expenses/actual returns | $1,000.00 | $1,014.90 | $4.02 | 0.80% |
| Hypothetical example | 1,000.00 | 1,020.90 | 4.03 | 0.80% | |
| Class C | Actual expenses/actual returns | 1,000.00 | 1,011.40 | 7.52 | 1.50% |
| Hypothetical example | 1,000.00 | 1,017.50 | 7.54 | 1.50% | |
| Class I | Actual expenses/actual returns | 1,000.00 | 1,014.90 | 2.51 | 0.50% |
| Hypothetical example | 1,000.00 | 1,022.40 | 2.52 | 0.50% | |
| Class R2 | Actual expenses/actual returns | 1,000.00 | 1,014.40 | 4.52 | 0.90% |
| Hypothetical example | 1,000.00 | 1,020.40 | 4.53 | 0.90% | |
| Class R4 | Actual expenses/actual returns | 1,000.00 | 1,015.70 | 3.27 | 0.65% |
| Hypothetical example | 1,000.00 | 1,021.70 | 3.28 | 0.65% | |
| Class R5 | Actual expenses/actual returns | 1,000.00 | 1,016.70 | 2.21 | 0.44% |
| Hypothetical example | 1,000.00 | 1,022.70 | 2.22 | 0.44% | |
| Class R6 | Actual expenses/actual returns | 1,000.00 | 1,015.40 | 2.01 | 0.40% |
| Hypothetical example | 1,000.00 | 1,022.90 | 2.02 | 0.40% |
| 1 | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). |
| 10 | JOHN HANCOCK INCOME FUND | ANNUAL REPORT |
Fund’s investments
AS OF
5-31-21
| Rate (%) | Maturity date | Par value^ | Value | ||
| U.S. Government and Agency obligations 6.0% | $128,505,616 | ||||
| (Cost $125,683,753) | |||||
| U.S. Government 6.0% | 128,505,616 | ||||
| U.S. Treasury | |||||
| Bond | 2.000 | 02-15-50 | 13,140,000 | 12,303,865 | |
| Bond | 2.750 | 11-15-42 | 6,190,000 | 6,748,793 | |
| Bond | 3.000 | 02-15-49 | 22,685,000 | 26,039,899 | |
| Bond | 4.375 | 02-15-38 | 14,475,000 | 19,414,028 | |
| Note | 0.250 | 10-31-25 | 3,000,000 | 2,944,219 | |
| Note | 0.375 | 11-30-25 | 6,155,000 | 6,067,003 | |
| Note | 1.125 | 02-28-22 | 6,215,000 | 6,265,011 | |
| Note | 2.000 | 11-15-26 | 15,250,000 | 16,119,131 | |
| Note | 2.375 | 02-29-24 | 15,685,000 | 16,591,789 | |
| Note | 2.625 | 02-15-29 | 5,790,000 | 6,320,825 | |
| Treasury Inflation Protected Security | 0.125 | 01-15-30 | 8,810,637 | 9,691,053 | |
| Foreign government obligations 20.9% | $446,931,079 | ||||
| (Cost $436,186,973) | |||||
| Australia 1.3% | 27,120,549 | ||||
| Commonwealth of Australia | 0.250 | 11-21-24 | AUD | 16,225,000 | 12,497,795 |
| Commonwealth of Australia | 0.500 | 09-21-26 | AUD | 3,560,000 | 2,701,206 |
| New South Wales Treasury Corp. | 1.000 | 02-08-24 | AUD | 15,155,000 | 11,921,548 |
| Austria 0.2% | 4,419,612 | ||||
| Republic of Austria (A) | 0.500 | 02-20-29 | EUR | 3,450,000 | 4,419,612 |
| Brazil 1.1% | 22,602,555 | ||||
| Federative Republic of Brazil | 10.000 | 01-01-23 | BRL | 34,285,000 | 7,148,533 |
| Federative Republic of Brazil | 10.000 | 01-01-25 | BRL | 59,155,000 | 12,527,581 |
| Federative Republic of Brazil | 10.000 | 01-01-27 | BRL | 13,815,000 | 2,926,441 |
| Canada 4.3% | 90,810,163 | ||||
| Canada Housing Trust No. 1 (A) | 1.950 | 12-15-25 | CAD | 4,850,000 | 4,172,995 |
| Export Development Canada | 2.400 | 06-07-21 | AUD | 3,560,000 | 2,745,442 |
| Government of Canada | 0.750 | 05-19-26 | 4,115,000 | 4,096,721 | |
| Government of Canada | 2.250 | 03-01-24 | CAD | 23,115,000 | 20,070,949 |
| Province of Alberta | 3.400 | 12-01-23 | CAD | 9,000,000 | 7,966,905 |
| Province of British Columbia | 2.850 | 06-18-25 | CAD | 3,408,000 | 3,031,499 |
| Province of Ontario | 1.350 | 12-02-30 | CAD | 37,050,000 | 28,715,935 |
| Province of Ontario | 2.900 | 06-02-28 | CAD | 4,350,000 | 3,891,216 |
| Province of Ontario | 3.450 | 06-02-45 | CAD | 3,895,000 | 3,608,981 |
| Province of Quebec | 0.200 | 04-07-25 | EUR | 3,630,000 | 4,517,481 |
| Province of Quebec | 1.500 | 12-15-23 | GBP | 2,037,000 | 2,975,191 |
| Province of Quebec | 3.750 | 09-01-24 | CAD | 5,530,000 | 5,016,848 |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK INCOME FUND | 11 |
| Rate (%) | Maturity date | Par value^ | Value | ||
| China 0.7% | $15,766,950 | ||||
| People's Republic of China | 1.990 | 04-09-25 | CNY | 34,810,000 | 5,284,184 |
| People's Republic of China | 2.880 | 11-05-23 | CNY | 66,520,000 | 10,482,766 |
| Colombia 0.9% | 18,867,340 | ||||
| Republic of Colombia | 3.250 | 04-22-32 | 4,315,000 | 4,163,544 | |
| Republic of Colombia | 6.250 | 11-26-25 | COP | 17,345,000,000 | 4,817,795 |
| Republic of Colombia | 7.500 | 08-26-26 | COP | 17,735,000,000 | 5,125,516 |
| Republic of Colombia | 10.000 | 07-24-24 | COP | 15,303,500,000 | 4,760,485 |
| Finland 0.2% | 4,084,208 | ||||
| Republic of Finland (A) | 0.500 | 09-15-28 | EUR | 3,180,000 | 4,084,208 |
| India 0.1% | 1,024,097 | ||||
| Republic of India | 7.270 | 04-08-26 | INR | 69,990,000 | 1,024,097 |
| Indonesia 2.6% | 56,521,535 | ||||
| Republic of Indonesia | 1.100 | 03-12-33 | EUR | 1,191,000 | 1,415,303 |
| Republic of Indonesia (A) | 2.150 | 07-18-24 | EUR | 3,335,000 | 4,305,788 |
| Republic of Indonesia | 3.850 | 10-15-30 | 1,650,000 | 1,832,705 | |
| Republic of Indonesia (A) | 5.875 | 01-15-24 | 1,450,000 | 1,642,164 | |
| Republic of Indonesia | 6.125 | 05-15-28 | IDR | 83,348,000,000 | 5,817,527 |
| Republic of Indonesia | 6.500 | 06-15-25 | IDR | 182,145,000,000 | 13,249,897 |
| Republic of Indonesia | 6.625 | 05-15-33 | IDR | 30,647,000,000 | 2,135,353 |
| Republic of Indonesia | 7.000 | 09-15-30 | IDR | 100,451,000,000 | 7,276,987 |
| Republic of Indonesia | 7.500 | 06-15-35 | IDR | 19,373,000,000 | 1,403,916 |
| Republic of Indonesia | 7.500 | 05-15-38 | IDR | 15,237,000,000 | 1,100,244 |
| Republic of Indonesia | 8.125 | 05-15-24 | IDR | 33,251,000,000 | 2,526,574 |
| Republic of Indonesia | 8.250 | 05-15-29 | IDR | 5,604,000,000 | 437,101 |
| Republic of Indonesia | 8.375 | 03-15-24 | IDR | 44,433,000,000 | 3,383,292 |
| Republic of Indonesia | 8.375 | 09-15-26 | IDR | 49,203,000,000 | 3,870,284 |
| Republic of Indonesia | 8.750 | 05-15-31 | IDR | 48,811,000,000 | 3,942,112 |
| Republic of Indonesia | 9.000 | 03-15-29 | IDR | 26,967,000,000 | 2,182,288 |
| Ireland 0.8% | 16,596,778 | ||||
| Republic of Ireland | 3.400 | 03-18-24 | EUR | 10,463,000 | 14,170,999 |
| Republic of Ireland | 3.900 | 03-20-23 | EUR | 1,840,000 | 2,425,779 |
| Israel 0.2% | 4,601,615 | ||||
| State of Israel | 2.500 | 01-15-30 | 1,985,000 | 2,059,862 | |
| State of Israel | 2.750 | 07-03-30 | 2,405,000 | 2,541,753 | |
| Italy 0.5% | 11,072,070 | ||||
| Republic of Italy | 1.250 | 02-17-26 | 3,387,000 | 3,342,856 | |
| Republic of Italy (A) | 1.850 | 07-01-25 | EUR | 5,900,000 | 7,729,214 |
| Japan 0.8% | 17,813,110 | ||||
| Government of Japan | 0.100 | 12-20-23 | JPY | 1,945,000,000 | 17,813,110 |
| 12 | JOHN HANCOCK INCOME FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
| Rate (%) | Maturity date | Par value^ | Value | ||
| Malaysia 1.0% | $22,157,643 | ||||
| Government of Malaysia | 3.733 | 06-15-28 | MYR | 11,880,000 | 3,005,278 |
| Government of Malaysia | 3.828 | 07-05-34 | MYR | 7,300,000 | 1,763,844 |
| Government of Malaysia | 3.844 | 04-15-33 | MYR | 14,961,000 | 3,659,763 |
| Government of Malaysia | 3.882 | 03-14-25 | MYR | 9,635,000 | 2,448,132 |
| Government of Malaysia | 3.899 | 11-16-27 | MYR | 16,709,000 | 4,288,718 |
| Government of Malaysia | 4.059 | 09-30-24 | MYR | 15,500,000 | 3,949,916 |
| Government of Malaysia | 4.160 | 07-15-21 | MYR | 12,538,000 | 3,041,992 |
| Mexico 0.9% | 18,030,468 | ||||
| Government of Mexico | 7.500 | 06-03-27 | MXN | 202,360,000 | 10,749,727 |
| Government of Mexico | 7.750 | 05-29-31 | MXN | 134,460,000 | 7,280,741 |
| New Zealand 0.5% | 9,634,723 | ||||
| Dominion of New Zealand | 5.500 | 04-15-23 | NZD | 12,130,000 | 9,634,723 |
| Norway 0.9% | 19,513,477 | ||||
| Kingdom of Norway (A) | 1.375 | 08-19-30 | NOK | 31,485,000 | 3,736,832 |
| Kingdom of Norway (A) | 2.000 | 05-24-23 | NOK | 128,245,000 | 15,776,645 |
| Philippines 0.6% | 11,843,719 | ||||
| Republic of the Philippines | 0.875 | 05-17-27 | EUR | 5,500,000 | 6,807,790 |
| Republic of the Philippines | 6.250 | 01-14-36 | PHP | 202,000,000 | 5,035,929 |
| Portugal 0.4% | 8,894,495 | ||||
| Republic of Portugal (A) | 0.700 | 10-15-27 | EUR | 3,290,000 | 4,205,396 |
| Republic of Portugal (A) | 5.125 | 10-15-24 | 4,110,000 | 4,689,099 | |
| Qatar 0.3% | 7,252,493 | ||||
| State of Qatar (A) | 4.000 | 03-14-29 | 3,245,000 | 3,732,023 | |
| State of Qatar (A) | 4.817 | 03-14-49 | 2,795,000 | 3,520,470 | |
| Singapore 1.0% | 21,905,433 | ||||
| Republic of Singapore | 2.375 | 06-01-25 | SGD | 21,100,000 | 17,018,624 |
| Republic of Singapore | 3.375 | 09-01-33 | SGD | 5,470,000 | 4,886,809 |
| Spain 0.4% | 9,094,123 | ||||
| Kingdom of Spain (A) | 0.250 | 07-30-24 | EUR | 3,615,000 | 4,500,768 |
| Kingdom of Spain (A) | 0.800 | 07-30-27 | EUR | 3,585,000 | 4,593,355 |
| Sweden 0.3% | 7,052,544 | ||||
| Kingdom of Sweden (A) | 0.125 | 04-24-23 | EUR | 5,710,000 | 7,052,544 |
| United Arab Emirates 0.4% | 8,845,748 | ||||
| Government of Abu Dhabi (A) | 1.700 | 03-02-31 | 3,980,000 | 3,825,775 | |
| Government of Abu Dhabi (A) | 3.125 | 04-16-30 | 2,940,000 | 3,195,780 | |
| Government of Abu Dhabi (A) | 3.875 | 04-16-50 | 1,625,000 | 1,824,193 |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK INCOME FUND | 13 |
| Rate (%) | Maturity date | Par value^ | Value | ||
| United Kingdom 0.5% | $11,405,631 | ||||
| Government of United Kingdom | 0.500 | 07-22-22 | GBP | 2,525,000 | 3,602,306 |
| Government of United Kingdom | 3.750 | 09-07-21 | GBP | 5,445,000 | 7,803,325 |
| Corporate bonds 59.8% | $1,281,053,417 | ||||
| (Cost $1,248,098,582) | |||||
| Communication services 10.0% | 214,290,741 | ||||
| Diversified telecommunication services 0.5% | |||||
| Cellnex Telecom SA | 1.875 | 06-26-29 | EUR | 1,400,000 | 1,723,590 |
| GCI LLC (A) | 4.750 | 10-15-28 | 5,445,000 | 5,553,900 | |
| Kenbourne Invest SA (A) | 4.700 | 01-22-28 | 1,630,000 | 1,642,225 | |
| Level 3 Financing, Inc. (A) | 4.625 | 09-15-27 | 740,000 | 760,102 | |
| Radiate Holdco LLC (A) | 6.500 | 09-15-28 | 1,525,000 | 1,566,938 | |
| Entertainment 0.7% | |||||
| Lions Gate Capital Holdings LLC (A) | 5.500 | 04-15-29 | 4,520,000 | 4,681,545 | |
| Netflix, Inc. (A) | 3.625 | 06-15-25 | 3,495,000 | 3,744,019 | |
| Netflix, Inc. | 4.375 | 11-15-26 | 2,985,000 | 3,366,453 | |
| Netflix, Inc. | 4.875 | 04-15-28 | 3,455,000 | 3,974,632 | |
| Interactive media and services 0.3% | |||||
| ANGI Group LLC (A) | 3.875 | 08-15-28 | 2,820,000 | 2,770,650 | |
| Match Group Holdings II LLC (A) | 4.125 | 08-01-30 | 2,690,000 | 2,675,609 | |
| Media 5.8% | |||||
| Altice Financing SA (A) | 5.000 | 01-15-28 | 4,640,000 | 4,604,597 | |
| Altice France SA (A) | 7.375 | 05-01-26 | 908,000 | 944,247 | |
| Cable One, Inc. (A) | 4.000 | 11-15-30 | 1,490,000 | 1,471,375 | |
| CCO Holdings LLC (A) | 4.250 | 02-01-31 | 755,000 | 753,490 | |
| CCO Holdings LLC (A) | 4.500 | 08-15-30 | 4,915,000 | 5,008,532 | |
| CCO Holdings LLC (A) | 4.500 | 06-01-33 | 2,340,000 | 2,334,829 | |
| CCO Holdings LLC (A) | 4.750 | 03-01-30 | 6,615,000 | 6,860,499 | |
| CCO Holdings LLC (A) | 5.125 | 05-01-27 | 7,910,000 | 8,265,950 | |
| Charter Communications Operating LLC | 2.800 | 04-01-31 | 2,985,000 | 2,979,031 | |
| Charter Communications Operating LLC | 5.125 | 07-01-49 | 9,195,000 | 10,475,478 | |
| Charter Communications Operating LLC | 5.750 | 04-01-48 | 5,180,000 | 6,330,087 | |
| Charter Communications Operating LLC | 6.484 | 10-23-45 | 5,105,000 | 6,717,622 | |
| CSC Holdings LLC (A) | 3.375 | 02-15-31 | 11,935,000 | 11,129,388 | |
| CSC Holdings LLC (A) | 5.750 | 01-15-30 | 8,171,000 | 8,528,890 | |
| CSC Holdings LLC (A) | 6.500 | 02-01-29 | 320,000 | 350,067 | |
| CSC Holdings LLC (A) | 7.500 | 04-01-28 | 3,658,000 | 4,005,510 | |
| DISH DBS Corp. | 5.875 | 07-15-22 | 5,975,000 | 6,214,000 | |
| LCPR Senior Secured Financing DAC (A) | 5.125 | 07-15-29 | 3,535,000 | 3,627,193 | |
| 14 | JOHN HANCOCK INCOME FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK INCOME FUND | 15 |
| 16 | JOHN HANCOCK INCOME FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK INCOME FUND | 17 |
| 18 | JOHN HANCOCK INCOME FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
| Rate (%) | Maturity date | Par value^ | Value | ||
| Financials (continued) | |||||
| Banks (continued) | |||||
| BNP Paribas SA (4.625% to 2-25-31, then 5 Year CMT + 3.340%) (A)(B)(C) | 4.625 | 02-25-31 | 6,570,000 | $6,701,400 | |
| Credit Agricole SA (6.875% to 9-23-24, then 5 Year U.S. Swap Rate + 4.319%) (A)(C) | 6.875 | 09-23-24 | 754,000 | 842,128 | |
| Credit Agricole SA (7.875% to 1-23-24, then 5 Year U.S. Swap Rate + 4.898%) (A)(C) | 7.875 | 01-23-24 | 3,440,000 | 3,882,900 | |
| European Investment Bank (SONIA + 0.350%) (D) | 0.399 | 06-29-23 | GBP | 2,080,000 | 2,966,828 |
| European Investment Bank | 1.500 | 05-12-22 | NOK | 36,770,000 | 4,441,113 |
| First Horizon Bank | 5.750 | 05-01-30 | 3,049,000 | 3,730,152 | |
| ING Groep NV (5.750% to 11-16-26, then 5 Year CMT + 4.342%) (C) | 5.750 | 11-16-26 | 3,751,000 | 4,128,426 | |
| International Bank for Reconstruction & Development | 0.750 | 12-07-21 | GBP | 1,925,000 | 2,740,141 |
| International Bank for Reconstruction & Development | 1.900 | 01-16-25 | CAD | 5,120,000 | 4,389,455 |
| International Bank for Reconstruction & Development | 2.500 | 01-24-24 | NZD | 3,951,000 | 2,983,308 |
| International Bank for Reconstruction & Development | 4.625 | 10-06-21 | NZD | 2,650,000 | 1,947,935 |
| International Bank for Reconstruction & Development | 6.750 | 02-04-24 | BRL | 3,200,000 | 618,326 |
| Intesa Sanpaolo SpA (A) | 4.198 | 06-01-32 | 3,444,000 | 3,487,534 | |
| Intesa Sanpaolo SpA (7.700% to 9-17-25, then 5 Year U.S. Swap Rate + 5.462%) (A)(C) | 7.700 | 09-17-25 | 953,000 | 1,086,420 | |
| JPMorgan Chase & Co. | 2.750 | 08-24-22 | EUR | 2,195,000 | 2,780,032 |
| KfW, Zero Coupon | 0.000 | 09-15-23 | EUR | 1,675,000 | 2,069,701 |
| KfW | 0.375 | 03-15-23 | EUR | 2,525,000 | 3,133,796 |
| KfW | 1.250 | 08-28-23 | NOK | 21,200,000 | 2,559,656 |
| Lloyds Bank PLC (SONIA + 0.430%) (D) | 0.479 | 09-13-21 | GBP | 3,855,000 | 5,476,700 |
| Lloyds Banking Group PLC (7.500% to 9-27-25, then 5 Year U.S. Swap Rate + 4.496%) (C) | 7.500 | 09-27-25 | 4,117,000 | 4,767,980 | |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK INCOME FUND | 19 |
| Rate (%) | Maturity date | Par value^ | Value | ||
| Financials (continued) | |||||
| Banks (continued) | |||||
| NatWest Group PLC (6.000% to 12-29-25, then 5 Year CMT + 5.625%) (C) | 6.000 | 12-29-25 | 3,855,000 | $4,277,238 | |
| Nordea Eiendomskreditt AS (3 month NIBOR + 0.300%) (D) | 0.720 | 06-21-23 | NOK | 28,000,000 | 3,364,955 |
| Nordea Eiendomskreditt AS (3 month NIBOR + 0.340%) (D) | 0.760 | 06-19-24 | NOK | 31,000,000 | 3,733,554 |
| Nordic Investment Bank | 1.500 | 01-24-22 | NOK | 19,000,000 | 2,288,493 |
| Pacific Western Bank (3.250% to 5-1-26, then SOFR + 2.520%) | 3.250 | 05-01-31 | 1,465,000 | 1,475,652 | |
| QNB Finance, Ltd. | 3.500 | 03-28-24 | 1,285,000 | 1,371,645 | |
| Societe Generale SA (4.750% to 5-26-26, then 5 Year CMT + 3.931%) (A)(C) | 4.750 | 05-26-26 | 1,655,000 | 1,694,389 | |
| Societe Generale SA (6.750% to 4-6-28, then 5 Year U.S. Swap Rate + 3.929%) (A)(C) | 6.750 | 04-06-28 | 1,865,000 | 2,079,941 | |
| Societe Generale SA (8.000% to 9-29-25, then 5 Year ICE Swap Rate + 5.873%) (A)(C) | 8.000 | 09-29-25 | 2,275,000 | 2,672,898 | |
| U.S. Bancorp | 0.850 | 06-07-24 | EUR | 9,600,000 | 12,026,426 |
| U.S. Bancorp | 1.375 | 07-22-30 | 2,090,000 | 1,969,366 | |
| UniCredit SpA (5.459% to 6-30-30, then 5 Year CMT + 4.750%) (A) | 5.459 | 06-30-35 | 4,305,000 | 4,655,531 | |
| UniCredit SpA (8.000% to 6-3-24, then 5 Year U.S. Swap Rate + 5.180%) (C) | 8.000 | 06-03-24 | 1,541,000 | 1,708,390 | |
| Wells Fargo & Company (3 month BBSW + 1.320%) (D) | 1.362 | 07-27-21 | AUD | 4,745,000 | 3,664,293 |
| Wells Fargo & Company | 3.250 | 04-27-22 | AUD | 5,040,000 | 3,985,291 |
| Capital markets 2.5% | |||||
| Credit Suisse Group AG (4.500% to 9-3-30, then 5 Year CMT + 3.554%) (A)(C) | 4.500 | 09-03-30 | 3,345,000 | 3,253,347 | |
| Credit Suisse Group AG (5.100% to 1-24-30, then 5 Year CMT + 3.293%) (A)(C) | 5.100 | 01-24-30 | 1,750,000 | 1,771,753 | |
| Credit Suisse Group AG (6.375% to 8-21-26, then 5 Year CMT + 4.822%) (A)(C) | 6.375 | 08-21-26 | 3,875,000 | 4,233,438 | |
| Deutsche Bank AG (6.000% to 10-30-25, then 5 Year CMT + 4.524%) (C) | 6.000 | 10-30-25 | 6,800,000 | 7,140,000 | |
| MSCI, Inc. (A) | 3.625 | 09-01-30 | 8,800,000 | 8,877,000 | |
| MSCI, Inc. (A) | 3.625 | 11-01-31 | 3,892,000 | 3,923,486 | |
| MSCI, Inc. (A) | 3.875 | 02-15-31 | 4,820,000 | 4,898,325 | |
| MSCI, Inc. (A) | 4.000 | 11-15-29 | 3,580,000 | 3,713,069 | |
| 20 | JOHN HANCOCK INCOME FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK INCOME FUND | 21 |
| 22 | JOHN HANCOCK INCOME FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK INCOME FUND | 23 |
| 24 | JOHN HANCOCK INCOME FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK INCOME FUND | 25 |
| Rate (%) | Maturity date | Par value^ | Value | ||
| Utilities 2.4% | $51,237,377 | ||||
| Electric utilities 1.6% | |||||
| EDP Finance BV | 0.375 | 09-16-26 | EUR | 545,000 | 670,124 |
| FirstEnergy Corp. | 4.400 | 07-15-27 | 4,060,000 | 4,426,401 | |
| FirstEnergy Corp. | 7.375 | 11-15-31 | 7,070,000 | 9,416,392 | |
| Israel Electric Corp., Ltd. (A) | 6.875 | 06-21-23 | 1,415,000 | 1,581,017 | |
| NRG Energy, Inc. (A) | 3.625 | 02-15-31 | 372,000 | 356,655 | |
| NRG Energy, Inc. (A) | 5.250 | 06-15-29 | 2,929,000 | 3,075,450 | |
| Perusahaan Perseroan Persero PT Perusahaan Listrik Negara (A) | 5.450 | 05-21-28 | 2,840,000 | 3,294,400 | |
| PG&E Corp. | 5.250 | 07-01-30 | 8,010,000 | 8,100,113 | |
| Vistra Operations Company LLC (A) | 5.000 | 07-31-27 | 3,623,000 | 3,699,989 | |
| Independent power and renewable electricity producers 0.6% | |||||
| Adani Green Energy UP, Ltd. (A) | 6.250 | 12-10-24 | 1,715,000 | 1,903,650 | |
| DPL, Inc. | 4.125 | 07-01-25 | 5,515,000 | 5,894,156 | |
| Greenko Dutch BV (A) | 3.850 | 03-29-26 | 2,860,000 | 2,921,490 | |
| Greenko Solar Mauritius, Ltd. (A)(B) | 5.550 | 01-29-25 | 1,660,000 | 1,708,109 | |
| The AES Corp. (A) | 3.950 | 07-15-30 | 725,000 | 782,783 | |
| Multi-utilities 0.2% | |||||
| E.ON SE | 0.375 | 09-29-27 | EUR | 1,360,000 | 1,675,915 |
| Engie SA | 0.375 | 06-21-27 | EUR | 1,400,000 | 1,730,733 |
| Convertible bonds 2.8% | $58,482,893 | ||||
| (Cost $53,995,581) | |||||
| Communication services 0.7% | 15,273,414 | ||||
| Media 0.7% | |||||
| DISH Network Corp. | 3.375 | 08-15-26 | 2,760,000 | 2,848,320 | |
| Liberty Broadband Corp. (A) | 1.250 | 09-30-50 | 5,530,000 | 5,543,825 | |
| Liberty Broadband Corp. (A) | 2.750 | 09-30-50 | 4,005,000 | 4,204,731 | |
| Liberty Media Corp. (A) | 0.500 | 12-01-50 | 2,275,000 | 2,676,538 | |
| Consumer discretionary 0.3% | 6,124,021 | ||||
| Household durables 0.1% | |||||
| Sony Group Corp., Zero Coupon | 0.000 | 09-30-22 | JPY | 81,000,000 | 1,626,121 |
| Specialty retail 0.2% | |||||
| Burlington Stores, Inc. | 2.250 | 04-15-25 | 2,820,000 | 4,497,900 | |
| Energy 0.3% | 5,616,895 | ||||
| Oil, gas and consumable fuels 0.3% | |||||
| BP Capital Markets PLC | 1.000 | 04-28-23 | GBP | 3,800,000 | 5,616,895 |
| Industrials 1.2% | 26,412,563 | ||||
| Airlines 1.0% | |||||
| Air Canada (A) | 4.000 | 07-01-25 | 2,300,000 | 3,815,125 | |
| 26 | JOHN HANCOCK INCOME FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
| Rate (%) | Maturity date | Par value^ | Value | ||
| Industrials (continued) | |||||
| Airlines (continued) | |||||
| American Airlines Group, Inc. | 6.500 | 07-01-25 | 6,240,000 | $10,795,200 | |
| Southwest Airlines Company | 1.250 | 05-01-25 | 4,210,000 | 7,167,525 | |
| Road and rail 0.2% | |||||
| Uber Technologies, Inc., Zero Coupon (A) | 0.000 | 12-15-25 | 4,555,000 | 4,634,713 | |
| Information technology 0.3% | 5,056,000 | ||||
| IT services 0.3% | |||||
| Sabre GLBL, Inc. | 4.000 | 04-15-25 | 2,560,000 | 5,056,000 | |
| Capital preferred securities 0.4% | $9,171,990 | ||||
| (Cost $8,181,357) | |||||
| Financials 0.4% | 9,171,990 | ||||
| Banks 0.4% | |||||
| USB Capital IX (Greater of 3 month LIBOR + 1.020% or 3.500%) (C)(D) | 3.500 | 06-28-21 | 9,462,000 | 9,171,990 | |
| Term loans (E) 1.2% | $24,402,913 | ||||
| (Cost $24,436,026) | |||||
| Consumer discretionary 0.2% | 3,615,486 | ||||
| Hotels, restaurants and leisure 0.2% | |||||
| Hilton Grand Vacations Borrower LLC, 2021 Term Loan B (F) | TBD | 05-20-28 | 1,975,000 | 1,977,469 | |
| KFC Holding Company, 2021 Term Loan B (F) | TBD | 03-15-28 | 517,000 | 517,217 | |
| Marriott Ownership Resorts, Inc., 2019 Term Loan B (F) | TBD | 08-29-25 | 146,000 | 143,628 | |
| New Red Finance, Inc., Term Loan B4 (F) | TBD | 11-19-26 | 993,000 | 977,172 | |
| Health care 0.2% | 4,399,879 | ||||
| Pharmaceuticals 0.2% | |||||
| Jazz Financing Lux Sarl, USD Term Loan (1 month LIBOR + 3.500%) | 4.000 | 04-21-28 | 2,015,000 | 2,023,282 | |
| Organon & Company, Term Loan (F) | TBD | 04-07-28 | 2,380,000 | 2,376,597 | |
| Industrials 0.3% | 5,481,866 | ||||
| Airlines 0.1% | |||||
| United Airlines, Inc., 2021 Term Loan B (F) | TBD | 04-21-28 | 1,254,000 | 1,264,973 | |
| Construction and engineering 0.1% | |||||
| AECOM, 2021 Term Loan B (1 week LIBOR + 1.750%) | 1.863 | 04-13-28 | 1,615,000 | 1,610,462 | |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK INCOME FUND | 27 |
| Rate (%) | Maturity date | Par value^ | Value | ||
| Industrials (continued) | |||||
| Machinery 0.1% | |||||
| Brown Group Holding LLC, Term Loan B (F) | TBD | 04-27-28 | 2,611,000 | $2,606,431 | |
| Information technology 0.4% | 8,333,812 | ||||
|
Technology hardware, storage and peripherals
|
|||||
| Dell International LLC, 2021 Term Loan B (F) | TBD | 09-19-25 | 8,335,313 | 8,333,812 | |
| Materials 0.1% | 2,571,870 | ||||
| Chemicals 0.1% | |||||
| SCIH Salt Holdings, Inc., 2021 Incremental Term Loan B (3 month LIBOR + 4.000%) | 4.750 | 03-16-27 | 2,590,000 | 2,571,870 | |
| Collateralized mortgage obligations 1.5% | $32,894,453 | ||||
| (Cost $32,099,929) | |||||
| Commercial and residential 1.5% | 32,894,453 | ||||
| Arroyo Mortgage Trust | |||||
| Series 2019-1, Class A1 (A)(G) | 3.805 | 01-25-49 | 2,413,582 | 2,464,813 | |
| Series 2019-3, Class A1 (A)(G) | 2.962 | 10-25-48 | 1,792,802 | 1,823,836 | |
| BAMLL Commercial Mortgage Securities Trust | |||||
| Series 2018-DSNY, Class A (1 month LIBOR + 0.850%) (A)(D) | 0.951 | 09-15-34 | 5,940,000 | 5,941,731 | |
| BX Commercial Mortgage Trust | |||||
| Series 2018-BIOA, Class D (1 month LIBOR + 1.321%) (A)(D) | 1.422 | 03-15-37 | 2,625,000 | 2,629,167 | |
| Series 2019-XL, Class A (1 month LIBOR + 0.920%) (A)(D) | 1.021 | 10-15-36 | 7,753,020 | 7,761,584 | |
| Century Plaza Towers | |||||
| Series 2019-CPT, Class A (A) | 2.865 | 11-13-39 | 5,760,000 | 6,071,116 | |
| CSMC Trust | |||||
| Series 2019-NQM1, Class A1 (A) | 2.656 | 10-25-59 | 1,251,066 | 1,273,898 | |
| DBCG Mortgage Trust | |||||
| Series 2017-BBG, Class A (1 month LIBOR + 0.700%) (A)(D) | 0.801 | 06-15-34 | 3,585,000 | 3,585,000 | |
| HarborView Mortgage Loan Trust | |||||
| Series 2007-3, Class ES IO (A) | 0.350 | 05-19-47 | 13,430,355 | 140,637 | |
| Series 2007-4, Class ES IO | 0.350 | 07-19-47 | 14,773,216 | 197,336 | |
| Series 2007-6, Class ES IO (A) | 0.343 | 08-19-37 | 13,694,261 | 194,643 | |
| New Residential Mortgage Loan Trust | |||||
| Series 2017-5A, Class A1 (1 month LIBOR + 1.500%) (A)(D) | 1.592 | 06-25-57 | 800,151 | 810,692 | |
| 28 | JOHN HANCOCK INCOME FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
| Rate (%) | Maturity date | Par value^ | Value | ||
| Asset backed securities 1.3% | $27,907,755 | ||||
| (Cost $26,757,645) | |||||
| Asset backed securities 1.3% | 27,907,755 | ||||
| DB Master Finance LLC | |||||
| Series 2017-1A, Class A2II (A) | 4.030 | 11-20-47 | 1,905,975 | 2,034,228 | |
| Series 2019-1A, Class A2I (A) | 3.787 | 05-20-49 | 3,315,938 | 3,369,258 | |
| Series 2019-1A, Class A2II (A) | 4.021 | 05-20-49 | 1,788,150 | 1,888,465 | |
| Domino's Pizza Master Issuer LLC | |||||
| Series 2015-1A, Class A2II (A) | 4.474 | 10-25-45 | 3,691,075 | 3,884,893 | |
| FirstKey Homes Trust | |||||
| Series 2020-SFR2, Class A (A) | 1.266 | 10-19-37 | 1,676,292 | 1,674,966 | |
| Home Partners of America Trust | |||||
| Series 2018-1, Class A (1 month LIBOR + 0.900%) (A)(D) | 1.001 | 07-17-37 | 1,511,363 | 1,514,438 | |
| MVW Owner Trust | |||||
| Series 2018-1A, Class A (A) | 3.450 | 01-21-36 | 969,864 | 1,007,183 | |
| Taco Bell Funding LLC | |||||
| Series 2016-1A, Class A23 (A) | 4.970 | 05-25-46 | 6,432,000 | 6,984,123 | |
| Towd Point Mortgage Trust | |||||
| Series 2017-2, Class A1 (A)(G) | 2.750 | 04-25-57 | 682,799 | 692,731 | |
| Series 2017-3, Class A1 (A)(G) | 2.750 | 07-25-57 | 1,125,037 | 1,148,755 | |
| Westlake Automobile Receivables Trust | |||||
| Series 2019-2A, Class C (A) | 2.840 | 07-15-24 | 3,650,000 | 3,708,715 | |
| Shares | Value | ||||
| Common stocks 0.4% | $9,442,549 | ||||
| (Cost $13,081,104) | |||||
| Communication services 0.0% | 0 | ||||
| Media 0.0% | |||||
| Vertis Holdings, Inc. (H)(I) | 300,118 | 0 | |||
| Utilities 0.4% | 9,442,549 | ||||
| Multi-utilities 0.4% | |||||
| Dominion Energy, Inc. | 94,900 | 9,442,549 | |||
| Preferred securities 3.7% | $79,280,300 | ||||
| (Cost $75,294,278) | |||||
| Communication services 0.1% | 2,447,465 | ||||
| Media 0.1% | |||||
| 2020 Cash Mandatory Exchangeable Trust, 5.250% (A) | 1,985 | 2,447,465 | |||
| Financials 0.8% | 16,129,644 | ||||
| Banks 0.8% | |||||
| U.S. Bancorp, 5.500% (B) | 135,700 | 3,829,454 | |||
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK INCOME FUND | 29 |
| Shares | Value | ||||
| Financials (continued) | |||||
| Banks (continued) | |||||
| U.S. Bancorp (Greater of 3 month LIBOR + 1.020% or 3.500%), 3.500% (D) | 8,257 | $7,811,617 | |||
| Wells Fargo & Company (5.850% to 9-15-23, then 3 month LIBOR + 3.090%) | 165,630 | 4,488,573 | |||
| Health care 0.3% | 6,472,460 | ||||
| Health care equipment and supplies 0.3% | |||||
| Becton, Dickinson and Company, 6.000% (B) | 44,500 | 2,425,250 | |||
| Danaher Corp., 4.750% | 2,330 | 4,047,210 | |||
| Industrials 0.5% | 9,936,330 | ||||
| Machinery 0.5% | |||||
| Fortive Corp., 5.000% | 3,975 | 3,994,120 | |||
| Stanley Black & Decker, Inc., 5.250% | 47,000 | 5,942,210 | |||
| Information technology 0.3% | 7,433,446 | ||||
| IT services 0.1% | |||||
| Sabre Corp., 6.500% | 11,000 | 1,927,860 | |||
|
Semiconductors and semiconductor
|
|||||
| Broadcom, Inc., 8.000% | 3,620 | 5,505,586 | |||
| Utilities 1.7% | 36,860,955 | ||||
| Electric utilities 1.5% | |||||
| American Electric Power Company, Inc., 6.125% | 90,700 | 4,554,047 | |||
| NextEra Energy, Inc., 4.872% | 151,550 | 8,432,242 | |||
| NextEra Energy, Inc., 5.279% | 143,200 | 6,853,552 | |||
| NextEra Energy, Inc., 6.219% | 76,450 | 3,698,651 | |||
| The Southern Company, 6.750% | 149,300 | 7,742,698 | |||
| Multi-utilities 0.2% | |||||
| DTE Energy Company, 6.250% | 109,300 | 5,579,765 | |||
| Yield (%) | Shares | Value | |||
| Short-term investments 2.1% | $45,601,681 | ||||
| (Cost $45,603,279) | |||||
| Short-term funds 0.4% | 8,512,681 | ||||
| John Hancock Collateral Trust (J) | 0.0241(K) | 850,834 | 8,512,681 | ||
| Par value^ | Value | ||||
| Repurchase agreement 1.7% | 37,089,000 | ||||
| Repurchase Agreement with State Street Corp. dated 5-28-21 at 0.000% to be repurchased at $37,089,000 on 6-1-21, collateralized by $37,800,200 U.S. Treasury Notes, 0.125% due 11-30-22 (valued at $37,830,807) | 37,089,000 | 37,089,000 | |||
| 30 | JOHN HANCOCK INCOME FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
| Total investments (Cost $2,089,418,507) 100.1% | $2,143,674,646 | ||||
| Other assets and liabilities, net (0.1%) | (2,527,652) | ||||
| Total net assets 100.0% | $2,141,146,994 | ||||
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK INCOME FUND | 31 |
| (H) | Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. Refer to Note 2 to the financial statements. |
| (I) | Non-income producing security. |
| (J) | Investment is an affiliate of the fund, the advisor and/or subadvisor. This security represents the investment of cash collateral received for securities lending. |
| (K) | The rate shown is the annualized seven-day yield as of 5-31-21. |
| 32 | JOHN HANCOCK 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) |
| 10-Year U.S. Treasury Note Futures | 612 | Short | Sep 2021 | $(80,620,706) | $(80,745,750) | $(125,044) |
| Euro-Buxl Futures | 229 | Short | Jun 2021 | (55,537,199) | (56,271,705) | (734,506) |
| German Euro BUND Futures | 71 | Short | Jun 2021 | (14,690,347) | (14,713,563) | (23,216) |
| U.S. Treasury Long Bond Futures | 1,946 | Short | Sep 2021 | (303,785,838) | (304,609,813) | (823,975) |
| Ultra U.S. Treasury Bond Futures | 35 | Short | Sep 2021 | (5,061,821) | (5,073,359) | (11,538) |
| $(1,718,279) |
^ Notional basis refers to the
contractual amount agreed upon at inception of open contracts; notional value represents the current value of the open contract.
FORWARD FOREIGN CURRENCY CONTRACTS
| Contract to buy | Contract to sell | Counterparty (OTC) |
Contractual
settlement date |
Unrealized
appreciation |
Unrealized
depreciation |
||
| AUD | 22,327,586 | USD | 17,445,094 | GSI | 6/16/2021 | — | $(164,567) |
| GBP | 7,408,231 | USD | 10,182,346 | HUS | 6/16/2021 | $342,667 | — |
| NZD | 4,213,444 | USD | 2,978,677 | ANZ | 6/16/2021 | 87,973 | — |
| NZD | 8,550,206 | USD | 6,126,322 | CITI | 6/16/2021 | 96,733 | — |
| NZD | 4,162,865 | USD | 3,005,062 | HUS | 6/16/2021 | 24,776 | — |
| USD | 17,434,683 | AUD | 22,578,545 | MSCS | 6/16/2021 | — | (40,075) |
| USD | 8,697,062 | BRL | 45,503,030 | SSB | 6/16/2021 | 23,185 | — |
| USD | 10,800,300 | GBP | 7,768,240 | UBS | 6/16/2021 | — | (236,186) |
| USD | 4,962,402 | JPY | 537,806,040 | CIBC | 6/16/2021 | 49,973 | — |
| USD | 6,105,216 | NZD | 8,514,590 | ANZ | 6/16/2021 | — | (91,915) |
| USD | 3,080,014 | NZD | 4,270,353 | CITI | 6/16/2021 | — | (28,056) |
| USD | 3,079,843 | NZD | 4,270,353 | SSB | 6/16/2021 | — | (28,227) |
| USD | 8,668,580 | SGD | 11,573,153 | CITI | 6/16/2021 | — | (89,953) |
| USD | 8,668,580 | SGD | 11,590,846 | GSI | 6/16/2021 | — | (103,343) |
| $625,307 | $(782,322) | ||||||
WRITTEN OPTIONS
| Foreign currency options | |||||||
| Description | Counterparty (OTC) | Currency |
Exercise
price |
Expiration
date |
Notional
amount* |
Premium | Value |
| Calls | |||||||
| Euro vs. U.S. Dollar | CITI | EUR | 1.22 | Aug 2021 | 33,210,000 | $465,628 | $(475,243) |
| $465,628 | $(475,243) | ||||||
| * For this type of option, notional amounts are equivalent to number of contracts. | |||||||
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK INCOME FUND | 33 |
| GBP | Pound Sterling |
| JPY | Japanese Yen |
| NZD | New Zealand Dollar |
| SGD | Singapore Dollar |
| USD | U.S. Dollar |
| Derivatives Abbreviations | |
| ANZ | Australia and New Zealand Banking Group Limited |
| CIBC | Canadian Imperial Bank of Commerce |
| CITI | Citibank, N.A. |
| GSI | Goldman Sachs International |
| HUS | HSBC Bank USA, N.A. |
| MSCS | Morgan Stanley Capital Services LLC |
| OTC | Over-the-counter |
| SSB | State Street Bank and Trust Company |
| UBS | UBS AG |
At 5-31-21, the aggregate cost of
investments for federal income tax purposes was $2,113,523,347. Net unrealized appreciation aggregated to $27,800,762, of which $58,356,719 related to gross unrealized appreciation and $30,555,957 related to gross
unrealized depreciation.
See Notes to financial statements
regarding investment transactions and other derivatives information.
| 34 | JOHN HANCOCK INCOME FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Financial statements
STATEMENT OF ASSETS AND
LIABILITIES 5-31-21
| Assets | |
| Unaffiliated investments, at value (Cost $2,080,904,228) including $8,490,615 of securities loaned | $2,135,161,965 |
| Affiliated investments, at value (Cost $8,514,279) | 8,512,681 |
| Total investments, at value (Cost $2,089,418,507) | 2,143,674,646 |
| Unrealized appreciation on forward foreign currency contracts | 625,307 |
| Cash | 8,788 |
| Foreign currency, at value (Cost $12,190,105) | 12,140,472 |
| Collateral held at broker for futures contracts | 10,813,016 |
| Collateral segregated at custodian for OTC derivative contracts | 890,000 |
| Dividends and interest receivable | 19,343,402 |
| Receivable for fund shares sold | 2,702,780 |
| Receivable for investments sold | 2,228,567 |
| Receivable for securities lending income | 1,868 |
| Other assets | 151,706 |
| Total assets | 2,192,580,552 |
| Liabilities | |
| Unrealized depreciation on forward foreign currency contracts | 782,322 |
| Written options, at value (Premiums received $465,628) | 475,243 |
| Payable for futures variation margin | 1,002,256 |
| Distributions payable | 289,310 |
| Payable for investments purchased | 37,262,961 |
| Payable for fund shares repurchased | 2,397,270 |
| Payable upon return of securities loaned | 8,520,601 |
| Payable to affiliates | |
| Accounting and legal services fees | 65,912 |
| Transfer agent fees | 130,670 |
| Distribution and service fees | 2,411 |
| Trustees' fees | 593 |
| Other liabilities and accrued expenses | 504,009 |
| Total liabilities | 51,433,558 |
| Net assets | $2,141,146,994 |
| Net assets consist of | |
| Paid-in capital | $2,207,777,214 |
| Total distributable earnings (loss) | (66,630,220) |
| Net assets | $2,141,146,994 |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK Income Fund | 35 |
STATEMENT OF ASSETS AND LIABILITIES (continued)
| Net asset value per share | |
| Based on net asset value and shares outstanding - the fund has an unlimited number of shares authorized with no par value | |
| Class A ($617,669,828 ÷ 91,735,947 shares)1 | $6.73 |
| Class C ($30,193,110 ÷ 4,484,164 shares)1 | $6.73 |
| Class I ($601,587,660 ÷ 89,520,243 shares) | $6.72 |
| Class R2 ($10,029,998 ÷ 1,491,609 shares) | $6.72 |
| Class R4 ($3,412,675 ÷ 506,773 shares) | $6.73 |
| Class R5 ($9,698,265 ÷ 1,442,716 shares) | $6.72 |
| Class R6 ($868,555,458 ÷ 129,098,239 shares) | $6.73 |
| Maximum offering price per share | |
| Class A (net asset value per share ÷ 96%)2 | $7.01 |
| 1 | Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. |
| 2 | On single retail sales of less than $100,000. On sales of $100,000 or more and on group sales the offering price is reduced. |
| 36 | JOHN HANCOCK Income Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
STATEMENT OF OPERATIONS For the year ended 5-31-21
| Investment income | |
| Interest | $54,920,583 |
| Dividends | 4,921,453 |
| Securities lending | 37,433 |
| Less foreign taxes withheld | (636,751) |
| Total investment income | 59,242,718 |
| Expenses | |
| Investment management fees | 6,877,000 |
| Distribution and service fees | 2,448,084 |
| Accounting and legal services fees | 324,458 |
| Transfer agent fees | 1,522,820 |
| Trustees' fees | 34,950 |
| Custodian fees | 382,187 |
| State registration fees | 174,253 |
| Printing and postage | 70,213 |
| Professional fees | 127,169 |
| Other | 105,374 |
| Total expenses | 12,066,508 |
| Less expense reductions | (162,435) |
| Net expenses | 11,904,073 |
| Net investment income | 47,338,645 |
| Realized and unrealized gain (loss) | |
| Net realized gain (loss) on | |
| Unaffiliated investments and foreign currency transactions | 34,167,448 |
| Affiliated investments | (6,006) |
| Futures contracts | 27,936,685 |
| Forward foreign currency contracts | 1,925,095 |
| Written options | 1,341,618 |
| 65,364,840 | |
| Change in net unrealized appreciation (depreciation) of | |
| Unaffiliated investments and translation of assets and liabilities in foreign currencies | 54,533,425 |
| Affiliated investments | (1,257) |
| Futures contracts | (1,706,328) |
| Forward foreign currency contracts | (9,284,058) |
| Written options | (9,615) |
| 43,532,167 | |
| Net realized and unrealized gain | 108,897,007 |
| Increase in net assets from operations | $156,235,652 |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK Income Fund | 37 |
STATEMENTS OF CHANGES IN NET
ASSETS
|
Year ended
5-31-21 |
Year ended
5-31-20 |
|
| Increase (decrease) in net assets | ||
| From operations | ||
| Net investment income | $47,338,645 | $48,984,112 |
| Net realized gain | 65,364,840 | 3,483,980 |
| Change in net unrealized appreciation (depreciation) | 43,532,167 | 23,809,373 |
| Increase in net assets resulting from operations | 156,235,652 | 76,277,465 |
| Distributions to shareholders | ||
| From earnings | ||
| Class A | (15,092,924) | (14,677,550) |
| Class B1 | (27,049) | (245,661) |
| Class C | (982,428) | (2,376,586) |
| Class I | (16,046,882) | (16,299,922) |
| Class R11 | (44,154) | (158,314) |
| Class R2 | (185,320) | (137,635) |
| Class R31 | (30,592) | (106,997) |
| Class R4 | (84,245) | (83,477) |
| Class R5 | (252,519) | (226,897) |
| Class R6 | (22,421,965) | (15,289,426) |
| Total distributions | (55,168,078) | (49,602,465) |
| From fund share transactions | 260,930,416 | (37,953,703) |
| Total increase (decrease) | 361,997,990 | (11,278,703) |
| Net assets | ||
| Beginning of year | 1,779,149,004 | 1,790,427,707 |
| End of year | $2,141,146,994 | $1,779,149,004 |
| 1 | Share class was redesignated during the year. Refer to Note 6 for further details. |
| 38 | JOHN HANCOCK Income Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Financial highlights
| CLASS A SHARES Period ended | 5-31-21 | 5-31-20 | 5-31-19 | 5-31-18 | 5-31-17 |
| Per share operating performance | |||||
| Net asset value, beginning of period | $6.39 | $6.28 | $6.25 | $6.47 | $6.47 |
| Net investment income1 | 0.14 | 0.17 | 0.20 | 0.20 | 0.17 |
| Net realized and unrealized gain (loss) on investments | 0.37 | 0.11 | 0.03 | (0.22) | 0.02 |
| Total from investment operations | 0.51 | 0.28 | 0.23 | (0.02) | 0.19 |
| Less distributions | |||||
| From net investment income | (0.17) | (0.17) | (0.20) | (0.20) | (0.19) |
| Net asset value, end of period | $6.73 | $6.39 | $6.28 | $6.25 | $6.47 |
| Total return (%)2,3 | 8.17 | 4.50 | 3.72 | (0.43) | 2.95 |
| Ratios and supplemental data | |||||
| Net assets, end of period (in millions) | $618 | $543 | $541 | $607 | $672 |
| Ratios (as a percentage of average net assets): | |||||
| Expenses before reductions | 0.82 | 0.85 | 0.82 | 0.80 | 0.81 |
| Expenses including reductions | 0.81 | 0.84 | 0.81 | 0.79 | 0.81 |
| Net investment income | 2.14 | 2.64 | 3.17 | 3.03 | 2.69 |
| Portfolio turnover (%) | 63 | 76 | 58 | 48 | 41 |
| 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 Income Fund | 39 |
| CLASS C SHARES Period ended | 5-31-21 | 5-31-20 | 5-31-19 | 5-31-18 | 5-31-17 |
| Per share operating performance | |||||
| Net asset value, beginning of period | $6.39 | $6.28 | $6.25 | $6.47 | $6.47 |
| Net investment income1 | 0.09 | 0.12 | 0.15 | 0.15 | 0.13 |
| Net realized and unrealized gain (loss) on investments | 0.37 | 0.12 | 0.03 | (0.22) | 0.01 |
| Total from investment operations | 0.46 | 0.24 | 0.18 | (0.07) | 0.14 |
| Less distributions | |||||
| From net investment income | (0.12) | (0.13) | (0.15) | (0.15) | (0.14) |
| Net asset value, end of period | $6.73 | $6.39 | $6.28 | $6.25 | $6.47 |
| Total return (%)2,3 | 7.41 | 3.77 | 2.99 | (1.12) | 2.24 |
| Ratios and supplemental data | |||||
| Net assets, end of period (in millions) | $30 | $95 | $146 | $211 | $320 |
| Ratios (as a percentage of average net assets): | |||||
| Expenses before reductions | 1.52 | 1.55 | 1.52 | 1.50 | 1.51 |
| Expenses including reductions | 1.51 | 1.54 | 1.51 | 1.49 | 1.51 |
| Net investment income | 1.39 | 1.94 | 2.48 | 2.32 | 2.00 |
| Portfolio turnover (%) | 63 | 76 | 58 | 48 | 41 |
| 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. |
| 40 | JOHN HANCOCK Income Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
| CLASS I SHARES Period ended | 5-31-21 | 5-31-20 | 5-31-19 | 5-31-18 | 5-31-17 |
| Per share operating performance | |||||
| Net asset value, beginning of period | $6.37 | $6.27 | $6.23 | $6.46 | $6.46 |
| Net investment income1 | 0.16 | 0.19 | 0.21 | 0.21 | 0.19 |
| Net realized and unrealized gain (loss) on investments | 0.38 | 0.10 | 0.04 | (0.23) | 0.02 |
| Total from investment operations | 0.54 | 0.29 | 0.25 | (0.02) | 0.21 |
| Less distributions | |||||
| From net investment income | (0.19) | (0.19) | (0.21) | (0.21) | (0.21) |
| Net asset value, end of period | $6.72 | $6.37 | $6.27 | $6.23 | $6.46 |
| Total return (%)2 | 8.51 | 4.65 | 4.18 | (0.29) | 3.27 |
| Ratios and supplemental data | |||||
| Net assets, end of period (in millions) | $602 | $530 | $595 | $837 | $3,080 |
| Ratios (as a percentage of average net assets): | |||||
| Expenses before reductions | 0.52 | 0.55 | 0.54 | 0.50 | 0.50 |
| Expenses including reductions | 0.51 | 0.54 | 0.53 | 0.49 | 0.49 |
| Net investment income | 2.43 | 2.93 | 3.47 | 3.31 | 3.02 |
| Portfolio turnover (%) | 63 | 76 | 58 | 48 | 41 |
| 1 | Based on average daily shares outstanding. |
| 2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK Income Fund | 41 |
| CLASS R2 SHARES Period ended | 5-31-21 | 5-31-20 | 5-31-19 | 5-31-18 | 5-31-17 |
| Per share operating performance | |||||
| Net asset value, beginning of period | $6.38 | $6.27 | $6.24 | $6.46 | $6.46 |
| Net investment income1 | 0.14 | 0.16 | 0.19 | 0.19 | 0.17 |
| Net realized and unrealized gain (loss) on investments | 0.36 | 0.12 | 0.03 | (0.22) | 0.01 |
| Total from investment operations | 0.50 | 0.28 | 0.22 | (0.03) | 0.18 |
| Less distributions | |||||
| From net investment income | (0.16) | (0.17) | (0.19) | (0.19) | (0.18) |
| Net asset value, end of period | $6.72 | $6.38 | $6.27 | $6.24 | $6.46 |
| Total return (%)2 | 8.07 | 4.41 | 3.61 | (0.54) | 2.86 |
| Ratios and supplemental data | |||||
| Net assets, end of period (in millions) | $10 | $3 | $6 | $9 | $14 |
| Ratios (as a percentage of average net assets): | |||||
| Expenses before reductions | 0.91 | 0.94 | 0.92 | 0.90 | 0.91 |
| Expenses including reductions | 0.91 | 0.93 | 0.91 | 0.89 | 0.90 |
| Net investment income | 2.09 | 2.57 | 3.07 | 2.92 | 2.62 |
| Portfolio turnover (%) | 63 | 76 | 58 | 48 | 41 |
| 1 | Based on average daily shares outstanding. |
| 2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
| 42 | JOHN HANCOCK Income Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
| CLASS R4 SHARES Period ended | 5-31-21 | 5-31-20 | 5-31-19 | 5-31-18 | 5-31-17 |
| Per share operating performance | |||||
| Net asset value, beginning of period | $6.39 | $6.28 | $6.25 | $6.47 | $6.47 |
| Net investment income1 | 0.15 | 0.18 | 0.20 | 0.20 | 0.19 |
| Net realized and unrealized gain (loss) on investments | 0.37 | 0.11 | 0.04 | (0.22) | 0.01 |
| Total from investment operations | 0.52 | 0.29 | 0.24 | (0.02) | 0.20 |
| Less distributions | |||||
| From net investment income | (0.18) | (0.18) | (0.21) | (0.20) | (0.20) |
| Net asset value, end of period | $6.73 | $6.39 | $6.28 | $6.25 | $6.47 |
| Total return (%)2 | 8.34 | 4.67 | 3.87 | (0.28) | 3.11 |
| Ratios and supplemental data | |||||
| Net assets, end of period (in millions) | $3 | $3 | $3 | $143 | $145 |
| Ratios (as a percentage of average net assets): | |||||
| Expenses before reductions | 0.76 | 0.78 | 0.77 | 0.75 | 0.76 |
| Expenses including reductions | 0.66 | 0.67 | 0.67 | 0.64 | 0.65 |
| Net investment income | 2.29 | 2.80 | 3.30 | 3.18 | 2.86 |
| Portfolio turnover (%) | 63 | 76 | 58 | 48 | 41 |
| 1 | Based on average daily shares outstanding. |
| 2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK Income Fund | 43 |
| CLASS R5 SHARES Period ended | 5-31-21 | 5-31-20 | 5-31-19 | 5-31-18 | 5-31-17 |
| Per share operating performance | |||||
| Net asset value, beginning of period | $6.38 | $6.27 | $6.24 | $6.46 | $6.46 |
| Net investment income1 | 0.17 | 0.19 | 0.22 | 0.22 | 0.20 |
| Net realized and unrealized gain (loss) on investments | 0.36 | 0.11 | 0.03 | (0.22) | 0.01 |
| Total from investment operations | 0.53 | 0.30 | 0.25 | — | 0.21 |
| Less distributions | |||||
| From net investment income | (0.19) | (0.19) | (0.22) | (0.22) | (0.21) |
| Net asset value, end of period | $6.72 | $6.38 | $6.27 | $6.24 | $6.46 |
| Total return (%)2 | 8.57 | 4.88 | 4.08 | (0.09) | 3.32 |
| Ratios and supplemental data | |||||
| Net assets, end of period (in millions) | $10 | $7 | $7 | $17 | $20 |
| Ratios (as a percentage of average net assets): | |||||
| Expenses before reductions | 0.46 | 0.49 | 0.47 | 0.45 | 0.46 |
| Expenses including reductions | 0.45 | 0.48 | 0.47 | 0.44 | 0.45 |
| Net investment income | 2.50 | 3.01 | 3.54 | 3.38 | 3.09 |
| Portfolio turnover (%) | 63 | 76 | 58 | 48 | 41 |
| 1 | Based on average daily shares outstanding. |
| 2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
| 44 | JOHN HANCOCK Income Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
| CLASS R6 SHARES Period ended | 5-31-21 | 5-31-20 | 5-31-19 | 5-31-18 | 5-31-17 |
| Per share operating performance | |||||
| Net asset value, beginning of period | $6.38 | $6.27 | $6.24 | $6.46 | $6.46 |
| Net investment income1 | 0.17 | 0.19 | 0.22 | 0.22 | 0.20 |
| Net realized and unrealized gain (loss) on investments | 0.37 | 0.12 | 0.03 | (0.22) | 0.02 |
| Total from investment operations | 0.54 | 0.31 | 0.25 | — | 0.22 |
| Less distributions | |||||
| From net investment income | (0.19) | (0.20) | (0.22) | (0.22) | (0.22) |
| Net asset value, end of period | $6.73 | $6.38 | $6.27 | $6.24 | $6.46 |
| Total return (%)2 | 8.61 | 4.93 | 4.13 | (0.03) | 3.39 |
| Ratios and supplemental data | |||||
| Net assets, end of period (in millions) | $869 | $582 | $461 | $1,525 | $288 |
| Ratios (as a percentage of average net assets): | |||||
| Expenses before reductions | 0.41 | 0.44 | 0.42 | 0.40 | 0.41 |
| Expenses including reductions | 0.41 | 0.43 | 0.42 | 0.39 | 0.38 |
| Net investment income | 2.54 | 3.04 | 3.58 | 3.45 | 3.15 |
| Portfolio turnover (%) | 63 | 76 | 58 | 48 | 41 |
| 1 | Based on average daily shares outstanding. |
| 2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK Income Fund | 45 |
Notes to financial statements
Note 1—Organization
John Hancock Income Fund (the fund)
is a series of John Hancock Strategic Series (the Trust), an open-end management investment company organized as a Massachusetts business trust and registered under the Investment Company Act of 1940, as amended (the
1940 Act). The investment objective of the fund is to seek a high level of current income.
The fund may offer multiple classes
of shares. The shares currently outstanding are detailed in the Statement of assets and liabilities. Class A and Class C shares are offered to all investors. Class I shares are offered to institutions and certain
investors. Class R2, Class R4 and Class R5 shares are available only to certain retirement and 529 plans. Class R6 shares are only available to certain retirement plans, institutions and other investors. Class C
shares convert to Class A shares eight years after purchase (certain exclusions may apply). Shareholders of each class have exclusive voting rights to matters that affect that class. The distribution and service fees,
if any, and transfer agent fees for each class may differ.
Note 2—Significant accounting policies
The financial statements have been
prepared in conformity with accounting principles generally accepted in the United States of America (US GAAP), which require management to make certain estimates and assumptions as of the date of the financial
statements. Actual results could differ from those estimates and those differences could be significant. The fund qualifies as an investment company under Topic 946 of Accounting Standards Codification of US GAAP.
Events or transactions occurring
after the end of the fiscal period through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting
policies of the fund:
Security valuation. Investments are stated at value as of the scheduled close of regular trading on the New York Stock Exchange (NYSE), normally at 4:00 P.M., Eastern Time. In case of emergency or other
disruption resulting in the NYSE not opening for trading or the NYSE closing at a time other than the regularly scheduled close, the net asset value (NAV) may be determined as of the regularly scheduled close of the
NYSE pursuant to the fund's Valuation Policies and Procedures.
In order to value the securities,
the fund uses the following valuation techniques: Debt obligations are typically valued based on evaluated prices provided by an independent pricing vendor. Independent pricing vendors utilize matrix pricing, which
takes into account factors such as institutional-size trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics and other market data, as well as broker
supplied prices. Equity securities, including exchange-traded or closed-end funds, are typically valued at the last sale price or official closing price on the exchange or principal market where the security trades.
In the event there were no sales during the day or closing prices are not available, the securities are valued using the last available bid price. Investments by the fund in open-end mutual funds, including John
Hancock Collateral Trust (JHCT), are valued at their respective NAVs each business day. Exchange-traded options are valued at the mid-price of the last quoted bid and ask prices from the exchange where the option
trades. Unlisted options are valued using evaluated prices obtained from an independent pricing vendor. Futures contracts whose settlement prices are determined as of the close of the NYSE are typically valued based
on the settlement price while other futures contracts are typically valued at the last traded price on the exchange on which they trade. Forward foreign currency contracts are valued at the prevailing forward rates
which are based on foreign currency exchange spot rates and forward points supplied by an independent pricing vendor. Foreign securities and currencies are valued in U.S. dollars based on foreign currency exchange
rates supplied by an independent pricing vendor.
In certain instances, the Pricing
Committee may determine to value equity securities using prices obtained from another exchange or market if trading on the exchange or market on which prices are typically obtained did not open for trading as
scheduled, or if trading closed earlier than scheduled, and trading occurred as normal on another exchange or market.
| 46 | JOHN HANCOCK Income Fund | ANNUAL REPORT |
Other portfolio securities and
assets, for which reliable market quotations are not readily available, are valued at fair value as determined in good faith by the fund's Pricing Committee following procedures established by the Board of Trustees.
The frequency with which these fair valuation procedures are used cannot be predicted and fair value of securities may differ significantly from the value that would have been used had a ready market for such
securities existed.
The fund uses a three-tier hierarchy
to prioritize the pricing assumptions, referred to as inputs, used in valuation techniques to measure fair value. Level 1 includes securities valued using quoted prices in active markets for identical securities,
including registered investment companies. Level 2 includes securities valued using other significant observable inputs. Observable inputs may include quoted prices for similar securities, interest rates, prepayment
speeds and credit risk. Prices for securities valued using these inputs are received from independent pricing vendors and brokers and are based on an evaluation of the inputs described. Level 3 includes securities
valued using significant unobservable inputs when market prices are not readily available or reliable, including the 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, 2021, by major security category or type:
|
Total
value at 5-31-21 |
Level 1
quoted price |
Level 2
significant observable inputs |
Level 3
significant unobservable inputs |
|
| Investments in securities: | ||||
| Assets | ||||
| U.S. Government and Agency obligations | $128,505,616 | — | $128,505,616 | — |
| Foreign government obligations | 446,931,079 | — | 446,931,079 | — |
| Corporate bonds | 1,281,053,417 | — | 1,281,053,417 | — |
| Convertible bonds | 58,482,893 | — | 58,482,893 | — |
| Capital preferred securities | 9,171,990 | — | 9,171,990 | — |
| Term loans | 24,402,913 | — | 24,402,913 | — |
| Collateralized mortgage obligations | 32,894,453 | — | 32,894,453 | — |
| Asset backed securities | 27,907,755 | — | 27,907,755 | — |
| Common stocks | 9,442,549 | $9,442,549 | — | — |
| Preferred securities | 79,280,300 | 72,838,715 | 6,441,585 | — |
| Short-term investments | 45,601,681 | 8,512,681 | 37,089,000 | — |
| Total investments in securities | $2,143,674,646 | $90,793,945 | $2,052,880,701 | — |
| Derivatives: | ||||
| Assets | ||||
| Forward foreign currency contracts | $625,307 | — | $625,307 | — |
| Liabilities | ||||
| Futures | (1,718,279) | $(1,718,279) | — | — |
| Forward foreign currency contracts | (782,322) | — | (782,322) | — |
| ANNUAL REPORT | JOHN HANCOCK Income Fund | 47 |
|
Total
value at 5-31-21 |
Level 1
quoted price |
Level 2
significant observable inputs |
Level 3
significant unobservable inputs |
|
| Written options | $(475,243) | — | $(475,243) | — |
Level 3 includes securities valued
at $0. Refer to Fund's investments.
Repurchase agreements. The fund may enter into repurchase agreements. When the fund enters into a repurchase agreement, it receives collateral that is held in a segregated account by the fund's custodian, or for
tri-party repurchase agreements, collateral is held at a third-party custodian bank in a segregated account for the benefit of the fund. The collateral amount is marked-to-market and monitored on a daily basis to
ensure that the collateral held is in an amount not less than the principal amount of the repurchase agreement plus any accrued interest. Collateral received by the fund for repurchase agreements is disclosed in the
Fund's investments as part of the caption related to the repurchase agreement.
Repurchase agreements are typically
governed by the terms and conditions of the Master Repurchase Agreement and/or Global Master Repurchase Agreement (collectively, MRA). Upon an event of default, the non-defaulting party may close out all transactions
traded under the MRA and net amounts owed. Absent an event of default, assets and liabilities resulting from repurchase agreements are not offset in the Statement of assets and liabilities. In the event of a default
by the counterparty, realization of the collateral proceeds could be delayed, during which time the collateral value may decline or the counterparty may have insufficient assets to pay claims resulting from close-out
of the transactions.
Term loans (Floating rate
loans). The fund may invest in term loans, which are debt securities and are often rated below investment grade at the time of purchase. Term loans are generally subject to legal or contractual
restrictions on resale and generally have longer settlement periods than conventional debt securities. Term loans involve special types of risk, including credit risk, interest-rate risk, counterparty risk, and risk
associated with extended settlement. The liquidity of term loans, including the volume and frequency of secondary market trading in such loans, varies significantly over time and among individual loans. During periods
of infrequent trading, valuing a term loan can be more difficult and buying and selling a term loan at an acceptable price can be more difficult and delayed, which could result in a loss.
The fund's ability to receive
payments of principal, interest and other amounts in connection with term loans will depend primarily on the financial condition of the borrower. The fund's failure to receive scheduled payments on a term loan due to
a default, bankruptcy or other reason would adversely affect the fund's income and would likely reduce the value of its assets. Transactions in loan investments typically take a significant amount of time (i.e., seven
days or longer) to settle. This could pose a liquidity risk to the fund and, if the fund's exposure to such investments is substantial, it could impair the fund's ability to meet redemptions. Because term loans may
not be rated by independent credit rating agencies, a decision to invest in a particular loan could depend exclusively on the subadvisor’s credit analysis of the borrower and/or term loan agents. There is
greater risk that the fund may have limited rights to enforce the terms of an underlying loan than for other types of debt instruments.
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. Dividend income
is recorded on ex-date, except for dividends of certain foreign securities where the dividend may not be known until after the ex-date. In those cases, dividend income, net of withholding taxes, is recorded when the
fund becomes aware of the dividends. Non-cash dividends, if any, are recorded at the fair market value of the securities received. Gains and losses on securities sold are determined on the basis of identified cost and
may include proceeds from litigation.
| 48 | JOHN HANCOCK Income Fund | ANNUAL REPORT |
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 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.
Obligations to repay collateral
received by the fund are shown on the Statement of assets and liabilities as Payable upon return of securities loaned and are secured by the loaned securities. As of May 31, 2021, the fund loaned securities valued at
$8,490,615 and received $8,520,601 of cash collateral.
Foreign investing. Assets, including investments, and liabilities denominated in foreign currencies are translated into U.S. dollar values each day at the prevailing exchange rate. Purchases and sales of
securities, income and expenses are translated into U.S. dollars at the prevailing exchange rate on the date of the transaction. The effect of changes in foreign currency exchange rates on the value of securities is
reflected as a component of the realized and unrealized gains (losses) on investments. Foreign investments are subject to a decline in the value of a foreign currency versus the U.S. dollar, which reduces the dollar
value of securities denominated in that currency.
Funds that invest internationally
generally carry more risk than funds that invest strictly in U.S. securities. Risks can result from differences in economic and political conditions, regulations, market practices (including higher transaction costs),
accounting standards and other factors.
Foreign taxes. The fund may be subject to withholding tax on income, capital gains or repatriations imposed by certain countries, a portion of which may be recoverable. Foreign taxes are accrued based
upon the fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. Taxes are accrued based on gains realized by the fund as a result of certain foreign security sales. In
certain circumstances, estimated taxes are accrued based on unrealized appreciation of such securities. Investment income is recorded net of foreign withholding taxes.
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. Effective June 25, 2020, 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 $1 billion unsecured committed line of credit. Excluding commitments designated for a certain fund and subject to the needs
| ANNUAL REPORT | JOHN HANCOCK Income Fund | 49 |
of all other affiliated funds, the fund can borrow
up to an aggregate commitment amount of $850 million, subject to asset coverage and other limitations as specified in the agreement. Each participating fund paid an upfront fee in connection with this line of credit
agreement, which is charged based on a combination of fixed and asset-based allocations and amortized over 365 days. Prior to June 25, 2020, the fund and other affiliated funds had a similar agreement that enabled
them to participate in a $750 million unsecured committed line of credit. 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, 2021, the fund had no borrowings under
the line of credit. Commitment fees, including upfront fees, for the year ended May 31, 2021 were $15,202.
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.
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, 2021, the fund has a short-term capital loss carryforward of $75,900,427 and a long-term capital loss carryforward of $50,322,055 available to offset future net realized capital gains. These carryforwards
do not expire.
As of May 31, 2021, 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, 2021 and 2020 was as follows:
| May 31, 2021 | May 31, 2020 | |
| Ordinary income | $55,168,078 | $49,602,465 |
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,
2021, the components of distributable earnings on a tax basis consisted of $32,355,997 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.
| 50 | JOHN HANCOCK Income Fund | ANNUAL REPORT |
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 foreign currency transactions, derivative transactions and 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.
Derivatives which are typically
traded through the OTC market are regulated by the Commodity Futures Trading Commission (the CFTC). Derivative counterparty risk is managed through an ongoing evaluation of the creditworthiness of all potential
counterparties and, if applicable, designated clearing organizations. The fund attempts to reduce its exposure to counterparty risk for derivatives traded in the OTC market, whenever possible, by entering into an
International Swaps and Derivatives Association (ISDA) Master Agreement with each of its OTC counterparties. The ISDA gives each party to the agreement the right to terminate all transactions traded under the
agreement if there is certain deterioration in the credit quality or contractual default of the other party, as defined in the ISDA. Upon an event of default or a termination of the ISDA, the non-defaulting party has
the right to close out all transactions and to net amounts owed.
As defined by the ISDA, the fund may
have collateral agreements with certain counterparties to mitigate counterparty risk on OTC derivatives. Subject to established minimum levels, collateral for OTC transactions is generally determined based on the net
aggregate unrealized gain or loss on contracts with a particular counterparty. Collateral pledged to the fund, if any, is held in a segregated account by a third-party agent or held by the custodian bank for the
benefit of the fund and can be in the form of cash or debt securities issued by the U.S. government or related agencies; collateral posted by the fund, if any, for OTC transactions is held in a segregated account at
the fund's custodian and is noted in the accompanying Fund's investments, or if cash is posted, on the Statement of assets and liabilities. The fund's risk of loss due to counterparty risk is equal to the asset value
of outstanding contracts offset by collateral received.
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
| ANNUAL REPORT | JOHN HANCOCK Income Fund | 51 |
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. Payable 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, 2021,
the fund used futures contracts to manage duration of the fund. The fund held futures contracts with USD notional values ranging from $192.9 million to $461.4 million, as measured at each quarter end.
Forward foreign currency
contracts. A forward foreign currency contract is an agreement between two parties to buy and sell specific currencies at a price that is set on the date of the contract. The forward contract calls
for delivery of the currencies on a future date that is specified in the contract. Forwards are typically traded OTC. Risks related to the use of forwards include the possible failure of counterparties to meet the
terms of the forward agreement, the failure of the counterparties to timely post collateral if applicable, and the risk that currency movements will not favor the fund thereby reducing the fund's total return, and the
potential for losses in excess of the amounts recognized on the Statement of assets and liabilities.
The market value of a forward
foreign currency contract fluctuates with changes in foreign currency exchange rates. Forward foreign currency contracts are marked-to-market daily and the change in value is recorded by the fund as an unrealized gain
or loss. Realized gains or losses, 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, are recorded upon delivery or receipt of the currency or
settlement with the counterparty.
During the year ended May 31, 2021,
the fund used forward foreign currency contracts to manage against anticipated changes in currency exchange rates. The fund held forward foreign currency contracts with USD notional values ranging from $111.2 million
to $901.0 million, as measured at each quarter end.
Options. There are two types of options, put options and call options. Options are traded either OTC or on an exchange. A call option gives the purchaser of the option the right to buy (and the
seller the obligation to sell) the underlying instrument at the exercise price. A put option gives the purchaser of the option the right to sell (and the writer the obligation to buy) the underlying instrument at the
exercise price. Writing puts and buying calls may increase the fund's exposure to changes in the value of the underlying instrument. Buying puts and writing calls may decrease the fund's exposure to such changes.
Risks related to the use of options include the loss of premiums, possible illiquidity of the options markets, trading restrictions imposed by an exchange and movements in underlying security values, and for written
options, potential losses in excess of the amounts recognized on the Statement of assets and liabilities. In addition, OTC options are subject to the risks of all OTC derivatives contracts.
When the fund purchases an option,
the premium paid is included in the Fund's investments and subsequently “marked-to-market” to reflect current market value. If the purchased option expires, the fund realizes a loss equal to the cost of
the option. If the fund exercises a call option, the cost of the securities acquired by exercising the call is increased by the premium paid to buy the call. If the fund exercises a put option, it realizes a gain or
loss from the sale of the underlying security and the proceeds from such sale are decreased by the premium paid. If the fund enters into a closing sale transaction, it realizes a gain or loss, depending on whether
proceeds from the closing sale are greater or less than the original cost. When the fund writes an option, the premium received is included as a liability and subsequently “marked-to-market” to reflect the
current market value of the option written. Premiums received from writing options that expire unexercised are recorded as realized gains. Premiums received from writing options which are exercised or are closed are
added to or offset against the proceeds or amount paid on the transaction to determine the realized gain or loss. If a put option on a security is exercised, the premium received reduces the cost basis of the
securities purchased by the fund.
| 52 | JOHN HANCOCK Income Fund | ANNUAL REPORT |
During the year ended May 31, 2021,
the fund used purchased options contracts to manage against changes in foreign currency exchange rates. The fund held purchased options contracts with market values ranging up to $97,000, as measured at each quarter
end.There were no open purchased options contracts as of May 31, 2021.
During the year ended May 31, 2021,
the fund wrote option contracts to manage against changes in foreign currency exchange rates. The fund held written option contracts with market values ranging up to $490,000, as measured at each quarter end.
Fair value of derivative instruments
by risk category
The table below summarizes the fair
value of derivatives held by the fund at May 31, 2021 by risk category:
| Risk |
Statement of assets
and liabilities location |
Financial
instruments location |
Assets
derivatives fair value |
Liabilities
derivatives fair value |
| Interest rate | Receivable/payable for futures variation margin1 | Futures | — | $(1,718,279) |
| Currency | Unrealized appreciation (depreciation) on forward foreign currency contracts | Forward foreign currency contracts | $625,307 | (782,322) |
| Currency | Written options, at value | Written options | — | (475,243) |
| $625,307 | $(2,975,844) |
| 1 | Reflects cumulative appreciation/depreciation on open futures as disclosed in the Derivatives section of Fund's investments. Only the year end variation margin receivable/payable is separately reported on the Statement of assets and liabilities. |
For financial reporting purposes,
the fund does not offset OTC derivative assets or liabilities that are subject to master netting arrangements, as defined by the ISDAs, in the Statement of assets and liabilities. In the event of default by the
counterparty or a termination of the agreement, the ISDA allows an offset of amounts across the various transactions between the fund and the applicable counterparty.
Effect of derivative instruments on
the Statement of operations
The table below summarizes the net
realized gain (loss) included in the net increase (decrease) in net assets from operations, classified by derivative instrument and risk category, for the year ended May 31, 2021:
| Statement of operations location - Net realized gain (loss) on: | |||||
| Risk |
Unaffiliated
investments and foreign currency transactions1 |
Futures contracts |
Forward foreign
currency contracts |
Written options | Total |
| Interest rate | — | $27,936,685 | — | — | $27,936,685 |
| Currency | $(185,976) | — | $1,925,095 | $1,341,618 | 3,080,737 |
| Total | $(185,976) | $27,936,685 | $1,925,095 | $1,341,618 | $31,017,422 |
| 1 | Realized gain/loss associated with purchased options is included in this caption on the Statement of operations. |
The table below summarizes the net
change in unrealized appreciation (depreciation) included in the net increase (decrease) in net assets from operations, classified by derivative instrument and risk category, for the year ended May 31, 2021:
| Statement of operations location - Change in net unrealized appreciation (depreciation) of: | ||||
| Risk | Futures contracts |
Forward foreign
currency contracts |
Written options | Total |
| Interest rate | $(1,706,328) | — | — | $(1,706,328) |
| ANNUAL REPORT | JOHN HANCOCK Income Fund | 53 |
| Statement of operations location - Change in net unrealized appreciation (depreciation) of: | ||||
| Risk | Futures contracts |
Forward foreign
currency contracts |
Written options | Total |
| Currency | — | $(9,284,058) | $(9,615) | $(9,293,673) |
| Total | $(1,706,328) | $(9,284,058) | $(9,615) | $(11,000,001) |
Note 4—Guarantees and indemnifications
Under the Trust's organizational
documents, its Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust, including the fund. Additionally, in the normal course of business, the
fund enters into contracts with service providers that contain general indemnification clauses. The fund's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made
against the fund that have not yet occurred. The risk of material loss from such claims is considered remote.
Note 5—Fees and transactions with affiliates
John Hancock Investment Management
LLC (the Advisor) serves as investment advisor for the fund. John Hancock Investment Management Distributors LLC (the Distributor), an affiliate of the Advisor, serves as principal underwriter of the fund. The Advisor
and the Distributor are indirect, principally owned subsidiaries of Manulife Financial Corporation.
Management fee. The fund has an investment management agreement with the Advisor under which the fund pays a daily management fee to the Advisor, equivalent on an annual basis to the sum of: (a)
0.60% of the first $100 million of the fund’s average daily net assets; (b) 0.45% of the next $150 million of the fund’s average daily net assets; (c) 0.40% of the next $250 million of the fund’s
average daily net assets; (d) 0.35% of the next $150 million of the fund’s average daily net assets; and (e) 0.30% of the fund’s average daily net assets in excess of $650 million. The Advisor has a
subadvisory agreement with Manulife Investment Management (US) LLC, an indirectly owned subsidiary of Manulife Financial Corporation and an affiliate of the Advisor. The fund is not responsible for payment of the
subadvisory fees.
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, 2021, this waiver amounted to 0.01% of the fund’s average daily net assets. This arrangement expires on July 31, 2023, 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.
For the year ended May 31, 2021, the
expense reductions described above amounted to the following:
| Class | Expense reduction |
| Class A | $47,370 |
| Class B | 115 |
| Class C | 4,250 |
| Class I | 44,967 |
| Class R1 | 157 |
| Class R2 | 610 |
| Class | Expense reduction |
| Class R3 | $112 |
| Class R4 | 249 |
| Class R5 | 695 |
| Class R6 | 60,771 |
| Total | $159,296 |
Expenses waived or
reimbursed in the current fiscal period are not subject to recapture in future fiscal periods.
The investment management
fees, including the impact of the waivers and reimbursements as described above, incurred for the year ended May 31, 2021, were equivalent to a net annual effective rate of 0.33% of the fund's average daily net
assets.
| 54 | JOHN HANCOCK Income Fund | ANNUAL REPORT |
Accounting and legal services. Pursuant to a service agreement, the fund reimburses the Advisor for all expenses associated with providing the administrative, financial, legal, compliance, accounting and recordkeeping
services to the fund, including the preparation of all tax returns, periodic reports to shareholders and regulatory reports, among other services. These expenses are allocated to each share class based on its relative
net assets at the time the expense was incurred. These accounting and legal services fees incurred, for the year ended May 31, 2021, amounted to an annual rate of 0.02% of the fund's average daily net
assets.
Distribution and service plans. The fund has a distribution agreement with the Distributor. The fund has adopted distribution and service plans for certain classes as detailed below pursuant to Rule 12b-1 under the 1940
Act, to pay the Distributor for services provided as the distributor of shares of the fund. In addition, under a service plan for certain classes as detailed below, the fund pays for certain other services. The fund
may pay up to the following contractual rates of distribution and service fees under these arrangements, expressed as an annual percentage of average daily net assets for each class of the fund's shares:
Class B, Class R1, and Class R3 were
redesignated during the year. Refer to Note 6 for further details.
The fund's Distributor has
contractually agreed to waive 0.10% of Rule12b-1 fees for Class R4 shares. The current waiver agreement expires on September 30, 2022, unless renewed by mutual agreement of the fund and the Distributor based upon a
determination that this is appropriate under the circumstances at the time. This contractual waiver amounted to $3,139 for Class R4 shares for the year ended May 31, 2021.
Sales charges. Class A shares are assessed up-front sales charges, which resulted in payments to the Distributor amounting to $331,764 for the year ended May 31, 2021. Of this amount, $47,107 was
retained and used for printing prospectuses, advertising, sales literature and other purposes and $284,657 was paid as sales commissions to broker-dealers.
Class A and Class C shares may be
subject to contingent deferred sales charges (CDSCs). Certain Class A shares purchased, including those that are acquired through purchases of $1 million or more, and redeemed within one year of purchase are subject
to a 1.00% sales charge. 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, 2021, CDSCs received by the Distributor amounted to $907 and $956 for Class A and Class C shares, respectively.
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
| ANNUAL REPORT | JOHN HANCOCK Income Fund | 55 |
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, 2021 were as follows:
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, 2021 and 2020 were as follows:
| Year Ended 5-31-21 | Year Ended 5-31-20 | |||
| Shares | Amount | Shares | Amount | |
| Class A shares | ||||
| Sold | 19,347,248 | $128,926,362 | 13,544,748 | $86,916,405 |
| Distributions reinvested | 2,044,226 | 13,635,575 | 2,062,996 | 13,249,852 |
| Repurchased | (14,665,312) | (97,801,867) | (16,766,708) | (106,910,261) |
| Net increase (decrease) | 6,726,162 | $44,760,070 | (1,158,964) | $(6,744,004) |
| Class B shares | ||||
| Sold | 101 | $663 | 15,266 | $97,887 |
| Distributions reinvested | 3,526 | 23,124 | 35,026 | 225,402 |
| Repurchased | (928,557) | (6,124,459) | (2,263,874) | (14,433,286) |
| Net decrease | (924,930) | $(6,100,672) | (2,213,582) | $(14,109,997) |
| 56 | JOHN HANCOCK Income Fund | ANNUAL REPORT |
| Year Ended 5-31-21 | Year Ended 5-31-20 | |||
| Shares | Amount | Shares | Amount | |
| Class C shares | ||||
| Sold | 488,757 | $3,249,125 | 694,722 | $4,465,518 |
| Distributions reinvested | 138,680 | 920,236 | 325,212 | 2,090,189 |
| Repurchased | (10,988,883) | (73,197,173) | (9,375,627) | (60,023,588) |
| Net decrease | (10,361,446) | $(69,027,812) | (8,355,693) | $(53,467,881) |
| Class I shares | ||||
| Sold | 22,670,289 | $150,986,083 | 24,130,052 | $153,610,549 |
| Distributions reinvested | 2,263,729 | 15,070,006 | 2,368,311 | 15,186,457 |
| Repurchased | (18,604,211) | (123,752,311) | (38,261,373) | (242,682,580) |
| Net increase (decrease) | 6,329,807 | $42,303,778 | (11,763,010) | $(73,885,574) |
| Class R1 shares | ||||
| Sold | 52,454 | $345,250 | 207,414 | $1,322,728 |
| Distributions reinvested | 5,576 | 36,735 | 22,519 | 145,129 |
| Repurchased | (988,556) | (6,568,744) | (403,366) | (2,556,490) |
| Net decrease | (930,526) | $(6,186,759) | (173,433) | $(1,088,633) |
| Class R2 shares | ||||
| Sold | 1,376,644 | $9,152,894 | 252,415 | $1,624,488 |
| Distributions reinvested | 27,459 | 183,634 | 17,155 | 110,140 |
| Repurchased | (453,936) | (3,030,456) | (728,171) | (4,688,046) |
| Net increase (decrease) | 950,167 | $6,306,072 | (458,601) | $(2,953,418) |
| Class R3 shares | ||||
| Sold | 36,366 | $238,128 | 158,267 | $1,013,299 |
| Distributions reinvested | 4,254 | 27,939 | 16,533 | 106,155 |
| Repurchased | (684,924) | (4,538,111) | (236,201) | (1,507,603) |
| Net decrease | (644,304) | $(4,272,044) | (61,401) | $(388,149) |
| Class R4 shares | ||||
| Sold | 213,865 | $1,431,246 | 125,926 | $806,428 |
| Distributions reinvested | 12,624 | 84,242 | 12,974 | 83,324 |
| Repurchased | (144,004) | (963,859) | (210,656) | (1,346,895) |
| Net increase (decrease) | 82,485 | $551,629 | (71,756) | $(457,143) |
| Class R5 shares | ||||
| Sold | 701,285 | $4,679,275 | 455,831 | $2,905,420 |
| Distributions reinvested | 37,883 | 252,383 | 35,196 | 225,732 |
| Repurchased | (462,999) | (3,095,350) | (507,164) | (3,238,277) |
| Net increase (decrease) | 276,169 | $1,836,308 | (16,137) | $(107,125) |
| ANNUAL REPORT | JOHN HANCOCK Income Fund | 57 |
| Year Ended 5-31-21 | Year Ended 5-31-20 | |||
| Shares | Amount | Shares | Amount | |
| Class R6 shares | ||||
| Sold | 52,649,935 | $349,143,908 | 33,183,910 | $213,393,049 |
| Distributions reinvested | 3,265,041 | 21,782,798 | 2,300,702 | 14,748,717 |
| Repurchased | (17,978,708) | (120,166,860) | (17,720,651) | (112,893,545) |
| Net increase | 37,936,268 | $250,759,846 | 17,763,961 | $115,248,221 |
| Total net increase (decrease) | 39,439,852 | $260,930,416 | (6,508,616) | $(37,953,703) |
On June 25, 2020, the Board of
Trustees approved redesignations of certain share classes. As a result of the redesignations, Class B, Class R1, and Class R3 were terminated, and shareholders in these classes became shareholders of the respective
classes identified below, in each case with the same or lower total net expenses. The following amounts are included in the amount repurchased of the terminated classes and the amount sold of the redesignated
classes.
| Redesignation | Effective date | Amount | |||||
| Class R3 shares as Class R2 shares | October 9, 2020 | $2,461,545 | |||||
| Class B shares as Class A shares | October 14, 2020 | $3,153,811 | |||||
| Class R1 shares as Class R2 shares | October 23, 2020 | $5,004,936 |
Note 7—Purchase and sale of securities
Purchases and sales of securities,
other than short-term investments and U.S. Treasury obligations, amounted to $1,499,031,920 and $1,140,088,724, respectively, for the year ended May 31, 2021. Purchases and sales of U.S. Treasury obligations
aggregated $35,641,109 and $67,694,175, respectively, for the year ended May 31, 2021.
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* | 850,834 | $8,705,385 | $144,897,292 | $(145,082,733) | $(6,006) | $(1,257) | $37,433 | — | $8,512,681 |
| * | 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. As market participants transition away from LIBOR, LIBOR’s
usefulness may deteriorate. 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.
| 58 | JOHN HANCOCK Income Fund | ANNUAL REPORT |
The ICE Benchmark Administration
Limited, the administrator of LIBOR, is expected to cease publishing most LIBOR maturities, including some US LIBOR maturities, on December 31, 2021, and the remaining and most liquid US LIBOR maturities on June 30,
2023. It is expected that market participants will transition to the use of alternative reference or benchmark rates before the end of 2021. Regulators have encouraged the development and adoption of alternative rates
such as the Secured Overnight Financing Rate (“SOFR”), which is a broad measure of secured overnight US Treasury repo rates, but there is no definitive information regarding the future utilization of any
particular replacement rate.
The impact on the transition away
from LIBOR referenced financial instruments remains uncertain. It is expected that market participants will amend such financial instruments to include fallback provisions and other measures that contemplate the
discontinuation of LIBOR. To facilitate the transition of legacy derivatives contracts referencing LIBOR, the International Swaps and Derivatives Association, Inc. launched a protocol to incorporate fallback
provisions. There are obstacles to converting certain longer term securities to a new benchmark or benchmarks and the effectiveness of one versus multiple alternative reference rates has not been determined. Certain
proposed replacement rates, such as SOFR, are materially different from LIBOR, and will require changes to the applicable spreads. Furthermore, the risks associated with the conversion from LIBOR may be exacerbated if
an orderly transition is not completed in a timely manner.
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, which may
lead to less liquidity in certain instruments, industries, sectors or the markets generally, and may ultimately affect fund performance.
Note 11—New accounting pronouncement
In March 2020, the Financial
Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU), ASU 2020-04, which provides optional, temporary relief with respect to the financial reporting of contracts subject to certain types of
modifications due to the planned discontinuation of the LIBOR and other IBOR-based reference rates as of the end of 2021. The temporary relief provided by ASU 2020-04 is effective for certain reference rate-related
contract modifications that occur during the period March 12, 2020 through December 31, 2022. Management is currently evaluating the potential impact of ASU 2020-04 to the financial statements.
| ANNUAL REPORT | JOHN HANCOCK Income Fund | 59 |
Report of Independent Registered
Public Accounting Firm
To the Board of Trustees of John
Hancock Strategic Series and Shareholders of John Hancock Income Fund
Opinion on the Financial Statements
We have audited the accompanying
statement of assets and liabilities, including the fund’s investments, of John Hancock Income Fund (one of the funds constituting John Hancock Strategic Series, referred to hereafter as the “Fund”)
as of May 31, 2021, the related statement of operations for the year ended May 31, 2021, the statements of changes in net assets for each of the two years in the period ended May 31, 2021, including the related notes,
and the financial highlights for each of the five years in the period ended May 31, 2021 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly,
in all material respects, the financial position of the Fund as of May 31, 2021, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended May
31, 2021 and the financial highlights for each of the five years in the period ended May 31, 2021 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the
responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public
Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of
the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these
financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement, whether due to error or fraud.
Our audits included performing
procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test
basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating
the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of May 31, 2021 by correspondence with the custodian, transfer agent, agent banks and brokers; when
replies were not received from agent banks and brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
Boston, Massachusetts
July 12, 2021
We have served as the auditor of one
or more investment companies in the John Hancock group of funds since 1988.
| 60 | JOHN HANCOCK INCOME FUND | ANNUAL REPORT |
Tax information (Unaudited)
For federal income tax purposes, the
following information is furnished with respect to the distributions of the fund, if any, paid during its taxable year ended May 31, 2021.
The fund reports the maximum amount
allowable of its net taxable income as eligible for the corporate dividends-received deduction.
The fund reports the maximum amount
allowable of its net taxable income as qualified dividend income as provided in the Jobs and Growth Tax Relief Reconciliation Act of 2003.
The fund reports the maximum amount
allowable of its Section 199A dividends as defined in Proposed Treasury Regulation §1.199A-3(d).
Eligible shareholders will be mailed
a 2021 Form 1099-DIV in early 2022. This will reflect the tax character of all distributions paid in calendar year 2021.
Please consult a tax advisor regarding
the tax consequences of your investment in the fund.
| ANNUAL REPORT | JOHN HANCOCK INCOME FUND | 61 |
STATEMENT REGARDING LIQUIDITY
RISK MANAGEMENT
Operation of the Liquidity Risk
Management Program
This section describes operation and
effectiveness of the Liquidity Risk Management Program (LRMP) established in accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the Liquidity Rule). The Board of Trustees (the Board) of
each Fund in the John Hancock Group of Funds (each a Fund and collectively, the Funds) that is subject to the requirements of the Liquidity Rule has appointed John Hancock Investment Management LLC and John Hancock
Variable Trust Advisers LLC (together, the Advisor) to serve as Administrator of the LRMP with respect to each of the Funds, including John Hancock Income Fund, subject to the oversight of the Board. In order to
provide a mechanism and process to perform the functions necessary to administer the LRMP, the Advisor established the Liquidity Risk Management Committee (the Committee). The Fund's subadvisor, Manulife Investment
Management (US) LLC (the Subadvisor) executes the day-to-day investment management and security-level activities of the Fund in accordance with the requirements of the LRMP, subject to the supervision of the Advisor
and the Board.
The Committee holds monthly meetings
to: (1) review the day-to-day operations of the LRMP; (2) review and approve month end liquidity classifications; (3) review quarterly testing and determinations, as applicable; and (4) review other LRMP related
material. The Advisor also conducts daily, monthly, quarterly, and annual quantitative and qualitative assessments of each subadvisor to a Fund that is subject to the requirements of the Liquidity Rule and is a part
of the LRMP to monitor investment performance issues, risks and trends. In addition, the Advisor may conduct ad-hoc reviews and meetings with subadvisors as issues and trends are identified, including potential
liquidity and valuation issues. The Committee also monitors global events, such as the COVID-19 Coronavirus, that could impact the markets and liquidity of portfolio investments and their classifications.
The Committee provided the Board at
a meeting held by videoconference on March 23-25, 2021 with a written report which addressed the Committee’s assessment of the adequacy and effectiveness of the implementation and operation of the LRMP and any
material changes to the LRMP. The report, which covered the period January 1, 2020 through December 31, 2020, included an assessment of important aspects of the LRMP including, but not limited to: (1) Highly Liquid
Investment Minimum (HLIM) determination; (2) Compliance with the 15% limit on illiquid investments; (3) Reasonably Anticipated Trade Size (RATS) determination; (4) Security-level liquidity classifications; (5)
Liquidity risk assessment; and (6) Operation of the Fund’s Redemption-In-Kind Procedures. Additionally, the report included a discussion of notable changes and enhancements to the LRMP implemented during
2020.
The report also covered material
liquidity matters which occurred or were reported during this period applicable to the Fund, if any, and the Committee’s actions to address such matters.
The report stated, in relevant part,
that during the period covered by the report:
| • | The Fund’s investment strategy remained appropriate for an open-end fund structure; |
| • | The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund; |
| • | The Fund did not report any breaches of the 15% limit on illiquid investments that would require reporting to the Securities and Exchange Commission; |
| • | The Fund continued to qualify as a Primarily Highly Liquid Fund under the Liquidity Rule and therefore is not required to establish a HLIM; and |
| • | The Chief Compliance Officer’s office performed audit testing of the LRMP which resulted in an assessment that the LRMP’s control environment was deemed to be operating effectively and in compliance with the Board approved procedures. |
| 62 | JOHN HANCOCK INCOME FUND | ANNUAL REPORT |
Adequacy and Effectiveness
Based on the review and assessment
conducted by the Committee, the Committee has determined that the LRMP has been implemented, and is operating in a manner that is adequate and effective at assessing and managing the liquidity risk of each Fund.
| ANNUAL REPORT | JOHN HANCOCK INCOME FUND | 63 |
Trustees and Officers
This chart
provides information about the Trustees and Officers who oversee your John Hancock fund. Officers elected by the Trustees manage the day-to-day operations of the fund and execute policies formulated by the
Trustees.
| 64 | JOHN HANCOCK INCOME FUND | ANNUAL REPORT |
| 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 | 190 |
| Trustee | ||
| President, Cambridge College, Cambridge, Massachusetts (since 2011); Board of Directors, Amwell Corporation (since 2020); Board of Directors, Massachusetts Women’s Forum (2018-2020); Board of Directors, National Association of Corporate Directors/New England (2015-2020); 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). | ||
| Steven R. Pruchansky, Born: 1944 | 2005 | 190 |
| 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. | ||
| Frances G. Rathke,2,* Born: 1960 | 2020 | 190 |
| Trustee | ||
| Director, Northern New England Energy Corporation (since 2017); Director, Audit Committee Chair and Compensation Committee Member, Green Mountain Power Corporation (since 2016); Director, Treasurer and Finance & Audit Committee Chair, Flynn Center for Performing Arts (since 2016); Director, Audit Committee Chair and Compensation Committee Member, Planet Fitness (since 2016); Director, Citizen Cider, Inc. (high-end hard cider and hard seltzer company) (since 2016); Chief Financial Officer and Treasurer, Keurig Green Mountain, Inc. (2003-retired 2015); Independent Financial Consultant, Frances Rathke Consulting (strategic and financial consulting services) (2001-2003); Chief Financial Officer and Secretary, Ben & Jerry’s Homemade, Inc. (1989-2000, including prior positions); Senior Manager, Coopers & Lybrand, LLC (independent public accounting firm) (1982-1989). Trustee of various trusts within the John Hancock Fund Complex (since 2020). | ||
| Gregory A. Russo, Born: 1949 | 2009 | 190 |
| 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). | ||
| ANNUAL REPORT | JOHN HANCOCK INCOME FUND | 65 |
| 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 | 190 |
| President and Non-Independent Trustee | ||
| Head of Wealth and Asset Management, United States and Europe, for John Hancock and Manulife (since 2018); 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 | 190 |
| 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). | ||
| 66 | JOHN HANCOCK INCOME FUND | ANNUAL REPORT |
| Principal officers who are not Trustees (continued) | |
|
Name, year of birth
Position(s) held with Trust Principal occupation(s) during past 5 years |
Current
Position(s) with the Trust since |
| Trevor Swanberg, Born: 1979 | 2020 |
| Chief Compliance Officer | |
| Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2020); Deputy Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (2019–2020); Assistant Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (2016–2019); Vice President, State Street Global Advisors (2015–2016); Chief Compliance Officer of various trusts within the John Hancock Fund Complex (since 2016, including prior positions). | |
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. |
| * | Appointed as Independent Trustee effective as of September 15, 2020. |
| ANNUAL REPORT | JOHN HANCOCK INCOME FUND | 67 |
More information
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
Frances G. Rathke*,1
Gregory A. Russo
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
Frances G. Rathke*,1
Gregory A. Russo
Officers
Andrew G. Arnott
President
President
Charles A. Rizzo
Chief Financial Officer
Chief Financial Officer
Salvatore Schiavone
Treasurer
Treasurer
Christopher (Kit) Sechler
Secretary and Chief Legal Officer
Secretary and Chief Legal Officer
Trevor Swanberg2
Chief Compliance Officer
Chief Compliance Officer
* Member of the Audit
Committee
† Non-Independent Trustee
1 Appointed as Independent Trustee effective as of September 15, 2020
2 Effective July 31, 2020
Investment advisor
John Hancock Investment Management
LLC
Subadvisor
Manulife Investment Management (US)
LLC
Portfolio Managers
Christopher M. Chapman, CFA
Thomas C. Goggins
Daniel S. Janis III
Kisoo Park
Thomas C. Goggins
Daniel S. Janis III
Kisoo Park
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
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 | Regular mail: | Express mail: |
| jhinvestments.com |
John Hancock Signature Services, Inc.
P.O. Box 219909 Kansas City, MO 64121-9909 |
John Hancock Signature Services, Inc.
430 W 7th Street Suite 219909 Kansas City, MO 64105-1407 |
| 68 | JOHN HANCOCK INCOME FUND | ANNUAL REPORT |
John Hancock family of funds
U.S. 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. Growth
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
FIXED-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 FUNDS
Absolute Return Currency
Alternative Asset Allocation
Diversified Macro
Infrastructure
Multi-Asset Absolute Return
Real Estate Securities
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 Investments at 800-225-5291, or visit our website at jhinvestments.com. Please read the prospectus carefully before investing or sending money.
ASSET ALLOCATION/TARGET DATE FUNDS
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 Corporate Bond ETF
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
GOVERNANCE FUNDS
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 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 Manulife Investment Management (US) LLC or Dimensional Fund Advisors LP. Foreside is not affiliated with John Hancock Investment Management Distributors LLC, Manulife
Investment Management (US) 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.
A trusted brand
John Hancock Investment Management
is a premier asset manager
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.
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.
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.
a diverse set of investments backed by some of the world’s best
managers, along with strong risk-adjusted returns across asset classes.
“A trusted brand” is
based on a survey of 6,651 respondents conducted by Medallia between 3/18/20 and 5/13/20.
John Hancock Investment Management
Distributors LLC, Member FINRA, SIPC
200 Berkeley Street, Boston, MA 02116-5010, 800-225-5291, jhinvestments.com
200 Berkeley Street, Boston, MA 02116-5010, 800-225-5291, jhinvestments.com
Manulife Investment Management, the
Stylized M Design, and Manulife Investment Management & Stylized M Design are trademarks of The Manufacturers Life Insurance Company and are used by its affiliates under license.
NOT FDIC INSURED. MAY LOSE VALUE. NO
BANK GUARANTEE. NOT INSURED BY ANY GOVERNMENT AGENCY.
This report is for the information
of the shareholders of John Hancock Income Fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by a prospectus.
| MF1674189 | 91A 5/21 |
7/2021
Annual report
John Hancock
Managed Account Shares
Fixed income
May 31, 2021
A message to shareholders
Dear shareholder,
While stocks rebounded from the
multiple challenges faced in 2020 to post gains for the 12 months ended May 31, 2021, the results for bonds were much more mixed. Overall, bond markets saw a sharp increase in yields and a steeper yield curve during
the period. The generally positive news flow pressured U.S. Treasuries by raising the prospect of inflation and causing investors to question whether the U.S. Federal Reserve would need to begin hiking interest rates
sooner than expected. The credit-oriented segments of the market—including investment-grade and high-yield corporate bonds—outperformed government issues. Both categories were helped by the improving
outlook for economic growth and corporate earnings, as well as investors’ elevated demand for yield.
In these uncertain times, your
financial professional can assist with positioning your portfolio so that it’s sufficiently diversified to help 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
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.
John Hancock
Managed Account Shares
Table of contents
| ANNUAL REPORT | JOHN HANCOCK MANAGED ACCOUNT SHARES | 1 |
Managed Account Shares Portfolios' strategy at a
glance
John Hancock Managed Account Shares
Investment-Grade Corporate Bond Portfolio
PERFORMANCE HIGHLIGHTS OVER THE
LAST TWELVE MONTHS
Investment-grade
corporate bonds gained ground
The recovery in
economic growth and corporate earnings fueled investors’ appetite for risk, causing corporate yield spreads to decline considerably over the course of the year.
The portfolio
outperformed its benchmark
An underweight
position in longer-term bonds helped cushion the effect of the steepening yield curve.
Security
selection was an additional contributor
Holdings in the
transportation segment, particularly airline-related debt, helped performance.
SECTOR COMPOSITION AS OF
5/31/2021 (% of net assets)
QUALITY COMPOSITION AS OF
5/31/2021 (% of net assets)
Ratings are from Moody’s
Investors Service, Inc. If not available, we have used Standard & Poor’s Ratings Services. In the absence of ratings from these agencies, we have used Fitch Ratings, Inc. “Not rated” securities
are those with no ratings available from these agencies. All ratings are as of 5-31-21 and do not reflect subsequent downgrades or upgrades, if any.
| 2 | JOHN HANCOCK MANAGED ACCOUNT SHARES | ANNUAL REPORT |
| COUNTRY COMPOSITION AS OF 5/31/2021 (% of net assets) | |
| United States | 83.4 |
| United Kingdom | 3.6 |
| Netherlands | 1.8 |
| Canada | 1.7 |
| Mexico | 1.4 |
| Bermuda | 1.2 |
| France | 1.1 |
| Other countries | 5.8 |
| TOTAL | 100.0 |
Notes about risk
The portfolio is subject to various
risks as described in the portfolio's prospectus. 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, which may lead to less liquidity in certain instruments, industries, sectors or the markets generally, and may ultimately affect portfolio's
performance. For more information, please refer to the “Principal risks” section of the prospectus.
| ANNUAL REPORT | JOHN HANCOCK MANAGED ACCOUNT SHARES | 3 |
John Hancock Managed Account Shares
Non-Investment-Grade Corporate Bond Portfolio
PERFORMANCE HIGHLIGHTS OVER THE
LAST TWELVE MONTHS
High-yield bonds
generated strong returns over the period
The asset class
was helped by the combination of improving economic growth and an impressive recovery in investors’ appetite for risk.
The portfolio
produced a robust return but underperformed its benchmark
Sector
allocations detracted from performance, primarily due to an underweight position in energy.
Security
selection was a net positive
The portfolio's
holdings in the communication services sector outperformed.
SECTOR COMPOSITION AS OF
5/31/2021 (% of net assets)
QUALITY COMPOSITION AS OF
5/31/2021 (% of net assets)
Ratings are from Moody’s
Investors Service, Inc. If not available, we have used Standard & Poor’s Ratings Services. In the absence of ratings from these agencies, we have used Fitch Ratings, Inc. “Not rated” securities
are those with no ratings available from these agencies. All ratings are as of 5-31-21 and do not reflect subsequent downgrades or upgrades, if any.
| 4 | JOHN HANCOCK MANAGED ACCOUNT SHARES | ANNUAL REPORT |
| COUNTRY COMPOSITION AS OF 5/31/2021 (% of net assets) | |
| United States | 74.9 |
| Ireland | 3.4 |
| Canada | 3.2 |
| Mexico | 2.8 |
| Luxembourg | 2.6 |
| Brazil | 2.5 |
| Netherlands | 2.0 |
| United Kingdom | 1.9 |
| Israel | 1.0 |
| United Arab Emirates | 1.0 |
| Other countries | 4.7 |
| TOTAL | 100.0 |
Notes about risk
The portfolio is subject to various
risks as described in the portfolio's prospectus. 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, which may lead to less liquidity in certain instruments, industries, sectors or the markets generally, and may ultimately affect portfolio's
performance. For more information, please refer to the “Principal risks” section of the prospectus.
| ANNUAL REPORT | JOHN HANCOCK MANAGED ACCOUNT SHARES | 5 |
John Hancock Managed Account Shares
Securitized Debt Portfolio
PERFORMANCE HIGHLIGHTS OVER THE
LAST TWELVE MONTHS
Securitized
assets produced mixed results
The
portfolio’s benchmark, the Bloomberg Barclays U.S. Securitized MBS ABS CMBS Index, finished slightly in the red.
Agency MBS
lagged
Agency MBS,
which make up the majority of the index, were hurt by the combination of rising U.S. Treasury yields and higher mortgage prepayments.
The portfolio
outperformed its benchmark
Overweights in
asset-backed securities and commercial MBS contributed to relative performance.
PORTFOLIO COMPOSITION AS OF
5/31/2021 (% of net assets)
QUALITY COMPOSITION AS OF
5/31/2021 (% of net assets)
Ratings are from Moody’s
Investors Service, Inc. If not available, we have used Standard & Poor’s Ratings Services. In the absence of ratings from these agencies, we have used Fitch Ratings, Inc. “Not rated” securities
are those with no ratings available from these agencies. All ratings are as of 5-31-21 and do not reflect subsequent downgrades or upgrades, if any.
Notes about risk
The portfolio is subject to various
risks as described in the portfolio's prospectus. 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, which may lead to less liquidity in certain instruments, industries, sectors or the markets generally, and may ultimately affect portfolio's
performance. For more information, please refer to the “Principal risks” section of the prospectus.
| 6 | JOHN HANCOCK MANAGED ACCOUNT SHARES | ANNUAL REPORT |
Manager’s discussion of portfolio
performance
Can you describe the investment
conditions during the 12 months ended May 31, 2021?
The credit-oriented segments of the
bond market delivered gains over the past year, providing a supportive backdrop for the portfolios. After the COVID-19-induced economic slowdown that occurred in the first quarter of 2020, growth slowly began to
recover as businesses and consumers adjusted to the new reality. The initial release of a vaccine in November 2020 set the stage for another upturn in growth, and investors started to anticipate a full reopening of
the economy in 2021. In addition to boosting the outlook for corporate earnings, these developments fueled a steady recovery in investors’ appetite for both risk and yield. High-yield bonds, which had suffered
the largest sell-off in early 2020, experienced the strongest rebound as the economy began to return to a normal footing. Investment-grade corporates also performed well, as did the market’s securitized sectors.
Notably, all three categories outpaced U.S. Treasuries.
How did each portfolio perform?
The Investment-Grade Corporate Bond
Portfolio strongly outperformed its benchmark, the Bloomberg Barclays U.S. Corporate Bond Index, for the period. The largest contribution came from the portfolio’s underweight position on the long end of the
yield curve, which helped it avoid the full impact of the poor performance for this area. Security selection was also a plus. The portfolio’s holdings outpaced the corresponding benchmark components by the
widest margin in the transportation segment, where investments in airline debt performed particularly well on expectations for a reopening of the economy. Selection in the information technology and consumer cyclical
industries added value, as well. Sector allocation was a small detractor, with the most notable effects coming from an overweight position in technology and a modest weighting in cash.
The Non-Investment-Grade Corporate
Bond Portfolio posted a strong absolute return for the period, but it didn't keep pace with its benchmark, the ICE BofA U.S. High Yield Index. Asset allocation had the largest adverse impact on relative performance.
The portfolio entered the period with an underweight in energy due to the extreme uncertainty regarding the economic outlook at that time, and we maintained this positioning for much of the period. Since energy was
one of the top-performing areas of the market during the past 12 months due to the optimism surrounding the world economy, this underweight was a key detractor. An overweight in the communication services sector,
which tends to be more defensive than the market as a whole, also hurt results. On the plus side, an overweight in banking issues helped performance. Yield curve positioning was an additional detractor, but security
selection contributed.
The Securitized Debt Portfolio
delivered a positive return and finished comfortably ahead of its benchmark, the Bloomberg Barclays U.S. Securitized MBS ABS CMBS Index. The majority of the benchmark is held in agency mortgage-backed securities
(MBS), which lagged the broader category due to rising mortgage prepayments and their higher sensitivity to the movements of U.S. Treasuries. In contrast, the portfolio was largely invested in asset-backed securities
and commercial MBS, both of which outpaced agency MBS by a wide margin. A position in nonagency MBS was an additional contributor, as was security selection. While few aspects of the portfolio's positioning stood out
as major detractors, yield curve positioning and selection in commercial MBS each took a small bite out of relative performance.
How would you characterize your
portfolio activity?
We steadily made small adjustments
to the Investment-Grade Corporate Bond Portfolio in an effort to capitalize on relative value opportunities as they emerged. Over the course of the full year, on average we made the largest additions to the
financials, energy, communication services, and information technology sectors. Although the portfolio held an average underweight in energy, as noted earlier, it closed the period with an overweight in the sector. On
the other end of the spectrum, on average the largest reductions occurred in the banking, transportation, and electric utilities segments. In terms of the yield curve and credit tiers, we generally emphasized the 5-
to 10-year bonds and BBB-rated debt, respectively.
Our activity in the
Non-Investment-Grade Corporate Bond Portfolio was primarily focused on rotating toward sectors with a higher degree of economic sensitivity. Along this line, on average the largest increases occurred in the consumer
cyclicals, basic industries, and transportation segments. On the other end of the spectrum, we reduced the portfolio’s allocations to banking, communications, and energy. The portfolio was tilted toward the
higher-quality end of the high-yield category.
| ANNUAL REPORT | JOHN HANCOCK MANAGED ACCOUNT SHARES | 7 |
We were quite active in adjusting
the positioning of the Securitized Debt Portfolio. We increased its allocation to asset-backed securities, which offered the combination of high average credit quality and attractive yields in relation to U.S.
Treasuries. We also added to its weighting in nonagency MBS, where we saw a compelling value. Conversely, we reduced its position in commercial MBS due to uncertainty in the commercial real estate market.
Despite the rapid steepening of the
yield curve in early 2021, we believe interest rates will remain low for an extended period. We think any inflationary pressure caused by faster growth should prove temporary, and we see various longer-term economic
trends that can help keep inflation controlled. We continue to focus on robust fundamental analysis to identify securities most likely to benefit in the current environment while avoiding those that appear vulnerable
to potential headwinds.
MANAGED BY
Howard C. Greene, CFA
Jeffrey N. Given, CFA
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 portfolios for the entire period. Portfolio composition is subject to review in accordance with each portfolio's investment strategy and may vary in the future.
Current and future portfolio holdings are subject to risk.
| 8 | JOHN HANCOCK MANAGED ACCOUNT SHARES | ANNUAL REPORT |
Managed Account Shares Investment-Grade Corporate
Bond Portfolio
GROWTH OF $10,000
This chart shows
what happened to a hypothetical $10,000 investment in John Hancock Managed Account Shares Investment-Grade Corporate Bond Portfolio for the periods indicated, assuming all distributions were reinvested. For
comparison, we’ve shown the same investment in the Bloomberg Barclays U.S. Corporate Bond Index.
The Bloomberg
Barclays U.S. Corporate Bond Index is an unmanaged Index comprises USD-denominated securities publicly issued by US and non-US industrial, utility and financial issuers.
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.
PERFORMANCE CHART
Total returns for the period ended
5-31-21 (%)
| Investment-Grade Corporate Bond Portfolio | Bloomberg Barclays U.S. Corporate Bond Index | |
| Inception | 7-9-19 | 7-9-19 |
| Average annual total returns | ||
| 1 year | 7.09 | 3.64 |
| Since inception | 5.71 | 5.79 |
| Cumulative returns | ||
| Since inception | 11.09 | 11.26 |
Performance
figures assume all distributions have been reinvested.
The expense
ratios of the portfolio, 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 portfolio 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, 2022 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:
| Gross (%) | 1.91 |
| Net (%) | 0.00 |
Please refer to
the most recent prospectus and annual or semiannual report for more information on expenses and any expense limitation arrangements for the portfolio.
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 portfolio’s current performance may be higher or lower than the performance shown.
The performance
information does not reflect the deduction of taxes that a shareholder would pay on portfolio distributions or the redemption of portfolio shares. The portfolio’s performance results reflect any applicable fee
waivers or expense reductions, without which the expenses would increase and results would have been less favorable.
| ANNUAL REPORT | JOHN HANCOCK MANAGED ACCOUNT SHARES | 9 |
Managed Account Shares Non-Investment-Grade
Corporate Bond Portfolio
GROWTH OF $10,000
This chart shows
what happened to a hypothetical $10,000 investment in John Hancock Managed Account Shares Non-Investment-Grade Corporate Bond Portfolio for the periods indicated, assuming all distributions were reinvested. For
comparison, we’ve shown the same investment in the ICE Bank of America U.S. High Yield Index.
The ICE Bank
of America U.S. High Yield Index tracks the performance of U.S. dollar denominated public corporate debt issued in the U.S. domestic market with par amounts greater than $100 million that are rated below investment
grade.
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.
PERFORMANCE CHART
Total returns for the period ended
5-31-21 (%)
| Non-Investment-Grade Corporate Bond Portfolio | ICE Bank of America U.S. High Yield Index | |
| Inception | 7-9-19 | 7-9-19 |
| Average annual total returns | ||
| 1 year | 14.69 | 15.18 |
| Since inception | 5.43 | 6.47 |
| Cumulative returns | ||
| Since inception | 10.54 | 12.62 |
Performance
figures assume all distributions have been reinvested.
The expense
ratios of the portfolio, 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 portfolio 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, 2022 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:
| Gross (%) | 1.98 |
| Net (%) | 0.00 |
Please refer to
the most recent prospectus and annual or semiannual report for more information on expenses and any expense limitation arrangements for the portfolio.
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 portfolio’s current performance may be higher or lower than the performance shown.
The performance
information does not reflect the deduction of taxes that a shareholder would pay on portfolio distributions or the redemption of portfolio shares. The portfolio’s performance results reflect any applicable fee
waivers or expense reductions, without which the expenses would increase and results would have been less favorable.
| 10 | JOHN HANCOCK MANAGED ACCOUNT SHARES | ANNUAL REPORT |
Managed Account Shares Securitized Debt
Portfolio
GROWTH OF $10,000
This chart shows
what happened to a hypothetical $10,000 investment in John Hancock Managed Account Shares Securitized Debt Portfolio for the periods indicated, assuming all distributions were reinvested. For comparison, we’ve
shown the same investment in the Bloomberg Barclays U.S. Securitized MBS ABS CMBS Index.
The Bloomberg
Barclays U.S. Securitized MBS ABS CMBS Index tracks agency mortgage-backed pass-through securities, asset-backed securities, and commercial mortgage-backed securities.
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.
PERFORMANCE CHART
Total returns for the period ended
5-31-21 (%)
| Securitized Debt Portfolio | Bloomberg Barclays U.S. Securitized MBS ABS CMBS Index | |
| Inception | 7-9-19 | 7-9-19 |
| Average annual total returns | ||
| 1 year | 5.02 | -0.13 |
| Since inception | 3.89 | 2.85 |
| Cumulative returns | ||
| Since inception | 7.51 | 5.48 |
Performance
figures assume all distributions have been reinvested.
The expense
ratios of the portfolio, 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 portfolio 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, 2022 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:
| Gross (%) | 1.90 |
| Net (%) | 0.00 |
Please refer to
the most recent prospectus and annual or semiannual report for more information on expenses and any expense limitation arrangements for the portfolio.
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 portfolio’s current performance may be higher or lower than the performance shown.
The performance
information does not reflect the deduction of taxes that a shareholder would pay on portfolio distributions or the redemption of portfolio shares. The portfolio’s performance results reflect any applicable fee
waivers or expense reductions, without which the expenses would increase and results would have been less favorable.
| ANNUAL REPORT | JOHN HANCOCK MANAGED ACCOUNT SHARES | 11 |
Your expenses
These examples are intended to help
you understand your ongoing costs (in dollars) of investing in a portfolio so you can compare these costs with the ongoing costs of investing in other mutual funds. The examples are based on an investment of $1,000 at
the beginning of the period and held for the entire period (December 1, 2020 through May 31, 2021).
Actual expenses/actual returns
The first line in the table on the
following page is intended to provide information about a portfolio’s actual ongoing operating expenses, and is based on the portfolio’s actual NAV return. It assumes an account value of $1,000.00 on
December 1, 2020, with the same investment held until May 31, 2021.
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, 2021, by $1,000.00, then multiply it by the “expenses
paid” 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 in the table on the
following page allows you to compare a portfolio’s ongoing operating expenses with those of any other portfolio. It provides an example of the portfolio’s hypothetical account values and hypothetical
expenses based on the portfolio’s actual expense ratio and an assumed 5% annualized return before expenses (which is not the portfolio’s actual return). It assumes an account value of $1,000.00 on December
1, 2020, with the same investment held until May 31, 2021. Look in any other portfolio 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.
Please note that the expenses shown
in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the second line of each share class in the table is useful in comparing ongoing costs only, and will
not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
SHAREHOLDER EXPENSE EXAMPLE
CHART
|
Account
value on 12-1-2020 |
Ending
value on 5-31-2021 |
Expenses
paid during period ended 5-31-20211 |
Annualized
expense ratio |
||
| Managed Account Shares Investment-Grade Corporate Bond Portfolio | |||||
| Actual expenses/actual returns | $1,000.00 | $995.60 | $0.00 | 0.00% | |
| Hypothetical example | 1,000.00 | 1,024.90 | 0.00 | 0.00% | |
| Managed Account Shares Non-Investment-Grade Corporate Bond Portfolio | |||||
| Actual expenses/actual returns | $1,000.00 | $1,035.20 | $0.00 | 0.00% | |
| Hypothetical example | 1,000.00 | 1,024.90 | 0.00 | 0.00% | |
| Managed Account Shares Securitized Debt Portfolio | |||||
| Actual expenses/actual returns | $1,000.00 | $1,010.00 | $0.00 | 0.00% | |
| Hypothetical example | 1,000.00 | 1,024.90 | 0.00 | 0.00% | |
| 1 | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). |
| 12 | JOHN HANCOCK MANAGED ACCOUNT SHARES | ANNUAL REPORT |
Portfolios' investments
MANAGED ACCOUNT SHARES
INVESTMENT-GRADE CORPORATE BOND PORTFOLIO
As of 5-31-21
| Rate (%) | Maturity date | Par value^ | Value | ||
| Foreign government obligations 1.0% | $231,003 | ||||
| (Cost $234,750) | |||||
| Saudi Arabia 1.0% | 231,003 | ||||
|
Kingdom of Saudi Arabia
Bond (A) |
4.375 | 04-16-29 | 200,000 | 231,003 | |
| Corporate bonds 95.0% | $23,221,729 | ||||
| (Cost $23,017,720) | |||||
| Communication services 7.5% | 1,840,418 | ||||
| Diversified telecommunication services 2.5% | |||||
| AT&T, Inc. | 2.300 | 06-01-27 | 110,000 | 113,905 | |
| AT&T, Inc. | 3.100 | 02-01-43 | 257,000 | 243,290 | |
| Level 3 Financing, Inc. (A) | 3.400 | 03-01-27 | 25,000 | 26,591 | |
| Telefonica Emisiones SA | 5.213 | 03-08-47 | 165,000 | 198,045 | |
| Verizon Communications, Inc. | 3.400 | 03-22-41 | 40,000 | 40,677 | |
| Media 3.1% | |||||
| Charter Communications Operating LLC | 4.200 | 03-15-28 | 61,000 | 68,192 | |
| Charter Communications Operating LLC | 4.800 | 03-01-50 | 225,000 | 246,942 | |
| Charter Communications Operating LLC | 5.750 | 04-01-48 | 129,000 | 157,641 | |
| Charter Communications Operating LLC | 6.484 | 10-23-45 | 195,000 | 256,599 | |
| Cox Communications, Inc. (A) | 1.800 | 10-01-30 | 34,000 | 31,922 | |
| Wireless telecommunication services 1.9% | |||||
| T-Mobile USA, Inc. | 2.050 | 02-15-28 | 50,000 | 49,772 | |
| T-Mobile USA, Inc. | 3.300 | 02-15-51 | 85,000 | 79,977 | |
| T-Mobile USA, Inc. | 3.750 | 04-15-27 | 36,000 | 39,575 | |
| T-Mobile USA, Inc. | 3.875 | 04-15-30 | 195,000 | 213,732 | |
| T-Mobile USA, Inc. | 4.500 | 04-15-50 | 65,000 | 73,558 | |
| Consumer discretionary 9.6% | 2,339,332 | ||||
| Automobiles 1.1% | |||||
| General Motors Financial Company, Inc. | 3.600 | 06-21-30 | 193,000 | 206,725 | |
| Hyundai Capital America (A) | 1.800 | 10-15-25 | 25,000 | 25,308 | |
| Hyundai Capital America (A) | 2.375 | 10-15-27 | 25,000 | 25,454 | |
| Hotels, restaurants and leisure 6.9% | |||||
| Booking Holdings, Inc. | 4.625 | 04-13-30 | 196,000 | 229,038 | |
| Choice Hotels International, Inc. | 3.700 | 12-01-29 | 50,000 | 53,693 | |
| Choice Hotels International, Inc. | 3.700 | 01-15-31 | 75,000 | 79,943 | |
| Expedia Group, Inc. (A) | 2.950 | 03-15-31 | 66,000 | 65,851 | |
| Expedia Group, Inc. | 3.250 | 02-15-30 | 85,000 | 87,031 | |
| Expedia Group, Inc. | 3.800 | 02-15-28 | 140,000 | 150,835 | |
| Expedia Group, Inc. (A) | 4.625 | 08-01-27 | 92,000 | 104,146 | |
| Expedia Group, Inc. | 5.000 | 02-15-26 | 116,000 | 132,157 | |
| Genting New York LLC (A) | 3.300 | 02-15-26 | 200,000 | 200,106 | |
| Hyatt Hotels Corp. | 4.375 | 09-15-28 | 22,000 | 23,993 | |
| Hyatt Hotels Corp. | 5.750 | 04-23-30 | 56,000 | 66,601 | |
| Marriott International, Inc. | 2.850 | 04-15-31 | 110,000 | 109,685 | |
| Marriott International, Inc. | 3.500 | 10-15-32 | 34,000 | 35,472 | |
| Marriott International, Inc. | 4.650 | 12-01-28 | 135,000 | 151,914 | |
| Resorts World Las Vegas LLC (A) | 4.625 | 04-16-29 | 200,000 | 204,792 | |
| Internet and direct marketing retail 1.3% | |||||
| eBay, Inc. | 2.700 | 03-11-30 | 90,000 | 92,170 | |
| Prosus NV (A) | 4.850 | 07-06-27 | 200,000 | 226,976 | |
| Multiline retail 0.2% | |||||
| Dollar General Corp. | 3.500 | 04-03-30 | 35,000 | 38,028 | |
| Specialty retail 0.1% | |||||
| AutoNation, Inc. | 4.750 | 06-01-30 | 25,000 | 29,414 | |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK MANAGED ACCOUNT SHARES | 13 |
| Rate (%) | Maturity date | Par value^ | Value | ||
| Consumer staples 1.6% | $391,829 | ||||
| Beverages 1.0% | |||||
| Anheuser-Busch InBev Worldwide, Inc. | 4.600 | 04-15-48 | 149,000 | 172,577 | |
| Constellation Brands, Inc. | 3.150 | 08-01-29 | 35,000 | 37,058 | |
| Keurig Dr. Pepper, Inc. | 3.200 | 05-01-30 | 30,000 | 31,896 | |
| Food and staples retailing 0.3% | |||||
| 7-Eleven, Inc. (A) | 2.800 | 02-10-51 | 65,000 | 58,103 | |
| The Kroger Company | 2.200 | 05-01-30 | 25,000 | 24,806 | |
| Food products 0.1% | |||||
| Cargill, Inc. (A) | 2.125 | 04-23-30 | 20,000 | 19,877 | |
| Household products 0.2% | |||||
| The Clorox Company | 1.800 | 05-15-30 | 49,000 | 47,512 | |
| Energy 9.9% | 2,410,669 | ||||
| Oil, gas and consumable fuels 9.9% | |||||
| Aker BP ASA (A) | 4.000 | 01-15-31 | 150,000 | 161,531 | |
| Diamondback Energy, Inc. | 3.125 | 03-24-31 | 69,000 | 70,585 | |
| Enbridge, Inc. (5.500% to 7-15-27, then 3 month LIBOR + 3.418%) | 5.500 | 07-15-77 | 60,000 | 62,682 | |
| Enbridge, Inc. (5.750% to 4-15-30, then 5 Year CMT + 5.314%) | 5.750 | 07-15-80 | 154,000 | 169,015 | |
| Enbridge, Inc. (6.250% to 3-1-28, then 3 month LIBOR + 3.641%) | 6.250 | 03-01-78 | 80,000 | 86,904 | |
| Energy Transfer LP | 3.900 | 07-15-26 | 28,000 | 30,613 | |
| Energy Transfer LP | 5.150 | 03-15-45 | 168,000 | 184,350 | |
| Energy Transfer LP | 5.250 | 04-15-29 | 234,000 | 272,588 | |
| Energy Transfer LP | 5.400 | 10-01-47 | 60,000 | 68,086 | |
| Energy Transfer LP | 5.500 | 06-01-27 | 93,000 | 108,859 | |
| Enterprise Products Operating LLC (5.250% to 8-16-27, then 3 month LIBOR + 3.033%) | 5.250 | 08-16-77 | 239,000 | 245,570 | |
| Kinder Morgan Energy Partners LP | 7.750 | 03-15-32 | 22,000 | 30,654 | |
| Kinder Morgan, Inc. | 4.300 | 03-01-28 | 51,000 | 57,676 | |
| Midwest Connector Capital Company LLC (A) | 3.900 | 04-01-24 | 70,000 | 73,000 | |
| MPLX LP | 4.000 | 03-15-28 | 35,000 | 38,795 | |
| MPLX LP | 4.125 | 03-01-27 | 12,000 | 13,445 | |
| MPLX LP | 4.250 | 12-01-27 | 50,000 | 56,601 | |
| Sabine Pass Liquefaction LLC | 4.200 | 03-15-28 | 105,000 | 117,125 | |
| Sabine Pass Liquefaction LLC | 5.000 | 03-15-27 | 75,000 | 86,863 | |
| Sabine Pass Liquefaction LLC | 5.875 | 06-30-26 | 124,000 | 147,111 | |
| The Williams Companies, Inc. | 3.750 | 06-15-27 | 249,000 | 276,181 | |
| TransCanada PipeLines, Ltd. | 4.250 | 05-15-28 | 46,000 | 52,435 | |
| Financials 18.8% | 4,599,825 | ||||
| Banks 7.4% | |||||
| Bank of America Corp. (4.271% to 7-23-28, then 3 month LIBOR + 1.310%) | 4.271 | 07-23-29 | 100,000 | 114,055 | |
| Bank of America Corp. (6.300% to 3-10-26, then 3 month LIBOR + 4.553%) (B) | 6.300 | 03-10-26 | 50,000 | 58,015 | |
| Barclays PLC | 4.375 | 01-12-26 | 200,000 | 225,156 | |
| Citigroup, Inc. (2.561% to 5-1-31, then SOFR + 1.167%) | 2.561 | 05-01-32 | 123,000 | 123,294 | |
| Citizens Financial Group, Inc. | 3.250 | 04-30-30 | 115,000 | 123,469 | |
| Credit Agricole SA (A) | 3.250 | 01-14-30 | 250,000 | 259,978 | |
| JPMorgan Chase & Co. (4.600% to 2-1-25, then SOFR + 3.125%) (B) | 4.600 | 02-01-25 | 75,000 | 76,500 | |
| JPMorgan Chase & Co. (6.750% to 2-1-24, then 3 month LIBOR + 3.780%) (B) | 6.750 | 02-01-24 | 135,000 | 148,399 | |
| NatWest Group PLC (3.754% to 11-1-24, then 5 Year CMT + 2.100%) | 3.754 | 11-01-29 | 200,000 | 213,410 | |
| Santander Holdings USA, Inc. | 3.244 | 10-05-26 | 105,000 | 112,159 | |
| The PNC Financial Services Group, Inc. (4.850% to 6-1-23, then 3 month LIBOR + 3.040%) (B) | 4.850 | 06-01-23 | 43,000 | 45,043 | |
| The PNC Financial Services Group, Inc. (6.750% to 8-1-21, then 3 month LIBOR + 3.678%) (B) | 6.750 | 08-01-21 | 58,000 | 58,435 | |
| Wells Fargo & Company (5.875% to 6-15-25, then 3 month LIBOR + 3.990%) (B) | 5.875 | 06-15-25 | 226,000 | 251,425 | |
| Capital markets 3.4% | |||||
| Ares Capital Corp. | 2.150 | 07-15-26 | 227,000 | 225,775 | |
| Ares Capital Corp. | 3.875 | 01-15-26 | 45,000 | 48,188 | |
| Ares Capital Corp. | 4.200 | 06-10-24 | 34,000 | 36,627 | |
| Lazard Group LLC | 4.375 | 03-11-29 | 27,000 | 30,369 | |
| 14 | JOHN HANCOCK MANAGED ACCOUNT SHARES | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
| Rate (%) | Maturity date | Par value^ | Value | ||
| Financials (continued) | |||||
| Capital markets (continued) | |||||
| Macquarie Bank, Ltd. (A) | 3.624 | 06-03-30 | 200,000 | $208,057 | |
| Oaktree Specialty Lending Corp. | 2.700 | 01-15-27 | 186,000 | 186,942 | |
| The Goldman Sachs Group, Inc. | 3.850 | 01-26-27 | 83,000 | 92,033 | |
| Consumer finance 0.3% | |||||
| Discover Financial Services | 4.100 | 02-09-27 | 80,000 | 89,804 | |
| Diversified financial services 2.0% | |||||
| GE Capital International Funding Company | 4.418 | 11-15-35 | 35,000 | 40,689 | |
| Jefferies Group LLC | 4.150 | 01-23-30 | 155,000 | 171,496 | |
| Jefferies Group LLC | 4.850 | 01-15-27 | 77,000 | 89,680 | |
| Voya Financial, Inc. (5.650% to 5-15-23, then 3 month LIBOR + 3.580%) | 5.650 | 05-15-53 | 170,000 | 180,574 | |
| Insurance 5.7% | |||||
| Ascot Group, Ltd. (A) | 4.250 | 12-15-30 | 50,000 | 52,734 | |
| Athene Holding, Ltd. | 3.500 | 01-15-31 | 218,000 | 229,497 | |
| Brighthouse Financial, Inc. | 3.700 | 06-22-27 | 57,000 | 62,354 | |
| CNO Financial Group, Inc. | 5.250 | 05-30-29 | 130,000 | 152,291 | |
| MetLife, Inc. (6.400% to 12-15-36, then 3 month LIBOR + 2.205%) | 6.400 | 12-15-36 | 34,000 | 43,390 | |
| New York Life Insurance Company (A) | 3.750 | 05-15-50 | 24,000 | 25,584 | |
| Nippon Life Insurance Company (2.750% to 1-21-31, then 5 Year CMT + 2.653%) (A) | 2.750 | 01-21-51 | 235,000 | 227,363 | |
| Prudential Financial, Inc. (3.700% to 7-1-30, then 5 Year CMT + 3.035%) | 3.700 | 10-01-50 | 320,000 | 332,000 | |
| Prudential Financial, Inc. (5.875% to 9-15-22, then 3 month LIBOR + 4.175%) | 5.875 | 09-15-42 | 69,000 | 72,750 | |
| SBL Holdings, Inc. (A) | 5.000 | 02-18-31 | 105,000 | 113,219 | |
| Teachers Insurance & Annuity Association of America (A) | 4.270 | 05-15-47 | 69,000 | 79,071 | |
| Health care 7.5% | 1,836,838 | ||||
| Biotechnology 1.2% | |||||
| AbbVie, Inc. | 3.200 | 11-21-29 | 253,000 | 271,368 | |
| AbbVie, Inc. | 4.250 | 11-21-49 | 23,000 | 26,489 | |
| Health care providers and services 5.5% | |||||
| AmerisourceBergen Corp. | 2.800 | 05-15-30 | 113,000 | 117,032 | |
| AmerisourceBergen Corp. | 3.450 | 12-15-27 | 53,000 | 58,180 | |
| Cottage Health Obligated Group | 3.304 | 11-01-49 | 62,000 | 64,679 | |
| CVS Health Corp. | 2.700 | 08-21-40 | 60,000 | 55,973 | |
| CVS Health Corp. | 3.750 | 04-01-30 | 117,000 | 129,609 | |
| CVS Health Corp. | 4.300 | 03-25-28 | 85,000 | 97,400 | |
| CVS Health Corp. | 5.050 | 03-25-48 | 138,000 | 170,330 | |
| Fresenius Medical Care US Finance III, Inc. (A) | 2.375 | 02-16-31 | 225,000 | 216,433 | |
| Fresenius Medical Care US Finance III, Inc. (A) | 3.750 | 06-15-29 | 160,000 | 171,096 | |
| HCA, Inc. | 4.125 | 06-15-29 | 107,000 | 119,792 | |
| Universal Health Services, Inc. (A) | 2.650 | 10-15-30 | 144,000 | 142,324 | |
| Pharmaceuticals 0.8% | |||||
| Royalty Pharma PLC (A) | 1.750 | 09-02-27 | 25,000 | 24,762 | |
| Viatris, Inc. (A) | 2.700 | 06-22-30 | 55,000 | 54,848 | |
| Viatris, Inc. (A) | 4.000 | 06-22-50 | 115,000 | 116,523 | |
| Industrials 9.9% | 2,422,996 | ||||
| Aerospace and defense 3.7% | |||||
| BAE Systems PLC (A) | 1.900 | 02-15-31 | 200,000 | 189,503 | |
| DAE Funding LLC (A) | 3.375 | 03-20-28 | 200,000 | 200,820 | |
| Huntington Ingalls Industries, Inc. | 4.200 | 05-01-30 | 76,000 | 86,043 | |
| The Boeing Company | 3.200 | 03-01-29 | 250,000 | 259,580 | |
| The Boeing Company | 5.040 | 05-01-27 | 100,000 | 115,282 | |
| The Boeing Company | 5.805 | 05-01-50 | 36,000 | 46,301 | |
| Airlines 3.1% | |||||
| American Airlines 2017-1 Class AA Pass Through Trust | 3.650 | 02-15-29 | 118,335 | 120,998 | |
| American Airlines 2017-2 Class A Pass Through Trust | 3.600 | 10-15-29 | 36,856 | 34,368 | |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK MANAGED ACCOUNT SHARES | 15 |
| Rate (%) | Maturity date | Par value^ | Value | ||
| Industrials (continued) | |||||
| Airlines (continued) | |||||
| American Airlines 2019-1 Class A Pass Through Trust | 3.500 | 02-15-32 | 19,863 | $18,572 | |
| American Airlines 2019-1 Class AA Pass Through Trust | 3.150 | 02-15-32 | 30,268 | 30,268 | |
| British Airways 2020-1 Class A Pass Through Trust (A) | 4.250 | 11-15-32 | 23,707 | 25,283 | |
| JetBlue 2019-1 Class AA Pass Through Trust | 2.750 | 05-15-32 | 32,866 | 33,143 | |
| United Airlines 2014-2 Class A Pass Through Trust | 3.750 | 09-03-26 | 101,496 | 107,224 | |
| United Airlines 2016-1 Class A Pass Through Trust | 3.450 | 07-07-28 | 121,483 | 124,935 | |
| United Airlines 2020-1 Class A Pass Through Trust | 5.875 | 10-15-27 | 173,200 | 190,553 | |
| United Airlines 2020-1 Class B Pass Through Trust | 4.875 | 01-15-26 | 48,525 | 51,037 | |
| US Airways 2010-1 Class A Pass Through Trust | 6.250 | 04-22-23 | 17,720 | 17,986 | |
| Building products 0.2% | |||||
| Masco Corp. | 2.000 | 10-01-30 | 40,000 | 38,486 | |
| Owens Corning | 3.950 | 08-15-29 | 18,000 | 20,084 | |
| Industrial conglomerates 0.8% | |||||
| General Electric Company | 4.250 | 05-01-40 | 166,000 | 187,627 | |
| Professional services 0.2% | |||||
| CoStar Group, Inc. (A) | 2.800 | 07-15-30 | 56,000 | 55,780 | |
| Road and rail 0.1% | |||||
| Canadian Pacific Railway Company | 2.050 | 03-05-30 | 33,000 | 32,346 | |
| Trading companies and distributors 1.8% | |||||
| AerCap Ireland Capital DAC | 3.650 | 07-21-27 | 150,000 | 159,385 | |
| Air Lease Corp. | 2.875 | 01-15-26 | 40,000 | 41,919 | |
| Air Lease Corp. | 3.625 | 12-01-27 | 20,000 | 21,223 | |
| Ashtead Capital, Inc. (A) | 4.250 | 11-01-29 | 200,000 | 214,250 | |
| Information technology 16.8% | 4,113,007 | ||||
| Communications equipment 1.3% | |||||
| Motorola Solutions, Inc. | 2.300 | 11-15-30 | 65,000 | 62,889 | |
| Motorola Solutions, Inc. | 2.750 | 05-24-31 | 117,000 | 116,749 | |
| Motorola Solutions, Inc. | 4.600 | 02-23-28 | 117,000 | 134,075 | |
| IT services 0.5% | |||||
| PayPal Holdings, Inc. | 2.850 | 10-01-29 | 101,000 | 107,137 | |
| Visa, Inc. | 2.700 | 04-15-40 | 25,000 | 24,875 | |
| Semiconductors and semiconductor equipment 9.4% | |||||
| Broadcom, Inc. (A) | 3.419 | 04-15-33 | 375,000 | 382,429 | |
| Broadcom, Inc. | 4.750 | 04-15-29 | 441,000 | 504,403 | |
| Broadcom, Inc. | 5.000 | 04-15-30 | 188,000 | 216,999 | |
| KLA Corp. | 4.100 | 03-15-29 | 43,000 | 48,885 | |
| Lam Research Corp. | 4.000 | 03-15-29 | 115,000 | 131,430 | |
| Lam Research Corp. | 4.875 | 03-15-49 | 31,000 | 40,149 | |
| Marvell Technology, Inc. (A) | 2.450 | 04-15-28 | 85,000 | 85,551 | |
| Marvell Technology, Inc. (A) | 4.875 | 06-22-28 | 46,000 | 52,634 | |
| Micron Technology, Inc. | 4.185 | 02-15-27 | 280,000 | 316,141 | |
| Micron Technology, Inc. | 5.327 | 02-06-29 | 222,000 | 264,689 | |
| NVIDIA Corp. | 2.850 | 04-01-30 | 53,000 | 56,422 | |
| NXP BV (A) | 3.400 | 05-01-30 | 60,000 | 64,600 | |
| NXP BV (A) | 3.875 | 06-18-26 | 124,000 | 137,802 | |
| Software 2.7% | |||||
| Autodesk, Inc. | 2.850 | 01-15-30 | 20,000 | 20,843 | |
| Microsoft Corp. | 2.525 | 06-01-50 | 281,000 | 261,630 | |
| Oracle Corp. | 2.950 | 04-01-30 | 132,000 | 137,431 | |
| VMware, Inc. | 4.700 | 05-15-30 | 195,000 | 226,443 | |
| Technology hardware, storage and peripherals 2.9% | |||||
| Apple, Inc. | 2.650 | 02-08-51 | 210,000 | 196,156 | |
| Dell International LLC (A) | 4.900 | 10-01-26 | 100,000 | 114,804 | |
| Dell International LLC (A) | 5.300 | 10-01-29 | 253,000 | 299,544 | |
| 16 | JOHN HANCOCK MANAGED ACCOUNT SHARES | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK MANAGED ACCOUNT SHARES | 17 |
| Rate (%) | Maturity date | Par value^ | Value | ||
| Maryland Health & Higher Educational Facilities Authority | 3.197 | 07-01-50 | 125,000 | $124,056 | |
| New Jersey Transportation Trust Fund Authority | 4.081 | 06-15-39 | 60,000 | 65,817 | |
| Ohio Turnpike & Infrastructure Commission | 3.216 | 02-15-48 | 30,000 | 30,216 | |
| Regents of the University of California Medical Center Pooled Revenue | 3.006 | 05-15-50 | 140,000 | 137,259 | |
| Shares | Value | ||||
| Common stocks 0.0% | $4,975 | ||||
| (Cost $5,199) | |||||
| Utilities 0.0% | 4,975 | ||||
| Multi-utilities 0.0% | |||||
| Dominion Energy, Inc. | 50 | 4,975 | |||
| Preferred securities 0.0% | $3,267 | ||||
| (Cost $3,200) | |||||
| Utilities 0.0% | 3,267 | ||||
| Multi-utilities 0.0% | |||||
| DTE Energy Company, 6.250% | 64 | 3,267 | |||
| Total investments (Cost $23,654,107) 97.6% | $23,849,568 | ||||
| Other assets and liabilities, net 2.4% | 589,858 | ||||
| Total net assets 100.0% | $24,439,426 | ||||
MANAGED ACCOUNT SHARES
NON-INVESTMENT-GRADE CORPORATE BOND PORTFOLIO
As of 5-31-21
| Rate (%) | Maturity date | Par value^ | Value | ||
| Foreign government obligations 0.6% | $126,171 | ||||
| (Cost $121,626) | |||||
| Argentina 0.6% | 126,171 | ||||
|
Republic of Argentina
Bond (0.125% to 7-9-21, then 2.500% to 7-9-22, then 3.500% to 7-9-29, then 4.875% thereafter) |
0.125 | 07-09-41 | 340,000 | 126,171 | |
| Corporate bonds 94.7% | $21,891,291 | ||||
| (Cost $21,540,567) | |||||
| Communication services 19.0% | 4,396,562 | ||||
| Diversified telecommunication services 5.2% | |||||
| C&W Senior Financing DAC (A) | 6.875 | 09-15-27 | 200,000 | 213,000 | |
| Cincinnati Bell, Inc. (A) | 7.000 | 07-15-24 | 103,000 | 106,090 | |
| Connect Finco SARL (A) | 6.750 | 10-01-26 | 90,000 | 93,038 | |
| GCI LLC (A) | 4.750 | 10-15-28 | 55,000 | 56,100 | |
| Kenbourne Invest SA (A) | 4.700 | 01-22-28 | 200,000 | 201,500 | |
| Radiate Holdco LLC (A) | 6.500 | 09-15-28 | 92,000 | 94,530 | |
| Switch, Ltd. (A) | 3.750 | 09-15-28 | 14,000 | 13,898 | |
| Telecom Argentina SA (A) | 6.500 | 06-15-21 | 8,000 | 7,940 | |
| Telecom Argentina SA (A) | 8.000 | 07-18-26 | 46,000 | 41,975 | |
| Telecom Italia Capital SA | 7.200 | 07-18-36 | 106,000 | 131,341 | |
| Telesat Canada (A) | 5.625 | 12-06-26 | 46,000 | 45,881 | |
| Total Play Telecomunicaciones SA de CV (A) | 7.500 | 11-12-25 | 200,000 | 204,250 | |
| 18 | JOHN HANCOCK MANAGED ACCOUNT SHARES | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
| Rate (%) | Maturity date | Par value^ | Value | ||
| Communication services (continued) | |||||
| Entertainment 3.1% | |||||
| Lions Gate Capital Holdings LLC (A) | 5.500 | 04-15-29 | 100,000 | $103,574 | |
| Live Nation Entertainment, Inc. (A) | 4.750 | 10-15-27 | 113,000 | 115,404 | |
| Netflix, Inc. | 4.875 | 04-15-28 | 221,000 | 254,238 | |
| Netflix, Inc. (A) | 4.875 | 06-15-30 | 48,000 | 55,320 | |
| Netflix, Inc. (A) | 5.375 | 11-15-29 | 20,000 | 23,649 | |
| Netflix, Inc. | 5.875 | 11-15-28 | 125,000 | 151,250 | |
| Playtika Holding Corp. (A) | 4.250 | 03-15-29 | 15,000 | 14,775 | |
| Interactive media and services 0.7% | |||||
| ANGI Group LLC (A) | 3.875 | 08-15-28 | 52,000 | 51,090 | |
| Match Group Holdings II LLC (A) | 4.125 | 08-01-30 | 43,000 | 42,770 | |
| Twitter, Inc. (A) | 3.875 | 12-15-27 | 50,000 | 52,750 | |
| Media 6.0% | |||||
| Cable One, Inc. (A) | 4.000 | 11-15-30 | 48,000 | 47,400 | |
| CCO Holdings LLC (A) | 4.500 | 06-01-33 | 64,000 | 63,859 | |
| Charter Communications Operating LLC (B) | 3.900 | 06-01-52 | 84,000 | 80,528 | |
| Clear Channel Outdoor Holdings, Inc. (A) | 7.750 | 04-15-28 | 20,000 | 20,489 | |
| CSC Holdings LLC | 5.875 | 09-15-22 | 61,000 | 63,898 | |
| Globo Comunicacao e Participacoes SA (A) | 4.875 | 01-22-30 | 200,000 | 203,400 | |
| LCPR Senior Secured Financing DAC (A) | 6.750 | 10-15-27 | 200,000 | 214,780 | |
| MDC Partners, Inc. (A) | 7.500 | 05-01-24 | 120,000 | 122,100 | |
| Meredith Corp. | 6.875 | 02-01-26 | 63,000 | 65,802 | |
| News Corp. (A) | 3.875 | 05-15-29 | 55,000 | 55,481 | |
| Sirius XM Radio, Inc. (A) | 5.000 | 08-01-27 | 87,000 | 90,915 | |
| Townsquare Media, Inc. (A) | 6.875 | 02-01-26 | 40,000 | 42,250 | |
| Univision Communications, Inc. (A) | 4.500 | 05-01-29 | 200,000 | 202,404 | |
| WMG Acquisition Corp. (A) | 3.000 | 02-15-31 | 125,000 | 117,969 | |
| Wireless telecommunication services 4.0% | |||||
| Oztel Holdings SPC, Ltd. (A) | 6.625 | 04-24-28 | 200,000 | 223,493 | |
| SoftBank Group Corp. (6.875% to 7-19-27, then 5 Year ICE Swap Rate + 4.854%) (C) | 6.875 | 07-19-27 | 200,000 | 210,850 | |
| Sprint Corp. | 7.875 | 09-15-23 | 82,000 | 92,915 | |
| T-Mobile USA, Inc. | 2.875 | 02-15-31 | 112,000 | 108,006 | |
| T-Mobile USA, Inc. | 3.375 | 04-15-29 | 125,000 | 127,201 | |
| Vodafone Group PLC (7.000% to 1-4-29, then 5 Year U.S. Swap Rate + 4.873%) | 7.000 | 04-04-79 | 140,000 | 168,459 | |
| Consumer discretionary 14.0% | 3,241,052 | ||||
| Auto components 0.3% | |||||
| Dealer Tire LLC (A) | 8.000 | 02-01-28 | 39,000 | 41,194 | |
| LCM Investments Holdings II LLC (A) | 4.875 | 05-01-29 | 21,000 | 21,566 | |
| Automobiles 3.7% | |||||
| Ford Motor Credit Company LLC | 4.000 | 11-13-30 | 200,000 | 203,988 | |
| Ford Motor Credit Company LLC | 4.125 | 08-17-27 | 200,000 | 209,000 | |
| Ford Motor Credit Company LLC | 4.134 | 08-04-25 | 200,000 | 211,979 | |
| Ford Motor Credit Company LLC | 5.113 | 05-03-29 | 200,000 | 219,294 | |
| Diversified consumer services 1.4% | |||||
| Laureate Education, Inc. (A) | 8.250 | 05-01-25 | 17,000 | 17,700 | |
| Service Corp. International | 3.375 | 08-15-30 | 28,000 | 27,193 | |
| Service Corp. International | 4.000 | 05-15-31 | 88,000 | 89,602 | |
| Sotheby's (A) | 7.375 | 10-15-27 | 75,000 | 80,250 | |
| StoneMor, Inc. (A) | 8.500 | 05-15-29 | 120,000 | 118,411 | |
| Hotels, restaurants and leisure 5.9% | |||||
| Affinity Gaming (A) | 6.875 | 12-15-27 | 35,000 | 37,177 | |
| Bally's Corp. (A) | 6.750 | 06-01-27 | 123,000 | 130,802 | |
| Caesars Resort Collection LLC (A) | 5.750 | 07-01-25 | 25,000 | 26,219 | |
| CCM Merger, Inc. (A) | 6.375 | 05-01-26 | 26,000 | 27,378 | |
| Dave & Buster's, Inc. (A) | 7.625 | 11-01-25 | 10,000 | 10,650 | |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK MANAGED ACCOUNT SHARES | 19 |
| Rate (%) | Maturity date | Par value^ | Value | ||
| Consumer discretionary (continued) | |||||
| Hotels, restaurants and leisure (continued) | |||||
| Hilton Domestic Operating Company, Inc. (A) | 3.625 | 02-15-32 | 55,000 | $53,822 | |
| Hilton Domestic Operating Company, Inc. (A) | 4.000 | 05-01-31 | 70,000 | 70,594 | |
| Hilton Domestic Operating Company, Inc. | 4.875 | 01-15-30 | 83,000 | 88,320 | |
| Hilton Domestic Operating Company, Inc. (A) | 5.750 | 05-01-28 | 15,000 | 16,144 | |
| International Game Technology PLC (A) | 6.500 | 02-15-25 | 75,000 | 83,090 | |
| Jacobs Entertainment, Inc. (A) | 7.875 | 02-01-24 | 64,000 | 66,800 | |
| Life Time, Inc. (A) | 8.000 | 04-15-26 | 45,000 | 47,475 | |
| MGM Resorts International | 4.750 | 10-15-28 | 125,000 | 131,875 | |
| Midwest Gaming Borrower LLC (A) | 4.875 | 05-01-29 | 72,000 | 72,119 | |
| Mohegan Gaming & Entertainment (A) | 8.000 | 02-01-26 | 83,000 | 84,868 | |
| New Red Finance, Inc. (A) | 4.000 | 10-15-30 | 171,000 | 165,656 | |
| Travel + Leisure Company (A) | 4.625 | 03-01-30 | 33,000 | 33,990 | |
| Travel + Leisure Company | 6.600 | 10-01-25 | 29,000 | 32,661 | |
| Wyndham Hotels & Resorts, Inc. (A) | 4.375 | 08-15-28 | 40,000 | 40,900 | |
| Yum! Brands, Inc. | 3.625 | 03-15-31 | 50,000 | 49,375 | |
| Yum! Brands, Inc. (A) | 4.750 | 01-15-30 | 92,000 | 98,396 | |
| Household durables 1.2% | |||||
| Brookfield Residential Properties, Inc. (A) | 5.000 | 06-15-29 | 56,000 | 56,140 | |
| Century Communities, Inc. | 6.750 | 06-01-27 | 57,000 | 61,332 | |
| Empire Communities Corp. (A) | 7.000 | 12-15-25 | 10,000 | 10,563 | |
| KB Home (B) | 4.000 | 06-15-31 | 91,000 | 91,000 | |
| MDC Holdings, Inc. | 2.500 | 01-15-31 | 50,000 | 48,532 | |
| Toll Brothers Finance Corp. | 3.800 | 11-01-29 | 20,000 | 21,300 | |
| Internet and direct marketing retail 0.6% | |||||
| QVC, Inc. | 4.375 | 03-15-23 | 75,000 | 78,716 | |
| QVC, Inc. | 5.450 | 08-15-34 | 60,000 | 60,900 | |
| Multiline retail 0.2% | |||||
| Macy's Retail Holdings LLC (A) | 5.875 | 04-01-29 | 17,000 | 18,108 | |
| Macy's, Inc. (A) | 8.375 | 06-15-25 | 20,000 | 22,100 | |
| Specialty retail 0.4% | |||||
| Asbury Automotive Group, Inc. | 4.750 | 03-01-30 | 50,000 | 52,250 | |
| Group 1 Automotive, Inc. (A) | 4.000 | 08-15-28 | 10,000 | 10,063 | |
| Ken Garff Automotive LLC (A) | 4.875 | 09-15-28 | 30,000 | 29,850 | |
| Specialty Building Products Holdings LLC (A) | 6.375 | 09-30-26 | 7,000 | 7,280 | |
| Textiles, apparel and luxury goods 0.3% | |||||
| Hanesbrands, Inc. (A) | 5.375 | 05-15-25 | 48,000 | 50,644 | |
| Levi Strauss & Company (A) | 3.500 | 03-01-31 | 14,000 | 13,786 | |
| Consumer staples 6.6% | 1,533,849 | ||||
| Food and staples retailing 1.9% | |||||
| Advantage Sales & Marketing, Inc. (A) | 6.500 | 11-15-28 | 180,000 | 190,800 | |
| Albertsons Companies, Inc. (A) | 3.250 | 03-15-26 | 25,000 | 25,156 | |
| Albertsons Companies, Inc. (A) | 3.500 | 03-15-29 | 101,000 | 96,859 | |
| Albertsons Companies, Inc. (A) | 4.875 | 02-15-30 | 47,000 | 48,983 | |
| U.S. Foods, Inc. (A) | 4.750 | 02-15-29 | 79,000 | 78,803 | |
| Food products 3.1% | |||||
| BRF SA (A) | 5.750 | 09-21-50 | 200,000 | 199,476 | |
| Kraft Heinz Foods Company | 4.375 | 06-01-46 | 125,000 | 134,043 | |
| Kraft Heinz Foods Company | 4.875 | 10-01-49 | 17,000 | 19,495 | |
| Kraft Heinz Foods Company | 5.000 | 06-04-42 | 25,000 | 29,044 | |
| Kraft Heinz Foods Company | 5.500 | 06-01-50 | 35,000 | 43,477 | |
| NBM US Holdings, Inc. (A) | 6.625 | 08-06-29 | 200,000 | 224,250 | |
| Post Holdings, Inc. (A) | 5.500 | 12-15-29 | 65,000 | 69,425 | |
| Simmons Foods, Inc. (A) | 4.625 | 03-01-29 | 10,000 | 10,125 | |
| 20 | JOHN HANCOCK MANAGED ACCOUNT SHARES | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
| Rate (%) | Maturity date | Par value^ | Value | ||
| Consumer staples (continued) | |||||
| Household products 0.7% | |||||
| Edgewell Personal Care Company (A) | 4.125 | 04-01-29 | 80,000 | $80,100 | |
| Edgewell Personal Care Company (A) | 5.500 | 06-01-28 | 77,000 | 81,813 | |
| Personal products 0.9% | |||||
| Oriflame Investment Holding PLC (A) | 5.125 | 05-04-26 | 200,000 | 202,000 | |
| Energy 8.4% | 1,949,524 | ||||
| Energy equipment and services 0.8% | |||||
| CSI Compressco LP (A) | 7.500 | 04-01-25 | 88,000 | 88,440 | |
| CSI Compressco LP (A) | 7.500 | 04-01-25 | 27,000 | 27,135 | |
| CSI Compressco LP (10.000% Cash or 7.250% Cash and 2.750% PIK) (A) | 10.000 | 04-01-26 | 88,431 | 80,472 | |
| Oil, gas and consumable fuels 7.6% | |||||
| Altera Infrastructure LP (A) | 8.500 | 07-15-23 | 72,000 | 65,444 | |
| Antero Midstream Partners LP (A) | 5.375 | 06-15-29 | 80,000 | 80,996 | |
| Antero Resources Corp. | 5.000 | 03-01-25 | 67,000 | 68,615 | |
| Cheniere Energy Partners LP (A) | 4.000 | 03-01-31 | 157,000 | 162,055 | |
| Cheniere Energy Partners LP | 4.500 | 10-01-29 | 140,000 | 148,050 | |
| DCP Midstream Operating LP (5.850% to 5-21-23, then 3 month LIBOR + 3.850%) (A) | 5.850 | 05-21-43 | 41,000 | 37,515 | |
| Energean Israel Finance, Ltd. (A) | 5.375 | 03-30-28 | 25,000 | 25,901 | |
| Energean Israel Finance, Ltd. (A) | 5.875 | 03-30-31 | 45,000 | 46,600 | |
| EQT Corp. (A) | 3.125 | 05-15-26 | 41,000 | 41,809 | |
| EQT Corp. (A) | 3.625 | 05-15-31 | 19,000 | 19,569 | |
| Leviathan Bond, Ltd. (A) | 6.500 | 06-30-27 | 108,000 | 120,000 | |
| Leviathan Bond, Ltd. (A) | 6.750 | 06-30-30 | 16,000 | 17,974 | |
| MPLX LP (6.875% to 2-15-23, then 3 month LIBOR + 4.652%) (C) | 6.875 | 02-15-23 | 239,000 | 240,793 | |
| New Fortress Energy, Inc. (A) | 6.500 | 09-30-26 | 110,000 | 110,688 | |
| Occidental Petroleum Corp. | 2.900 | 08-15-24 | 48,000 | 47,880 | |
| Occidental Petroleum Corp. | 3.500 | 08-15-29 | 46,000 | 43,125 | |
| Parkland Corp. (A) | 4.500 | 10-01-29 | 53,000 | 53,795 | |
| Petrobras Global Finance BV | 5.093 | 01-15-30 | 119,000 | 127,449 | |
| Petrobras Global Finance BV | 6.900 | 03-19-49 | 38,000 | 44,308 | |
| Sunoco LP (A) | 4.500 | 05-15-29 | 20,000 | 19,871 | |
| Targa Resources Partners LP (A) | 4.000 | 01-15-32 | 233,000 | 231,040 | |
| Financials 8.0% | 1,845,174 | ||||
| Banks 5.3% | |||||
| Citigroup, Inc. (4.700% to 1-30-25, then SOFR + 3.234%) (C) | 4.700 | 01-30-25 | 250,000 | 256,862 | |
| Citigroup, Inc. (6.250% to 8-15-26, then 3 month LIBOR + 4.517%) (C) | 6.250 | 08-15-26 | 134,000 | 155,608 | |
| Fifth Third Bancorp (5.100% to 6-30-23, then 3 month LIBOR + 3.033%) (C) | 5.100 | 06-30-23 | 67,000 | 68,340 | |
| Freedom Mortgage Corp. (A) | 8.125 | 11-15-24 | 71,000 | 72,828 | |
| Freedom Mortgage Corp. (A) | 8.250 | 04-15-25 | 30,000 | 31,200 | |
| ING Groep NV (6.500% to 4-16-25, then 5 Year U.S. Swap Rate + 4.446%) (C) | 6.500 | 04-16-25 | 200,000 | 222,380 | |
| NatWest Group PLC (8.625% to 8-15-21, then 5 Year U.S. Swap Rate + 7.598%) (C) | 8.625 | 08-15-21 | 200,000 | 202,064 | |
| Societe Generale SA (5.375% to 11-18-30, then 5 Year CMT + 4.514%) (A)(C) | 5.375 | 11-18-30 | 200,000 | 208,750 | |
| Capital markets 0.5% | |||||
| MSCI, Inc. (A) | 3.625 | 11-01-31 | 107,000 | 107,866 | |
| Consumer finance 1.1% | |||||
| Enova International, Inc. (A) | 8.500 | 09-01-24 | 1,000 | 1,023 | |
| Enova International, Inc. (A) | 8.500 | 09-15-25 | 119,000 | 123,463 | |
| OneMain Finance Corp. | 6.875 | 03-15-25 | 81,000 | 91,530 | |
| OneMain Finance Corp. | 8.875 | 06-01-25 | 40,000 | 44,050 | |
| Diversified financial services 0.2% | |||||
| Brightstar Escrow Corp. (A) | 9.750 | 10-15-25 | 54,000 | 58,590 | |
| Thrifts and mortgage finance 0.9% | |||||
| Nationstar Mortgage Holdings, Inc. (A) | 5.125 | 12-15-30 | 40,000 | 38,600 | |
| Nationstar Mortgage Holdings, Inc. (A) | 5.500 | 08-15-28 | 97,000 | 96,030 | |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK MANAGED ACCOUNT SHARES | 21 |
| Rate (%) | Maturity date | Par value^ | Value | ||
| Financials (continued) | |||||
| Thrifts and mortgage finance (continued) | |||||
| Nationstar Mortgage Holdings, Inc. (A) | 6.000 | 01-15-27 | 20,000 | $20,625 | |
| Radian Group, Inc. | 4.500 | 10-01-24 | 43,000 | 45,365 | |
| Health care 6.8% | 1,576,998 | ||||
| Health care equipment and supplies 0.3% | |||||
| Varex Imaging Corp. (A) | 7.875 | 10-15-27 | 58,000 | 65,540 | |
| Health care providers and services 4.4% | |||||
| Centene Corp. | 2.500 | 03-01-31 | 105,000 | 100,590 | |
| Centene Corp. | 3.000 | 10-15-30 | 149,000 | 149,000 | |
| Centene Corp. | 3.375 | 02-15-30 | 30,000 | 30,300 | |
| Centene Corp. | 4.250 | 12-15-27 | 25,000 | 26,250 | |
| Centene Corp. | 4.625 | 12-15-29 | 35,000 | 37,780 | |
| Centene Corp. (A) | 5.375 | 06-01-26 | 77,000 | 80,211 | |
| DaVita, Inc. (A) | 3.750 | 02-15-31 | 98,000 | 93,958 | |
| DaVita, Inc. (A) | 4.625 | 06-01-30 | 100,000 | 101,989 | |
| Encompass Health Corp. | 4.500 | 02-01-28 | 29,000 | 29,943 | |
| Encompass Health Corp. | 4.625 | 04-01-31 | 29,000 | 30,760 | |
| MEDNAX, Inc. (A) | 6.250 | 01-15-27 | 72,000 | 76,217 | |
| Rede D'or Finance Sarl (A) | 4.500 | 01-22-30 | 200,000 | 202,102 | |
| Select Medical Corp. (A) | 6.250 | 08-15-26 | 56,000 | 59,045 | |
| Life sciences tools and services 0.0% | |||||
| Charles River Laboratories International, Inc. (A) | 4.250 | 05-01-28 | 15,000 | 15,394 | |
| Pharmaceuticals 2.1% | |||||
| Bausch Health Companies, Inc. (A) | 5.250 | 01-30-30 | 36,000 | 33,165 | |
| Bausch Health Companies, Inc. (A) | 6.125 | 04-15-25 | 85,000 | 86,933 | |
| Bausch Health Companies, Inc. (A) | 6.250 | 02-15-29 | 120,000 | 117,300 | |
| Catalent Pharma Solutions, Inc. (A) | 3.125 | 02-15-29 | 15,000 | 14,435 | |
| Catalent Pharma Solutions, Inc. (A) | 5.000 | 07-15-27 | 20,000 | 20,860 | |
| Organon Finance 1 LLC (A) | 5.125 | 04-30-31 | 200,000 | 205,226 | |
| Industrials 14.3% | 3,301,408 | ||||
| Aerospace and defense 1.6% | |||||
| Howmet Aerospace, Inc. | 5.125 | 10-01-24 | 98,000 | 107,192 | |
| Kratos Defense & Security Solutions, Inc. (A) | 6.500 | 11-30-25 | 61,000 | 63,669 | |
| TransDigm, Inc. | 5.500 | 11-15-27 | 190,000 | 198,075 | |
| Air freight and logistics 0.2% | |||||
| Watco Companies LLC (A) | 6.500 | 06-15-27 | 21,000 | 22,208 | |
| XPO Logistics, Inc. (A) | 6.250 | 05-01-25 | 10,000 | 10,693 | |
| Airlines 3.6% | |||||
| American Airlines 2015-1 Class A Pass Through Trust | 3.375 | 05-01-27 | 165,588 | 161,448 | |
| American Airlines 2016-1 Class A Pass Through Trust | 4.100 | 01-15-28 | 82,489 | 81,046 | |
| American Airlines 2019-1 Class A Pass Through Trust | 3.500 | 02-15-32 | 87,965 | 82,247 | |
| Delta Air Lines, Inc. | 2.900 | 10-28-24 | 175,000 | 177,431 | |
| Delta Air Lines, Inc. | 3.800 | 04-19-23 | 75,000 | 77,604 | |
| Delta Air Lines, Inc. | 4.375 | 04-19-28 | 160,000 | 168,261 | |
| United Airlines 2016-1 Class B Pass Through Trust | 3.650 | 01-07-26 | 55,729 | 54,754 | |
| United Airlines, Inc. (A) | 4.375 | 04-15-26 | 9,000 | 9,326 | |
| United Airlines, Inc. (A) | 4.625 | 04-15-29 | 22,000 | 22,729 | |
| Building products 0.2% | |||||
| Builders FirstSource, Inc. (A) | 5.000 | 03-01-30 | 35,000 | 36,448 | |
| Builders FirstSource, Inc. (A) | 6.750 | 06-01-27 | 10,000 | 10,700 | |
| Commercial services and supplies 2.8% | |||||
| APX Group, Inc. | 7.625 | 09-01-23 | 75,000 | 77,250 | |
| Cimpress PLC (A) | 7.000 | 06-15-26 | 150,000 | 157,313 | |
| Clean Harbors, Inc. (A) | 4.875 | 07-15-27 | 91,000 | 95,664 | |
| 22 | JOHN HANCOCK MANAGED ACCOUNT SHARES | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
| Rate (%) | Maturity date | Par value^ | Value | ||
| Industrials (continued) | |||||
| Commercial services and supplies (continued) | |||||
| GFL Environmental, Inc. (A) | 3.500 | 09-01-28 | 75,000 | $73,004 | |
| Graphic Packaging International LLC (A) | 3.500 | 03-01-29 | 95,000 | 91,913 | |
| Legends Hospitality Holding Company LLC (A) | 5.000 | 02-01-26 | 15,000 | 15,525 | |
| LSC Communications, Inc. (A)(D) | 8.750 | 10-15-23 | 80,000 | 2,400 | |
| Prime Security Services Borrower LLC (A) | 3.375 | 08-31-27 | 12,000 | 11,517 | |
| Prime Security Services Borrower LLC (A) | 6.250 | 01-15-28 | 94,000 | 97,243 | |
| Stericycle, Inc. (A) | 3.875 | 01-15-29 | 15,000 | 14,963 | |
| Williams Scotsman International, Inc. (A) | 4.625 | 08-15-28 | 14,000 | 14,373 | |
| Construction and engineering 1.2% | |||||
| AECOM | 5.125 | 03-15-27 | 121,000 | 133,856 | |
| MasTec, Inc. (A) | 4.500 | 08-15-28 | 61,000 | 63,669 | |
| Picasso Finance Sub, Inc. (A) | 6.125 | 06-15-25 | 5,000 | 5,275 | |
| Tutor Perini Corp. (A) | 6.875 | 05-01-25 | 68,000 | 70,395 | |
| Electrical equipment 0.1% | |||||
| Atkore, Inc. (A) | 4.250 | 06-01-31 | 33,000 | 32,726 | |
| Machinery 1.3% | |||||
| ATS Automation Tooling Systems, Inc. (A) | 4.125 | 12-15-28 | 10,000 | 10,041 | |
| Hillenbrand, Inc. | 3.750 | 03-01-31 | 69,000 | 68,310 | |
| JB Poindexter & Company, Inc. (A) | 7.125 | 04-15-26 | 22,000 | 23,238 | |
| Vertical U.S. Newco, Inc. (A) | 5.250 | 07-15-27 | 200,000 | 208,000 | |
| Professional services 0.6% | |||||
| IHS Markit, Ltd. | 4.750 | 08-01-28 | 70,000 | 81,550 | |
| TriNet Group, Inc. (A) | 3.500 | 03-01-29 | 50,000 | 48,625 | |
| Road and rail 0.9% | |||||
| Uber Technologies, Inc. (A) | 7.500 | 05-15-25 | 120,000 | 129,540 | |
| Uber Technologies, Inc. (A) | 7.500 | 09-15-27 | 79,000 | 86,505 | |
| Trading companies and distributors 1.8% | |||||
| Ahern Rentals, Inc. (A) | 7.375 | 05-15-23 | 51,000 | 46,155 | |
| Alta Equipment Group, Inc. (A) | 5.625 | 04-15-26 | 15,000 | 15,413 | |
| Beacon Roofing Supply, Inc. (A) | 4.125 | 05-15-29 | 60,000 | 59,175 | |
| Boise Cascade Company (A) | 4.875 | 07-01-30 | 10,000 | 10,575 | |
| H&E Equipment Services, Inc. (A) | 3.875 | 12-15-28 | 65,000 | 62,867 | |
| United Rentals North America, Inc. | 3.875 | 11-15-27 | 45,000 | 47,304 | |
| United Rentals North America, Inc. | 3.875 | 02-15-31 | 31,000 | 31,155 | |
| United Rentals North America, Inc. | 4.875 | 01-15-28 | 125,000 | 132,038 | |
| Information technology 2.5% | 570,071 | ||||
| IT services 0.8% | |||||
| Gartner, Inc. (A) | 3.750 | 10-01-30 | 14,000 | 14,053 | |
| Gartner, Inc. (A) | 4.500 | 07-01-28 | 15,000 | 15,788 | |
| Sabre GLBL, Inc. (A) | 7.375 | 09-01-25 | 48,000 | 51,720 | |
| Square, Inc. (A) | 2.750 | 06-01-26 | 34,000 | 34,275 | |
| Square, Inc. (A) | 3.500 | 06-01-31 | 46,000 | 45,997 | |
| Tempo Acquisition LLC (A) | 6.750 | 06-01-25 | 20,000 | 20,362 | |
| Semiconductors and semiconductor equipment 0.2% | |||||
| Qorvo, Inc. (A) | 3.375 | 04-01-31 | 38,000 | 38,741 | |
| Software 0.4% | |||||
| Crowdstrike Holdings, Inc. | 3.000 | 02-15-29 | 11,000 | 10,794 | |
| j2 Global, Inc. (A) | 4.625 | 10-15-30 | 66,000 | 67,485 | |
| PTC, Inc. (A) | 4.000 | 02-15-28 | 11,000 | 11,246 | |
| Technology hardware, storage and peripherals 1.1% | |||||
| Atento Luxco 1 SA (A) | 8.000 | 02-10-26 | 55,000 | 59,815 | |
| CDW LLC | 3.250 | 02-15-29 | 30,000 | 30,465 | |
| Xerox Holdings Corp. (A) | 5.500 | 08-15-28 | 164,000 | 169,330 | |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK MANAGED ACCOUNT SHARES | 23 |
| Rate (%) | Maturity date | Par value^ | Value | ||
| Materials 10.9% | $2,520,477 | ||||
| Chemicals 4.3% | |||||
| Braskem Netherlands Finance BV (8.500% to 10-24-25, then 5 Year CMT + 8.220%) (A) | 8.500 | 01-23-81 | 200,000 | 232,252 | |
| Cydsa SAB de CV (A) | 6.250 | 10-04-27 | 200,000 | 210,360 | |
| Methanex Corp. | 4.250 | 12-01-24 | 45,000 | 47,138 | |
| Sasol Financing USA LLC | 5.500 | 03-18-31 | 200,000 | 209,040 | |
| Trinseo Materials Operating SCA (A) | 5.125 | 04-01-29 | 54,000 | 55,285 | |
| Tronox, Inc. (A) | 4.625 | 03-15-29 | 100,000 | 102,430 | |
| Valvoline, Inc. (A) | 3.625 | 06-15-31 | 115,000 | 111,778 | |
| WR Grace & Company (A) | 4.875 | 06-15-27 | 35,000 | 36,838 | |
| Construction materials 1.2% | |||||
| Cemex SAB de CV (A) | 7.375 | 06-05-27 | 200,000 | 225,202 | |
| Standard Industries, Inc. (A) | 3.375 | 01-15-31 | 28,000 | 26,560 | |
| Standard Industries, Inc. (A) | 5.000 | 02-15-27 | 12,000 | 12,422 | |
| U.S. Concrete, Inc. (A) | 5.125 | 03-01-29 | 27,000 | 27,608 | |
| Containers and packaging 1.7% | |||||
| Ardagh Packaging Finance PLC (A) | 6.000 | 02-15-25 | 200,000 | 206,040 | |
| Graham Packaging Company, Inc. (A) | 7.125 | 08-15-28 | 5,000 | 5,335 | |
| Owens-Brockway Glass Container, Inc. (A) | 6.625 | 05-13-27 | 53,000 | 57,571 | |
| Reynolds Group Issuer, Inc. (A) | 4.000 | 10-15-27 | 95,000 | 93,338 | |
| Trident TPI Holdings, Inc. (A) | 6.625 | 11-01-25 | 22,000 | 22,440 | |
| Metals and mining 3.5% | |||||
| Arconic Corp. (A) | 6.000 | 05-15-25 | 15,000 | 16,017 | |
| Arconic Corp. (A) | 6.125 | 02-15-28 | 91,000 | 96,858 | |
| Commercial Metals Company | 5.375 | 07-15-27 | 27,000 | 28,485 | |
| First Quantum Minerals, Ltd. (A) | 6.875 | 10-15-27 | 200,000 | 218,250 | |
| FMG Resources August 2006 Pty, Ltd. (A) | 4.375 | 04-01-31 | 75,000 | 78,360 | |
| Freeport-McMoRan, Inc. | 4.625 | 08-01-30 | 110,000 | 120,725 | |
| Freeport-McMoRan, Inc. | 5.450 | 03-15-43 | 56,000 | 67,620 | |
| Hudbay Minerals, Inc. (A) | 4.500 | 04-01-26 | 16,000 | 15,878 | |
| JW Aluminum Continuous Cast Company (A) | 10.250 | 06-01-26 | 15,000 | 15,750 | |
| Novelis Corp. (A) | 4.750 | 01-30-30 | 122,000 | 128,100 | |
| Volcan Cia Minera SAA (A) | 4.375 | 02-11-26 | 15,000 | 14,640 | |
| Paper and forest products 0.2% | |||||
| Norbord, Inc. (A) | 6.250 | 04-15-23 | 35,000 | 38,157 | |
| Real estate 2.4% | 546,154 | ||||
| Equity real estate investment trusts 2.4% | |||||
| Iron Mountain, Inc. (A) | 4.875 | 09-15-29 | 88,000 | 90,200 | |
| Iron Mountain, Inc. (A) | 5.250 | 07-15-30 | 66,000 | 68,914 | |
| MGM Growth Properties Operating Partnership LP (A) | 3.875 | 02-15-29 | 68,000 | 68,788 | |
| RHP Hotel Properties LP (A) | 4.500 | 02-15-29 | 81,000 | 80,595 | |
| SBA Communications Corp. | 3.875 | 02-15-27 | 67,000 | 68,508 | |
| Uniti Group LP (A) | 6.500 | 02-15-29 | 30,000 | 29,700 | |
| VICI Properties LP (A) | 4.125 | 08-15-30 | 40,000 | 40,616 | |
| VICI Properties LP (A) | 4.625 | 12-01-29 | 95,000 | 98,833 | |
| Utilities 1.8% | 410,022 | ||||
| Electric utilities 0.5% | |||||
| FirstEnergy Corp. | 2.650 | 03-01-30 | 65,000 | 63,050 | |
| NRG Energy, Inc. (A) | 3.375 | 02-15-29 | 14,000 | 13,503 | |
| NRG Energy, Inc. (A) | 3.625 | 02-15-31 | 35,000 | 33,556 | |
| Gas utilities 0.6% | |||||
| AmeriGas Partners LP | 5.500 | 05-20-25 | 60,000 | 65,925 | |
| Suburban Propane Partners LP (A) | 5.000 | 06-01-31 | 65,000 | 65,680 | |
| Independent power and renewable electricity producers 0.7% | |||||
| DPL, Inc. | 4.125 | 07-01-25 | 60,000 | 64,125 | |
| 24 | JOHN HANCOCK MANAGED ACCOUNT SHARES | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
| Rate (%) | Maturity date | Par value^ | Value | ||
| Utilities (continued) | |||||
| Independent power and renewable electricity producers (continued) | |||||
| NextEra Energy Operating Partners LP (A) | 3.875 | 10-15-26 | 60,000 | $62,854 | |
| NextEra Energy Operating Partners LP (A) | 4.500 | 09-15-27 | 38,000 | 41,329 | |
| Term loans (E) 0.5% | $109,450 | ||||
| (Cost $109,588) | |||||
| Industrials 0.5% | 109,450 | ||||
| Professional services 0.5% | |||||
| CoreLogic, Inc., Term Loan (F) | TBD | 04-13-28 | 110,000 | 109,450 | |
| Shares | Value | ||||
| Preferred securities 0.6% | $144,628 | ||||
| (Cost $116,195) | |||||
| Communication services 0.2% | 48,813 | ||||
| Wireless telecommunication services 0.2% | |||||
| Telephone & Data Systems, Inc., 6.625% | 1,775 | 48,813 | |||
| Information technology 0.4% | 95,815 | ||||
| Semiconductors and semiconductor equipment 0.4% | |||||
| Broadcom, Inc., 8.000% | 63 | 95,815 | |||
| Total investments (Cost $21,887,976) 96.4% | $22,271,540 | ||||
| Other assets and liabilities, net 3.6% | 841,553 | ||||
| Total net assets 100.0% | $23,113,093 | ||||
MANAGED ACCOUNT SHARES
SECURITIZED DEBT PORTFOLIO
As of 5-31-21
| Rate (%) | Maturity date | Par value^ | Value | ||
| Collateralized mortgage obligations 29.2% | $7,174,908 | ||||
| (Cost $7,168,747) | |||||
| Commercial and residential 23.8% | 5,852,093 | ||||
| Angel Oak Mortgage Trust | |||||
| Series 2020-R1, Class A1 (A)(B) | 0.990 | 04-25-53 | 82,593 | 82,702 | |
| BAMLL Commercial Mortgage Securities Trust | |||||
| Series 2015-200P, Class A (A) | 3.218 | 04-14-33 | 100,000 | 107,056 | |
| Series 2015-200P, Class C (A)(B) | 3.596 | 04-14-33 | 115,000 | 122,683 | |
| BBCMS Trust | |||||
| Series 2015-SRCH, Class D (A)(B) | 4.957 | 08-10-35 | 100,000 | 111,736 | |
| Benchmark Mortgage Trust | |||||
| Series 2018-B1, Class A2 | 3.571 | 01-15-51 | 115,000 | 119,048 | |
| Series 2019-B12, Class A2 | 3.001 | 08-15-52 | 100,000 | 105,291 | |
| Bunker Hill Loan Depositary Trust | |||||
| Series 2019-2, Class A1 (A) | 2.879 | 07-25-49 | 48,833 | 49,851 | |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK MANAGED ACCOUNT SHARES | 25 |
| Rate (%) | Maturity date | Par value^ | Value | ||
| Commercial and residential (continued) | |||||
| BX Commercial Mortgage Trust | |||||
| Series 2018-BIOA, Class D (1 month LIBOR + 1.321%) (A)(C) | 1.427 | 03-15-37 | 215,000 | $215,341 | |
| Series 2020-VKNG, Class A (1 month LIBOR + 0.930%) (A)(C) | 1.036 | 10-15-37 | 134,000 | 134,334 | |
| BX Trust | |||||
| Series 2021-MFM1, Class D (1 month LIBOR + 1.500%) (A)(C) | 1.606 | 01-15-34 | 20,000 | 20,000 | |
| CAMB Commercial Mortgage Trust | |||||
| Series 2019-LIFE, Class D (1 month LIBOR + 1.750%) (A)(C) | 1.856 | 12-15-37 | 115,000 | 115,102 | |
| Citigroup Commercial Mortgage Trust | |||||
| Series 2019-PRM, Class A (A) | 3.341 | 05-10-36 | 115,000 | 121,946 | |
| Series 2019-SMRT, Class A (A) | 4.149 | 01-10-36 | 150,000 | 161,674 | |
| Series 2020-GC46, Class A2 | 2.708 | 02-15-53 | 185,000 | 193,584 | |
| COLT Mortgage Loan Trust | |||||
| Series 2020-1, Class A1 (A)(B) | 2.488 | 02-25-50 | 44,309 | 44,649 | |
| Series 2020-2, Class A1 (A)(B) | 1.853 | 03-25-65 | 70,583 | 71,120 | |
| Commercial Mortgage Trust (Cantor Fitzgerald/Deutsche Bank AG) | |||||
| Series 2020-CX, Class D (A)(B) | 2.683 | 11-10-46 | 100,000 | 98,247 | |
| Credit Suisse Mortgage Capital Certificates | |||||
| Series 2019-AFC1, Class A1 (A) | 2.573 | 07-25-49 | 52,697 | 53,563 | |
| Series 2019-ICE4, Class D (1 month LIBOR + 1.600%) (A)(C) | 1.706 | 05-15-36 | 125,000 | 125,201 | |
| Series 2020-AFC1, Class A1 (A)(B) | 2.240 | 02-25-50 | 62,734 | 63,680 | |
| Series 2021-AFC1, Class A1 (A)(B) | 0.830 | 03-25-56 | 383,685 | 383,514 | |
| Series 2021-NQM2, Class A1 (A)(B) | 1.179 | 02-25-66 | 113,165 | 113,400 | |
| Series 2021-RPL2, Class A1A (A)(B) | 1.115 | 01-25-60 | 166,435 | 165,081 | |
| DBJPM Mortgage Trust | |||||
| Series 2020-C9, Class A2 | 1.900 | 09-15-53 | 95,000 | 97,569 | |
| Ellington Financial Mortgage Trust | |||||
| Series 2019-2, Class A1 (A)(B) | 2.739 | 11-25-59 | 107,969 | 110,081 | |
| Series 2020-2, Class A1 (A)(B) | 1.178 | 10-25-65 | 70,981 | 71,067 | |
| Series 2021-1, Class A1 (A)(B) | 0.797 | 02-25-66 | 89,025 | 89,061 | |
| Flagstar Mortgage Trust | |||||
| Series 2021-1, Class A2 (A)(B) | 2.500 | 02-01-51 | 144,929 | 147,324 | |
| GCAT Trust | |||||
| Series 2019-NQM1, Class A1 (A) | 2.985 | 02-25-59 | 44,875 | 45,094 | |
| Series 2021-NQM2, Class A1 (A)(B) | 1.036 | 05-25-66 | 100,000 | 99,998 | |
| GS Mortgage Securities Trust | |||||
| Series 2013-GC12, Class A3 | 2.860 | 06-10-46 | 80,000 | 82,381 | |
| Series 2015-590M, Class C (A)(B) | 3.805 | 10-10-35 | 115,000 | 119,876 | |
| GS Mortgage-Backed Securities Trust | |||||
| Series 2021-NQM1, Class A1 (A)(B) | 1.017 | 07-25-61 | 141,768 | 141,914 | |
| Irvine Core Office Trust | |||||
| Series 2013-IRV, Class A2 (A)(B) | 3.174 | 05-15-48 | 115,000 | 120,469 | |
| KNDL Mortgage Trust | |||||
| Series 2019-KNSQ, Class C (1 month LIBOR + 1.050%) (A)(C) | 1.156 | 05-15-36 | 200,000 | 200,120 | |
| Life Mortgage Trust | |||||
| Series 2021-BMR, Class A (1 month LIBOR + 0.700%) (A)(C) | 0.806 | 03-15-38 | 220,000 | 220,138 | |
| Series 2021-BMR, Class D (1 month LIBOR + 1.400%) (A)(C) | 1.506 | 03-15-38 | 100,000 | 100,313 | |
| MFA Trust | |||||
| Series 2020-NQM1, Class A1 (A)(B) | 1.479 | 03-25-65 | 133,649 | 134,847 | |
| Series 2020-NQM3, Class A1 (A)(B) | 1.014 | 01-26-65 | 89,382 | 89,566 | |
| Series 2021-NQM1, Class A1 (A)(B) | 1.153 | 04-25-65 | 100,737 | 100,750 | |
| Morgan Stanley Capital I Trust | |||||
| Series 2017-CLS, Class D (1 month LIBOR + 1.400%) (A)(C) | 1.506 | 11-15-34 | 215,000 | 215,065 | |
| NMLT Trust | |||||
| Series 2021-INV1, Class A1 (A)(B) | 1.185 | 06-25-26 | 200,000 | 200,000 | |
| Seasoned Credit Risk Transfer Trust | |||||
| Series 2020-2, Class MA | 2.000 | 11-25-59 | 164,272 | 168,632 | |
| Starwood Mortgage Residential Trust | |||||
| Series 2020-3, Class A1 (A)(B) | 1.486 | 04-25-65 | 69,760 | 70,517 | |
| Series 2021-2, Class A1 (A)(B) | 0.943 | 05-25-65 | 146,798 | 146,902 | |
| Verus Securitization Trust | |||||
| Series 2021-1, Class A1 (A)(B) | 0.815 | 01-25-66 | 89,762 | 89,584 | |
| Visio Trust | |||||
| Series 2020-1R, Class A1 (A) | 1.312 | 11-25-55 | 211,136 | 212,022 | |
| 26 | JOHN HANCOCK MANAGED ACCOUNT SHARES | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
| Rate (%) | Maturity date | Par value^ | Value | ||
| U.S. Government Agency 5.4% | $1,322,815 | ||||
| Federal Home Loan Mortgage Corp. | |||||
| Series K048, Class X1 IO | 0.236 | 06-25-25 | 10,381,371 | 92,965 | |
| Government National Mortgage Association | |||||
| Series 2020-108, Class IO | 0.933 | 06-16-62 | 3,210,967 | 255,141 | |
| Series 2020-114, Class IO | 0.926 | 09-16-62 | 1,085,280 | 88,220 | |
| Series 2020-118, Class IO | 1.047 | 06-16-62 | 960,443 | 81,434 | |
| Series 2020-120, Class IO | 0.853 | 05-16-62 | 1,118,981 | 88,703 | |
| Series 2020-137, Class IO | 0.844 | 09-16-62 | 4,685,868 | 361,110 | |
| Series 2020-150, Class IO | 0.984 | 12-16-62 | 1,300,399 | 110,038 | |
| Series 2020-170, Class IO | 0.886 | 11-16-62 | 631,784 | 52,464 | |
| Series 2020-92, Class IO | 1.016 | 02-16-62 | 963,291 | 81,047 | |
| Series 2021-10, Class IO | 1.000 | 05-16-63 | 508,616 | 45,342 | |
| Series 2021-11, Class IO | 1.022 | 12-16-62 | 727,772 | 66,351 | |
| Asset backed securities 69.9% | $17,133,232 | ||||
| (Cost $17,027,865) | |||||
| Asset backed securities 69.9% | 17,133,232 | ||||
| AmeriCredit Automobile Receivables Trust | |||||
| Series 2020-1, Class C | 1.590 | 10-20-25 | 72,000 | 73,395 | |
| AMSR Trust | |||||
| Series 2020-SFR1, Class A (A) | 1.819 | 04-17-37 | 99,904 | 101,673 | |
| Series 2020-SFR2, Class A (A) | 1.632 | 07-17-37 | 350,000 | 353,202 | |
| Series 2020-SFR4, Class A (A) | 1.355 | 11-17-37 | 115,000 | 114,655 | |
| Applebee's Funding LLC | |||||
| Series 2019-1A, Class A2I (A) | 4.194 | 06-07-49 | 114,425 | 117,727 | |
| Arby's Funding LLC | |||||
| Series 2020-1A, Class A2 (A) | 3.237 | 07-30-50 | 82,378 | 85,459 | |
| Avis Budget Rental Car Funding AESOP LLC | |||||
| Series 2019-1A, Class A (A) | 3.450 | 03-20-23 | 100,000 | 101,904 | |
| Series 2019-3A, Class A (A) | 2.360 | 03-20-26 | 344,000 | 361,614 | |
| Series 2020-1A, Class A (A) | 2.330 | 08-20-26 | 100,000 | 105,036 | |
| BA Credit Card Trust | |||||
| Series 2021-A1, Class A1 | 0.440 | 09-15-26 | 265,000 | 265,036 | |
| Bojangles Issuer LLC | |||||
| Series 2020-1A, Class A2 (A) | 3.832 | 10-20-50 | 69,000 | 72,533 | |
| CarMax Auto Owner Trust | |||||
| Series 2019-3, Class A4 | 2.300 | 04-15-25 | 100,000 | 104,007 | |
| Series 2020-3, Class A3 | 0.620 | 03-17-25 | 100,000 | 100,550 | |
| Series 2020-3, Class A4 | 0.770 | 03-16-26 | 200,000 | 201,660 | |
| CARS-DB4 LP | |||||
| Series 2020-1A, Class A1 (A) | 2.690 | 02-15-50 | 92,107 | 95,660 | |
| Series 2020-1A, Class B1 (A) | 4.170 | 02-15-50 | 100,000 | 103,401 | |
| Carvana Auto Receivables Trust | |||||
| Series 2020-P1, Class A4 | 0.610 | 10-08-26 | 76,000 | 75,837 | |
| CLI Funding VI LLC | |||||
| Series 2020-1A, Class A (A) | 2.080 | 09-18-45 | 184,667 | 186,570 | |
| CLI Funding VIII LLC | |||||
| Series 2021-1A, Class A (A) | 1.640 | 02-18-46 | 125,803 | 124,445 | |
| CoreVest American Finance Trust | |||||
| Series 2019-3, Class A (A) | 2.705 | 10-15-52 | 84,814 | 88,637 | |
| Series 2020-3, Class A (A) | 1.358 | 08-15-53 | 205,067 | 203,795 | |
| Series 2021-1, Class A (A) | 1.569 | 04-15-53 | 300,609 | 301,469 | |
| DataBank Issuer | |||||
| Series 2021-1A, Class A2 (A) | 2.060 | 02-27-51 | 190,000 | 192,028 | |
| DB Master Finance LLC | |||||
| Series 2017-1A, Class A2II (A) | 4.030 | 11-20-47 | 198,338 | 211,684 | |
| Series 2019-1A, Class A2I (A) | 3.787 | 05-20-49 | 196,500 | 199,660 | |
| Domino's Pizza Master Issuer LLC | |||||
| Series 2017-1A, Class A23 (A) | 4.118 | 07-25-47 | 179,955 | 194,292 | |
| Series 2021-1A, Class A2I (A) | 2.662 | 04-25-51 | 95,000 | 96,668 | |
| DRB Prime Student Loan Trust | |||||
| Series 2015-D, Class A2 (A) | 3.200 | 01-25-40 | 49,872 | 49,967 | |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK MANAGED ACCOUNT SHARES | 27 |
| Rate (%) | Maturity date | Par value^ | Value | ||
| Asset backed securities (continued) | |||||
| Driven Brands Funding LLC | |||||
| Series 2018-1A, Class A2 (A) | 4.739 | 04-20-48 | 49,470 | $52,702 | |
| Series 2020-2A, Class A2 (A) | 3.237 | 01-20-51 | 129,675 | 134,687 | |
| Elara HGV Timeshare Issuer LLC | |||||
| Series 2019-A, Class A (A) | 2.610 | 01-25-34 | 57,669 | 59,603 | |
| Exeter Automobile Receivables Trust | |||||
| Series 2020-1A, Class C (A) | 2.490 | 01-15-25 | 100,000 | 101,900 | |
| Series 2021-1A, Class C | 0.740 | 01-15-26 | 95,000 | 95,030 | |
| FirstKey Homes Trust | |||||
| Series 2020-SFR1, Class A (A) | 1.339 | 09-17-25 | 149,826 | 150,332 | |
| Series 2020-SFR2, Class A (A) | 1.266 | 10-19-37 | 320,292 | 320,038 | |
| Five Guys Funding LLC | |||||
| Series 2017-1A, Class A2 (A) | 4.600 | 07-25-47 | 114,138 | 119,421 | |
| Ford Credit Auto Owner Trust | |||||
| Series 2018-1, Class A (A) | 3.190 | 07-15-31 | 472,000 | 512,816 | |
| Series 2018-2, Class A (A) | 3.470 | 01-15-30 | 100,000 | 106,610 | |
| Series 2020-1, Class A (A) | 2.040 | 08-15-31 | 100,000 | 104,489 | |
| Series 2021-1, Class A (A) | 1.370 | 10-17-33 | 129,000 | 130,569 | |
| Ford Credit Floorplan Master Owner Trust | |||||
| Series 2019-2, Class A | 3.060 | 04-15-26 | 189,000 | 202,750 | |
| Series 2020-2, Class A | 1.060 | 09-15-27 | 150,000 | 150,609 | |
| GM Financial Consumer Automobile Receivables Trust | |||||
| Series 2020-2, Class A4 | 1.740 | 08-18-25 | 78,000 | 80,500 | |
| GM Financial Leasing Trust | |||||
| Series 2021-2, Class A4 | 0.410 | 05-20-25 | 43,000 | 43,027 | |
| GMF Floorplan Owner Revolving Trust | |||||
| Series 2019-2, Class A (A) | 2.900 | 04-15-26 | 200,000 | 213,576 | |
| Series 2020-1, Class A (A) | 0.680 | 08-15-25 | 106,000 | 106,626 | |
| Golden Credit Card Trust | |||||
| Series 2018-4A, Class A (A) | 3.440 | 08-15-25 | 215,000 | 229,640 | |
| Hilton Grand Vacations Trust | |||||
| Series 2018-AA, Class A (A) | 3.540 | 02-25-32 | 60,423 | 63,725 | |
| Home Partners of America Trust | |||||
| Series 2019-1, Class A (A) | 2.908 | 09-17-39 | 90,688 | 92,948 | |
| Honda Auto Receivables Owner Trust | |||||
| Series 2021-2, Class A4 | 0.550 | 08-16-27 | 82,000 | 82,018 | |
| Hyundai Auto Receivables Trust | |||||
| Series 2020-B, Class A4 | 0.620 | 12-15-25 | 75,000 | 75,431 | |
| Jack in the Box Funding LLC | |||||
| Series 2019-1A, Class A2I (A) | 3.982 | 08-25-49 | 218,350 | 223,992 | |
| John Deere Owner Trust | |||||
| Series 2020-A, Class A4 | 1.210 | 11-16-26 | 85,000 | 86,302 | |
| Series 2020-B, Class A4 | 0.720 | 06-15-27 | 125,000 | 126,088 | |
| Monroe Capital Funding, Ltd. | |||||
| Series 2021-1A, Class A2 (A) | 2.815 | 04-22-31 | 152,000 | 151,878 | |
| MVW LLC | |||||
| Series 2020-1A, Class A (A) | 1.740 | 10-20-37 | 317,104 | 324,106 | |
| MVW Owner Trust | |||||
| Series 2018-1A, Class A (A) | 3.450 | 01-21-36 | 35,397 | 36,759 | |
| Navient Private Education Refi Loan Trust | |||||
| Series 2020-BA, Class A2 (A) | 2.120 | 01-15-69 | 100,000 | 101,554 | |
| Series 2020-GA, Class A (A) | 1.170 | 09-16-69 | 100,195 | 100,787 | |
| Series 2020-HA, Class A (A) | 1.310 | 01-15-69 | 251,975 | 254,149 | |
| Series 2021-A, Class A (A) | 0.840 | 05-15-69 | 225,552 | 225,740 | |
| Navient Student Loan Trust | |||||
| Series 2020-2A, Class A1A (A) | 1.320 | 08-26-69 | 94,845 | 94,228 | |
| Neighborly Issuer LLC | |||||
| Series 2021-1A, Class A2 (A) | 3.584 | 04-30-51 | 199,000 | 203,706 | |
| Nissan Auto Receivables Owner Trust | |||||
| Series 2020-A, Class A3 | 1.380 | 12-16-24 | 86,000 | 87,287 | |
| Series 2020-B, Class A4 | 0.710 | 02-16-27 | 16,000 | 16,146 | |
| Oxford Finance Funding LLC | |||||
| Series 2019-1A, Class A2 (A) | 4.459 | 02-15-27 | 154,030 | 159,265 | |
| Series 2020-1A, Class A2 (A) | 3.101 | 02-15-28 | 64,000 | 66,049 |
| 28 | JOHN HANCOCK MANAGED ACCOUNT SHARES | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
| Rate (%) | Maturity date | Par value^ | Value | ||
| Asset backed securities (continued) | |||||
| PFS Financing Corp. | |||||
| Series 2018-F, Class A (A) | 3.520 | 10-15-23 | 100,000 | $101,220 | |
| Series 2019-C, Class A (A) | 2.230 | 10-15-24 | 100,000 | 102,478 | |
| Series 2020-E, Class A (A) | 1.000 | 10-15-25 | 272,000 | 275,027 | |
| Progress Residential Trust | |||||
| Series 2019-SFR3, Class A (A) | 2.271 | 09-17-36 | 99,604 | 101,350 | |
| Series 2020-SFR1, Class A (A) | 1.732 | 04-17-37 | 100,000 | 101,445 | |
| Series 2020-SFR2, Class A (A) | 2.078 | 06-17-37 | 100,000 | 102,310 | |
| Series 2021-SFR1, Class A (A) | 1.052 | 04-17-38 | 100,000 | 98,590 | |
| Series 2021-SFR2, Class A (A) | 1.546 | 04-19-38 | 125,000 | 125,285 | |
| Series 2021-SFR4, Class A (A) | 1.558 | 05-17-38 | 300,000 | 300,318 | |
| Santander Revolving Auto Loan Trust | |||||
| Series 2019-A, Class A (A) | 2.510 | 01-26-32 | 155,000 | 163,842 | |
| SCF Equipment Leasing LLC | |||||
| Series 2019-1A, Class A2 (A) | 3.230 | 10-20-24 | 37,856 | 37,951 | |
| Series 2019-2A, Class C (A) | 3.110 | 06-21-27 | 130,000 | 136,664 | |
| Series 2020-1A, Class A3 (A) | 1.190 | 10-20-27 | 100,000 | 100,717 | |
| Series 2021-1A, Class B (A) | 1.370 | 08-20-29 | 200,000 | 199,117 | |
| ServiceMaster Funding LLC | |||||
| Series 2020-1, Class A2II (A) | 3.337 | 01-30-51 | 99,750 | 104,192 | |
| Sierra Timeshare Receivables Funding LLC | |||||
| Series 2021-1A, Class A (A) | 0.990 | 11-20-37 | 127,690 | 127,885 | |
| SMB Private Education Loan Trust | |||||
| Series 2016-A, Class A2A (A) | 2.700 | 05-15-31 | 95,543 | 98,193 | |
| Series 2019-B, Class A2A (A) | 2.840 | 06-15-37 | 120,929 | 126,675 | |
| Series 2020-PTA, Class A2A (A) | 1.600 | 09-15-54 | 150,000 | 152,033 | |
| Series 2021-A, Class APT2 (A) | 1.070 | 01-15-53 | 94,614 | 93,769 | |
| Sonic Capital LLC | |||||
| Series 2020-1A, Class A2I (A) | 3.845 | 01-20-50 | 158,267 | 165,797 | |
| Taco Bell Funding LLC | |||||
| Series 2018-1A, Class A2I (A) | 4.318 | 11-25-48 | 58,500 | 59,034 | |
| Tesla Auto Lease Trust | |||||
| Series 2020-A, Class A3 (A) | 0.680 | 12-20-23 | 150,000 | 150,795 | |
| Series 2020-A, Class A4 (A) | 0.780 | 12-20-23 | 285,000 | 287,152 | |
| TIF Funding II LLC | |||||
| Series 2020-1A, Class A (A) | 2.090 | 08-20-45 | 188,750 | 190,330 | |
| Series 2021-1A, Class A (A) | 1.650 | 02-20-46 | 97,417 | 95,745 | |
| Towd Point Mortgage Trust | |||||
| Series 2015-1, Class A5 (A)(B) | 3.399 | 10-25-53 | 100,000 | 105,919 | |
| Series 2015-6, Class M2 (A)(B) | 3.750 | 04-25-55 | 100,000 | 105,051 | |
| Series 2017-1, Class A1 (A)(B) | 2.750 | 10-25-56 | 78,689 | 79,873 | |
| Series 2017-2, Class A1 (A)(B) | 2.750 | 04-25-57 | 27,813 | 28,217 | |
| Series 2018-1, Class A1 (A)(B) | 3.000 | 01-25-58 | 46,921 | 48,559 | |
| Series 2018-2, Class A1 (A)(B) | 3.250 | 03-25-58 | 141,952 | 147,618 | |
| Series 2018-6, Class A1A (A)(B) | 3.750 | 03-25-58 | 102,069 | 105,566 | |
| Series 2019-1, Class A1 (A)(B) | 3.735 | 03-25-58 | 100,229 | 106,159 | |
| Series 2020-4, Class A1 (A) | 1.750 | 10-25-60 | 257,066 | 261,300 | |
| Toyota Auto Loan Extended Note Trust | |||||
| Series 2019-1A, Class A (A) | 2.560 | 11-25-31 | 155,000 | 164,350 | |
| Series 2020-1A, Class A (A) | 1.350 | 05-25-33 | 300,000 | 306,401 | |
| Toyota Auto Receivables Owner Trust | |||||
| Series 2017-C, Class A4 | 1.980 | 12-15-22 | 42,770 | 42,866 | |
| Series 2020-C, Class A3 | 0.440 | 10-15-24 | 32,000 | 32,092 | |
| Series 2020-C, Class A4 | 0.570 | 10-15-25 | 24,000 | 24,139 | |
| Tricon American Homes Trust | |||||
| Series 2020-SFR1, Class A (A) | 1.499 | 07-17-38 | 249,774 | 249,797 | |
| Series 2020-SFR2, Class A (A) | 1.482 | 11-17-39 | 99,902 | 98,236 | |
| Triton Container Finance VIII LLC | |||||
| Series 2020-1A, Class A (A) | 2.110 | 09-20-45 | 330,167 | 333,508 | |
| Series 2021-1A, Class A (A) | 1.860 | 03-20-46 | 108,442 | 107,533 |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK MANAGED ACCOUNT SHARES | 29 |
| Rate (%) | Maturity date | Par value^ | Value | ||
| Asset backed securities (continued) | |||||
| Vantage Data Centers LLC | |||||
| Series 2019-1A, Class A2 (A) | 3.188 | 07-15-44 | 86,460 | $89,866 | |
| Series 2020-1A, Class A2 (A) | 1.645 | 09-15-45 | 90,000 | 90,091 | |
| Series 2020-2A, Class A2 (A) | 1.992 | 09-15-45 | 200,000 | 199,414 | |
| Verizon Owner Trust | |||||
| Series 2020-B, Class A | 0.470 | 02-20-25 | 263,000 | 264,086 | |
| Series 2020-C, Class C | 0.770 | 04-21-25 | 72,000 | 72,199 | |
| VR Funding LLC | |||||
| Series 2020-1A, Class A (A) | 2.790 | 11-15-50 | 108,994 | 107,320 | |
| Wingstop Funding LLC | |||||
| Series 2020-1A, Class A2 (A) | 2.841 | 12-05-50 | 200,000 | 206,250 | |
| World Omni Auto Receivables Trust | |||||
| Series 2021-B, Class A4 | 0.690 | 06-15-27 | 252,000 | 252,066 | |
| Zaxby's Funding LLC | |||||
| Series 2021-1A, Class A2 (A) | 3.238 | 07-30-51 | 137,000 | 137,195 |
| Total investments (Cost $24,196,612) 99.1% | $24,308,140 | ||||
| Other assets and liabilities, net 0.9% | 212,792 | ||||
| Total net assets 100.0% | $24,520,932 | ||||
| The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the portfolio. | |
| ^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) | 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. Rule 144A securities amounted to $19,665,699 or 80.2% of the portfolio's net assets as of 5-31-21. |
| (B) | 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. |
| (C) | Variable rate obligation. The coupon rate shown represents the rate at period end. |
| 30 | JOHN HANCOCK MANAGED ACCOUNT SHARES | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Financial statements
STATEMENTS OF ASSETS AND
LIABILITIES 5-31-21
| Managed Account Shares Investment-Grade Corporate Bond Portfolio | Managed Account Shares Non-Investment-Grade Corporate Bond Portfolio | Managed Account Shares Securitized Debt Portfolio | |
| Assets | |||
| Unaffiliated investments, at value | $23,849,568 | $22,271,540 | $24,308,140 |
| Cash | 286,016 | 582,821 | 271,503 |
| Dividends and interest receivable | 222,734 | 273,928 | 43,641 |
| Receivable for fund shares sold | 200,394 | 280,451 | 215,187 |
| Receivable for investments sold | 49,835 | 232,892 | — |
| Receivable from affiliates | 2,777 | 2,696 | 2,796 |
| Other assets | 21,460 | 21,028 | 21,352 |
| Total assets | 24,632,784 | 23,665,356 | 24,862,619 |
| Liabilities | |||
| Distributions payable | 77,224 | 98,840 | 42,998 |
| Payable for investments purchased | 56,234 | 211,076 | 237,093 |
| Payable for delayed delivery securities purchased | — | 171,295 | — |
| Payable for fund shares repurchased | 25,436 | 36,642 | 27,683 |
| Payable to affiliates | |||
| Accounting and legal services fees | 857 | 697 | 723 |
| Trustees' fees | 45 | 45 | 45 |
| Other liabilities and accrued expenses | 33,562 | 33,668 | 33,145 |
| Total liabilities | 193,358 | 552,263 | 341,687 |
| Net assets | $24,439,426 | $23,113,093 | $24,520,932 |
| Net assets consist of | |||
| Paid-in capital | $24,295,557 | $23,133,509 | $24,387,840 |
| Total distributable earnings (loss) | 143,869 | (20,416) | 133,092 |
| Net assets | $24,439,426 | $23,113,093 | $24,520,932 |
| Unaffiliated investments, at cost | $23,654,107 | $21,887,976 | $24,196,612 |
| Total investments, at cost | 23,654,107 | 21,887,976 | 24,196,612 |
| Net asset value per share | |||
| Based on net asset values and shares outstanding-the portfolio has an unlimited number of shares authorized with no par value. | |||
| Net assets | $24,439,426 | $23,113,093 | $24,520,932 |
| Shares outstanding | 2,364,297 | 2,345,963 | 2,410,419 |
| Net asset value per share | $10.34 | $9.85 | $10.17 |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK MANAGED ACCOUNT SHARES | 31 |
STATEMENTS OF OPERATIONS For the year ended 5-31-21
| Managed Account Shares Investment-Grade Corporate Bond Portfolio | Managed Account Shares Non-Investment-Grade Corporate Bond Portfolio | Managed Account Shares Securitized Debt Portfolio | |
| Investment income | |||
| Interest | $449,354 | $629,089 | $350,065 |
| Dividends from unaffiliated investments | 563 | 5,030 | — |
| Total investment income | 449,917 | 634,119 | 350,065 |
| Expenses | |||
| Investment management fees | 103,993 | 80,531 | 88,798 |
| Accounting and legal services fees | 2,967 | 2,298 | 2,497 |
| Trustees' fees | 403 | 349 | 371 |
| Custodian fees | 1,871 | 2,036 | 1,745 |
| State registration fees | 20,929 | 20,787 | 20,866 |
| Printing and postage | 21,049 | 21,019 | 21,050 |
| Professional fees | 30,303 | 29,982 | 29,163 |
| Other | 12,239 | 12,169 | 12,200 |
| Total expenses | 193,754 | 169,171 | 176,690 |
| Less expense reductions | (193,754) | (169,171) | (176,690) |
| Net expenses | — | — | — |
| Net investment income | 449,917 | 634,119 | 350,065 |
| Realized and unrealized gain (loss) | |||
| Net realized gain (loss) on | |||
| Unaffiliated investments | 178,218 | (61,842) | 65,834 |
| Change in net unrealized appreciation (depreciation) of | |||
| Unaffiliated investments | 116,449 | 863,545 | 137,897 |
| Net realized and unrealized gain | 294,667 | 801,703 | 203,731 |
| Increase in net assets from operations | $744,584 | $1,435,822 | $553,796 |
| 32 | JOHN HANCOCK MANAGED ACCOUNT SHARES | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
STATEMENTS OF CHANGES IN NET
ASSETS
| Managed Account Shares Investment-Grade Corporate Bond Portfolio | Managed Account Shares Non-Investment-Grade Corporate Bond Portfolio | Managed Account Shares Securitized Debt Portfolio | ||||
| Increase (decrease) in net assets |
Year ended
5-31-21 |
Period ended
5-31-201 |
Year ended
5-31-21 |
Period ended
5-31-201 |
Year ended
5-31-21 |
Period ended
5-31-201 |
| From operations | ||||||
| Net investment income | $449,917 | $243,199 | $634,119 | $416,308 | $350,065 | $202,048 |
| Net realized gain (loss) | 178,218 | (21,704) | (61,842) | (222,864) | 65,834 | 10,755 |
| Change in net unrealized appreciation (depreciation) | 116,449 | 79,012 | 863,545 | (479,981) | 137,897 | (26,369) |
| Increase (decrease) in net assets resulting from operations | 744,584 | 300,507 | 1,435,822 | (286,537) | 553,796 | 186,434 |
| Distributions to shareholders | ||||||
| From net investment income and realized gain | (616,073) | (285,150) | (726,646) | (443,055) | (384,430) | (222,708) |
| Total distributions | (616,073) | (285,150) | (726,646) | (443,055) | (384,430) | (222,708) |
| From portfolio share transactions | 16,090,471 | 8,205,087 | 15,050,368 | 8,083,141 | 16,247,706 | 8,140,134 |
| Total increase | 16,218,982 | 8,220,444 | 15,759,544 | 7,353,549 | 16,417,072 | 8,103,860 |
| Net assets | ||||||
| Beginning of year | 8,220,444 | — | 7,353,549 | — | 8,103,860 | — |
| End of year | $24,439,426 | $8,220,444 | $23,113,093 | $7,353,549 | $24,520,932 | $8,103,860 |
| 1 | Period from 7-9-19 (commencement of operations) to 5-31-20. |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK MANAGED ACCOUNT SHARES | 33 |
Financial Highlights
MANAGED ACCOUNT SHARES
INVESTMENT-GRADE CORPORATE BOND PORTFOLIO
| Period ended | 5-31-21 | 5-31-201 |
| Per share operating performance | ||
| Net asset value, beginning of period | $10.02 | $10.00 |
| Net investment income2 | 0.28 | 0.30 |
| Net realized and unrealized gain (loss) on investments | 0.43 | 0.07 |
| Total from investment operations | 0.71 | 0.37 |
| Less distributions | ||
| From net investment income | (0.38) | (0.35) |
| From net realized gain | (0.01) | — |
| Total distributions | (0.39) | (0.35) |
| Net asset value, end of period | $10.34 | $10.02 |
| Total return (%)3 | 7.09 | 3.744 |
| Ratios and supplemental data | ||
| Net assets, end of period (in millions) | $24 | $8 |
| Ratios (as a percentage of average net assets): | ||
| Expenses before reductions | 1.17 | 1.875 |
| Expenses including reductions | — | —5 |
| Net investment income | 2.73 | 3.335 |
| Portfolio turnover (%) | 58 | 39 |
| 1 | Period from 7-9-19 (commencement of operations) to 5-31-20. |
| 2 | Based on average daily shares outstanding. |
| 3 | Total returns would have been lower had certain expenses not been reduced during the period. |
| 4 | Not annualized. |
| 5 | Annualized. |
MANAGED ACCOUNT SHARES
NON-INVESTMENT-GRADE CORPORATE BOND PORTFOLIO
| Period ended | 5-31-21 | 5-31-201 |
| Per share operating performance | ||
| Net asset value, beginning of period | $9.10 | $10.00 |
| Net investment income2 | 0.48 | 0.52 |
| Net realized and unrealized gain (loss) on investments | 0.83 | (0.87) |
| Total from investment operations | 1.31 | (0.35) |
| Less distributions | ||
| From net investment income | (0.56) | (0.55) |
| Net asset value, end of period | $9.85 | $9.10 |
| Total return (%)3 | 14.69 | (3.62)4 |
| Ratios and supplemental data | ||
| Net assets, end of period (in millions) | $23 | $7 |
| Ratios (as a percentage of average net assets): | ||
| Expenses before reductions | 1.32 | 1.935 |
| Expenses including reductions | — | 0.005,6 |
| Net investment income | 4.96 | 6.035 |
| Portfolio turnover (%) | 34 | 40 |
| 1 | Period from 7-9-19 (commencement of operations) to 5-31-20. |
| 2 | Based on average daily shares outstanding. |
| 3 | Total returns would have been lower had certain expenses not been reduced during the period. |
| 4 | Not annualized. |
| 5 | Annualized. |
| 6 | Less than 0.005%. |
| 34 | JOHN HANCOCK MANAGED ACCOUNT SHARES | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
MANAGED ACCOUNT SHARES
SECURITIZED DEBT PORTFOLIO
| Period ended | 5-31-21 | 5-31-201 |
| Per share operating performance | ||
| Net asset value, beginning of period | $9.96 | $10.00 |
| Net investment income2 | 0.25 | 0.25 |
| Net realized and unrealized gain (loss) on investments | 0.25 | (0.02) |
| Total from investment operations | 0.50 | 0.23 |
| Less distributions | ||
| From net investment income | (0.27) | (0.27) |
| From net realized gain | (0.02) | — |
| Total distributions | (0.29) | (0.27) |
| Net asset value, end of period | $10.17 | $9.96 |
| Total return (%)3 | 5.02 | 2.374 |
| Ratios and supplemental data | ||
| Net assets, end of period (in millions) | $25 | $8 |
| Ratios (as a percentage of average net assets): | ||
| Expenses before reductions | 1.25 | 1.865 |
| Expenses including reductions | — | —5 |
| Net investment income | 2.48 | 2.805 |
| Portfolio turnover (%) | 32 | 41 |
| 1 | Period from 7-9-19 (commencement of operations) to 5-31-20. |
| 2 | Based on average daily shares outstanding. |
| 3 | Total returns would have been lower had certain expenses not been reduced during the period. |
| 4 | Not annualized. |
| 5 | Annualized. |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK MANAGED ACCOUNT SHARES | 35 |
Notes to financial statements
Note 1—Organization
John Hancock Managed Account Shares
Investment-Grade Corporate Bond Portfolio, John Hancock Managed Account Shares Non-Investment-Grade Corporate Bond Portfolio and John Hancock Managed Account Shares Securitized Debt Portfolio (collectively, John
Hancock Managed Account Shares Portfolios, or the Portfolios, and individually, Portfolio) are each a series of John Hancock Strategic Series (the Trust), an open-end management investment company organized as a
Massachusetts business trust and registered under the Investment Company Act of 1940, as amended (the 1940 Act). The investment objective for each portfolio is to seek high level of current income consistent with
prudent investment risk.
Shares of the portfolios may be
purchased only by or on behalf of separately managed account clients where the portfolios’ subadvisor or an affiliate of the subadvisor (each a “Managed Account Adviser”) has an agreement with the
managed account program sponsor (the “Program Sponsor”) (typically, a registered investment adviser or broker dealer), or directly with the client, to provide management or advisory services to the managed
account.
Note 2—Significant accounting policies
The financial statements have been
prepared in conformity with accounting principles generally accepted in the United States of America (US GAAP), which require management to make certain estimates and assumptions as of the date of the financial
statements. Actual results could differ from those estimates and those differences could be significant. The portfolios qualify as investment companies under Topic 946 of Accounting Standards Codification of US
GAAP.
Events or transactions occurring
after the end of the fiscal period through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting
policies of the portfolios:
Security valuation. Investments are stated at value as of the scheduled close of regular trading on the New York Stock Exchange (NYSE), normally at 4:00 P.M., Eastern Time. In case of emergency or other
disruption resulting in the NYSE not opening for trading or the NYSE closing at a time other than the regularly scheduled close, the net asset value (NAV) may be determined as of the regularly scheduled close of the
NYSE pursuant to the portfolios' Valuation Policies and Procedures.
In order to value the securities,
the portfolios use the following valuation techniques: Debt obligations are typically valued based on evaluated prices provided by an independent pricing vendor. Independent pricing vendors utilize matrix pricing,
which takes into account factors such as institutional-size trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics and other market data, as well as
broker supplied prices. Equity securities, including exchange-traded or closed-end funds, are typically valued at the last sale price or official closing price on the exchange or principal market where the security
trades. In the event there were no sales during the day or closing prices are not available, the securities are valued using the last available bid price.
In certain instances, the Pricing
Committee may determine to value equity securities using prices obtained from another exchange or market if trading on the exchange or market on which prices are typically obtained did not open for trading as
scheduled, or if trading closed earlier than scheduled, and trading occurred as normal on another exchange or market.
Other portfolio securities and
assets, for which reliable market quotations are not readily available, are valued at fair value as determined in good faith by the portfolios' Pricing Committee following procedures established by the Board of
Trustees. The frequency with which these fair valuation procedures are used cannot be predicted and fair value of securities may differ significantly from the value that would have been used had a ready market for
such securities existed.
The portfolios use a three-tier
hierarchy to prioritize the pricing assumptions, referred to as inputs, used in valuation techniques to measure fair value. Level 1 includes securities valued using quoted prices in active markets for identical
securities, including registered investment companies. Level 2 includes securities valued using other significant observable inputs. Observable inputs may include quoted prices for similar securities, interest rates,
prepayment speeds and credit risk. Prices for securities valued using these inputs are received from independent pricing vendors and brokers and are based on an evaluation of the inputs described. Level 3 includes
securities valued using significant unobservable inputs when market prices are not readily available or reliable, including the portfolios' 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 portfolios' investments as of May 31, 2021, by major security category or type:
|
Total
value at 5-31-21 |
Level 1
quoted price |
Level 2
significant observable inputs |
Level 3
significant unobservable inputs |
|
| Managed Account Shares Investment-Grade Corporate Bond Portfolio | ||||
| Investments in securities: | ||||
| Assets | ||||
| Foreign government obligations | $231,003 | — | $231,003 | — |
| Corporate bonds | 23,221,729 | — | 23,221,729 | — |
| Municipal bonds | 388,594 | — | 388,594 | — |
| Common stocks | 4,975 | $4,975 | — | — |
| Preferred securities | 3,267 | 3,267 | — | — |
| Total investments in securities | $23,849,568 | $8,242 | $23,841,326 | — |
| 36 | JOHN HANCOCK MANAGED ACCOUNT SHARES | ANNUAL REPORT |
|
Total
value at 5-31-21 |
Level 1
quoted price |
Level 2
significant observable inputs |
Level 3
significant unobservable inputs |
|
| Managed Account Shares Non-Investment-Grade Corporate Bond Portfolio | ||||
| Investments in securities: | ||||
| Assets | ||||
| Foreign government obligations | $126,171 | — | $126,171 | — |
| Corporate bonds | 21,891,291 | — | 21,891,291 | — |
| Term loans | 109,450 | — | 109,450 | — |
| Preferred securities | 144,628 | $144,628 | — | — |
| Total investments in securities | $22,271,540 | $144,628 | $22,126,912 | — |
| Managed Account Shares Securitized Debt Portfolio | ||||
| Investments in securities: | ||||
| Assets | ||||
| Collateralized mortgage obligations | $7,174,908 | — | $7,174,908 | — |
| Asset backed securities | 17,133,232 | — | 17,133,232 | — |
| Total investments in securities | $24,308,140 | — | $24,308,140 | — |
Mortgage and asset backed
securities. The portfolios 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 portfolios having to reinvest the proceeds in lower yielding securities, effectively reducing the portfolios' 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 portfolios' 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 portfolios are 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. Dividend income
is recorded on ex-date, except for dividends of certain foreign securities where the dividend may not be known until after the ex-date. In those cases, dividend income, net of withholding taxes, is recorded when the
portfolio becomes aware of the dividends. Non-cash dividends, if any, are recorded at the fair market value of the securities received. Gains and losses on securities sold are determined on the basis of identified
cost and may include proceeds from litigation.
Foreign investing. Assets, including investments, and liabilities denominated in foreign currencies are translated into U.S. dollar values each day at the prevailing exchange rate. Purchases and sales of
securities, income and expenses are translated into U.S. dollars at the prevailing exchange rate on the date of the transaction. The effect of changes in foreign currency exchange rates on the value of securities is
reflected as a component of the realized and unrealized gains (losses) on investments. Foreign investments are subject to a decline in the value of a foreign currency versus the U.S. dollar, which reduces the dollar
value of securities denominated in that currency.
Portfolios that invest
internationally generally carry more risk than portfolios that invest strictly in U.S. securities. Risks can result from differences in economic and political conditions, regulations, market practices (including
higher transaction costs), accounting standards and other factors.
Overdraft. The portfolios 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 portfolios' custodian agreement, the custodian may loan money to the portfolios to make properly authorized payments. The portfolios are 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 portfolio property that is not otherwise segregated or pledged, to the extent of any overdraft,
and to the maximum extent permitted by law. Overdrafts at period end, if any, are presented under the caption Due to custodian in the Statements of assets and liabilities.
Line of credit. Effective June 25, 2020, the portfolios 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 $1 billion unsecured committed line of credit. Excluding commitments designated for a certain fund and subject to the needs of all other affiliated funds, a portfolio can borrow up to an aggregate
commitment amount of $850 million, subject to asset coverage and other
| ANNUAL REPORT | JOHN HANCOCK MANAGED ACCOUNT SHARES | 37 |
limitations as specified in the agreement. Each
participating portfolio paid an upfront fee in connection with this line of credit agreement, which is charged based on a combination of fixed and asset-based allocations and amortized over 365 days. Prior to June 25,
2020, the portfolios and other affiliated funds had a similar agreement that enabled them to participate in a $750 million unsecured committed line of credit. A commitment fee payable at the end of each calendar
quarter, based on the average daily unused portion of each line of credit, is charged to each participating portfolio based on a combination of fixed and asset-based allocations and is reflected in Other expenses on
the Statements of operations. For the year ended May 31, 2021, the portfolios had no borrowings under the line of credit.
Commitment fees, including upfront
fees, for the year ended May 31, 2021 were as follows:
| Portfolio | Commitment fee |
| Managed Account Shares Investment-Grade Corporate Bond Portfolio | $5,657 |
| Managed Account Shares Non-Investment-Grade Corporate Bond Portfolio | 5,641 |
| Managed Account Shares Securitized Debt Portfolio | 5,647 |
Expenses. Within the John Hancock group of funds complex, expenses that are directly attributable to an individual portfolio are allocated to such portfolio. Expenses that are not readily
attributable to a specific portfolio are allocated among all portfolios in an equitable manner, taking into consideration, among other things, the nature and type of expense and the portfolios' relative net assets.
Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Federal income taxes. Each portfolio 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, 2021, certain portfolios have capital loss carryforwards available to offset future net realized capital gains. These carryforwards do not expire. The following table details the capital loss carryforwards
available as of May 31, 2021:
| No Expiration Date | ||
| Portfolio | Short Term | Long Term |
| Managed Account Shares Non-Investment-Grade Corporate Bond Portfolio | $300,832 | $15,563 |
As of May 31, 2021, the portfolios
had no uncertain tax positions that would require financial statement recognition, derecognition or disclosure. The portfolios' federal tax returns are subject to examination by the Internal Revenue Service for a
period of three years.
For federal income tax purposes, the
costs of investments owned on May 31, 2021, including short-term investments, were as follows:
| Portfolio |
Aggregate
cost |
Unrealized
appreciation |
Unrealized
(depreciation) |
Net unrealized
appreciation/ (depreciation) |
| Managed Account Shares Investment-Grade Corporate Bond Portfolio | $23,750,998 | $390,383 | $(291,813) | $98,570 |
| Managed Account Shares Non-Investment-Grade Corporate Bond Portfolio | 21,971,765 | 525,908 | (226,133) | 299,775 |
| Managed Account Shares Securitized Debt Portfolio | 24,217,664 | 146,937 | (56,461) | 90,476 |
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 portfolios generally declare dividends daily and pay them monthly.
Capital gain distributions, if any, are typically distributed annually.
The tax character of distributions
for the year ended May 31, 2021 was as follows:
| Portfolio |
Ordinary
Income |
Long Term
Capital Gains |
Total |
| Managed Account Shares Investment-Grade Corporate Bond Portfolio | $591,271 | $24,802 | $616,073 |
| Managed Account Shares Non-Investment-Grade Corporate Bond Portfolio | 726,646 | — | 726,646 |
| Managed Account Shares Securitized Debt Portfolio | 365,927 | 18,503 | 384,430 |
The tax character of distributions
for the period ended May 31, 2020 was as follows:
| Portfolio |
Ordinary
Income |
| Managed Account Shares Investment-Grade Corporate Bond Portfolio | $285,150 |
| Managed Account Shares Non-Investment-Grade Corporate Bond Portfolio | 443,055 |
| Managed Account Shares Securitized Debt Portfolio | 222,708 |
As of May 31, 2021, the components
of distributable earnings on a tax basis were as follows:
| Portfolio |
Undistributed
Ordinary Income |
Undistributed
Long Term Capital Gains |
| Managed Account Shares Investment-Grade Corporate Bond Portfolio | $56,024 | $66,499 |
| Managed Account Shares Non-Investment-Grade Corporate Bond Portfolio | 95,044 | — |
| Managed Account Shares Securitized Debt Portfolio | 65,282 | 20,332 |
| 38 | JOHN HANCOCK MANAGED ACCOUNT SHARES | ANNUAL REPORT |
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
portfolios' 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 distributions payable, amortization and accretion on debt securities.
Note 3—Guarantees and indemnifications
Under the Trust's organizational
documents, its Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust, including the portfolios. Additionally, in the normal course of business,
the Trust enters into contracts with service providers that contain general indemnification clauses. The Trust's maximum exposure under these arrangements is unknown, as this would involve future claims that may be
made against the Trust that have not yet occurred. The risk of material loss from such claims is considered remote.
Note 4—Fees and transactions with affiliates
John Hancock Investment Management
LLC (the Advisor) serves as investment advisor for the portfolios. John Hancock Investment Management Distributors LLC (the Distributor), an affiliate of the Advisor, serves as principal underwriter of the portfolios.
The Advisor and the Distributor are indirect, principally owned subsidiaries of Manulife Financial Corporation.
Management fee. The portfolios have an investment management agreement with the Advisor under which the portfolios pay a daily management fee to the Advisor equivalent on an annual basis to the sum of
0.63% of the portfolios' average daily net assets. The Advisor has a subadvisory agreement with Manulife Investment Management (US) LLC, an indirectly owned subsidiary of Manulife Financial Corporation and an
affiliate of the Advisor. The portfolios are not responsible for payment of the subadvisory fees.
The Advisor has contractually agreed
to waive or reimburse all of the portfolios’ operating expenses. Expenses, means all expenses, excluding taxes, brokerage commissions, interest expense, litigation and indemnification expenses and other
extraordinary expenses not incurred in the ordinary course of the portfolios’ business, borrowing costs, prime brokerage fees, acquired fund fees and expenses paid indirectly. This agreement expires on September
30, 2022, unless renewed by mutual agreement of the portfolios and Advisor based upon a determination that this is appropriate under the circumstances at that time.
The portfolios are an integral part
of a separately managed account program, and the portfolios’ manager, the portfolios’ subadvisor or their affiliates will be compensated directly or indirectly by separately managed account program
sponsors or program participants for managed account advisory services. Participants in a separately managed account program pay a “wrap” fee to the sponsor of the program. Participants pay no additional
fees or expenses to purchase shares of the portfolios.
For the year ended May 31, 2021, the
expense reductions described above amounted to the following:
| Portfolio | Expense Reductions | |
| Managed Account Shares Investment-Grade Corporate Bond Portfolio | $193,754 | |
| Managed Account Shares Non-Investment-Grade Corporate Bond Portfolio | 169,171 | |
| Managed Account Shares Securitized Debt Portfolio | 176,690 |
Expenses waived or reimbursed in
the current fiscal period are not subject to recapture in future fiscal periods.
The investment management fees,
including the impact of the waivers and reimbursements as described above, incurred for the year ended May 31, 2021, were equivalent to a net annual effective rate of 0.00% of each portfolio's average daily net
assets.
Accounting and legal services. Pursuant to a service agreement, the portfolios reimburse the Advisor for all expenses associated with providing the administrative, financial, legal, compliance, accounting and
recordkeeping services to the portfolios, including the preparation of all tax returns, periodic reports to shareholders and regulatory reports, among other services. These accounting and legal services fees incurred,
for the year ended May 31, 2021, amounted to an annual rate of 0.02% of the portfolios' average daily net assets. For the year ended May 31, 2021, these fees have been waived by the Advisor.
Transfer agent fees. The portfolios have a 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, based on the average daily net assets. For the year ended May 31, 2021, the portfolios did not incur any
transfer agent fees.
Trustee expenses. The portfolios compensate each Trustee who is not an employee of the Advisor or its affiliates. The costs of paying Trustee compensation and expenses are allocated to each portfolio based
on their net assets relative to other funds within the John Hancock group of funds complex.
| ANNUAL REPORT | JOHN HANCOCK MANAGED ACCOUNT SHARES | 39 |
Note 5—Portfolio share transactions
Transactions in portfolios' shares
for the year ended May 31, 2021 and period ended May 31, 2020 were as follows:
| Year Ended 5-31-21 | Period Ended 5-31-201 | |||
| Shares | Amount | Shares | Amount | |
| Managed Account Shares Investment-Grade Corporate Bond Portfolio | ||||
| Sold | 2,195,888 | $22,853,511 | 820,258 | $8,205,087 |
| Repurchased | (651,849) | (6,763,040) | — | — |
| Net increase | 1,544,039 | $16,090,471 | 820,258 | $8,205,087 |
| Total net increase | 1,544,039 | $16,090,471 | 820,258 | $8,205,087 |
| Year Ended 5-31-21 | Period Ended 5-31-201 | |||
| Shares | Amount | Shares | Amount | |
| Managed Account Shares Non-Investment-Grade Corporate Bond Portfolio | ||||
| Sold | 1,669,671 | $16,346,965 | 808,388 | $8,083,141 |
| Repurchased | (132,096) | (1,296,597) | — | — |
| Net increase | 1,537,575 | $15,050,368 | 808,388 | $8,083,141 |
| Total net increase | 1,537,575 | $15,050,368 | 808,388 | $8,083,141 |
| Year Ended 5-31-21 | Period Ended 5-31-201 | |||
| Shares | Amount | Shares | Amount | |
| Managed Account Shares Securitized Debt Portfolio | ||||
| Sold | 1,779,818 | $18,114,127 | 814,478 | $8,145,220 |
| Repurchased | (183,369) | (1,866,421) | (508) | (5,086) |
| Net increase | 1,596,449 | $16,247,706 | 813,970 | $8,140,134 |
| Total net increase | 1,596,449 | $16,247,706 | 813,970 | $8,140,134 |
| 1 | Period from 7-9-19 (commencement of operations) to 5-31-20. |
Affiliates of the portfolios owned
34%, 34%, and 33% of shares of Managed Account Shares Investment-Grade Corporate Bond Portfolio, Managed Account Shares Non-Investment-Grade Corporate Bond Portfolio and Managed Account Shares Securitized Debt
Portfolio, respectively, on May 31, 2021. Such concentration of shareholders’ capital could have a material effect on the portfolios if such shareholders redeem from the portfolios.
Note 6—Purchase and sale of securities
Purchases and sales of securities,
other than short-term investments, amounted to the following for the year ended May 31, 2021:
| Portfolio | Purchases | Sales |
| Managed Account Shares Investment-Grade Corporate Bond Portfolio | $25,134,816 | $9,499,394 |
| Managed Account Shares Non-Investment-Grade Corporate Bond Portfolio | 18,688,521 | 4,312,759 |
| Managed Account Shares Securitized Debt Portfolio | 20,670,412 | 4,483,112 |
Note 7—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. As market participants transition away from LIBOR, LIBOR’s
usefulness may deteriorate. 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.
The ICE Benchmark Administration
Limited, the administrator of LIBOR, is expected to cease publishing most LIBOR maturities, including some US LIBOR maturities, on December 31, 2021, and the remaining and most liquid US LIBOR maturities on June 30,
2023. It is expected that market participants will transition to the use of alternative reference or benchmark rates before the end of 2021. Regulators have encouraged the development and adoption of alternative rates
such as the Secured Overnight Financing Rate (“SOFR”), which is a broad measure of secured overnight US Treasury repo rates, but there is no definitive information regarding the future utilization of any
particular replacement rate.
The impact on the transition away
from LIBOR referenced financial instruments remains uncertain. It is expected that market participants will amend such financial instruments to include fallback provisions and other measures that contemplate the
discontinuation of LIBOR. To facilitate the transition of legacy derivatives contracts referencing LIBOR, the International Swaps and Derivatives Association, Inc. launched a protocol to incorporate fallback
provisions. There are obstacles to converting
| 40 | JOHN HANCOCK MANAGED ACCOUNT SHARES | ANNUAL REPORT |
certain longer term securities to a new benchmark
or benchmarks and the effectiveness of one versus multiple alternative reference rates has not been determined. Certain proposed replacement rates, such as SOFR, are materially different from LIBOR, and will require
changes to the applicable spreads. Furthermore, the risks associated with the conversion from LIBOR may be exacerbated if an orderly transition is not completed in a timely manner.
Note 8—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, which may
lead to less liquidity in certain instruments, industries, sectors or the markets generally, and may ultimately affect portfolio performance.
Note 9—New accounting pronouncement
In March 2020, the Financial
Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU), ASU 2020-04, which provides optional, temporary relief with respect to the financial reporting of contracts subject to certain types of
modifications due to the planned discontinuation of the LIBOR and other IBOR-based reference rates as of the end of 2021. The temporary relief provided by ASU 2020-04 is effective for certain reference rate-related
contract modifications that occur during the period March 12, 2020 through December 31, 2022. Management is currently evaluating the potential impact of ASU 2020-04 to the financial statements.
| ANNUAL REPORT | JOHN HANCOCK MANAGED ACCOUNT SHARES | 41 |
Report of Independent Registered
Public Accounting Firm
To the Board of Trustees of John
Hancock Strategic Series and Shareholders of John Hancock Managed Account Shares Investment-Grade Corporate Bond Portfolio, John Hancock Managed Account Shares Non-Investment-Grade Corporate Bond Portfolio and John
Hancock Managed Account Shares Securitized Debt Portfolio
Opinion on the Financial Statements
We have audited the accompanying
statements of assets and liabilities, including the portfolios’ investments, of John Hancock Managed Account Shares Investment-Grade Corporate Bond Portfolio, John Hancock Managed Account Shares
Non-Investment-Grade Corporate Bond Portfolio and John Hancock Managed Account Shares Securitized Debt Portfolio (three of the portfolios constituting John Hancock Strategic Series, hereafter collectively referred to
as the "Portfolios") as of May 31, 2021, the related statements of operations for the year ended May 31, 2021 and the statements of changes in net assets and the financial highlights for the year ended May 31, 2021
and for the period July 9, 2019 (commencement of operations) through May 31, 2020, including the related notes (collectively referred to as the “financial statements”). In our opinion, the financial
statements present fairly, in all material respects, the financial position of each of the Portfolios as of May 31 2021, the results of each of their operations for the year ended May 31, 2021, and the changes in
their net assets and each of the financial highlights for the year ended May 31, 2021 and for the period July 9, 2019 (commencement of operations) through May 31, 2020 in conformity with accounting principles
generally accepted in the United States of America.
Basis for Opinion
These financial statements are the
responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public
Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of
the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these
financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement, whether due to error or fraud.
Our audits included performing
procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test
basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating
the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of May 31, 2021 by correspondence with the custodian and brokers; when replies were not received from
brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.
/s/ PricewaterhouseCoopers LLP
Boston, Massachusetts
July 12, 2021
We have served as the auditor of one
or more investment companies in the John Hancock group of funds since 1988.
| 42 | JOHN HANCOCK MANAGED ACCOUNT SHARES | ANNUAL REPORT |
Tax information (Unaudited)
For federal income tax purposes, the
following information is furnished with respect to the distributions of the portfolios, if any, paid during its taxable year ended May 31, 2021.
Each portfolio reports the maximum
amount allowable of its net taxable income as eligible for the corporate dividends-received deduction.
Each portfolio reports the maximum
amount allowable of its net taxable income as qualified dividend income as provided in the Jobs and Growth Tax Relief Reconciliation Act of 2003.
Each portfolio reports the maximum
amount allowable of its Section 199A dividends as defined in Proposed Treasury Regulation §1.199A-3(d).
Long Term Capital Gains The portfolios below paid the following amounts in capital gain dividends.
| Portfolio | Long term capital gains |
| Managed Account Shares Investment-Grade Corporate Bond Portfolio | $24,802 |
| Managed Account Shares Securitized Debt Portfolio | 18,503 |
Eligible shareholders will be mailed
a 2021 Form 1099-DIV in early 2022. This will reflect the tax character of all distributions paid in calendar year 2021.
Please consult a tax advisor regarding
the tax consequences of your investment in the portfolio.
| ANNUAL REPORT | JOHN HANCOCK MANAGED ACCOUNT SHARES | 43 |
STATEMENT REGARDING LIQUIDITY
RISK MANAGEMENT
Operation of the Liquidity Risk
Management Program
This section describes operation and
effectiveness of the Liquidity Risk Management Program (LRMP) established in accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the Liquidity Rule). The Board of Trustees (the Board) of
each Fund in the John Hancock Group of Funds (each a Fund and collectively, the Funds) that is subject to the requirements of the Liquidity Rule has appointed John Hancock Investment Management LLC and John Hancock
Variable Trust Advisers LLC (together, the Advisor) to serve as Administrator of the LRMP with respect to each of the Funds, including John Hancock Managed Account Shares Investment-Grade Corporate Bond Portfolio,
John Hancock Managed Account Shares Non-Investment-Grade Corporate Bond Portfolio and John Hancock Managed Account Shares Securitized Debt Portfolio, subject to the oversight of the Board. In order to provide a
mechanism and process to perform the functions necessary to administer the LRMP, the Advisor established the Liquidity Risk Management Committee (the Committee). The Funds' subadvisor(s), Manulife Investment
Management (US) LLC (the Subadvisor) executes the day-to-day investment management and security-level activities of the Fund in accordance with the requirements of the LRMP, subject to the supervision of the Advisor
and the Board.
The Committee holds monthly meetings
to: (1) review the day-to-day operations of the LRMP; (2) review and approve month end liquidity classifications; (3) review quarterly testing and determinations, as applicable; and (4) review other LRMP related
material. The Advisor also conducts daily, monthly, quarterly, and annual quantitative and qualitative assessments of each subadvisor to a Fund that is subject to the requirements of the Liquidity Rule and is a part
of the LRMP to monitor investment performance issues, risks and trends. In addition, the Advisor may conduct ad-hoc reviews and meetings with subadvisors as issues and trends are identified, including potential
liquidity and valuation issues. The Committee also monitors global events, such as the COVID-19 Coronavirus, that could impact the markets and liquidity of portfolio investments and their classifications.
The Committee provided the Board at
a meeting held by videoconference on March 23-25, 2021 with a written report which addressed the Committee’s assessment of the adequacy and effectiveness of the implementation and operation of the LRMP and any
material changes to the LRMP. The report, which covered the period January 1, 2020 through December 31, 2020, included an assessment of important aspects of the LRMP including, but not limited to: (1) Highly Liquid
Investment Minimum (HLIM) determination; (2) Compliance with the 15% limit on illiquid investments; (3) Reasonably Anticipated Trade Size (RATS) determination; (4) Security-level liquidity classifications; (5)
Liquidity risk assessment; and (6) Operation of the Fund’s Redemption-In-Kind Procedures. Additionally, the report included a discussion of notable changes and enhancements to the LRMP implemented during
2020.
The report also covered material
liquidity matters which occurred or were reported during this period applicable to the Fund, if any, and the Committee’s actions to address such matters.
The report stated, in relevant part,
that during the period covered by the report:
| • | The Fund’s investment strategy remained appropriate for an open-end fund structure; |
| • | The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund; |
| • | The Fund did not report any breaches of the 15% limit on illiquid investments that would require reporting to the Securities and Exchange Commission; |
| • | The Fund continued to qualify as a Primarily Highly Liquid Fund under the Liquidity Rule and therefore is not required to establish a HLIM; and |
| • | The Chief Compliance Officer’s office performed audit testing of the LRMP which resulted in an assessment that the LRMP’s control environment was deemed to be operating effectively and in compliance with the Board approved procedures. |
Adequacy and Effectiveness
Based on the review and assessment
conducted by the Committee, the Committee has determined that the LRMP has been implemented, and is operating in a manner that is adequate and effective at assessing and managing the liquidity risk of each Fund.
| 44 | JOHN HANCOCK MANAGED ACCOUNT SHARES | ANNUAL REPORT |
Trustees and Officers
This chart
provides information about the Trustees and Officers who oversee your John Hancock fund. Officers elected by the Trustees manage the day-to-day operations of the fund and execute policies formulated by the
Trustees.
| ANNUAL REPORT | JOHN HANCOCK MANAGED ACCOUNT SHARES | 45 |
| 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 |
| Frances G. Rathke,2,* Born: 1960 | 2020 | 190 |
| Trustee | ||
| Director, Northern New England Energy Corporation (since 2017); Director, Audit Committee Chair and Compensation Committee Member, Green Mountain Power Corporation (since 2016); Director, Treasurer and Finance & Audit Committee Chair, Flynn Center for Performing Arts (since 2016); Director, Audit Committee Chair and Compensation Committee Member, Planet Fitness (since 2016); Director, Citizen Cider, Inc. (high-end hard cider and hard seltzer company) (since 2016); Chief Financial Officer and Treasurer, Keurig Green Mountain, Inc. (2003-retired 2015); Independent Financial Consultant, Frances Rathke Consulting (strategic and financial consulting services) (2001-2003); Chief Financial Officer and Secretary, Ben & Jerry’s Homemade, Inc. (1989-2000, including prior positions); Senior Manager, Coopers & Lybrand, LLC (independent public accounting firm) (1982-1989). Trustee of various trusts within the John Hancock Fund Complex (since 2020). | ||
| Gregory A. Russo, Born: 1949 | 2009 | 190 |
| 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). | ||
| 46 | JOHN HANCOCK MANAGED ACCOUNT SHARES | ANNUAL REPORT |
| Principal officers who are not Trustees (continued) | |
|
Name, year of birth
Position(s) held with Trust Principal occupation(s) during past 5 years |
Current
Position(s) with the Trust since |
| Christopher (Kit) Sechler, Born: 1973 | 2018 |
| Secretary and Chief Legal Officer | |
| Vice President and Deputy Chief Counsel, John Hancock Investment Management (since 2015); Assistant Vice President and Senior Counsel (2009–2015), John Hancock Investment Management; Assistant Secretary of John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2009); Chief Legal Officer and Secretary of various trusts within the John Hancock Fund Complex (since 2009, including prior positions). | |
| Trevor Swanberg, Born: 1979 | 2020 |
| Chief Compliance Officer | |
| Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2020); Deputy Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (2019–2020); Assistant Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (2016–2019); Vice President, State Street Global Advisors (2015–2016); Chief Compliance Officer of various trusts within the John Hancock Fund Complex (since 2016, including prior positions). | |
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 800-247-0278.
| 1 | Each Trustee holds office until his or her successor is elected and qualified, or until the Trustee’s death, retirement, resignation, or removal. |
| 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. |
| * | Appointed as Independent Trustee effective as of September 15, 2020. |
| ANNUAL REPORT | JOHN HANCOCK MANAGED ACCOUNT SHARES | 47 |
More information
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
Frances G. Rathke*,1
Gregory A. Russo
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
Frances G. Rathke*,1
Gregory A. Russo
Officers
Andrew G. Arnott
President
President
Charles A. Rizzo
Chief Financial Officer
Chief Financial Officer
Salvatore Schiavone
Treasurer
Treasurer
Christopher (Kit) Sechler
Secretary and Chief Legal Officer
Secretary and Chief Legal Officer
Trevor Swanberg2
Chief Compliance Officer
Chief Compliance Officer
* Member of the Audit Committee
† Non-Independent Trustee
1 Appointed as Independent Trustee effective as of September 15, 2020
2 Effective July 31, 2020
Investment advisor
John Hancock Investment Management LLC
Subadvisor
Manulife Investment Management (US) LLC
Portfolio Managers
Jeffrey N. Given, CFA
Howard C. Greene, 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
The portfolios' 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 portfolios' 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 portfolios' 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 portfolio details available on our website at jhinvestments.com or by calling 800-247-0278.
| 48 | JOHN HANCOCK MANAGED ACCOUNT SHARES | ANNUAL REPORT |
John Hancock family of funds
U.S. 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. Growth
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
FIXED-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 FUNDS
Absolute Return Currency
Alternative Asset Allocation
Alternative Risk Premia
Disciplined Alternative Yield
Diversified Macro
Infrastructure
Multi-Asset Absolute Return
Real Estate Securities
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 Investments at 800-247-0278, or visit our website at jhinvestments.com. Please read the prospectus carefully before investing or sending money.
ASSET ALLOCATION/TARGET DATE
FUNDS
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 Corporate Bond ETF
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
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 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 Manulife Investment Management (US) LLC or Dimensional Fund Advisors LP. Foreside is not affiliated with John Hancock Investment Management Distributors LLC, Manulife
Investment Management (US) 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.
A trusted brand
John Hancock Investment Management
is a premier asset manager
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.
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.
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.
a diverse set of investments backed by some of the world’s best
managers, along with strong risk-adjusted returns across asset classes.
“A trusted brand” is
based on a survey of 6,651 respondents conducted by Medallia between 3/18/20 and 5/13/20.
John Hancock Investment Management
Distributors LLC, Member FINRA, SIPC
200 Berkeley Street, Boston, MA 02116-5010, 800-247-0278, jhinvestments.com
200 Berkeley Street, Boston, MA 02116-5010, 800-247-0278, jhinvestments.com
Manulife, Manulife Investment
Management, Stylized M Design, and Manulife Investment Management & Stylized M Design are trademarks of The Manufacturers Life Insurance Company and are used by its affiliates under license.
NOT FDIC INSURED. MAY LOSE VALUE. NO
BANK GUARANTEE. NOT INSURED BY ANY GOVERNMENT AGENCY.
This report is for the information
of the shareholders of John Hancock Managed Account Shares. It is not authorized for distribution to prospective investors unless preceded or accompanied by a prospectus.
| MF1674198 | JHMASA 5/21 |
7/2021
ITEM 2. CODE OF ETHICS.
As of the end of the year, May 31, 2021, the registrant has adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies to its Chief Executive Officer, Chief Financial Officer and Treasurer (respectively, the principal executive officer, the principal financial officer and the principal accounting officer, the "Covered Officers"). A copy of the code of ethics is filed as an exhibit to this Form N-CSR.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Peter S. Burgess is the audit committee financial expert and is "independent", pursuant to general instructions on Form N-CSR Item 3.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Audit Fees
The aggregate fees billed for professional services rendered by the principal accountant for the audits of the registrant's annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements amounted to the following for the fiscal years ended May 31, 2021 and 2020. These fees were billed to the registrant and were approved by the registrant's audit committee.
|
Fund |
May 31, 2021 |
|
May 31, 2020 |
||
|
John Hancock Income Fund |
$ |
72,491 |
$ |
|
76,606 |
|
John Hancock Managed Account Shares Investment-Grade |
|
|
|
|
|
|
Corporate Bond Portfolio |
|
14,000 |
|
|
14,000 |
|
John Hancock Managed Account Shares Non-Investment- |
|
|
|
|
|
|
Grade Corporate Bond Portfolio |
|
14,000 |
|
|
14,000 |
|
John Hancock Managed Account Shares Securitized Debt |
|
|
|
|
|
|
Portfolio |
|
14,000 |
|
|
14,000 |
|
Total |
$ |
114,491 |
|
$ |
118,606 |
(b) Audit-Related Services
Audit-related fees for assurance and related services by the principal accountant are billed to the registrant or to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser ("control affiliates") that provides ongoing services to the registrant. The nature of the services provided was affiliated service provider internal controls reviews. Amounts billed to the registrant were as follows:
|
Fund |
|
May 31, 2021 |
|
May 31, 2020 |
|
|
|
|
|
|
|
John Hancock Income Fund |
$ |
604 |
|
$ 591 |
|
John Hancock Managed Account Shares Investment-Grade |
|
|
|
|
|
Corporate Bond Portfolio |
|
604 |
|
591 |
|
John Hancock Managed Account Shares Non-Investment- |
|
|
|
|
|
Grade Corporate Bond Portfolio |
|
604 |
|
591 |
|
John Hancock Managed Account Shares Securitized Debt |
|
|
|
|
|
Portfolio |
|
604 |
|
591 |
|
Total |
$ |
2,416 |
$ |
2,364 |
Amounts billed to control affiliates were $116,000 and $116,467 for the fiscal years ended May 31, 2021 and 2020, respectively.
(c) Tax Fees
The aggregate fees billed for professional services rendered by the principal accountant for tax compliance, tax advice and tax planning ("tax fees") amounted to the following for the fiscal years ended May 31, 2021 and 2020. The nature of the services comprising the tax fees was the review of the registrant's tax returns and tax distribution requirements. These fees were billed to the registrant and were approved by the registrant's audit committee.
|
Fund |
May 31, 2021 |
May 31, 2020 |
||
|
John Hancock Income Fund |
$ |
3,940 |
$ |
3,940 |
|
John Hancock Managed Account Shares Investment-Grade |
|
|
|
|
|
Corporate Bond Portfolio |
|
1,000 |
|
1,000 |
|
John Hancock Managed Account Shares Non-Investment- |
|
|
|
|
|
Grade Corporate Bond Portfolio |
|
1,000 |
|
1,000 |
|
John Hancock Managed Account Shares Securitized Debt |
|
|
|
|
|
Portfolio |
|
1,000 |
|
1,000 |
|
Total |
$ |
6,940 |
$ |
6,940 |
(d) All Other Fees
The nature of the services comprising all other fees is advisory services provided to the investment manager. Other fees amounted to the following for the fiscal years ended May 31, 2021 and 2020:
|
Fund |
May 31, 2021 |
May 31, 2020 |
||
|
John Hancock Income Fund |
$ |
89 |
$ |
89 |
|
John Hancock Managed Account Shares Investment-Grade |
|
|
|
|
|
Corporate Bond Portfolio |
|
89 |
|
89 |
|
John Hancock Managed Account Shares Non-Investment- |
|
|
|
|
|
Grade Corporate Bond Portfolio |
|
89 |
|
89 |
|
John Hancock Managed Account Shares Securitized Debt |
|
|
|
|
|
Portfolio |
|
89 |
|
89 |
|
Total |
$ |
356 |
$ |
356 |
(e)(1) Audit Committee Pre-Approval Policies and Procedures:
The trust's Audit Committee must pre-approve all audit and non-audit services provided by the independent registered public accounting firm (the "Auditor") relating to the operations or financial reporting of the funds. Prior to the commencement of any audit or non-audit services to a fund, the Audit Committee reviews the services to determine whether they are appropriate and permissible under applicable law.
The trust's Audit Committee has adopted policies and procedures to, among other purposes, provide a framework for the Committee's consideration of audit-related and non-audit services by the Auditor. The policies and procedures require that any audit-related and non-audit service provided by the Auditor and any non-audit service provided by the Auditor to a fund service provider that relates directly to the operations and financial reporting of a fund are subject to approval by the Audit Committee before such service is provided. Audit-related services provided by the Auditor that are expected to exceed $25,000 per year/per fund are subject to specific pre- approval by the Audit Committee. Tax services provided by the Auditor that are expected to exceed $30,000 per year/per fund are subject to specific pre-approval by the Audit Committee.
All audit services, as well as the audit-related and non-audit services that are expected to exceed the amounts stated above, must be approved in advance of provision of the service by formal
resolution of the Audit Committee. At the regularly scheduled Audit Committee meetings, the Committee reviews a report summarizing the services, including fees, provided by the Auditor.
(e)(2) Services approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X:
Audit-Related Fees, Tax Fees and All Other Fees:
There were no amounts that were approved by the Audit Committee pursuant to the de minimis exception under Rule 2-01 of Regulation S-X.
(f)According to the registrant's principal accountant for the fiscal year ended May 31, 2021, the percentage of hours spent on the audit of the registrant's financial statements for the most recent fiscal year that were attributed to work performed by persons who were not full-time, permanent employees of principal accountant was less than 50%.
(g)The aggregate non-audit fees billed by the registrant's principal accountant for non-audit services rendered to the registrant and rendered to the registrant's control affiliates were $1,149,548 for the fiscal year ended May 31, 2021 and $1,020,294 for the fiscal year ended May 31, 2020
(h)The audit committee of the registrant has considered the non-audit services provided by the registrant's principal accountant to the control affiliates and has determined that the services that were not pre-approved are compatible with maintaining the principal accountant's independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
The registrant has a separately-designated standing audit committee comprised of independent trustees. The members of the audit committee are as follows:
Peter S. Burgess - Chairman
Charles L. Bardelis
Frances G. Rathke
ITEM 6. SCHEDULE OF INVESTMENTS.
(a)Not applicable.
(b)Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED- END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
The registrant has adopted procedures by which shareholders may recommend nominees to the registrant's Board of Trustees. A copy of the procedures is filed as an exhibit to this Form
N-CSR. See attached "John Hancock Funds – Nominating, Governance and Administration Committee Charter".
ITEM 11. CONTROLS AND PROCEDURES.
(a)Based upon their evaluation of the registrant's disclosure controls and procedures as conducted within 90 days of the filing date of this Form N-CSR, the registrant's principal executive officer and principal financial officer have concluded that those disclosure controls and procedures provide reasonable assurance that the material information required to be disclosed by the registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms.
(b)There were no changes in the registrant's internal control over financial reporting that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting.
ITEM 12. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 13. EXHIBITS.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
John Hancock Strategic Series
|
By: |
/s/ Andrew Arnott |
|
|
------------------------------ |
|
|
Andrew Arnott |
|
|
President |
|
Date: |
July 12, 2021 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
|
By: |
/s/ Andrew Arnott |
|
|
------------------------------- |
|
|
Andrew Arnott |
|
|
President |
|
Date: |
July 12, 2021 |
|
By: |
/s/ Charles A. Rizzo |
|
|
-------------------------------- |
|
|
Charles A. Rizzo |
|
|
Chief Financial Officer |
|
Date: |
July 12, 2021 |
