Certified Annual Shareholder Report for Management Investment Companies (n-csr)
12 Mayo 2023 - 9:22AM
Edgar (US Regulatory)
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 811-00560
John Hancock Investment Trust
(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: 617-543-9634
Date of fiscal year end: |
March 31 |
Date of reporting period: |
March 31, 2023 |
ITEM 1. REPORTS TO STOCKHOLDERS.
The Registrant prepared the following annual reports to shareholders for the period ended March 31, 2023:
•John Hancock Diversified Real Assets Fund
•John Hancock Fundamental Equity Income Fund
•John Hancock Mid Cap Growth Fund
Annual report
John Hancock
Diversified Real Assets Fund
Alternative
March 31, 2023
A message to shareholders
Dear shareholder,
Global equities lost ground
and experienced elevated volatility during the 12 months ended March 31, 2023. While economic growth remained in positive territory across most of the world, the aggressive central bank actions raised concerns that a
recession and a concurrent slowdown in corporate earnings would occur in 2023. A variety of other events weighed on sentiment throughout the period, including the Russian invasion of Ukraine, China’s extended
zero-COVID policy in place until the close of 2022, and the failure of several banks in the United States and in Europe.
Despite these headwinds, the
major global indexes finished well above their intraperiod lows of mid-October, with a number of countries climbing into positive territory during the first quarter of 2023. Notably, many European markets registered
gains even though the region was the epicenter for many of the key issues weighing on sentiment. On the other hand, the United States lagged as rising rates pressured the mega-cap technology stocks that make up the
bulk of its major indexes.
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
Global Head of Retail,
Manulife Investment Management
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
Diversified Real Assets Fund
| ANNUAL REPORT | JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND
| 1
|
INVESTMENT OBJECTIVE
The fund seeks a long-term total
return in excess of inflation.
AVERAGE ANNUAL TOTAL RETURNS AS
OF 3/31/2023 (%)
The MSCI World Index tracks the
performance of publicly traded large- and mid-cap stocks of developed-market companies.
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. Since-inception returns for the
Morningstar fund category average are not available.
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 DIVERSIFIED REAL ASSETS FUND | ANNUAL REPORT
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The real assets
category suffered a loss and underperformed the equity and fixed-income markets
The combination
of rising interest rates, concerns about slowing economic growth, and elevated investor risk aversion weighed on most areas in which the fund invests.
Energy stocks
were the only category to deliver a gain
The sector
performed well on the strength of robust cash flows, improving efficiency, and a continued expansion of share buybacks.
The fund
underperformed its benchmark, the MSCI World Index
Four of the
fund’s five underlying portfolios lagged their respective benchmarks, with international real estate being the one exception.
SECTOR COMPOSITION AS OF
3/31/2023 (% of net assets)
Notes about risk
The fund is subject to various
risks as described in the fund’s prospectus. Political tensions and armed conflicts, including the Russian invasion of Ukraine, and any resulting economic sanctions on entities and/or individuals of a particular
country could lead such a country into an economic recession. The 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. For more information, please refer to the “Principal risks” section of the prospectus.
| ANNUAL REPORT | JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND
| 3
|
Management’s discussion of fund
performance
How would you describe the market
environment during the 12 months ended March 31, 2023?
Most segments of the financial
markets experienced poor performance. Persistent inflation prompted global central banks to raise interest rates aggressively, which dampened the outlook for both economic growth and corporate earnings. Investor
sentiment deteriorated as a result, leading to weak performance even for asset categories that would ordinarily be expected to perform well in an inflationary environment.
The fund invests in five market
segments: energy stocks, metals and mining stocks, U.S. real estate investment trusts (REITs), non-U.S. REITs, and global infrastructure equities. Of these, the energy sector was the only category to produce a gain,
due in part to intensifying supply constraints in the months following Russia’s invasion of Ukraine. Although oil and natural gas prices both closed the period well off of their previous highs, energy stocks
held up well thanks to the combination of lower capital spending, producer discipline, and continued growth in both dividends and share buybacks.
Infrastructure stocks, while
finishing with negative returns, outpaced the larger real assets category. Metals and mining stocks lost ground amid concerns that slowing economic growth would crimp demand. REITs—both domestic and
TOP 10 HOLDINGS
AS OF 3/31/2023 (% of net assets)
|
Prologis, Inc.
| 3.7
|
Exxon Mobil Corp.
| 2.3
|
Equinix, Inc.
| 2.3
|
Freeport-McMoRan, Inc.
| 2.3
|
Shell PLC
| 2.0
|
BHP Group, Ltd., ADR
| 1.9
|
Chevron Corp.
| 1.8
|
Public Storage
| 1.6
|
BP PLC
| 1.4
|
Canadian Natural Resources, Ltd.
| 1.3
|
TOTAL
| 20.6
|
Cash and cash equivalents are not included.
|
COUNTRY COMPOSITION
AS OF 3/31/2023 (% of net assets)
|
United States
| 54.9
|
Canada
| 19.4
|
United Kingdom
| 6.8
|
Australia
| 3.9
|
Japan
| 3.1
|
France
| 2.6
|
Hong Kong
| 1.3
|
Norway
| 1.2
|
China
| 1.0
|
Other countries
| 5.8
|
TOTAL
| 100.0
|
4
| JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND | ANNUAL REPORT
|
|
international—came under pressure from
slower global growth, higher costs of capital, and the adverse effect rising bond yields.
What factors affected the
fund’s performance?
The fund’s energy stock
portfolio produced a positive return, but it lagged the broader sector to a modest degree. An underweight position in the largest integrated oil and gas producer, Exxon Mobil Corp., was the primary detractor. An
underweight in the exploration and production subsector also detracted, as did an overweight in equipment and services. Contributors included solar energy stocks First Solar, Inc. and Enphase Energy, Inc.
The metals and mining portfolio
posted a loss and lagged in relation to the sector as a whole, primarily due to stock selection. Underweights in BHP Group, Ltd. and Rio Tinto PLC hurt results, as did an overweight in Alcoa Corp.
The global infrastructure, U.S.
REIT, and non-U.S. REIT portfolios all finished with losses. The infrastructure portfolio was hurt by stock selection in the energy category. This shortfall was offset, to some extent, by favorable selection in
the utilities, communication services, and industrials sectors. The U.S. REIT strategy underperformed the sector benchmark due to selection in multi-family and warehouse/logistics REITs. Security selection in
specialized REITs and an underweight in the underperforming office sector contributed. The international real estate portfolio outperformed the sector benchmark behind favorable stock selection in real estate
operating companies. Selection in diversified REITs and an underweight in retail REITs detracted.
Diversified Real Assets Fund is
managed by a team of portfolio
managers across two different
asset managers.
The views expressed in
this report are exclusively those of the portfolio management teams at Manulife Investment Management (North America) Limited and Wellington Management Company LLP, and are subject to change. They are not meant as
investment advice. Please note that the holdings discussed in this report may not have been held by the fund for the entire period. Portfolio composition is subject to review in accordance with the fund’s
investment strategy and may vary in the future. Current and future portfolio holdings are subject to risk.
| ANNUAL REPORT | JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND
| 5
|
TOTAL RETURNS FOR THE PERIOD
ENDED MARCH 31, 2023
Average annual total returns (%)
with maximum sales charge
| Cumulative total returns (%)
with maximum sales charge
|
| 1-year
| 5-year
| Since
inception
(2-26-18)
| 5-year
| Since
inception
(2-26-18)
|
Class NAV1
| -10.55
| 6.13
| 6.01
| 34.63
| 34.63
|
Index†
| -7.02
| 8.01
| 7.17
| 47.00
| 42.29
|
Performance
figures assume all distributions have been reinvested. Sales charges are not applicable to Class NAV shares.
The expense ratios of the fund,
both net (including any fee waivers and/or expense limitations) and gross (excluding any fee waivers and/or expense limitations), are set forth according to the most recent publicly available prospectus for the fund
and may differ from those disclosed in the Financial highlights tables in this report. Net expenses reflect contractual fee waivers and expense limitations in effect until July 31, 2023 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 NAV
|
Gross (%)
| 0.91
|
Net (%)
| 0.85
|
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.
The performance table above and
the chart on the next page do not reflect the deduction of taxes that a shareholder would pay on the redemption of fund shares. The fund’s performance results reflect any applicable fee waivers or expense
reductions, without which the expenses would increase and results would have been less favorable.
† Index is the MSCI World Index.
See the following page for
footnotes.
6
| JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND | ANNUAL REPORT
|
|
This chart shows what happened to a
hypothetical $10,000 investment in John Hancock Diversified Real Assets Fund for the periods indicated, assuming all distributions were reinvested. For comparison, we’ve shown the same investment in the MSCI
World Index.
The MSCI World Index tracks the
performance of publicly traded large- and mid-cap stocks of developed-market companies.
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.
|
| ANNUAL REPORT | JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND
| 7
|
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 October 1, 2022, with the same investment held until March 31, 2023.
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 March 31, 2023, 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
October 1, 2022, with the same investment held until March 31, 2023. 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.
8
| JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND | ANNUAL REPORT
|
|
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
10-1-2022
| Ending
value on
3-31-2023
| Expenses
paid during
period ended
3-31-20231
| Annualized
expense
ratio
|
Class NAV
| Actual expenses/actual returns
| $1,000.00
| $1,135.70
| $4.63
| 0.87%
|
| Hypothetical example
| 1,000.00
| 1,020.60
| 4.38
| 0.87%
|
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).
|
| ANNUAL REPORT | JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND
| 9
|
AS OF
3-31-23
|
|
|
| Shares
| Value
|
Common stocks 98.7%
|
|
|
|
| $1,049,099,539
|
(Cost $878,672,253)
|
|
|
|
|
|
Communication services 1.5%
|
|
| 15,587,312
|
Diversified telecommunication services 0.8%
|
|
|
|
Cellnex Telecom SA (A)(B)
|
|
| 120,184
| 4,673,694
|
Nippon Telegraph & Telephone Corp.
|
|
| 130,417
| 3,897,217
|
Wireless telecommunication services 0.7%
|
|
|
|
KDDI Corp.
|
|
| 116,900
| 3,604,935
|
SK Telecom Company, Ltd.
|
|
| 91,948
| 3,411,466
|
Consumer discretionary 2.2%
|
|
| 23,137,063
|
Hotels, restaurants and leisure 1.5%
|
|
|
|
H World Group, Ltd., ADR (B)
|
|
| 40,385
| 1,978,057
|
Hyatt Hotels Corp., Class A (B)
|
|
| 36,144
| 4,040,538
|
Mandarin Oriental International, Ltd. (B)
|
|
| 595,933
| 1,035,184
|
Oriental Land Company, Ltd.
|
|
| 90,680
| 3,104,814
|
Whitbread PLC
|
|
| 27,036
| 998,740
|
Wynn Resorts, Ltd. (B)
|
|
| 38,906
| 4,353,970
|
Household durables 0.7%
|
|
|
|
Kaufman & Broad SA
|
|
| 46,129
| 1,372,750
|
Sekisui House, Ltd.
|
|
| 100,500
| 2,048,315
|
Sumitomo Forestry Company, Ltd.
|
|
| 28,100
| 558,218
|
Taylor Wimpey PLC
|
|
| 1,187,389
| 1,746,845
|
The Berkeley Group Holdings PLC
|
|
| 36,667
| 1,899,632
|
Energy 28.7%
|
|
| 305,512,183
|
Energy equipment and services 1.9%
|
|
|
|
Aker Solutions ASA
|
|
| 166,086
| 606,022
|
Baker Hughes Company
|
|
| 52,359
| 1,511,081
|
ChampionX Corp.
|
|
| 60,557
| 1,642,911
|
Enerflex, Ltd.
|
|
| 157,970
| 940,924
|
Halliburton Company
|
|
| 154,566
| 4,890,468
|
Helmerich & Payne, Inc.
|
|
| 25,561
| 913,806
|
Patterson-UTI Energy, Inc.
|
|
| 123,000
| 1,439,100
|
Schlumberger, Ltd.
|
|
| 161,215
| 7,915,657
|
TechnipFMC PLC (B)
|
|
| 83,025
| 1,133,291
|
Oil, gas and consumable fuels 26.8%
|
|
|
|
Advantage Energy, Ltd. (B)
|
|
| 202,038
| 1,167,530
|
Aker BP ASA
|
|
| 96,364
| 2,363,330
|
ARC Resources, Ltd.
|
|
| 153,865
| 1,745,283
|
Arch Resources, Inc. (C)
|
|
| 6,800
| 893,928
|
BP PLC
|
|
| 2,370,969
| 14,985,686
|
Cameco Corp.
|
|
| 245,210
| 6,421,000
|
10
| JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND | ANNUAL REPORT
| SEE NOTES TO FINANCIAL STATEMENTS
|
|
|
|
| Shares
| Value
|
Energy (continued)
|
|
|
|
Oil, gas and consumable fuels (continued)
|
|
|
|
Canadian Natural Resources, Ltd.
|
|
| 257,089
| $14,226,923
|
Cenovus Energy, Inc.
|
|
| 561,440
| 9,795,601
|
Cheniere Energy, Inc.
|
|
| 11,695
| 1,843,132
|
Chevron Corp.
|
|
| 116,907
| 19,074,546
|
ConocoPhillips
|
|
| 126,703
| 12,570,205
|
Coterra Energy, Inc.
|
|
| 196,795
| 4,829,349
|
Denbury, Inc. (B)
|
|
| 11,377
| 996,967
|
Devon Energy Corp.
|
|
| 116,396
| 5,890,802
|
Diamondback Energy, Inc.
|
|
| 34,190
| 4,621,462
|
Enbridge, Inc.
|
|
| 80,076
| 3,053,138
|
Enbridge, Inc. (New York Stock Exchange) (C)
|
|
| 23,731
| 905,338
|
Energy Fuels, Inc. (B)
|
|
| 64,855
| 361,825
|
Enerplus Corp.
|
|
| 186,113
| 2,682,561
|
EOG Resources, Inc.
|
|
| 84,412
| 9,676,148
|
EQT Corp.
|
|
| 167,454
| 5,343,457
|
Equinor ASA
|
|
| 227,705
| 6,473,294
|
Exxon Mobil Corp.
|
|
| 220,491
| 24,179,043
|
Galp Energia SGPS SA
|
|
| 255,381
| 2,889,719
|
Hess Corp.
|
|
| 36,757
| 4,864,421
|
Imperial Oil, Ltd.
|
|
| 63,792
| 3,244,117
|
Kelt Exploration, Ltd. (B)
|
|
| 312,164
| 1,060,180
|
Keyera Corp. (C)
|
|
| 109,482
| 2,397,020
|
Marathon Petroleum Corp.
|
|
| 67,639
| 9,119,766
|
MEG Energy Corp. (B)
|
|
| 149,093
| 2,394,975
|
Neste OYJ
|
|
| 23,562
| 1,164,060
|
NexGen Energy, Ltd. (B)
|
|
| 534,539
| 2,052,725
|
NuVista Energy, Ltd. (B)
|
|
| 182,627
| 1,476,961
|
Occidental Petroleum Corp.
|
|
| 85,561
| 5,341,573
|
PDC Energy, Inc.
|
|
| 40,095
| 2,573,297
|
Pembina Pipeline Corp.
|
|
| 152,479
| 4,939,349
|
Phillips 66
|
|
| 52,324
| 5,304,607
|
Pioneer Natural Resources Company
|
|
| 50,264
| 10,265,919
|
Shell PLC
|
|
| 740,594
| 21,105,777
|
Suncor Energy, Inc.
|
|
| 413,634
| 12,842,089
|
Targa Resources Corp.
|
|
| 46,690
| 3,406,036
|
TC Energy Corp.
|
|
| 93,194
| 3,625,016
|
The Williams Companies, Inc.
|
|
| 123,524
| 3,688,427
|
Tidewater Midstream and Infrastructure, Ltd. (C)
|
|
| 694,666
| 462,597
|
Topaz Energy Corp. (C)
|
|
| 54,265
| 767,299
|
TotalEnergies SE (C)
|
|
| 168,938
| 9,961,256
|
Tourmaline Oil Corp.
|
|
| 82,949
| 3,456,669
|
Valero Energy Corp.
|
|
| 71,915
| 10,039,334
|
Woodside Energy Group, Ltd., ADR (C)
|
|
| 88,060
| 1,975,186
|
SEE NOTES TO FINANCIAL STATEMENTS
| ANNUAL REPORT | JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND
| 11
|
|
|
|
| Shares
| Value
|
Financials 0.3%
|
|
| $3,238,997
|
Financial services 0.3%
|
|
|
|
Berkshire Hathaway, Inc., Class B (B)
|
|
| 10,490
| 3,238,997
|
Industrials 2.2%
|
|
| 23,360,821
|
Building products 0.1%
|
|
|
|
TOTO, Ltd.
|
|
| 38,600
| 1,293,244
|
Commercial services and supplies 0.1%
|
|
|
|
Aker Carbon Capture ASA (B)
|
|
| 122,567
| 172,774
|
Park24 Company, Ltd. (B)
|
|
| 66,400
| 971,300
|
Construction and engineering 0.8%
|
|
|
|
Vinci SA
|
|
| 39,662
| 4,546,968
|
WillScot Mobile Mini Holdings Corp. (B)
|
|
| 82,206
| 3,853,817
|
Electrical equipment 0.5%
|
|
|
|
Plug Power, Inc. (B)(C)
|
|
| 23,016
| 269,748
|
SunPower Corp. (B)(C)
|
|
| 47,592
| 658,673
|
Sunrun, Inc. (B)(C)
|
|
| 58,386
| 1,176,478
|
Vestas Wind Systems A/S
|
|
| 90,011
| 2,623,318
|
Ground transportation 0.3%
|
|
|
|
Canadian National Railway Company
|
|
| 30,033
| 3,543,738
|
Machinery 0.1%
|
|
|
|
Chart Industries, Inc. (B)
|
|
| 8,102
| 1,015,991
|
Transportation infrastructure 0.3%
|
|
|
|
Shanghai International Airport Company, Ltd., Class A (B)
|
|
| 398,700
| 3,234,772
|
Information technology 1.1%
|
|
| 11,841,083
|
Electronic equipment, instruments and components 0.1%
|
|
|
|
Advanced Energy Industries, Inc.
|
|
| 11,178
| 1,095,444
|
Semiconductors and semiconductor equipment 1.0%
|
|
|
|
Analog Devices, Inc.
|
|
| 7,514
| 1,481,911
|
Enphase Energy, Inc. (B)
|
|
| 8,231
| 1,730,815
|
First Solar, Inc. (B)
|
|
| 7,011
| 1,524,893
|
ON Semiconductor Corp. (B)
|
|
| 20,032
| 1,649,034
|
Power Integrations, Inc.
|
|
| 15,277
| 1,293,045
|
SolarEdge Technologies, Inc. (B)
|
|
| 6,315
| 1,919,444
|
Wolfspeed, Inc. (B)(C)
|
|
| 17,652
| 1,146,497
|
Materials 21.5%
|
|
| 228,803,042
|
Chemicals 0.6%
|
|
|
|
Air Liquide SA
|
|
| 4,037
| 675,751
|
Albemarle Corp.
|
|
| 5,206
| 1,150,734
|
Dow, Inc.
|
|
| 10,860
| 595,345
|
DuPont de Nemours, Inc.
|
|
| 9,170
| 658,131
|
LyondellBasell Industries NV, Class A
|
|
| 10,967
| 1,029,692
|
12
| JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND | ANNUAL REPORT
| SEE NOTES TO FINANCIAL STATEMENTS
|
|
|
|
| Shares
| Value
|
Materials (continued)
|
|
|
|
Chemicals (continued)
|
|
|
|
NanoXplore, Inc. (B)(C)
|
|
| 174,300
| $420,435
|
Nutrien, Ltd.
|
|
| 22,035
| 1,627,313
|
Nutrien, Ltd. (New York Stock Exchange) (C)
|
|
| 7,975
| 588,954
|
Containers and packaging 0.1%
|
|
|
|
Smurfit Kappa Group PLC
|
|
| 37,000
| 1,341,465
|
Metals and mining 20.3%
|
|
|
|
Agnico Eagle Mines, Ltd.
|
|
| 227,213
| 11,606,237
|
Agnico Eagle Mines, Ltd. (New York Stock Exchange) (C)
|
|
| 14,563
| 742,276
|
Alcoa Corp.
|
|
| 131,296
| 5,587,958
|
Altius Minerals Corp. (C)
|
|
| 42,876
| 729,352
|
Anglo American PLC
|
|
| 57,922
| 1,926,563
|
AngloGold Ashanti, Ltd., ADR (C)
|
|
| 37,529
| 907,827
|
Antofagasta PLC
|
|
| 3,782
| 74,079
|
Artemis Gold, Inc. (B)(C)
|
|
| 271,854
| 901,151
|
Aya Gold & Silver, Inc. (B)
|
|
| 108,347
| 872,227
|
B2Gold Corp.
|
|
| 316,059
| 1,248,801
|
Barrick Gold Corp.
|
|
| 568,533
| 10,554,564
|
BHP Group, Ltd., ADR (C)
|
|
| 312,450
| 19,812,455
|
Boliden AB
|
|
| 33,548
| 1,317,907
|
Calibre Mining Corp. (B)
|
|
| 260,000
| 253,940
|
Canada Nickel Company, Inc. (B)
|
|
| 825,000
| 952,275
|
Capstone Copper Corp. (B)
|
|
| 1,401,467
| 6,325,526
|
Champion Iron, Ltd.
|
|
| 877,791
| 4,234,700
|
Constellium SE (B)
|
|
| 138,500
| 2,116,280
|
Copper Mountain Mining Corp. (B)(C)
|
|
| 1,174,926
| 1,903,876
|
Dundee Precious Metals, Inc.
|
|
| 19,881
| 145,044
|
Eldorado Gold Corp. (B)
|
|
| 20,664
| 214,055
|
Endeavour Mining PLC (C)
|
|
| 195,728
| 4,716,878
|
Equinox Gold Corp. (B)(C)
|
|
| 98,661
| 506,628
|
ERO Copper Corp. (B)
|
|
| 262,532
| 4,644,573
|
Filo Mining Corp. (B)
|
|
| 30,000
| 515,871
|
First Quantum Minerals, Ltd.
|
|
| 332,145
| 7,635,771
|
Franco-Nevada Corp.
|
|
| 28,970
| 4,225,569
|
Freeport-McMoRan, Inc.
|
|
| 583,468
| 23,869,676
|
Glencore PLC
|
|
| 179,499
| 1,032,871
|
Global Atomic Corp. (B)
|
|
| 131,500
| 283,141
|
Gold Fields, Ltd., ADR (C)
|
|
| 124,894
| 1,663,588
|
Hudbay Minerals, Inc.
|
|
| 255,775
| 1,341,802
|
IGO, Ltd.
|
|
| 195,000
| 1,672,150
|
Iluka Resources, Ltd.
|
|
| 117,300
| 837,156
|
Ivanhoe Electric, Inc. (B)(C)
|
|
| 114,750
| 1,394,213
|
Ivanhoe Mines, Ltd., Class A (B)
|
|
| 625,535
| 5,651,337
|
SEE NOTES TO FINANCIAL STATEMENTS
| ANNUAL REPORT | JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND
| 13
|
|
|
|
| Shares
| Value
|
Materials (continued)
|
|
|
|
Metals and mining (continued)
|
|
|
|
K92 Mining, Inc. (B)(C)
|
|
| 196,520
| $1,116,740
|
Karora Resources, Inc. (B)
|
|
| 808,345
| 2,715,417
|
Kinross Gold Corp.
|
|
| 741,844
| 3,491,031
|
Lithium Americas Corp. (B)(C)
|
|
| 44,400
| 965,860
|
Lucara Diamond Corp. (B)
|
|
| 460,070
| 173,611
|
Lundin Gold, Inc.
|
|
| 78,797
| 920,027
|
Lundin Mining Corp.
|
|
| 440,369
| 2,991,186
|
MAG Silver Corp. (B)
|
|
| 62,775
| 793,339
|
Marathon Gold Corp. (B)(C)
|
|
| 814,805
| 482,312
|
Nevada Copper Corp. (B)(C)
|
|
| 267,550
| 76,217
|
Newcrest Mining, Ltd.
|
|
| 24,643
| 439,887
|
Newcrest Mining, Ltd. (Toronto Stock Exchange)
|
|
| 5,513
| 98,063
|
Newmont Corp.
|
|
| 181,280
| 8,886,346
|
Nickel 28 Capital Corp. (B)
|
|
| 356,691
| 306,150
|
Norsk Hydro ASA
|
|
| 412,164
| 3,076,154
|
Nouveau Monde Graphite, Inc. (B)(C)
|
|
| 95,617
| 490,515
|
Nucor Corp.
|
|
| 4,556
| 703,765
|
OceanaGold Corp.
|
|
| 343,606
| 851,706
|
Osisko Mining, Inc. (B)
|
|
| 341,234
| 1,085,687
|
Pan American Silver Corp. (C)
|
|
| 158,066
| 2,891,205
|
Pan American Silver Corp., CVR (B)
|
|
| 83,300
| 45,815
|
Piedmont Lithium, Inc. (B)(C)
|
|
| 34,100
| 2,047,705
|
Rio Tinto PLC, ADR (C)
|
|
| 173,677
| 11,914,242
|
Sandstorm Gold, Ltd.
|
|
| 32,924
| 191,478
|
Seabridge Gold, Inc. (B)(C)
|
|
| 45,163
| 584,861
|
Sierra Rutile Holdings, Ltd. (B)
|
|
| 98,000
| 17,171
|
Sigma Lithium Corp. (B)(C)
|
|
| 38,400
| 1,446,499
|
SilverCrest Metals, Inc. (B)
|
|
| 175,690
| 1,249,264
|
Skeena Resources, Ltd. (B)(C)
|
|
| 318,000
| 1,948,235
|
SolGold PLC (B)(C)
|
|
| 2,709,000
| 621,376
|
South32, Ltd.
|
|
| 574,066
| 1,682,430
|
Southern Copper Corp.
|
|
| 5,286
| 403,058
|
SSR Mining, Inc.
|
|
| 126,041
| 1,906,236
|
Steel Dynamics, Inc.
|
|
| 3,614
| 408,599
|
Stornoway Diamond Corp. (B)(D)
|
|
| 3,062,000
| 0
|
Talon Metals Corp. (B)
|
|
| 4,825,000
| 1,285,239
|
Teck Resources, Ltd., Class B
|
|
| 263,565
| 9,624,072
|
Torex Gold Resources, Inc. (B)
|
|
| 13,337
| 221,938
|
Trilogy Metals, Inc. (B)
|
|
| 781,452
| 416,312
|
Triple Flag Precious Metals Corp. (C)
|
|
| 166,706
| 2,492,255
|
U.S. Steel Corp.
|
|
| 7,081
| 184,814
|
Vale SA, ADR (C)
|
|
| 88,952
| 1,403,663
|
Warrior Met Coal, Inc. (C)
|
|
| 33,164
| 1,217,450
|
14
| JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND | ANNUAL REPORT
| SEE NOTES TO FINANCIAL STATEMENTS
|
|
|
|
| Shares
| Value
|
Materials (continued)
|
|
|
|
Metals and mining (continued)
|
|
|
|
Wesdome Gold Mines, Ltd. (B)
|
|
| 160,939
| $921,693
|
Wheaton Precious Metals Corp.
|
|
| 176,851
| 8,517,374
|
Paper and forest products 0.5%
|
|
|
|
Canfor Corp. (B)
|
|
| 35,000
| 562,486
|
Interfor Corp. (B)
|
|
| 116,819
| 1,903,333
|
West Fraser Timber Company, Ltd.
|
|
| 35,387
| 2,524,089
|
Real estate 35.1%
|
|
| 372,975,267
|
Diversified REITs 2.2%
|
|
|
|
Empire State Realty Trust, Inc., Class A
|
|
| 785,214
| 5,096,039
|
Growthpoint Properties, Ltd.
|
|
| 1,383,657
| 1,016,340
|
Heiwa Real Estate REIT, Inc.
|
|
| 1,085
| 1,248,261
|
ICADE
|
|
| 22,029
| 1,037,259
|
Land Securities Group PLC
|
|
| 255,732
| 1,963,128
|
Stockland
|
|
| 931,133
| 2,493,379
|
WP Carey, Inc.
|
|
| 139,072
| 10,771,126
|
Health care REITs 2.6%
|
|
|
|
CareTrust REIT, Inc.
|
|
| 275,997
| 5,404,021
|
Ventas, Inc.
|
|
| 184,272
| 7,988,191
|
Welltower, Inc.
|
|
| 195,524
| 14,017,116
|
Hotel and resort REITs 0.7%
|
|
|
|
CDL Hospitality Trusts
|
|
| 1,053,200
| 943,891
|
Japan Hotel REIT Investment Corp.
|
|
| 2,074
| 1,176,276
|
Ryman Hospitality Properties, Inc.
|
|
| 59,763
| 5,362,534
|
Industrial REITs 5.9%
|
|
|
|
EastGroup Properties, Inc.
|
|
| 30,938
| 5,114,670
|
Goodman Group
|
|
| 159,126
| 2,019,281
|
Plymouth Industrial REIT, Inc.
|
|
| 257,418
| 5,408,352
|
Prologis Property Mexico SA de CV
|
|
| 499,370
| 1,798,508
|
Prologis, Inc.
|
|
| 316,606
| 39,502,929
|
Rexford Industrial Realty, Inc.
|
|
| 114,283
| 6,816,981
|
Warehouses De Pauw CVA
|
|
| 81,750
| 2,430,939
|
Office REITs 0.8%
|
|
|
|
Alexandria Real Estate Equities, Inc.
|
|
| 23,478
| 2,948,602
|
Corporate Office Properties Trust
|
|
| 124,746
| 2,957,728
|
Gecina SA
|
|
| 24,304
| 2,522,779
|
Orix JREIT, Inc.
|
|
| 168
| 213,012
|
Real estate management and development 3.4%
|
|
|
|
Arealink Company, Ltd.
|
|
| 86,575
| 1,537,380
|
CapitaLand Investment, Ltd.
|
|
| 1,356,200
| 3,762,801
|
CBRE Group, Inc., Class A (B)
|
|
| 21,132
| 1,538,621
|
Central Pattana PCL
|
|
| 614,200
| 1,236,856
|
SEE NOTES TO FINANCIAL STATEMENTS
| ANNUAL REPORT | JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND
| 15
|
|
|
|
| Shares
| Value
|
Real estate (continued)
|
|
|
|
Real estate management and development (continued)
|
|
|
|
CK Asset Holdings, Ltd.
|
|
| 625,365
| $3,791,383
|
Colliers International Group, Inc.
|
|
| 9,718
| 1,025,585
|
Corp. Inmobiliaria Vesta SAB de CV
|
|
| 257,500
| 810,225
|
Hufvudstaden AB, A Shares
|
|
| 90,789
| 1,231,471
|
LEG Immobilien SE
|
|
| 23,556
| 1,294,549
|
Mitsui Fudosan Company, Ltd.
|
|
| 240,427
| 4,516,287
|
Nomura Real Estate Holdings, Inc.
|
|
| 87,700
| 1,941,995
|
PSP Swiss Property AG
|
|
| 15,154
| 1,724,515
|
Sagax AB, B Shares
|
|
| 54,539
| 1,257,144
|
Sino Land Company, Ltd.
|
|
| 1,722,000
| 2,328,698
|
Sun Hung Kai Properties, Ltd.
|
|
| 245,500
| 3,439,358
|
TKP Corp. (B)(C)
|
|
| 33,520
| 726,704
|
Tokyo Tatemono Company, Ltd.
|
|
| 45,990
| 561,502
|
Wharf Real Estate Investment Company, Ltd.
|
|
| 620,000
| 3,569,570
|
Residential REITs 5.8%
|
|
|
|
American Homes 4 Rent, Class A
|
|
| 158,878
| 4,996,713
|
Apartment Income REIT Corp.
|
|
| 121,450
| 4,349,125
|
Boardwalk Real Estate Investment Trust
|
|
| 58,899
| 2,403,027
|
Comforia Residential REIT, Inc.
|
|
| 1,014
| 2,412,364
|
Equity Residential
|
|
| 212,977
| 12,778,620
|
Independence Realty Trust, Inc.
|
|
| 206,423
| 3,308,961
|
Sun Communities, Inc.
|
|
| 96,890
| 13,649,863
|
The UNITE Group PLC
|
|
| 81,243
| 962,501
|
UDR, Inc.
|
|
| 292,638
| 12,015,716
|
Veris Residential, Inc. (B)
|
|
| 335,247
| 4,908,016
|
Retail REITs 5.1%
|
|
|
|
Ascencio
|
|
| 17,621
| 929,333
|
Brixmor Property Group, Inc.
|
|
| 421,837
| 9,077,932
|
CapitaLand Integrated Commercial Trust
|
|
| 771,300
| 1,150,340
|
Frontier Real Estate Investment Corp.
|
|
| 771
| 2,762,510
|
Getty Realty Corp.
|
|
| 156,916
| 5,653,683
|
Kimco Realty Corp.
|
|
| 162,036
| 3,164,563
|
Klepierre SA
|
|
| 75,950
| 1,721,960
|
NETSTREIT Corp.
|
|
| 231,296
| 4,228,091
|
NewRiver REIT PLC
|
|
| 1,669,325
| 1,628,336
|
Phillips Edison & Company, Inc.
|
|
| 142,084
| 4,634,780
|
RioCan Real Estate Investment Trust
|
|
| 97,774
| 1,475,111
|
Shaftesbury Capital PLC
|
|
| 1,101,506
| 1,556,294
|
Simon Property Group, Inc.
|
|
| 71,023
| 7,952,445
|
Spirit Realty Capital, Inc.
|
|
| 72,334
| 2,881,787
|
Tanger Factory Outlet Centers, Inc.
|
|
| 114,468
| 2,247,007
|
Vicinity, Ltd.
|
|
| 1,919,043
| 2,509,812
|
16
| JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND | ANNUAL REPORT
| SEE NOTES TO FINANCIAL STATEMENTS
|
|
|
|
| Shares
| Value
|
Real estate (continued)
|
|
|
|
Specialized REITs 8.6%
|
|
|
|
American Tower Corp.
|
|
| 53,088
| $10,848,002
|
CubeSmart
|
|
| 194,688
| 8,998,479
|
Equinix, Inc.
|
|
| 33,396
| 24,079,852
|
Iron Mountain, Inc.
|
|
| 87,042
| 4,605,392
|
Keppel DC REIT
|
|
| 1,499,700
| 2,325,533
|
Life Storage, Inc.
|
|
| 68,248
| 8,946,630
|
National Storage REIT
|
|
| 1,196,522
| 2,026,553
|
Public Storage
|
|
| 54,605
| 16,498,355
|
Safestore Holdings PLC
|
|
| 175,578
| 2,060,861
|
VICI Properties, Inc.
|
|
| 327,429
| 10,680,734
|
Utilities 6.1%
|
|
| 64,643,771
|
Electric utilities 2.8%
|
|
|
|
American Electric Power Company, Inc.
|
|
| 39,001
| 3,548,701
|
Constellation Energy Corp.
|
|
| 26,216
| 2,057,956
|
Duke Energy Corp.
|
|
| 31,968
| 3,083,953
|
Edison International
|
|
| 50,323
| 3,552,301
|
EDP - Energias de Portugal SA
|
|
| 190,526
| 1,038,164
|
Electricite de France SA
|
|
| 47
| 606
|
Enel SpA
|
|
| 491,119
| 2,995,324
|
Exelon Corp.
|
|
| 84,615
| 3,544,522
|
FirstEnergy Corp.
|
|
| 75,905
| 3,040,754
|
Iberdrola SA
|
|
| 280,593
| 3,495,588
|
NextEra Energy, Inc.
|
|
| 37,602
| 2,898,362
|
Gas utilities 0.5%
|
|
|
|
Atmos Energy Corp.
|
|
| 28,145
| 3,162,372
|
ENN Energy Holdings, Ltd.
|
|
| 154,800
| 2,119,673
|
Independent power and renewable electricity producers 1.4%
|
|
|
|
Brookfield Renewable Corp., Class A
|
|
| 19,299
| 674,500
|
Brookfield Renewable Partners LP
|
|
| 71,937
| 2,266,735
|
China Longyuan Power Group Corp., Ltd., H Shares
|
|
| 2,715,081
| 3,097,404
|
Ormat Technologies, Inc. (C)
|
|
| 5,705
| 483,613
|
Orron Energy AB
|
|
| 85,636
| 112,569
|
RWE AG
|
|
| 91,605
| 3,941,632
|
The AES Corp.
|
|
| 162,653
| 3,916,684
|
Multi-utilities 1.2%
|
|
|
|
Engie SA
|
|
| 264,125
| 4,179,717
|
National Grid PLC
|
|
| 276,338
| 3,738,005
|
Public Service Enterprise Group, Inc.
|
|
| 25,401
| 1,586,292
|
Sempra Energy
|
|
| 24,655
| 3,726,850
|
Water utilities 0.2%
|
|
|
|
Cia de Saneamento Basico do Estado de Sao Paulo
|
|
| 238,500
| 2,381,494
|
SEE NOTES TO FINANCIAL STATEMENTS
| ANNUAL REPORT | JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND
| 17
|
|
|
|
| Shares
| Value
|
|
Warrants 0.1%
|
|
|
|
| $669,612
|
(Cost $0)
|
|
|
|
|
|
Occidental Petroleum Corp. (Expiration Date: 8-3-27; Strike Price: $22.00) (B)
|
|
| 16,332
| 669,612
|
|
| Yield* (%)
| Maturity date
|
| Par value^
| Value
|
Short-term investments 5.7%
|
|
|
|
| $60,161,955
|
(Cost $60,142,192)
|
|
|
|
|
|
U.S. Government Agency 0.1%
|
|
|
|
| 989,876
|
Federal Home Loan Bank Discount Note
| 4.200
| 04-04-23
|
| 990,000
| 989,876
|
|
| Yield (%)
|
| Shares
| Value
|
Short-term funds 4.7%
|
|
|
|
| 49,272,079
|
John Hancock Collateral Trust (E)
| 4.9438(F)
|
| 4,928,736
| 49,272,079
|
|
|
|
| Par value^
| Value
|
Repurchase agreement 0.9%
|
|
|
|
| 9,900,000
|
Bank of America Corp. Tri-Party Repurchase Agreement dated 3-31-23 at 4.810% to be repurchased at
$1,800,722 on 4-3-23, collateralized by $1,849,400 U.S. Treasury Notes, 0.125% due 5-31-23 (valued at $1,836,076)
|
|
|
| 1,800,000
| 1,800,000
|
Goldman Sachs Tri-Party Repurchase Agreement dated 3-31-23 at 4.760% to be repurchased at $8,103,213 on
4-3-23, collateralized by $1,885,528 Federal Home Loan Mortgage Corp., 3.000% due 12-1-51 (valued at $1,692,763), $968,819 Federal National Mortgage Association, 4.000% due 3-1-48 (valued at $948,720), $5,142,671
Government National Mortgage Association, 3.500% - 4.000% due to 7-15-41 to 7-20-46 (valued at $4,898,359) and $190,300 U.S. Treasury Bonds, 4.500% due 5-15-38 (valued at $212,287)
|
|
|
| 8,100,000
| 8,100,000
|
|
Total investments (Cost $938,814,445) 104.5%
|
|
| $1,109,931,106
|
Other assets and liabilities, net (4.5%)
|
|
|
| (47,440,737)
|
Total net assets 100.0%
|
|
|
|
| $1,062,490,369
|
The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund.
|
^All par values are denominated in U.S. dollars unless otherwise indicated.
|
Security Abbreviations and Legend
|
ADR
| American Depositary Receipt
|
CVR
| Contingent Value Right
|
(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.
|
(B)
| Non-income producing security.
|
(C)
| All or a portion of this security is on loan as of 3-31-23.
|
18
| JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND | ANNUAL REPORT
| SEE NOTES TO FINANCIAL STATEMENTS
|
(D)
| 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.
|
(E)
| Investment is an affiliate of the fund, the advisor and/or subadvisor. This security represents the investment of cash collateral received for securities lending.
|
(F)
| The rate shown is the annualized seven-day yield as of 3-31-23.
|
*
| Yield represents either the annualized yield at the date of purchase, the stated coupon rate or, for floating rate securities, the rate at period end.
|
At 3-31-23, the aggregate cost of
investments for federal income tax purposes was $971,117,622. Net unrealized appreciation aggregated to $138,813,484, of which $170,824,011 related to gross unrealized appreciation and $32,010,527 related to gross
unrealized depreciation.
SEE NOTES TO FINANCIAL STATEMENTS
| ANNUAL REPORT | JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND
| 19
|
STATEMENT OF ASSETS AND
LIABILITIES 3-31-23
Assets
|
|
Unaffiliated investments, at value (Cost $889,561,907) including $53,704,341 of securities loaned
| $1,060,659,027
|
Affiliated investments, at value (Cost $49,252,538)
| 49,272,079
|
Total investments, at value (Cost $938,814,445)
| 1,109,931,106
|
Cash
| 645,219
|
Foreign currency, at value (Cost $606,639)
| 606,495
|
Dividends and interest receivable
| 3,179,674
|
Receivable for investments sold
| 2,443,225
|
Other assets
| 104,907
|
Total assets
| 1,116,910,626
|
Liabilities
|
|
Payable for investments purchased
| 4,895,810
|
Payable for fund shares repurchased
| 59,290
|
Payable upon return of securities loaned
| 49,258,454
|
Payable to affiliates
|
|
Accounting and legal services fees
| 46,227
|
Trustees’ fees
| 60
|
Other liabilities and accrued expenses
| 160,416
|
Total liabilities
| 54,420,257
|
Net assets
| $1,062,490,369
|
Net assets consist of
|
|
Paid-in capital
| $923,525,165
|
Total distributable earnings (loss)
| 138,965,204
|
Net assets
| $1,062,490,369
|
|
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 NAV ($1,062,490,369 ÷ 94,979,487 shares)
| $11.19
|
20
| JOHN HANCOCK Diversified Real Assets Fund | ANNUAL REPORT
| SEE NOTES TO FINANCIAL STATEMENTS
|
STATEMENT OF OPERATIONS For the year ended 3-31-23
Investment income
|
|
Dividends
| $35,305,363
|
Interest
| 400,106
|
Non-cash dividends
| 2,036,905
|
Securities lending
| 535,928
|
Less foreign taxes withheld
| (1,685,693)
|
Total investment income
| 36,592,609
|
Expenses
|
|
Investment management fees
| 8,844,369
|
Accounting and legal services fees
| 189,889
|
Trustees’ fees
| 21,033
|
Custodian fees
| 396,997
|
Printing and postage
| 19,076
|
Professional fees
| 95,041
|
Other
| 40,209
|
Total expenses
| 9,606,614
|
Less expense reductions
| (597,020)
|
Net expenses
| 9,009,594
|
Net investment income
| 27,583,015
|
Realized and unrealized gain (loss)
|
|
Net realized gain (loss) on
|
|
Unaffiliated investments and foreign currency transactions
| (1,126,267)
|
Affiliated investments
| (12,164)
|
| (1,138,431)
|
Change in net unrealized appreciation (depreciation) of
|
|
Unaffiliated investments and translation of assets and liabilities in foreign currencies
| (134,033,227)
|
Affiliated investments
| 14,991
|
| (134,018,236)
|
Net realized and unrealized loss
| (135,156,667)
|
Decrease in net assets from operations
| $(107,573,652)
|
SEE NOTES TO FINANCIAL STATEMENTS
| ANNUAL REPORT | JOHN HANCOCK Diversified Real Assets Fund
| 21
|
STATEMENTS OF CHANGES IN NET
ASSETS
| Year ended
3-31-23
| Year ended
3-31-22
|
Increase (decrease) in net assets
|
|
|
From operations
|
|
|
Net investment income
| $27,583,015
| $25,638,565
|
Net realized gain (loss)
| (1,138,431)
| 65,063,023
|
Change in net unrealized appreciation (depreciation)
| (134,018,236)
| 248,823,189
|
Increase (decrease) in net assets resulting from operations
| (107,573,652)
| 339,524,777
|
Distributions to shareholders
|
|
|
From earnings
|
|
|
Class NAV
| (58,975,191)
| (30,403,277)
|
Total distributions
| (58,975,191)
| (30,403,277)
|
From fund share transactions
| 78,262,845
| (121,130,595)
|
Total increase (decrease)
| (88,285,998)
| 187,990,905
|
Net assets
|
|
|
Beginning of year
| 1,150,776,367
| 962,785,462
|
End of year
| $1,062,490,369
| $1,150,776,367
|
22
| JOHN HANCOCK Diversified Real Assets Fund | ANNUAL REPORT
| SEE NOTES TO FINANCIAL STATEMENTS
|
CLASS NAV SHARES Period ended
| 3-31-23
| 3-31-22
| 3-31-21
| 3-31-20
| 3-31-19
|
Per share operating performance
|
|
|
|
|
|
Net asset value, beginning of period
| $13.28
| $10.10
| $6.61
| $10.01
| $10.00
|
Net investment income1
| 0.31
| 0.25
| 0.18
| 0.20
| 0.21
|
Net realized and unrealized gain (loss) on investments
| (1.73)
| 3.23
| 3.54
| (3.16)
| 0.07
|
Total from investment operations
| (1.42)
| 3.48
| 3.72
| (2.96)
| 0.28
|
Less distributions
|
|
|
|
|
|
From net investment income
| (0.28)
| (0.30)
| (0.23)
| (0.28)
| (0.19)
|
From net realized gain
| (0.39)
| —
| —
| (0.16)
| (0.08)
|
Total distributions
| (0.67)
| (0.30)
| (0.23)
| (0.44)
| (0.27)
|
Net asset value, end of period
| $11.19
| $13.28
| $10.10
| $6.61
| $10.01
|
Total return (%)2
| (10.55)
| 34.95
| 56.64
| (30.92)
| 3.07
|
Ratios and supplemental data
|
|
|
|
|
|
Net assets, end of period (in millions)
| $1,062
| $1,151
| $963
| $684
| $998
|
Ratios (as a percentage of average net assets):
|
|
|
|
|
|
Expenses before reductions
| 0.92
| 0.91
| 0.93
| 0.93
| 0.94
|
Expenses including reductions
| 0.87
| 0.85
| 0.87
| 0.87
| 0.88
|
Net investment income
| 2.65
| 2.20
| 2.07
| 2.05
| 2.07
|
Portfolio turnover (%)
| 60
| 49
| 82
| 61
| 73
|
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 Diversified Real Assets Fund
| 23
|
Notes to financial statements
Note 1—Organization
John Hancock Diversified Real Assets
Fund (the fund) is a series of John Hancock Investment Trust (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 long-term total return in excess of inflation.
The fund may offer multiple classes
of shares. The shares currently outstanding are detailed in the Statement of assets and liabilities. Class NAV shares are offered to John Hancock affiliated funds of funds, retirement plans for employees of John
Hancock and/or Manulife Financial Corporation, and certain 529 plans. 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 Advisor’s Valuation Policies and Procedures.
In order to value the securities,
the fund uses the following valuation techniques: 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. 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. 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 of the Advisor 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 Pricing Committee following procedures established by the Advisor and adopted 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. Trading in foreign securities may be completed before the scheduled daily close of trading on the NYSE. Significant events at the issuer or market level may affect the values of
securities between the time when the valuation of the securities is generally determined and the close of the NYSE. If a significant event occurs, these securities may be fair valued, as determined in good faith by
the Pricing Committee,
24
| JOHN HANCOCK Diversified Real Assets Fund | ANNUAL REPORT
|
|
following procedures established by the Advisor and
adopted by the Board of Trustees. The Advisor uses fair value adjustment factors provided by an independent pricing vendor to value certain foreign securities in order to adjust for events that may occur between the
close of foreign exchanges or markets and the close of the NYSE.
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 Advisor’s 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 March 31, 2023, by major security category or type:
| Total
value at
3-31-23
| Level 1
quoted
price
| Level 2
significant
observable
inputs
| Level 3
significant
unobservable
inputs
|
Investments in securities:
|
|
|
|
|
Assets
|
|
|
|
|
Common stocks
|
|
|
|
|
Communication services
| $15,587,312
| —
| $15,587,312
| —
|
Consumer discretionary
| 23,137,063
| $10,372,565
| 12,764,498
| —
|
Energy
| 305,512,183
| 245,963,039
| 59,549,144
| —
|
Financials
| 3,238,997
| 3,238,997
| —
| —
|
Industrials
| 23,360,821
| 10,518,445
| 12,842,376
| —
|
Information technology
| 11,841,083
| 11,841,083
| —
| —
|
Materials
| 228,803,042
| 214,709,458
| 14,093,584
| —
|
Real estate
| 372,975,267
| 300,944,112
| 72,031,155
| —
|
Utilities
| 64,643,771
| 39,925,089
| 24,718,682
| —
|
Warrants
| 669,612
| 669,612
| —
| —
|
Short-term investments
| 60,161,955
| 49,272,079
| 10,889,876
| —
|
Total investments in securities
| $1,109,931,106
| $887,454,479
| $222,476,627
| —
|
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
| ANNUAL REPORT | JOHN HANCOCK Diversified Real Assets Fund
| 25
|
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.
Real estate investment trusts. The fund may invest in real estate investment trusts (REITs). Distributions from REITs may be recorded as income and subsequently characterized by the REIT at the end of their fiscal year
as a reduction of cost of investments and/or as a realized gain. As a result, the fund will estimate the components of distributions from these securities. Such estimates are revised when the actual components of the
distributions are known.
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.
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
may 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 is a prime money market
fund and 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. During the existence of the loan, the fund will receive from the borrower amounts equivalent to any dividends, interest or other distributions
on the loaned securities, as well as interest on such amounts. 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 March 31, 2023, the fund loaned securities valued
at $53,704,341 and received $49,258,454 of cash collateral.
26
| JOHN HANCOCK Diversified Real Assets Fund | ANNUAL REPORT
|
|
In addition, non-cash collateral of
approximately $6,801,068 in the form of U.S. Treasuries was pledged to the fund. This non-cash collateral is not reflected in the fund’s net assets, however could be sold by the securities lending agent in the
event of default by the borrower.
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. 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 of all other affiliated funds, the fund can borrow up to an aggregate commitment amount of $750 million,
subject to asset coverage and other limitations as specified in the agreement. A commitment fee payable at the end of each calendar quarter, based on the average daily unused portion of the line of credit, is charged
to each participating fund based on a combination of fixed and asset-based allocations and is reflected in Other expenses on the Statement of operations. For the year ended March 31, 2023, the fund had no borrowings
under the line of credit. Commitment fees for the year ended March 31, 2023 were $6,548.
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.
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, net
capital losses of $6,730,937 that are a result of security transactions occurring after October 31, 2022, are treated as occurring on April 1, 2023, the first day of the fund’s next taxable year.
| ANNUAL REPORT | JOHN HANCOCK Diversified Real Assets Fund
| 27
|
As of March 31, 2023, 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 and pays dividends annually. Capital gain
distributions, if any, are typically distributed annually.
The tax character of distributions
for the years ended March 31, 2023 and 2022 was as follows:
| March 31, 2023
| March 31, 2022
|
Ordinary income
| $24,583,516
| $30,403,277
|
Long-term capital gains
| 34,391,675
| —
|
Total
| $58,975,191
| $30,403,277
|
As of March 31, 2023, the components
of distributable earnings on a tax basis consisted of $6,880,013 of undistributed ordinary income.
Such distributions and distributable
earnings, on a tax basis, are determined in conformity with income tax regulations, which may differ from US GAAP. Distributions in excess of tax basis earnings and profits, if any, are reported in the fund’s
financial statements as a return of capital.
Capital accounts within the
financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences, if any, will reverse in a subsequent
period. Book-tax differences are primarily attributable to wash sale loss deferrals and investments in passive foreign investment companies.
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 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 4—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 John Hancock Life Insurance Company (U.S.A.), which in turn is a subsidiary 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)
0.850% of the first $2 billion of the fund’s average daily net assets and (b) 0.800% of the fund’s average daily net assets in excess of $2 billion. The Advisor has subadvisory agreements with Manulife
Investment Management (North America) Limited and Wellington Management Company LLP. 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
28
| JOHN HANCOCK Diversified Real Assets Fund | ANNUAL REPORT
|
|
fund. During the year ended March 31, 2023, this
waiver amounted to 0.01% of the fund’s average daily net assets. This arrangement expires on July 31, 2024, unless renewed by mutual agreement of the fund and the Advisor based upon a determination that this is
appropriate under the circumstances at that time.
The Advisor contractually agrees to
reduce its management fee by an annual rate of 0.05% of the fund’s average daily net assets. This agreement 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.
The expense reductions described
above amounted to $597,020 for the year ended March 31, 2023.
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 March 31, 2023, were equivalent to a net annual effective rate of 0.79% of the fund’s average daily net
assets.
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 accounting and legal services fees incurred, for the year ended
March 31, 2023, amounted to an annual rate of 0.02% of the fund’s average daily net assets.
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.
Interfund lending program. Pursuant to an Exemptive Order issued by the SEC, the fund, along with certain other funds advised by the Advisor or its affiliates, may participate in an interfund lending program. This
program provides an alternative credit facility allowing the fund to borrow from, or lend money to, other participating affiliated funds. At period end, no interfund loans were outstanding. Interest expense is
inlcuded in Other expenses on the Statement of operations. The fund’s activity in this program during the period for which loans were outstanding was as follows:
Borrower
or Lender
| Weighted Average
Loan Balance
| Days
Outstanding
| Weighted Average
Interest Rate
| Interest Income
(Expense)
|
Borrower
| $4,880,000
| 5
| 0.665%
| $(451)
|
Lender
| $5,500,000
| 4
| 2.855%
| $1,745
|
Note 5—Fund share transactions
Transactions in fund shares for the
years ended March 31, 2023 and 2022 were as follows:
| Year Ended 3-31-23
| Year Ended 3-31-22
|
| Shares
| Amount
| Shares
| Amount
|
Class NAV shares
|
|
|
|
|
Sold
| 11,853,285
| $132,278,372
| 15,250,197
| $170,297,846
|
Distributions reinvested
| 5,435,501
| 58,975,191
| 2,657,629
| 30,403,277
|
Repurchased
| (8,994,273)
| (112,990,718)
| (26,525,726)
| (321,831,718)
|
Net increase (decrease)
| 8,294,513
| $78,262,845
| (8,617,900)
| $(121,130,595)
|
Total net increase (decrease)
| 8,294,513
| $78,262,845
| (8,617,900)
| $(121,130,595)
|
| ANNUAL REPORT | JOHN HANCOCK Diversified Real Assets Fund
| 29
|
Affiliates of the fund owned 100% of
shares of Class NAV on March 31, 2023. Such concentration of shareholders’ capital could have a material effect on the fund if such shareholders redeem from the fund.
Note 6—Purchase and sale of securities
Purchases and sales of securities,
other than short-term investments, amounted to $644,854,971 and $619,557,116, respectively, for the year ended March 31, 2023.
Note 7—Industry or sector risk
The fund may invest a large
percentage of its assets in one or more particular industries or sectors of the economy. If a large percentage of the fund’s assets are economically tied to a single or small number of industries or sectors of
the economy, the fund will be less diversified than a more broadly diversified fund, and it may cause the fund to underperform if that industry or sector underperforms. In addition, focusing on a particular industry
or sector may make the fund’s NAV more volatile. Further, a fund that invests in particular industries or sectors is particularly susceptible to the impact of market, economic, regulatory and other factors
affecting those industries or sectors.
REITs, pooled investment vehicles
that typically invest in real estate directly or in loans collateralized by real estate, carry risks associated with owning real estate, including the potential for a decline in value due to economic or market
conditions. Securities of companies in the real estate industry carry risks associated with owning real estate, including the potential for a decline in value due to economic or market conditions.
Note 8—Investment by affiliated funds
Certain investors in the fund are
affiliated funds that are managed by the Advisor and its affiliates. The affiliated funds do not invest in the fund for the purpose of exercising management or control; however, this investment may represent a
significant portion of the fund’s net assets. At March 31, 2023, funds within the John Hancock group of funds complex held 100.0% of the fund’s net assets. The following fund(s) had an affiliate ownership
of 5% or more of the fund’s net assets:
Fund
| Affiliated Concentration
|
John Hancock Funds II Multimanager Lifestyle Growth Portfolio
| 33.4%
|
John Hancock Funds II Multimanager Lifestyle Balanced Portfolio
| 22.7%
|
John Hancock Funds II Multimanager Lifestyle Aggressive Portfolio
| 14.1%
|
John Hancock Funds II Multimanager 2025 Lifetime Portfolio
| 6.5%
|
John Hancock Funds II Multimanager 2030 Lifetime Portfolio
| 6.2%
|
Note 9—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*
| 4,928,736
| $43,836,586
| $295,638,545
| $(290,205,879)
| $(12,164)
| $14,991
| $535,928
| —
| $49,272,079
|
*
| Refer to the Securities lending note within Note 2 for details regarding this investment.
|
30
| JOHN HANCOCK Diversified Real Assets Fund | ANNUAL REPORT
|
|
Report of Independent Registered
Public Accounting Firm
To the Board of Trustees of John
Hancock Investment Trust and Shareholders of John Hancock Diversified Real Assets Fund
Opinion on the Financial Statements
We have audited the accompanying
statement of assets and liabilities, including the fund’s investments, of John Hancock Diversified Real Assets Fund (one of the funds constituting John Hancock Investment Trust, referred to hereafter the "Fund")
as of March 31, 2023, the related statement of operations for the year ended March 31, 2023, the statements of changes in net assets for each of the two years in the period ended March 31, 2023, including the related
notes, and the financial highlights for each of the five years in the period ended March 31, 2023 (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 March 31, 2023, 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 March 31, 2023 and the financial highlights for each of the five years in the period ended March 31, 2023 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 March 31, 2023 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 opinion.
/s/ PricewaterhouseCoopers LLP
Boston, Massachusetts
May 4, 2023
We have served as the auditor of one
or more investment companies in the John Hancock group of funds since 1988.
| ANNUAL REPORT | JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND
| 31
|
(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 March 31, 2023.
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 as Section 163(j) Interest Dividends.
The fund paid $34,391,675 in long
term capital gain dividends.
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 2023 Form 1099-DIV in early 2024. This will reflect the tax character of all distributions paid in calendar year 2023.
Please consult a tax advisor regarding
the tax consequences of your investment in the fund.
32
| JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND | ANNUAL REPORT
|
|
STATEMENT REGARDING LIQUIDITY
RISK MANAGEMENT
Operation of the Liquidity Risk
Management Program
This section describes the 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 Diversified Real Assets 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 subadvisors, Manulife Investment Management (North America) Limited (Manulife IM (NA)) and Wellington Management Company LLP (Wellington) (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 receives monthly
reports and holds quarterly in person meetings to: (1) review the day-to-day operations of the LRMP; (2) monitor current market and liquidity conditions and assess liquidity risks; (3) review and approve
month-end liquidity classifications; (4) monitor illiquid investment levels against the 15% limit on illiquid investments and established Highly Liquid Investment Minimums (HLIMs), if any; (5) review quarterly testing
and determinations, as applicable; (6) review redemption-in-kind activities; and (7) 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 issues. The Committee also monitors global events, such as the ongoing Russian invasion of
Ukraine and related U.S. imposed sanctions on the Russian government, companies and oligarchs, and other amendments to the Office of Foreign Assets Control sanctioned company lists, that could impact the markets and
liquidity of portfolio investments and their classifications. In addition, the Committee monitors macro events and assesses their potential impact on liquidity brought on by fear of contagion (e.g. regional banking
crisis).
The Committee provided the Board at
a meeting held on March 28-30, 2023 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, 2022 through December 31, 2022, included an assessment of important aspects of the LRMP including, but not limited to: (1) Security-level liquidity
classifications; (2) Fund-level liquidity risk assessment; (3) Reasonably Anticipated Trade Size (RATS) determination; (4) HLIM determination and daily monitoring; (5) Daily compliance with the 15% limit on illiquid
investments; (6) Operation of the Fund’s Redemption-In-Kind Procedures; and (7) Review of liquidity management facilities.
The report provided an update on
Committee activities over the previous year. Additionally, the report included a discussion of notable changes and enhancements to the LRMP implemented during 2022 and key initiatives for 2023.
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 shareholders’ interests in the Fund;
|
| ANNUAL REPORT | JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND
| 33
|
•
| The Fund did not experience any breaches of the 15% limit on illiquid investments, or any applicable HLIM, 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, as a part of their annual Rule 38a-1 assessment of the Fund’s policies and procedures, reviewed the LRMP’s control environment and deemed it to
be operating effectively and in compliance with the Board approved procedures.
|
Adequacy and Effectiveness
Based on the annual review and
assessment conducted by the Committee, the Committee has determined that the LRMP and its controls have been implemented and are operating in a manner that is adequately and effectively managing the liquidity risk of
the Fund.
34
| JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND | ANNUAL REPORT
|
|
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.
Independent Trustees
|
|
|
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
|
Hassell H. McClellan, Born: 1945
| 2012
| 186
|
Trustee and Chairperson of the Board
|
|
|
Director/Trustee, Virtus Funds (2008-2020); Director, The Barnes Group (2010-2021); Associate Professor, The Wallace E. Carroll School of Management,
Boston College (retired 2013). Trustee (since 2005) and Chairperson of the Board (since 2017) of various trusts within the John Hancock Fund Complex.
|
James R. Boyle, Born: 1959
| 2015
| 183
|
Trustee
|
|
|
Board Member, United of Omaha Life Insurance Company (since 2022). Board Member, Mutual of Omaha Investor Services, Inc. (since 2022). Foresters
Financial, Chief Executive Officer (2018–2022) and board member (2017–2022). Manulife Financial and John Hancock, more than 20 years, retiring in 2012 as Chief Executive Officer, John Hancock and Senior
Executive Vice President, Manulife Financial. Trustee of various trusts within the John Hancock Fund Complex (2005–2014 and since 2015).
|
William H. Cunningham,2 Born: 1944
| 1986
| 184
|
Trustee
|
|
|
Professor, University of Texas, Austin, Texas (since 1971); former Chancellor, University of Texas System and former President of the University of
Texas, Austin, Texas; Director (since 2006), Lincoln National Corporation (insurance); Director, Southwest Airlines (since 2000). Trustee of various trusts within the John Hancock Fund Complex (since 1986).
|
Noni L. Ellison,* Born: 1971
| 2022
| 183
|
Trustee
|
|
|
Senior Vice President, General Counsel & Corporate Secretary, Tractor Supply Company (rural lifestyle retailer) (since 2021); General Counsel,
Chief Compliance Officer & Corporate Secretary, Carestream Dental, L.L.C.(2017–2021); Associate General Counsel & Assistant Corporate Secretary, W.W. Grainger, Inc. (global industrial supplier)
(2015–2017); Board Member, Goodwill of North Georgia, 2018 (FY2019)–2020 (FY2021); Board Member, Howard University School of Law Board of Visitors (since 2021); Board Member, University of Chicago Law
School Board of Visitors (since 2016); Board member, Children’s Healthcare of Atlanta Foundation Board (2021–present). Trustee of various trusts within the John Hancock Fund Complex (since 2022).
|
Grace K. Fey, Born: 1946
| 2012
| 186
|
Trustee
|
|
|
Chief Executive Officer, Grace Fey Advisors (since 2007); Director and Executive Vice President, Frontier Capital Management Company
(1988–2007); Director, Fiduciary Trust (since 2009). Trustee of various trusts within the John Hancock Fund Complex (since 2008).
|
Dean C. Garfield,* Born: 1968
| 2022
| 183
|
Trustee
|
|
|
Vice President, Netflix, Inc. (since 2019); President & Chief Executive Officer, Information Technology Industry Council (2009–2019); NYU School of Law Board of
Trustees (since 2021); Member, U.S. Department of Transportation, Advisory Committee on Automation (since 2021); President of the United States Trade Advisory Council (2010–2018); Board Member, College for Every
Student (2017–2021); Board Member, The Seed School of Washington, D.C. (2012–2017). Trustee of various trusts within the John Hancock Fund Complex (since 2022).
|
| ANNUAL REPORT | JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND
| 35
|
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
| 185
|
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); 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 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).
|
Patricia Lizarraga,2,* Born: 1966
| 2022
| 183
|
Trustee
|
|
|
Founder, Chief Executive Officer, Hypatia Capital Group (advisory and asset management company) (since 2007); Independent Director, Audit Committee
Chair, and Risk Committee Member, Credicorp, Ltd. (since 2017); Independent Director, Audit Committee Chair, Banco De Credito Del Peru (since 2017); Trustee, Museum of Art of Lima (since 2009). Trustee of various
trusts within the John Hancock Fund Complex (since 2022).
|
Steven R. Pruchansky, Born: 1944
| 1994
| 183
|
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
| 183
|
Trustee
|
|
|
Director, Audit Committee Chair, Oatly Group AB (plant-based drink company) (since 2021); 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 and Audit Committee Chair, Planet Fitness
(since 2016); Chief Financial Officer and Treasurer, Keurig Green Mountain, Inc. (2003-retired 2015). Trustee of various trusts within the John Hancock Fund Complex (since 2020).
|
Gregory A. Russo, Born: 1949
| 2009
| 183
|
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); Global Vice Chairman, Risk & Regulatory
Matters, KPMG LLP (KPMG) (2002–2006); Vice Chairman, Industrial Markets, KPMG (1998–2002). Trustee of various trusts within the John Hancock Fund Complex (since 2008).
|
36
| JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND | ANNUAL REPORT
|
|
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
| 184
|
President and Non-Independent Trustee
|
|
|
Global Head of Retail for Manulife (since 2022); 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
| 183
|
Non-Independent Trustee
|
|
|
President and CEO, John Hancock (since 2017); President and CEO, Manulife Canadian Division (2013–2017); Member, Board of Directors, Boston
Medical Center (since 2021); 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 and since 2017). Trustee of various trusts within the John Hancock Fund
Complex (since 2018).
|
Paul Lorentz,† Born: 1968
| 2022
| 183
|
Non-Independent Trustee
|
|
|
Global Head, Manulife Wealth and Asset Management (since 2017); General Manager, Manulife, Individual Wealth Management and Insurance (2013–2017); President,
Manulife Investments (2010–2016). Trustee of various trusts within the John Hancock Fund Complex (since 2022).
|
Principal officers who are not Trustees
|
|
Name, year of birth
Position(s) held with Trust
Principal occupation(s)
during past 5 years
| Current
Position(s)
with the
Trust
since
|
Charles A. Rizzo, Born: 1957
| 2007
|
Chief Financial Officer
|
|
Vice President, John Hancock Financial Services (since 2008); Senior Vice President, John Hancock Investment Management LLC and John Hancock Variable
Trust Advisers LLC (since 2008); Chief Financial Officer of various trusts within the John Hancock Fund Complex (since 2007).
|
Salvatore Schiavone, Born: 1965
| 2010
|
Treasurer
|
|
Assistant Vice President, John Hancock Financial Services (since 2007); Vice President, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers
LLC (since 2007); Treasurer of various trusts within the John Hancock Fund Complex (since 2007, including prior positions).
|
| ANNUAL REPORT | JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND
| 37
|
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 800-225-5291.
1
| Each Trustee holds office until his or her successor is duly 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.
|
*
| Elected to serve as Independent Trustee effective as of September 9, 2022.
|
^
| Ms. Harrison is retiring effective May 1, 2023.
|
†
| Elected to serve as Non-Independent Trustee effective as of September 9, 2022.
|
38
| JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND | ANNUAL REPORT
|
|
Trustees
Hassell H. McClellan, Chairperson
Steven R. Pruchansky, Vice Chairperson
Andrew G. Arnott†
James R. Boyle
William H. Cunningham*
Grace K. Fey
Noni L. Ellison^
Dean C. Garfield^
Marianne Harrison†,#
Deborah C. Jackson
Patricia Lizarraga*,^
Paul Lorentz‡
Frances G. Rathke*
Gregory A. Russo
Officers
Andrew G. Arnott
President
Charles A. Rizzo
Chief Financial Officer
Salvatore Schiavone
Treasurer
Christopher (Kit) Sechler
Secretary and Chief Legal Officer
Trevor Swanberg
Chief Compliance Officer
Investment advisor
John Hancock Investment Management
LLC
Subadvisor
Manulife Investment Management
(North America) Limited (Manulife IM (NA))
Wellington Management Company LLP (Wellington)
Portfolio Managers
The Investment Management Teams
at
Manulife IM (NA) and Wellington
Principal distributor
John Hancock Investment Management
Distributors LLC
Custodian
Citibank, N.A.
Legal counsel
K&L Gates LLP
Independent registered public
accounting firm
PricewaterhouseCoopers LLP
† Non-Independent Trustee
* Member of the Audit Committee
^ Elected to serve as Independent Trustee effective as of September 9, 2022.
# Ms. Harrison is retiring effective May 1, 2023.
‡ Elected to serve as Non-Independent Trustee effective as of September 9, 2022.
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
|
| ANNUAL REPORT | JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND
| 39
|
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
Mid Cap Growth
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 Environmental
Opportunities
Global Equity
Global Shareholder Yield
Global Thematic Opportunities
International Dynamic Growth
International Growth
International Small Company
FIXED-INCOME FUNDS
Bond
California Municipal Bond
Emerging Markets Debt
Floating Rate Income
Government Income
High Yield
High Yield Municipal Bond
Income
Investment Grade Bond
Money Market
Municipal Opportunities
Opportunistic Fixed Income
Short Duration Bond
Short Duration Municipal
Opportunities
Strategic Income Opportunities
ALTERNATIVE FUNDS
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 Investment Management at 800-225-5291, or visit our website at jhinvestments.com. Please read the prospectus carefully before investing or sending money.
EXCHANGE-TRADED FUNDS
John Hancock Corporate Bond ETF
John Hancock International High
Dividend ETF
John Hancock Mortgage-Backed
Securities ETF
John Hancock Multifactor Developed
International ETF
John Hancock Multifactor Emerging
Markets ETF
John Hancock Multifactor Large Cap
ETF
John Hancock Multifactor Mid Cap
ETF
John Hancock Multifactor Small Cap
ETF
John Hancock Preferred Income
ETF
Johh Hancock U.S. High Dividend
ETF
ASSET ALLOCATION/TARGET DATE FUNDS
Balanced
Multi-Asset High Income
Lifestyle Blend Portfolios
Lifetime Blend Portfolios
Multimanager Lifestyle
Portfolios
Multimanager Lifetime Portfolios
Preservation Blend Portfolios
ENVIRONMENTAL, SOCIAL, AND
GOVERNANCE FUNDS
ESG Core Bond
ESG International Equity
ESG Large Cap Core
CLOSED-END FUNDS
Asset-Based Lending
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.
A better way to invest
We serve investors globally through
a unique multimanager approach:
We search the world to find proven portfolio teams with specialized
expertise for every strategy we offer, then we apply robust investment
oversight to ensure they continue to meet our uncompromising
standards and serve the best interests of our shareholders.
Results for investors
Our unique approach to asset
management enables us to provide
a diverse set of investments backed by some of the world’s best
managers, along with strong risk-adjusted returns across asset classes.
“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
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 Diversified Real Assets Fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by a prospectus.
5/2023
Annual report
John Hancock
Fundamental Equity Income Fund
U.S. equity
March 31, 2023
A message to shareholders
Dear shareholder,
The U.S. stock market lost
ground and experienced elevated volatility during the 12 months ended March 31, 2023. While economic growth remained in positive territory, the aggressive actions of the U.S. Federal Reserve (Fed) raised concerns that
a recession and a concurrent slowdown in corporate earnings would occur in 2023. A variety of other events weighed on sentiment throughout the period, including the Russian invasion of Ukraine and China’s
extended zero-COVID policy in place until the close of 2022.
U.S. stocks advanced during
the first quarter of 2023, despite the unexpected collapse of three regional banks. Although the bank news initially led to a steep market decline, stocks recovered when it became clear the industry’s problems
were contained, consumers were remaining resilient, and inflation was in line with expectations. The likelihood that a constrained lending environment would help slow economic growth and lead to stabilized interest
rates further encouraged investors. The Fed proceeded with another increase in its target interest rate toward the end of the period.
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
Global Head of Retail,
Manulife Investment Management
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
Fundamental Equity Income Fund
| ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL EQUITY INCOME FUND
| 1
|
INVESTMENT OBJECTIVE
The fund seeks long-term capital
appreciation and current income.
TOTAL RETURNS AS OF
3/31/2023(%)
The Russell 1000 Value Index
tracks the performance of publicly traded large-cap companies in the United States with lower price-to-book ratios and lower forecasted growth values.
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 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. For
further information on the fund’s objectives, risks, and strategy, see the fund’s prospectus.
2
| JOHN HANCOCK FUNDAMENTAL EQUITY INCOME FUND | ANNUAL REPORT
|
|
PERFORMANCE HIGHLIGHTS OVER THE
PERIOD
Persistent
volatility rocked the market this period
After being
buffeted by inflation fears, rising interest rates and geopolitical tensions, stocks regained some ground in late 2022 and early 2023 as inflation eased and an anticipated recession failed to materialize.
The fund
outperformed the Russell 1000 Value Index
For the
abbreviated period, security selection in the information technology, financials, consumer discretionary, and consumer staples sectors notably boosted the fund’s relative performance.
Stock picks in
the energy sector detracted
Investment
choices in the energy sector, plus positioning in the real estate and industrials sectors, hindered performance versus the benchmark.
SECTOR COMPOSITION AS OF
3/31/2023 (% of net assets)
Notes about risk
The fund is subject to various
risks as described in the fund’s prospectus. Political tensions and armed conflicts, including the Russian invasion of Ukraine, and any resulting economic sanctions on entities and/or individuals of a particular
country could lead such a country into an economic recession. The 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. For more information, please refer to the “Principal risks” section of the prospectus.
| ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL EQUITY INCOME FUND
| 3
|
Management’s discussion of fund
performance
John Hancock Fundamental Equity
Income Fund commenced operations on June 28, 2022. The material below reflects its performance during the period from June 28, 2022 through March 31, 2023.
What drove the U.S. stock
market’s return for the abbreviated period ended March 31, 2023?
Elevated inflation, higher interest
rates, recession fears and geopolitical tensions led to volatility that pressured returns, especially in the first half of the period. To tame inflation, the U.S. Federal Reserve (Fed) aggressively raised its
short-term interest rate target. However, as inflationary pressure began to ease in early 2023, the Fed started dialing back the size of its rate hikes. Plus, employment remained healthy, and the economy avoided
recession despite late-period turmoil in the banking industry, helping stocks to rally in the second half of the period. Amid this backdrop, large-cap value stocks outperformed their growth peers.
How did the fund perform?
The fund outperformed its benchmark
thanks to stock picks in the information technology, financials, consumer discretionary, and consumer staples sectors. Top individual contributors included U.S. home builder Lennar Corp. Its shares rallied sharply as
price cuts aided unit sales growth, resulting in healthy cash flow and a strong balance sheet. Software company Oracle Corp. and semiconductor company
TOP 10 HOLDINGS
AS OF 3/31/2023 (% of net assets)
|
Crown Castle, Inc.
| 4.5
|
KKR & Company, Inc.
| 3.7
|
Comcast Corp., Class A
| 3.6
|
Oracle Corp.
| 3.3
|
GSK PLC, ADR
| 3.3
|
American Tower Corp.
| 3.2
|
Citigroup, Inc.
| 3.2
|
Kinder Morgan, Inc.
| 3.2
|
Walmart, Inc.
| 2.9
|
LyondellBasell Industries NV, Class A
| 2.9
|
TOTAL
| 33.8
|
Cash and cash equivalents are not included.
|
COUNTRY COMPOSITION
AS OF 3/31/2023 (% of net assets)
|
United States
| 88.1
|
United Kingdom
| 3.3
|
Switzerland
| 2.6
|
France
| 2.4
|
Canada
| 2.3
|
Belgium
| 1.3
|
TOTAL
| 100.0
|
4
| JOHN HANCOCK FUNDAMENTAL EQUITY INCOME FUND | ANNUAL REPORT
|
|
Analog Devices, Inc. also stood out. Oracle
benefited from the growth of its new cloud solutions business, while Analog gained from strong quarterly results and a better-than-expected outlook due to resilience in its industrials, auto and communications end
markets. Each of these stocks was a sizable overweight compared with its benchmark.
Which investment choices hindered
relative performance?
Security selection in the energy
sector, an overweight and stock picks in the real estate sector, and an underweight and investment choices in industrials hampered performance. Among individual detractors was an out-of-benchmark position in
U.K.-based pharmaceuticals company GSK PLC, which fell sharply following the spinout last summer of Haleon PLC, its consumer healthcare business, and litigation exposure from its former ownership of the heartburn drug
Zantac. In real estate, an out-of-benchmark stake in Crown Castle, Inc. and an overweight in American Tower Corp. detracted as higher interest rates raised questions about the ability of cell phone tower companies to
finance future acquisitions.
How was the fund positioned at
period end?
Our bottom-up focus is on what we
believe are financially sound companies with competitive advantages, the ability to generate substantial cash flow over sustained periods and attractive stock prices relative to our estimate of their worth. We favor
dividend-paying stocks in an effort to deliver a higher yield than the index. We’ve found some of the best opportunities meeting these criteria in the information technology and real estate sectors, each an
overweight at period end.
Emory W. Sanders, Jr., CFA
The views expressed in
this report are exclusively those of the portfolio management team at Manulife Investment Management (US) LLC, and are subject to change. They are not meant as investment advice. Please note that the holdings
discussed in this report may not have been held by the fund for the entire period. Portfolio composition is subject to review in accordance with the fund’s investment strategy and may vary in the future. Current
and future portfolio holdings are subject to risk.
| ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL EQUITY INCOME FUND
| 5
|
TOTAL RETURNS FOR THE PERIOD
ENDED MARCH 31, 2023
Cumulative total returns (%)
with maximum sales charge
|
| Since
inception
(6-28-22)
|
Class I1
| 9.22
|
Index†
| 4.59
|
Performance figures assume all
distributions have been reinvested. Sales charges are not applicable to Class I shares.
The expense ratios of the fund,
both net (including any fee waivers and/or expense limitations) and gross (excluding any fee waivers and/or expense limitations), are set forth according to the most recent publicly available prospectus for the fund
and may differ from those disclosed in the Financial highlights tables in this report. Net expenses reflect contractual fee waivers and expense limitations in effect until July 31, 2024 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 I*
|
Gross (%)
| 4.35
|
Net (%)
| 4.34
|
*Expenses have been estimated for
the first year of operations of the fund’s Class I shares.
Please refer to the most recent
prospectus and annual or semiannual report for more information on expenses and any expense limitation arrangements for the 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.
The performance table above and
the chart on the next page do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The fund’s performance results reflect any applicable fee
waivers or expense reductions, without which the expenses would increase and results would have been less favorable.
† Index is the Russell 1000 Value Index.
See the following page for
footnotes.
6
| JOHN HANCOCK FUNDAMENTAL EQUITY INCOME FUND | ANNUAL REPORT
|
|
This chart shows what happened to a
hypothetical $10,000 investment in John Hancock Fundamental Equity Income Fund for the periods indicated, assuming all distributions were reinvested. For comparison, we’ve shown the same investment in the
Russell 1000 Value Index.
The Russell 1000 Value Index
tracks the performance of publicly traded large-cap companies in the United States with lower price-to-book ratios and lower forecasted growth values.
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.
|
| ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL EQUITY INCOME FUND
| 7
|
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 October 1, 2022, with the same investment held until March 31, 2023.
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 March 31, 2023, 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
October 1, 2022, with the same investment held until March 31, 2023. 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.
8
| JOHN HANCOCK FUNDAMENTAL EQUITY INCOME FUND | ANNUAL REPORT
|
|
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
10-1-2022
| Ending
value on
3-31-2023
| Expenses
paid during
period ended
3-31-20231
| Annualized
expense
ratio
|
Class I
| Actual expenses/actual returns
| $1,000.00
| $1,196.00
| $4.49
| 0.82%
|
| Hypothetical example
| 1,000.00
| 1,020.80
| 4.13
| 0.82%
|
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).
|
| ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL EQUITY INCOME FUND
| 9
|
AS OF
3-31-23
|
|
|
| Shares
| Value
|
Common stocks 96.3%
|
|
|
|
| $6,406,245
|
(Cost $6,051,906)
|
|
|
|
|
|
Communication services 7.0%
|
|
| 463,847
|
Interactive media and services 3.4%
|
|
|
|
Alphabet, Inc., Class A (A)
|
|
| 1,362
| 141,280
|
Meta Platforms, Inc., Class A (A)
|
|
| 389
| 82,445
|
Media 3.6%
|
|
|
|
Comcast Corp., Class A
|
|
| 6,334
| 240,122
|
Consumer discretionary 6.2%
|
|
| 415,590
|
Broadline retail 2.5%
|
|
|
|
Amazon.com, Inc. (A)
|
|
| 853
| 88,106
|
eBay, Inc.
|
|
| 1,861
| 82,573
|
Hotels, restaurants and leisure 1.0%
|
|
|
|
Vail Resorts, Inc.
|
|
| 278
| 64,963
|
Household durables 2.7%
|
|
|
|
Lennar Corp., A Shares
|
|
| 1,712
| 179,948
|
Consumer staples 8.0%
|
|
| 531,414
|
Beverages 1.3%
|
|
|
|
Anheuser-Busch InBev SA/NV, ADR
|
|
| 1,327
| 88,551
|
Consumer staples distribution and retail 2.9%
|
|
|
|
Walmart, Inc.
|
|
| 1,326
| 195,519
|
Food products 2.5%
|
|
|
|
Danone SA, ADR
|
|
| 13,034
| 162,534
|
Household products 1.3%
|
|
|
|
Reynolds Consumer Products, Inc.
|
|
| 3,084
| 84,810
|
Energy 7.9%
|
|
| 522,209
|
Oil, gas and consumable fuels 7.9%
|
|
|
|
Cheniere Energy, Inc.
|
|
| 798
| 125,765
|
Kinder Morgan, Inc.
|
|
| 12,020
| 210,470
|
Suncor Energy, Inc.
|
|
| 4,888
| 151,772
|
Valero Energy Corp.
|
|
| 245
| 34,202
|
Financials 22.5%
|
|
| 1,495,320
|
Banks 7.5%
|
|
|
|
Bank of America Corp.
|
|
| 4,388
| 125,497
|
Citigroup, Inc.
|
|
| 4,506
| 211,286
|
JPMorgan Chase & Co.
|
|
| 655
| 85,353
|
Wells Fargo & Company
|
|
| 2,052
| 76,704
|
Capital markets 12.8%
|
|
|
|
KKR & Company, Inc.
|
|
| 4,616
| 242,432
|
10
| JOHN HANCOCK FUNDAMENTAL EQUITY INCOME FUND | ANNUAL REPORT
| SEE NOTES TO FINANCIAL STATEMENTS
|
|
|
|
| Shares
| Value
|
Financials (continued)
|
|
|
|
Capital markets (continued)
|
|
|
|
Morgan Stanley
|
|
| 1,796
| $157,689
|
Nasdaq, Inc.
|
|
| 1,757
| 96,055
|
S&P Global, Inc.
|
|
| 232
| 79,987
|
State Street Corp.
|
|
| 2,007
| 151,910
|
The Goldman Sachs Group, Inc.
|
|
| 372
| 121,685
|
Consumer finance 1.0%
|
|
|
|
American Express Company
|
|
| 407
| 67,135
|
Financial services 1.2%
|
|
|
|
Visa, Inc., Class A
|
|
| 353
| 79,587
|
Health care 12.1%
|
|
| 805,736
|
Biotechnology 2.7%
|
|
|
|
Amgen, Inc.
|
|
| 273
| 65,998
|
Gilead Sciences, Inc.
|
|
| 1,371
| 113,752
|
Health care providers and services 1.6%
|
|
|
|
Elevance Health, Inc.
|
|
| 142
| 65,293
|
UnitedHealth Group, Inc.
|
|
| 88
| 41,588
|
Pharmaceuticals 7.8%
|
|
|
|
Bristol-Myers Squibb Company
|
|
| 953
| 66,052
|
GSK PLC, ADR
|
|
| 6,146
| 218,675
|
Merck & Company, Inc.
|
|
| 560
| 59,578
|
Novartis AG, ADR
|
|
| 1,900
| 174,800
|
Industrials 6.4%
|
|
| 426,344
|
Aerospace and defense 1.5%
|
|
|
|
Lockheed Martin Corp.
|
|
| 65
| 30,727
|
Raytheon Technologies Corp.
|
|
| 686
| 67,180
|
Air freight and logistics 2.0%
|
|
|
|
United Parcel Service, Inc., Class B
|
|
| 698
| 135,405
|
Ground transportation 1.7%
|
|
|
|
Union Pacific Corp.
|
|
| 570
| 114,718
|
Machinery 1.2%
|
|
|
|
Parker-Hannifin Corp.
|
|
| 233
| 78,314
|
Information technology 13.7%
|
|
| 914,138
|
Semiconductors and semiconductor equipment 6.6%
|
|
|
|
Analog Devices, Inc.
|
|
| 943
| 185,978
|
Broadcom, Inc.
|
|
| 220
| 141,139
|
Texas Instruments, Inc.
|
|
| 609
| 113,280
|
Software 7.1%
|
|
|
|
Adobe, Inc. (A)
|
|
| 177
| 68,210
|
Microsoft Corp.
|
|
| 636
| 183,359
|
SEE NOTES TO FINANCIAL STATEMENTS
| ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL EQUITY INCOME FUND
| 11
|
|
|
|
| Shares
| Value
|
Information technology (continued)
|
|
|
|
Software (continued)
|
|
|
|
Oracle Corp.
|
|
| 2,391
| $222,172
|
Materials 2.9%
|
|
| 189,846
|
Chemicals 2.9%
|
|
|
|
LyondellBasell Industries NV, Class A
|
|
| 2,022
| 189,846
|
Real estate 9.6%
|
|
| 641,801
|
Specialized REITs 9.6%
|
|
|
|
American Tower Corp.
|
|
| 1,048
| 214,148
|
Crown Castle, Inc.
|
|
| 2,228
| 298,196
|
Lamar Advertising Company, Class A
|
|
| 1,296
| 129,457
|
|
|
| Yield (%)
|
| Shares
| Value
|
Short-term investments 4.1%
|
|
|
|
| $270,001
|
(Cost $269,957)
|
|
|
|
|
|
Short-term funds 4.1%
|
|
|
|
| 270,001
|
John Hancock Collateral Trust (B)
| 4.9438(C)
|
| 27,008
| 270,001
|
|
Total investments (Cost $6,321,863) 100.4%
|
|
| $6,676,246
|
Other assets and liabilities, net (0.4%)
|
|
|
| (26,442)
|
Total net assets 100.0%
|
|
|
|
| $6,649,804
|
The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund.
|
Security Abbreviations and Legend
|
ADR
| American Depositary Receipt
|
(A)
| Non-income producing security.
|
(B)
| Investment is an affiliate of the fund, the advisor and/or subadvisor.
|
(C)
| The rate shown is the annualized seven-day yield as of 3-31-23.
|
At 3-31-23, the aggregate cost of
investments for federal income tax purposes was $6,331,519. Net unrealized appreciation aggregated to $344,727, of which $497,551 related to gross unrealized appreciation and $152,824 related to gross unrealized
depreciation.
12
| JOHN HANCOCK FUNDAMENTAL EQUITY INCOME FUND | ANNUAL REPORT
| SEE NOTES TO FINANCIAL STATEMENTS
|
STATEMENT OF ASSETS AND
LIABILITIES 3-31-23
Assets
|
|
Unaffiliated investments, at value (Cost $6,051,906)
| $6,406,245
|
Affiliated investments, at value (Cost $269,957)
| 270,001
|
Total investments, at value (Cost $6,321,863)
| 6,676,246
|
Dividends and interest receivable
| 7,255
|
Receivable from affiliates
| 676
|
Other assets
| 29,920
|
Total assets
| 6,714,097
|
Liabilities
|
|
Payable to affiliates
|
|
Accounting and legal services fees
| 93
|
Transfer agent fees
| 586
|
Trustees’ fees
| 12
|
Other liabilities and accrued expenses
| 63,602
|
Total liabilities
| 64,293
|
Net assets
| $6,649,804
|
Net assets consist of
|
|
Paid-in capital
| $6,246,153
|
Total distributable earnings (loss)
| 403,651
|
Net assets
| $6,649,804
|
|
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 I ($6,649,804 ÷ 617,153 shares)
| $10.77
|
SEE NOTES TO FINANCIAL STATEMENTS
| ANNUAL REPORT | JOHN HANCOCK Fundamental Equity Income Fund
| 13
|
STATEMENT OF OPERATIONS For the period ended 3-31-231
Investment income
|
|
Dividends
| $98,521
|
Dividends from affiliated investments
| 3,650
|
Interest
| 772
|
Less foreign taxes withheld
| (1,672)
|
Total investment income
| 101,271
|
Expenses
|
|
Investment management fees
| 23,890
|
Accounting and legal services fees
| 561
|
Transfer agent fees
| 4,539
|
Trustees’ fees
| 103
|
Custodian fees
| 11,448
|
Printing and postage
| 14,824
|
Professional fees
| 117,599
|
Other
| 3,043
|
Total expenses
| 176,007
|
Less expense reductions
| (143,198)
|
Net expenses
| 32,809
|
Net investment income
| 68,462
|
Realized and unrealized gain (loss)
|
|
Net realized gain (loss) on
|
|
Unaffiliated investments and foreign currency transactions
| 49,153
|
Affiliated investments
| (157)
|
| 48,996
|
Change in net unrealized appreciation (depreciation) of
|
|
Unaffiliated investments
| 354,339
|
Affiliated investments
| 44
|
| 354,383
|
Net realized and unrealized gain
| 403,379
|
Increase in net assets from operations
| $471,841
|
1 Period from 6-28-22 (commencement of operations) to 3-31-23.
|
|
14
| JOHN HANCOCK Fundamental Equity Income Fund | ANNUAL REPORT
| SEE NOTES TO FINANCIAL STATEMENTS
|
STATEMENT OF CHANGES IN NET
ASSETS
| Period ended
3-31-231
|
Increase (decrease) in net assets
|
|
From operations
|
|
Net investment income
| $68,462
|
Net realized gain
| 48,996
|
Change in net unrealized appreciation (depreciation)
| 354,383
|
Increase in net assets resulting from operations
| 471,841
|
Distributions to shareholders
|
|
From earnings
|
|
Class I
| (73,690)
|
Total distributions
| (73,690)
|
From fund share transactions
| 6,251,653
|
Total increase
| 6,649,804
|
Net assets
|
|
Beginning of period
| —
|
End of period
| $6,649,804
|
1
| Period from 6-28-22 (commencement of operations) to 3-31-23.
|
SEE NOTES TO FINANCIAL STATEMENTS
| ANNUAL REPORT | JOHN HANCOCK Fundamental Equity Income Fund
| 15
|
CLASS I SHARES Period ended
| 3-31-231
|
Per share operating performance
|
|
Net asset value, beginning of period
| $10.00
|
Net investment income2
| 0.13
|
Net realized and unrealized gain (loss) on investments
| 0.78
|
Total from investment operations
| 0.91
|
Less distributions
|
|
From net investment income
| (0.14)
|
Net asset value, end of period
| $10.77
|
Total return (%)3
| 9.224
|
Ratios and supplemental data
|
|
Net assets, end of period (in millions)
| $7
|
Ratios (as a percentage of average net assets):
|
|
Expenses before reductions
| 4.255
|
Expenses including reductions
| 0.825
|
Net investment income
| 1.726
|
Portfolio turnover (%)
| 26
|
1
| Period from 6-28-22 (commencement of operations) to 3-31-23.
|
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. Certain expenses are presented unannualized.
|
6
| Annualized.
|
16
| JOHN HANCOCK Fundamental Equity Income Fund | ANNUAL REPORT
| SEE NOTES TO FINANCIAL STATEMENTS
|
Notes to financial statements
Note 1—Organization
John Hancock Fundamental Equity
Income Fund (the fund) is a series of John Hancock Investment Trust (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 long-term capital appreciation and current income.
The fund may offer multiple classes
of shares. The shares currently outstanding are detailed in the Statement of assets and liabilities. Class I shares are offered to institutions and certain investors. 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.
The fund commenced operations on
June 28, 2022.
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 Advisor’s Valuation Policies and Procedures.
In order to value the securities,
the fund uses the following valuation techniques: 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.
In certain instances, the Pricing
Committee of the Advisor 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 Pricing Committee following procedures established by the Advisor and adopted 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
| ANNUAL REPORT | JOHN HANCOCK Fundamental Equity Income Fund
| 17
|
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 Advisor’s 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.
As of March 31, 2023, all
investments are categorized as Level 1 under the hierarchy described above.
Real estate investment trusts. The fund may invest in real estate investment trusts (REITs). Distributions from REITs may be recorded as income and subsequently characterized by the REIT at the end of their fiscal year
as a reduction of cost of investments and/or as a realized gain. As a result, the fund will estimate the components of distributions from these securities. Such estimates are revised when the actual components of the
distributions are known.
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. 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.
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.
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
18
| JOHN HANCOCK Fundamental Equity Income Fund | ANNUAL REPORT
|
|
relate and adjustments are made when actual amounts
are known. The fund incurred offering costs of $120,000 which are amortized over the fund’s first year of operations. $90,505 of offering costs were expensed during the period ended March 31, 2023 and $29,495 of
unamortized offering cost are included in Other assets within the Statement of assets and liabilities.
Federal income taxes. The fund intends 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.
As of March 31, 2023, 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 and pays dividends quarterly. Capital gain
distributions, if any, are typically distributed annually.
The tax character of distributions
for the period ended March 31, 2023 was as follows:
| March 31, 2023
|
Ordinary income
| $73,690
|
As of March 31, 2023, the components
of distributable earnings on a tax basis consisted of $58,749 of undistributed ordinary income and $175 of undistributed long-term capital gains.
Such distributions and distributable
earnings, on a tax basis, are determined in conformity with income tax regulations, which may differ from US GAAP. Distributions in excess of tax basis earnings and profits, if any, are reported in the fund’s
financial statements as a return of capital.
Capital accounts within the
financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences, if any, will reverse in a subsequent
period. Book-tax differences are primarily attributable to wash sale loss deferrals.
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 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 4—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 John Hancock Life Insurance Company (U.S.A.), which in turn is a subsidiary 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)
0.600% of the first $1 billion of the fund’s average daily net assets; (b) 0.585% of the next $1 billion of the fund’s average daily net assets; and (c) 0.550% of the fund’s average daily net assets
in excess of $2 billion. 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.
| ANNUAL REPORT | JOHN HANCOCK Fundamental Equity Income Fund
| 19
|
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
period ended March 31, 2023, this waiver amounted to 0.01% of the fund’s average daily net assets, on an annualized basis. This arrangement expires on July 31, 2024, unless renewed by mutual agreement of the
fund and the Advisor based upon a determination that this is appropriate under the circumstances at that time.
The Advisor voluntarily agrees to
reduce its management fee for the fund, or if necessary make payment to the fund, in an amount equal to the amount by which the expenses of the fund exceed 0.71% of the average daily net assets of the fund. For
purposes of this agreement, expenses means all the expenses of the fund, excluding (a) taxes, (b) brokerage commissions, (c) interest expense, (d) litigation and indemnification expenses and other extraordinary
expenses not incurred in the ordinary course of the fund’s business, (e) class-specific expenses, (f) borrowing costs, (g) prime brokerage fees, (h) acquired fund fees and expenses paid indirectly, and (i) short
dividend expense. The Advisor may terminate this voluntary waiver at any time upon notice to the fund.
The expense reductions described
above amounted to $143,198 for the period ended March 31, 2023.
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 period ended March 31, 2023, were equivalent to a net annual effective rate of 0.00% of the fund’s average daily net
assets.
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 accounting and legal services fees incurred, for the period
ended March 31, 2023, amounted to an annual rate of 0.01% of the fund’s average daily net assets.
Transfer agent fees. The John Hancock group of funds has a complex-wide transfer agent agreement with John Hancock Signature Services, Inc. (Signature Services), an affiliate of the Advisor. The transfer agent
fees paid to Signature Services are determined based on the cost to Signature Services (Signature Services Cost) of providing recordkeeping services. It also includes out-of-pocket expenses, including payments made to
third-parties for recordkeeping services provided to their clients who invest in one or more John Hancock funds. In addition, Signature Services Cost may be reduced by certain fees that Signature Services receives in
connection with retirement and small accounts. Signature Services Cost is calculated monthly and allocated, as applicable, to five categories of share classes: Retail Share and Institutional Share Classes of
Non-Municipal Bond Funds, Class R6 Shares, Retirement Share Classes and Municipal Bond Share Classes. Within each of these categories, the applicable costs are allocated to the affected John Hancock affiliated funds
and/or classes, based on the relative average daily net assets.
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.
20
| JOHN HANCOCK Fundamental Equity Income Fund | ANNUAL REPORT
|
|
Note 5—Fund share transactions
Transactions in fund shares for the
period ended March 31, 2023 were as follows:
| Period ended 3-31-231
|
| Shares
| Amount
|
Class I shares
|
|
|
Sold
| 615,061
| $6,230,003
|
Distributions reinvested
| 2,092
| 21,650
|
Net increase
| 617,153
| $6,251,653
|
Total net increase
| 617,153
| $6,251,653
|
1
| Period from 6-28-22 (commencement of operations) to 3-31-23.
|
Affiliates of the fund owned 100% of
shares of Class I on March 31, 2023. Such concentration of shareholders’ capital could have a material effect on the fund if such shareholders redeem from the fund.
Note 6—Purchase and sale of securities
Purchases and sales of securities,
other than short-term investments, amounted to $7,331,043 and $1,321,548, respectively, for the period ended March 31, 2023.
Note 7—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
| 27,008
| —
| $1,569,206
| $(1,299,092)
| $(157)
| $44
| $3,650
| —
| $270,001
|
| ANNUAL REPORT | JOHN HANCOCK Fundamental Equity Income Fund
| 21
|
Report of Independent Registered
Public Accounting Firm
To the Board of Trustees of John
Hancock Investment Trust and Shareholders of John Hancock Fundamental Equity 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 Fundamental Equity Income Fund (one of the funds constituting John Hancock Investment Trust, referred to hereafter the
"Fund") as of March 31, 2023, and the related statement of operations and changes in net assets, including the related notes, and the financial highlights for the period June 28, 2022 (commencement of operations)
through March 31, 2023 (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
March 31, 2023, and the results of its operations, changes in its net assets, and the financial highlights for the period June 28, 2022 (commencement of operations) through March 31, 2023 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 audit. 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 audit 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 audit 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 audit 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 March 31, 2023 by correspondence with the custodian. We believe that our audit provides a reasonable
basis for our opinion.
/s/ PricewaterhouseCoopers LLP
Boston, Massachusetts
May 4, 2023
We have served as the auditor of one
or more investment companies in the John Hancock group of funds since 1988.
22
| JOHN HANCOCK FUNDAMENTAL EQUITY INCOME FUND | ANNUAL REPORT
|
|
(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 period ended March 31, 2023.
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 as Section 163(j) Interest Dividends.
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 2023 Form 1099-DIV in early 2024. This will reflect the tax character of all distributions paid in calendar year 2023.
Please consult a tax advisor regarding
the tax consequences of your investment in the fund.
| ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL EQUITY INCOME FUND
| 23
|
STATEMENT REGARDING LIQUIDITY
RISK MANAGEMENT
Operation of the Liquidity Risk
Management Program
This section describes the 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 Fundamental Equity 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 receives monthly
reports and holds quarterly in person meetings to: (1) review the day-to-day operations of the LRMP; (2) monitor current market and liquidity conditions and assess liquidity risks; (3) review and approve
month-end liquidity classifications; (4) monitor illiquid investment levels against the 15% limit on illiquid investments and established Highly Liquid Investment Minimums (HLIMs), if any; (5) review quarterly testing
and determinations, as applicable; (6) review redemption-in-kind activities; and (7) 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 issues. The Committee also monitors global events, such as the ongoing Russian invasion of
Ukraine and related U.S. imposed sanctions on the Russian government, companies and oligarchs, and other amendments to the Office of Foreign Assets Control sanctioned company lists, that could impact the markets and
liquidity of portfolio investments and their classifications. In addition, the Committee monitors macro events and assesses their potential impact on liquidity brought on by fear of contagion (e.g. regional banking
crisis).
The Committee provided the Board at
a meeting held on March 28-30, 2023 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, 2022 through December 31, 2022, included an assessment of important aspects of the LRMP including, but not limited to: (1) Security-level liquidity
classifications; (2) Fund-level liquidity risk assessment; (3) Reasonably Anticipated Trade Size (RATS) determination; (4) HLIM determination and daily monitoring; (5) Daily compliance with the 15% limit on illiquid
investments; (6) Operation of the Fund’s Redemption-In-Kind Procedures; and (7) Review of liquidity management facilities.
The report provided an update on
Committee activities over the previous year. Additionally, the report included a discussion of notable changes and enhancements to the LRMP implemented during 2022 and key initiatives for 2023.
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 shareholders’ interests in the Fund;
|
24
| JOHN HANCOCK FUNDAMENTAL EQUITY INCOME FUND | ANNUAL REPORT
|
|
•
| The Fund did not experience any breaches of the 15% limit on illiquid investments, or any applicable HLIM, 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, as a part of their annual Rule 38a-1 assessment of the Fund’s policies and procedures, reviewed the LRMP’s control environment and deemed it to
be operating effectively and in compliance with the Board approved procedures.
|
Adequacy and Effectiveness
Based on the annual review and
assessment conducted by the Committee, the Committee has determined that the LRMP and its controls have been implemented and are operating in a manner that is adequately and effectively managing the liquidity risk of
the Fund.
| ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL EQUITY INCOME FUND
| 25
|
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.
Independent Trustees
|
|
|
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
|
Hassell H. McClellan, Born: 1945
| 2012
| 186
|
Trustee and Chairperson of the Board
|
|
|
Director/Trustee, Virtus Funds (2008-2020); Director, The Barnes Group (2010-2021); Associate Professor, The Wallace E. Carroll School of Management,
Boston College (retired 2013). Trustee (since 2005) and Chairperson of the Board (since 2017) of various trusts within the John Hancock Fund Complex.
|
James R. Boyle, Born: 1959
| 2015
| 183
|
Trustee
|
|
|
Board Member, United of Omaha Life Insurance Company (since 2022). Board Member, Mutual of Omaha Investor Services, Inc. (since 2022). Foresters
Financial, Chief Executive Officer (2018–2022) and board member (2017–2022). Manulife Financial and John Hancock, more than 20 years, retiring in 2012 as Chief Executive Officer, John Hancock and Senior
Executive Vice President, Manulife Financial. Trustee of various trusts within the John Hancock Fund Complex (2005–2014 and since 2015).
|
William H. Cunningham,2 Born: 1944
| 1986
| 184
|
Trustee
|
|
|
Professor, University of Texas, Austin, Texas (since 1971); former Chancellor, University of Texas System and former President of the University of
Texas, Austin, Texas; Director (since 2006), Lincoln National Corporation (insurance); Director, Southwest Airlines (since 2000). Trustee of various trusts within the John Hancock Fund Complex (since 1986).
|
Noni L. Ellison,* Born: 1971
| 2022
| 183
|
Trustee
|
|
|
Senior Vice President, General Counsel & Corporate Secretary, Tractor Supply Company (rural lifestyle retailer) (since 2021); General Counsel,
Chief Compliance Officer & Corporate Secretary, Carestream Dental, L.L.C.(2017–2021); Associate General Counsel & Assistant Corporate Secretary, W.W. Grainger, Inc. (global industrial supplier)
(2015–2017); Board Member, Goodwill of North Georgia, 2018 (FY2019)–2020 (FY2021); Board Member, Howard University School of Law Board of Visitors (since 2021); Board Member, University of Chicago Law
School Board of Visitors (since 2016); Board member, Children’s Healthcare of Atlanta Foundation Board (2021–present). Trustee of various trusts within the John Hancock Fund Complex (since 2022).
|
Grace K. Fey, Born: 1946
| 2012
| 186
|
Trustee
|
|
|
Chief Executive Officer, Grace Fey Advisors (since 2007); Director and Executive Vice President, Frontier Capital Management Company
(1988–2007); Director, Fiduciary Trust (since 2009). Trustee of various trusts within the John Hancock Fund Complex (since 2008).
|
Dean C. Garfield,* Born: 1968
| 2022
| 183
|
Trustee
|
|
|
Vice President, Netflix, Inc. (since 2019); President & Chief Executive Officer, Information Technology Industry Council (2009–2019); NYU School of Law Board of
Trustees (since 2021); Member, U.S. Department of Transportation, Advisory Committee on Automation (since 2021); President of the United States Trade Advisory Council (2010–2018); Board Member, College for Every
Student (2017–2021); Board Member, The Seed School of Washington, D.C. (2012–2017). Trustee of various trusts within the John Hancock Fund Complex (since 2022).
|
26
| JOHN HANCOCK FUNDAMENTAL EQUITY 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
| 185
|
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); 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 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).
|
Patricia Lizarraga,2,* Born: 1966
| 2022
| 183
|
Trustee
|
|
|
Founder, Chief Executive Officer, Hypatia Capital Group (advisory and asset management company) (since 2007); Independent Director, Audit Committee
Chair, and Risk Committee Member, Credicorp, Ltd. (since 2017); Independent Director, Audit Committee Chair, Banco De Credito Del Peru (since 2017); Trustee, Museum of Art of Lima (since 2009). Trustee of various
trusts within the John Hancock Fund Complex (since 2022).
|
Steven R. Pruchansky, Born: 1944
| 1994
| 183
|
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
| 183
|
Trustee
|
|
|
Director, Audit Committee Chair, Oatly Group AB (plant-based drink company) (since 2021); 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 and Audit Committee Chair, Planet Fitness
(since 2016); Chief Financial Officer and Treasurer, Keurig Green Mountain, Inc. (2003-retired 2015). Trustee of various trusts within the John Hancock Fund Complex (since 2020).
|
Gregory A. Russo, Born: 1949
| 2009
| 183
|
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); Global Vice Chairman, Risk & Regulatory
Matters, KPMG LLP (KPMG) (2002–2006); Vice Chairman, Industrial Markets, KPMG (1998–2002). Trustee of various trusts within the John Hancock Fund Complex (since 2008).
|
| ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL EQUITY INCOME FUND
| 27
|
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
| 184
|
President and Non-Independent Trustee
|
|
|
Global Head of Retail for Manulife (since 2022); 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
| 183
|
Non-Independent Trustee
|
|
|
President and CEO, John Hancock (since 2017); President and CEO, Manulife Canadian Division (2013–2017); Member, Board of Directors, Boston
Medical Center (since 2021); 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 and since 2017). Trustee of various trusts within the John Hancock Fund
Complex (since 2018).
|
Paul Lorentz,† Born: 1968
| 2022
| 183
|
Non-Independent Trustee
|
|
|
Global Head, Manulife Wealth and Asset Management (since 2017); General Manager, Manulife, Individual Wealth Management and Insurance (2013–2017); President,
Manulife Investments (2010–2016). Trustee of various trusts within the John Hancock Fund Complex (since 2022).
|
Principal officers who are not Trustees
|
|
Name, year of birth
Position(s) held with Trust
Principal occupation(s)
during past 5 years
| Current
Position(s)
with the
Trust
since
|
Charles A. Rizzo, Born: 1957
| 2007
|
Chief Financial Officer
|
|
Vice President, John Hancock Financial Services (since 2008); Senior Vice President, John Hancock Investment Management LLC and John Hancock Variable
Trust Advisers LLC (since 2008); Chief Financial Officer of various trusts within the John Hancock Fund Complex (since 2007).
|
Salvatore Schiavone, Born: 1965
| 2010
|
Treasurer
|
|
Assistant Vice President, John Hancock Financial Services (since 2007); Vice President, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers
LLC (since 2007); Treasurer of various trusts within the John Hancock Fund Complex (since 2007, including prior positions).
|
28
| JOHN HANCOCK FUNDAMENTAL EQUITY 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
|
Christopher (Kit) Sechler, Born: 1973
| 2020
|
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 800-225-5291.
1
| Each Trustee holds office until his or her successor is duly 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.
|
*
| Elected to serve as Independent Trustee effective as of September 9, 2022.
|
^
| Ms. Harrison is retiring effective May 1, 2023.
|
†
| Elected to serve as Non-Independent Trustee effective as of September 9, 2022.
|
| ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL EQUITY INCOME FUND
| 29
|
Trustees
Hassell H. McClellan, Chairperson
Steven R. Pruchansky, Vice Chairperson
Andrew G. Arnott†
James R. Boyle
William H. Cunningham*
Grace K. Fey
Noni L. Ellison^
Dean C. Garfield^
Marianne Harrison†,#
Deborah C. Jackson
Patricia Lizarraga*,^
Paul Lorentz‡
Frances G. Rathke*
Gregory A. Russo
Officers
Andrew G. Arnott
President
Charles A. Rizzo
Chief Financial Officer
Salvatore Schiavone
Treasurer
Christopher (Kit) Sechler
Secretary and Chief Legal Officer
Trevor Swanberg
Chief Compliance Officer
Investment advisor
John Hancock Investment Management
LLC
Subadvisor
Manulife Investment Management (US)
LLC
Portfolio Managers
Michael J. Mattioli, CFA
Nicholas P. Renart
Emory W. Sanders, Jr., CFA
Jonathan T. White, 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
† Non-Independent Trustee
* Member of the Audit Committee
^ Elected to serve as Independent Trustee effective as of September 9, 2022.
# Ms. Harrison is retiring effective May 1, 2023.
‡ Elected to serve as Non-Independent Trustee effective as of September 9, 2022.
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 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
|
30
| JOHN HANCOCK FUNDAMENTAL EQUITY 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
Mid Cap Growth
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 Environmental
Opportunities
Global Equity
Global Shareholder Yield
Global Thematic Opportunities
International Dynamic Growth
International Growth
International Small Company
FIXED-INCOME FUNDS
Bond
California Municipal Bond
Emerging Markets Debt
Floating Rate Income
Government Income
High Yield
High Yield Municipal Bond
Income
Investment Grade Bond
Money Market
Municipal Opportunities
Opportunistic Fixed Income
Short Duration Bond
Short Duration Municipal
Opportunities
Strategic Income Opportunities
ALTERNATIVE FUNDS
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 Investment Management at 800-225-5291, or visit our website at jhinvestments.com. Please read the prospectus carefully before investing or sending money.
EXCHANGE-TRADED FUNDS
John Hancock Corporate Bond ETF
John Hancock International High
Dividend ETF
John Hancock Mortgage-Backed
Securities ETF
John Hancock Multifactor Developed
International ETF
John Hancock Multifactor Emerging
Markets ETF
John Hancock Multifactor Large Cap
ETF
John Hancock Multifactor Mid Cap
ETF
John Hancock Multifactor Small Cap
ETF
John Hancock Preferred Income
ETF
Johh Hancock U.S. High Dividend
ETF
ASSET ALLOCATION/TARGET DATE FUNDS
Balanced
Multi-Asset High Income
Lifestyle Blend Portfolios
Lifetime Blend Portfolios
Multimanager Lifestyle
Portfolios
Multimanager Lifetime Portfolios
Preservation Blend Portfolios
ENVIRONMENTAL, SOCIAL, AND
GOVERNANCE FUNDS
ESG Core Bond
ESG International Equity
ESG Large Cap Core
CLOSED-END FUNDS
Asset-Based Lending
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.
A better way to invest
We serve investors globally through
a unique multimanager approach:
We search the world to find proven portfolio teams with specialized
expertise for every strategy we offer, then we apply robust investment
oversight to ensure they continue to meet our uncompromising
standards and serve the best interests of our shareholders.
Results for investors
Our unique approach to asset
management enables us to provide
a diverse set of investments backed by some of the world’s best
managers, along with strong risk-adjusted returns across asset classes.
“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
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 Fundamental Equity Income Fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by a prospectus.
5/2023
Annual report
John Hancock
Mid Cap Growth Fund
U.S. equity
March 31, 2023
A message to shareholders
Dear shareholder,
The U.S. stock market lost
ground and experienced elevated volatility during the 12 months ended March 31, 2023. While economic growth remained in positive territory, the aggressive actions of the U.S. Federal Reserve (Fed) raised concerns that
a recession and a concurrent slowdown in corporate earnings would occur in 2023. A variety of other events weighed on sentiment throughout the period, including the Russian invasion of Ukraine and China’s
extended zero-COVID policy in place until the close of 2022.
U.S. stocks advanced during
the first quarter of 2023, despite the unexpected collapse of three regional banks. Although the bank news initially led to a steep market decline, stocks recovered when it became clear the industry’s problems
were contained, consumers were remaining resilient, and inflation was in line with expectations. The likelihood that a constrained lending environment would help slow economic growth and lead to stabilized interest
rates further encouraged investors. The Fed proceeded with another increase in its target interest rate toward the end of the period.
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
Global Head of Retail,
Manulife Investment Management
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
Mid Cap Growth Fund
| ANNUAL REPORT | JOHN HANCOCK MID CAP GROWTH FUND
| 1
|
INVESTMENT OBJECTIVE
The fund seeks long-term growth and
capital appreciation.
AVERAGE ANNUAL TOTAL RETURNS AS OF
3/31/2023 (%)
The Russell Midcap Growth Index
tracks the performance of publicly traded mid-cap companies with higher price-to-book ratios and higher forecasted growth values.
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.
1Effective 10-15-21, John Hancock Funds II Mid Cap Stock Fund (the Accounting Survivor) merged into the newly created John Hancock Mid Cap Growth Fund. The Mid Cap Growth Fund
adopted the performance and accounting history of the Accounting Survivor. Class 1 of the Accounting Survivor commenced operations on 10-17-05. Class R6 shares of the fund were first offered on 10-18-21. Class A
shares of the fund were first offered on 11-5-21. Class A returns prior to 10-18-21 are those of Class 1 shares of the Accounting Survivor and returns from 10-18-21 to Class A launch are those of Class R6 shares of
the fund that have not been adjusted for class-specific expenses; otherwise, returns would vary.
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 MID CAP GROWTH FUND | ANNUAL REPORT
|
|
PERFORMANCE HIGHLIGHTS OVER THE
LAST TWELVE MONTHS
U.S. stock market
posted negative returns
Inflation, rising
interest rates, and the failure of several regional banks caused market volatility during the period.
The fund posted a
loss and underperformed its benchmark
The fund
generated a negative return that fell short of the Russell Midcap Growth Index due largely to stock picking in the information technology, communication services, and healthcare sectors.
Underweight in
information technology helped performance
An underweight in
information technology and security selection in consumer discretionary aided performance.
SECTOR COMPOSITION AS OF 3/31/2023
(% of net assets)
Notes about risk
The fund is subject to various
risks as described in the fund’s prospectus. Political tensions and armed conflicts, including the Russian invasion of Ukraine, and any resulting economic sanctions on entities and/or individuals of a particular
country could lead such a country into an economic recession. The 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. For more information, please refer to the “Principal risks” section of the prospectus.
| ANNUAL REPORT | JOHN HANCOCK MID CAP GROWTH FUND
| 3
|
Management’s discussion of fund
performance
How did the markets perform during
the 12 months ended March 31, 2023?
Equities produced negative returns
for the period. While economic growth remained in positive territory, the U.S. Federal Reserve (Fed) aggressively fought rising inflation with numerous interest-rate hikes. The Fed’s actions—coupled with
the conflict between Russia and Ukraine, China’s extended zero-COVID policy, and the failure of several banks in the United States and Europe—raised concerns that a recession and a concurrent slowdown in
corporate earnings would occur.
How did the fund perform?
The fund produced a negative return
that lagged its benchmark. Security selection was the main detractor from relative performance, especially in the information technology, communication services, and healthcare sectors. Picks in the consumer
discretionary sector were positive. Sector selection also detracted, especially an overweight in the lagging communication services group and an underweight in the outperforming energy category. An underweight in
information technology modestly contributed.
Which stocks detracted the most from
the fund’s relative performance?
The fund’s largest detractor
was RingCentral, Inc., a global enterprise cloud-computing company whose shares declined as the company reported
TOP 10 HOLDINGS
AS OF 3/31/2023 (% of net assets)
|
iShares Russell Mid-Cap Growth ETF
| 4.8
|
Arista Networks, Inc.
| 4.4
|
Vanguard Mid-Cap Growth ETF
| 3.7
|
Veeva Systems, Inc., Class A
| 3.3
|
DexCom, Inc.
| 3.1
|
Insulet Corp.
| 3.1
|
Workday, Inc., Class A
| 3.0
|
Agilent Technologies, Inc.
| 2.9
|
Spotify Technology SA
| 2.8
|
Paycom Software, Inc.
| 2.8
|
TOTAL
| 33.9
|
Cash and cash equivalents are not included.
|
4
| JOHN HANCOCK MID CAP GROWTH FUND | ANNUAL REPORT
|
|
weaker-than-expected revenue and lowered its
financial outlook. Another relative detractor was ZoomInfo Technologies, Inc., a software and data company. Its shares fell meaningfully in November after the firm’s earnings report included financial guidance
that disappointed the market. Further hampering results was an out-of-benchmark position in Snap, Inc., a social media company whose shares fell during the period as the company lowered its financial guidance and
announced it would look to slow hiring. A slowdown in ad spending and supply-chain constraints also weighed on Snap’s shares. We sold the fund’s holdings in RingCentral and Snap prior to period end.
Which stocks contributed to relative
performance?
One notable relative contributor
was Ulta Beauty, Inc., an American chain of beauty stores. The company reported strong first-quarter earnings as increased traffic and average sales prices in stores helped fuel better-than-expected sales. Another
notable contributor was Insulet Corp., a medical device company. The stock of this maker of insulin pumps rose sharply in November as the company reported better-than-anticipated financial results and raised its
revenue guidance for 2022. A position in computer-networking solutions company Arista Networks, Inc. also aided returns.
Mario E. Abularach, CFA, CMT
The views expressed in
this report are exclusively those of the portfolio management team at Wellington Management Company LLP and are subject to change. They are not meant as investment advice. Please note that the holdings
discussed in this report may not have been held by the fund for the entire period. Portfolio composition is subject to review in accordance with the fund’s investment strategy and may vary in the future. Current
and future portfolio holdings are subject to risk.
| ANNUAL REPORT | JOHN HANCOCK MID CAP GROWTH FUND
| 5
|
TOTAL RETURNS FOR THE PERIOD
ENDED MARCH 31, 2023
Average annual total returns (%)
with maximum sales charge
| Cumulative total returns (%)
with maximum sales charge
|
| 1-year
| 5-year
| 10-year
| 5-year
| 10-year
|
Class A1
| -21.27
| 7.69
| 10.38
| 44.81
| 168.54
|
Class C1
| -18.53
| 8.57
| 10.83
| 50.82
| 179.61
|
Class I1,2
| -16.98
| 8.86
| 10.98
| 52.87
| 183.40
|
Class R61,2
| -16.81
| 8.90
| 11.00
| 53.19
| 184.01
|
Class NAV1,2
| -16.86
| 8.90
| 11.00
| 53.19
| 184.01
|
Index†
| -8.52
| 9.07
| 11.17
| 54.37
| 188.30
|
Performance figures assume all
distributions have been reinvested. Figures reflect maximum sales charge on Class A shares of 5%, and the applicable contingent deferred sales charge (CDSC) on Class C shares. Class C shares sold within one year of
purchase are subject to a 1% CDSC. Sales charges are not applicable to Class I, Class R6, and Class NAV 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 July 31, 2023 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 R6
| Class NAV
|
Gross (%)
| 1.25
| 2.00
| 1.00
| 0.89
| 0.88
|
Net (%)
| 1.17
| 1.92
| 0.92
| 0.81
| 0.80
|
Please refer to the most recent
prospectuses and annual or semiannual report for more information on expenses and any expense limitation arrangements for each class.
The returns reflect past results
and should not be considered indicative of future performance. The return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to
market volatility and other factors, the fund’s current performance may be higher or lower than the performance shown. For current to the most recent month-end performance data, please call
800–225–5291 or visit the fund’s website at jhinvestments.com.
The performance table above and
the chart on the next page do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The fund’s performance results reflect any applicable fee
waivers or expense reductions, without which the expenses would increase and results would have been less favorable.
† Index is the Russell Midcap Growth Index.
See the following page for
footnotes.
6
| JOHN HANCOCK MID CAP GROWTH FUND | ANNUAL REPORT
|
|
This chart and table show what
happened to a hypothetical $10,000 investment in John Hancock Mid Cap Growth Fund for the share classes and periods indicated, assuming all distributions were reinvested. For comparison, we’ve shown the same
investment in the Russell Midcap Growth Index.
| Start date
| With maximum
sales charge ($)
| Without
sales charge ($)
| Index ($)
|
Class C1,3
| 3-31-13
| 27,961
| 27,961
| 28,830
|
Class I1,2
| 3-31-13
| 28,340
| 28,340
| 28,830
|
Class R61,2
| 3-31-13
| 28,401
| 28,401
| 28,830
|
Class NAV1,2
| 3-31-13
| 28,401
| 28,401
| 28,830
|
The Russell Midcap Growth Index
tracks the performance of publicly traded mid-cap companies with higher price-to-book ratios and higher forecasted growth values.
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
| Effective 10-15-21, John Hancock Funds II Mid Cap Stock Fund (the Accounting Survivor) merged into the newly created John Hancock Mid Cap Growth Fund. The Mid Cap Growth Fund adopted the performance and
accounting history of the Accounting Survivor. Class 1 of the Accounting Survivor commenced operations on 10-17-05. Class NAV and Class R6 shares of the fund were first offered on 10-18-21. Class A, Class C, and Class
I shares of the fund were first offered on 11-5-21. Class A, Class C, and Class I returns prior to 10-18-21 are those of Class 1 shares of the Accounting Survivor and returns from 10-18-21 to launch are those of Class
R6 shares of the fund that have not been adjusted for class-specific expenses; otherwise, returns would vary.
|
2
| For certain types of investors, as described in the fund’s prospectuses.
|
3
| The contingent deferred sales charge is not applicable.
|
| ANNUAL REPORT | JOHN HANCOCK MID CAP GROWTH FUND
| 7
|
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 October 1, 2022, with the same investment held until March 31, 2023.
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 March 31, 2023, 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
October 1, 2022, with the same investment held until March 31, 2023. 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.
8
| JOHN HANCOCK MID CAP GROWTH FUND | ANNUAL REPORT
|
|
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 prospectuses for details regarding transaction costs.
SHAREHOLDER EXPENSE EXAMPLE
CHART
|
| Account
value on
10-1-2022
| Ending
value on
3-31-2023
| Expenses
paid during
period ended
3-31-20231
| Annualized
expense
ratio
|
Class A
| Actual expenses/actual returns
| $1,000.00
| $1,166.80
| $6.43
| 1.19%
|
| Hypothetical example
| 1,000.00
| 1,019.00
| 5.99
| 1.19%
|
Class C
| Actual expenses/actual returns
| 1,000.00
| 1,162.00
| 10.46
| 1.94%
|
| Hypothetical example
| 1,000.00
| 1,015.30
| 9.75
| 1.94%
|
Class I
| Actual expenses/actual returns
| 1,000.00
| 1,167.20
| 5.08
| 0.94%
|
| Hypothetical example
| 1,000.00
| 1,020.20
| 4.73
| 0.94%
|
Class R6
| Actual expenses/actual returns
| 1,000.00
| 1,168.80
| 4.49
| 0.83%
|
| Hypothetical example
| 1,000.00
| 1,020.80
| 4.18
| 0.83%
|
Class NAV
| Actual expenses/actual returns
| 1,000.00
| 1,168.80
| 4.43
| 0.82%
|
| Hypothetical example
| 1,000.00
| 1,020.80
| 4.13
| 0.82%
|
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).
|
| ANNUAL REPORT | JOHN HANCOCK MID CAP GROWTH FUND
| 9
|
AS OF
3-31-23
|
|
|
| Shares
| Value
|
Common stocks 89.6%
|
|
|
|
| $1,246,684,668
|
(Cost $1,158,641,391)
|
|
|
|
|
|
Communication services 5.0%
|
|
| 69,283,723
|
Entertainment 3.9%
|
|
|
|
Live Nation Entertainment, Inc. (A)
|
|
| 215,468
| 15,082,760
|
Spotify Technology SA (A)
|
|
| 292,552
| 39,090,798
|
Interactive media and services 1.1%
|
|
|
|
ZoomInfo Technologies, Inc. (A)
|
|
| 611,500
| 15,110,165
|
Consumer discretionary 14.4%
|
|
| 201,009,174
|
Automobile components 0.8%
|
|
|
|
Mobileye Global, Inc., Class A (A)(B)
|
|
| 250,920
| 10,857,308
|
Broadline retail 1.4%
|
|
|
|
Etsy, Inc. (A)
|
|
| 171,463
| 19,088,976
|
Hotels, restaurants and leisure 5.7%
|
|
|
|
Aramark
|
|
| 397,961
| 14,247,004
|
Chipotle Mexican Grill, Inc. (A)
|
|
| 10,764
| 18,388,034
|
DraftKings, Inc., Class A (A)
|
|
| 1,200,287
| 23,237,556
|
Las Vegas Sands Corp. (A)
|
|
| 422,965
| 24,299,339
|
Household durables 1.0%
|
|
|
|
Lennar Corp., A Shares
|
|
| 139,863
| 14,701,000
|
Specialty retail 3.3%
|
|
|
|
Ross Stores, Inc.
|
|
| 200,047
| 21,230,988
|
Ulta Beauty, Inc. (A)
|
|
| 45,237
| 24,684,474
|
Textiles, apparel and luxury goods 2.2%
|
|
|
|
Deckers Outdoor Corp. (A)
|
|
| 67,344
| 30,274,495
|
Consumer staples 3.0%
|
|
| 41,596,682
|
Beverages 1.5%
|
|
|
|
Celsius Holdings, Inc. (A)
|
|
| 222,216
| 20,652,755
|
Food products 1.5%
|
|
|
|
Lamb Weston Holdings, Inc.
|
|
| 200,382
| 20,943,927
|
Energy 4.1%
|
|
| 57,327,947
|
Oil, gas and consumable fuels 4.1%
|
|
|
|
Cheniere Energy, Inc.
|
|
| 97,292
| 15,333,219
|
Diamondback Energy, Inc.
|
|
| 103,539
| 13,995,367
|
Pioneer Natural Resources Company
|
|
| 61,362
| 12,532,575
|
Targa Resources Corp.
|
|
| 212,019
| 15,466,786
|
Financials 5.6%
|
|
| 78,146,375
|
Capital markets 3.9%
|
|
|
|
Ares Management Corp., Class A
|
|
| 254,577
| 21,241,905
|
10
| JOHN HANCOCK MID CAP GROWTH FUND | ANNUAL REPORT
| SEE NOTES TO FINANCIAL STATEMENTS
|
|
|
|
| Shares
| Value
|
Financials (continued)
|
|
|
|
Capital markets (continued)
|
|
|
|
Tradeweb Markets, Inc., Class A
|
|
| 412,430
| $32,590,219
|
Financial services 1.7%
|
|
|
|
Block, Inc. (A)
|
|
| 354,177
| 24,314,251
|
Health care 21.7%
|
|
| 301,968,351
|
Biotechnology 3.0%
|
|
|
|
Exact Sciences Corp. (A)
|
|
| 445,277
| 30,194,233
|
United Therapeutics Corp. (A)
|
|
| 50,978
| 11,417,033
|
Health care equipment and supplies 10.3%
|
|
|
|
DexCom, Inc. (A)
|
|
| 375,558
| 43,632,328
|
Hologic, Inc. (A)
|
|
| 168,158
| 13,570,351
|
Inspire Medical Systems, Inc. (A)
|
|
| 96,879
| 22,676,468
|
Insulet Corp. (A)
|
|
| 132,550
| 42,278,148
|
Shockwave Medical, Inc. (A)
|
|
| 96,371
| 20,896,124
|
Health care technology 3.3%
|
|
|
|
Veeva Systems, Inc., Class A (A)
|
|
| 250,421
| 46,024,876
|
Life sciences tools and services 4.2%
|
|
|
|
Agilent Technologies, Inc.
|
|
| 287,386
| 39,756,979
|
Medpace Holdings, Inc. (A)
|
|
| 98,555
| 18,533,268
|
Pharmaceuticals 0.9%
|
|
|
|
Jazz Pharmaceuticals PLC (A)
|
|
| 88,762
| 12,988,543
|
Industrials 10.7%
|
|
| 148,195,988
|
Aerospace and defense 0.7%
|
|
|
|
Curtiss-Wright Corp.
|
|
| 51,494
| 9,076,332
|
Building products 2.8%
|
|
|
|
Builders FirstSource, Inc. (A)
|
|
| 159,346
| 14,146,738
|
Johnson Controls International PLC
|
|
| 416,245
| 25,066,274
|
Construction and engineering 2.2%
|
|
|
|
Fluor Corp. (A)
|
|
| 548,426
| 16,951,848
|
MasTec, Inc. (A)
|
|
| 146,901
| 13,873,330
|
Machinery 0.9%
|
|
|
|
The Toro Company
|
|
| 116,447
| 12,944,249
|
Professional services 2.7%
|
|
|
|
CoStar Group, Inc. (A)
|
|
| 286,380
| 19,717,263
|
EXL Service Holdings, Inc. (A)
|
|
| 105,440
| 17,063,355
|
Trading companies and distributors 1.4%
|
|
|
|
WESCO International, Inc.
|
|
| 125,253
| 19,356,599
|
Information technology 22.9%
|
|
| 319,009,888
|
Communications equipment 4.4%
|
|
|
|
Arista Networks, Inc. (A)
|
|
| 362,471
| 60,844,379
|
SEE NOTES TO FINANCIAL STATEMENTS
| ANNUAL REPORT | JOHN HANCOCK MID CAP GROWTH FUND
| 11
|
|
|
|
| Shares
| Value
|
Information technology (continued)
|
|
|
|
Electronic equipment, instruments and components 1.9%
|
|
|
|
Flex, Ltd. (A)
|
|
| 1,159,921
| $26,689,782
|
IT services 2.9%
|
|
|
|
Gartner, Inc. (A)
|
|
| 38,948
| 12,688,090
|
Okta, Inc. (A)
|
|
| 332,311
| 28,658,501
|
Semiconductors and semiconductor equipment 5.7%
|
|
|
|
First Solar, Inc. (A)
|
|
| 81,111
| 17,641,643
|
MKS Instruments, Inc.
|
|
| 149,113
| 13,214,394
|
SolarEdge Technologies, Inc. (A)
|
|
| 92,668
| 28,166,439
|
Universal Display Corp.
|
|
| 128,454
| 19,927,069
|
Software 8.0%
|
|
|
|
DocuSign, Inc. (A)
|
|
| 527,591
| 30,758,555
|
Paycom Software, Inc. (A)
|
|
| 127,051
| 38,624,775
|
Workday, Inc., Class A (A)
|
|
| 202,364
| 41,796,261
|
Materials 2.2%
|
|
| 30,146,540
|
Chemicals 2.2%
|
|
|
|
|
Albemarle Corp.
|
|
| 136,385
| 30,146,540
|
|
Preferred securities 0.5%
|
|
|
|
| $6,476,070
|
(Cost $9,360,258)
|
|
|
|
|
|
Information technology 0.5%
|
|
| 6,476,070
|
Software 0.5%
|
|
|
|
Essence Group Holdings Corp. (A)(C)(D)
|
| 2,958,957
| 3,373,211
|
|
Lookout, Inc., Series F (A)(C)(D)
|
| 392,767
| 3,102,859
|
Exchange-traded funds 8.5%
|
|
|
|
| $117,839,346
|
(Cost $114,390,787)
|
|
|
|
|
|
iShares Russell Mid-Cap Growth ETF (B)
|
|
|
| 737,415
| 67,141,636
|
Vanguard Mid-Cap Growth ETF (B)
|
|
|
| 260,135
| 50,697,710
|
|
|
| Yield (%)
|
| Shares
| Value
|
Short-term investments 6.2%
|
|
|
|
| $86,044,222
|
(Cost $86,042,876)
|
|
|
|
|
|
Short-term funds 6.2%
|
|
|
|
| 86,044,222
|
John Hancock Collateral Trust (E)
| 4.9438(F)
|
| 4,469,708
| 44,683,221
|
State Street Institutional U.S. Government Money Market Fund, Premier Class
| 4.6799(F)
|
| 41,361,001
| 41,361,001
|
|
Total investments (Cost $1,368,435,312) 104.8%
|
|
| $1,457,044,306
|
Other assets and liabilities, net (4.8%)
|
|
|
| (66,437,784)
|
Total net assets 100.0%
|
|
|
|
| $1,390,606,522
|
The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund.
|
12
| JOHN HANCOCK MID CAP GROWTH FUND | ANNUAL REPORT
| SEE NOTES TO FINANCIAL STATEMENTS
|
Security Abbreviations and Legend
|
(A)
| Non-income producing security.
|
(B)
| All or a portion of this security is on loan as of 3-31-23.
|
(C)
| Restricted security as to resale. For more information on this security refer to the Notes to financial statements.
|
(D)
| 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.
|
(E)
| Investment is an affiliate of the fund, the advisor and/or subadvisor. This security represents the investment of cash collateral received for securities lending.
|
(F)
| The rate shown is the annualized seven-day yield as of 3-31-23.
|
At 3-31-23, the aggregate cost of
investments for federal income tax purposes was $1,375,110,676. Net unrealized appreciation aggregated to $81,933,630, of which $189,844,281 related to gross unrealized appreciation and $107,910,651 related to gross
unrealized depreciation.
SEE NOTES TO FINANCIAL STATEMENTS
| ANNUAL REPORT | JOHN HANCOCK MID CAP GROWTH FUND
| 13
|
STATEMENT OF ASSETS AND
LIABILITIES 3-31-23
Assets
|
|
Unaffiliated investments, at value (Cost $1,323,753,437) including $43,797,932 of securities loaned
| $1,412,361,085
|
Affiliated investments, at value (Cost $44,681,875)
| 44,683,221
|
Total investments, at value (Cost $1,368,435,312)
| 1,457,044,306
|
Cash
| 550,080
|
Dividends and interest receivable
| 310,956
|
Receivable for fund shares sold
| 241,939
|
Receivable for securities lending income
| 31,997
|
Other assets
| 190,341
|
Total assets
| 1,458,369,619
|
Liabilities
|
|
Payable for investments purchased
| 22,376,057
|
Payable for fund shares repurchased
| 510,049
|
Payable upon return of securities loaned
| 44,700,725
|
Payable to affiliates
|
|
Accounting and legal services fees
| 57,359
|
Transfer agent fees
| 4,090
|
Trustees’ fees
| 95
|
Other liabilities and accrued expenses
| 114,722
|
Total liabilities
| 67,763,097
|
Net assets
| $1,390,606,522
|
Net assets consist of
|
|
Paid-in capital
| $1,617,853,262
|
Total distributable earnings (loss)
| (227,246,740)
|
Net assets
| $1,390,606,522
|
|
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 ($18,650,636 ÷ 1,401,734 shares)1
| $13.31
|
Class C ($116,349 ÷ 8,841 shares)1
| $13.16
|
Class I ($4,203,410 ÷ 314,744 shares)
| $13.36
|
Class R6 ($298,511,177 ÷ 22,313,095 shares)
| $13.38
|
Class NAV ($1,069,124,950 ÷ 79,914,050 shares)
| $13.38
|
Maximum offering price per share
|
|
Class A (net asset value per share ÷ 95%)2
| $14.01
|
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 $50,000. On sales of $50,000 or more and on group sales the offering price is reduced.
|
14
| JOHN HANCOCK Mid Cap Growth Fund | ANNUAL REPORT
| SEE NOTES TO FINANCIAL STATEMENTS
|
STATEMENT OF OPERATIONS For the year ended 3-31-23
Investment income
|
|
Dividends
| $7,158,503
|
Interest
| 657,228
|
Securities lending
| 142,886
|
Total investment income
| 7,958,617
|
Expenses
|
|
Investment management fees
| 11,541,564
|
Distribution and service fees
| 23,748
|
Accounting and legal services fees
| 268,537
|
Transfer agent fees
| 43,455
|
Trustees’ fees
| 30,292
|
Custodian fees
| 153,902
|
State registration fees
| 137,295
|
Printing and postage
| 19,342
|
Professional fees
| 134,663
|
Other
| 93,301
|
Total expenses
| 12,446,099
|
Less expense reductions
| (1,071,073)
|
Net expenses
| 11,375,026
|
Net investment loss
| (3,416,409)
|
Realized and unrealized gain (loss)
|
|
Net realized gain (loss) on
|
|
Unaffiliated investments
| (303,303,532)
|
Affiliated investments
| (13,763)
|
| (303,317,295)
|
Change in net unrealized appreciation (depreciation) of
|
|
Unaffiliated investments and translation of assets and liabilities in foreign currencies
| 29,546,917
|
Affiliated investments
| (870)
|
| 29,546,047
|
Net realized and unrealized loss
| (273,771,248)
|
Decrease in net assets from operations
| $(277,187,657)
|
SEE NOTES TO FINANCIAL STATEMENTS
| ANNUAL REPORT | JOHN HANCOCK Mid Cap Growth Fund
| 15
|
STATEMENTS OF CHANGES IN NET
ASSETS
| Year ended
3-31-23
| Period ended
3-31-221
| Year ended
8-31-21
|
Increase (decrease) in net assets
|
|
|
|
From operations
|
|
|
|
Net investment loss
| $(3,416,409)
| $(7,164,970)
| $(13,702,968)
|
Net realized gain (loss)
| (303,317,295)
| 132,478,948
| 636,192,881
|
Change in net unrealized appreciation (depreciation)
| 29,546,047
| (548,264,558)
| (40,616,405)
|
Increase (decrease) in net assets resulting from operations
| (277,187,657)
| (422,950,580)
| 581,873,508
|
Distributions to shareholders
|
|
|
|
From earnings
|
|
|
|
Class A2
| (838,676)
| —
| —
|
Class C2
| (7,763)
| —
| —
|
Class I2
| (240,504)
| —
| —
|
Class R63
| (20,042,927)
| (141,941,775)
| —
|
Class 1
| —
| —
| (149,685,105)
|
Class NAV
| (71,562,747)
| (380,500,343)
| (307,295,923)
|
Total distributions
| (92,692,617)
| (522,442,118)
| (456,981,028)
|
From fund share transactions
| 63,893,824
| 496,465,026
| 179,671,998
|
Total increase (decrease)
| (305,986,450)
| (448,927,672)
| 304,564,478
|
Net assets
|
|
|
|
Beginning of year
| 1,696,592,972
| 2,145,520,644
| 1,840,956,166
|
End of year
| $1,390,606,522
| $1,696,592,972
| $2,145,520,644
|
1
| For the seven-month period ended 3-31-22. John Hancock Funds II Mid Cap Stock Fund’s (the “Accounting Survivor”) fiscal year end was August 31 and the
fund’s fiscal year end is March 31.
|
2
| The inception date for Class A, Class C and Class I shares is 11-5-21.
|
3
| The inception date for Class R6 shares is 10-18-21.
|
16
| JOHN HANCOCK Mid Cap Growth Fund | ANNUAL REPORT
| SEE NOTES TO FINANCIAL STATEMENTS
|
CLASS A SHARES Period ended
| 3-31-23
| 3-31-221
|
Per share operating performance
|
|
|
Net asset value, beginning of period
| $17.26
| $22.29
|
Net investment loss2
| (0.07)
| (0.07)
|
Net realized and unrealized gain (loss) on investments
| (2.96)
| (4.96)
|
Total from investment operations
| (3.03)
| (5.03)
|
Less distributions
|
|
|
From net realized gain
| (0.92)
| —
|
Total distributions
| (0.92)
| —
|
Net asset value, end of period
| $13.31
| $17.26
|
Total return (%)3,4
| (17.12)
| (22.57)5
|
Ratios and supplemental data
|
|
|
Net assets, end of period (in millions)
| $19
| $5
|
Ratios (as a percentage of average net assets):
|
|
|
Expenses before reductions
| 1.26
| 1.246
|
Expenses including reductions
| 1.18
| 1.176
|
Net investment loss
| (0.53)
| (0.98)6
|
Portfolio turnover (%)
| 102
| 697
|
1
| The inception date for Class A shares is 11-5-21.
|
2
| Based on average daily shares outstanding.
|
3
| Total returns would have been lower had certain expenses not been reduced during the applicable periods.
|
4
| Does not reflect the effect of sales charges, if any.
|
5
| Not annualized.
|
6
| Annualized. Certain expenses are presented unannualized.
|
7
| Portfolio turnover is shown for the period from 9-1-21 to 3-31-22.
|
SEE NOTES TO FINANCIAL STATEMENTS
| ANNUAL REPORT | JOHN HANCOCK Mid Cap Growth Fund
| 17
|
CLASS C SHARES Period ended
| 3-31-23
| 3-31-221
|
Per share operating performance
|
|
|
Net asset value, beginning of period
| $17.21
| $22.29
|
Net investment loss2
| (0.17)
| (0.13)
|
Net realized and unrealized gain (loss) on investments
| (2.96)
| (4.95)
|
Total from investment operations
| (3.13)
| (5.08)
|
Less distributions
|
|
|
From net realized gain
| (0.92)
| —
|
Total distributions
| (0.92)
| —
|
Net asset value, end of period
| $13.16
| $17.21
|
Total return (%)3,4
| (17.76)
| (22.79)5
|
Ratios and supplemental data
|
|
|
Net assets, end of period (in millions)
| $—6
| $—6
|
Ratios (as a percentage of average net assets):
|
|
|
Expenses before reductions
| 2.01
| 1.987
|
Expenses including reductions
| 1.93
| 1.927
|
Net investment loss
| (1.28)
| (1.77)7
|
Portfolio turnover (%)
| 102
| 698
|
1
| The inception date for Class C shares is 11-5-21.
|
2
| Based on average daily shares outstanding.
|
3
| Total returns would have been lower had certain expenses not been reduced during the applicable periods.
|
4
| Does not reflect the effect of sales charges, if any.
|
5
| Not annualized.
|
6
| Less than $500,000.
|
7
| Annualized. Certain expenses are presented unannualized.
|
8
| Portfolio turnover is shown for the period from 9-1-21 to 3-31-22.
|
18
| JOHN HANCOCK Mid Cap Growth Fund | ANNUAL REPORT
| SEE NOTES TO FINANCIAL STATEMENTS
|
CLASS I SHARES Period ended
| 3-31-23
| 3-31-221
|
Per share operating performance
|
|
|
Net asset value, beginning of period
| $17.28
| $22.29
|
Net investment loss2
| (0.05)
| (0.05)
|
Net realized and unrealized gain (loss) on investments
| (2.95)
| (4.96)
|
Total from investment operations
| (3.00)
| (5.01)
|
Less distributions
|
|
|
From net realized gain
| (0.92)
| —
|
Total distributions
| (0.92)
| —
|
Net asset value, end of period
| $13.36
| $17.28
|
Total return (%)3
| (16.98)
| (22.48)4
|
Ratios and supplemental data
|
|
|
Net assets, end of period (in millions)
| $4
| $4
|
Ratios (as a percentage of average net assets):
|
|
|
Expenses before reductions
| 1.01
| 0.995
|
Expenses including reductions
| 0.93
| 0.925
|
Net investment loss
| (0.35)
| (0.80)5
|
Portfolio turnover (%)
| 102
| 696
|
1
| The inception date for Class I shares is 11-5-21.
|
2
| Based on average daily shares outstanding.
|
3
| Total returns would have been lower had certain expenses not been reduced during the applicable periods.
|
4
| Not annualized.
|
5
| Annualized. Certain expenses are presented unannualized.
|
6
| Portfolio turnover is shown for the period from 9-1-21 to 3-31-22.
|
SEE NOTES TO FINANCIAL STATEMENTS
| ANNUAL REPORT | JOHN HANCOCK Mid Cap Growth Fund
| 19
|
CLASS R6 SHARES Period ended
| 3-31-23
| 3-31-221,2
| 8-31-212
| 8-31-202
| 8-31-192
| 8-31-182
|
Per share operating performance
|
|
|
|
|
|
|
Net asset value, beginning of period
| $17.29
| $28.81
| $27.74
| $22.24
| $25.90
| $22.14
|
Net investment loss3
| (0.03)
| (0.08)
| (0.20)
| (0.11)
| (0.12)
| (0.10)
|
Net realized and unrealized gain (loss) on investments
| (2.96)
| (4.17)
| 8.88
| 8.38
| 0.28
| 6.01
|
Total from investment operations
| (2.99)
| (4.25)
| 8.68
| 8.27
| 0.16
| 5.91
|
Less distributions
|
|
|
|
|
|
|
From net realized gain
| (0.92)
| (7.27)
| (7.61)
| (2.77)
| (3.82)
| (2.15)
|
Total distributions
| (0.92)
| (7.27)
| (7.61)
| (2.77)
| (3.82)
| (2.15)
|
Net asset value, end of period
| $13.38
| $17.29
| $28.81
| $27.74
| $22.24
| $25.90
|
Total return (%)4
| (16.81)
| (20.41)5
| 33.87
| 41.40
| 5.71
| 28.68
|
Ratios and supplemental data
|
|
|
|
|
|
|
Net assets, end of period (in millions)
| $299
| $399
| $631
| $547
| $438
| $447
|
Ratios (as a percentage of average net assets):
|
|
|
|
|
|
|
Expenses before reductions
| 0.90
| 0.886
| 0.92
| 0.92
| 0.92
| 0.92
|
Expenses including reductions
| 0.83
| 0.826
| 0.91
| 0.92
| 0.92
| 0.91
|
Net investment loss
| (0.26)
| (0.65)6
| (0.72)
| (0.51)
| (0.54)
| (0.44)
|
Portfolio turnover (%)
| 102
| 69
| 91
| 86
| 617
| 67
|
1
| For the seven-month period ended 3-31-22. The inception date for Class R6 shares is 10-18-21. The Accounting Survivor’s fiscal year end was August 31 and the fund’s
fiscal year end is March 31.
|
2
| Financial highlights presented prior to close of business on October 15, 2021 represents the historical operating results of the Accounting Survivor. At the close of business on
October 15, 2021, the Accounting Survivor was reorganized into the fund. On the date of reorganization, the accounting and performance history of the Accounting Survivor was retained as that of the fund. Refer to Note
11 for further details.
|
3
| Based on average daily shares outstanding.
|
4
| Total returns would have been lower had certain expenses not been reduced during the applicable periods.
|
5
| Not annualized.
|
6
| Annualized. Certain expenses are presented unannualized.
|
7
| Excludes merger activity.
|
20
| JOHN HANCOCK Mid Cap Growth Fund | ANNUAL REPORT
| SEE NOTES TO FINANCIAL STATEMENTS
|
CLASS NAV SHARES Period ended
| 3-31-23
| 3-31-221,2
| 8-31-212
| 8-31-202
| 8-31-192
| 8-31-182
|
Per share operating performance
|
|
|
|
|
|
|
Net asset value, beginning of period
| $17.29
| $28.81
| $27.61
| $22.09
| $25.66
| $21.90
|
Net investment loss3
| (0.03)
| (0.08)
| (0.19)
| (0.10)
| (0.11)
| (0.09)
|
Net realized and unrealized gain (loss) on investments
| (2.96)
| (4.17)
| 8.86
| 8.34
| 0.29
| 5.95
|
Total from investment operations
| (2.99)
| (4.25)
| 8.67
| 8.24
| 0.18
| 5.86
|
Less distributions
|
|
|
|
|
|
|
From net realized gain
| (0.92)
| (7.27)
| (7.47)
| (2.72)
| (3.75)
| (2.10)
|
Total distributions
| (0.92)
| (7.27)
| (7.47)
| (2.72)
| (3.75)
| (2.10)
|
Net asset value, end of period
| $13.38
| $17.29
| $28.81
| $27.61
| $22.09
| $25.66
|
Total return (%)4
| (16.86)
| (20.37)5
| 33.91
| 41.47
| 5.74
| 28.75
|
Ratios and supplemental data
|
|
|
|
|
|
|
Net assets, end of period (in millions)
| $1,069
| $1,289
| $1,515
| $1,294
| $1,153
| $1,258
|
Ratios (as a percentage of average net assets):
|
|
|
|
|
|
|
Expenses before reductions
| 0.89
| 0.876
| 0.87
| 0.87
| 0.87
| 0.87
|
Expenses including reductions
| 0.82
| 0.816
| 0.86
| 0.87
| 0.87
| 0.86
|
Net investment loss
| (0.24)
| (0.65)6
| (0.67)
| (0.46)
| (0.49)
| (0.39)
|
Portfolio turnover (%)
| 102
| 69
| 91
| 86
| 617
| 67
|
1
| For the seven-month period ended 3-31-22. The Accounting Survivor’s fiscal year end was August 31 and the fund’s fiscal year end is March 31.
|
2
| Financial highlights presented prior to close of business on October 15, 2021 represents the historical operating results of the Accounting Survivor. At the close of business on
October 15, 2021, the Accounting Survivor was reorganized into the fund . On the date of reorganization, the accounting and performance history of the Accounting Survivor was retained as that of the fund. As a result,
the per share operating performance has been adjusted for the prior periods presented to reflect the transaction. The conversion ratio used was 0.98073, as the Accounting Survivor’s net asset value was $28.7711
while the fund’s net asset value was $28.2165 on the date of reorganization. Refer to Note 11 for further details.
|
3
| Based on average daily shares outstanding.
|
4
| Total returns would have been lower had certain expenses not been reduced during the applicable periods.
|
5
| Not annualized.
|
6
| Annualized. Certain expenses are presented unannualized.
|
7
| Excludes merger activity.
|
SEE NOTES TO FINANCIAL STATEMENTS
| ANNUAL REPORT | JOHN HANCOCK Mid Cap Growth Fund
| 21
|
Notes to financial statements
Note 1—Organization
John Hancock Mid Cap Growth Fund
(the fund) is a series of John Hancock Investment Trust (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 long-term growth and capital appreciation.
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 R6 shares are only available to certain retirement plans, institutions and other investors. Class NAV shares are offered to John Hancock affiliated funds of funds, retirement plans for employees of
John Hancock and/or Manulife Financial Corporation, and certain 529 plans. 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 Advisor’s Valuation Policies and Procedures.
In order to value the securities,
the fund uses the following valuation techniques: 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.
In certain instances, the Pricing
Committee of the Advisor 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 Pricing Committee following procedures established by the Advisor and adopted 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
22
| JOHN HANCOCK Mid Cap Growth Fund | ANNUAL REPORT
|
|
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 Advisor’s
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 March 31, 2023, by major security category or type:
| Total
value at
3-31-23
| Level 1
quoted
price
| Level 2
significant
observable
inputs
| Level 3
significant
unobservable
inputs
|
Investments in securities:
|
|
|
|
|
Assets
|
|
|
|
|
Common stocks
| $1,246,684,668
| $1,246,684,668
| —
| —
|
Preferred securities
| 6,476,070
| —
| —
| $6,476,070
|
Exchange-traded funds
| 117,839,346
| 117,839,346
| —
| —
|
Short-term investments
| 86,044,222
| 86,044,222
| —
| —
|
Total investments in securities
| $1,457,044,306
| $1,450,568,236
| —
| $6,476,070
|
Real estate investment trusts. The fund may invest in real estate investment trusts (REITs). Distributions from REITs may be recorded as income and subsequently characterized by the REIT at the end of their fiscal year
as a reduction of cost of investments and/or as a realized gain. As a result, the fund will estimate the components of distributions from these securities. Such estimates are revised when the actual components of the
distributions are known.
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. 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.
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
may 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 is a prime money market
fund and 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
| ANNUAL REPORT | JOHN HANCOCK Mid Cap Growth Fund
| 23
|
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. During the existence of the loan, the fund will receive from the borrower amounts equivalent to any dividends, interest or other distributions
on the loaned securities, as well as interest on such amounts. 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 March 31, 2023, the fund loaned securities valued
at $43,797,932 and received $44,700,725 of cash collateral.
Overdraft. The fund may have the ability to borrow from banks for temporary or emergency purposes, including meeting redemption requests that otherwise might require the untimely sale of securities.
Pursuant to the fund’s custodian agreement, the custodian may loan money to the fund to make properly authorized payments. The fund is obligated to repay the custodian for any overdraft, including any related
costs or expenses. The custodian may have a lien, security interest or security entitlement in any fund property that is not otherwise segregated or pledged, to the extent of any overdraft, and to the maximum extent
permitted by law.
Line of credit. The fund and other affiliated funds have entered into a syndicated line of credit agreement with Citibank, N.A. as the administrative agent that enables them to participate in a $1 billion
unsecured committed line of credit. Excluding commitments designated for a certain fund and subject to the needs of all other affiliated funds, the fund can borrow up to an aggregate commitment amount of $750 million,
subject to asset coverage and other limitations as specified in the agreement. A commitment fee payable at the end of each calendar quarter, based on the average daily unused portion of the line of credit, is charged
to each participating fund based on a combination of fixed and asset-based allocations and is reflected in Other expenses on the Statement of operations. For the year ended March 31, 2023, the fund had no borrowings
under the line of credit. Commitment fees for the year ended March 31, 2023 were $5,324.
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 March 31, 2023, the fund has a short-term capital loss carryforward of $198,009,209 and a long-term capital loss carryforward of $111,171,173 available to offset future net realized capital gains. These
carryforwards do not expire.
24
| JOHN HANCOCK Mid Cap Growth Fund | ANNUAL REPORT
|
|
As of March 31, 2023, 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 and pays dividends annually. Capital gain
distributions, if any, are typically distributed annually.
The tax character of distributions
for the years ended March 31, 2023 and 2022 was as follows:
| March 31, 2023
| March 31, 2022
|
Ordinary income
| —
| $263,596,968
|
Long-term capital gains
| $92,692,617
| 258,845,150
|
Total
| $92,692,617
| $522,442,118
|
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 March 31,
2023, there were no distributable earnings on a tax basis.
Such distributions and distributable
earnings, on a tax basis, are determined in conformity with income tax regulations, which may differ from US GAAP. Distributions in excess of tax basis earnings and profits, if any, are reported in the fund’s
financial statements as a return of capital.
Capital accounts within the
financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences, if any, will reverse in a subsequent
period. Book-tax differences are primarily attributable to net operating losses and wash sale loss deferrals.
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 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 4—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 John Hancock Life Insurance Company (U.S.A.), which in turn is a subsidiary 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) 0.875% of
the first $200 million of the fund’s aggregate net assets; (b) 0.850% of the next $300 million of the fund’s aggregate net assets; (c) 0.825% of the next $2.70 billion of the fund’s aggregate net
assets; (d) 0.800% of the next $500 million of the fund’s aggregate net assets; (e) 0.775% of the next $500 million of the fund’s aggregate net assets and (f) 0.755% of the fund’s aggregate net
assets in excess of $4.20 billion. Aggregate net assets include net assets of the fund and Mid Cap Growth Trust, a series of John Hancock Variable Insurance Trust. The Advisor has a subadvisory agreement with
Wellington Management Company, LLP. The fund is not responsible for payment of the subadvisory fees.
The Advisor has contractually agreed
to reduce its management fee by an annual rate of 0.07% of the fund’s average daily net assets. This agreement expires on July 31, 2023, unless renewed by mutual agreement of the
| ANNUAL REPORT | JOHN HANCOCK Mid Cap Growth Fund
| 25
|
fund and the Advisor based upon a determination
that this is appropriate under the circumstances at that time.
The Advisor has contractually agreed
to waive 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 March 31, 2023, this waiver amounted to 0.01% of the fund’s average daily net assets. This arrangement expires on July 31, 2024, 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 March 31, 2023,
the expense reductions described above amounted to the following:
Class
| Expense reduction
|
Class A
| $7,123
|
Class C
| 65
|
Class I
| 2,762
|
Class
| Expense reduction
|
Class R6
| $234,704
|
Class NAV
| 826,419
|
Total
| $1,071,073
|
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 March 31, 2023, were equivalent to a net annual effective rate of 0.76% of the fund’s average daily
net assets.
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 March 31, 2023, 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. 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
| Rule 12b-1 Fee
|
Class A
| 0.25%
|
Class C
| 1.00%
|
Sales charges. Class A shares are assessed up-front sales charges, which resulted in payments to the Distributor amounting to $506 for the year ended March 31, 2023. Of this amount, $85 was retained and
used for printing prospectuses, advertising, sales literature and other purposes and $421 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
March 31, 2023, there were no CDSCs received by the Distributor for Class A or Class C shares.
26
| JOHN HANCOCK Mid Cap Growth Fund | ANNUAL REPORT
|
|
Transfer agent fees. The John Hancock group of funds has a complex-wide transfer agent agreement with John Hancock Signature Services, Inc. (Signature Services), an affiliate of the Advisor. The transfer agent
fees paid to Signature Services are determined based on the cost to Signature Services (Signature Services Cost) of providing recordkeeping services. It also includes out-of-pocket expenses, including payments made to
third-parties for recordkeeping services provided to their clients who invest in one or more John Hancock funds. In addition, Signature Services Cost may be reduced by certain fees that Signature Services receives in
connection with retirement and small accounts. Signature Services Cost is calculated monthly and allocated, as applicable, to five categories of share classes: Retail Share and Institutional Share Classes of
Non-Municipal Bond Funds, Class R6 Shares, Retirement Share Classes and Municipal Bond Share Classes. Within each of these categories, the applicable costs are allocated to the affected John Hancock affiliated funds
and/or classes, based on the relative average daily net assets.
Class level expenses. Class level expenses for the year ended March 31, 2023 were as follows:
Class
| Distribution and service fees
| Transfer agent fees
|
Class A
| $22,907
| $10,461
|
Class C
| 841
| 97
|
Class I
| —
| 4,100
|
Class R6
| —
| 28,797
|
Total
| $23,748
| $43,455
|
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 5—Fund share transactions
Transactions in fund shares for the
year ended March 31, 2023, the period ended March 31, 2022 and the year ended August 31, 2021 were as follows:
| Year Ended 3-31-23
| Period Ended 3-31-221
| Year Ended 8-31-21
|
| Shares
| Amount
| Shares
| Amount
| Shares
| Amount
|
Class A shares2
|
|
|
|
|
|
|
Sold
| 1,290,175
| $17,142,322
| 328,326
| $6,027,881
| —
| —
|
Distributions reinvested
| 68,019
| 838,676
| —
| —
| —
| —
|
Repurchased
| (222,809)
| (2,940,226)
| (61,977)
| (1,138,578)
| —
| —
|
Net increase
| 1,135,385
| $15,040,772
| 266,349
| $4,889,303
| —
| —
|
Class C shares2
|
|
|
|
|
|
|
Sold
| 6,534
| $86,368
| 2,827
| $60,000
| —
| —
|
Distributions reinvested
| 466
| 5,695
| —
| —
| —
| —
|
Repurchased
| (986)
| (13,785)
| —
| —
| —
| —
|
Net increase
| 6,014
| $78,278
| 2,827
| $60,000
| —
| —
|
Class I shares2
|
|
|
|
|
|
|
Sold
| 104,458
| $1,354,698
| 252,138
| $4,902,914
| —
| —
|
Distributions reinvested
| 19,443
| 240,504
| —
| —
| —
| —
|
Repurchased
| (56,692)
| (741,105)
| (4,603)
| (74,643)
| —
| —
|
Net increase
| 67,209
| $854,097
| 247,535
| $4,828,271
| —
| —
|
| ANNUAL REPORT | JOHN HANCOCK Mid Cap Growth Fund
| 27
|
| Year Ended 3-31-23
| Period Ended 3-31-221
| Year Ended 8-31-21
|
| Shares
| Amount
| Shares
| Amount
| Shares
| Amount
|
Class R6 shares3
|
|
|
|
|
|
|
Sold
| 1,089,384
| $14,697,891
| 162,552
| $3,079,089
| —
| —
|
Issued in reorganization
| —
| —
| 19,705,096
| 556,008,842
| —
| —
|
Distributions reinvested
| 1,617,670
| 20,042,927
| 6,370,816
| 141,941,775
| —
| —
|
Repurchased
| (3,472,179)
| (46,671,150)
| (3,160,244)
| (61,627,074)
| —
| —
|
Net increase (decrease)
| (765,125)
| $(11,930,332)
| 23,078,220
| $639,402,632
| —
| —
|
Class 1 shares4
|
|
|
|
|
|
|
Sold
| —
| —
| 34,008
| $964,219
| 1,286,989
| $36,936,063
|
Distributions reinvested
| —
| —
| —
| —
| 5,689,286
| 149,685,105
|
Repurchased
| —
| —
| (763,258)
| (21,273,235)
| (4,822,216)
| (132,632,186)
|
Redeemed in reorganization
| —
| —
| (21,160,712)
| (597,080,839)
| —
| —
|
Net increase (decrease)
| —
| —
| (21,889,962)
| $(617,389,855)
| 2,154,059
| $53,988,982
|
Class NAV shares4
|
|
|
|
|
|
|
Sold
| 9,998,344
| $133,937,239
| 6,777,824
| $126,581,857
| 9,615,843
| $265,194,414
|
Issued in reorganization
| —
| —
| 53,096,244
| 1,498,190,173
| —
| —
|
Distributions reinvested
| 5,775,847
| 71,562,747
| 17,078,112
| 380,500,343
| 11,457,715
| 307,295,923
|
Repurchased
| (10,398,844)
| (145,648,977)
| (3,329,866)
| (83,479,522)
| (15,469,646)
| (446,807,321)
|
Redeemed in reorganization
| —
| —
| (50,645,278)
| (1,457,118,176)
| —
| —
|
Net increase
| 5,375,347
| $59,851,009
| 22,977,036
| $464,674,675
| 5,603,912
| $125,683,016
|
Total net increase
| 5,818,830
| $63,893,824
| 24,682,005
| $496,465,026
| 7,757,971
| $179,671,998
|
1
| For the seven-month period ended 3-31-22. John Hancock Funds II Mid Cap Stock Fund’s (the “Accounting Survivor”) fiscal year end was August 31 and the
fund’s fiscal year end is March 31.
|
2
| The inception date for Class A, Class C and Class I shares is 11-5-21.
|
3
| The inception date for Class R6 shares is 10-18-21.
|
4
| Activity presented prior to close of business on October 15, 2021 represents the historical operating results of the Accounting Survivor. At the close of business on October 15,
2021, the Accounting Survivor was reorganized into the fund. Refer to Note 11 for further details.
|
Affiliates of the fund owned 25% and
100% of shares of Class C and Class NAV, respectively, on March 31, 2023. Such concentration of shareholders’ capital could have a material effect on the fund if such shareholders redeem from the fund.
Note 6—Purchase and sale of securities
Purchases and sales of securities,
other than short-term investments, amounted to $1,396,983,254 and $1,411,596,576, respectively, for the year ended March 31, 2023.
Note 7—Investment by affiliated funds
Certain investors in the fund are
affiliated funds that are managed by the Advisor and its affiliates. The affiliated funds do not invest in the fund for the purpose of exercising management or control; however, this investment may represent a
significant portion of the fund’s net assets. At March 31, 2023, funds within the John Hancock group of funds complex held 74.8% of the fund’s net assets. The following fund(s) had an affiliate ownership
of 5% or more of the fund’s net assets:
28
| JOHN HANCOCK Mid Cap Growth Fund | ANNUAL REPORT
|
|
Portfolio
| Affiliated Concentration
|
John Hancock Funds II Multimanager Lifestyle Growth Portfolio
| 26.2%
|
John Hancock Funds II Multimanager Lifestyle Balanced Portfolio
| 16.4%
|
John Hancock Funds II Multimanager Lifestyle Aggressive Portfolio
| 11.8%
|
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*
| 4,469,708
| $15,826,228
| $400,675,204
| $(371,803,578)
| $(13,763)
| $(870)
| $142,886
| —
| $44,683,221
|
*
| Refer to the Securities lending note within Note 2 for details regarding this investment.
|
Note 9—Restricted securities
The fund may hold restricted
securities which are restricted as to resale and the fund has limited rights to registration under the Securities Act of 1933. Disposal may involve time-consuming negotiations and expenses, and prompt sale at an
acceptable price may be difficult to achieve. The following table summarizes the restricted securities held at March 31, 2023:
Issuer,
Description
| Original
acquisition date
| Acquisition
cost
| Beginning
share
amount
| Shares
purchased
| Shares
sold
| Ending
share
amount
| Value as a
percentage of
net assets
| Ending
value
|
Essence Group Holdings Corp.
| 5-1-141
| $5,083,384
| 2,958,957
| —
| —
| 2,958,957
| 0.3%
| $3,373,211
|
Lookout, Inc., Series F
| 7-31-141
| 4,276,874
| 392,767
| —
| —
| 392,767
| 0.2%
| 3,102,859
|
|
|
|
|
|
|
|
| $6,476,070
|
1
| Reflects original acquisition date of security transferred in a merger with John Hancock Funds II Mid Cap Growth Fund which took place after market close on 10-15-21.
|
Note 10—Reorganization
On October 6, 2021, the shareholders
of John Hancock Funds II (JHF II) Mid Cap Stock Fund (the Accounting Survivor) voted to approve an Agreement and Plan of Reorganization (the Agreement) which provided for an exchange of shares of Mid Cap Growth Fund
(the Acquiring Fund) with a value equal to the net assets transferred. The Agreement provided for (a) the acquisition of all the assets, subject to all of the liabilities, of the Accounting Survivor in exchange for
shares of the Acquiring Fund with a value equal to the net assets transferred; (b) the liquidation of the Accounting Survivor; and (c) the distribution to the Accounting Survivor’s shareholders of such Acquiring
Fund’s shares. The reorganization was intended to achieve potential economies of scale and allow shareholders of the Accounting Survivor to pursue an identical investment objective and have continuity of
management. The Acquiring Fund adopted the performance and accounting history of the Accounting Survivor upon completion of the reorganization.
| ANNUAL REPORT | JOHN HANCOCK Mid Cap Growth Fund
| 29
|
The reorganization qualified as a
tax-free reorganization for federal income tax purposes with no gain or loss recognized by the Accounting Survivor or their shareholders. Thus, the investments were transferred to the Acquiring Fund at the Accounting
Survivor’s identified cost. In addition, the Advisor bore the costs incurred in connection with the reorganization. The effective time of the reorganization occurred immediately after the close of regularly
scheduled trading on the New York Stock Exchange (NYSE) on October 15, 2021. Prior to the reorganization, the fund had not yet commenced operations and had no assets or liabilities. The following outlines the
reorganization:
Acquiring
Portfolio
| Acquired
Portfolio
| Net Asset
Value of the
Acquired
Portfolio
| Appreciation
of the
Acquired
Portfolio’s
Investments
| Shares
Redeemed
by the
Acquired
Portfolio
| Shares
Issued
by the
Acquiring
Portfolio
| Acquiring
Portfolio
Net Assets
Prior to
Combination
| Acquiring
Portfolio
Total Net
Assets After
Combination
|
Mid Cap Growth Fund
| Mid Cap Stock Fund
| $2,054,199,015
| $557,181,556
| 71,805,990
| 72,801,340
| —
| $2,054,199,015
|
The Reorganization was accomplished
by a tax-free exchange of shares of the fund at the following conversion ratios:
Accounting Survivor’s Share Class
| Conversion Ratio
| Fund’s Share Class
|
Class 1
| 1.00000
| Class R6
|
Class 1
| 1.00000
| Class NAV
|
Class NAV
| 0.98073
| Class NAV
|
See Note 5 for capital shares issued in connection with the above referenced reorganization.
|
30
| JOHN HANCOCK Mid Cap Growth Fund | ANNUAL REPORT
|
|
Report of Independent Registered
Public Accounting Firm
To the Board of Trustees of John
Hancock Investment Trust and Shareholders of John Hancock Mid Cap Growth Fund
Opinion on the Financial Statements
We have audited the accompanying
statement of assets and liabilities, including the fund’s investments, of John Hancock Mid Cap Growth Fund (one of the funds constituting John Hancock Investment Trust, referred to hereafter the "Fund") as of
March 31, 2023, the related statement of operations for the year ended March 31, 2023, the statements of changes in net assets for the year ended March 31, 2023, for the period September 1, 2021 through March 31, 2022
and for the year ended August 31, 2021 including the related notes, and the financial highlights for each of the periods indicated therein (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 March 31, 2023, the results of its operations for the year then ended, the changes in its net assets
for the year ended March 31, 2023, for the period September 1, 2021 through March 31, 2022 and for the year ended August 31, 2021 including the related notes, and the financial highlights for each of the periods
indicated therein 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 March 31, 2023 by correspondence with the custodian, transfer agent 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 opinion.
/s/ PricewaterhouseCoopers LLP
Boston, Massachusetts
May 4, 2023
We have served as the auditor of one
or more investment companies in the John Hancock group of funds since 1988.
| ANNUAL REPORT | JOHN HANCOCK MID CAP GROWTH FUND
| 31
|
(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 March 31, 2023.
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 as Section 163(j) Interest Dividends.
The fund paid $92,692,617 in long
term capital gain dividends.
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 2023 Form 1099-DIV in early 2024. This will reflect the tax character of all distributions paid in calendar year 2023.
Please consult a tax advisor regarding
the tax consequences of your investment in the fund.
32
| JOHN HANCOCK MID CAP GROWTH FUND | ANNUAL REPORT
|
|
STATEMENT REGARDING LIQUIDITY
RISK MANAGEMENT
Operation of the Liquidity Risk
Management Program
This section describes the 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 Mid Cap Growth 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,
Wellington Management Company LLP (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 receives monthly
reports and holds quarterly in person meetings to: (1) review the day-to-day operations of the LRMP; (2) monitor current market and liquidity conditions and assess liquidity risks; (3) review and approve
month-end liquidity classifications; (4) monitor illiquid investment levels against the 15% limit on illiquid investments and established Highly Liquid Investment Minimums (HLIMs), if any; (5) review quarterly testing
and determinations, as applicable; (6) review redemption-in-kind activities; and (7) 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 issues. The Committee also monitors global events, such as the ongoing Russian invasion of
Ukraine and related U.S. imposed sanctions on the Russian government, companies and oligarchs, and other amendments to the Office of Foreign Assets Control sanctioned company lists, that could impact the markets and
liquidity of portfolio investments and their classifications. In addition, the Committee monitors macro events and assesses their potential impact on liquidity brought on by fear of contagion (e.g. regional banking
crisis).
The Committee provided the Board at
a meeting held on March 28-30, 2023 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, 2022 through December 31, 2022, included an assessment of important aspects of the LRMP including, but not limited to: (1) Security-level liquidity
classifications; (2) Fund-level liquidity risk assessment; (3) Reasonably Anticipated Trade Size (RATS) determination; (4) HLIM determination and daily monitoring; (5) Daily compliance with the 15% limit on illiquid
investments; (6) Operation of the Fund’s Redemption-In-Kind Procedures; and (7) Review of liquidity management facilities.
The report provided an update on
Committee activities over the previous year. Additionally, the report included a discussion of notable changes and enhancements to the LRMP implemented during 2022 and key initiatives for 2023.
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 shareholders’ interests in the Fund;
|
| ANNUAL REPORT | JOHN HANCOCK MID CAP GROWTH FUND
| 33
|
•
| The Fund did not experience any breaches of the 15% limit on illiquid investments, or any applicable HLIM, 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, as a part of their annual Rule 38a-1 assessment of the Fund’s policies and procedures, reviewed the LRMP’s control environment and deemed it to
be operating effectively and in compliance with the Board approved procedures.
|
Adequacy and Effectiveness
Based on the annual review and
assessment conducted by the Committee, the Committee has determined that the LRMP and its controls have been implemented and are operating in a manner that is adequately and effectively managing the liquidity risk of
the Fund.
34
| JOHN HANCOCK MID CAP GROWTH FUND | ANNUAL REPORT
|
|
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.
Independent Trustees
|
|
|
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
|
Hassell H. McClellan, Born: 1945
| 2012
| 186
|
Trustee and Chairperson of the Board
|
|
|
Director/Trustee, Virtus Funds (2008-2020); Director, The Barnes Group (2010-2021); Associate Professor, The Wallace E. Carroll School of Management,
Boston College (retired 2013). Trustee (since 2005) and Chairperson of the Board (since 2017) of various trusts within the John Hancock Fund Complex.
|
James R. Boyle, Born: 1959
| 2015
| 183
|
Trustee
|
|
|
Board Member, United of Omaha Life Insurance Company (since 2022). Board Member, Mutual of Omaha Investor Services, Inc. (since 2022). Foresters
Financial, Chief Executive Officer (2018–2022) and board member (2017–2022). Manulife Financial and John Hancock, more than 20 years, retiring in 2012 as Chief Executive Officer, John Hancock and Senior
Executive Vice President, Manulife Financial. Trustee of various trusts within the John Hancock Fund Complex (2005–2014 and since 2015).
|
William H. Cunningham,2 Born: 1944
| 1986
| 184
|
Trustee
|
|
|
Professor, University of Texas, Austin, Texas (since 1971); former Chancellor, University of Texas System and former President of the University of
Texas, Austin, Texas; Director (since 2006), Lincoln National Corporation (insurance); Director, Southwest Airlines (since 2000). Trustee of various trusts within the John Hancock Fund Complex (since 1986).
|
Noni L. Ellison,* Born: 1971
| 2022
| 183
|
Trustee
|
|
|
Senior Vice President, General Counsel & Corporate Secretary, Tractor Supply Company (rural lifestyle retailer) (since 2021); General Counsel,
Chief Compliance Officer & Corporate Secretary, Carestream Dental, L.L.C.(2017–2021); Associate General Counsel & Assistant Corporate Secretary, W.W. Grainger, Inc. (global industrial supplier)
(2015–2017); Board Member, Goodwill of North Georgia, 2018 (FY2019)–2020 (FY2021); Board Member, Howard University School of Law Board of Visitors (since 2021); Board Member, University of Chicago Law
School Board of Visitors (since 2016); Board member, Children’s Healthcare of Atlanta Foundation Board (2021–present). Trustee of various trusts within the John Hancock Fund Complex (since 2022).
|
Grace K. Fey, Born: 1946
| 2012
| 186
|
Trustee
|
|
|
Chief Executive Officer, Grace Fey Advisors (since 2007); Director and Executive Vice President, Frontier Capital Management Company
(1988–2007); Director, Fiduciary Trust (since 2009). Trustee of various trusts within the John Hancock Fund Complex (since 2008).
|
Dean C. Garfield,* Born: 1968
| 2022
| 183
|
Trustee
|
|
|
Vice President, Netflix, Inc. (since 2019); President & Chief Executive Officer, Information Technology Industry Council (2009–2019); NYU School of Law Board of
Trustees (since 2021); Member, U.S. Department of Transportation, Advisory Committee on Automation (since 2021); President of the United States Trade Advisory Council (2010–2018); Board Member, College for Every
Student (2017–2021); Board Member, The Seed School of Washington, D.C. (2012–2017). Trustee of various trusts within the John Hancock Fund Complex (since 2022).
|
| ANNUAL REPORT | JOHN HANCOCK MID CAP GROWTH FUND
| 35
|
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
| 185
|
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); 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 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).
|
Patricia Lizarraga,2,* Born: 1966
| 2022
| 183
|
Trustee
|
|
|
Founder, Chief Executive Officer, Hypatia Capital Group (advisory and asset management company) (since 2007); Independent Director, Audit Committee
Chair, and Risk Committee Member, Credicorp, Ltd. (since 2017); Independent Director, Audit Committee Chair, Banco De Credito Del Peru (since 2017); Trustee, Museum of Art of Lima (since 2009). Trustee of various
trusts within the John Hancock Fund Complex (since 2022).
|
Steven R. Pruchansky, Born: 1944
| 1994
| 183
|
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
| 183
|
Trustee
|
|
|
Director, Audit Committee Chair, Oatly Group AB (plant-based drink company) (since 2021); 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 and Audit Committee Chair, Planet Fitness
(since 2016); Chief Financial Officer and Treasurer, Keurig Green Mountain, Inc. (2003-retired 2015). Trustee of various trusts within the John Hancock Fund Complex (since 2020).
|
Gregory A. Russo, Born: 1949
| 2009
| 183
|
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); Global Vice Chairman, Risk & Regulatory
Matters, KPMG LLP (KPMG) (2002–2006); Vice Chairman, Industrial Markets, KPMG (1998–2002). Trustee of various trusts within the John Hancock Fund Complex (since 2008).
|
36
| JOHN HANCOCK MID CAP GROWTH FUND | ANNUAL REPORT
|
|
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
| 184
|
President and Non-Independent Trustee
|
|
|
Global Head of Retail for Manulife (since 2022); 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
| 183
|
Non-Independent Trustee
|
|
|
President and CEO, John Hancock (since 2017); President and CEO, Manulife Canadian Division (2013–2017); Member, Board of Directors, Boston
Medical Center (since 2021); 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 and since 2017). Trustee of various trusts within the John Hancock Fund
Complex (since 2018).
|
Paul Lorentz,† Born: 1968
| 2022
| 183
|
Non-Independent Trustee
|
|
|
Global Head, Manulife Wealth and Asset Management (since 2017); General Manager, Manulife, Individual Wealth Management and Insurance (2013–2017); President,
Manulife Investments (2010–2016). Trustee of various trusts within the John Hancock Fund Complex (since 2022).
|
Principal officers who are not Trustees
|
|
Name, year of birth
Position(s) held with Trust
Principal occupation(s)
during past 5 years
| Current
Position(s)
with the
Trust
since
|
Charles A. Rizzo, Born: 1957
| 2007
|
Chief Financial Officer
|
|
Vice President, John Hancock Financial Services (since 2008); Senior Vice President, John Hancock Investment Management LLC and John Hancock Variable
Trust Advisers LLC (since 2008); Chief Financial Officer of various trusts within the John Hancock Fund Complex (since 2007).
|
Salvatore Schiavone, Born: 1965
| 2010
|
Treasurer
|
|
Assistant Vice President, John Hancock Financial Services (since 2007); Vice President, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers
LLC (since 2007); Treasurer of various trusts within the John Hancock Fund Complex (since 2007, including prior positions).
|
| ANNUAL REPORT | JOHN HANCOCK MID CAP GROWTH FUND
| 37
|
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 800-225-5291.
1
| Each Trustee holds office until his or her successor is duly 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.
|
*
| Elected to serve as Independent Trustee effective as of September 9, 2022.
|
^
| Ms. Harrison is retiring effective May 1, 2023.
|
†
| Elected to serve as Non-Independent Trustee effective as of September 9, 2022.
|
38
| JOHN HANCOCK MID CAP GROWTH FUND | ANNUAL REPORT
|
|
Trustees
Hassell H. McClellan, Chairperson
Steven R. Pruchansky, Vice Chairperson
Andrew G. Arnott†
James R. Boyle
William H. Cunningham*
Grace K. Fey
Noni L. Ellison^
Dean C. Garfield^
Marianne Harrison†,#
Deborah C. Jackson
Patricia Lizarraga*,^
Paul Lorentz‡
Frances G. Rathke*
Gregory A. Russo
Officers
Andrew G. Arnott
President
Charles A. Rizzo
Chief Financial Officer
Salvatore Schiavone
Treasurer
Christopher (Kit) Sechler
Secretary and Chief Legal Officer
Trevor Swanberg
Chief Compliance Officer
Investment advisor
John Hancock Investment Management
LLC
Subadvisor
Wellington Management Company LLP
Portfolio Managers
Mario E. Abularach, CFA, CMT
Stephen Mortimer
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
† Non-Independent Trustee
* Member of the Audit Committee
^ Elected to serve as Independent Trustee effective as of September 9, 2022.
# Ms. Harrison is retiring effective May 1, 2023.
‡ Elected to serve as Non-Independent Trustee effective as of September 9, 2022.
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.
| ANNUAL REPORT | JOHN HANCOCK MID CAP GROWTH FUND
| 39
|
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
|
40
| JOHN HANCOCK MID CAP GROWTH 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
Mid Cap Growth
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 Environmental
Opportunities
Global Equity
Global Shareholder Yield
Global Thematic Opportunities
International Dynamic Growth
International Growth
International Small Company
FIXED-INCOME FUNDS
Bond
California Municipal Bond
Emerging Markets Debt
Floating Rate Income
Government Income
High Yield
High Yield Municipal Bond
Income
Investment Grade Bond
Money Market
Municipal Opportunities
Opportunistic Fixed Income
Short Duration Bond
Short Duration Municipal
Opportunities
Strategic Income Opportunities
ALTERNATIVE FUNDS
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 Investment Management at 800-225-5291, or visit our website at jhinvestments.com. Please read the prospectus carefully before investing or sending money.
EXCHANGE-TRADED FUNDS
John Hancock Corporate Bond ETF
John Hancock International High
Dividend ETF
John Hancock Mortgage-Backed
Securities ETF
John Hancock Multifactor Developed
International ETF
John Hancock Multifactor Emerging
Markets ETF
John Hancock Multifactor Large Cap
ETF
John Hancock Multifactor Mid Cap
ETF
John Hancock Multifactor Small Cap
ETF
John Hancock Preferred Income
ETF
Johh Hancock U.S. High Dividend
ETF
ASSET ALLOCATION/TARGET DATE FUNDS
Balanced
Multi-Asset High Income
Lifestyle Blend Portfolios
Lifetime Blend Portfolios
Multimanager Lifestyle
Portfolios
Multimanager Lifetime Portfolios
Preservation Blend Portfolios
ENVIRONMENTAL, SOCIAL, AND
GOVERNANCE FUNDS
ESG Core Bond
ESG International Equity
ESG Large Cap Core
CLOSED-END FUNDS
Asset-Based Lending
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.
A better way to invest
We serve investors globally through
a unique multimanager approach:
We search the world to find proven portfolio teams with specialized
expertise for every strategy we offer, then we apply robust investment
oversight to ensure they continue to meet our uncompromising
standards and serve the best interests of our shareholders.
Results for investors
Our unique approach to asset
management enables us to provide
a diverse set of investments backed by some of the world’s best
managers, along with strong risk-adjusted returns across asset classes.
“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
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 Mid Cap Growth Fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by a prospectus.
5/2023
ITEM 2. CODE OF ETHICS.
As of the end of the year, March 31, 2023, 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.
Frances G. Rathke 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 March 31, 2023 and 2022. These fees were billed to the registrant and were approved by the registrant's audit committee
Fund
|
March 31, 2023
|
March 31, 2022
|
John Hancock Diversified Real Assets Fund
|
$54,428
|
$51,595
|
John Hancock Fundamental Equity Income
|
|
|
Fund1
|
23,252
|
-
|
John Hancock Mid Cap Growth Fund2
|
52,988
|
45,399
|
Total
|
$130,668
|
$96,994
|
1John Hancock Fundamental Equity Income Fund commencement operations on 6-28-2022.
2Formerly John Hancock Funds II Mid Cap Stock Fund. The fund changed year end from August 31 to March 31 in 2022.
(b) Audit-Related Services
Audit-related service 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, reviews related to supplemental regulatory filings, and software licensing fees. Amounts billed to the registrant were as follows:
Fund
|
March 31, 2023
|
March 31, 2022
|
John Hancock Diversified Real Assets Fund
|
$586
|
$781
|
John Hancock Fundamental Equity Income
|
|
|
Fund1
|
586
|
-
|
John Hancock Mid Cap Growth Fund2
|
2,386
|
4,561
|
Total
|
$3,558
|
$5,342
|
1John Hancock Fundamental Equity Income Fund commencement operations on 6-28-2022.
2Formerly John Hancock Funds II Mid Cap Stock Fund. The fund changed year end from August 31 to March 31 in 2022.
In addition, amounts billed to control affiliates for service provider internal controls reviews were $121,890 and $119,500 for the fiscal years ended March 31, 2023 and 2022, 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 March 31, 2023 and 2022. 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
|
March 31, 2023
|
March 31, 2022
|
John Hancock Diversified Real Assets Fund
|
$4,110
|
$3,914
|
John Hancock Fundamental Equity Income
|
|
|
Fund1
|
4,110
|
-
|
John Hancock Mid Cap Growth Fund2
|
4,110
|
-
|
Total
|
$12,330
|
$3,914
|
1John Hancock Fundamental Equity Income Fund commencement operations on 6-28-2022.
2Formerly John Hancock Funds II Mid Cap Stock Fund. The fund changed year end from August 31 to March 31 in 2022.
(d) All Other Fees
The nature of the services comprising all other fees is advisory services provided to the investment manager. These fees were approved by the registrant's audit committee.
Fund
|
March 31, 2023
|
March 31, 2022
|
John Hancock Diversified Real Assets Fund
|
$163
|
$199
|
John Hancock Fundamental Equity Income
|
|
|
Fund1
|
-
|
-
|
John Hancock Mid Cap Growth Fund2
|
106
|
199
|
Total
|
$269
|
$389
|
1John Hancock Fundamental Equity Income Fund commencement operations on 6-28-2022.
2Formerly John Hancock Funds II Mid Cap Stock Fund. The fund changed year end from August 31 to March 31 in 2022.
(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 instance/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 instance/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 March 31, 2023, 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 accountant(s) for services rendered to the registrant and rendered to the registrant's control affiliates of the registrant was $1,211,521 for the fiscal year ended March 31, 2023 and $968,033 for the fiscal year ended March 31, 2022.
(h)The audit committee of the registrant has considered the non-audit services provided by the registrant's principal accountant(s) to the control affiliates and has determined that the services that were not pre-approved are compatible with maintaining the principal accountant(s)' independence.
(i)Not applicable
(j)Not applicable
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:
Frances G. Rathke - Chairperson
Peter S. Burgess – retired effective December 31, 2022
William H. Cunningham
Patricia Lizarraga, effective September 20, 2022
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 and Governance Committee Charter".
ITEM 11. CONTROLS AND PROCEDURES.
(a)Based upon their evaluation of the registrant's disclosure controls and procedures as conducted within 90 days of the filing date of this Form N-CSR, the registrant's principal executive officer and principal financial officer have concluded that those disclosure controls and procedures provide reasonable assurance that the material information required to be disclosed by the registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms.
(b)There were no changes in the registrant's internal control over financial reporting that occurred during the 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.
(a)(1) Code of Ethics for Covered Officers is attached.
(a)(2) Separate certifications for the registrant's principal executive officer and principal financial officer, as required by Section 302 of the Sarbanes-Oxley Act of 2002 and Rule 30a-2(a) under the Investment Company Act of 1940, are attached.
(b)Separate certifications for the registrant's principal executive officer and principal financial officer, as required by 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and Rule 30a-2(b) under the Investment Company Act of 1940, are attached. The certifications furnished pursuant to this paragraph are not deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section. Such certifications are not deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, except to the extent that the Registrant specifically incorporates them by reference.
(c)(1) Submission of Matters to a Vote of Security Holders is attached. See attached "John Hancock Funds – Governance Committee Charter".
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 Investment Trust
By:
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/s/ Andrew Arnott
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Andrew Arnott
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President
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Date:
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May 4, 2023
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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:
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/s/ Andrew Arnott
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-------------------------------
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Andrew Arnott
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President
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Date:
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May 4, 2023
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By:
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/s/ Charles A. Rizzo
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--------------------------------
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Charles A. Rizzo
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Chief Financial Officer
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Date:
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May 4,2023
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