Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Q3
I 2012
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When you invest with John Hancock Funds, you are investing with one of the most recognized and respected names in the financial services industry. Our parent company has been helping individuals and institutions increase and protect wealth since 1862.
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We offer more than 50 funds and asset allocation portfolios, providing solutions across a range of asset classes. Our funds and portfolios are managed by some of the most respected investment managers available.
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Q3
I 2012
DOMESTIC EQUITY 4 Balanced Fund 6 Classic Value Fund 8 Disciplined Value Fund 10 Disciplined Value Mid Cap Fund 12 Fundamental All Cap Core Fund 14 Fundamental Large Cap Core Fund 16 Fundamental Large Cap Value Fund 18 Large Cap Equity Fund 20 Mid Cap Equity Fund 22 Rainier Growth Fund 24 Small Cap Equity Fund 26 Small Cap Intrinsic Value Fund 28 Small Company Fund 30 Sovereign Investors Fund 32 Strategic Growth Fund 34 U.S. Equity Fund 36 U.S. Global Leaders Growth Fund ASSET ALLOCATION TARGET RISK 38 Lifestyle Aggressive Portfolio 40 Lifestyle Balanced Portfolio 42 Lifestyle Conservative Portfolio 44 Lifestyle Growth Portfolio 46 Lifestyle Moderate Portfolio GLOBAL/INTERNATIONAL EQUITY 48 Emerging Markets Fund 50 Global Opportunities Fund 52 Global Shareholder Yield Fund 54 Greater China Opportunities Fund 56 International Allocation Portfolio 58 International Core Fund 60 International Growth Fund 62 International Value Equity Fund
ALTERNATIVE/SPECIALTY 64 Alternative Asset Allocation Fund 66 Currency Strategies Fund 68 Financial Industries Fund 70 Global Absolute Return Strategies Fund 72 Natural Resources Fund 74 Regional Bank Fund 76 Technical Opportunities Fund INCOME 78 Bond Fund 80 Core High Yield Fund 82 Floating Rate Income Fund 84 Government Income Fund 86 High Yield Fund 88 Income Fund 90 Investment Grade Bond Fund 92 Strategic Income Opportunities Fund TAX-FREE INCOME 94 California Tax-Free Income Fund 96 High Yield Municipal Bond Fund 98 Massachusetts Tax-Free Income Fund 100 New York Tax-Free Income Fund 102 Tax-Free Bond Fund OTH ER FU ND INFOR MATION 2 Market commentary 104 Symbols 106 Management company policies 108 Comparative performance results
QFG.indb 1
11/1/2012 11:13:51 AM
Market Commentary
John Hancock Asset Management
Christopher P. Conkey
Chief Investment Officer Global Equities
Barry H. Evans
Chief Investment Officer Global Fixed Income
GLOBAL EQUITY OUTLOOK Heightened worries about a renewed global recession, U.S. budgetary brinksmanship and Europes perceived paralysis on its sovereign debt crisis dominated global equity markets for much of the third quarter of 2011. Market volatility and correlations rose as investors fled risk into safe-haven assets like U.S. Treasuries andgold. The MSCI World Index1 fell 16.5% in total return, U.S. dollar terms. Year to date, the index is down3.8%. Against a backdrop of heightened macroeconomic uncertainty, market beta has overwhelmed security-level factors as a driver of equity performance. We expect this situation to continue because many of the issues concerning investors are expected to drag out well into 2012. In Europe, while some kind of a resolution of Greeces fiscal crisis appeared imminent at quarter end, the fallout could haunt markets for months to come. Furthermore, other more significant debtors, like Italy and Spain, could pose bigger threats depending on whether Greeces fallout involves some kind of contagion affecting those markets. In the U.S., we expect deep mistrust between the Republicans and Democrats in Washington to keep politics gridlocked until the presidential election in November 2012. This will prevent a resolution of U.S. fiscal issues and discourage the corporate investment that could help jump-start job creation. Global correlations rising Global equities remain reasonably valued and corporate fundamentals remain generally strong, particularly in North America and Asia. The ongoing focus on global risks has boosted correlations, though, preventing compelling individual securities from standing out from the crowd. Whats more, correlations among stocks, sectors and countries have become even more sensitive to recent spikes in volatility than during the 2008 economic crisis, suggesting deep risk aversion. In markets characterized by very high correlations, such as todays, the stock prices of quality companies move in tandem with those of weaker firms, and the value of bottom-up, focused investing becomes challenged. Highly volatile markets like those in the third quarter create material headwinds for disciplined managers. With most managers judged on relative performance, pressure increases to hug benchmarks and not slip below median peer rankings when the principles underlying their investment disciplines appear to have broken down.
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11/1/2012 11:13:51 AM
Q3
I 2011
1-year 1.14% 3.83% 1.97% 3.53% 8.94% 3.84% 5.26% 5.93%
It is particularly important in this environment for long-term, fundamental equity managers to stick to their investment disciplines. As fundamental investors, we believe finding stocks of companies with sustainable growth models, competitive advantages and healthy free cash flows will remain the key to outperformance over the long term. The volatility that has been prevalent recently can offer compelling opportunities for disciplined investors. Fundamental discipline can pay off Evidence shows that long-term managers who are not distracted from their discipline by the risk-on/risk-off trade can outperform when the stock prices of superior companies again outperform those of lower-quality firms, creating opportunities to add alpha. A study of John Hancock Asset Managements own equity strategies revealed that most managers who showed a steady, high active share2 measure over the 44 months through August 31, 2011 outperformed their benchmarks in the rally that started in March 2009. A return to more normal markets, driven by corporate fundamentals and less by global macro fears, may be some time incoming. The byzantine maneuvering around the eurozone debt crisis and the continued risks to the U.S. economy areonly two headwinds. The risk of slower growth and higher inflation in China as well as in the U.S., a key driver of global growth remains very real, even though its been shoved off the front pages of the financial press by the eurozones woes. We believe the dominance of such macro risks, accompanied by elevated correlations, isnt sustainable. However, trying to time theend of such a beta-driven market is very difficult. Further, we strongly believe the best path for fundamental investors is to maintain conviction in their defined, long-term investment processes with a clear expectation of outperformance as correlations and volatility decline and individual security quality again shines through. GLOBAL FIXED-INCOME OUTLOOK Risk aversion was the theme for much of the third quarter, and uncertainty continues as we enter the last quarter of 2011. Concerns including the continuing sovereign debt issues within the eurozone, political uncertainty within the U.S. and the possibility of a global economic slowdown have seen investors flock to safe havens. A deeper look at some of the economic data shows that we are not currently in the same situation as we were in 2008. While some financials have come under recent pressure, short-term rates have yet to show drastically increased stress in the funding markets. A much-watched indicator of funding liquidity risk, the spread of LIBOR versus overnight swaps indexed to U.S. Federal
PERFORMANCE AT A GLANCE AS OF 9/30/113 S&P 500 Index Dow Jones Industrial Average NASDAQ Composite Index Russell 2000 Index MSCI EAFE Index MSCI World Index Barclays Capital U.S. Aggregate Bond Index Barclays Capital High Yield Index Quarter 13.87% 11.49% 12.91% 21.87% 18.95% 16.52% 3.82% 7.97%
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11/1/2012 11:13:51 AM
Reserve rates, has only slowly increased and is currently one-tenth the level it reached during the worst times of 2008. Meanwhile, economic data in the U.S., while not strong, has shown signs of stability. Many of the current market troubles rest on Europes doorstep. The continued insufficient monetary action by eurozone participants has potentially increased the costs of a bailout of Greece and increased overall market volatility. The market increasingly believes that a Greek default is inevitable, and is now looking for further signs that the eurozone has sufficient plans to contain the damage. While the initial announced plan for private sector participation in a managed Greek default included cuts of 21% on bond values, the market now anticipates that this will be increased to 50%, leaving holders of Greek debt only 50 cents on the dollar for their bonds. Troubles persist for the remainder of peripheral Europe, with yields on the 10-year bonds of Italy, Spain and Portugal all reaching new highs in the third quarter. While we do not think there is much risk of dissolution of the eurozone, it will most likely take years for it to make the much needed move toward becoming a fiscal union. Given the continued troubles in the region and the expectation of more headline risk to come, the risk/return profiles of investments in the region are not yet attractive, even at these high-yield levels. In the U.S., the Fed recently enacted Operation Twist in an effort to extend the duration of its holdings and drive longer-term rates lower without changing the size of its balance sheet. This is accomplished by selling short-term holdings and reinvesting the proceeds in longer-term bonds. The goal is to support the mortgage market, and in turn the housing market, but expectations that this effort will actually make a material impact are fairly low, as most people capable of refinancing have already done so. The Fed has, however, succeeded in flattening the Treasury yield curve, with 30-year bonds yielding all-time lows of less than 2%. In addition to buying pressure from Fed activity, Treasuries rallied on safe haven flows during the past quarter. While Treasuries have been strong, the U.S. is not without its own credit concerns, as indicated by a downgrade from Standard & Poors that cost the nation its long-standing AAA rating. Given the low yields and potential credit issues, U.S. Treasuries do not currently seem attractive, particularly because we believe economic growth will be stable in the coming months and better opportunities lie elsewhere. U.S. corporate debt has come under pressure during this period of risk aversion, with spreads widening roughly 100 and 300 basis points on investment-grade and high-yield bonds, respectively. The high-yield index is now yielding roughly 9.5%, the highest level since the early summer of 2010. We think U.S. high yield continues to offer attractive opportunities for several reasons. Default rates have been low versus historical levels, currently running roughly 1.0% versus 6.0% over a normal cycle, and we believe they will stay low. Companies are in much better fiscal shape than in the past, taking advantage of the low-rate environment of the last few years to get balance sheets cleaned up, refinance existing debt and extend maturities. Since we expect economic growth in the U.S. to continue at steady, albeit low levels, the risk/return profile in the U.S. is attractive. Floating rate, high-yield loans also remain attractive, with yields approaching levels similar to those of bonds, and in some cases, with seniority in the capital structure for added protection.
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11/1/2012 11:13:51 AM
Q3
I 2011
Looking at the rest of the global spectrum, we see strong value in emerging markets, particularly in Asia. While global growth-rate expectations have slowed, emerging markets should still see strong relative growth, with South Korea, Singapore, Indonesia, Malaysia and the Philippines all expected to grow by at least 3.5% in the coming year. We anticipate growth in China of around 8.0%, with a so-called hard landing slowdown unlikely. Elsewhere, New Zealands credit rating was cut one notch by both Fitch and Standard and Poors the ratings agencies citing the nations high level ofnet external debt and lower levels of gross domestic product growth as concerns. However, we still find bonds in New Zealand attractive, with highyields and a debt-to-GDP level among the lowest of any developed nation.
The performance data contained within this material represents past performance, which does not guarantee future results. Performance, especially for short time periods, should not be the sole factor in making your investment decision. A funds 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, call your financial professional, call John Hancock Funds at 1-800-225-5291 or visit our Web site at www.jhfunds.com. Please read the prospectus carefully before investing or sending money.
1 The MSCI World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. 2 A measure of the amount by which stock holdings in a managers portfolio differ from the benchmark index. 3 Source: Lipper, Inc. All performance figures are as of 9/30/11. The S&P 500 Index is an unmanaged index commonly used to measure stock market performance. The Dow Jones Industrial Average represents share prices of selected blue chip industrial corporations, as well as public utility and transportation companies. The NASDAQ Composite Index is a market-capitalization price-only index that tracks performance of domestic common stocks traded on the regular NASDAQ market. The Russell 2000 Index is an unmanaged index of small-cap stocks. The MSCI EAFE Index measures performance of a diverse range of developed-country global stock markets. The Barclays Capital U.S. Aggregate Bond Index tracks the daily price coupon, pay downs and total return performance of fixed-rate, publicly placed, dollar-denominated and nonconvertible, investment-grade debt issues. The Barclays Capital High Yield Index is composed of U.S. currency corporate high-yield bonds issued by U.S. and non-U.S. issuers. Performance figures assume reinvestment of dividends and capital gains. This chart does not illustrate the performance of any John Hancock fund. It is not possible to invest directly in an index. Past performance is not a guarantee of future results. The opinions expressed are those of the contributors as of 9/30/11 and are subject to change. No forecasts are guaranteed. This commentary is provided for informational purposes only and is not an endorsement of any security, mutual fund, sector or index. John Hancock Asset Management and its affiliates, employees and clients may hold or trade the securities mentioned in this commentary.
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11/1/2012 11:13:52 AM
John Hancock
Balanced Fund
SUBADVISED BY JOHN HANCOCK ASSET MANAGEMENT Goal: Seeks current income, long-term growth of capital and income, and preservation of capital. Strategy: Allocates its investments among a diversified mix of debt and equity securities. The managers look for equity securities that appear to be undervalued compared to their historical valuations. Debt securities are used to enhance current income and provide added stability.
A Domestic Equity Fund ALL DATA AS OF 9/30/12 A SVBAX B SVBBX C SVBCX I SVBIX R1 JBAOX
AVERAGE ANNUAL TOTAL RETURNS Without maximum sales charge 1-year 3-year Class A 23.48% 8.18% S&P 500 Index2 30.20% 13.20% Barclays Capital U.S. Aggregate Bond Index2 5.16% 6.19% Morningstar Moderate Allocation Average With 5% maximum sales charge Class A 17.84% 17.31% 8.72% 6.36% 5-year 3.78% 1.05% 6.53% 1.92% 2.72% 10-year 9.34% 8.01% 5.32% 6.84% 8.78% Life of Fund (10/5/92) 6.96% 8.64% 6.32% 6.71% 6.68%
I 2012
Q3
MARKET CAP
VALUE
BLEND GROWTH
HHH
The Funds total annual operating expense ratio as of the current prospectus is 1.16%. Expenses for other share classes will vary, which will affect returns. Performance figures assume that all distributions are reinvested. Performance quoted without sales charges would be reduced if the sales charges were applied. For performance data current to the most recent month end, contact your financial professional or call John Hancock Funds at 1-800-225-5291. The performance data contained within this material represents past performance, which does not guarantee future results. The return and principal value of an investment will fluctuate, so that shares, when redeemed, may be worth more or less than the original cost. The Funds current performance may be higher or lower and is subject to substantial changes. GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT Class A without sales charge 10/5/92 to 9/30/12
The Fund was rated 2 stars, 3 stars and 4 stars for the 3-, 5- and 10-year periods, respectively. Load-waived rating
HHHH
The Fund was rated 3 stars, 4 stars and 5 stars for the 3-, 5- and 10-year periods, respectively. Overall rating is based on 3-, 5- and 10-year Morningstar Risk-Adjusted Returns and accounts for variation in a funds monthly performance. The Fund was rated out of 771, 670 and 381 funds for the 3-, 5- and 10-year periods, respectively. The overall rating includes effects of sales charges, loads and redemption fees, while the load-waived rating does not. Load-waived ratings for Class A shares should only be considered by investors who are not subject to a front-end sales charge. Contact your financial professional to determine whether you are eligible to purchase the Class A share without paying the front load. Other share classes may be rated differently.*
YEAR-BY-YEAR TOTAL RETURNS (%) CLASS A WITHOUT SALES CHARGE 2002 18.19 2003 18.21 2004 6.78 2005 13.36 2006 13.75 2007 23.45 2008 25.42 2009 24.30 2010 11.15 2011 3.23
1 The Morningstar Style Box reveals the Funds investment style. For equity funds, the vertical axis shows the market capitalization of the stocks owned and the horizontal axis shows investment style (value, blend or growth). 2 The S&P 500 Index is an unmanaged index of 500 widely traded common stocks. The Barclays Capital U.S. Aggregate Bond Index is an unmanaged index of dollar-denominated and nonconvertible investment-grade debt issues. It is not possible to invest directly in an index.
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11/1/2012 11:13:53 AM
Q3
I 2012
PORTFOLIO MANAGEMENT Investment Adviser John Hancock Advisers, LLC Subadviser John Hancock Asset Management Portfolio Managers Roger Hamilton Senior Portfolio Manager Joined Fund team in 2003 Began career in 1979 Timothy Malloy Senior Portfolio Manager Joined Fund team in 2006 Began career in 1993 Jeffrey Given, CFA Portfolio Manager Joined Fund team in 2006 Began career in 1993 KEY STATISTICS Class A Inception Total net assets (mil) Portfolio turnover SEC 30-day yield RISK MEASURES VS. BENCHMARK Benchmark Beta5 Standard deviation6 Fund Benchmark S&P 500 Index 0.72 11.58 15.58
4
Common Stocks Corporate Bonds U.S. Government Agency Collateralized Mortgage Obligations Foreign Stock Foreign Bond Asset Backed U.S. Government Preferred Securities Cash & Cash Equivalents Municipal Bonds WHAT YOU SHOULD KNOW BEFORE INVESTING
58.71% 10.40% 7.74% 5.49% 5.29% 3.95% 3.73% 2.38% 1.96% 0.29% 0.06%
Number of holdings
The value of a companys equity securities is subject to changes in the companys financial condition, and overall market and economic conditions. Fixed-income investments are subject to interest-rate and credit risk; their value will normally decline as interest rates rise or if the creditor is unable or unwilling to make principal or interest payments. Investments in higher-yielding, lower-rated securities involve additional risks as these securities include a higher risk of default and loss of principal. Foreign investing, especially in emerging markets, has additional risks, such as currency and market volatility and political and social instability. Mortgage and asset-backed securities may be sensitive to changes in interest rates, subject to early repayment risk and their value may fluctuate in response to the markets perception of issuer creditworthiness. The use of hedging and derivatives transactions could produce disproportionate gains or losses and may increase volatility and costs. For additional information on these and other risk considerations, please see the Funds prospectus.
A funds 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 Funds at 1-800-225-5291 or visit our Web site at www.jhfunds.com. Please read the prospectus carefully before investing or sending money.
Visit us at www.jhfunds.com
3 Listed holdings do not represent all of the holdings in the Fund. Holdings are subject to change at any time and are not recommendations to buy or sell any security. Characteristics are expressed as a percentage of net assets and exclude cash and cash equivalents. 4 The portfolio turnover is from the Funds most current annual report and is subject to change. Please see the annual report for further details regarding the turnover ratio. 5 Source: Morningstar, Inc. Beta is the market risk of the Funds Class A shares and is based on 3-year performance as of 9/30/12. By definition, the beta of the market (as represented by the stated benchmark) is 1.00. Accordingly, a fund with a 1.10 beta is theoretically expected to have 10% more volatility than the market. 6 Source: Morningstar, Inc. Based on Class A shares at NAV for the 3-year period as of 9/30/12. Standard deviation measures performance fluctuation generally, the higher the standard deviation, the greater the expected volatility of returns. These measures of past risk are not completely or necessarily representative of future risk and cannot predict a funds performance. * For each fund with at least a 3-year history, Morningstar calculates a Morningstar Rating based on a Morningstar Risk-Adjusted Return that accounts for variation in a funds monthly performance (including effects of sales charges, loads and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category, the next 22.5%, 35%, 22.5% and the bottom 10% receive 5, 4, 3, 2 or 1 star(s), respectively. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) Past performance is no guarantee of future results.
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11/1/2012 11:13:55 AM
John Hancock
A PZFVX
B JCVBX
C JCVCX
I JCVIX
R1 JCVRX
AVERAGE ANNUAL TOTAL RETURNS2 Without maximum sales charge Class A Russell 1000 Value Index3 With 5% maximum sales charge Class A 19.26% 5.08% 6.34% 4.94% 6.16% On 11/8/02, the Fund acquired all of the assets of the Pzena Focused Value Fund, the Funds predecessor, pursuant to a reorganization. Performance prior to 11/8/02 reflects the performance of the Funds predecessor. The Funds total annual operating expense ratio as of the current prospectus is 1.30%. Expenses for other share classes will vary, which will affect returns. Performance figures assume that all distributions are reinvested. Performance quoted without sales charges would be reduced if the sales charges were applied. For performance data current to the most recent month end, contact your financial professional or call John Hancock Funds at 1-800-225-5291. The performance data contained within this material represents past performance, which does not guarantee future results. The return and principal value of an investment will fluctuate, so that shares, when redeemed, may be worth more or less than the original cost. The Funds current performance may be higher or lower and is subject to substantial changes. GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT2 Class A without sales charge 6/24/96 to 9/30/12
LARGE MEDIUM SMALL
I 2012
Q3
MARKET CAP
VALUE
BLEND GROWTH
YEAR-BY-YEAR TOTAL RETURNS2 (%) CLASS A WITHOUT SALES CHARGE 2002 6.37 2003 36.25 2004 14.28 2005 8.81 2006 16.54 2007 14.20 2008 46.55 2009 35.80 2010 16.06 2011 6.83
1 The Morningstar Style Box reveals the Funds investment style. For equity funds, the vertical axis shows the market capitalization of the stocks owned and the horizontal axis shows investment style (value, blend or growth). 2 Performance results reflect any expense reductions. Without these reductions, performance would have been less favorable. Performance of the Pzena Focused Value Fund reflects stocks selected from the largest 1,000 publicly traded companies, whereas the Fund invests in stocks selected from the 500 largest such companies. 3 The Russell 1000 Value Index is an unmanaged index containing those securities in the Russell 1000 Index with a less-than-average growth orientation. It is not possible to invest directly in an index.
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11/1/2012 11:13:56 AM
Q3
I 2012
PORTFOLIO MANAGEMENT Investment Adviser John Hancock Advisers, LLC Subadviser Pzena Investment Management, LLC Portfolio Managers Richard Pzena Managing Principal Managed Fund since it began in 1996 Began career in 1980 John Goetz Managing Principal Managed Fund since it began in 1996 Began career in 1979 Antonio DeSpirito III Principal Joined Fund team in 2006 Began career in 1993 KEY STATISTICS Class A Inception Total net assets (mil) Portfolio turnover
5
Value stocks may not increase in price as anticipated or may decline further in value. Foreign investing, especially in emerging markets, has additional risks, such as currency and market volatility and political and social instability. Investments concentrated in one sector may fluctuate more widely than investments diversified across sectors. The Fund may hold a limited number of securities, which may increase overall risk. For additional information on these and other risk considerations, please see the Funds prospectus.
A funds 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 Funds at 1-800-225-5291 or visit our Web site at www.jhfunds.com. Please read the prospectus carefully before investing or sending money.
Russell 1000 Value Index Beta6 1.21 Standard deviation7 Fund Benchmark 20.04 16.10
Visit us at www.jhfunds.com
4 Listed holdings do not represent all of the holdings in the Fund. Holdings are subject to change at any time and are not recommendations to buy or sell any security. Characteristics are expressed as a percentage of net assets and exclude cash and cash equivalents. 5 The portfolio turnover is from the Funds most current annual report and is subject to change. Please see the annual report for further details regarding the turnover ratio. 6 Source: Morningstar, Inc. Beta is the market risk of the Funds Class A shares and is based on 3-year performance as of 9/30/12. By definition, the beta of the market (as represented by the stated benchmark) is 1.00. Accordingly, a fund with a 1.10 beta is theoretically expected to have 10% more volatility than the market. 7 Source: Morningstar, Inc. Based on Class A shares at NAV for the 3-year period as of 9/30/12. Standard deviation measures performance fluctuation generally, the higher the standard deviation, the greater the expected volatility of returns. These measures of past risk are not completely or necessarily representative of future risk and cannot predict a funds performance.
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11/1/2012 11:13:59 AM
John Hancock
AVERAGE ANNUAL TOTAL RETURNS2 Without maximum sales charge Class A Russell 1000 Value Index3 With 5% maximum sales charge Class A 27.21% 9.55% 0.42% 8.46% 6.48% On 12/19/08, John Hancock Disciplined Value Fund acquired the assets of the Robeco Boston Partners Large Cap Value Fund (predecessor fund). Returns of the predecessor funds Investor Class shares, first offered on 1/16/97, have been recalculated to apply the gross fees and expenses of Class A, first offered on 12/22/08. The Funds total annual operating expense ratio as of the current prospectus is 1.24%. Expenses for other share classes will vary, which will affect returns. Performance figures assume that all distributions are reinvested. Performance quoted without sales charges would be reduced if the sales charges were applied. For performance data current to the most recent month end, contact your financial professional or call John Hancock Funds at 1-800-225-5291. The performance data contained within this material represents past performance, which does not guarantee future results. The return and principal value of an investment will fluctuate, so that shares, when redeemed, may be worth more or less than the original cost. The Funds current performance may be higher or lower and is subject to substantial changes. GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT2 Class A without sales charge 1/16/97 to 9/30/12
LARGE MEDIUM SMALL
I 2012
Q3
MARKET CAP
VALUE
BLEND GROWTH
HHHH
(out of 1,063 Large Value funds)
The Fund was rated 3 stars, 4 stars and 4 stars for the 3-, 5- and 10-year periods, respectively. Load-waived rating
HHHH
The Fund was rated 3 stars, 4 stars and 5 stars for the 3-, 5- and 10-year periods, respectively. Overall rating is based on 3-, 5- and 10-year Morningstar Risk-Adjusted Returns and accounts for variation in a funds monthly performance. The Fund was rated out of 1,063, 938 and 587 funds for the 3-, 5- and 10-year periods, respectively. The overall rating includes effects of sales charges, loads and redemption fees, while the load-waived rating does not. Load-waived ratings for Class A shares should only be considered by investors who are not subject to a front-end sales charge. Contact your financial professional to determine whether you are eligible to purchase the Class A share without paying the front load. Other share classes may be rated differently.*
YEAR-BY-YEAR TOTAL RETURNS2 (%) CLASS A WITHOUT SALES CHARGE 2002 20.11 2003 25.19 2004 15.35 2005 10.13 2006 19.02 2007 3.89 2008 33.46 2009 26.05 2010 12.78 2011 0.00
10
1 The Morningstar Style Box reveals the Funds investment style. For equity funds, the vertical axis shows the market capitalization of the stocks owned and the horizontal axis shows investment style (value, blend or growth). 2 Performance results reflect any expense reductions. Without these reductions, performance would have been less favorable. 3 The Russell 1000 Value Index measures the performance of those companies within the Russell 1000 Index with lower price-to-book ratios and lower forecasted growth values. It is not possible to invest directly in an index.
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11/1/2012 11:14:00 AM
Q3
I 2012
PORTFOLIO MANAGEMENT Investment Adviser John Hancock Investment Management Services, LLC Subadviser Robeco Investment Management, Inc. Portfolio Managers Mark Donovan, CFA Chief Executive Officer Joined Fund team in 1995 Began investment career in 1981 David Pyle, CFA Portfolio Manager Joined Fund team in 2000 Began investment career in 1995 KEY STATISTICS Class A Inception Total net assets (mil) Portfolio turnover
5
Russell 1000 Value Index Beta6 1.04 Standard deviation7 Fund Benchmark 16.86 16.10
Value stocks may not increase in price as anticipated or may decline further in value. Foreign investing, especially in emerging markets, has additional risks, such as currency and market volatility and political and social instability. Large company stocks as a group could fall out of favor with the market, causing the Fund to underperform. If the Fund invests in illiquid securities, it may be difficult to sell them at a price approximating their value. For additional information on these and other risk considerations, please see the Funds prospectus.
A funds 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 Funds at 1-800-225-5291 or visit our Web site at www.jhfunds.com. Please read the prospectus carefully before investing or sending money.
Visit us at www.jhfunds.com
4 Listed holdings do not represent all of the holdings in the Fund. Holdings are subject to change at any time and are not recommendations to buy or sell any security. Characteristics are expressed as a percentage of net assets and exclude cash and cash equivalents. 5 The portfolio turnover is from the Funds most current annual report and is subject to change. Please see the annual report for further details regarding the turnover ratio. 6 Source: Morningstar, Inc. Beta is the market risk of the Funds Class A shares and is based on 3-year performance as of 9/30/12. By definition, the beta of the market (as represented by the stated benchmark) is 1.00. Accordingly, a fund with a 1.10 beta is theoretically expected to have 10% more volatility than the market. 7 Source: Morningstar, Inc. Based on Class A shares at NAV for the 3-year period as of 9/30/12. Standard deviation measures performance fluctuation generally, the higher the standard deviation, the greater the expected volatility of returns. These measures of past risk are not completely or necessarily representative of future risk and cannot predict a funds performance. * For each fund with at least a 3-year history, Morningstar calculates a Morningstar Rating based on a Morningstar Risk-Adjusted Return that accounts for variation in a funds monthly performance (including effects of sales charges, loads and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category, the next 22.5%, 35%, 22.5% and the bottom 10% receive 5, 4, 3, 2 or 1 star(s), respectively. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) Past performance is no guarantee of future results.
11
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11/1/2012 11:14:02 AM
John Hancock
A JVMAX
C JVMCX
I JVMIX
AVERAGE ANNUAL TOTAL RETURNS2 Without maximum sales charge Class A Russell Midcap Value Index3 With 5% maximum sales charge Class A 22.51% 12.19% 3.77% 11.47% 7.71% On 7/9/10, the Fund acquired all of the assets of the Robeco Boston Partners Mid Cap Value Fund, whose Investor Class was first offered on 6/2/97. The Investor Class performance has been recalculated to reflect the gross fees and expenses of the Funds Class A shares, first offered on 7/12/10. The Funds total annual operating expense ratio as of the current prospectus is 1.33%. Expenses for other share classes will vary, which will affect returns. Performance figures assume that all distributions are reinvested. Performance quoted without sales charges would be reduced if the sales charges were applied. For performance data current to the most recent month end, contact your financial professional or call John Hancock Funds at 1-800-225-5291. The performance data contained within this material represents past performance, which does not guarantee future results. The return and principal value of an investment will fluctuate, so that shares, when redeemed, may be worth more or less than the original cost. The Funds current performance may be higher or lower and is subject to substantial changes. GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT2 Class A without sales charge 6/2/97 to 9/30/12
LARGE MEDIUM SMALL
I 2012
Q3
MARKET CAP
VALUE
BLEND GROWTH
HHHH
(out of 347 Mid-Cap Value funds)
The Fund was rated 3 stars, 4 stars and 5 stars for the 3-, 5- and 10-year periods, respectively. Load-waived rating
HHHHH
(out of 347 Mid-Cap Value funds)
The Fund was rated 4 stars, 5 stars and 5 stars for the 3-, 5- and 10-year periods, respectively. Overall rating is based on 3-, 5- and 10-year Morningstar Risk-Adjusted Returns and accounts for variation in a funds monthly performance. The Fund was rated out of 347, 296 and 158 funds for the 3-, 5- and 10-year periods, respectively. The overall rating includes effects of sales charges, loads and redemption fees, while the load-waived rating does not. Load-waived ratings for Class A shares should only be considered by investors who are not subject to a front-end sales charge. Contact your financial professional to determine whether you are eligible to purchase the Class A share without paying the front load. Other share classes may be rated differently.*
YEAR-BY-YEAR TOTAL RETURNS2 (%) CLASS A WITHOUT SALES CHARGE 2002 14.89 2003 36.13 2004 20.30 2005 9.76 2006 16.56 2007 4.91 2008 32.63 2009 40.53 2010 22.84 2011 0.32
12
1 The Morningstar Style Box reveals the Funds investment style. For equity funds, the vertical axis shows the market capitalization of the stocks owned and the horizontal axis shows investment style (value, blend or growth). 2 Performance results reflect any expense reductions. Without these reductions, performance would have been less favorable. 3 The Russell Midcap Value Index is an unmanaged index containing those stocks from the Russell Midcap Index with lower price-to-book ratios and lower forecasted growth values. It is not possible to invest directly in an index.
QFG.indb 12
11/1/2012 11:14:03 AM
Q3
I 2012
PORTFOLIO MANAGEMENT Investment Adviser John Hancock Investment Management Services, LLC Subadviser Robeco Investment Management, Inc. Portfolio Managers Steven Pollack, CFA Portfolio Manager Joined Fund team in 2000 Began investment career in 1984 Joseph Feeney, Jr., CFA Chief Investment Officer Joined Fund team in 2010 Began investment career in 1985 KEY STATISTICS Class A Inception Total net assets (mil) Portfolio turnover5 Number of holdings RISK MEASURES VS. BENCHMARK Benchmark Russell Midcap Value Index Beta6 1.02 Standard deviation7 Fund Benchmark 18.17 17.62 7/12/10 $1,993.8 41% 115
The prices of medium and small company stocks can change more frequently and dramatically than those of large company stocks. Value stocks may not increase in price as anticipated or may decline further in value. Foreign investing, especially in emerging markets, has additional risks, such as currency and market volatility, and political and social instability. If the Fund invests in illiquid securities, it may be difficult to sell them at a price approximating their value. For additional information on these and other risk considerations, please see the Funds prospectus.
A funds 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 Funds at 1-800-225-5291 or visit our Web site at www.jhfunds.com. Please read the prospectus carefully before investing or sending money.
Visit us at www.jhfunds.com
4 Listed holdings do not represent all of the holdings in the Fund. Holdings are subject to change at any time and are not recommendations to buy or sell any security. Characteristics are expressed as a percentage of net assets and exclude cash and cash equivalents. 5 The portfolio turnover is from the Funds most current annual report and is subject to change. Please see the annual report for further details regarding the turnover ratio. 6 Source: Morningstar, Inc. Beta is the market risk of the Funds Class A shares and is based on 3-year performance as of 9/30/12. By definition, the beta of the market (as represented by the stated benchmark) is 1.00. Accordingly, a fund with a 1.10 beta is theoretically expected to have 10% more volatility than the market. 7 Source: Morningstar, Inc. Based on Class A shares at NAV for the 3-year period as of 9/30/12. Standard deviation measures performance fluctuation generally, the higher the standard deviation, the greater the expected volatility of returns. These measures of past risk are not completely or necessarily representative of future risk and cannot predict a funds performance. * For each fund with at least a 3-year history, Morningstar calculates a Morningstar Rating based on a Morningstar Risk-Adjusted Return that accounts for variation in a funds monthly performance (including effects of sales charges, loads and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category, the next 22.5%, 35%, 22.5% and the bottom 10% receive 5, 4, 3, 2 or 1 star(s), respectively. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) Past performance is no guarantee of future results.
13
QFG.indb 13
11/1/2012 11:14:06 AM
John Hancock
A JFCAX
I JFCIX
AVERAGE ANNUAL TOTAL RETURNS Without maximum sales charge Class A Russell 3000 Index2 With 5% maximum sales charge Class A 25.39% 2.39% The Funds net annual operating expense ratio as of the current prospectus is 1.30%. The gross annual operating expense ratio of 3.69% is reduced due to a contractual expense reimbursement, which is in effect until at least 12/31/12 and may be terminated by the Adviser any time after this date. Expenses for other share classes will vary, which will affect returns. Performance figures assume that all distributions are reinvested. Performance quoted without sales charges would be reduced if the sales charges were applied. For performance data current to the most recent month end, contact your financial professional or call John Hancock Funds at 1-800-225-5291. The performance data contained within this material represents past performance, which does not guarantee future results. The return and principal value of an investment will fluctuate, so that shares, when redeemed, may be worth more or less than the original cost. The Funds current performance may be higher or lower and is subject to substantial changes. GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT Class A without sales charge 5/31/11 to 9/30/12
LARGE MEDIUM SMALL
I 2012
3-year
5-year
10-year
Q3
MARKET CAP
VALUE
BLEND GROWTH
YEAR-BY-YEAR TOTAL RETURNS (%) CLASS A WITHOUT SALES CHARGE 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 8.303
14
1 The Morningstar Style Box reveals the Funds investment style. For equity funds, the vertical axis shows the market capitalization of the stocks owned and the horizontal axis shows investment style (value, blend or growth). 2 The Russell 3000 Index is an unmanaged index that includes 3,000 of the largest publicly traded common stocks. It is not possible to invest directly in an index. 3 Results since inception (not annualized).
QFG.indb 14
11/1/2012 11:14:07 AM
Q3
I 2012
PORTFOLIO MANAGEMENT Investment Adviser John Hancock Investment Management Services, LLC Subadviser John Hancock Asset Management Portfolio Managers Walter T. McCormick, CFA Senior Portfolio Manager Joined Fund team in 2011 Began career in 1970 Emory W. (Sandy) Sanders, Jr., CFA Senior Portfolio Manager Joined Fund team in 2011 Began career in 1997 KEY STATISTICS Class A Inception Total net assets (mil) Portfolio turnover
5
Number of holdings
Large company stocks as a group could fall out of favor with the market, causing the fund to underperform. The prices of medium and small company stocks can change more frequently and dramatically than those of large company stocks. Foreign investing, especially in emerging markets, has additional risks such as currency and market volatility and political and social instability. Hedging and other strategic transactions may increase volatility of a fund and, if the transaction is not successful, could result in a significant loss. If the fund invests in illiquid securities, it may be difficult to sell them at a price approximating their value. For additional information on these and other risk considerations, please see the Funds prospectus.
A funds 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 Funds at 1-800-225-5291 or visit our Web site at www.jhfunds.com. Please read the prospectus carefully before investing or sending money.
Visit us at www.jhfunds.com
4 Listed holdings do not represent all of the holdings in the Fund. Holdings are subject to change at any time and are not recommendations to buy or sell any security. Characteristics are expressed as a percentage of net assets and exclude cash and cash equivalents. 5 The portfolio turnover is from the Funds most current annual report and is subject to change. Please see the annual report for further details regarding the turnover ratio.
15
QFG.indb 15
11/1/2012 11:14:09 AM
John Hancock
AVERAGE ANNUAL TOTAL RETURNS Without maximum sales charge Class A S&P 500 Index2 With 5% maximum sales charge Class A 25.33% 4.02% The Funds net annual operating expense ratio as of the current prospectus is 1.30%. The gross annual operating expense ratio of 3.82% is reduced due to a contractual expense reimbursement, which is in effect until at least 12/31/12 and may be terminated by the Adviser any time after this date. Expenses for other share classes will vary, which will affect returns. Performance figures assume that all distributions are reinvested. Performance quoted without sales charges would be reduced if the sales charges were applied. For performance data current to the most recent month end, contact your financial professional or call John Hancock Funds at 1-800-225-5291. The performance data contained within this material represents past performance, which does not guarantee future results. The return and principal value of an investment will fluctuate, so that shares, when redeemed, may be worth more or less than the original cost. The Funds current performance may be higher or lower and is subject to substantial changes. GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT Class A without sales charge 5/31/11 to 9/30/12
LARGE MEDIUM SMALL
I 2012
3-year
5-year
10-year
Q3
MARKET CAP
VALUE
BLEND GROWTH
YEAR-BY-YEAR TOTAL RETURNS (%) CLASS A WITHOUT SALES CHARGE 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 5.463
16
1 The Morningstar Style Box reveals the Funds investment style. For equity funds, the vertical axis shows the market capitalization of the stocks owned and the horizontal axis shows investment style (value, blend or growth). 2 The S&P 500 Index is an unmanaged index of 500 widely traded common stocks. It is not possible to invest directly in an index. 3 Results since inception (not annualized).
QFG.indb 16
11/1/2012 11:14:09 AM
Q3
I 2012
PORTFOLIO MANAGEMENT Investment Adviser John Hancock Investment Management Services, LLC Subadviser John Hancock Asset Management Portfolio Managers Walter T. McCormick, CFA Senior Portfolio Manager Joined Fund team in 2011 Began career in 1970 Emory W. (Sandy) Sanders, Jr., CFA Senior Portfolio Manager Joined Fund team in 2011 Began career in 1997 KEY STATISTICS Class A Inception Total net assets (mil) Portfolio turnover
5
Number of holdings
Large company stocks as a group could fall out of favor with the market, causing the fund to underperform. Foreign investing, especially in emerging markets, has additional risks such as currency and market volatility and political and social instability. Hedging and other strategic transactions may increase volatility of a fund and, if the transaction is not successful, could result in a significant loss. If the fund invests in illiquid securities, it may be difficult to sell them at a price approximating their value. For additional information on these and other risk considerations, please see the Funds prospectus.
A funds 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 Funds at 1-800-225-5291 or visit our Web site at www.jhfunds.com. Please read the prospectus carefully before investing or sending money.
Visit us at www.jhfunds.com
4 Listed holdings do not represent all of the holdings in the Fund. Holdings are subject to change at any time and are not recommendations to buy or sell any security. Characteristics are expressed as a percentage of net assets and exclude cash and cash equivalents. 5 The portfolio turnover is from the Funds most current annual report and is subject to change. Please see the annual report for further details regarding the turnover ratio.
17
QFG.indb 17
11/1/2012 11:14:12 AM
John Hancock
AVERAGE ANNUAL TOTAL RETURNS Without maximum sales charge Class A Russell 1000 Value Index2 With 5% maximum sales charge Class A 28.71% 4.22% The Funds net annual operating expense ratio as of the current prospectus is 1.30%. The gross annual operating expense ratio of 3.79% is reduced due to a contractual expense reimbursement, which is in effect until at least 12/31/12 and may be terminated by the Adviser any time after this date. Expenses for other share classes will vary, which will affect returns. Performance figures assume that all distributions are reinvested. Performance quoted without sales charges would be reduced if the sales charges were applied. For performance data current to the most recent month end, contact your financial professional or call John Hancock Funds at 1-800-225-5291. The performance data contained within this material represents past performance, which does not guarantee future results. The return and principal value of an investment will fluctuate, so that shares, when redeemed, may be worth more or less than the original cost. The Funds current performance may be higher or lower and is subject to substantial changes. GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT Class A without sales charge 5/31/11 to 9/30/12
LARGE MEDIUM SMALL
I 2012
3-year
5-year
10-year
Q3
MARKET CAP
VALUE
BLEND GROWTH
YEAR-BY-YEAR TOTAL RETURNS (%) CLASS A WITHOUT SALES CHARGE 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 5.683
18
1 The Morningstar Style Box reveals the Funds investment style. For equity funds, the vertical axis shows the market capitalization of the stocks owned and the horizontal axis shows investment style (value, blend or growth). 2 The Russell 1000 Value Index is an unmanaged index containing those securities in the Russell 1000 Index with a less-than-average growth orientation. It is not possible to invest directly in an index. 3 Results since inception (not annualized).
QFG.indb 18
11/1/2012 11:14:13 AM
Q3
I 2012
PORTFOLIO MANAGEMENT Investment Adviser John Hancock Investment Management Services, LLC Subadviser John Hancock Asset Management Portfolio Managers Walter T. McCormick, CFA Senior Portfolio Manager Joined Fund team in 2011 Began career in 1970 Emory W. (Sandy) Sanders, Jr., CFA Senior Portfolio Manager Joined Fund team in 2011 Began career in 1997 KEY STATISTICS Class A Inception Total net assets (mil) Portfolio turnover
5
Number of holdings
Large company stocks as a group could fall out of favor with the market, causing the Fund to underperform. Value stocks may not increase in price as anticipated or may decline further in value. Foreign investing, especially in emerging markets, has additional risks such as currency and market volatility and political and social instability. Hedging and other strategic transactions may increase volatility of a fund and, if the transaction is not successful, could result in a significant loss. If the fund invests in illiquid securities, it may be difficult to sell them at a price approximating their value. For additional information on these and other risk considerations, please see the Funds prospectus.
A funds 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 Funds at 1-800-225-5291 or visit our Web site at www.jhfunds.com. Please read the prospectus carefully before investing or sending money.
Visit us at www.jhfunds.com
4 Listed holdings do not represent all of the holdings in the Fund. Holdings are subject to change at any time and are not recommendations to buy or sell any security. Characteristics are expressed as a percentage of net assets and exclude cash and cash equivalents. 5 The portfolio turnover is from the Funds most current annual report and is subject to change. Please see the annual report for further details regarding the turnover ratio.
19
QFG.indb 19
11/1/2012 11:14:16 AM
John Hancock
A TAGRX
B TSGWX
C JHLVX
I JLVIX
R1 JLCRX
AVERAGE ANNUAL TOTAL RETURNS Without maximum sales charge Class A S&P 500 Index3 With 5% maximum sales charge Class A 25.10% 6.85% 1.16% 9.33% 10.19% The Funds total annual operating expense ratio as of the current prospectus is 1.12%. Expenses for other share classes will vary, which will affect returns. Performance figures assume that all distributions are reinvested. Performance quoted without sales charges would be reduced if the sales charges were applied. For performance data current to the most recent month end, contact your financial professional or call John Hancock Funds at 1-800-225-5291. The performance data contained within this material represents past performance, which does not guarantee future results. The return and principal value of an investment will fluctuate, so that shares, when redeemed, may be worth more or less than the original cost. The Funds current performance may be higher or lower and is subject to substantial changes. GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT Class A without sales charge 9/30/84 to 9/30/12
LARGE MEDIUM SMALL
I 2012
Q3
MARKET CAP
VALUE
BLEND GROWTH
YEAR-BY-YEAR TOTAL RETURNS (%) CLASS A WITHOUT SALES CHARGE 2002 37.83 2003 23.29 2004 4.14 2005 16.26 2006 20.22 2007 33.77 2008 36.82 2009 33.73 2010 14.20 2011 9.03
20
1 The Morningstar Style Box reveals the Funds investment style. For equity funds, the vertical axis shows the market capitalization of the stocks owned and the horizontal axis shows investment style (value, blend or growth). 2 The Fund was incepted on 10/4/49. Performance prior to 9/30/84 is not available. 3 The S&P 500 Index is an unmanaged index of 500 widely traded common stocks. It is not possible to invest directly in an index.
QFG.indb 20
11/1/2012 11:14:17 AM
Q3
I 2012
PORTFOLIO MANAGEMENT Investment Adviser John Hancock Advisers, LLC Subadviser John Hancock Asset Management Portfolio Managers Walter T. McCormick, CFA Senior Portfolio Manager Joined Fund team in 2011 Began career in 1970 Emory W. (Sandy) Sanders, Jr., CFA Senior Portfolio Manager Joined Fund team in 2011 Began career in 1997 KEY STATISTICS Class A Inception Total net assets (mil) Portfolio turnover5 Number of holdings RISK MEASURES VS. BENCHMARK Benchmark Beta6 Standard deviation7 Fund Benchmark S&P 500 Index 1.15 18.16 15.58 10/4/49 $1,541.5 59% 48
Large company stocks as a group could fall out of favor with the market, causing the Fund to underperform. Value stocks may not increase in price as anticipated or may decline further in value. Foreign investing, especially in emerging markets, has additional risks, such as currency and market volatility and political and social instability. The use of hedging and derivatives transactions could produce disproportionate gains or losses and may increase volatility and costs. For additional information on these and other risk considerations, please see the Funds prospectus.
A funds 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 Funds at 1-800-225-5291 or visit our Web site at www.jhfunds.com. Please read the prospectus carefully before investing or sending money.
Visit us at www.jhfunds.com
4 Listed holdings do not represent all of the holdings in the Fund. Holdings are subject to change at any time and are not recommendations to buy or sell any security. Characteristics are expressed as a percentage of net assets and exclude cash and cash equivalents. 5 The portfolio turnover is from the Funds most current annual report and is subject to change. Please see the annual report for further details regarding the turnover ratio. 6 Source: Morningstar, Inc. Beta is the market risk of the Funds Class A shares and is based on 3-year performance as of 9/30/12. By definition, the beta of the market (as represented by the stated benchmark) is 1.00. Accordingly, a fund with a 1.10 beta is theoretically expected to have 10% more volatility than the market. 7 Source: Morningstar, Inc. Based on Class A shares at NAV for the 3-year period as of 9/30/12. Standard deviation measures performance fluctuation generally, the higher the standard deviation, the greater the expected volatility of returns. These measures of past risk are not completely or necessarily representative of future risk and cannot predict a funds performance.
21
QFG.indb 21
11/1/2012 11:14:20 AM
John Hancock
A JCEAX
B JCEBX
C JCECX
I JCEIX
AVERAGE ANNUAL TOTAL RETURNS2 Without maximum sales charge Class A Russell Midcap Growth Index3 With 5% maximum sales charge Class A 13.88% 5.36% 2.69% 5.84% The Funds net annual operating expense ratio as of the current prospectus is 1.45%. The gross annual operating expense ratio of 1.88% is reduced due to a contractual expense reimbursement, which is in effect until at least 2/28/13 and may be terminated by the Adviser any time after this date. Expenses for other share classes will vary, which will affect returns. Performance figures assume that all distributions are reinvested. Performance quoted without sales charges would be reduced if the sales charges were applied. For performance data current to the most recent month end, contact your financial professional or call John Hancock Funds at 1-800-225-5291. The performance data contained within this material represents past performance, which does not guarantee future results. The return and principal value of an investment will fluctuate, so that shares, when redeemed, may be worth more or less than the original cost. The Funds current performance may be higher or lower and is subject to substantial changes. GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT2 Class A without sales charge 8/4/03 to 9/30/12
LARGE MEDIUM SMALL
I 2012
10-year
Q3
MARKET CAP
VALUE
BLEND GROWTH
YEAR-BY-YEAR TOTAL RETURNS2 (%) CLASS A WITHOUT SALES CHARGE 2002 2003 16.334 2004 12.06 2005 16.85 2006 5.29 2007 15.70 2008 44.60 2009 48.07 2010 21.31 2011 12.24
22
1 The Morningstar Style Box reveals the Funds investment style. For equity funds, the vertical axis shows the market capitalization of the stocks owned and the horizontal axis shows investment style (value, blend or growth). 2 Performance results reflect any expense reductions. Without these reductions, performance would have been less favorable. 3 The Russell Midcap Growth Index measures the performance of the mid-cap growth segment of the U.S. equity universe. It includes those Russell Midcap Index companies with higher price-to-book ratios and higher forecasted growth values. It is not possible to invest directly in an index. 4 Results since inception (not annualized).
QFG.indb 22
11/1/2012 11:14:20 AM
Q3
I 2012
PORTFOLIO MANAGEMENT Investment Adviser John Hancock Advisers, LLC Subadviser John Hancock Asset Management Portfolio Managers Daniel Cole, CFA Senior Portfolio Manager Joined Fund team in 2008 Began career in 1993 Thomas L. Holman Senior Portfolio Manager Joined Fund team in 2012 Began business career in 1993 Christopher OBrien, CFA, CMT Portfolio Manager Joined Fund team in 2004 Began career in 1993 Robert Shea, CFA Portfolio Manager Joined Fund team in 2001 Began career in 1997 KEY STATISTICS Class A Inception Total net assets (mil) Portfolio turnover6 Number of holdings RISK MEASURES VS. BENCHMARK Benchmark Russell Midcap Growth Index 7 Beta 1.15 Standard deviation8 Fund Benchmark 21.66 18.63 8/4/03 $26.9 125% 68
Information Technology Consumer Discretionary Industrials Health Care Consumer Staples Materials Financials Energy WHAT YOU SHOULD KNOW BEFORE INVESTING
The prices of medium and small company stocks can change more frequently and dramatically than those of large company stocks. Foreign investing, especially in emerging markets, has additional risks, such as currency and market volatility and political and social instability. Frequently trading securities may increase transaction costs (thus lowering performance) and taxable distributions. Hedging and other strategic transactions may increase volatility of a fund and, if the transaction is not successful, could result in a significant loss. For additional information on these and other risk considerations, please see the Funds prospectus.
A funds 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 Funds at 1-800-225-5291 or visit our Web site at www.jhfunds.com. Please read the prospectus carefully before investing or sending money.
Visit us at www.jhfunds.com
5 Listed holdings do not represent all of the holdings in the Fund. Holdings are subject to change at any time and are not recommendations to buy or sell any security. Characteristics are expressed as a percentage of net assets and exclude cash and cash equivalents. 6 The portfolio turnover is from the Funds most current annual report and is subject to change. Please see the annual report for further details regarding the turnover ratio. 7 Source: Morningstar, Inc. Beta is the market risk of the Funds Class A shares and is based on 3-year performance as of 9/30/12. By definition, the beta of the market (as represented by the stated benchmark) is 1.00. Accordingly, a fund with a 1.10 beta is theoretically expected to have 10% more volatility than the market. 8 Source: Morningstar, Inc. Based on Class A shares at NAV for the 3-year period as of 9/30/12. Standard deviation measures performance fluctuation generally, the higher the standard deviation, the greater the expected volatility of returns. These measures of past risk are not completely or necessarily representative of future risk and cannot predict a funds performance.
23
QFG.indb 23
11/1/2012 11:14:24 AM
John Hancock
AVERAGE ANNUAL TOTAL RETURNS2 Without maximum sales charge Class A Russell 1000 Growth Index3 With 5% maximum sales charge Class A 19.19% 9.63% 1.76% 7.67% 1.19% On 4/25/08, John Hancock Rainier Growth Fund acquired the assets of the Rainier Large Cap Growth Equity Portfolio (predecessor fund). Performance prior to 4/28/08 reflects the performance of the Funds predecessor. The Funds total annual operating expense ratio as of the current prospectus is 1.25%. Expenses for other share classes will vary, which will affect returns. Performance figures assume that all distributions are reinvested. Performance quoted without sales charges would be reduced if the sales charges were applied. For performance data current to the most recent month end, contact your financial professional or call John Hancock Funds at 1-800-225-5291. The performance data contained within this material represents past performance, which does not guarantee future results. The return and principal value of an investment will fluctuate, so that shares, when redeemed, may be worth more or less than the original cost. The Funds current performance may be higher or lower and is subject to substantial changes. GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT2 Class A without sales charge 6/15/00 to 9/30/12
LARGE MEDIUM SMALL
I 2012
Q3
MARKET CAP
VALUE
BLEND GROWTH
YEAR-BY-YEAR TOTAL RETURNS2 (%) CLASS A WITHOUT SALES CHARGE 2002 26.16 2003 33.88 2004 11.60 2005 11.61 2006 7.24 2007 20.57 2008 43.89 2009 31.68 2010 16.59 2011 4.45
24
1 The Morningstar Style Box reveals the Funds investment style. For equity funds, the vertical axis shows the market capitalization of the stocks owned and the horizontal axis shows investment style (value, blend or growth). 2 Performance results reflect any expense reductions. Without these reductions, performance would have been less favorable. 3 The Russell 1000 Growth Index is an unmanaged index of the 1,000 largest companies in the Russell 3000 Index. It is not possible to invest directly in an index. 4 Index figure as of closest month end to inception date.
QFG.indb 24
11/1/2012 11:14:24 AM
Q3
I 2012
PORTFOLIO MANAGEMENT Investment Adviser John Hancock Investment Management Services, LLC Subadviser Rainier Investment Management, Inc. The Fund is managed by a team of portfolio managers at Rainier Investment Management, Inc. KEY STATISTICS Class A Inception Total net assets (mil) Portfolio turnover6 Number of holdings RISK MEASURES VS. BENCHMARK Benchmark Russell 1000 Growth Index Beta7 1.09 Standard deviation8 Fund Benchmark 17.78 16.07 4/28/08 $1,143.9 90% 72
Growth stocks may be subject to greater price fluctuations because their prices tend to place more emphasis on earnings expectations. Foreign investing, especially in emerging markets, has additional risks, such as currency and market volatility and political and social instability. Large company stocks as a group could fall out of favor with the market, causing the Fund to underperform. Hedging and other strategic transactions may increase volatility of a fund and, if the transaction is not successful, could result in a significant loss. For additional information on these and other risk considerations, please see the Funds prospectus.
A funds 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 Funds at 1-800-225-5291 or visit our Web site at www.jhfunds.com. Please read the prospectus carefully before investing or sending money.
Visit us at www.jhfunds.com
5 Listed holdings do not represent all of the holdings in the Fund. Holdings are subject to change at any time and are not recommendations to buy or sell any security. Characteristics are expressed as a percentage of net assets and exclude cash and cash equivalents. 6 The portfolio turnover is from the Funds most current annual report and is subject to change. Please see the annual report for further details regarding the turnover ratio. 7 Source: Morningstar, Inc. Beta is the market risk of the Funds Class A shares and is based on 3-year performance as of 9/30/12. By definition, the beta of the market (as represented by the stated benchmark) is 1.00. Accordingly, a fund with a 1.10 beta is theoretically expected to have 10% more volatility than the market. 8 Source: Morningstar, Inc. Based on Class A shares at NAV for the 3-year period as of 9/30/12. Standard deviation measures performance fluctuation generally, the higher the standard deviation, the greater the expected volatility of returns. These measures of past risk are not completely or necessarily representative of future risk and cannot predict a funds performance.
25
QFG.indb 25
11/1/2012 11:14:27 AM
John Hancock
A SPVAX
B SPVBX
C SPVCX
I SPVIX
AVERAGE ANNUAL TOTAL RETURNS2 Without maximum sales charge Class A Russell 2000 Growth Index3 With 5% maximum sales charge Class A 26.21% 12.18% 0.01% 8.70% 8.30% The Funds total annual operating expense ratio as of the current prospectus is 1.28%. Expenses for other share classes will vary, which will affect returns. Performance figures assume that all distributions are reinvested. Performance quoted without sales charges would be reduced if the sales charges were applied. For performance data current to the most recent month end, contact your financial professional or call John Hancock Funds at 1-800-225-5291. The performance data contained within this material represents past performance, which does not guarantee future results. The return and principal value of an investment will fluctuate, so that shares, when redeemed, may be worth more or less than the original cost. The Funds current performance may be higher or lower and is subject to substantial changes. GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT2 Class A without sales charge 1/3/94 to 9/30/12
LARGE MEDIUM SMALL
I 2012
Q3
MARKET CAP
VALUE
BLEND GROWTH
YEAR-BY-YEAR TOTAL RETURNS2 (%) CLASS A WITHOUT SALES CHARGE 2002 44.33 2003 48.91 2004 12.86 2005 8.23 2006 6.84 2007 1.43 2008 44.33 2009 47.98 2010 33.07 2011 7.63
26
1 The Morningstar Style Box reveals the Funds investment style. For equity funds, the vertical axis shows the market capitalization of the stocks owned and the horizontal axis shows investment style (value, blend or growth). 2 Performance results reflect any expense reductions. Without these reductions, performance would have been less favorable. 3 The Russell 2000 Growth Index measures the performance of those companies within the Russell 2000 Index with high price-to-book ratios and higher forecasted values. It is not possible to invest directly in an index.
QFG.indb 26
11/1/2012 11:14:28 AM
Q3
I 2012
PORTFOLIO MANAGEMENT Investment Adviser John Hancock Advisers, LLC Subadviser John Hancock Asset Management Portfolio Managers Daniel Cole, CFA Senior Portfolio Manager Joined Fund team in 2008 Began career in 1993 Thomas L. Holman Senior Portfolio Manager Joined Fund team in 2012 Began business career in 1993 Christopher OBrien, CFA, CMT Portfolio Manager Joined Fund team in 2004 Began career in 1993 Robert Shea, CFA Portfolio Manager Joined Fund team in 2001 Began career in 1997 KEY STATISTICS Class A Inception Total net assets (mil) Portfolio turnover5 Number of holdings RISK MEASURES VS. BENCHMARK Benchmark Russell 2000 Growth Index Beta6 1.05 Standard deviation7 Fund Benchmark 23.83 21.83 1/3/94 $416.0 110% 74
Information Technology Industrials Health Care Consumer Discretionary Consumer Staples Energy Financials Materials WHAT YOU SHOULD KNOW BEFORE INVESTING
The prices of small company stocks can change more frequently and dramatically than those of large company stocks. Foreign investing, especially in emerging markets, has additional risks, such as currency and market volatility and political and social instability. Hedging and other strategic transactions may increase volatility of a fund and, if the transaction is not successful, could result in a significant loss. For additional information on these and other risk considerations, please see the Funds prospectus.
A funds 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 Funds at 1-800-225-5291 or visit our Web site at www.jhfunds.com. Please read the prospectus carefully before investing or sending money.
Visit us at www.jhfunds.com
4 Listed holdings do not represent all of the holdings in the Fund. Holdings are subject to change at any time and are not recommendations to buy or sell any security. Characteristics are expressed as a percentage of net assets and exclude cash and cash equivalents. 5 The portfolio turnover is from the Funds most current annual report and is subject to change. Please see the annual report for further details regarding the turnover ratio. 6 Source: Morningstar, Inc. Beta is the market risk of the Funds Class A shares and is based on 3-year performance as of 9/30/12. By definition, the beta of the market (as represented by the stated benchmark) is 1.00. Accordingly, a fund with a 1.10 beta is theoretically expected to have 10% more volatility than the market. 7 Source: Morningstar, Inc. Based on Class A shares at NAV for the 3-year period as of 9/30/12. Standard deviation measures performance fluctuation generally, the higher the standard deviation, the greater the expected volatility of returns. These measures of past risk are not completely or necessarily representative of future risk and cannot predict a funds performance.
27
QFG.indb 27
11/1/2012 11:14:30 AM
John Hancock
A JHIAX
B JCIBX
C JSICX
I JHIIX
AVERAGE ANNUAL TOTAL RETURNS2 Without maximum sales charge Class A Russell 2000 Index3 With 5% maximum sales charge Class A 27.48% 8.09% 4.61% 4.25% The Funds total annual operating expense ratio as of the current prospectus is 1.45%. Expenses for other share classes will vary, which will affect returns. Performance figures assume that all distributions are reinvested. Performance quoted without sales charges would be reduced if the sales charges were applied. For performance data current to the most recent month end, contact your financial professional or call John Hancock Funds at 1-800-225-5291. The performance data contained within this material represents past performance, which does not guarantee future results. The return and principal value of an investment will fluctuate, so that shares, when redeemed, may be worth more or less than the original cost. The Funds current performance may be higher or lower and is subject to substantial changes. GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT2 Class A without sales charge 2/28/05 to 9/30/12
LARGE MEDIUM SMALL
I 2012
10-year
Q3
MARKET CAP
VALUE
BLEND GROWTH
YEAR-BY-YEAR TOTAL RETURNS2 (%) CLASS A WITHOUT SALES CHARGE 2002 2003 2004 2005 17.284 2006 28.99 2007 9.91 2008 58.50 2009 67.87 2010 35.09 2011 22.32
28
1 The Morningstar Style Box reveals the Funds investment style. For equity funds, the vertical axis shows the market capitalization of the stocks owned and the horizontal axis shows investment style (value, blend or growth). 2 Performance results reflect any expense reductions. Without these reductions, performance would have been less favorable. 3 The Russell 2000 Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index. It is not possible to invest directly in an index. 4 Results since inception (not annualized).
QFG.indb 28
11/1/2012 11:14:31 AM
Q3
I 2012
PORTFOLIO MANAGEMENT Investment Adviser John Hancock Advisers, LLC Subadviser John Hancock Asset Management Portfolio Managers Timothy Malloy Senior Portfolio Manager Managed Fund since it began in 2005 Began career in 1993 Roger Hamilton Senior Portfolio Manager Joined Fund team in 2008 Began career in 1979 KEY STATISTICS Class A Inception Total net assets (mil) Portfolio turnover6 Number of holdings RISK MEASURES VS. BENCHMARK Benchmark Beta7 Standard deviation8 Fund Benchmark Russell 2000 Index 1.15 26.11 21.28 2/28/05 $304.1 95% 56
The prices of medium and small company stocks can change more frequently and dramatically than those of large company stocks. Value stocks may not increase in price as anticipated or may decline further in value. Foreign investing, especially in emerging markets, has additional risks, such as currency and market volatility and political and social instability. The use of hedging and derivatives transactions could produce disproportionate gains or losses and may increase volatility and costs. For additional information on these and other risk considerations, please see the Funds prospectus.
A funds 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 Funds at 1-800-225-5291 or visit our Web site at www.jhfunds.com. Please read the prospectus carefully before investing or sending money.
Visit us at www.jhfunds.com
5 Listed holdings do not represent all of the holdings in the Fund. Holdings are subject to change at any time and are not recommendations to buy or sell any security. Characteristics are expressed as a percentage of net assets and exclude cash and cash equivalents. 6 The portfolio turnover is from the Funds most current annual report and is subject to change. Please see the annual report for further details regarding the turnover ratio. 7 Source: Morningstar, Inc. Beta is the market risk of the Funds Class A shares and is based on 3-year performance as of 9/30/12. By definition, the beta of the market (as represented by the stated benchmark) is 1.00. Accordingly, a fund with a 1.10 beta is theoretically expected to have 10% more volatility than the market. 8 Source: Morningstar, Inc. Based on Class A shares at NAV for the 3-year period as of 9/30/12. Standard deviation measures performance fluctuation generally, the higher the standard deviation, the greater the expected volatility of returns. These measures of past risk are not completely or necessarily representative of future risk and cannot predict a funds performance.
29
QFG.indb 29
11/1/2012 11:14:33 AM
John Hancock
AVERAGE ANNUAL TOTAL RETURNS2 Without maximum sales charge Class A Russell 2000 Index3 With 5% maximum sales charge Class A 20.59% 9.35% 0.05% 8.24% 9.54% On 12/11/09, John Hancock Small Company Fund acquired the assets of the FMA Small Company Portfolio (predecessor fund). Returns of the predecessor funds Investor Class shares, first offered on 7/31/91, have been recalculated to apply the gross fees and expenses of Class A, first offered on 12/14/09. The Funds net annual operating expense ratio as of the current prospectus is 1.50%. The gross annual operating expense ratio of 1.54% is reduced due to a contractual expense reimbursement, which is in effect until at least 6/30/13 and may be terminated by the Adviser any time after this date. Expenses for other share classes will vary, which will affect returns. Performance figures assume that all distributions are reinvested. Performance quoted without sales charges would be reduced if the sales charges were applied. For performance data current to the most recent month end, contact your financial professional or call John Hancock Funds at 1-800-225-5291. The performance data contained within this material represents past performance, which does not guarantee future results. The return and principal value of an investment will fluctuate, so that shares, when redeemed, may be worth more or less than the original cost. The Funds current performance may be higher or lower and is subject to substantial changes. GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT2 Class A without sales charge 7/31/91 to 9/30/12
LARGE MEDIUM SMALL
I 2012
Q3
MARKET CAP
VALUE
BLEND GROWTH
YEAR-BY-YEAR TOTAL RETURNS2 (%) CLASS A WITHOUT SALES CHARGE 2002 12.63 2003 33.16 2004 19.26 2005 4.58 2006 20.39 2007 0.35 2008 28.63 2009 23.88 2010 23.79 2011 5.17
30
1 The Morningstar Style Box reveals the Funds investment style. For equity funds, the vertical axis shows the market capitalization of the stocks owned and the horizontal axis shows investment style (value, blend or growth). 2 Performance results reflect any expense reductions. Without these reductions, performance would have been less favorable. 3 The Russell 2000 Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index. It is not possible to invest directly in an index.
QFG.indb 30
11/1/2012 11:14:34 AM
Q3
I 2012
PORTFOLIO MANAGEMENT Investment Adviser John Hancock Investment Management Services, LLC Subadviser Fiduciary Management Associates, LLC Portfolio Managers Kathryn Vorisek Senior Managing Director Joined Fund team in 1996 Began career in 1984 Leo Harmon, CFA Managing Director Joined Fund team in 2003 Began career in 1993 KEY STATISTICS Class A Inception Financials Information Technology Industrials Consumer Discretionary Health Care Energy Materials Utilities Consumer Staples 26.64% 18.65% 18.26% 11.35% 7.28% 5.22% 4.60% 2.94% 2.60% Total net assets (mil) Portfolio turnover
5
Number of holdings RISK MEASURES VS. BENCHMARK Benchmark Beta6 Standard deviation7 Fund Benchmark
The prices of small company stocks can change more frequently and dramatically than those of large company stocks. Value stocks may not increase in price as anticipated or may decline further in value. Frequently trading securities may increase transaction costs (thus lowering performance) and taxable distributions. For additional information on these and other risk considerations, please see the Funds prospectus.
A funds 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 Funds at 1-800-225-5291 or visit our Web site at www.jhfunds.com. Please read the prospectus carefully before investing or sending money.
Visit us at www.jhfunds.com
4 Listed holdings do not represent all of the holdings in the Fund. Holdings are subject to change at any time and are not recommendations to buy or sell any security. Characteristics are expressed as a percentage of net assets and exclude cash and cash equivalents. 5 The portfolio turnover is from the Funds most current annual report and is subject to change. Please see the annual report for further details regarding the turnover ratio. 6 Source: Morningstar, Inc. Beta is the market risk of the Funds Class A shares and is based on 3-year performance as of 9/30/12. By definition, the beta of the market (as represented by the stated benchmark) is 1.00. Accordingly, a fund with a 1.10 beta is theoretically expected to have 10% more volatility than the market. 7 Source: Morningstar, Inc. Based on Class A shares at NAV for the 3-year period as of 9/30/12. Standard deviation measures performance fluctuation generally, the higher the standard deviation, the greater the expected volatility of returns. These measures of past risk are not completely or necessarily representative of future risk and cannot predict a funds performance.
31
QFG.indb 31
11/1/2012 11:14:37 AM
John Hancock
A SOVIX
B SOVBX
C SOVCX
I SOIIX
AVERAGE ANNUAL TOTAL RETURNS Without maximum sales charge Class A S&P 500 Index3 With 5% maximum sales charge Class A 20.66% 6.93% 0.63% 5.25% 10.15% The Funds total annual operating expense ratio as of the current prospectus is 1.17%. Expenses for other share classes will vary, which will affect returns. Performance figures assume that all distributions are reinvested. Performance quoted without sales charges would be reduced if the sales charges were applied. For performance data current to the most recent month end, contact your financial professional or call John Hancock Funds at 1-800-225-5291. The performance data contained within this material represents past performance, which does not guarantee future results. The return and principal value of an investment will fluctuate, so that shares, when redeemed, may be worth more or less than the original cost. The Funds current performance may be higher or lower and is subject to substantial changes. GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT Class A without sales charge 12/31/78 to 9/30/12
LARGE MEDIUM SMALL
I 2012
Q3
MARKET CAP
VALUE
BLEND GROWTH
YEAR-BY-YEAR TOTAL RETURNS (%) CLASS A WITHOUT SALES CHARGE 2002 18.68 2003 19.55 2004 5.23 2005 2.28 2006 14.67 2007 7.83 2008 30.87 2009 23.64 2010 7.21 2011 0.45
32
1 The Morningstar Style Box reveals the Funds investment style. For equity funds, the vertical axis shows the market capitalization of the stocks owned and the horizontal axis shows investment style (value, blend or growth). 2 The Fund was incepted on 5/1/36. The Funds current strategy began on 12/31/78. 3 The S&P 500 Index is an unmanaged index of 500 widely traded common stocks. It is not possible to invest directly in an index.
QFG.indb 32
11/1/2012 11:14:38 AM
Q3
I 2012
PORTFOLIO MANAGEMENT Investment Adviser John Hancock Advisers, LLC Subadviser Sovereign Asset Management5 Portfolio Managers John Snyder III Senior Portfolio Manager Managed Fund since 1983 Began career in 1971 Barry Evans, CFA President Joined Fund team in 1996 Began career in 1986 Christopher OKeefe, CFA Portfolio Manager Joined Fund team in 2007 Began career in 1987 Christopher Perry, CFA Portfolio Manager Joined Fund team in 2007 Began career in 1990 KEY STATISTICS Class A Inception Total net assets (mil) Portfolio turnover6 Number of holdings RISK MEASURES VS. BENCHMARK Benchmark Beta7 Standard deviation8 Fund Benchmark S&P 500 Index 0.99 15.59 15.58 5/1/36 $580.7 52% 53
Large company stocks as a group could fall out of favor with the market, causing the Fund to underperform. Hedging and other strategic transactions may increase volatility of a fund and, if the transaction is not successful, could result in a significant loss. For additional information on these and other risk considerations, please see the Funds prospectus.
A funds 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 Funds at 1-800-225-5291 or visit our Web site at www.jhfunds.com. Please read the prospectus carefully before investing or sending money.
Visit us at www.jhfunds.com
4 Listed holdings do not represent all of the holdings in the Fund. Holdings are subject to change at any time and are not recommendations to buy or sell any security. Characteristics are expressed as a percentage of net assets and exclude cash and cash equivalents. 5 Sovereign Asset Management is a division of John Hancock Asset Management. 6 The portfolio turnover is from the Funds most current annual report and is subject to change. Please see the annual report for further details regarding the turnover ratio. 7 Source: Morningstar, Inc. Beta is the market risk of the Funds Class A shares and is based on 3-year performance as of 9/30/12. By definition, the beta of the market (as represented by the stated benchmark) is 1.00. Accordingly, a fund with a 1.10 beta is theoretically expected to have 10% more volatility than the market. 8 Source: Morningstar, Inc. Based on Class A shares at NAV for the 3-year period as of 9/30/12. Standard deviation measures performance fluctuation generally, the higher the standard deviation, the greater the expected volatility of returns. These measures of past risk are not completely or necessarily representative of future risk and cannot predict a funds performance.
33
QFG.indb 33
11/1/2012 11:14:41 AM
John Hancock
A JSGAX
I JSGIX
CUMULATIVE TOTAL RETURNS2 Without maximum sales charge Class A Russell 1000 Growth Index3 With 5% maximum sales charge Class A 14.96% The Funds net annual operating expense ratio as of the current prospectus is 1.30%. The gross annual operating expense ratio of 2.05% is reduced due to a contractual expense reimbursement, which is in effect until at least 6/30/13 and may be terminated by the Adviser any time after this date. Expenses for other share classes will vary, which will affect returns. Performance figures assume that all distributions are reinvested. For performance data current to the most recent month end, contact your financial professional or call John Hancock Funds at 1-800-225-5291. The performance data contained within this material represents past performance, which does not guarantee future results. The return and principal value of an investment will fluctuate, so that shares, when redeemed, may be worth more or less than the original cost. The Funds current performance may be higher or lower and is subject to substantial changes.
LARGE MEDIUM SMALL
I 2012
1-year
3-year
5-year
10-year
Q3
MARKET CAP
VALUE
BLEND GROWTH
34
1 The Morningstar Style Box reveals the Funds investment style. For equity funds, the vertical axis shows the market capitalization of the stocks owned and the horizontal axis shows investment style (value, blend or growth). 2 Performance results reflect any expense reductions. Without these reductions, performance would have been less favorable. 3 The Russell 1000 Growth Index is an unmanaged index of the 1,000 largest companies in the Russell 3000 Index. It is not possible to invest directly in an index.
QFG.indb 34
11/1/2012 11:14:41 AM
Q3
I 2012
PORTFOLIO MANAGEMENT Investment Adviser John Hancock Investment Management Services, LLC Subadviser John Hancock Asset Management Portfolio Managers W. Shannon Reid, CFA Joined the company in 2011 Began career in 1981
Jay Zelko, CFA Joined the company in 2011 Began career in 1987
David Chow, CFA Joined the company in 2011 Began career in 1992
KEY STATISTICS Class A Inception Total net assets (mil) Number of holdings 12/19/11 $966.0 64
Large company stocks as a group could fall out of favor with the market, causing the fund to underperform. Growth stocks may be subject to greater price fluctuations because their prices tend to place greater emphasis on earning expectations. Foreign investing, especially in emerging markets, has additional risks such as currency and market volatility and political and social instability. For additional information on these and other risk considerations, please see the Funds prospectus.
A funds 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 Funds at 1-800-225-5291 or visit our Web site at www.jhfunds.com. Please read the prospectus carefully before investing or sending money.
Visit us at www.jhfunds.com
4 Listed holdings do not represent all of the holdings in the Fund. Holdings are subject to change at any time and are not recommendations to buy or sell any security. Characteristics are expressed as a percentage of net assets and exclude cash and cash equivalents.
35
QFG.indb 35
11/1/2012 11:14:44 AM
John Hancock
A JHUAX
I JHUIX
AVERAGE ANNUAL TOTAL RETURNS2 Without maximum sales charge Class A Russell 3000 Index3 With 5% maximum sales charge Class A 20.19% 10.92% 1.27% 2.96% 10/29/05 is the inception date for the oldest class of shares, Class NAV shares. Class A shares were first offered on 10/31/11. The returns prior to this date are those of Class NAV shares that have been recalculated to apply the gross fees and expenses of Class A shares. The Funds total annual operating expense ratio as of the current prospectus is 1.35%. Expenses for other share classes will vary, which will affect returns. Performance figures assume that all distributions are reinvested. Performance quoted without sales charges would be reduced if the sales charges were applied. For performance data current to the most recent month end, contact your financial professional or call John Hancock Funds at 1-800-225-5291. The performance data contained within this material represents past performance, which does not guarantee future results. The return and principal value of an investment will fluctuate, so that shares, when redeemed, may be worth more or less than the original cost. The Funds current performance may be higher or lower and is subject to substantial changes. GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT2 Class A without sales charge 10/29/05 to 9/30/12
LARGE MEDIUM SMALL
I 2012
10-year
Q3
MARKET CAP
VALUE
BLEND GROWTH
IIII
(out of 1,524 Large Blend funds)
The Fund was rated 3 stars and 5 stars for the 3- and 5-year periods, respectively. Load-waived rating
IIIII
(out of 1,524 Large Blend funds)
The Fund was rated 5 stars for the 3and 5-year periods. Overall rating is based on 3- and 5-year Morningstar Risk-Adjusted Returns and accounts for variation in a funds monthly performance. The ratings shown are based on the historical adjusted returns prior to the date Class A shares were first offered (10/31/11). These hypothetical calculated returns reflect the historical performance of the Class NAV shares, adjusted to reflect the gross fees and expenses of Class A. The Fund was rated out of 1,524 and 1,328 funds for the 3- and 5-year periods, respectively. The overall rating includes effects of sales charges, loads and redemption fees, while the load-waived rating does not. Load-waived ratings for Class A shares should only be considered by investors who are not subject to a front-end sales charge. Contact your financial professional to determine whether you are eligible to purchase the Class A share without paying the front load. Other share classes may be rated differently.* 36
YEAR-BY-YEAR TOTAL RETURNS2 (%) CLASS A WITHOUT SALES CHARGE 2002 2003 2004 2005 3.544 2006 7.04 2007 1.70 2008 27.62 2009 19.12 2010 7.71 2011 7.16
1 The Morningstar Style Box reveals the Funds investment style. For equity funds, the vertical axis shows the market capitalization of the stocks owned and the horizontal axis shows investment style (value, blend or growth). 2 Performance results reflect any expense reductions. Without these reductions, performance would have been less favorable. 3 The Russell 3000 Index is an unmanaged index that includes 3,000 of the largest publicly traded common stocks. It is not possible to invest directly in an index. 4 Results since inception (not annualized).
QFG.indb 36
11/1/2012 11:14:45 AM
Q3
I 2012
PORTFOLIO MANAGEMENT Investment Adviser John Hancock Investment Management Services, LLC Subadviser Grantham, Mayo, Van Otterloo & Co. LLC The Fund is managed by a team of portfolio managers at Grantham, Mayo, Van Otterloo & Co. LLC. KEY STATISTICS Class A Inception Total net assets (mil) Portfolio turnover
6
Number of holdings RISK MEASURES VS. BENCHMARK Benchmark Beta7 Standard deviation8 Fund Benchmark
Large company stocks as a group could fall out of favor with the market, causing the Fund to underperform. Value stocks may not increase in price as anticipated or may decline further in value. Hedging and other strategic transactions may increase volatility of a fund and, if the transaction is not successful, could result in a significant loss. For additional information on these and other risk considerations, please see the Funds prospectus.
A funds 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 Funds at 1-800-225-5291 or visit our Web site at www.jhfunds.com. Please read the prospectus carefully before investing or sending money.
Visit us at www.jhfunds.com
5 Listed holdings do not represent all of the holdings in the Fund. Holdings are subject to change at any time and are not recommendations to buy or sell any security. Characteristics are expressed as a percentage of net assets and exclude cash and cash equivalents. 6 The portfolio turnover is from the Funds most current annual report and is subject to change. Please see the annual report for further details regarding the turnover ratio. 7 Source: Morningstar, Inc. Beta is the market risk of the Funds Class A shares and is based on 3-year performance as of 9/30/12. By definition, the beta of the market (as represented by the stated benchmark) is 1.00. Accordingly, a fund with a 1.10 beta is theoretically expected to have 10% more volatility than the market. 8 Source: Morningstar, Inc. Based on Class A shares at NAV for the 3-year period as of 9/30/12. Standard deviation measures performance fluctuation generally, the higher the standard deviation, the greater the expected volatility of returns. These measures of past risk are not completely or necessarily representative of future risk and cannot predict a funds performance. * For each fund with at least a 3-year history, Morningstar calculates a Morningstar Rating based on a Morningstar Risk-Adjusted Return that accounts for variation in a funds monthly performance (including effects of sales charges, loads and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category, the next 22.5%, 35%, 22.5% and the bottom 10% receive 5, 4, 3, 2 or 1 star(s), respectively. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) Past performance is no guarantee of future results.
37
QFG.indb 37
11/1/2012 11:14:49 AM
John Hancock
A USGLX
B USLBX
C USLCX
I USLIX
AVERAGE ANNUAL TOTAL RETURNS2 Without maximum sales charge Class A Russell 1000 Growth Index3 S&P 500 Index3 With 5% maximum sales charge Class A 1-year 3-year 33.06% 14.94% 29.19% 14.73% 30.20% 13.20% 26.39% 12.99% 5-year 5.16% 3.24% 1.05% 4.09% 10-year 6.59% 8.41% 8.01% 6.05% Life of Fund (9/29/95) 8.40% 6.44% 7.40% 8.08%
I 2012
Q3
MARKET CAP
VALUE
BLEND GROWTH
HHH
The Fund was rated 4 stars, 5 stars and 2 stars for the 3-, 5- and 10-year periods, respectively. Load-waived rating
On 5/17/02, the Fund acquired all of the assets of the U.S. Global Leaders Growth Fund, the Funds predecessor, pursuant to a reorganization. Performance prior to 5/17/02 reflects the performance of the Funds predecessor. The Funds total annual operating expense ratio as of the current prospectus is 1.26%. Expenses for other share classes will vary, which will affect returns. Performance figures assume that all distributions are reinvested. Performance quoted without sales charges would be reduced if the sales charges were applied. For performance data current to the most recent month end, contact your financial professional or call John Hancock Funds at 1-800-225-5291. The performance data contained within this material represents past performance, which does not guarantee future results. The return and principal value of an investment will fluctuate, so that shares, when redeemed, may be worth more or less than the original cost. The Funds current performance may be higher or lower and is subject to substantial changes. GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT2 Class A without sales charge 9/29/95 to 9/30/12
HHHH
The Fund was rated 5 stars, 5 stars and 3 stars for the 3-, 5- and 10-year periods, respectively. Overall rating is based on 3-, 5- and 10-year Morningstar Risk-Adjusted Returns and accounts for variation in a funds monthly performance. The Fund was rated out of 1,514, 1,311 and 867 funds for the 3-, 5and 10-year periods, respectively. The overall rating includes effects of sales charges, loads and redemption fees, while the load-waived rating does not. Load-waived ratings for Class A shares should only be considered by investors who are not subject to a front-end sales charge. Contact your financial professional to determine whether you are eligible to purchase the Class A share without paying the front load. Other share classes may be rated differently.*
YEAR-BY-YEAR TOTAL RETURNS2 (%) CLASS A WITHOUT SALES CHARGE 2002 14.51 2003 19.24 2004 8.51 2005 2.16 2006 1.44 2007 3.67 2008 34.77 2009 44.32 2010 12.16 2011 3.85
38
1 The Morningstar Style Box reveals the Funds investment style. For equity funds, the vertical axis shows the market capitalization of the stocks owned and the horizontal axis shows investment style (value, blend or growth). 2 Performance results reflect any expense reductions. Without these reductions, performance would have been less favorable. 3 The Russell 1000 Growth Index is an unmanaged index composed of the Russell 1000 securities that have a greater-than-average growth orientation. The S&P 500 Index is an unmanaged index of 500 widely traded common stocks and is generally representative of the market for stocks of large-sized U.S. companies. It is not possible to invest directly in an index.
QFG.indb 38
11/1/2012 11:14:49 AM
Q3
I 2012
PORTFOLIO MANAGEMENT Investment Adviser John Hancock Advisers, LLC Subadviser Sustainable Growth Advisers, LP Portfolio Managers George Fraise Principal Joined Fund team in 2000 Began career in 1987 Gordon Marchand, CFA, CIC Principal Joined Fund team in 1995 Began career in 1977 Robert Rohn Principal Joined Fund team in 2003 Began career in 1983 KEY STATISTICS Class A Inception Total net assets (mil) Portfolio turnover
5
Growth stocks may be subject to greater price fluctuations because their prices tend to place more emphasis on earnings expectations. Large company stocks as a group could fall out of favor with the market, causing the Fund to underperform. Foreign investing, especially in emerging markets, has additional risks, such as currency and market volatility and political and social instability. The Fund may invest its assets in a small number of issuers. Performance could suffer significantly from adverse events affecting these issuers. For additional information on these and other risk considerations, please see the Funds prospectus.
A funds 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 Funds at 1-800-225-5291 or visit our Web site at www.jhfunds.com. Please read the prospectus carefully before investing or sending money.
Russell 1000 Growth Index Beta6 1.02 Standard deviation7 Fund Benchmark 16.78 16.07
Visit us at www.jhfunds.com
4 Listed holdings do not represent all of the holdings in the Fund. Holdings are subject to change at any time and are not recommendations to buy or sell any security. Characteristics are expressed as a percentage of net assets and exclude cash and cash equivalents. 5 The portfolio turnover is from the Funds most current annual report and is subject to change. Please see the annual report for further details regarding the turnover ratio. 6 Source: Morningstar, Inc. Beta is the market risk of the Funds Class A shares and is based on 3-year performance as of 9/30/12. By definition, the beta of the market (as represented by the stated benchmark) is 1.00. Accordingly, a fund with a 1.10 beta is theoretically expected to have 10% more volatility than the market. 7 Source: Morningstar, Inc. Based on Class A shares at NAV for the 3-year period as of 9/30/12. Standard deviation measures performance fluctuation generally the higher the standard deviation, the greater the expected volatility of returns. These measures of past risk are not completely or necessarily representative of future risk and cannot predict a funds performance. * For each fund with at least a 3-year history, Morningstar calculates a Morningstar Rating based on a Morningstar Risk-Adjusted Return that accounts for variation in a funds monthly performance (including effects of sales charges, loads and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category, the next 22.5%, 35%, 22.5% and the bottom 10% receive 5, 4, 3, 2 or 1 star(s), respectively. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) Past performance is no guarantee of future results.
39
QFG.indb 39
11/1/2012 11:14:52 AM
John Hancock
A JALAX
B JBLAX
C JCLAX
R1 JPLAX
AVERAGE ANNUAL TOTAL RETURNS2 Without maximum sales charge Class A S&P 500 Index3 MSCI EAFE Index3 With 5% maximum sales charge Class A 1-year 3-year 5-year 22.56% 8.45% 1.56% 30.20% 13.20% 1.05% 14.33% 2.59% 4.77% 16.39% 6.60% 2.56% 10-year Life of Fund (10/18/05) 3.34% 4.99% 2.83% 2.59%
I 2012
Q3
MARKET CAP
VALUE
BLEND GROWTH
The Portfolios total annual operating expense ratio as of the current prospectus is 1.47%. Expenses for other share classes will vary, which will affect returns. Performance figures assume that all distributions are reinvested. Performance quoted without sales charges would be reduced if the sales charges were applied. For performance data current to the most recent month end, contact your financial professional or call John Hancock Funds at 1-800-225-5291. The performance data contained within this material represents past performance, which does not guarantee future results. The return and principal value of an investment will fluctuate, so that shares, when redeemed, may be worth more or less than the original cost. The Portfolios current performance may be higher or lower and is subject to substantial changes. GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT2 Class A without sales charge 10/18/05 to 9/30/12
YEAR-BY-YEAR TOTAL RETURNS2 (%) CLASS A WITHOUT SALES CHARGE 2002 2003 2004 2005 6.444 2006 14.96 2007 8.00 2008 42.40 2009 36.04 2010 15.50 2011 7.09
40
1 The Morningstar Style Box reveals the Portfolios investment style. For equity funds, the vertical axis shows the market capitalization of the stocks owned and the horizontal axis shows investment style (value, blend or growth). 2 Performance results reflect any expense reductions. Without these reductions, performance would have been less favorable. 3 The S&P 500 Index is an unmanaged index of 500 widely traded common stocks and is generally representative of the market for stocks of large-sized U.S. companies. The MSCI EAFE Index is a free float-adjusted market-capitalization index that is designed to measure developed market equity performance, excluding the U.S. and Canada. The total return for this index is calculated gross of foreign withholding tax on dividends. It is not possible to invest directly in an index. 4 Results since inception (not annualized).
QFG.indb 40
11/1/2012 11:14:53 AM
Q3
I 2012
PORTFOLIO MANAGEMENT
Investment Adviser John Hancock Investment Management Services, LLC Subadviser John Hancock Asset Management Portfolio Managers Robert Boyda Portfolio Manager since 2010 Began career in 1979 Steven Medina, CFA Portfolio Manager since 2010 Began career in 1994 Steve Orlich Portfolio Manager since 2005 Began career in 1979 PORTFOLIO SUMMARY Class A Inception Number of underlying funds Number of unique managers Total net assets (mil) 10/18/05 46 25 $3,848.8
Emerging Markets (DFA) International Value (Franklin Templeton) Mid Cap Stock (Wellington) International Core (GMO) Global Shareholder Yield (Epoch) Natural Resources (Wellington/RS Investments) Health Sciences (T. Rowe Price) International Growth Stock (Invesco) China Emerging Leaders (Atlantis) International Growth Opportunities (Baillie Gifford) Global Real Estate (DeAM) International Small Cap (Franklin Templeton) International Small Company (DFA) Small Cap Intrinsic Value (JHAM) Heritage (American Century) Small Cap Growth (Wellington) Small Cap Opportunities (DFA/Invesco) International Opportunities (Invesco) Real Estate Equity (T. Rowe Price) Small Company Growth (Invesco) Smaller Company Growth (JHAM, Frontier, Perimeter) Mid Cap Value Equity (Columbia)
The Portfolios performance depends on the Advisers skill in determining the strategic asset class allocations, the mix of underlying funds and the performance of those underlying funds. The underlying funds performance may be lower than the performance of the asset class which they were selected to represent. The Portfolio is subject to the same risks as the underlying funds in which it invests, which include the following: stocks and bonds can decline due to adverse issuer, market, regulatory or economic developments; foreign investing, especially in emerging markets, has additional risks, such as currency and market volatility and political and social instability; and the securities of small-capitalization companies are subject to higher volatility than larger, more established companies; high-yield bonds are subject to additional risks, such as increased risk of default. For additional information on these and other risk considerations, please see the Portfolios prospectus.
A portfolios investment objectives, risks, charges and expenses should be considered carefully before investing. The prospectus contains this and other important information about the Portfolio. To obtain a prospectus, contact your financial professional, call John Hancock Funds at 1-800-225-5291 or visit our Web site at www.jhfunds.com. Please read the prospectus carefully before investing or sending money.
RISK MEASURES VS. BENCHMARK Benchmark S&P 500 Index Beta6 Standard deviation7 Fund Benchmark 17.35 15.58 1.10
Visit us at www.jhfunds.com
5 Listed holdings do not represent all of the holdings in the Portfolio. Holdings are subject to change at any time and are not recommendations to buy or sell any security. Characteristics are expressed as a percentage of net assets and exclude cash and cash equivalents. 6 Source: Morningstar, Inc. Beta is the market risk of the Portfolios Class A shares and is based on 3-year performance as of 9/30/12. By definition, the beta of the market (as represented by the stated benchmark) is 1.00. Accordingly, a fund with a 1.10 beta is theoretically expected to have 10% more volatility than the market. 7 Source: Morningstar, Inc. Based on Class A shares at NAV for the 3-year period as of 9/30/12. Standard deviation measures performance fluctuation generally, the higher the standard deviation, the greater the expected volatility of returns. These measures of past risk are not completely or necessarily representative of future risk and cannot predict a funds performance.
41
QFG.indb 41
11/1/2012 11:15:02 AM
John Hancock
AVERAGE ANNUAL TOTAL RETURNS2 Without maximum sales charge 1-year 3-year Class A 18.50% 8.71% S&P 500 Index3 30.20% 13.20% Barclays Capital U.S. Aggregate Bond Index3 5.16% 6.19% Custom benchmark3 With 5% maximum sales charge Class A 19.87% 10.71% 12.58% 6.86% 5-year 1.94% 1.05% 6.53% 3.67% 0.89% 10-year Life of Fund (10/18/05) 4.78% 4.99% 6.04% 5.80% 4.01%
I 2012
Q3
MARKET CAP
VALUE
BLEND GROWTH
The Portfolios total annual operating expense ratio as of the current prospectus is 1.36%. This figure is based on estimated expenses of the underlying funds in the Portfolio. Expenses for other share classes will vary, which will affect returns. Performance figures assume that all distributions are reinvested. Performance quoted without sales charges would be reduced if the sales charges were applied. For performance data current to the most recent month end, contact your financial professional or call John Hancock Funds at 1-800-225-5291. The performance data contained within this material represents past performance, which does not guarantee future results. The return and principal value of an investment will fluctuate, so that shares, when redeemed, may be worth more or less than the original cost. The Portfolios current performance may be higher or lower and is subject to substantial changes. GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT2 Class A without sales charge 10/18/05 to 9/30/12
YEAR-BY-YEAR TOTAL RETURNS2 (%) CLASS A WITHOUT SALES CHARGE 2002 2003 2004 2005 4.314 2006 12.16 2007 5.90 2008 31.63 2009 32.87 2010 13.13 2011 2.62
42
1 The Morningstar Style Box reveals the Portfolios investment style. For equity funds, the vertical axis shows the market capitalization of the stocks owned and the horizontal axis shows investment style (value, blend or growth). 2 Performance results reflect any expense reductions. Without these reductions, performance would have been less favorable. 3 The S&P 500 Index is composed of 500 widely held common stocks. The Barclays Capital U.S. Aggregate Bond Index includes U.S. government, corporate and mortgage-backed securities with maturities up to 30 years. These indexes are the Portfolios primary benchmarks. However, a custom benchmark which consists of 60% S&P 500 Index and 40% Barclays Capital U.S. Aggregate Bond Index is also shown to reflect the Portfolios asset allocation under normal conditions. It is not possible to invest directly in an index. 4 Results since inception (not annualized).
QFG.indb 42
11/1/2012 11:15:04 AM
Q3
I 2012
PORTFOLIO MANAGEMENT
Investment Adviser John Hancock Investment Management Services, LLC Subadviser John Hancock Asset Management Portfolio Managers Robert Boyda Portfolio Manager since 2010 Began career in 1979 Steven Medina, CFA Portfolio Manager since 2010 Began career in 1994 Steve Orlich Portfolio Manager since 2005 Began career in 1979 PORTFOLIO SUMMARY Class A Inception Number of underlying funds Number of unique managers Total net assets (mil) 10/18/05 60 30 $1,823.8
Emerging Markets (DFA) International Value (Franklin Templeton) Global Shareholder Yield (Epoch) Mid Cap Stock (Wellington) Natural Resources (Wellington/RS Investments) Health Sciences (T. Rowe Price) International Core (GMO) Global Real Estate (DeAM) International Growth Stock (Invesco) International Growth Opportunities (Baillie Gifford) China Emerging Leaders (Atlantis) International Small Cap (Franklin Templeton) International Small Company (DFA) Real Estate Equity (T. Rowe Price) Small Cap Intrinsic Value (JHAM) Heritage (American Century) Small Cap Growth (Wellington) Small Cap Opportunities (DFA / Invesco) Mid Cap Value Equity (Columbia) Small Company Growth (Invesco) Smaller Company Growth (JHAM, Frontier, Perimeter) International Opportunities (Invesco) Blue Chip Growth (T. Rowe Price) Capital Appreciation (Jennison) Strategic Growth (JHAM) Fundamental Large Cap Value (JHAM) All Cap Value (Lord Abbett) Mid Value (T. Rowe Price) All Cap Core (QS Investors)
RISK MEASURES VS. BENCHMARK Benchmark S&P 500 Index Beta6 Standard deviation7 Fund Benchmark 11.21 15.58 0.70
The Portfolios performance depends on the Advisers skill in determining the strategic asset class allocations, the mix of underlying funds and the performance of those underlying funds. The underlying funds performance may be lower than the performance of the asset class which they were selected to represent. The Portfolio is subject to the same risks as the underlying funds in which it invests, which include the following: stocks and bonds can decline due to adverse issuer, market, regulatory or economic developments; foreign investing, especially in emerging markets, has additional risks, such as currency and market volatility and political and social instability; and the securities of small-capitalization companies are subject to higher volatility than larger, more established companies; high-yield bonds are subject to additional risks, such as increased risk of default. For additional information on these and other risk considerations, please see the Portfolios prospectus.
A portfolios investment objectives, risks, charges and expenses should be considered carefully before investing. The prospectus contains this and other important information about the Portfolio. To obtain a prospectus, contact your financial professional, call John Hancock Funds at 1-800-225-5291 or visit our Web site at www.jhfunds.com. Please read the prospectus carefully before investing or sending money.
Visit us at www.jhfunds.com
5 Listed holdings do not represent all of the holdings in the Portfolio. Holdings are subject to change at any time and are not recommendations to buy or sell any security. Characteristics are expressed as a percentage of net assets and exclude cash and cash equivalents. 6 Source: Morningstar, Inc. Beta is the market risk of the Portfolios Class A shares and is based on 3-year performance as of 9/30/12. By definition, the beta of the market (as represented by the stated benchmark) is 1.00. Accordingly, a fund with a 1.10 beta is theoretically expected to have 10% more volatility than the market. 7 Source: Morningstar, Inc. Based on Class A shares at NAV for the 3-year period as of 9/30/12. Standard deviation measures performance fluctuation generally, the higher the standard deviation, the greater the expected volatility of returns. These measures of past risk are not completely or necessarily representative of future risk and cannot predict a funds performance.
43
QFG.indb 43
11/1/2012 11:15:15 AM
John Hancock
AVERAGE ANNUAL TOTAL RETURNS2 Without maximum sales charge 1-year 3-year Class A 12.58% 7.98% Barclays Capital U.S. Aggregate Bond Index3 5.16% 6.19% S&P 500 Index3 30.20% 13.20% Custom benchmark3 With 5% maximum sales charge Class A 9.95% 6.97% 7.79% 6.14% 5-year 5.06% 6.53% 1.05% 5.72% 3.99% 10-year Life of Fund (10/18/05) 5.65% 6.04% 4.99% 6.08% 4.87%
I 2012
Q3
MARKET CAP
VALUE
BLEND GROWTH
HHHH
(out of 561 Conservative Allocation funds)
The Fund was rated 3 stars and 4 stars for the 3- and 5-year periods, respectively. Load-waived rating
The Portfolios total annual operating expense ratio as of the current prospectus is 1.29%. This figure is based on estimated expenses of the underlying funds in the Portfolio. Expenses for other share classes will vary, which will affect returns. Performance figures assume that all distributions are reinvested. Performance quoted without sales charges would be reduced if the sales charges were applied. For performance data current to the most recent month end, contact your financial professional or call John Hancock Funds at 1-800-225-5291. The performance data contained within this material represents past performance, which does not guarantee future results. The return and principal value of an investment will fluctuate, so that shares, when redeemed, may be worth more or less than the original cost. The Portfolios current performance may be higher or lower and is subject to substantial changes. GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT2 Class A without sales charge 10/18/05 to 9/30/12
HHHH
The Fund was rated 3 stars and 5 stars for the 3- and 5-year periods, respectively. Overall rating is based on 3- and 5-year Morningstar Risk-Adjusted Returns and accounts for variation in a funds monthly performance. The Fund was rated out of 561 and 474 funds for the 3- and 5-year periods, respectively. The overall rating includes effects of sales charges, loads and redemption fees, while the load-waived rating does not. Load-waived ratings for Class A shares should only be considered by investors who are not subject to a front-end sales charge. Contact your financial professional to determine whether you are eligible to purchase the Class A share without paying the front load. Other share classes may be rated differently.*
YEAR-BY-YEAR TOTAL RETURNS2 (%) CLASS A WITHOUT SALES CHARGE 2002 2003 2004 2005 1.914 2006 7.81 2007 4.89 2008 15.41 2009 22.53 2010 9.96 2011 2.75
44
1 The Morningstar Style Box reveals the Portfolios investment style. For equity funds, the vertical axis shows the market capitalization of the stocks owned and the horizontal axis shows investment style (value, blend or growth). 2 Performance results reflect any expense reductions. Without these reductions, performance would have been less favorable. 3 The S&P 500 Index is composed of 500 widely held common stocks. The Barclays Capital U.S. Aggregate Bond Index includes U.S. government, corporate and mortgage-backed securities with maturities up to 30 years. These indexes are the Portfolios primary benchmarks. However, a custom benchmark which consists of 20% S&P 500 Index and 80% Barclays Capital U.S. Aggregate Bond Index is also shown to reflect the Portfolios asset allocation under normal conditions. It is not possible to invest directly in an index. 4 Results since inception (not annualized).
QFG.indb 44
11/1/2012 11:15:16 AM
Q3
I 2012
PORTFOLIO MANAGEMENT
Investment Adviser John Hancock Investment Management Services, LLC Subadviser John Hancock Asset Management Portfolio Managers Robert Boyda Portfolio Manager since 2010 Began career in 1979 Steven Medina, CFA Portfolio Manager since 2010 Began career in 1994 Steve Orlich Portfolio Manager since 2005 Began career in 1979 PORTFOLIO SUMMARY Class A Inception Number of underlying funds Number of unique managers Total net assets (mil) 10/18/05 38 20 $3,768.8
The Portfolios performance depends on the Advisers skill in determining the strategic asset class allocations, the mix of underlying funds and the performance of those underlying funds. The underlying funds performance may be lower than the performance of the asset class which they were selected to represent. The Portfolio is subject to the same risks as the underlying funds in which it invests, which include the following: stocks and bonds can decline due to adverse issuer, market, regulatory or economic developments; foreign investing, especially in emerging markets, has additional risks, such as currency and market volatility and political and social instability; and the securities of small-capitalization companies are subject to higher volatility than larger, more established companies; high-yield bonds are subject to additional risks, such as increased risk of default. For additional information on these and other risk considerations, please see the Portfolios prospectus.
A portfolios investment objectives, risks, charges and expenses should be considered carefully before investing. The prospectus contains this and other important information about the Portfolio. To obtain a prospectus, contact your financial professional, call John Hancock Funds at 1-800-225-5291 or visit our Web site at www.jhfunds.com. Please read the prospectus carefully before investing or sending money.
RISK MEASURES VS. BENCHMARK Benchmark Barclays Capital U.S. Aggregate Bond Index Beta6 Standard deviation7 Fund Benchmark 5.13 2.70 0.10
Visit us at www.jhfunds.com
5 Listed holdings do not represent all of the holdings in the Portfolio. Holdings are subject to change at any time and are not recommendations to buy or sell any security. Characteristics are expressed as a percentage of net assets and exclude cash and cash equivalents. 6 Source: Morningstar, Inc. Beta is the market risk of the Portfolios Class A shares and is based on 3-year performance as of 9/30/12. By definition, the beta of the market (as represented by the stated benchmark) is 1.00. Accordingly, a fund with a 1.10 beta is theoretically expected to have 10% more volatility than the market. 7 Source: Morningstar, Inc. Based on Class A shares at NAV for the 3-year period as of 9/30/12. Standard deviation measures performance fluctuation generally, the higher the standard deviation, the greater the expected volatility of returns. These measures of past risk are not completely or necessarily representative of future risk and cannot predict a funds performance. * For each fund with at least a 3-year history, Morningstar calculates a Morningstar Rating based on a Morningstar Risk-Adjusted Return that accounts for variation in a funds monthly performance (including effects of sales charges, loads and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category, the next 22.5%, 35%, 22.5% and the bottom 10% receive 5, 4, 3, 2 or 1 star(s), respectively. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) Past performance is no guarantee of future results.
45
QFG.indb 45
11/1/2012 11:15:26 AM
John Hancock
AVERAGE ANNUAL TOTAL RETURNS2 Without maximum sales charge 1-year 3-year Class A 21.13% 8.71% S&P 500 Index3 30.20% 13.20% Barclays Capital U.S. Aggregate Bond Index3 5.16% 6.19% Custom benchmark3 With 5% maximum sales charge Class A 24.98% 12.01% 15.05% 6.87% 5-year 0.36% 1.05% 6.53% 2.43% 0.67% 10-year Life of Fund (10/18/05) 4.11% 4.99% 6.04% 5.47% 3.34%
I 2012
Q3
MARKET CAP
VALUE
BLEND GROWTH
The Portfolios total annual operating expense ratio as of the current prospectus is 1.44%. This figure is based on estimated expenses of the underlying funds in the Portfolio. Expenses for other share classes will vary, which will affect returns. Performance figures assume that all distributions are reinvested. Performance quoted without sales charges would be reduced if the sales charges were applied. For performance data current to the most recent month end, contact your financial professional or call John Hancock Funds at 1-800-225-5291. The performance data contained within this material represents past performance, which does not guarantee future results. The return and principal value of an investment will fluctuate, so that shares, when redeemed, may be worth more or less than the original cost. The Portfolios current performance may be higher or lower and is subject to substantial changes. GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT2 Class A without sales charge 10/18/05 to 9/30/12
YEAR-BY-YEAR TOTAL RETURNS2 (%) CLASS A WITHOUT SALES CHARGE 2002 2003 2004 2005 5.284 2006 13.02 2007 6.96 2008 36.89 2009 34.54 2010 14.77 2011 5.30
46
1 The Morningstar Style Box reveals the Portfolios investment style. For equity funds, the vertical axis shows the market capitalization of the stocks owned and the horizontal axis shows investment style (value, blend or growth). 2 Performance results reflect any expense reductions. Without these reductions, performance would have been less favorable. 3 The S&P 500 Index is composed of 500 widely held common stocks. The Barclays Capital U.S. Aggregate Bond Index includes U.S. government, corporate and mortgage-backed securities with maturities up to 30 years. These indexes are the Portfolios primary benchmarks. However, a custom benchmark which consists of 80% S&P 500 Index and 20% Barclays Capital U.S. Aggregate Bond Index is also shown to reflect the Portfolios asset allocation under normal conditions. It is not possible to invest directly in an index. 4 Results since inception (not annualized).
QFG.indb 46
11/1/2012 11:15:27 AM
Q3
I 2012
PORTFOLIO MANAGEMENT
Investment Adviser John Hancock Investment Management Services, LLC Subadviser John Hancock Asset Management Portfolio Managers Robert Boyda Portfolio Manager since 2010 Began career in 1979 Steven Medina, CFA Portfolio Manager since 2010 Began career in 1994 Steve Orlich Portfolio Manager since 2005 Began career in 1979 PORTFOLIO SUMMARY Class A Inception Number of underlying funds Number of unique managers Total net assets (mil) 10/18/05 58 30 $1,532.7
Emerging Markets (DFA) International Value (Franklin Templeton) Global Shareholder Yield (Epoch) Mid Cap Stock (Wellington) International Core (GMO) Health Sciences (T. Rowe Price) Natural Resources (Wellington/RS Investments) Global Real Estate (DeAM) International Growth Stock (Invesco) China Emerging Leaders (Atlantis) International Growth Opportunities (Baillie Gifford) International Small Company (DFA) International Small Cap (Franklin Templeton) Small Cap Intrinsic Value (JHAM) Heritage (American Century) Real Estate Equity (T. Rowe Price) Small Cap Growth (Wellington) Small Cap Opportunities (DFA / Invesco) International Opportunities (Invesco) Mid Cap Value Equity (Columbia) Small Company Growth (Invesco) Smaller Company Growth (JHAM, Frontier, Perimeter) Blue Chip Growth (T. Rowe Price) Capital Appreciation (Jennison) Strategic Growth (JHAM) Fundamental Large Cap Value (JHAM) All Cap Core (QS Investors) All Cap Value (Lord Abbett)
RISK MEASURES VS. BENCHMARK Benchmark S&P 500 Index Beta6 Standard deviation7 Fund Benchmark 14.41 15.58 0.91
The Portfolios performance depends on the Advisers skill in determining the strategic asset class allocations, the mix of underlying funds and the performance of those underlying funds. The underlying funds performance may be lower than the performance of the asset class which they were selected to represent. The Portfolio is subject to the same risks as the underlying funds in which it invests, which include the following: stocks and bonds can decline due to adverse issuer, market, regulatory or economic developments; foreign investing, especially in emerging markets, has additional risks, such as currency and market volatility and political and social instability; and the securities of small-capitalization companies are subject to higher volatility than larger, more established companies; high-yield bonds are subject to additional risks, such as increased risk of default. For additional information on these and other risk considerations, please see the Portfolios prospectus.
A portfolios investment objectives, risks, charges and expenses should be considered carefully before investing. The prospectus contains this and other important information about the Portfolio. To obtain a prospectus, contact your financial professional, call John Hancock Funds at 1-800-225-5291 or visit our Web site at www.jhfunds.com. Please read the prospectus carefully before investing or sending money.
Visit us at www.jhfunds.com
5 Listed holdings do not represent all of the holdings in the Portfolio. Holdings are subject to change at any time and are not recommendations to buy or sell any security. Characteristics are expressed as a percentage of net assets and exclude cash and cash equivalents. 6 Source: Morningstar, Inc. Beta is the market risk of the Portfolios Class A shares and is based on 3-year performance as of 9/30/12. By definition, the beta of the market (as represented by the stated benchmark) is 1.00. Accordingly, a fund with a 1.10 beta is theoretically expected to have 10% more volatility than the market. 7 Source: Morningstar, Inc. Based on Class A shares at NAV for the 3-year period as of 9/30/12. Standard deviation measures performance fluctuation generally, the higher the standard deviation, the greater the expected volatility of returns. These measures of past risk are not completely or necessarily representative of future risk and cannot predict a funds performance.
47
QFG.indb 47
11/1/2012 11:15:41 AM
John Hancock
AVERAGE ANNUAL TOTAL RETURNS2 Without maximum sales charge 1-year 3-year Class A 15.40% 8.74% Barclays Capital U.S. Aggregate Bond Index3 5.16% 6.19% S&P 500 Index3 30.20% 13.20% Custom benchmark3 With 5% maximum sales charge Class A 14.86% 9.62% 9.30% 6.89% 5-year 3.74% 6.53% 1.05% 4.77% 2.68% 10-year Life of Fund (10/18/05) 5.32% 6.04% 4.99% 6.00% 4.54%
I 2012
Q3
MARKET CAP
VALUE
BLEND GROWTH
The Portfolios total annual operating expense ratio as of the current prospectus is 1.36%. This figure is based on estimated expenses of the underlying funds in the Portfolio. Expenses for other share classes will vary, which will affect returns. Performance figures assume that all distributions are reinvested. Performance quoted without sales charges would be reduced if the sales charges were applied. For performance data current to the most recent month end, contact your financial professional or call John Hancock Funds at 1-800-225-5291. The performance data contained within this material represents past performance, which does not guarantee future results. The return and principal value of an investment will fluctuate, so that shares, when redeemed, may be worth more or less than the original cost. The Portfolios current performance may be higher or lower and is subject to substantial changes. GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT2 Class A without sales charge 10/18/05 to 9/30/12
YEAR-BY-YEAR TOTAL RETURNS2 (%) CLASS A WITHOUT SALES CHARGE 2002 2003 2004 2005 3.174 2006 9.80 2007 4.78 2008 23.88 2009 27.88 2010 11.85 2011 0.73
48
1 The Morningstar Style Box reveals the Portfolios investment style. For equity funds, the vertical axis shows the market capitalization of the stocks owned and the horizontal axis shows investment style (value, blend or growth). 2 Performance results reflect any expense reductions. Without these reductions, performance would have been less favorable. 3 The S&P 500 Index is composed of 500 widely held common stocks. The Barclays Capital U.S. Aggregate Bond Index includes U.S. government, corporate and mortgage-backed securities with maturities up to 30 years. These indexes are the Portfolios primary benchmarks. However, a custom benchmark which consists of 40% S&P 500 Index and 60% Barclays Capital U.S. Aggregate Bond Index is also shown to reflect the Portfolios asset allocation under normal conditions. It is not possible to invest directly in an index. 4 Results since inception (not annualized).
QFG.indb 48
11/1/2012 11:15:43 AM
Q3
I 2012
PORTFOLIO MANAGEMENT
Investment Adviser John Hancock Investment Management Services, LLC Subadviser John Hancock Asset Management Portfolio Managers Robert Boyda Portfolio Manager since 2010 Began career in 1979 Steven Medina, CFA Portfolio Manager since 2010 Began career in 1994 Steve Orlich Portfolio Manager since 2005 Began career in 1979 PORTFOLIO SUMMARY Class A Inception Number of underlying funds Number of unique managers Total net assets (mil) 10/18/05 48 25 $4,150.5
Emerging Markets (DFA) Global Shareholder Yield (Epoch) International Value (Franklin Templeton) Mid Cap Stock (Wellington) Global Real Estate (DeAM) Natural Resources (Wellington/RS Investments) International Core (GMO) International Growth Stock (Invesco) International Growth Opportunities (Baillie Gifford) Real Estate Equity (T. Rowe Price) International Small Cap (Franklin Templeton) International Small Company (DFA) Small Cap Growth (Wellington) Small Company Growth (Invesco) Smaller Company Growth (JHAM, Frontier, Perimeter) Blue Chip Growth (T. Rowe Price) Capital Appreciation (Jennison) Fundamental Large Cap Value (JHAM) Strategic Growth (JHAM) All Cap Value (Lord Abbett) Mid Value (T. Rowe Price) Rainier Growth (Rainier) International Value Equity (JHAM)
RISK MEASURES VS. BENCHMARK Benchmark Barclays Capital U.S. Aggregate Bond Index Beta6 Standard deviation7 Fund Benchmark 7.89 2.70 0.72
The Portfolios performance depends on the Advisers skill in determining the strategic asset class allocations, the mix of underlying funds and the performance of those underlying funds. The underlying funds performance may be lower than the performance of the asset class which they were selected to represent. The Portfolio is subject to the same risks as the underlying funds in which it invests, which include the following: stocks and bonds can decline due to adverse issuer, market, regulatory or economic developments; foreign investing, especially in emerging markets, has additional risks, such as currency and market volatility and political and social instability; and the securities of small-capitalization companies are subject to higher volatility than larger, more established companies; high-yield bonds are subject to additional risks, such as increased risk of default. For additional information on these and other risk considerations, please see the Portfolios prospectus.
A portfolios investment objectives, risks, charges and expenses should be considered carefully before investing. The prospectus contains this and other important information about the Portfolio. To obtain a prospectus, contact your financial professional, call John Hancock Funds at 1-800-225-5291 or visit our Web site at www.jhfunds.com. Please read the prospectus carefully before investing or sending money.
Visit us at www.jhfunds.com
5 Listed holdings do not represent all of the holdings in the Portfolio. Holdings are subject to change at any time and are not recommendations to buy or sell any security. Characteristics are expressed as a percentage of net assets and exclude cash and cash equivalents. 6 Source: Morningstar, Inc. Beta is the market risk of the Portfolios Class A shares and is based on 3-year performance as of 9/30/12. By definition, the beta of the market (as represented by the stated benchmark) is 1.00. Accordingly, a fund with a 1.10 beta is theoretically expected to have 10% more volatility than the market. 7 Source: Morningstar, Inc. Based on Class A shares at NAV for the 3-year period as of 9/30/12. Standard deviation measures performance fluctuation generally, the higher the standard deviation, the greater the expected volatility of returns. These measures of past risk are not completely or necessarily representative of future risk and cannot predict a funds performance.
49
QFG.indb 49
11/1/2012 11:15:55 AM
John Hancock
A JEVAX
I JEVIX
AVERAGE ANNUAL TOTAL RETURNS2 Without maximum sales charge Class A MSCI Emerging Markets Index3
LARGE MEDIUM SMALL
I 2012
10-year
MARKET CAP
With 5% maximum sales charge Class A 5/1/07 is the inception date for the oldest class of shares, NAV shares. Class A shares were first offered on 3/31/11; returns prior to this date are those of Class NAV shares that have been recalculated to apply the gross fees and expenses of Class A. The Funds total annual operating expense ratio as of the current prospectus is 1.64%. Expenses for other share classes will vary, which will affect returns. Performance figures assume that all distributions are reinvested. Performance quoted without sales charges would be reduced if the sales charges were applied. For performance data current to the most recent month end, contact your financial professional or call John Hancock Funds at 1-800-225-5291. The performance data contained within this material represents past performance, which does not guarantee future results. The return and principal value of an investment will fluctuate, so that shares, when redeemed, may be worth more or less than the original cost. The Funds current performance may be higher or lower and is subject to substantial changes. GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT2 Class A without sales charge 5/1/07 to 9/30/12
Q3
VALUE
BLEND GROWTH
YEAR-BY-YEAR TOTAL RETURNS2 (%) CLASS A WITHOUT SALES CHARGE 2002 2003 2004 2005 2006 2007 18.874 2008 51.62 2009 97.51 2010 23.00 2011 25.42
50
1 The Morningstar Style Box reveals the Funds investment style. For equity funds, the vertical axis shows the market capitalization of the stocks owned and the horizontal axis shows investment style (value, blend or growth). 2 Performance results reflect any expense reductions. Without these reductions, performance would have been less favorable. 3 The MSCI Emerging Markets Index is a free float-adjusted market-capitalization index that is designed to measure equity market performance of emerging markets. It is not possible to invest directly in an index. 4 Results since inception (not annualized).
QFG.indb 50
11/1/2012 11:15:57 AM
Q3
I 2012
PORTFOLIO MANAGEMENT Investment Adviser John Hancock Investment Management Services, LLC Subadviser Dimensional Fund Advisors LP The Fund is managed by a team of portfolio managers at Dimensional Fund Advisors LP KEY STATISTICS Class A Inception Total net assets (mil) Portfolio turnover6 Number of holdings RISK MEASURES VS. BENCHMARK South Korea Brazil Taiwan China India South Africa Mexico Malaysia Indonesia Russia 15.32% 13.60% 13.23% 13.10% 8.45% 8.03% 5.38% 4.00% 3.34% 3.33% Benchmark MSCI Emerging Markets Index Beta7 Standard deviation8 Fund Benchmark 23.55 21.83 1.06 3/31/11 $2,359.7 11% 3,190
The risks of investing in foreign securities are greater for investments in emerging markets. Emerging-market countries may experience higher inflation, interest rates and unemployment, as well as greater social, economic, regulatory and political uncertainties than more developed countries. Value stocks may not increase in price as anticipated or may decline further in value. The prices of medium- and small-company stocks can change more frequently and dramatically than those of large-company stocks. If the Fund invests in illiquid securities, it may be difficult to sell them at a price approximating their value. Currency transactions are impacted by fluctuations in exchange rates, which may adversely affect the U.S. dollar value of a funds investments. The use of hedging and derivatives transactions could produce disproportionate gains or losses and increase volatility and costs. For additional information on these and other risk considerations, please see the Funds prospectus.
A funds 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 Funds at 1-800-225-5291 or visit our Web site at www.jhfunds.com. Please read the prospectus carefully before investing or sending money.
Visit us at www.jhfunds.com
5 Listed holdings do not represent all of the holdings in the Fund. Holdings are subject to change at any time and are not recommendations to buy or sell any security. Characteristics are expressed as a percentage of net assets and exclude cash and cash equivalents. 6 The portfolio turnover is from the Funds most current annual report and is subject to change. Please see the annual report for further details regarding the turnover ratio. 7 Source: Morningstar, Inc. Beta is the market risk of the Funds Class A shares and is based on 3-year performance as of 9/30/12. By definition, the beta of the market (as represented by the stated benchmark) is 1.00. Accordingly, a fund with a 1.10 beta is theoretically expected to have 10% more volatility than the market. 8 Source: Morningstar, Inc. Based on Class A shares at NAV for the 3-year period as of 9/30/12. Standard deviation measures performance fluctuation generally, the higher the standard deviation, the greater the expected volatility of returns. These measures of past risk are not completely or necessarily representative of future risk and cannot predict a funds performance.
51
QFG.indb 51
11/1/2012 11:16:00 AM
John Hancock
A JGPAX
B JGPBX
C JGPCX
I JGPIX
AVERAGE ANNUAL TOTAL RETURNS2 Without maximum sales charge Class A S&P Global BMI Index3
LARGE MEDIUM SMALL
I 2012
10-year
MARKET CAP
With 5% maximum sales charge Class A The Funds total annual operating expense ratio as of the current prospectus is 1.47%. Expenses for other share classes will vary, which will affect returns. Performance figures assume that all distributions are reinvested. Performance quoted without sales charges would be reduced if the sales charges were applied. For performance data current to the most recent month end, contact your financial professional or call John Hancock Funds at 1-800-225-5291. The performance data contained within this material represents past performance, which does not guarantee future results. The return and principal value of an investment will fluctuate, so that shares, when redeemed, may be worth more or less than the original cost. The Funds current performance may be higher or lower and is subject to substantial changes. GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT2 Class A without sales charge 2/28/05 to 9/30/12
Q3
VALUE
BLEND GROWTH
YEAR-BY-YEAR TOTAL RETURNS2 (%) CLASS A WITHOUT SALES CHARGE 2002 2003 2004 2005 18.854 2006 23.38 2007 33.05 2008 50.91 2009 93.03 2010 30.77 2011 31.89
52
1 The Morningstar Style Box reveals the Funds investment style. For equity funds, the vertical axis shows the market capitalization of the stocks owned and the horizontal axis shows investment style (value, blend or growth). 2 Performance results reflect any expense reductions. Without these reductions, performance would have been less favorable. 3 The S&P Global BMI Index covers both developed and emerging economies and includes over 10,000 companies in more than 53 countries. It is not possible to invest directly in an index. 4 Results since inception (not annualized).
QFG.indb 52
11/1/2012 11:16:02 AM
Q3
I 2012
PORTFOLIO MANAGEMENT Investment Adviser John Hancock Advisers, LLC Subadviser John Hancock Asset Management Portfolio Managers Christopher Arbuthnot, CFA Senior Portfolio Manager Joined Fund team in 2008 Began career in 1998 Timothy Malloy Senior Portfolio Manager Managed Fund since it began in 2005 Began career in 1993 Roger Hamilton Senior Portfolio Manager Joined Fund team in 2008 Began career in 1979 KEY STATISTICS Class A Inception Total net assets (mil) Portfolio turnover6 Number of holdings RISK MEASURES VS. BENCHMARK Benchmark S&P Global BMI Index Beta7 Standard deviation8 Fund Benchmark 24.57 17.76 1.24 2/28/05 $645.5 136% 64
TEN LARGEST COUNTRIES5 United States Canada India Brazil Italy France United Kingdom Egypt Switzerland Japan WHAT YOU SHOULD KNOW BEFORE INVESTING 28.70% 19.33% 11.30% 10.10% 6.62% 5.23% 3.22% 3.21% 2.16% 2.14%
Foreign investing, especially in emerging markets, has additional risks, such as currency and market volatility and political and social instability. Value stocks may not increase in price as anticipated or may decline further in value. Fixed-income investments are subject to interest-rate and credit risk; their value will normally decline as interest rates rise or if the creditor is unable or unwilling to make principal or interest payments. Investments in higher-yielding, lower-rated securities involve additional risks as these securities include a higher risk of default and loss of principal. Frequently trading securities may increase transaction costs (thus lowering performance) and taxable distributions. The use of hedging and derivatives transactions could produce disproportionate gains or losses and may increase volatility and costs. For additional information on these and other risk considerations, please see the Funds prospectus.
A funds 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 Funds at 1-800-225-5291 or visit our Web site at www.jhfunds.com. Please read the prospectus carefully before investing or sending money.
Visit us at www.jhfunds.com
5 Listed holdings do not represent all of the holdings in the Fund. Holdings are subject to change at any time and are not recommendations to buy or sell any security. Characteristics are expressed as a percentage of net assets and exclude cash and cash equivalents. 6 The portfolio turnover is from the Funds most current annual report and is subject to change. Please see the annual report for further details regarding the turnover ratio. 7 Source: Morningstar, Inc. Beta is the market risk of the Funds Class A shares and is based on 3-year performance as of 9/30/12. By definition, the beta of the market (as represented by the stated benchmark) is 1.00. Accordingly, a fund with a 1.10 beta is theoretically expected to have 10% more volatility than the market. 8 Source: Morningstar, Inc. Based on Class A shares at NAV for the 3-year period as of 9/30/12. Standard deviation measures performance fluctuation generally, the higher the standard deviation, the greater the expected volatility of returns. These measures of past risk are not completely or necessarily representative of future risk and cannot predict a funds performance.
53
QFG.indb 53
11/1/2012 11:16:05 AM
John Hancock
AVERAGE ANNUAL TOTAL RETURNS2 Without maximum sales charge Class A MSCI World Index3
LARGE MEDIUM SMALL
I 2012
1-year 3-year 5-year 17.48% 11.19% 1.50% 22.32% 8.07% 1.58% 11.59% 9.32% 0.46%
10-year
MARKET CAP
With 5% maximum sales charge Class A The Funds net annual operating expense ratio as of the current prospectus is 1.42%. The gross annual operating expense ratio of 1.47% is reduced due to a contractual expense reimbursement, which is in effect until at least 6/30/13 and may be terminated by the Adviser any time after this date. Expenses for other share classes will vary, which will affect returns. Performance figures assume that all distributions are reinvested. Performance quoted without sales charges would be reduced if the sales charges were applied. For performance data current to the most recent month end, contact your financial professional or call John Hancock Funds at 1-800-225-5291. The performance data contained within this material represents past performance, which does not guarantee future results. The return and principal value of an investment will fluctuate, so that shares, when redeemed, may be worth more or less than the original cost. The Funds current performance may be higher or lower and is subject to substantial changes. GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT2 Class A without sales charge 3/1/07 to 9/30/12
Q3
VALUE
BLEND GROWTH
HHHHH
(out of 740 World Stock funds)
The Fund was rated 4 stars and 5 stars for the 3- and 5-year periods, respectively. Load-waived rating
HHHHH
(out of 740 World Stock funds)
The Fund was rated 5 stars for the 3and 5-year periods. Overall rating is based on 3- and 5-year Morningstar Risk-Adjusted Returns and accounts for variation in a funds monthly performance. The Fund was rated out of 740 and 529 funds for the 3- and 5-year periods, respectively. The overall rating includes effects of sales charges, loads and redemption fees, while the load-waived rating does not. Load-waived ratings for Class A shares should only be considered by investors who are not subject to a front-end sales charge. Contact your financial professional to determine whether you are eligible to purchase the Class A share without paying the front load. Other share classes may be rated differently.*
YEAR-BY-YEAR TOTAL RETURNS2 (%) CLASS A WITHOUT SALES CHARGE 2002 2003 2004 2005 2006 2007 7.234 2008 30.49 2009 22.98 2010 11.82 2011 5.33
54
1 The Morningstar Style Box reveals the Funds investment style. For equity funds, the vertical axis shows the market capitalization of the stocks owned and the horizontal axis shows investment style (value, blend or growth). 2 Performance results reflect any expense reductions. Without these reductions, performance would have been less favorable. 3 MSCI World Index is a free float-adjusted market-capitalization weighted index that is designed to measure the equity market performance of developed markets. The total return for this index is calculated gross of foreign withholding tax on dividends. It is not possible to invest directly in an index. 4 Results since inception (not annualized).
QFG.indb 54
11/1/2012 11:16:06 AM
Q3
I 2012
PORTFOLIO MANAGEMENT Investment Adviser John Hancock Investment Management Services, LLC Subadviser Epoch Investment Partners, Inc. Portfolio Managers William Priest, CFA, CPA Co-Chief Investment Officer Managed Fund since it began in 2007 Began career in 1965 Eric Sappenfield Managing Director Managed Fund since it began in 2007 Began career in 1986 Michael Welhoelter, CFA Managing Director Managed Fund since it began in 2007 Began career in 1986 KEY STATISTICS Class A Inception Total net assets (mil) Portfolio turnover6 Number of holdings SEC 30-day yield RISK MEASURES VS. BENCHMARK Benchmark MSCI World Index Beta
7
TEN LARGEST COUNTRIES5 United States United Kingdom Germany France Switzerland Canada Belgium Australia Italy Taiwan WHAT YOU SHOULD KNOW BEFORE INVESTING 48.64% 19.99% 6.19% 6.13% 5.35% 3.84% 1.51% 1.29% 0.92% 0.74%
Foreign investing, especially in emerging markets, has additional risks, such as currency and market volatility and political and social instability. If the Fund invests in illiquid securities, it may be difficult to sell them at a price approximating their value. Hedging and other strategic transactions may increase volatility of a fund and, if the transaction is not successful, could result in a significant loss. The distribution rate and income amounts reflect past amounts distributed and may not be indicative of future rates or income amounts. The distribution amounts paid by the Fund generally depend on the amount of income and/or dividends received by the Funds investments. The Fund may not be able to pay distributions or may have to reduce its distribution level if the amount of such income and/or dividends received from its investment decline. Therefore, distribution rates and income amounts can change at any time. For additional information on these and other risk considerations, please see the Funds prospectus.
A funds 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 Funds at 1-800-225-5291 or visit our Web site at www.jhfunds.com. Please read the prospectus carefully before investing or sending money.
Visit us at www.jhfunds.com
5 Listed holdings do not represent all of the holdings in the Fund. Holdings are subject to change at any time and are not recommendations to buy or sell any security. Characteristics are expressed as a percentage of net assets and exclude cash and cash equivalents. 6 The portfolio turnover is from the Funds most current annual report and is subject to change. Please see the annual report for further details regarding the turnover ratio. 7 Source: Morningstar, Inc. Beta is the market risk of the Funds Class A shares and is based on 3-year performance as of 9/30/12. By definition, the beta of the market (as represented by the stated benchmark) is 1.00. Accordingly, a fund with a 1.10 beta is theoretically expected to have 10% more volatility than the market. 8 Source: Morningstar, Inc. Based on Class A shares at NAV for the 3-year period as of 9/30/12. Standard deviation measures performance fluctuation generally, the higher the standard deviation, the greater the expected volatility of returns. These measures of past risk are not completely or necessarily representative of future risk and cannot predict a funds performance. * For each fund with at least a 3-year history, Morningstar calculates a Morningstar Rating based on a Morningstar Risk-Adjusted Return that accounts for variation in a funds monthly performance (including effects of sales charges, loads and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category, the next 22.5%, 35%, 22.5% and the bottom 10% receive 5, 4, 3, 2 or 1 star(s), respectively. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) Past performance is no guarantee of future results.
55
QFG.indb 55
11/1/2012 11:16:10 AM
John Hancock
AVERAGE ANNUAL TOTAL RETURNS2 Without maximum sales charge Class A MSCI Golden Dragon Index3
LARGE MEDIUM SMALL
I 2012
10-year
MARKET CAP
With 5% maximum sales charge Class A 0.45% 8.29% The Funds total annual operating expense ratio as of the current prospectus is 1.67%. Expenses for other share classes will vary, which will affect returns. Performance figures assume that all distributions are reinvested. Performance quoted without sales charges would be reduced if the sales charges were applied. For performance data current to the most recent month end, contact your financial professional or call John Hancock Funds at 1-800-225-5291. The performance data contained within this material represents past performance, which does not guarantee future results. The return and principal value of an investment will fluctuate, so that shares, when redeemed, may be worth more or less than the original cost. The Funds current performance may be higher or lower and is subject to substantial changes. GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT2 Class A without sales charge 6/9/05 to 9/30/12
Q3
VALUE
BLEND GROWTH
YEAR-BY-YEAR TOTAL RETURNS2 (%) CLASS A WITHOUT SALES CHARGE 2002 2003 2004 2005 10.964 2006 70.34 2007 48.11 2008 52.87 2009 58.38 2010 11.51 2011 22.91
56
1 The Morningstar Style Box reveals the Funds investment style. For equity funds, the vertical axis shows the market capitalization of the stocks owned and the horizontal axis shows investment style (value, blend or growth). 2 Performance results reflect any expense reductions. Without these reductions, performance would have been less favorable. 3 The MSCI Golden Dragon Index is a free float-adjusted market-capitalization index that is designed to measure equity market performance in the China region. The MSCI Golden Dragon Index consists of the following indexes: China, Hong Kong and Taiwan. The total return for this index is calculated gross of foreign withholding tax on dividends. It is not possible to invest directly in an index. 4 Results since inception (not annualized).
QFG.indb 56
11/1/2012 11:16:11 AM
Q3
I 2012
PORTFOLIO MANAGEMENT Investment Adviser John Hancock Advisers, LLC Subadviser John Hancock Asset Management Portfolio Managers Kai-Kong Chay, CFA Senior Portfolio Manager Joined Fund team in 2011 Began career in 1997 Terrace Pak Hing Chum, MBA, CFA, CAIA Portfolio Manager Managed Fund since 2008 Began career in 1994 Ronald Chan, CFA Senior Portfolio Manager Joined Fund team in 2011 Began career in 1995 KEY STATISTICS Class A Inception Total net assets (mil) Portfolio turnover6 Number of holdings RISK MEASURES VS. BENCHMARK Benchmark MSCI Golden Dragon Index Beta7 Standard deviation8 Fund Benchmark 21.06 20.34 0.97 6/9/05 $65.8 145% 68
SECTOR COMPOSITION5 Financials Information Technology Energy Consumer Discretionary Telecommunication Services Industrials Materials Utilities Consumer Staples Health Care WHAT YOU SHOULD KNOW BEFORE INVESTING 33.28% 21.65% 9.37% 8.70% 7.44% 6.89% 3.99% 3.97% 3.11% 0.93%
Foreign investing, especially in emerging markets, has additional risks such as currency and market volatility and political and social instability. Investments in the Greater China region are subject to special risks, such as less developed or less efficient trading markets, restrictions on monetary repatriation and possible seizure, nationalization or expropriation of assets. The Fund may invest in IPOs, which are frequently volatile in price and may lead to increased portfolio turnover. The prices of medium and small company stocks can change more frequently and dramatically than those of large company stocks. The Fund may invest its assets in a small number of issuers. Performance could suffer significantly from adverse events affecting these issuers. Hedging and other strategic transactions may increase volatility of a fund and, if the transaction is not successful, could result in a significant loss. For additional information on these and other risk considerations, please see the Funds prospectus.
A funds 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 Funds at 1-800-225-5291 or visit our Web site at www.jhfunds.com. Please read the prospectus carefully before investing or sending money.
Visit us at www.jhfunds.com
5 Listed holdings do not represent all of the holdings in the Fund. Holdings are subject to change at any time and are not recommendations to buy or sell any security. Characteristics are expressed as a percentage of net assets and exclude cash and cash equivalents. 6 The portfolio turnover is from the Funds most current annual report and is subject to change. Please see the annual report for further details regarding the turnover ratio. 7 Source: Morningstar, Inc. Beta is the market risk of the Funds Class A shares and is based on 3-year performance as of 9/30/12. By definition, the beta of the market (as represented by the stated benchmark) is 1.00. Accordingly, a fund with a 1.10 beta is theoretically expected to have 10% more volatility than the market. 8 Source: Morningstar, Inc. Based on Class A shares at NAV for the 3-year period as of 9/30/12. Standard deviation measures performance fluctuation generally, the higher the standard deviation, the greater the expected volatility of returns. These measures of past risk are not completely or necessarily representative of future risk and cannot predict a funds performance.
57
QFG.indb 57
11/1/2012 11:16:16 AM
John Hancock
A JAIAX
B JAIBX
C JAICX
I JAIIX
AVERAGE ANNUAL TOTAL RETURNS2 Without maximum sales charge Class A MSCI EAFE Index3
LARGE MEDIUM SMALL
I 2012
10-year
MARKET CAP
With 5% maximum sales charge Class A The Portfolios net annual operating expense ratio as of the current prospectus is 1.61%. The gross annual operating expense ratio of 2.26% is reduced due to a contractual expense reimbursement which is in effect until at least 6/30/13 and may be terminated by the Adviser any time after this date. Expenses for other share classes will vary, which will affect returns. Performance figures assume that all distributions are reinvested. Performance quoted without sales charges would be reduced if the sales charges were applied. For performance data current to the most recent month end, contact your financial professional or call John Hancock Funds at 1-800-225-5291. The performance data contained within this material represents past performance, which does not guarantee future results. The return and principal value of an investment will fluctuate, so that shares, when redeemed, may be worth more or less than the original cost. The Portfolios current performance may be higher or lower and is subject to substantial changes. GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT2 Class A without sales charge 12/29/06 to 9/30/12
Q3
VALUE
BLEND GROWTH
YEAR-BY-YEAR TOTAL RETURNS2 (%) CLASS A WITHOUT SALES CHARGE 2002 2003 2004 2005 2006 0.104 2007 9.60 2008 45.17 2009 37.62 2010 13.29 2011 14.61
58
1 The Morningstar Style Box reveals the Portfolios investment style. For equity funds, the vertical axis shows the market capitalization of the stocks owned and the horizontal axis shows investment style (value, blend or growth). 2 Performance results reflect any expense reductions. Without these reductions, performance would have been less favorable. 3 The MSCI EAFE Index is a free float-adjusted market-capitalization index that is designed to measure developed market equity performance, excluding the U.S. and Canada. The index consists of 21 developed market country indexes. The total return for this index is calculated gross of foreign withholding tax on dividends. It is not possible to invest directly in an index. 4 Results since inception (not annualized).
QFG.indb 58
11/1/2012 11:16:17 AM
Q3
I 2012
PORTFOLIO MANAGEMENT Investment Adviser John Hancock Investment Management Services, LLC Subadviser John Hancock Asset Management Portfolio Managers Robert Boyda Portfolio Manager since 2010 Began career in 1979 Steven Medina, CFA Portfolio Manager since 2010 Began career in 1994 Steve Orlich Portfolio Manager since 2006 Began career in 1979 PORTFOLIO SUMMARY Class A Inception Number of underlying funds Number of unique managers Total net assets (mil) Portfolio turnover7 RISK MEASURES VS. BENCHMARK Benchmark MSCI EAFE Index Beta8 Standard deviation9 Fund Benchmark 19.57 19.83 1.01 12/29/06 9 8 $15.5 18%
Foreign investing, especially in emerging markets, has additional risks, such as currency and market volatility and political and social instability. The Portfolios performance depends on the Advisers skill in determining the strategic asset class allocations, the mix of underlying funds and the performance of those underlying funds. The underlying funds performance may be lower than the performance of the asset class which they were selected to represent. The Portfolio is subject to the same risks as the underlying funds in which it invests, which include the following: stocks and bonds can decline due to adverse issuer, market, regulatory or economic developments; foreign investing, especially in emerging markets, has additional risks, such as currency and market volatility and political and social instability; and the securities of small-capitalization companies are subject to higher volatility than larger, more established companies. For additional information on these and other risk considerations, please see the Portfolios prospectus.
A portfolios investment objectives, risks, charges and expenses should be considered carefully before investing. The prospectus contains this and other important information about the Portfolio. To obtain a prospectus, contact your financial professional, call John Hancock Funds at 1-800-225-5291 or visit our Web site at www.jhfunds.com. Please read the prospectus carefully before investing or sending money.
Visit us at www.jhfunds.com
5 Class A, B and C shares of the International Allocation Portfolio were newly organized in December 2006. Assets are as of 6/30/12. 6 Listed holdings do not represent all of the holdings in the Portfolio. Holdings are subject to change at any time and are not recommendations to buy or sell any security. Characteristics are expressed as a percentage of net assets and exclude cash and cash equivalents. 7 The portfolio turnover is from the Portfolios most current annual report and is subject to change. Please see the annual report for further details regarding the turnover ratio. 8 Source: Morningstar, Inc. Beta is the market risk of the Funds Class A shares and is based on 3-year performance as of 9/30/12. By definition, the beta of the market (as represented by the stated benchmark) is 1.00. Accordingly, a fund with a 1.10 beta is theoretically expected to have 10% more volatility than the market. 9 Source: Morningstar, Inc. Based on Class A shares at NAV for the 3-year period as of 9/30/12. Standard deviation measures performance fluctuation generally, the higher the standard deviation, the greater the expected volatility of returns. These measures of past risk are not completely or necessarily representative of future risk and cannot predict a funds performance.
59
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11/1/2012 11:16:20 AM
John Hancock
AVERAGE ANNUAL TOTAL RETURNS2 Without maximum sales charge Class A MSCI EAFE Index3
LARGE MEDIUM SMALL
I 2012
10-year
MARKET CAP
With 5% maximum sales charge Class A 0.14% 7.11% On 6/9/06, John Hancock International Core Fund acquired the assets of the GMO International Disciplined Equity Fund (predecessor fund). Returns of the predecessor funds Class III shares, first offered on 9/16/05, have been recalculated to apply the gross fees and expenses of Class A, first offered on 6/12/06. The Funds total annual operating expense ratio as of the current prospectus is 1.58%. Expenses for other share classes will vary, which will affect returns. Performance figures assume that all distributions are reinvested. Performance quoted without sales charges would be reduced if the sales charges were applied. For performance data current to the most recent month end, contact your financial professional or call John Hancock Funds at 1-800-225-5291. The performance data contained within this material represents past performance, which does not guarantee future results. The return and principal value of an investment will fluctuate, so that shares, when redeemed, may be worth more or less than the original cost. The Funds current performance may be higher or lower and is subject to substantial changes. GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT2 Class A without sales charge 9/16/05 to 9/30/12
Q3
VALUE
BLEND GROWTH
YEAR-BY-YEAR TOTAL RETURNS2 (%) CLASS A WITHOUT SALES CHARGE 2002 2003 2004 2005 4.334 2006 24.14 2007 10.97 2008 39.21 2009 18.20 2010 9.11 2011 10.52
60
1 The Morningstar Style Box reveals the Funds investment style. For equity funds, the vertical axis shows the market capitalization of the stocks owned and the horizontal axis shows investment style (value, blend or growth). 2 Performance results reflect any expense reductions. Without these reductions, performance would have been less favorable. 3 The MSCI EAFE Index is a free float-adjusted market-capitalization index that is designed to measure developed market equity performance, excluding the U.S. and Canada. The index consists of 21 developed market country indexes. The total return for this index is calculated gross of foreign withholding tax on dividends. It is not possible to invest directly in an index. 4 Results since inception (not annualized).
QFG.indb 60
11/1/2012 11:16:22 AM
Q3
I 2012
PORTFOLIO MANAGEMENT Investment Adviser John Hancock Investment Management Services, LLC Subadviser Grantham, Mayo, Van Otterloo & Co. LLC The Fund is managed by a team of portfolio managers at Grantham, Mayo, Van Otterloo & Co. LLC. KEY STATISTICS Class A Inception Total net assets (mil) Portfolio turnover6 Number of holdings RISK MEASURES VS. BENCHMARK Japan United Kingdom France Germany Spain Australia Italy Canada Switzerland Netherlands 23.51% 21.65% 10.57% 7.10% 5.92% 5.75% 5.06% 3.06% 2.26% 2.14% Benchmark MSCI EAFE Index Beta7 Standard deviation8 Fund Benchmark 19.45 19.54 0.99 6/12/06 $1,488.7 42% 351
Foreign investing, especially in emerging markets, has additional risks, such as currency and market volatility and political and social instability. Hedging and other strategic transactions may increase volatility of a fund and, if the transaction is not successful, could result in a significant loss. For additional information on these and other risk considerations, please see the Funds prospectus.
A funds 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 Funds at 1-800-225-5291 or visit our Web site at www.jhfunds.com. Please read the prospectus carefully before investing or sending money.
Visit us at www.jhfunds.com
5 Listed holdings do not represent all of the holdings in the Fund. Holdings are subject to change at any time and are not recommendations to buy or sell any security. Characteristics are expressed as a percentage of net assets and exclude cash and cash equivalents. 6 The portfolio turnover is from the Funds most current annual report and is subject to change. Please see the annual report for further details regarding the turnover ratio. 7 Source: Morningstar, Inc. Beta is the market risk of the Funds Class A shares and is based on 3-year performance as of 9/30/12. By definition, the beta of the market (as represented by the stated benchmark) is 1.00. Accordingly, a fund with a 1.10 beta is theoretically expected to have 10% more volatility than the market. 8 Source: Morningstar, Inc. Based on Class A shares at NAV for the 3-year period as of 9/30/12. Standard deviation measures performance fluctuation generally, the higher the standard deviation, the greater the expected volatility of returns. These measures of past risk are not completely or necessarily representative of future risk and cannot predict a funds performance.
61
QFG.indb 61
11/1/2012 11:16:26 AM
John Hancock
AVERAGE ANNUAL TOTAL RETURNS2 Without maximum sales charge Class A MSCI EAFE Growth Index3 MSCI EAFE Index3 With 5% maximum sales charge Class A 1-year 19.67% 15.22% 14.33% 13.68% 3-year 6.88% 4.68% 2.59% 5.07% 5-year 2.65% 3.88% 4.77% 3.64% 10-year Life of Fund (6/12/06) 3.02% 1.99% 1.02% 2.19%
I 2012
Q3
MARKET CAP
VALUE
BLEND GROWTH
HHH
The Funds net annual operating expense ratio as of the current prospectus is 1.60%. The gross annual operating expense ratio of 1.66% is reduced due to a contractual expense reimbursement which is in effect until at least 6/30/13 and may be terminated by the Adviser any time after this date. Expenses for other share classes will vary, which will affect returns. Performance figures assume that all distributions are reinvested. Performance quoted without sales charges would be reduced if the sales charges were applied. For performance data current to the most recent month end, contact your financial professional or call John Hancock Funds at 1-800-225-5291. The performance data contained within this material represents past performance, which does not guarantee future results. The return and principal value of an investment will fluctuate, so that shares, when redeemed, may be worth more or less than the original cost. The Funds current performance may be higher or lower and is subject to substantial changes. GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT2 Class A without sales charge 6/12/06 to 9/30/12
The Fund was rated 3 stars for the 3and 5-year periods. Load-waived rating
HHHH
The Fund was rated 4 stars for the 3and 5-year periods. Overall rating is based on 3- and 5-year Morningstar Risk-Adjusted Returns and accounts for variation in a funds monthly performance. The Fund was rated out of 218 and 173 funds for the 3- and 5-year periods, respectively. The overall rating includes effects of sales charges, loads and redemption fees, while the load-waived rating does not. Load-waived ratings for Class A shares should only be considered by investors who are not subject to a front-end sales charge. Contact your financial professional to determine whether you are eligible to purchase the Class A share without paying the front load. Other share classes may be rated differently.*
YEAR-BY-YEAR TOTAL RETURNS2 (%) CLASS A WITHOUT SALES CHARGE 2002 2003 2004 2005 2006 21.314 2007 11.83 2008 37.48 2009 21.08 2010 13.23 2011 8.61
62
1 The Morningstar Style Box reveals the Funds investment style. For equity funds, the vertical axis shows the market capitalization of the stocks owned and the horizontal axis shows investment style (value, blend or growth). 2 Performance results reflect any expense reductions. Without these reductions, performance would have been less favorable. 3 The MSCI EAFE Growth Index is a free float-adjusted market-capitalization index that is designed to measure the performance of growth- oriented developed market stocks within Europe, Australasia and the Far East. The total return for this index is calculated gross of foreign withholding tax on dividends. The MSCI EAFE Index is a free float-adjusted market-capitalization index that is designed to measure developed market equity performance within Europe, Australasia and the Far East. Both indexes consist of 21 developed market country indexes and their total return is calculated gross of foreign withholding tax on dividends. It is not possible to invest directly in an index.
QFG.indb 62
11/1/2012 11:16:27 AM
Q3
I 2012
PORTFOLIO MANAGEMENT Investment Adviser John Hancock Investment Management Services, LLC Subadviser Grantham, Mayo, Van Otterloo & Co. LLC The Fund is managed by a team of portfolio managers at Grantham, Mayo, Van Otterloo & Co. LLC. KEY STATISTICS Class A Inception Total net assets (mil) Portfolio turnover
6
TEN LARGEST COUNTRIES5 United Kingdom Japan Switzerland Germany France Australia Denmark Canada Sweden Netherlands WHAT YOU SHOULD KNOW BEFORE INVESTING 23.20% 21.82% 9.47% 7.16% 5.22% 3.88% 3.47% 3.12% 2.94% 2.87%
Benchmark MSCI EAFE Growth Index Beta7 Standard deviation8 Fund Benchmark 17.88 19.06 0.93
Foreign investing, especially in emerging markets, has additional risks, such as currency and market volatility and political and social instability. Growth stocks may be subject to greater price fluctuations because their prices tend to place greater emphasis on earnings expectations. Hedging and other strategic transactions may increase volatility of a fund and, if the transaction is not successful, could result in a significant loss. For additional information on these and other risk considerations, please see the Funds prospectus.
A funds 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 Funds at 1-800-225-5291 or visit our Web site at www.jhfunds.com. Please read the prospectus carefully before investing or sending money.
Visit us at www.jhfunds.com
5 Listed holdings do not represent all of the holdings in the Fund. Holdings are subject to change at any time and are not recommendations to buy or sell any security. Characteristics are expressed as a percentage of net assets and exclude cash and cash equivalents. 6 The portfolio turnover is from the Funds most current annual report and is subject to change. Please see the annual report for further details regarding the turnover ratio. 7 Source: Morningstar, Inc. Beta is the market risk of the Funds Class A shares and is based on 3-year performance as of 9/30/12. By definition, the beta of the market (as represented by the stated benchmark) is 1.00. Accordingly, a fund with a 1.10 beta is theoretically expected to have 10% more volatility than the market. 8 Source: Morningstar, Inc. Based on Class A shares at NAV for the 3-year period as of 9/30/12. Standard deviation measures performance fluctuation generally, the higher the standard deviation, the greater the expected volatility of returns. These measures of past risk are not completely or necessarily representative of future risk and cannot predict a funds performance. * For each fund with at least a 3-year history, Morningstar calculates a Morningstar Rating based on a Morningstar Risk-Adjusted Return that accounts for variation in a funds monthly performance (including effects of sales charges, loads and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category, the next 22.5%, 35%, 22.5% and the bottom 10% receive 5, 4, 3, 2 or 1 star(s), respectively. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) Past performance is no guarantee of future results.
63
QFG.indb 63
11/1/2012 11:16:32 AM
John Hancock
A JIEAX
I JIEEX
AVERAGE ANNUAL TOTAL RETURNS2 Without maximum sales charge Class A MSCI World ex-USA Index3
LARGE MEDIUM SMALL
I 2012
MARKET CAP
With 5% maximum sales charge Class A On 2/11/11, John Hancock International Value Equity Fund acquired the assets of the Optique International Value Fund (predecessor fund). Returns of the predecessor funds Investor Class shares, first offered on 3/31/98, have been recalculated to apply the gross fees and expenses of Class A, first offered on 2/14/11. The Funds net annual operating expense ratio as of the current prospectus is 1.60%. The gross annual operating expense ratio of 4.35% is reduced due to a contractual expense reimbursement which is in effect until at least 6/30/13 and may be terminated by the Adviser any time after this date. Expenses for other share classes will vary, which will affect returns. Performance figures assume that all distributions are reinvested. Performance quoted without sales charges would be reduced if the sales charges were applied. For performance data current to the most recent month end, contact your financial professional or call John Hancock Funds at 1-800-225-5291. The performance data contained within this material represents past performance, which does not guarantee future results. The return and principal value of an investment will fluctuate, so that shares, when redeemed, may be worth more or less than the original cost. The Funds current performance may be higher or lower and is subject to substantial changes. GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT2 Class A without sales charge 3/31/98 to 9/30/12
Q3
VALUE
BLEND GROWTH
HHHH
(out of 323 Foreign Large Value funds)
The Fund was rated 4 stars, 4 stars and 3 stars for the 3-, 5- and 10-year periods, respectively. Load-waived rating
HHHH
The Fund was rated 4 stars for the 3-, 5- and 10-year periods. Overall rating is based on 3-, 5- and 10-year Morningstar Risk-Adjusted Returns and accounts for variation in a funds monthly performance. The Fund was rated out of 323, 257 and 146 funds for the 3-, 5- and 10-year periods, respectively. The overall rating includes effects of sales charges, loads and redemption fees, while the load-waived rating does not. Load-waived ratings for Class A shares should only be considered by investors who are not subject to a front-end sales charge. Contact your financial professional to determine whether you are eligible to purchase the Class A share without paying the front load. Other share classes may be rated differently.*
YEAR-BY-YEAR TOTAL RETURNS2 (%) CLASS A WITHOUT SALES CHARGE 2002 5.48 2003 36.57 2004 22.56 2005 11.25 2006 25.65 2007 6.30 2008 43.63 2009 38.29 2010 14.40 2011 13.29
64
1 The Morningstar Style Box reveals the Funds investment style. For equity funds, the vertical axis shows the market capitalization of the stocks owned and the horizontal axis shows investment style (value, blend or growth). 2 Performance results reflect any expense reductions. Without these reductions, performance would have been less favorable. In October 2011, the adviser made a voluntary payment to the Fund of $6,950.00, or approximately $0.018 per share. Without this payment, performance would have been lower. 3 The MSCI World ex-USA Index is a free float-adjusted market-capitalization weighted index that is designed to measure the equity market performance of developed markets outside the United States. The total return for this index is calculated gross of foreign withholding tax on dividends. It is not possible to invest directly in an index.
QFG.indb 64
11/1/2012 11:16:33 AM
Q3
I 2012
PORTFOLIO MANAGEMENT Investment Adviser John Hancock Investment Management Services, LLC Subadviser John Hancock Asset Management Portfolio Managers Wendell Perkins, CFA Senior Portfolio Manager Managed Fund since it began in 1998 Began career in 1985 Margaret McKay, CFA Portfolio Manager Joined Fund team in 2007 Began career in 1992 Edward Maraccini, CFA Portfolio Manager Joined Fund team in 2007 Began career in 1995 KEY STATISTICS Class A Inception Total net assets (mil) Portfolio turnover
5
TEN LARGEST COUNTRIES4 Japan United Kingdom Germany Canada Australia France Hong Kong Switzerland Netherlands China WHAT YOU SHOULD KNOW BEFORE INVESTING 16.43% 16.32% 8.18% 7.76% 7.16% 6.18% 5.30% 4.50% 3.60% 3.16%
Foreign investing, especially in emerging markets, has additional risks, such as currency and market volatility and political and social instability. Value stocks may not increase in price as anticipated or may decline further in value. Hedging and other strategic transactions may increase volatility of a fund and, if the transaction is not successful, could result in a significant loss. The prices of medium company stocks can change more frequently and dramatically than those of large company stocks. For additional information on these and other risk considerations, please see the Funds prospectus.
A funds 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 Funds at 1-800-225-5291 or visit our Web site at www.jhfunds.com. Please read the prospectus carefully before investing or sending money.
Visit us at www.jhfunds.com
4 Listed holdings do not represent all of the holdings in the Fund. Holdings are subject to change at any time and are not recommendations to buy or sell any security. Characteristics are expressed as a percentage of net assets and exclude cash and cash equivalents. 5 The portfolio turnover is from the Funds most current annual report and is subject to change. Please see the annual report for further details regarding the turnover ratio. 6 Source: Morningstar, Inc. Beta is the market risk of the Funds Class A shares and is based on 3-year performance as of 9/30/12. By definition, the beta of the market (as represented by the stated benchmark) is 1.00. Accordingly, a fund with a 1.10 beta is theoretically expected to have 10% more volatility than the market. 7 Source: Morningstar, Inc. Based on Class A shares at NAV for the 3-year period as of 9/30/12. Standard deviation measures performance fluctuation generally, the higher the standard deviation, the greater the expected volatility of returns. These measures of past risk are not completely or necessarily representative of future risk and cannot predict a funds performance. * For each fund with at least a 3-year history, Morningstar calculates a Morningstar Rating based on a Morningstar Risk-Adjusted Return that accounts for variation in a funds monthly performance (including effects of sales charges, loads and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category, the next 22.5%, 35%, 22.5% and the bottom 10% receive 5, 4, 3, 2 or 1 star(s), respectively. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) Past performance is no guarantee of future results.
65
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11/1/2012 11:16:38 AM
John Hancock
A JAAAX
C JAACX
I JAAIX
AVERAGE ANNUAL TOTAL RETURNS2 Without maximum sales charge 1-year Class A 8.95% MSCI World Index3 22.32% Barclays Capital U.S. Aggregate Bond Index3 5.16% Custom benchmark3 With 5% maximum sales charge Class A 14.68% 3.50% 3-year 7.03% 8.07% 6.19% 7.65% 5.21% 5-year 10-year Life of Fund (1/2/09) 14.30% 13.07% 6.49% 10.62% 12.75%
2012
Q3
MARKET CAP
VALUE
BLEND GROWTH
HHHH
(out of 118 Multialternative funds)
The Fund was rated 4 stars for the 3-year period. Load-waived rating
Performance information prior to 12/20/10 reflects an allocation to a different mix of underlying funds and would have been different if the Fund had been allocated to its current mix of underlying funds. The Funds net annual operating expense ratio as of the current prospectus is 1.65%. The gross annual operating expense ratio of 2.70% is reduced due to a contractual expense reimbursement, which is in effect until at least 12/31/12 and may be terminated by the Adviser any time after this date. Expenses for other share classes will vary, which will affect returns. Performance figures assume that all distributions are reinvested. Performance quoted without sales charges would be reduced if the sales charges were applied. For performance data current to the most recent month end, contact your financial professional or call John Hancock Funds at 1-800-225-5291. The performance data contained within this material represents past performance, which does not guarantee future results. The return and principal value of an investment will fluctuate, so that shares, when redeemed, may be worth more or less than the original cost. The Funds current performance may be higher or lower and is subject to substantial changes. GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT2 Class A without sales charge 1/2/09 to 9/30/12
HHHHH
(out of 118 Multialternative funds)
The Fund was rated 5 stars for the 3-year period. Overall rating is based on 3-year Morningstar Risk-Adjusted Returns and accounts for variation in a funds monthly performance. The Fund was rated out of 118 funds for the 3-year period. The overall rating includes effects of sales charges, loads and redemption fees, while the load-waived rating does not. Load-waived ratings for Class A shares should only be considered by investors who are not subject to a front-end sales charge. Contact your financial professional to determine whether you are eligible to purchase the Class A share without paying the front load. Other share classes may be rated differently.* YEAR-BY-YEAR TOTAL RETURNS2 (%) CLASS A WITHOUT SALES CHARGE 2002
1 2 3
2003
2004
2005
2006
2007
2008
2009 41.01
2010 11.98
2011 2.36
66
The Morningstar Style Box reveals the Funds investment style. For equity funds, the vertical axis shows the market capitalization of the stocks owned and the horizontal axis shows investment style (value, blend or growth). Performance results reflect any expense reductions. Without these reductions, performance would have been less favorable. The MSCI World Index is an unmanaged index of freely traded stocks of foreign companies. The Barclays Capital U.S. Aggregate Bond Index is comprised of government securities, asset-backed securities and corporate securities to simulate the universe of bonds in the market. Custom Benchmark consists of 55% MSCI World Index and 45% Barclays Capital U.S. Aggregate Bond Index. It is not possible to invest directly in an index.
QFG.indb 66
11/1/2012 11:16:39 AM
Q3
I 2012
PORTFOLIO MANAGEMENT Investment Adviser John Hancock Investment Management Services, LLC Subadviser John Hancock Asset Management Portfolio Managers Robert Boyda Portfolio Manager since 2010 Began career in 1979 Steven Medina, CFA Portfolio Manager since 2010 Began career in 1994 Steve Orlich Portfolio Manager since 2008 Began career in 1979 PORTFOLIO SUMMARY Class A Inception Total net assets (mil) Portfolio turnover6 1/2/09 $257.9 90%
The Funds performance depends on the Advisers skill in determining the strategic asset class allocations, the mix of underlying funds and the performance of those underlying funds. The underlying funds performance may be lower than the performance of the asset class which they were selected to represent. Owning an ETF generally reflects the risks of owning the underlying securities it is designed to track, which may cause a lack of liquidity, more volatility and increased management fees. The Fund is subject to the same risks as the underlying funds in which it invests, which include the following: stocks and bonds can decline due to adverse issuer, market, regulatory or economic developments; foreign investing, especially in emerging markets, has additional risks, such as currency and market volatility and political and social instability; the securities of small-capitalization companies are subject to higher volatility than larger, more established companies; and high-yield bonds are subject to additional risks, such as increased risk of default. The underlying funds may use currency transactions to seek to achieve gains in the Fund. If currencies do not perform as expected, the Fund could have significant losses which exceed the amount invested in the currency instruments. For additional information on these and other risk considerations, please see the Funds prospectus.
A funds 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 Funds at 1-800-225-5291 or visit our Web site at www.jhfunds.com. Please read the prospectus carefully before investing or sending money.
Visit us at www.jhfunds.com
4 Class A shares of the Alternative Asset Allocation Fund were newly organized in December 2008. Assets are as of 6/30/12. 5 Listed holdings do not represent all of the holdings in the Fund. Holdings are subject to change at any time and are not recommendations to buy or sell any security. Characteristics are expressed as a percentage of net assets and exclude cash and cash equivalents. 6 The portfolio turnover is from the Funds most current annual report and is subject to change. Please see the annual report for further details regarding the turnover ratio. * For each fund with at least a 3-year history, Morningstar calculates a Morningstar Rating based on a Morningstar Risk-Adjusted Return that accounts for variation in a funds monthly performance (including effects of sales charges, loads and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category, the next 22.5%, 35%, 22.5% and the bottom 10% receive 5, 4, 3, 2 or 1 star(s), respectively. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) Past performance is no guarantee of future results.
67
QFG.indb 67
11/1/2012 11:16:45 AM
John Hancock
AVERAGE ANNUAL TOTAL RETURNS Without maximum sales charge Class A Citigroup 1-Month U.S. Treasury Bill Index2 With 3% maximum sales charge Class A 4.05% 4.92% The Funds total annual operating expense ratio as of the current prospectus is 1.56%. Expenses for other share classes will vary, which will affect returns. Performance figures assume that all distributions are reinvested. Performance quoted without sales charges would be reduced if the sales charges were applied. For performance data current to the most recent month end, contact your financial professional or call John Hancock Funds at 1-800-225-5291. The performance data contained within this material represents past performance, which does not guarantee future results. The return and principal value of an investment will fluctuate, so that shares, when redeemed, may be worth more or less than the original cost. The Funds current performance may be higher or lower and is subject to substantial changes. GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT Class A without sales charge 8/2/10 to 9/30/12 1-year 1.07% 0.04% 3-year 5-year 10-year Life of Fund (8/2/10) 3.58% 3.82%
Q3
I
Why John Hancock Funds?
u Extensive Research, Proven Managers Our investment team conducts ongoing research to identify proven managers who have specialized expertise in their respective asset class or strategy and who meet our requirements for performance, style consistency and risk management. As a result, we give you access to an impressive roster of institutional asset managers not typically available to retail investors. u A Focus on Your Success We are committed to you and your success. Our ultimate objective is to help you achieve your long-term financial goals. u A Brand You Know and Trust John Hancock has been helping individuals and institutions build and protect wealth since 1862. At a time when trust and confidence are at a premium, we are proud to offer a full range of investment strategies that carry one of Americas strongest and most recognized corporate brands.
2012
2003
2004
2005
2006
2007
2008
2009
2010 9.303
2011 1.32
68
Net losses on currency transactions will reduce positive absolute returns. The Citigroup 1-Month U.S. Treasury Bill Index is a market value-weighted index of public obligators of the U.S. Treasury with maturities of one month. It is not possible to invest directly in an index. Results since inception (not annualized).
QFG.indb 68
11/1/2012 11:16:47 AM
Q3
I 2012
PORTFOLIO MANAGEMENT Investment Adviser John Hancock Investment Management Services, LLC Subadviser First Quadrant LP Portfolio Managers Ken Ferguson, Ph.D. Portfolio Manager Managed the Fund since it began in 2010 Joined firm in 1994 Dori Levanoni Portfolio Manager Managed the Fund since it began in 2010 Joined firm in 1991 Jeppe Ladekarl Portfolio Manager Managed the Fund since 2012 Joined firm in 2009 KEY STATISTICS Class A Inception Total net assets (mil) 8/2/10 $1,013.6
The Funds assets are exposed to both short (unfavored) and long (favored) currency positions.
Position (%) Notional
Unfavored Currencies
Favored Currencies
The Fund will use currency transactions to seek to achieve gains in the Fund. If currencies do not perform as expected, the Fund could have significant losses which exceed the amount invested in the currency instruments. Fixed-income investments are subject to interest-rate and credit risk; their value will normally decline as interest rates rise or if the creditor is unable or unwilling to make principal or interest payments. Foreign investing, especially in emerging markets, has additional risks, such as currency and market volatility and political and social instability. The use of hedging and derivatives transactions could produce disproportionate gains or losses and may increase volatility and costs. For additional information on these and other risk considerations, please see the Funds prospectus.
A funds 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 Funds at 1-800-225-5291 or visit our Web site at www.jhfunds.com. Please read the prospectus carefully before investing or sending money.
Visit us at www.jhfunds.com
4 Currency allocations are as of 8/31/12 and are subject to change at any time.
69
QFG.indb 69
11/1/2012 11:16:51 AM
John Hancock
A FIDAX
B FIDBX
C FIDCX
AVERAGE ANNUAL TOTAL RETURNS2 Without maximum sales charge Class A S&P 500 Financial Index3 S&P 500 Index3 With 5% maximum sales charge Class A 1-year 3-year 5-year 10-year 45.78% 6.68% 5.03% 3.67% 34.81% 3.07% 12.60% 0.40% 30.20% 13.20% 1.05% 8.01% 38.43% 4.89% 5.99% 3.14% Life of Fund (3/14/96) 5.64% 4.05% 6.94% 5.31%
2012
Q3
MARKET CAP
VALUE
BLEND GROWTH
The Funds total annual operating expense ratio as of the current prospectus is 1.41%. Expenses for other share classes will vary, which will affect returns. Performance figures assume that all distributions are reinvested. Performance quoted without sales charges would be reduced if the sales charges were applied. For performance data current to the most recent month end, contact your financial professional or call John Hancock Funds at 1-800-225-5291. The performance data contained within this material represents past performance, which does not guarantee future results. The return and principal value of an investment will fluctuate, so that shares, when redeemed, may be worth more or less than the original cost. The Funds current performance may be higher or lower and is subject to substantial changes. GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT2 Class A without sales charge 3/14/96 to 9/30/12
YEAR-BY-YEAR TOTAL RETURNS2 (%) CLASS A WITHOUT SALES CHARGE 2002 16.40
1 2 3
2003 26.43
2004 9.75
2005 9.97
2006 17.48
2007 4.39
2008 47.66
2009 25.81
2010 10.82
2011 14.38
70
The Morningstar Style Box reveals the Funds investment style. For equity funds, the vertical axis shows the market capitalization of the stocks owned and the horizontal axis shows investment style (value, blend or growth). Performance results reflect any expense reductions. Without these reductions, performance would have been less favorable. The S&P 500 Financial Index is an unmanaged index designed to measure the financial sector of the S&P 500 Index. The S&P 500 Index is an unmanaged index that includes 500 widely traded common stocks. It is not possible to invest directly in an index.
QFG.indb 70
11/1/2012 11:16:52 AM
Q3
I 2012
PORTFOLIO MANAGEMENT Investment Adviser John Hancock Advisers, LLC Subadviser John Hancock Asset Management Portfolio Managers Lisa Welch Senior Portfolio Manager Joined Fund team in 1998 Began career in 1986 Susan Curry Portfolio Manager Joined Fund team in 2004 Began career in 1993 KEY STATISTICS Class A Inception Total net assets (mil) Portfolio turnover6 Number of holdings 3/14/96 $275.5 50% 71
RISK MEASURES VS. BENCHMARK Benchmark S&P 500 Financial Index Beta7 1.29 Standard deviation8 Fund Benchmark 21.34 21.24
Investments concentrated in one sector may fluctuate more widely than investments diversified across sectors. Foreign investing, especially in emerging markets, has additional risks, such as currency and market volatility and political and social instability. The prices of medium and small company stocks can change more frequently and dramatically than those of large company stocks. Hedging and other strategic transactions may increase volatility of a fund and, if the transaction is not successful, could result in a significant loss. For additional information on these and other risk considerations, please see the Funds prospectus.
A funds 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 Funds at 1-800-225-5291 or visit our Web site at www.jhfunds.com. Please read the prospectus carefully before investing or sending money.
Visit us at www.jhfunds.com
4 Source: Investment Company Institute. Retirement Research, April 2012. 5 Listed holdings do not represent all of the holdings in the Fund. Holdings are subject to change at any time and are not recommendations to buy or sell any security. Characteristics are expressed as a percentage of net assets and exclude cash and cash equivalents. 6 The portfolio turnover is from the Funds most current annual report and is subject to change. Please see the annual report for further details regarding the turnover ratio. 7 Source: Morningstar, Inc. Beta is the market risk of the Funds Class A shares and is based on 3-year performance as of 9/30/12. By definition, the beta of the market (as represented by the stated benchmark) is 1.00. Accordingly, a fund with a 1.10 beta is theoretically expected to have 10% more volatility than the market. 8 Source: Morningstar, Inc. Based on Class A shares at NAV for the 3-year period as of 9/30/12. Standard deviation measures performance fluctuation generally, the higher the standard deviation, the greater the expected volatility of returns. These measures of past risk are not completely or necessarily representative of future risk and cannot predict a funds performance.
71
QFG.indb 71
11/1/2012 11:16:57 AM
John Hancock
A JHAAX
C JHACX
I JHAIX
CUMULATIVE TOTAL RETURNS1 Without maximum sales charge Class A BofA ML USD 1-Month LIBID Average2 MSCI World Index2 With 5% maximum sales charge Class A 1-year 3-year 5-year 10-year Life of Fund (12/19/11) 6.80% 0.13% 17.60% 1.46%
Q3
2012
The Funds net annual operating expense ratio as of the current prospectus is 1.95%. The gross annual operating expense ratio of 1.96% is reduced due to a contractual expense reimbursement, which is in effect until at least 12/31/12 and may be terminated by the Adviser any time after this date. Expenses for other share classes will vary, which will affect returns. Performance figures assume that all distributions are reinvested. Performance quoted without sales charges would be reduced if the sales charges were applied. For performance data current to the most recent month end, contact your financial professional or call John Hancock Funds at 1-800-225-5291. The performance data contained within this material represents past performance, which does not guarantee future results. The return and principal value of an investment will fluctuate, so that shares, when redeemed, may be worth more or less than the original cost. The Funds current performance may be higher or lower and is subject to substantial changes.
1 2
72
Performance results reflect any expense reductions. Without these reductions, performance would have been less favorable. The Bank of America Merrill Lynch U.S. Dollar 1-Month LIBID Average Index tracks the performance of a basket of synthetic assets paying LIBID to a stated maturity. The index purchases a new instrument each day, priced at par, having exactly its stated maturity and with a coupon equal to that days fixing rate. All issues are held to maturity. Therefore, each day the index is comprised of a basket of securities. The index is not marked to market. The returns of the index represent the accrued income generated by the equally weighted average of all the coupons in the basket for a given day. The MSCI World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. It is not possible to invest directly in an index.
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11/1/2012 11:16:58 AM
Q3
I 2012
PORTFOLIO MANAGEMENT Investment Adviser John Hancock Investment Management Services, LLC Subadviser Standard Life Investments The Fund is managed by a team of portfolio managers at Standard Life Investments. KEY STATISTICS Class A Inception Total net assets (mil) Number of holdings 12/19/11 $1,138.0 692
Absolute return funds are not designed to outperform stocks and bonds in strong markets and there is no guarantee of positive returns. They employ certain techniques which are intended to reduce risk and volatility in the portfolio and provide protection against a decline in the Funds assets. However, there is no guarantee that any investment strategy will be successful or that the Funds objectives will be achieved. The use of hedging and derivatives transactions could produce disproportionate gains or losses and may increase volatility and costs. The issuer or grantor of a security, or counterparty to a transaction, may be unable or unwilling to make principal, interest or settlement payments. If the Fund invests in illiquid securities, it may be difficult to sell them at a price approximating their value. Currency transactions are impacted by fluctuations in exchange rates, which may adversely affect the U.S. dollar value of a funds investments. Foreign investing, especially in emerging markets, has additional risks such as currency and market volatility and political and social instability. Investments in higher-yielding, lower-rated securities involve additional risks as these securities include a higher risk of default and loss of principal. The prices of medium and small company stocks can change more frequently and dramatically than those of large company stocks. For additional information on these and other risk considerations, please see the Funds prospectus.
A funds 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 Funds at 1-800-225-5291 or visit our Web site at www.jhfunds.com. Please read the prospectus carefully before investing or sending money.
Visit us at www.jhfunds.com
3 Allocations are as of 8/31/12 and are subject to change at any time. Since the Fund uses derivatives to implement many strategies, breaking down its approach by the percentage invested in each asset class doesnt give a full picture of the Funds investment positions. Instead, measuring each strategys contribution to overall risk presents a clearer picture of how the Fund is invested to seek to deliver its return objective. The use of versus represents the risk-adjusted investment views of the subadviser on specific strategies.
73
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11/1/2012 11:16:59 AM
John Hancock
AVERAGE ANNUAL TOTAL RETURNS2 Without maximum sales charge Class A MSCI World Energy Index3 MSCI World Metals & Mining Index3 Custom benchmark3 With 5% maximum sales charge Class A 1-year 3-year 5-year 9.12% 0.23% 5.79% 22.02% 7.94% 0.37% 0.40% 0.32% 7.51% 8.43% 3.68% 5.59% 1.55% 10-year Life of Fund (10/15/05) 3.59% 5.96%4 7.40%4 4.96%4 2.82%
2012
MARKET CAP
Q3
1.92% 6.76%
VALUE
BLEND GROWTH
10/15/05 is the inception date for the oldest class of shares, NAV shares. Class A shares were first offered on 1/4/10; returns prior to this date are those of the Class NAV shares that have been recalculated to reflect the gross fees and expenses of Class A. The Funds net annual operating expense ratio as of the current prospectus is 1.58%. The gross annual operating expense ratio of 1.77% is reduced due to a contractual expense reimbursement, which is in effect until at least 12/31/13 and may be terminated by the Adviser any time after this date. The Adviser may recapture operating expenses reimbursed subsequent to 1/1/09 for a period of three years following the beginning of the month in which the reimbursement occurred. Expenses for other share classes will vary, which will affect returns. Performance figures assume that all distributions are reinvested. Performance quoted without sales charges would be reduced if the sales charges were applied. For performance data current to the most recent month end, contact your financial professional or call John Hancock Funds at 1-800-225-5291. The performance data contained within this material represents past performance, which does not guarantee future results. The return and principal value of an investment will fluctuate, so that shares, when redeemed, may be worth more or less than the original cost. The Funds current performance may be higher or lower and is subject to substantial changes. GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT2 Class A without sales charge 10/15/05 to 9/30/12
2003
2004
2005 8.385
2006 20.29
2007 39.02
2008 50.49
2009 55.61
2010 14.35
2011 20.45
74
4 5
The Morningstar Style Box reveals the Funds investment style. For equity funds, the vertical axis shows the market capitalization of the stocks owned and the horizontal axis shows investment style (value, blend or growth). Performance results reflect any expense reductions. Without these reductions, performance would have been less favorable. The MSCI World Energy Index consists of the companies in the Energy sector of the MSCI World Index. MSCI World Index is a free float-adjusted market-capitalization weighted index designed to measure the equity market performance of developed markets. The MSCI World Metals & Mining Index consists of the companies in the Metals & Mining industry of the MSCI World Index. These sector-specific indexes are the Funds primary benchmarks. However, a custom benchmark, which consists of 60% MSCI Energy Index/40% MSCI Metals & Mining Index is also shown to reflect the Funds sector allocation under normal conditions. It is not possible to invest directly in an index. Index figure as of closest month end to inception date. Results since inception (not annualized).
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11/1/2012 11:17:00 AM
Q3
I 2012
PORTFOLIO MANAGEMENT Investment Adviser John Hancock Investment Management Services, LLC Subadviser Wellington Management and RS Investments7 Portfolio Managers Jay Bhutani Wellington Joined firm in 2007 Began career in 1986 John OToole, CFA Wellington Joined firm in 1992 Began career in 1988 MacKenzie B. Davis, CFA RS Investments Joined firm in 2004 Began career in 1993 Kenneth L. Settles, Jr., CFA RS Investments Joined firm in 2006 Began career in 1996 Andrew P. Pilara, Jr. RS Investments Joined firm in 1993 Began career in 1974 KEY STATISTICS Class A Inception Total net assets (mil) Portfolio turnover8 Number of holdings RISK MEASURES VS. BENCHMARK Benchmark Beta9 Standard deviation10 Fund Benchmark MSCI World Index 1.33 24.80 17.11 1/4/10 $791.9 85% 88
Antofagasta PLC Calpine Corp. BG Group PLC Occidental Petroleum Corp. Compass Minerals International, Inc. TOTAL
Oil, Gas & Consumable Fuels Metals & Mining Energy Equipment & Services Chemicals Construction Materials Independent Power Producers & Energy Traders Diversified Financial Services Capital Markets Commercial Services & Supplies WHAT YOU SHOULD KNOW BEFORE INVESTING
The natural resources industry can be significantly affected by global, political and environmental developments and by commodity prices. Investments concentrated in one sector may fluctuate more widely than investments diversified across sectors. Foreign investing, especially in emerging markets, has additional risks, such as currency and market volatility and political and social instability. Hedging and other strategic transactions may increase volatility of a fund and, if the transaction is not successful, could result in a significant loss. Currency transactions are impacted by fluctuations in exchange rates, which may adversely affect the U.S. dollar value of a funds investments. For additional information on these and other risk considerations, please see the Funds prospectus.
A funds 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 Funds at 1-800-225-5291 or visit our Web site at www.jhfunds.com. Please read the prospectus carefully before investing or sending money.
Visit us at www.jhfunds.com
6 Listed holdings do not represent all of the holdings in the Fund. Holdings are subject to change at any time and are not recommendations to buy or sell any security. Characteristics are expressed as a percentage of net assets and exclude cash and cash equivalents. 7 Wellington Management and RS Investments are independent and unaffiliated investment subadvisers. Please see the Funds prospectus and our Web site for full details. 8 The portfolio turnover is from the Funds most current annual report and is subject to change. Please see the annual report for further details regarding the turnover ratio. 9 Source: Morningstar, Inc. Beta is the market risk of the Funds Class A shares and is based on 3-year performance as of 9/30/12. By definition, the beta of the market (as represented by the stated benchmark) is 1.00. Accordingly, a fund with a 1.10 beta is theoretically expected to have 10% more volatility than the market. 10 Source: Morningstar, Inc. Based on Class A shares at NAV for the 3-year period as of 9/30/12. Standard deviation measures performance fluctuation generally, the higher the standard deviation, the greater the expected volatility of returns. These measures of past risk are not completely or necessarily representative of future risk and cannot predict a funds performance.
75
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11/1/2012 11:17:05 AM
John Hancock
A FRBAX
B FRBFX
C FRBCX
AVERAGE ANNUAL TOTAL RETURNS Without maximum sales charge Class A S&P Composite 1500 Banks Index2 S&P 500 Index2 With 5% maximum sales charge Class A 1-year 3-year 5-year 10-year 44.80% 8.08% 2.84% 3.44% 46.29% 9.52% 12.06% 2.00% 30.20% 13.20% 1.05% 8.01% 37.58% 6.24% 3.83% 2.91% Life of Fund (1/3/92) 10.26% 8.29% 9.99%
2012
Q3
MARKET CAP
VALUE
BLEND GROWTH
The Funds total annual operating expense ratio as of the current prospectus is 1.36%. Expenses for other share classes will vary, which will affect returns. Performance figures assume that all distributions are reinvested. Performance quoted without sales charges would be reduced if the sales charges were applied. For performance data current to the most recent month end, contact your financial professional or call John Hancock Funds at 1-800-225-5291. The performance data contained within this material represents past performance, which does not guarantee future results. The return and principal value of an investment will fluctuate, so that shares, when redeemed, may be worth more or less than the original cost. The Funds current performance may be higher or lower and is subject to substantial changes. GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT Class A without sales charge 1/3/92 to 9/30/12
YEAR-BY-YEAR TOTAL RETURNS (%) CLASS A WITHOUT SALES CHARGE 2002 2.90
1
2003 28.44
2004 14.39
2005 1.08
2006 14.64
2007 19.23
2008 25.48
2009 6.96
2010 14.95
2011 11.46
76
The Morningstar Style Box reveals the Funds investment style. For equity funds, the vertical axis shows the market capitalization of the stocks owned and the horizontal axis shows investment style (value, blend or growth). The S&P Composite 1500 Banks Index is an unmanaged index of banking sector stocks in the S&P 1500 Index. The S&P 500 Index is an unmanaged index that includes 500 widely traded common stocks. It is not possible to invest directly in an index.
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11/1/2012 11:17:06 AM
Q3
I 2012
PORTFOLIO MANAGEMENT Investment Adviser John Hancock Advisers, LLC Subadviser John Hancock Asset Management Portfolio Managers Lisa Welch Senior Portfolio Manager Joined Fund team in 1998 Began career in 1986 Susan Curry Portfolio Manager Joined Fund team in 2004 Began career in 1993 KEY STATISTICS Class A Inception Total net assets (mil) Portfolio turnover4 Number of holdings RISK MEASURES VS. BENCHMARK Benchmark S&P Composite 1500 Banks Index Beta5 0.88 Standard deviation6 1/3/92 $606.9 16% 92
Commercial Banks Thrifts & Mortgage Finance Diversified Financial Services Capital Markets
Investments concentrated in one sector may fluctuate more widely than investments diversified across sectors. The prices of medium and small company stocks can change more frequently and dramatically than those of large company stocks. Foreign investing, especially in emerging markets, has additional risks, such as currency and market volatility and political and social instability. Hedging and other strategic transactions may increase volatility of a fund and, if the transaction is not successful, could result in a significant loss. For additional information on these and other risk considerations, please see the Funds prospectus.
A funds 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 Funds at 1-800-225-5291 or visit our Web site at www.jhfunds.com. Please read the prospectus carefully before investing or sending money.
Fund Benchmark
20.36 22.07
Visit us at www.jhfunds.com
3 Listed holdings do not represent all of the holdings in the Fund. Holdings are subject to change at any time and are not recommendations to buy or sell any security. Characteristics are expressed as a percentage of net assets and exclude cash and cash equivalents. 4 The portfolio turnover is from the Funds most current annual report and is subject to change. Please see the annual report for further details regarding the turnover ratio. 5 Source: Morningstar, Inc. Beta is the market risk of the Funds Class A shares and is based on 3-year performance as of 9/30/12. By definition, the beta of the market (as represented by the stated benchmark) is 1.00. Accordingly, a fund with a 1.10 beta is theoretically expected to have 10% more volatility than the market. 6 Source: Morningstar, Inc. Based on Class A shares at NAV for the 3-year period as of 9/30/12. Standard deviation measures performance fluctuation generally, the higher the standard deviation, the greater the expected volatility of returns. These measures of past risk are not completely or necessarily representative of future risk and cannot predict a funds performance.
77
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11/1/2012 11:17:08 AM
John Hancock
AVERAGE ANNUAL TOTAL RETURNS2 Without maximum sales charge Class A MSCI AC World Index3
LARGE MEDIUM SMALL
2012
5-year
10-year
MARKET CAP
With 5% maximum sales charge Class A The Funds total annual operating expense ratio as of the current prospectus is 1.91%. Expenses for other share classes will vary, which will affect returns. Performance figures assume that all distributions are reinvested. Performance quoted without sales charges would be reduced if the sales charges were applied. For performance data current to the most recent month end, contact your financial professional or call John Hancock Funds at 1-800-225-5291. The performance data contained within this material represents past performance, which does not guarantee future results. The return and principal value of an investment will fluctuate, so that shares, when redeemed, may be worth more or less than the original cost. The Funds current performance may be higher or lower and is subject to substantial changes. GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT2 Class A without sales charge 8/3/09 to 9/30/12
Q3
VALUE
BLEND GROWTH
2003
2004
2005
2006
2007
2008
2009 8.304
2010 4.43
2011 16.50
78
The Morningstar Style Box reveals the Funds investment style. For equity funds, the vertical axis shows the market capitalization of the stocks owned and the horizontal axis shows investment style (value, blend or growth). Performance results reflect any expense reductions. Without these reductions, performance would have been less favorable. The MSCI AC World Index is a free float-adjusted market-capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. The MSCI AC World Index consists of 46 country indexes comprising 23 developed and 23 emerging-market country indexes. The total return for this index is calculated gross of foreign withholding tax on dividends. It is not possible to invest directly in an index. Results since inception (not annualized).
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11/1/2012 11:17:10 AM
Q3
I 2012
PORTFOLIO MANAGEMENT Investment Adviser John Hancock Investment Management Services, LLC Subadviser Wellington Management6 Portfolio Manager Frank Teixeira, CMT, CFA Portfolio Manager Managed Fund since it began in 2009 Began career in 1989 KEY STATISTICS Class A Inception Total net assets (mil) Portfolio turnover7 Number of holdings 8/3/09 $516.0 507% 95
Information Technology Industrials Health Care Consumer Discretionary Materials Financials Energy WHAT YOU SHOULD KNOW BEFORE INVESTING
Foreign investing, especially in emerging markets, has additional risks, such as currency and market volatility and political and social instability. Hedging and other strategic transactions may increase volatility of a fund and, if the transaction is not successful, could result in a significant loss. The Fund may invest its assets in a small number of issuers. Performance could suffer significantly from adverse events affecting these issuers. Investments concentrated in one sector may fluctuate more widely than investments diversified across sectors. Frequently trading securities may increase transaction costs (thus lowering performance) and taxable distributions. Owning an ETF generally reflects the risks of owning the underlying securities it is designed to track, which may cause a lack of liquidity, more volatility and increased management fees. The Fund may invest in IPOs, which are frequently volatile in price and may lead to increased portfolio turnover. The Fund can invest up to 100% of its assets in cash, which may cause the Fund to not meet its investment objective. For additional information on these and other risk considerations, please see the Funds prospectus.
A funds 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 Funds at 1-800-225-5291 or visit our Web site at www.jhfunds.com. Please read the prospectus carefully before investing or sending money.
Visit us at www.jhfunds.com
5 Listed holdings do not represent all of the holdings in the Fund. Holdings are subject to change at any time and are not recommendations to buy or sell any security. Characteristics are expressed as a percentage of net assets and exclude cash and cash equivalents. 6 Wellington Management is an independent and unaffiliated investment subadviser. 7 The portfolio turnover is from the Funds most current annual report and is subject to change. Please see the annual report for further details regarding the turnover ratio.
79
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11/1/2012 11:17:13 AM
John Hancock
Bond Fund
SUBADVISED BY JOHN HANCOCK ASSET MANAGEMENT Goal: Seeks to generate a high level of current income consistent with prudent investment risk. Strategy: Invests in a diversified portfolio of bonds, which may include corporate, U.S. government and agency securities. The majority of bonds in the portfolio are of investment-grade quality, though the Fund may invest up to 25% in bonds rated below investment grade.
An Income Fund ALL DATA AS OF 9/30/12 A JHNBX B JHBBX C JHCBX I JHBIX
AVERAGE ANNUAL TOTAL RETURNS Without maximum sales charge Class A Barclays Capital Government/Credit Bond Index1 With 4.5% maximum sales charge Class A 1-year 3-year 11.75% 10.29% 5.66% 6.74% 6.50% 8.61% 5-year 8.35% 6.63% 7.36% 10-year 6.58% 5.39% 6.10% Life of Fund (11/9/73) 7.86% 8.08% 7.73%
Q3
I 2012
HHHH
(out of 1,019 Intermediate-Term Bond funds)
The Funds net annual operating expense ratio as of the current prospectus is 1.01%. The gross annual operating expense ratio of 1.06% is reduced due to a contractual expense reimbursement, which is in effect until at least 9/30/13 and may be terminated by the Adviser any time after this date. Expenses for other share classes will vary, which will affect returns. Performance figures assume that all distributions are reinvested. Performance quoted without sales charges would be reduced if the sales charges were applied. For performance data current to the most recent month end, contact your financial professional or call John Hancock Funds at 1-800-225-5291. The performance data contained within this material represents past performance, which does not guarantee future results. The return and principal value of an investment will fluctuate, so that shares, when redeemed, may be worth more or less than the original cost. The Funds current performance may be higher or lower and is subject to substantial changes. GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT Class A without sales charge 11/9/73 to 9/30/12
The Fund was rated 4 stars for the 3-, 5- and 10-year periods. Load-waived rating
HHHHH
(out of 1,019 Intermediate-Term Bond funds)
The Fund was rated 5 stars, 5 stars and 4 stars for the 3-, 5- and 10-year periods, respectively. Overall rating is based on 3-, 5- and 10-year Morningstar Risk-Adjusted Returns and accounts for variation in a funds monthly performance. The Fund was rated out of 1,019, 888 and 615 funds for the 3-, 5- and 10-year periods, respectively. The overall rating includes effects of sales charges, loads and redemption fees, while the load-waived rating does not. Load-waived ratings for Class A shares should only be considered by investors who are not subject to a front-end sales charge. Contact your financial professional to determine whether you are eligible to purchase the Class A share without paying the front load. Other share classes may be rated differently.*
YEAR-BY-YEAR TOTAL RETURNS (%) CLASS A WITHOUT SALES CHARGE 2002 7.36 80 2003 7.62 2004 4.53 2005 2.38 2006 4.45 2007 4.90 2008 11.92 2009 28.43 2010 12.84 2011 4.86
1 The Barclays Capital Government/Credit Bond Index is an unmanaged index that measures the performance of U.S. government bonds, U.S. corporate bonds and Yankee bonds. It is not possible to invest directly in an index.
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11/1/2012 11:17:14 AM
Q3
I 2012
PORTFOLIO MANAGEMENT Investment Adviser John Hancock Advisers, LLC Subadviser John Hancock Asset Management Portfolio Managers Barry Evans, CFA President Joined Fund team in 2002 Began career in 1986 Howard Greene, CFA Senior Portfolio Manager Joined Fund team in 2002 Began career in 1979 Jeffrey Given, CFA Portfolio Manager Joined Fund team in 2006 Began career in 1993 KEY STATISTICS Class A Inception Total net assets (mil) Portfolio turnover3 Number of holdings FIXED INCOME CHARACTERISTICS Average maturity Duration SEC 30-day yield4 7.93 yrs 4.16 yrs 3.95% 11/9/73 $1,541.8 76% 588
LB-UBS Commercial Mortgage Trust 1.42% General Electric Capital Corp. 0.92% WaMu Mortgage 0.88% Banc of America Commercial Mortgage 0.79% Ford Motor Credit Company LLC 0.68% TOTAL 40.42%
Financials U.S. Government Agency Industrials Consumer Discretionary U.S. Government Asset-Backed Securities Materials Energy Utilities Telecommunication Services WHAT YOU SHOULD KNOW BEFORE INVESTING
31.57% 27.53% 6.48% 6.02% 5.10% 4.45% 4.18% 4.11% 2.54% 1.89%
Fixed-income investments are subject to interest-rate and credit risk; their value will normally decline as interest rates rise or if the creditor is unable or unwilling to make principal or interest payments. Investments in higher-yielding, lower-rated securities involve additional risks as these securities include a higher risk of default and loss of principal. Foreign investing, especially in emerging markets, has additional risks, such as currency and market volatility and political and social instability. Mortgage and asset-backed securities may be sensitive to changes in interest rates, subject to early repayment risk and their value may fluctuate in response to the markets perception of issuer creditworthiness. The use of hedging and derivatives transactions could produce disproportionate gains or losses and may increase volatility and costs. The distribution rate and income amounts reflect past amounts distributed and may not be indicative of future rates or income amounts. The distribution amounts paid by the Fund generally depend on the amount of income and/or dividends received by the Funds investments. The Fund may not be able to pay distributions or may have to reduce its distribution level if the amount of such income and/or dividends received from its investment declines. Therefore, distribution rates and income amounts can change at any time. For additional information on these and other risk considerations, please see the Funds prospectus.
A funds 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 Funds at 1-800-225-5291 or visit our Web site at www.jhfunds.com. Please read the prospectus carefully before investing or sending money.
Visit us at www.jhfunds.com
2 Listed holdings do not represent all of the holdings in the Fund. Holdings are subject to change at any time and are not recommendations to buy or sell any security. Characteristics are expressed as a percentage of net assets and exclude cash and cash equivalents. 3 The portfolio turnover is from the Funds most current annual report and is subject to change. Please see the annual report for further details regarding the turnover ratio. 4 The Funds unsubsidized yield as of 9/30/12 was 3.9%. Unsubsidized yields reflect what the yield would have been without the effect of reimbursements and waivers. * For each fund with at least a 3-year history, Morningstar calculates a Morningstar Rating based on a Morningstar Risk-Adjusted Return that accounts for variation in a funds monthly performance (including effects of sales charges, loads and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category, the next 22.5%, 35%, 22.5% and the bottom 10% receive 5, 4, 3, 2 or 1 star(s), respectively. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) Past performance is no guarantee of future results.
81
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11/1/2012 11:17:19 AM
John Hancock
AVERAGE ANNUAL TOTAL RETURNS1 Without maximum sales charge 1-year 3-year Class A 18.29% 16.01% Bank of America Merrill Lynch U.S. High Yield Master II Constrained Index2 18.86% 12.54% With 4.5% maximum sales charge Class A 13.01% 14.25% 5-year 10-year Life of Fund (4/30/09) 19.27% 19.49% 17.68%
Q3
I 2012
HHHHH
(out of 512 High Yield Bond funds)
The Fund was rated 5 stars for the 3-year period. Load-waived rating
Prior to 3/12/12, the Fund was not open to investments from the general public. The Funds net annual operating expense ratio as of the current prospectus is 1.18%. The gross annual operating expense ratio of 1.81% is reduced due to a contractual expense reimbursement, which is in effect until at least 6/30/13 and may be terminated by the Adviser any time after this date. Expenses for other share classes will vary, which will affect returns. Performance figures assume that all distributions are reinvested. Performance quoted without sales charges would be reduced if the sales charges were applied. For performance data current to the most recent month end, contact your financial professional or call John Hancock Funds at 1-800-225-5291. The performance data contained within this material represents past performance, which does not guarantee future results. The return and principal value of an investment will fluctuate, so that shares, when redeemed, may be worth more or less than the original cost. The Funds current performance may be higher or lower and is subject to substantial changes. GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT1 Class A without sales charge 4/30/09 to 9/30/12
HHHHH
(out of 512 High Yield Bond funds)
The Fund was rated 5 stars for the 3-year period. Overall rating is based on 3-year Morningstar Risk-Adjusted Returns and accounts for variation in a funds monthly performance. The Fund was rated out of 512 funds for the 3-year period. The overall rating includes effects of sales charges, loads and redemption fees, while the load-waived rating does not. Load-waived ratings for Class A shares should only be considered by investors who are not subject to a front-end sales charge. Contact your financial professional to determine whether you are eligible to purchase the Class A share without paying the front load. Other share classes may be rated differently.* YEAR-BY-YEAR TOTAL RETURNS1 (%) CLASS A WITHOUT SALES CHARGE 2002 2003 2004 2005 2006 2007 2008 2009 25.733 2010 20.82 2011 6.74
82
1 Performance results reflect any expense reductions. Without these reductions, performance would have been less favorable. Performance of the Pzena Focused Value Fund reflects stocks selected from the largest 1,000 publicly traded companies, whereas the Fund invests in stocks selected from the 500 largest such companies. 2 The Bank of America Merrill Lynch U.S. High Yield Master II Constrained Index contains all securities in the Bank of America Merrill Lynch U.S. High Yield Master II Index but caps issuer exposure at 2%. The Bank of America Merrill Lynch U.S. High Yield Master II Index is composed of U.S. currency high-yield bonds issued by U.S. and non-U.S. issuers. It is not possible to invest directly in an index. 3 Results since inception (not annualized).
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11/1/2012 11:17:20 AM
Q3
I 2012
PORTFOLIO MANAGEMENT Investment Adviser John Hancock Investment Management Services, LLC Subadviser John Hancock Asset Management Portfolio Managers Terry Carr, CFA Joined company in 2002 Began career in 1986
SECTOR COMPOSITION4 Energy Materials Consumer Discretionary Industrials Consumer Staples Telecommunication Services Health Care Financials Information Technology Utilities WHAT YOU SHOULD KNOW BEFORE INVESTING 17.72% 15.10% 14.00% 11.25% 9.02% 6.06% 4.51% 4.01% 3.84% 1.97%
KEY STATISTICS Class A Inception Total net assets (mil) Portfolio turnover
5
Number of holdings FIXED INCOME CHARACTERISTICS Average maturity Duration SEC 30-day yield
6
Investments in higher-yielding, lower-rated securities involve additional risks as these securities include a higher risk of default and loss of principal. Fixed-income investments are subject to interest rate and credit risk; their value will normally decline as interest rates rise or if the creditor is unable or unwilling to make principal or interest payments. The issuer or grantor of a security, or counterparty to a transaction, may be unable or unwilling to make principal, interest or settlement payments. Frequently trading securities may increase transaction costs (thus lowering performance) and taxable distributions. The use of hedging and derivatives transactions could produce disproportionate gains or losses and may increase volatility and costs. Foreign investing, especially in emerging markets, has additional risks such as currency and market volatility and political and social instability. The distribution rate and income amounts reflect past amounts distributed and may not be indicative of future rates or income amounts. The distribution amounts paid by the Fund generally depend on the amount of income and/or dividends received by the Funds investments. The Fund may not be able to pay distributions or may have to reduce its distribution level if the amount of such income and/or dividends received from its investment decline. Therefore, distribution rates and income amounts can change at any time. For additional information on these and other risk considerations, please see the Funds prospectus.
A funds 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 Funds at 1-800-225-5291 or visit our Web site at www.jhfunds.com. Please read the prospectus carefully before investing or sending money.
Visit us at www.jhfunds.com
4 Listed holdings do not represent all of the holdings in the Fund. Holdings are subject to change at any time and are not recommendations to buy or sell any security. Characteristics are expressed as a percentage of net assets and exclude cash and cash equivalents. 5 The portfolio turnover is from the Funds most current annual report and is subject to change. Please see the annual report for further details regarding the turnover ratio. 6 The Funds unsubsidized yield as of 9/30/12 was 5.55%. Unsubsidized yields reflect what the yield would have been without the effect of reimbursements and waivers. * For each fund with at least a 3-year history, Morningstar calculates a Morningstar Rating based on a Morningstar Risk-Adjusted Return that accounts for variation in a funds monthly performance (including effects of sales charges, loads and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category, the next 22.5%, 35%, 22.5% and the bottom 10% receive 5, 4, 3, 2 or 1 star(s), respectively. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) Past performance is no guarantee of future results.
83
QFG.indb 83
11/1/2012 11:17:25 AM
John Hancock
AVERAGE ANNUAL TOTAL RETURNS1 Without maximum sales charge Class A S&P/LSTA Performing Loan Index2 With 3% maximum sales charge Class A 8.24% 6.17% 4.69% The Funds net annual operating expense ratio as of the current prospectus is 1.20%. The gross annual operating expense ratio of 1.21% is reduced due to a contractual expense reimbursement, which is in effect until at least 12/31/12 and may be terminated by the Adviser any time after this date. The Adviser may recapture operating expenses reimbursed subsequent to 1/1/09, for a period of three years following the beginning of the month in which the reimbursement occurred. Expenses for other share classes will vary, which will affect returns. Performance figures assume that all distributions are reinvested. Performance quoted without sales charges would be reduced if the sales charges were applied. For performance data current to the most recent month end, contact your financial professional or call John Hancock Funds at 1-800-225-5291. The performance data contained within this material represents past performance, which does not guarantee future results. The return and principal value of an investment will fluctuate, so that shares, when redeemed, may be worth more or less than the original cost. The Funds current performance may be higher or lower and is subject to substantial changes. GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT1 Class A without sales charge 1/2/08 to 9/30/12 1-year 11.59% 11.24% 3-year 7.25% 7.84% 5-year 10-year Life of Fund (1/2/08) 5.36% 5.66%
Q3
I 2012
Why John Hancock Funds?
u Extensive Research, Proven Managers Our investment team conducts ongoing research to identify proven managers who have specialized expertise in their respective asset class or strategy and who meet our requirements for performance, style consistency and risk management. As a result, we give you access to an impressive roster of institutional asset managers not typically available to retail investors. u A Focus on Your Success We are committed to you and your success. Our ultimate objective is to help you achieve your long-term financial goals. u A Brand You Know and Trust John Hancock has been helping individuals and institutions build and protect wealth since 1862. At a time when trust and confidence are at a premium, we are proud to offer a full range of investment strategies that carry one of Americas strongest and most recognized corporate brands.
YEAR-BY-YEAR TOTAL RETURNS1 (%) CLASS A WITHOUT SALES CHARGE 2002 2003 2004 2005 2006 2007 2008 24.39 2009 41.26 2010 9.59 2011 1.82
84
1 Performance results reflect any expense reductions. Without these reductions, performance would have been less favorable. 2 The S&P/LSTA Performing Loan Index is a subset of the S&P/LSTA Leveraged Loan Index tracking returns in the leveraged loan market and capturing a broad cross-section of the U.S. leveraged loan market, including dollar-denominated, U.S.-syndicated loans to overseas issuers and excluding those in default. It is not possible to invest directly in an index.
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11/1/2012 11:17:26 AM
Q3
I 2012
PORTFOLIO MANAGEMENT Investment Adviser John Hancock Investment Management Services, LLC Subadviser Western Asset Management Company Portfolio Managers Michael Buchanan Portfolio Manager Managed the Fund since it began in 2007 Began career in 1990 Timothy J. Settel Portfolio Manager Managed the Fund since it began in 2007 Began career in 1993 Stephen Walsh Portfolio Manager Managed the Fund since it began in 2007 Began career in 1981 KEY STATISTICS Class A Inception Total net assets (mil) Portfolio turnover4 Number of holdings FIXED INCOME CHARACTERISTICS Average maturity Duration SEC 30-day yield
5
Fixed-income investments are subject to interest-rate and credit risk; their value will normally decline as interest rates rise or if the creditor is unable or unwilling to make principal or interest payments. Investments in higher-yielding, lower-rated securities involve additional risks as these securities include a higher risk of default and loss of principal. If the Fund invests in illiquid securities, it may be difficult to sell them at a price approximating their value. Foreign investing, especially in emerging markets, has additional risks, such as currency and market volatility and political and social instability. The Fund may invest its assets in a small number of issuers. Performance could suffer significantly from adverse events affecting these issuers. The distribution rate and income amounts reflect past amounts distributed and may not be indicative of future rates or income amounts. The distribution amounts paid by the Fund generally depend on the amount of income and/or dividends received by the Funds investments. The Fund may not be able to pay distributions or may have to reduce its distribution level if the amount of such income and/or dividends received from its investment declines. Therefore, distribution rates and income amounts can change at any time. For additional information on these and other risk considerations, please see the Funds prospectus.
A funds 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 Funds at 1-800-225-5291 or visit our Web site at www.jhfunds.com. Please read the prospectus carefully before investing or sending money.
Visit us at www.jhfunds.com
3 Listed holdings do not represent all of the holdings in the Fund. Holdings are subject to change at any time and are not recommendations to buy or sell any security. Characteristics are expressed as a percentage of net assets and exclude cash and cash equivalents. 4 The portfolio turnover is from the Funds most current annual report and is subject to change. Please see the annual report for further details regarding the turnover ratio. 5 The Funds unsubsidized yield as of 9/30/12 was 4.13%. Unsubsidized yields reflect what the yield would have been without the effect of reimbursements and waivers.
85
QFG.indb 85
11/1/2012 11:17:31 AM
John Hancock
A JHGIX
B TSGIX
C TCGIX
AVERAGE ANNUAL TOTAL RETURNS1 Without maximum sales charge Class A Barclays Capital U.S. Government Bond Index2 With 4.5% maximum sales charge Class A 1-year 5.04% 2.95% 0.35% 3-year 5.54% 5.15% 3.94% 5-year 6.05% 6.01% 5.08% 10-year 4.31% 4.74% 3.82% Life of Fund (9/30/94) 5.90% 6.43% 5.63%
Q3
I 2012
The Funds net annual operating expense ratio as of the current prospectus is 0.98%. The gross annual operating expense ratio of 1.15% is reduced due to a contractual expense reimbursement, which is in effect until at least 9/30/13 and may be terminated by the Adviser any time after this date. Expenses for other share classes will vary, which will affect returns. Performance figures assume that all distributions are reinvested. Performance quoted without sales charges would be reduced if the sales charges were applied. For performance data current to the most recent month end, contact your financial professional or call John Hancock Funds at 1-800-225-5291. The performance data contained within this material represents past performance, which does not guarantee future results. The return and principal value of an investment will fluctuate, so that shares, when redeemed, may be worth more or less than the original cost. The Funds current performance may be higher or lower and is subject to substantial changes. GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT1 Class A without sales charge 9/30/94 to 9/30/12
YEAR-BY-YEAR TOTAL RETURNS1 (%) CLASS A WITHOUT SALES CHARGE 2002 10.26 2003 1.09 2004 2.70 2005 1.73 2006 3.70 2007 6.14 2008 5.87 2009 4.73 2010 5.84 2011 6.22
86
1 Performance results reflect any expense reductions. Without these reductions, performance would have been less favorable. 2 The Barclays Capital U.S. Government Bond Index is comprised of government securities, mortgage-backed securities, asset-backed securities and corporate securities to simulate the universe of bonds in the market. It is not possible to invest directly in an index.
QFG.indb 86
11/1/2012 11:17:32 AM
Q3
I 2012
PORTFOLIO MANAGEMENT Investment Adviser John Hancock Advisers, LLC Subadviser John Hancock Asset Management Portfolio Managers Howard Greene, CFA Senior Portfolio Manager Joined Fund team in 2006 Began career in 1979 Jeffrey Given, CFA Portfolio Manager Joined Fund team in 1998 Began career in 1993 KEY STATISTICS U.S. Government Agency Financials U.S. Government Asset-Backed Securities Telecommunication Services 74.78% 9.85% 9.43% 3.02% 0.40% Class A Inception Total net assets (mil) Portfolio turnover
4
SECTOR COMPOSITION3
Fixed-income investments are subject to interest-rate and credit risk; their value will normally decline as interest rates rise or if the creditor is unable or unwilling to make principal or interest payments. Investments in higher-yielding, lower-rated securities involve additional risks as these securities include a higher risk of default and loss of principal. Foreign investing, especially in emerging markets, has additional risks, such as currency and market volatility and political and social instability. Hedging and other strategic transactions may increase the volatility of a fund and, if the transaction is not successful, could result in a significant loss. The distribution rate and income amounts reflect past amounts distributed and may not be indicative of future rates or income amounts. The distribution amounts paid by the Fund generally depend on the amount of income and/or dividends received by the Funds investments. The Fund may not be able to pay distributions or may have to reduce its distribution level if the amount of such income and/or dividends received from its investment declines. Therefore, distribution rates and income amounts can change at any time. For additional information on these and other risk considerations, please see the Funds prospectus.
A funds 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 Funds at 1-800-225-5291 or visit our Web site at www.jhfunds.com. Please read the prospectus carefully before investing or sending money.
Visit us at www.jhfunds.com
3 Listed holdings do not represent all of the holdings in the Fund. Holdings are subject to change at any time and are not recommendations to buy or sell any security. Characteristics are expressed as a percentage of net assets and exclude cash and cash equivalents. 4 The portfolio turnover is from the Funds most current annual report and is subject to change. Please see the annual report for further details regarding the turnover ratio. 5 The Funds unsubsidized yield as of 9/30/12 was 3.03%. Unsubsidized yields reflect what the yield would have been without the effect of reimbursements and waivers.
87
QFG.indb 87
11/1/2012 11:17:35 AM
John Hancock
AVERAGE ANNUAL TOTAL RETURNS Without maximum sales charge Class A Bank of America Merrill Lynch High Yield Master II Index1 With 4.5% maximum sales charge Class A 1-year 3-year 20.25% 12.38% 18.89% 12.60% 14.83% 10.66% 5-year 1.27% 9.07% 0.34% 10-year 8.31% 10.77% 7.81% Life of Fund (6/30/93) 6.04% 7.81% 5.79%
Q3
I 2012
The Funds total annual operating expense ratio as of the current prospectus is 1.07%. Expenses for other share classes will vary, which will affect returns. Performance figures assume that all distributions are reinvested. Performance quoted without sales charges would be reduced if the sales charges were applied. For performance data current to the most recent month end, contact your financial professional or call John Hancock Funds at 1-800-225-5291. The performance data contained within this material represents past performance, which does not guarantee future results. The return and principal value of an investment will fluctuate, so that shares, when redeemed, may be worth more or less than the original cost. The Funds current performance may be higher or lower and is subject to substantial changes. GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT Class A without sales charge 6/30/93 to 9/30/12
YEAR-BY-YEAR TOTAL RETURNS (%) CLASS A WITHOUT SALES CHARGE 2002 0.44 88 2003 39.91 2004 9.00 2005 3.59 2006 20.25 2007 1.21 2008 48.45 2009 69.57 2010 24.85 2011 13.15
1 The Bank of America Merrill Lynch High Yield Master II Index is composed of U.S. currency high-yield bonds issued by U.S. and non-U.S. issuers. It is not possible to invest directly in an index.
QFG.indb 88
11/1/2012 11:17:37 AM
Q3
I 2012
PORTFOLIO MANAGEMENT Investment Adviser John Hancock Advisers, LLC Subadviser John Hancock Asset Management Portfolio Managers John Iles Portfolio Manager Joined Fund team in 2008 Began career in 1984 Joseph Rizzo Portfolio Manager Joined Fund team in 2008 Began career in 1994 Dennis McCafferty, CFA Portfolio Manager Joined Fund team in 2009 Began career in 1995 John F. Addeo, CFA Portfolio Manager Joined Fund team in 2012 Began career in 1984 KEY STATISTICS Class A Inception Total net assets (mil) Portfolio turnover
3
SECTOR COMPOSITION
Consumer Discretionary Materials Financials Industrials Energy Telecommunication Services Consumer Staples Health Care Utilities Asset-Backed Securities WHAT YOU SHOULD KNOW BEFORE INVESTING
42.41% 13.17% 13.04% 7.86% 6.07% 4.70% 3.20% 2.44% 1.02% 0.81%
Number of holdings FIXED INCOME CHARACTERISTICS Average maturity Duration SEC 30-day yield
Fixed-income investments are subject to interest-rate and credit risk; their value will normally decline as interest rates rise or if the creditor is unable or unwilling to make principal or interest payments. Investments in higher-yielding, lower-rated securities involve additional risks as these securities include a higher risk of default and loss of principal. Stocks and other equities have generally outperformed other asset classes over the long term, but may fluctuate more dramatically over the short term. Foreign investing, especially in emerging markets, has additional risks, such as currency and market volatility and political and social instability. Investments concentrated in one sector may fluctuate more widely than investments across diversified sectors. The use of hedging and derivatives transactions could produce disproportionate gains or losses and may increase volatility and costs. The distribution rate and income amounts reflect past amounts distributed and may not be indicative of future rates or income amounts. The distribution amounts paid by the Fund generally depend on the amount of income and/or dividends received by the Funds investments. The Fund may not be able to pay distributions or may have to reduce its distribution level if the amount of such income and/or dividends received from its investment declines. Therefore, distribution rates and income amounts can change at any time. For additional information on these and other risk considerations, please see the Funds prospectus.
A funds 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 Funds at 1-800-225-5291 or visit our Web site at www.jhfunds.com. Please read the prospectus carefully before investing or sending money.
Visit us at www.jhfunds.com
2 Listed holdings do not represent all of the holdings in the Fund. Holdings are subject to change at any time and are not recommendations to buy or sell any security. Characteristics are expressed as a percentage of net assets and exclude cash and cash equivalents. 3 The portfolio turnover is from the Funds most current annual report and is subject to change. Please see the annual report for further details regarding the turnover ratio.
89
QFG.indb 89
11/1/2012 11:17:42 AM
John Hancock
Income Fund
SUBADVISED BY JOHN HANCOCK ASSET MANAGEMENT Goal: Seeks a high level of current income. Strategy: Invests primarily in three major fixed-income sectors: foreign government and corporate debt securities, U.S. government and agency securities, and U.S. high-yield bonds. The management team emphasizes the sectors they believe have the most potential and may adjust allocations over time as expectations change.
An Income Fund ALL DATA AS OF 9/30/12 A JHFIX B STIBX C JSTCX I JSTIX R1 JSTRX
AVERAGE ANNUAL TOTAL RETURNS Without maximum sales charge 1-year Class A 13.65% Barclays Capital U.S. Aggregate Bond Index1 5.16% Morningstar Multisector Bond Average 12.56% With 4.5% maximum sales charge Class A 8.61% 3-year 9.89% 6.19% 9.32% 8.22% 5-year 8.26% 6.53% 6.69% 7.26% 10-year 8.16% 5.32% 7.90% 7.66% Life of Fund (8/18/86) 7.55% 7.12% 6.88% 7.36%
Q3
I 2012
HHH
The Funds total annual operating expense ratio as of the current prospectus is 0.93%. Expenses for other share classes will vary, which will affect returns. Performance figures assume that all distributions are reinvested. Performance quoted without sales charges would be reduced if the sales charges were applied. For performance data current to the most recent month end, contact your financial professional or call John Hancock Funds at 1-800-225-5291. The performance data contained within this material represents past performance, which does not guarantee future results. The return and principal value of an investment will fluctuate, so that shares, when redeemed, may be worth more or less than the original cost. The Funds current performance may be higher or lower and is subject to substantial changes. GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT Class A without sales charge 8/18/86 to 9/30/12
The Fund was rated 3 stars, 4 stars and 3 stars for the 3-, 5- and 10-year periods, respectively. Load-waived rating
HHHH
The Fund was rated 4 stars, 4 stars and 3 stars for the 3-, 5- and 10-year periods, respectively. Overall rating is based on 3-, 5- and 10-year Morningstar Risk-Adjusted Returns and accounts for variation in a funds monthly performance. The Fund was rated out of 203, 168 and 107 funds for the 3-, 5- and 10-year periods, respectively. The overall rating includes effects of sales charges, loads and redemption fees, while the load-waived rating does not. Load-waived ratings for Class A shares should only be considered by investors who are not subject to a front-end sales charge. Contact your financial professional to determine whether you are eligible to purchase the Class A share without paying the front load. Other share classes may be rated differently.* YEAR-BY-YEAR TOTAL RETURNS (%) CLASS A WITHOUT SALES CHARGE 2002 7.30 90 2003 16.88 2004 8.75 2005 2.28 2006 4.48 2007 5.57 2008 10.85 2009 29.46 2010 14.91 2011 1.68
1 The Barclays Capital U.S. Aggregate Bond Index is comprised of government securities, mortgage-backed securities, asset-backed securities and corporate securities to simulate the universe of bonds in the market. It is not possible to invest directly in an index.
QFG.indb 90
11/1/2012 11:17:43 AM
Q3
I 2012
PORTFOLIO MANAGEMENT Investment Adviser John Hancock Advisers, LLC Subadviser John Hancock Asset Management Portfolio Managers Daniel Janis III Senior Portfolio Manager Joined Fund team in 1999 Began career in 1984 John Iles Portfolio Manager Joined Fund team in 2005 Began career in 1984 Barry Evans, CFA President Joined Fund team in 2006 Began career in 1986 Thomas Goggins Senior Portfolio Manager Joined Fund team in 2009 Began career in 1989 KEY STATISTICS Class A Inception Total net assets (mil) Portfolio turnover3 Number of holdings FIXED INCOME CHARACTERISTICS Average maturity Duration SEC 30-day yield 7.28 yrs 3.95 yrs 4.36% 8/18/86 $3,330.9 42% 540
SECTOR COMPOSITION2 Financials Foreign Government Obligations Consumer Discretionary Industrials Materials Telecommunication Services Energy Health Care Consumer Staples Utilities WHAT YOU SHOULD KNOW BEFORE INVESTING 27.16% 26.24% 14.14% 7.04% 5.97% 4.91% 4.32% 3.64% 2.40% 1.36%
Fixed-income investments are subject to interest-rate and credit risk; their value will normally decline as interest rates rise or if the creditor is unable or unwilling to make principal or interest payments. Investments in higher-yielding, lower-rated securities involve additional risks as these securities include a higher risk of default and loss of principal. Foreign investing, especially in emerging markets, has additional risks, such as currency and market volatility and political and social instability. Currency transactions are impacted by fluctuations in exchange rates, which may adversely affect the U.S. dollar value of a funds investments. The use of hedging and derivatives transactions could produce disproportionate gains or losses and may increase volatility and costs. The distribution rate and income amounts reflect past amounts distributed and may not be indicative of future rates or income amounts. The distribution amounts paid by the Fund generally depend on the amount of income and/or dividends received by the Funds investments. The Fund may not be able to pay distributions or may have to reduce its distribution level if the amount of such income and/or dividends received from its investment declines. Therefore, distribution rates and income amounts can change at any time. For additional information on these and other risk considerations, please see the Funds prospectus.
A funds 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 Funds at 1-800-225-5291 or visit our Web site at www.jhfunds.com. Please read the prospectus carefully before investing or sending money.
Visit us at www.jhfunds.com
2 Listed holdings do not represent all of the holdings in the Fund. Holdings are subject to change at any time and are not recommendations to buy or sell any security. Characteristics are expressed as a percentage of net assets and exclude cash and cash equivalents. 3 The portfolio turnover is from the Funds most current annual report and is subject to change. Please see the annual report for further details regarding the turnover ratio. * For each fund with at least a 3-year history, Morningstar calculates a Morningstar Rating based on a Morningstar Risk-Adjusted Return that accounts for variation in a funds monthly performance (including effects of sales charges, loads and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category, the next 22.5%, 35%, 22.5% and the bottom 10% receive 5, 4, 3, 2 or 1 star(s), respectively. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) Past performance is no guarantee of future results.
91
QFG.indb 91
11/1/2012 11:17:48 AM
John Hancock
AVERAGE ANNUAL TOTAL RETURNS1 Without maximum sales charge Class A Barclays Capital U.S. Aggregate Bond Index2 With 4.5% maximum sales charge Class A 4.07% 6.84% 6.36% 5.13% 5.65% The Funds net annual operating expense ratio as of the current prospectus is 0.98%. The gross annual operating expense ratio of 1.00% is reduced due to a contractual expense reimbursement, which is in effect until at least 9/30/13 and may be terminated by the Adviser any time after this date. Expenses for other share classes will vary, which will affect returns. Performance figures assume that all distributions are reinvested. Performance quoted without sales charges would be reduced if the sales charges were applied. For performance data current to the most recent month end, contact your financial professional or call John Hancock Funds at 1-800-225-5291. The performance data contained within this material represents past performance, which does not guarantee future results. The return and principal value of an investment will fluctuate, so that shares, when redeemed, may be worth more or less than the original cost. The Funds current performance may be higher or lower and is subject to substantial changes. GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT1 Class A without sales charge 12/31/91 to 9/30/12 1-year 8.99% 5.16% 3-year 8.50% 6.19% 5-year 7.35% 6.53% 10-year 5.61% 5.32% Life of Fund (12/31/91) 5.89% 6.46%
Q3
MORNINGSTAR RATING (CLASS A) Overall rating
I 2012
HHH
(out of 1,019 Intermediate-Term Bond funds)
The Fund was rated 3 stars for the 3-, 5- and 10-year periods. Load-waived rating
HHHH
The Fund was rated 4 stars, 4 stars and 3 stars for the 3-, 5- and 10-year periods, respectively. Overall rating is based on 3-, 5- and 10-year Morningstar Risk-Adjusted Returns and accounts for variation in a funds monthly performance. The Fund was rated out of 1,019, 888 and 615 funds for the 3-, 5- and 10-year periods, respectively. The overall rating includes effects of sales charges, loads and redemption fees, while the load-waived rating does not. Load-waived ratings for Class A shares should only be considered by investors who are not subject to a front-end sales charge. Contact your financial professional to determine whether you are eligible to purchase the Class A share without paying the front load. Other share classes may be rated differently.* YEAR-BY-YEAR TOTAL RETURNS1 (%) CLASS A WITHOUT SALES CHARGE 2002 9.61 2003 4.62 2004 3.60 2005 1.59 2006 4.37 2007 5.33 2008 6.63 2009 19.16 2010 10.08 2011 5.51
92
1 Performance results reflect any expense reductions. Without these reductions, performance would have been less favorable. 2 The Barclays Capital U.S. Aggregate Bond Index is comprised of government securities, mortgage-backed securities, asset-backed securities and corporate securities to simulate the universe of bonds in the market. It is not possible to invest directly in an index.
QFG.indb 92
11/1/2012 11:17:50 AM
Q3
I 2012
PORTFOLIO MANAGEMENT Investment Adviser John Hancock Advisers, LLC Subadviser John Hancock Asset Management Portfolio Managers Barry Evans, CFA President Joined Fund team in 1995 Began career in 1986 Howard Greene, CFA Senior Portfolio Manager Joined Fund team in 2003 Began career in 1979 Jeffrey Given, CFA Portfolio Manager Joined Fund team in 1998 Began career in 1993 KEY STATISTICS Class A Inception Total net assets (mil) Portfolio turnover4 Number of holdings FIXED INCOME CHARACTERISTICS Average maturity Duration SEC 30-day yield 7.50 yrs 3.84 yrs 3.09% 12/31/91 $224.8 85% 415
SECTOR COMPOSITION3 U.S. Government Agency Financials U.S. Government Consumer Discretionary Industrials Asset-Backed Securities Energy Materials Utilities Telecommunication Services WHAT YOU SHOULD KNOW BEFORE INVESTING 38.36% 30.78% 7.25% 3.34% 3.32% 3.19% 3.01% 2.36% 1.85% 1.84%
Fixed-income investments are subject to interest-rate and credit risk; their value will normally decline as interest rates rise or if the creditor is unable or unwilling to make principal or interest payments. Foreign investing, especially in emerging markets, has additional risks, such as currency and market volatility and political and social instability. Mortgage and asset-backed securities may be sensitive to changes in interest rates, subject to early repayment risk and their value may fluctuate in response to the markets perception of issuer creditworthiness. Hedging and other strategic transactions may increase the volatility of a fund and, if the transaction is not successful, could result in a significant loss. The distribution rate and income amounts reflect past amounts distributed and may not be indicative of future rates or income amounts. The distribution amounts paid by the Fund generally depend on the amount of income and/or dividends received by the Funds investments. The Fund may not be able to pay distributions or may have to reduce its distribution level if the amount of such income and/or dividends received from its investment declines. Therefore, distribution rates and income amounts can change at any time. For additional information on these and other risk considerations, please see the Funds prospectus.
A funds 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 Funds at 1-800-225-5291 or visit our Web site at www.jhfunds.com. Please read the prospectus carefully before investing or sending money.
Visit us at www.jhfunds.com
3 Listed holdings do not represent all of the holdings in the Fund. Holdings are subject to change at any time and are not recommendations to buy or sell any security. Characteristics are expressed as a percentage of net assets and exclude cash and cash equivalents. 4 The portfolio turnover is from the Funds most current annual report and is subject to change. Please see the annual report for further details regarding the turnover ratio. * For each fund with at least a 3-year history, Morningstar calculates a Morningstar Rating based on a Morningstar Risk-Adjusted Return that accounts for variation in a funds monthly performance (including effects of sales charges, loads and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category, the next 22.5%, 35%, 22.5% and the bottom 10% receive 5, 4, 3, 2 or 1 star(s), respectively. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) Past performance is no guarantee of future results.
93
QFG.indb 93
11/1/2012 11:17:55 AM
John Hancock
AVERAGE ANNUAL TOTAL RETURNS1 Without maximum sales charge 1-year Class A 14.04% Barclays Capital U.S. Aggregate Bond Index2 5.16% Morningstar Multisector Bond Average 12.56% With 4.5% maximum sales charge Class A 8.91% 3-year 9.88% 6.19% 9.32% 8.21% 5-year 8.65% 6.53% 6.69% 7.65% 10-year 7.90% Life of Fund (4/28/06) 7.71% 6.50% 6.11% 6.94%
Q3
I 2012
IIII
(out of 203 Multisector Bond funds)
The Fund was rated 3 stars and 4 stars for the 3- and 5-year periods, respectively. Load-waived rating
4/28/06 is the inception date for the oldest class of shares, NAV shares. Class A shares were first offered on 1/4/10; returns prior to this date are those of the Class NAV shares that have been recalculated to reflect the gross fees and expenses of Class A. The Funds net annual operating expense ratio as of the current prospectus is 1.19%. The gross annual operating expense ratio of 1.25% is reduced due to a contractual expense reimbursement, which is in effect until at least 12/31/12 and may be terminated by the Adviser any time after this date. Expenses for other share classes will vary, which will affect returns. Performance figures assume that all distributions are reinvested. Performance quoted without sales charges would be reduced if the sales charges were applied. For performance data current to the most recent month end, contact your financial professional or call John Hancock Funds at 1-800-225-5291. The performance data contained within this material represents past performance, which does not guarantee future results. The return and principal value of an investment will fluctuate, so that shares, when redeemed, may be worth more or less than the original cost. The Funds current performance may be higher or lower and is subject to substantial changes. GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT1 Class A without sales charge 4/28/06 to 9/30/12
IIII
The Fund was rated 3 stars and 5 stars for the 3- and 5-year periods, respectively. Overall rating is based on 3- and 5-year Morningstar Risk-Adjusted Returns and accounts for variation in a funds monthly performance. The ratings shown are based on the historical adjusted returns prior to the date Class A shares were first offered (1/4/10). These hypothetical calculated returns reflect the historical performance of the Class NAV shares, adjusted to reflect the gross fees and expenses of Class A. The Fund was rated out of 203 and 168 funds for the 3- and 5-year periods, respectively. The overall rating includes effects of sales charges, loads and redemption fees, while the load-waived rating does not. Loadwaived ratings for Class A shares should only be considered by investors who are not subject to a front-end sales charge. Contact your financial professional to determine whether you are eligible to purchase the Class A share without paying the front load. Other share classes may be rated differently.* 94
YEAR-BY-YEAR TOTAL RETURNS1 (%) CLASS A WITHOUT SALES CHARGE 2002 2003 2004 2005 2006 2.063 2007 5.05 2008 9.18 2009 30.20 2010 14.96 2011 1.53
1 Performance results reflect any expense reductions. Without these reductions, performance would have been less favorable. 2 The Barclays Capital U.S. Aggregate Bond Index is comprised of government securities, mortgage-backed securities, asset-backed securities and corporate securities to simulate the universe of bonds in the market. It is not possible to invest directly in an index. 3 Results since inception (not annualized).
QFG.indb 94
11/1/2012 11:17:56 AM
Q3
I 2012
PORTFOLIO MANAGEMENT Investment Adviser John Hancock Investment Management Services, LLC Subadviser John Hancock Asset Management Portfolio Managers Daniel Janis III Senior Portfolio Manager Managed Fund since its inception Began career in 1984 John Iles Portfolio Manager Managed Fund since its inception Began career in 1984 Thomas Goggins Senior Portfolio Manager Joined Fund team in 2009 Began career in 1989 KEY STATISTICS Class A Inception Total net assets (mil) Portfolio turnover5 Number of holdings FIXED INCOME CHARACTERISTICS 1/4/10 $3,293.3 40% 620
SECTOR COMPOSITION4 Foreign Government Obligations Financials Consumer Discretionary Industrials Materials Telecommunication Services Energy Utilities Health Care Consumer Staples WHAT YOU SHOULD KNOW BEFORE INVESTING 27.35% 26.19% 10.15% 5.58% 5.08% 4.48% 4.14% 3.38% 2.98% 2.04%
Fixed-income investments are subject to interest-rate and credit risk; their value will normally decline as interest rates rise or if the creditor is unable or unwilling to make principal or interest payments. Investments in higher-yielding, lower-rated securities involve additional risks as these securities include a higher risk of default and loss of principal. Foreign investing, especially in emerging markets, has additional risks, such as currency and market volatility and political and social instability. Currency transactions are impacted by fluctuations in exchange rates, which may adversely affect the U.S. dollar value of a funds investments. The use of hedging and derivatives transactions could produce disproportionate gains or losses and may increase volatility and costs. The distribution rate and income amounts reflect past amounts distributed and may not be indicative of future rates or income amounts. The distribution amounts paid by the Fund generally depend on the amount of income and/or dividends received by the Funds investments. The Fund may not be able to pay distributions or may have to reduce its distribution level if the amount of such income and/or dividends received from its investment declines. Therefore, distribution rates and income amounts can change at any time. For additional information on these and other risk considerations, please see the Funds prospectus.
A funds 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 Funds at 1-800-225-5291 or visit our Web site at www.jhfunds.com. Please read the prospectus carefully before investing or sending money.
Visit us at www.jhfunds.com
4 Listed holdings do not represent all of the holdings in the Fund. Holdings are subject to change at any time and are not recommendations to buy or sell any security. Characteristics are expressed as a percentage of net assets and exclude cash and cash equivalents. 5 The portfolio turnover is from the Funds most current annual report and is subject to change. Please see the annual report for further details regarding the turnover ratio. 6 The Funds unsubsidized yield as of 9/30/12 was 3.61%. Unsubsidized yields reflect what the yield would have been without the effect of reimbursements and waivers. * For each fund with at least a 3-year history, Morningstar calculates a Morningstar Rating based on a Morningstar Risk-Adjusted Return that accounts for variation in a funds monthly performance (including effects of sales charges, loads and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category, the next 22.5%, 35%, 22.5% and the bottom 10% receive 5, 4, 3, 2 or 1 star(s), respectively. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) Past performance is no guarantee of future results.
95
QFG.indb 95
11/1/2012 11:18:02 AM
John Hancock
A TACAX
B TSCAX
C TCCAX
AVERAGE ANNUAL TOTAL RETURNS1 Without maximum sales charge Class A Barclays Capital Municipal Bond Index2 Morningstar Muni California Long Average With 4.5% maximum sales charge Class A 1-year 11.10% 8.32% 11.57% 6.12% 3-year 6.93% 5.99% 6.70% 5.31% 5-year 5.59% 6.06% 5.32% 4.61% 10-year 4.57% 5.03% 4.40% 4.09% Life of Fund (12/29/89) 6.07% 6.39% 5.73% 5.86%
Q3
I 2012
HHH
The Funds total annual operating expense ratio as of the current prospectus is 0.86%. Expenses for other share classes will vary, which will affect returns. Performance figures assume that all distributions are reinvested. Performance quoted without sales charges would be reduced if the sales charges were applied. For performance data current to the most recent month end, contact your financial professional or call John Hancock Funds at 1-800-225-5291. The performance data contained within this material represents past performance, which does not guarantee future results. The return and principal value of an investment will fluctuate, so that shares, when redeemed, may be worth more or less than the original cost. The Funds current performance may be higher or lower and is subject to substantial changes. GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT1 Class A without sales charge 12/29/89 to 9/30/12
The Fund was rated 2 stars, 3 stars and 3 stars for the 3-, 5- and 10-year periods, respectively. Load-waived rating
HHHH
The Fund was rated 4 stars for the 3-, 5- and 10-year periods. Overall rating is based on 3-, 5- and 10-year Morningstar Risk-Adjusted Returns and accounts for variation in a funds monthly performance. The Fund was rated out of 135, 129 and 107 funds for the 3-, 5- and 10-year periods, respectively. The overall rating includes effects of sales charges, loads and redemption fees, while the load-waived rating does not. Load-waived ratings for Class A shares should only be considered by investors who are not subject to a front-end sales charge. Contact your financial professional to determine whether you are eligible to purchase the Class A share without paying the front load. Other share classes may be rated differently.* YEAR-BY-YEAR TOTAL RETURNS1 (%) CLASS A WITHOUT SALES CHARGE 2002 7.99
1 2
2003 3.94
2004 4.46
2005 4.12
2006 5.03
2007 1.38
2008 11.87
2009 18.12
2010 3.23
2011 12.05
96
Performance results reflect any expense reductions. Without these reductions, performance would have been less favorable. The Barclays Capital Municipal Bond Index is an unmanaged index representative of the tax-exempt bond market. It is not possible to invest directly in an index.
QFG.indb 96
11/1/2012 11:18:03 AM
Q3
I 2012
PORTFOLIO MANAGEMENT Investment Adviser John Hancock Advisers, LLC Subadviser John Hancock Asset Management Portfolio Managers Dianne Sales, CFA Portfolio Manager Joined Fund team in 1995 Began career in 1984 Frank Lucibella, CFA Portfolio Manager Rejoined Fund team in 2005 Began career in 1982 KEY STATISTICS Class A Inception Total net assets (mil) Portfolio turnover5 Number of holdings FIXED INCOME CHARACTERISTICS 12/29/89 $277.1 9% 114
Tax rates are based on the highest maximum combined federal and California state personal income tax rates.
Fixed-income investments are subject to interest-rate and credit risk; their value will normally decline as interest rates rise or if the creditor is unable or unwilling to make principal or interest payments. Investments in higher-yielding, lower-rated securities involve additional risks as these securities include a higher risk of default and loss of principal. Municipal bond prices can decline due to fiscal mismanagement or tax shortfalls, or if related projects become unprofitable. The Fund may invest its assets in a small number of issuers. Performance could suffer significantly from adverse events affecting these issuers. If the Fund invests heavily in any one state or region, performance could be disproportionately affected by factors particular to that state or region. The use of hedging and derivatives transactions could produce disproportionate gains or losses and may increase volatility and costs. The distribution rate and income amounts reflect past amounts distributed and may not be indicative of future rates or income amounts. The distribution amounts paid by the Fund generally depend on the amount of income and/or dividends received by the Funds investments. The Fund may not be able to pay distributions or may have to reduce its distribution level if the amount of such income and/or dividends received from its investment declines. Therefore, distribution rates and income amounts can change at any time. For additional information on these and other risk considerations, please see the Funds prospectus.
A funds 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 Funds at 1-800-225-5291 or visit our Web site at www.jhfunds.com. Please read the prospectus carefully before investing or sending money.
Visit us at www.jhfunds.com
3 Listed holdings do not represent all of the holdings in the Fund. Holdings are subject to change at any time and are not recommendations to buy or sell any security. Characteristics are expressed as a percentage of net assets and exclude cash and cash equivalents. 4 A portion of the income may be subject to state and/or local taxes. Capital gains are fully taxable. Some investors may be subject to the federal Alternative Minimum Tax (AMT). 5 The portfolio turnover is from the Funds most current annual report and is subject to change. Please see the annual report for further details regarding the turnover ratio. 6 Tax-equivalent yield is based on the maximum federal income tax at an effective rate of 35.00% and state tax rate of 9.30%. Other share classes will differ due to varying fund expenses. * For each fund with at least a 3-year history, Morningstar calculates a Morningstar Rating based on a Morningstar Risk-Adjusted Return that accounts for variation in a funds monthly performance (including effects of sales charges, loads and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category, the next 22.5%, 35%, 22.5% and the bottom 10% receive 5, 4, 3, 2 or 1 star(s), respectively. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) Past performance is no guarantee of future results.
97
QFG.indb 97
11/1/2012 11:18:06 AM
John Hancock
A JHTFX
B TSHTX
C JCTFX
AVERAGE ANNUAL TOTAL RETURNS1 Without maximum sales charge Class A Barclays Capital Municipal Bond Index2 Morningstar High Yield Muni Average With 4.5% maximum sales charge Class A 1-year 12.12% 8.32% 13.64% 7.07% 3-year 7.25% 5.99% 8.01% 5.61% 5-year 5.62% 6.06% 3.90% 4.64% 10-year 5.39% 5.03% 4.64% 4.90% Life of Fund (12/31/93) 5.01% 5.61% 4.72% 4.75%
Q3
I 2012
HHH
The Funds total annual operating expense ratio as of the current prospectus is 0.87%. Expenses for other share classes will vary, which will affect returns. Performance figures assume that all distributions are reinvested. Performance quoted without sales charges would be reduced if the sales charges were applied. For performance data current to the most recent month end, contact your financial professional or call John Hancock Funds at 1-800-225-5291. The performance data contained within this material represents past performance, which does not guarantee future results. The return and principal value of an investment will fluctuate, so that shares, when redeemed, may be worth more or less than the original cost. The Funds current performance may be higher or lower and is subject to substantial changes. GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT1 Class A without sales charge 12/31/93 to 9/30/12
The Fund was rated 1 stars, 3 stars and 3 stars for the 3-, 5- and 10-year periods, respectively. Load-waived rating
HHHH
The Fund was rated 3 stars, 4 stars and 4 stars for the 3-, 5- and 10-year periods, respectively. Overall rating is based on 3-, 5- and 10-year Morningstar Risk-Adjusted Returns and accounts for variation in a funds monthly performance. The Fund was rated out of 142, 126 and 91 funds for the 3-, 5- and 10-year periods, respectively. The overall rating includes effects of sales charges, loads and redemption fees, while the load-waived rating does not. Load-waived ratings for Class A shares should only be considered by investors who are not subject to a front-end sales charge. Contact your financial professional to determine whether you are eligible to purchase the Class A share without paying the front load. Other share classes may be rated differently.* YEAR-BY-YEAR TOTAL RETURNS1 (%) CLASS A WITHOUT SALES CHARGE 2002 5.07
1 2
2003 5.47
2004 7.38
2005 6.85
2006 6.79
2007 0.78
2008 15.34
2009 25.17
2010 2.60
2011 10.17
98
Performance results reflect any expense reductions. Without these reductions, performance would have been less favorable. The Barclays Capital Municipal Bond Index is an unmanaged index representative of the tax-exempt bond market. It is not possible to invest directly in an index.
QFG.indb 98
11/1/2012 11:18:08 AM
Q3
I 2012
PORTFOLIO MANAGEMENT Investment Adviser John Hancock Advisers, LLC Subadviser John Hancock Asset Management Portfolio Managers Dianne Sales, CFA Portfolio Manager Joined Fund team in 1995 Began career in 1984 Frank Lucibella, CFA Portfolio Manager Rejoined Fund team in 2005 Began career in 1982 KEY STATISTICS Class A Inception Total net assets (mil) Portfolio turnover5 Number of holdings FIXED INCOME CHARACTERISTICS 12/31/93 $306.0 21% 177
Tax rates are based on the highest and second-highest maximum federal income tax rates.
Fixed-income investments are subject to interest-rate and credit risk; their value will normally decline as interest rates rise or if the creditor is unable or unwilling to make principal or interest payments. Investments in higher-yielding, lower-rated securities involve additional risks as these securities include a higher risk of default and loss of principal. Municipal bond prices can decline due to fiscal mismanagement or tax shortfalls, or if related projects become unprofitable. The use of hedging and derivatives transactions could produce disproportionate gains or losses and may increase volatility and costs. The distribution rate and income amounts reflect past amounts distributed and may not be indicative of future rates or income amounts. The distribution amounts paid by the Fund generally depend on the amount of income and/or dividends received by the Funds investments. The Fund may not be able to pay distributions or may have to reduce its distribution level if the amount of such income and/or dividends received from its investment declines. Therefore, distribution rates and income amounts can change at any time. For additional information on these and other risk considerations, please see the Funds prospectus.
A funds 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 Funds at 1-800-225-5291 or visit our Web site at www.jhfunds.com. Please read the prospectus carefully before investing or sending money.
Visit us at www.jhfunds.com
3 Listed holdings do not represent all of the holdings in the Fund. Holdings are subject to change at any time and are not recommendations to buy or sell any security. Characteristics are expressed as a percentage of net assets and exclude cash and cash equivalents. 4 A portion of the income may be subject to state and/or local taxes. Capital gains are fully taxable. Some investors may be subject to the federal Alternative Minimum Tax (AMT). 5 The portfolio turnover is from the Funds most current annual report and is subject to change. Please see the annual report for further details regarding the turnover ratio. 6 The Funds unsubsidized yield as of 9/30/12 was 2.86%. Unsubsidized yields reflect what the yield would have been without the effect of reimbursements and waivers. 7 Tax-equivalent yield is based on the maximum federal income tax at an effective rate of 35.00%. Other share classes will differ due to varying fund expenses. * For each fund with at least a 3-year history, Morningstar calculates a Morningstar Rating based on a Morningstar Risk-Adjusted Return that accounts for variation in a funds monthly performance (including effects of sales charges, loads and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category, the next 22.5%, 35%, 22.5% and the bottom 10% receive 5, 4, 3, 2 or 1 star(s), respectively. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) Past performance is no guarantee of future results.
99
QFG.indb 99
11/1/2012 11:18:11 AM
John Hancock
A JHMAX
B JHMBX
C JMACX
AVERAGE ANNUAL TOTAL RETURNS1 Without maximum sales charge Class A Barclays Capital Municipal Bond Index2 Morningstar Muni Massachusetts Average With 4.5% maximum sales charge Class A 1-year 8.51% 8.32% 8.60% 3.60% 3-year 5.57% 5.99% 5.53% 3.96% 5-year 5.44% 6.06% 5.06% 4.47% 10-year 4.66% 5.03% 4.28% 4.18% Life of Fund (9/3/87) 6.48% 6.65% 5.79% 6.29%
Q3
I 2012
HHH
The Funds total operating expense ratio as of the current prospectus is 0.85%. Expenses for other share classes will vary, which will affect returns. Performance figures assume that all distributions are reinvested. Performance quoted without sales charges would be reduced if the sales charges were applied. For performance data current to the most recent month end, contact your financial professional or call John Hancock Funds at 1-800-225-5291. The performance data contained within this material represents past performance, which does not guarantee future results. The return and principal value of an investment will fluctuate, so that shares, when redeemed, may be worth more or less than the original cost. The Funds current performance may be higher or lower and is subject to substantial changes. GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT1 Class A without sales charge 9/3/87 to 9/30/12
The Fund was rated 2 stars, 3 stars and 3 stars for the 3-, 5- and 10-year periods, respectively. Load-waived rating
HHHH
The Fund was rated 4 stars for the 3-, 5- and 10-year periods. Overall rating is based on 3-, 5- and 10-year Morningstar Risk-Adjusted Returns and accounts for variation in a funds monthly performance. The Fund was rated out of 70, 67 and 56 funds for the 3-, 5- and 10-year periods, respectively. The overall rating includes effects of sales charges, loads and redemption fees, while the load-waived rating does not. Load-waived ratings for Class A shares should only be considered by investors who are not subject to a front-end sales charge. Contact your financial professional to determine whether you are eligible to purchase the Class A share without paying the front load. Other share classes may be rated differently*. YEAR-BY-YEAR TOTAL RETURNS1 (%) CLASS A WITHOUT SALES CHARGE 2002 9.56
1 2
2003 6.18
2004 4.28
2005 3.43
2006 3.99
2007 2.57
2008 4.58
2009 13.87
2010 0.22
2011 11.71
100
Performance results reflect any expense reductions. Without these reductions, performance would have been less favorable. The Barclays Capital Municipal Bond Index is an unmanaged index representative of the tax-exempt bond market. It is not possible to invest directly in an index.
QFG.indb 100
11/1/2012 11:18:12 AM
Q3
I 2012
PORTFOLIO MANAGEMENT Investment Adviser John Hancock Advisers, LLC Subadviser John Hancock Asset Management Portfolio Managers Dianne Sales, CFA Portfolio Manager Joined Fund team in 1995 Began career in 1984 Frank Lucibella, CFA Portfolio Manager Rejoined Fund team in 2005 Began career in 1982 KEY STATISTICS Class A Inception Total net assets (mil) Portfolio turnover5 Number of holdings FIXED INCOME CHARACTERISTICS 9/3/87 $130.2 11% 91
Tax rates are based on the highest maximum combined federal and Massachusetts state income tax rates.
Fixed-income investments are subject to interest-rate and credit risk; their value will normally decline as interest rates rise or if the creditor is unable or unwilling to make principal or interest payments. Investments in higher-yielding, lower-rated securities involve additional risks as these securities include a higher risk of default and loss of principal. Municipal bond prices can decline due to fiscal mismanagement or tax shortfalls, or if related projects become unprofitable. If the Fund invests heavily in any one state or region, performance could be disproportionately affected by factors particular to that state or region. The use of hedging and derivatives transactions could produce disproportionate gains or losses and may increase volatility and costs. The distribution rate and income amounts reflect past amounts distributed and may not be indicative of future rates or income amounts. The distribution amounts paid by the Fund generally depend on the amount of income and/or dividends received by the Funds investments. The Fund may not be able to pay distributions or may have to reduce its distribution level if the amount of such income and/or dividends received from its investment decline. Therefore, distribution rates and income amounts can change at any time. For additional information on these and other risk considerations, please see the Funds prospectus.
A funds 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 Funds at 1-800-225-5291 or visit our Web site at www.jhfunds.com. Please read the prospectus carefully before investing or sending money.
Visit us at www.jhfunds.com
3 Listed holdings do not represent all of the holdings in the Fund. Holdings are subject to change at any time and are not recommendations to buy or sell any security. Characteristics are expressed as a percentage of net assets and exclude cash and cash equivalents. 4 A portion of the income may be subject to state and/or local taxes. Capital gains are fully taxable. Some investors may be subject to the federal Alternative Minimum Tax (AMT). 5 The portfolio turnover is from the Funds most current annual report and is subject to change. Please see the annual report for further details regarding the turnover ratio. 6 The Funds unsubsidized yield as of 9/30/12 was 1.97%. Unsubsidized yields reflect what the yield would have been without the effect of reimbursements and waivers. 7 Tax-equivalent yield is based on the maximum federal income tax at an effective rate of 35.00% and state tax rate of 5.30%. Other share classes will differ due to varying fund expenses. * For each fund with at least a 3-year history, Morningstar calculates a Morningstar Rating based on a Morningstar Risk-Adjusted Return that accounts for variation in a funds monthly performance (including effects of sales charges, loads and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category, the next 22.5%, 35%, 22.5% and the bottom 10% receive 5, 4, 3, 2 or 1 star(s), respectively. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) Past performance is no guarantee of future results.
101
QFG.indb 101
11/1/2012 11:18:15 AM
John Hancock
A JHNYX
B JNTRX
C JNYCX
AVERAGE ANNUAL TOTAL RETURNS1 Without maximum sales charge Class A Barclays Capital Municipal Bond Index2 Morningstar Muni New York Long Average With 4.5% maximum sales charge Class A 1-year 9.84% 8.32% 9.36% 4.88% 3-year 6.25% 5.99% 5.84% 4.65% 5-year 5.60% 6.06% 5.21% 4.64% 10-year 4.50% 5.03% 4.40% 4.02% Life of Fund (9/13/87) 6.42% 6.65% 6.19% 6.23%
Q3
I 2012
HHH
The Funds total annual operating expense ratio as of the current prospectus is 0.91%. Expenses for other share classes will vary, which will affect returns. Performance figures assume that all distributions are reinvested. Performance quoted without sales charges would be reduced if the sales charges were applied. For performance data current to the most recent month end, contact your financial professional or call John Hancock Funds at 1-800-225-5291. The performance data contained within this material represents past performance, which does not guarantee future results. The return and principal value of an investment will fluctuate, so that shares, when redeemed, may be worth more or less than the original cost. The Funds current performance may be higher or lower and is subject to substantial changes. GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT1 Class A without sales charge 9/13/87 to 9/30/12
The Fund was rated 2 stars, 3 stars and 3 stars for the 3-, 5- and 10-year periods, respectively. Load-waived rating
HHHH
The Fund was rated 4 stars for the 3-, 5- and 10-year periods. Overall rating is based on 3-, 5- and 10-year Morningstar Risk-Adjusted Returns and accounts for variation in a funds monthly performance. The Fund was rated out of 101, 93 and 88 funds for the 3-, 5- and 10-year periods, respectively. The overall rating includes effects of sales charges, loads and redemption fees, while the load-waived rating does not. Load-waived ratings for Class A shares should only be considered by investors who are not subject to a front-end sales charge. Contact your financial professional to determine whether you are eligible to purchase the Class A share without paying the front load. Other share classes may be rated differently.* YEAR-BY-YEAR TOTAL RETURNS1 (%) CLASS A WITHOUT SALES CHARGE 2002 8.60
1 2
2003 4.39
2004 4.43
2005 3.16
2006 4.68
2007 1.40
2008 4.01
2009 13.18
2010 1.89
2011 9.54
102
Performance results reflect any expense reductions. Without these reductions, performance would have been less favorable. The Barclays Capital Municipal Bond Index is an unmanaged index representative of the tax-exempt bond market. It is not possible to invest directly in an index.
QFG.indb 102
11/1/2012 11:18:16 AM
Q3
I 2012
PORTFOLIO MANAGEMENT Investment Adviser John Hancock Advisers, LLC Subadviser John Hancock Asset Management Portfolio Managers Dianne Sales, CFA Portfolio Manager Joined Fund team in 1995 Began career in 1984 Frank Lucibella, CFA Portfolio Manager Rejoined Fund team in 2005 Began career in 1982 KEY STATISTICS Class A Inception Total net assets (mil) Portfolio turnover5 Number of holdings FIXED INCOME CHARACTERISTICS 9/13/87 $66.2 16% 53
Tax rates are based on the highest maximum combined federal and New York state income tax rates.
Fixed-income investments are subject to interest-rate and credit risk; their value will normally decline as interest rates rise or if the creditor is unable or unwilling to make principal or interest payments. Investments in higher-yielding, lower-rated securities involve additional risks as these securities include a higher risk of default and loss of principal. Municipal bond prices can decline due to fiscal mismanagement or tax shortfalls, or if related projects become unprofitable. If the Fund invests heavily in any one state or region, performance could be disproportionately affected by factors particular to that state or region. The use of hedging and derivatives transactions could produce disproportionate gains or losses and may increase volatility and costs. The distribution rate and income amounts reflect past amounts distributed and may not be indicative of future rates or income amounts. The distribution amounts paid by the Fund generally depend on the amount of income and/or dividends received by the Funds investments. The Fund may not be able to pay distributions or may have to reduce its distribution level if the amount of such income and/or dividends received from its investment declines. Therefore, distribution rates and income amounts can change at any time. For additional information on these and other risk considerations, please see the Funds prospectus.
A funds 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 Funds at 1-800-225-5291 or visit our Web site at www.jhfunds.com. Please read the prospectus carefully before investing or sending money.
Visit us at www.jhfunds.com
3 Listed holdings do not represent all of the holdings in the Fund. Holdings are subject to change at any time and are not recommendations to buy or sell any security. Characteristics are expressed as a percentage of net assets and exclude cash and cash equivalents. 4 A portion of the income may be subject to state and/or local taxes. Capital gains are fully taxable. Some investors may be subject to the federal Alternative Minimum Tax (AMT). 5 The portfolio turnover is from the Funds most current annual report and is subject to change. Please see the annual report for further details regarding the turnover ratio. 6 The Funds unsubsidized yield as of 9/30/12 was 1.94%. Unsubsidized yields reflect what the yield would have been without the effect of reimbursements and waivers. 7 Tax-equivalent yield is based on the maximum federal income tax at an effective rate of 35.00% and state tax rate of 8.82%. Other share classes will differ due to varying fund expenses. * For each fund with at least a 3-year history, Morningstar calculates a Morningstar Rating based on a Morningstar Risk-Adjusted Return that accounts for variation in a funds monthly performance (including effects of sales charges, loads and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category, the next 22.5%, 35%, 22.5% and the bottom 10% receive 5, 4, 3, 2 or 1 star(s), respectively. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) Past performance is no guarantee of future results.
103
QFG.indb 103
11/1/2012 11:18:19 AM
John Hancock
A TAMBX
B TSMBX
C TBMBX
AVERAGE ANNUAL TOTAL RETURNS1 Without maximum sales charge Class A Barclays Capital Municipal Bond Index2 Morningstar Muni National Long Average With 4.5% maximum sales charge Class A 1-year 9.24% 8.32% 10.29% 4.35% 3-year 5.93% 5.99% 6.11% 4.34% 5-year 5.54% 6.06% 5.20% 4.58% 10-year 4.68% 5.03% 4.35% 4.20% Life of Fund (1/5/90) 6.06% 6.39% 5.63% 5.84%
Q3
I 2012
HHH
The Funds total annual operating expense ratio as of the current prospectus is 0.85%. Expenses for other share classes will vary, which will affect returns. Performance figures assume that all distributions are reinvested. Performance quoted without sales charges would be reduced if the sales charges were applied. For performance data current to the most recent month end, contact your financial professional or call John Hancock Funds at 1-800-225-5291. The performance data contained within this material represents past performance, which does not guarantee future results. The return and principal value of an investment will fluctuate, so that shares, when redeemed, may be worth more or less than the original cost. The Funds current performance may be higher or lower and is subject to substantial changes. GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT1 Class A without sales charge 1/5/90 to 9/30/12
The Fund was rated 2 stars, 3 stars and 3 stars for the 3-, 5- and 10-year periods, respectively. Load-waived rating
HHHH
The Fund was rated 3 stars, 4 stars and 4 stars for the 3-, 5- and 10-year periods, respectively. Overall rating is based on 3-, 5- and 10-year Morningstar Risk-Adjusted Returns and accounts for variation in a funds monthly performance. The Fund was rated out of 219, 205 and 175 funds for the 3-, 5- and 10-year periods, respectively. The overall rating includes effects of sales charges, loads and redemption fees, while the load-waived rating does not. Load-waived ratings for Class A shares should only be considered by investors who are not subject to a front-end sales charge. Contact your financial professional to determine whether you are eligible to purchase the Class A share without paying the front load. Other share classes may be rated differently.* YEAR-BY-YEAR TOTAL RETURNS1 (%) CLASS A WITHOUT SALES CHARGE 2002 7.17
1 2
2003 4.75
2004 4.91
2005 3.89
2006 5.16
2007 1.76
2008 5.34
2009 14.34
2010 1.20
2011 10.22
104
Performance results reflect any expense reductions. Without these reductions, performance would have been less favorable. The Barclays Capital Municipal Bond Index is an unmanaged index representative of the tax-exempt bond market. It is not possible to invest directly in an index.
QFG.indb 104
11/1/2012 11:18:20 AM
Q3
I 2012
PORTFOLIO MANAGEMENT Investment Adviser John Hancock Advisers, LLC Subadviser John Hancock Asset Management Portfolio Managers Dianne Sales, CFA Portfolio Manager Joined Fund team in 1995 Began career in 1984 Frank Lucibella, CFA Portfolio Manager Rejoined Fund team in 2005 Began career in 1982 KEY STATISTICS Class A Inception Total net assets (mil) Portfolio turnover5 Number of holdings FIXED INCOME CHARACTERISTICS 1/5/90 $508.0 25% 138
Tax rates are based on the highest and second-highest maximum federal income tax rates.
Fixed-income investments are subject to interest-rate and credit risk; their value will normally decline as interest rates rise or if the creditor is unable or unwilling to make principal or interest payments. Investments in higher-yielding, lower-rated securities involve additional risks as these securities include a higher risk of default and loss of principal. Municipal bond prices can decline due to fiscal mismanagement or tax shortfalls, or if related projects become unprofitable. The use of hedging and derivatives transactions could produce disproportionate gains or losses and may increase volatility and costs. The distribution rate and income amounts reflect past amounts distributed and may not be indicative of future rates or income amounts. The distribution amounts paid by the Fund generally depend on the amount of income and/or dividends received by the Funds investments. The Fund may not be able to pay distributions or may have to reduce its distribution level if the amount of such income and/or dividends received from its investment declines. Therefore, distribution rates and income amounts can change at any time. For additional information on these and other risk considerations, please see the Funds prospectus.
A funds 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 Funds at 1-800-225-5291 or visit our Web site at www.jhfunds.com. Please read the prospectus carefully before investing or sending money.
Visit us at www.jhfunds.com
3 Listed holdings do not represent all of the holdings in the Fund. Holdings are subject to change at any time and are not recommendations to buy or sell any security. Characteristics are expressed as a percentage of net assets and exclude cash and cash equivalents. 4 A portion of the income may be subject to state and/or local taxes. Capital gains are fully taxable. Some investors may be subject to the federal Alternative Minimum Tax (AMT). 5 The portfolio turnover is from the Funds most current annual report and is subject to change. Please see the annual report for further details regarding the turnover ratio. 6 The Funds unsubsidized yield as of 9/30/12 was 2.16%. Unsubsidized yields reflect what the yield would have been without the effect of reimbursements and waivers. 7 Tax-equivalent yield is based on the maximum federal income tax at an effective rate of 35.00%. Other share classes will differ due to varying fund expenses. * For each fund with at least a 3-year history, Morningstar calculates a Morningstar Rating based on a Morningstar Risk-Adjusted Return that accounts for variation in a funds monthly performance (including effects of sales charges, loads and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category, the next 22.5%, 35%, 22.5% and the bottom 10% receive 5, 4, 3, 2 or 1 star(s), respectively. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) Past performance is no guarantee of future results.
105
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11/1/2012 11:18:24 AM
Symbols
Morningstar category DOMESTIC EQUITY Balanced Fund Classic Value Fund Disciplined Value Fund Disciplined Value Mid Cap Fund Fundamental All Cap Core Fund Fundamental Large Cap Core Fund Fundamental Large Cap Value Fund Large Cap Equity Fund Mid Cap Equity Fund Rainier Growth Fund Small Cap Equity Fund Small Cap Intrinsic Value Fund Small Company Fund Sovereign Investors Fund Strategic Growth Fund U.S. Equity Fund U.S. Global Leaders Growth Fund ASSET ALLOCATION Lifestyle Aggressive Portfolio Lifestyle Balanced Portfolio Lifestyle Conservative Portfolio Lifestyle Growth Portfolio Lifestyle Moderate Portfolio GLOBAL/INTERNATIONAL EQUITY Emerging Markets Fund Global Opportunities Fund Global Shareholder Yield Fund Greater China Opportunities Fund International Allocation Portfolio International Core Fund International Growth Fund International Value Equity Fund ALTERNATIVE/SPECIALTY Alternative Asset Allocation Fund Currency Strategies Fund Multialternative Currency JAAAX JCUAX N/A JAACX N/A Diversified Emerging Mkts World Stock World Stock China Region Foreign Large Blend Foreign Large Value Foreign Large Growth Foreign Large Value JEVAX JGPAX JGYAX JCOAX JAIAX GIDEX GOIGX JIEAX N/A JGPBX JGYBX JCOBX JAIBX GOCBX GONBX N/A N/A JGPCX JGYCX JCOCX JAICX GOCCX GONCX N/A Large Blend Moderate Allocation Conservative Allocation Aggressive Allocation Conservative Allocation JALAX JALBX JALRX JALGX JALMX JBLAX JBLBX JBLCX JBLGX JBLMX JCLAX JCLBX JCLCX JCLGX JCLMX Moderate Allocation Large Value Large Value Mid-Cap Value Large Growth Large Growth Large Value Large Growth Mid-Cap Growth Large Growth Small Growth Small Blend Small Blend Large Blend Large Growth Large Blend Large Growth SVBAX PZFVX JVLAX JVMAX JFCAX JFLAX JFVAX TAGRX JCEAX RGROX SPVAX JHIAX JCSAX SOVIX JSGAX JHUAX USGLX SVBBX JCVBX JVLBX N/A N/A N/A N/A TSGWX JCEBX RGRBX SPVBX JCIBX N/A SOVBX N/A N/A USLBX JHLVX JCECX RGRCX SPVCX JSICX N/A SOVCX N/A N/A USLCX SVBCX JCVCX JVLCX JVMCX Class A Class B Class C
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Morningstar category ALTERNATIVE/SPECIALTY Financial Industries Fund Global Absolute Return Strategies Fund Natural Resources Fund Regional Bank Fund Technical Opportunities Fund INCOME Bond Fund Core High Yield Fund Floating Rate Income Fund Government Income Fund High Yield Fund Income Fund Investment Grade Bond Fund Strategic Income Opportunities Fund TAX-FREE INCOME California Tax-Free Income Fund High Yield Municipal Bond Fund Massachusetts Tax-Free Income Fund New York Tax-Free Income Fund Tax-Free Bond Fund Muni California Long High Yield Muni Muni Massachusetts Muni New York Long Muni National Long TACAX JHTFX JHMAX JHNYX TAMBX TSCAX TSHTX JHMBX JNTRX TSMBX Intermediate-Term Bond High Yield Bond Bank Loan Intermediate Government High Yield Bond Multisector Bond Intermediate-Term Bond Multisector Bond JHNBX JYIAX JFIAX JHGIX JHHBX JHFIX TAUSX JIPAX JFIBX TSGIX TSHYX STIBX TSUSX N/A JFIGX JHBBX Financial Multialternative Natural Resources Financial World Stock FIDAX JHAAX JNRAX FRBAX JTCAX FIDBX N/A N/A FRBFX N/A Class A Class B
I 2012
Class C
JHCBX
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Combination privileges may apply to reduce sales charges on purchases of Class A shares made at one time. Our Statements of Additional Information (SAI) describe the various circumstances in which the combination privilege is permitted, including among family members, within a single trust account and among members of certain groups.
1 Define family members eligible for aggregation and age of children, if included. Purchases will be combined to reduce Class A sales charges if made by an individual, his/her spouse or their children under the age of 21, living in the same household. 2 Do you have a system to link accounts or is the breakpoint assigned on a per-trade basis? Yes, most non-dealer controlled accounts established directly with the Fund via application are linked for accumulation based on the same Tax ID number and the same client name. On accounts established via Networking/NSCC, the dealer must pass the appropriate breakpoint in the order data. To receive a reduced sales charge, the investor must tell his/her financial adviser or Signature Services, at the time of the purchase, about any other John Hancock mutual funds held by that investor, his/her spouse or their children under the age of 21, living in the same household. 3 Is there a form required to link accounts or can it be done via phone? Accounts can be linked via phone. There is also a section on our account application to indicate accounts that should be linked for combination privileges.
RIGHTS OF ACCUMULATION
1 List funds or share classes that are eligible for ROA. John Hancock includes holdings in all share classes to reduce Class A sales charges. However, John Hancock money market and cash reserve funds will only be eligible if the investor has previously paid a sales charge on the amount of those shares. 2 Are shares purchased at net asset value (NAV) counted towards ROA? Yes. 3 Do money market purchases and/or positions count towards ROA? John Hancock money market and cash reserve funds will only be eligible for the accumulation privilege if the investor has previously paid a sales charge on the amount of those shares. 4 Does your fund have the ability to assign/code breakpoints at the fund account level or must it be sent with each trade? Yes, non-dealer controlled accounts established directly with the Fund via application are linked for breakpoints. On accounts established via Networking/NSCC, the dealer must pass the appropriate breakpoint in the order data. To receive a reduced sales charge, the investor must tell his/her financial adviser or Signature Services, at the time of the purchase, about any other John Hancock mutual funds held by that investor, his/her spouse and their children under the age of 21, living in the same household. Refer to the sales charge schedule on page 107.
LETTER/STATEMENT OF INTENT
1 Which funds or share classes are eligible for LOI reduced sales charges? John Hancock offers LOI reduced sales charges on Class A share investments made over a 13-month period of time. Assets in all share classes are eligible to be used to fulfill the LOI commitment. If the LOI is not fulfilled within the 13-month period, applicable sales charges will apply. Investors in most retirement plans may opt to make the necessary investments under the LOI over a 48-month period (see SAI for details). 2 Are shares purchased at NAV counted towards LOI accumulation? Yes. 3 Do money market purchases and/or positions count towards LOI accumulations? John Hancock money market and cash reserve funds will only be eligible for the accumulation privilege if the investor has previously paid a sales charge on the amount of those shares. 4 Can an individuals non-qualified and qualified retirement plan investments be combined to satisfy an LOI? Yes, but note that since retirement plans are often held in omnibus accounts, an investor wishing to count retirement plan holdings toward a Class A purchase must notify his/her financial adviser or Signature Services of these holdings. 5 If shares previously exist, do reinvested dividends and capital gains count towards meeting an LOI? Yes. 6 Can you backdate an LOI? Yes. 7 How far back can an LOI be backdated? 90 days; however, purchases made 90 days prior to the signing of an LOI count toward fulfillment, but the previous sales charges paid will not be adjusted.
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NET ASSET VALUE REINVESTMENT PRIVILEGE/REINSTATEMENT
I 2012
1 Are NAV reinvestments offered? Yes. The NAV reinvestment privilege is offered on repurchases, including dividend and capital gains received in cash, made within 120 days of the redemption date. 2 Which funds are eligible for NAV reinvestment privilege? All funds are eligible for the NAV reinvestment privilege. 3 Must NAV buyback be done for the same client and/or Tax ID and/or BIN? Yes, the reinvestment must be made for the same client into the same fund and account number that the funds came out of. 4 Must NAV reinvestments be done into same CUSIP or can it be any fund within the John Hancock Funds family? Reinvestments must be made for the same CUSIP and account number that the funds came out of. 5 Are there any special guidelines for transfer or buyback? If a shareholder sells shares of a John Hancock fund, they may reinvest some or all of the proceeds back into the same share class of the same John Hancock fund and account from which it was removed, within 120 days without a sales charge, as long as John Hancock Signature Services and the financial adviser are notified before the funds are reinvested. If a contingent deferred sales charge (CDSC) was paid when shares were sold, the account will be credited with the amount of the CDSC.
Additional information regarding John Hancock Funds pricing and cumulative discounts can be found in the relevant fund prospectus and SAI. Please visit www.jhfunds.com or call 1-800-225-5291, Monday through Friday, between 8:00 a.m. and 7:00 p.m., Eastern Time.
SALES CHARGES AND DEALER COMMISSIONS All Equity and Specialty Funds Sales Charge 5.00% 4.50% 3.50% 2.50% 2.00% 0% 0% 0% Dealer Commissions1 4.25% 3.75% 2.85% 2.10% 1.60% 1.00% 0.50% 0.25% Income Funds
(except Floating Rate Income & Tax-Free Income Funds)
CLASS A SHARES
Floating Rate Income Fund Sales Charge 3.00% 2.50% 2.00% 1.50% 0% 0% 0% Dealer Commissions1 2.50% 2.00% 1.50% 1.25% 1.00% 0.50% 0.25%
Tax-Free Income Funds Sales Charge 4.50% 3.75% 3.00% 2.00% 0% 0% 0% Dealer Commissions1 4.00% 3.25% 2.50% 1.75% 1.00% 0.50% 0.25%
Investment Amount Less than $50,000 $50,000 to $99,999 Less than $100,000 $100,000 to $249,999 $250,000 to $499,999 $500,000 to $999,999 $1,000,000 to $4,999,9992 Next $5 million to $9,999,9993 Amounts of $10,000,000 and over4 Annual 12b-1 Trail Commission:
Year
CDSC
Investment Amount Less than $1,000,000 $1,000,000 and over Year Year 1 After Year 1
Year 1 5.00% Year 2 4.00% Year 3 3.00% Year 4 3.00% Year 5 2.00% Year 6 1.00% Year 7 0% Automatic conversion to Class A shares after eight years Annual 12b-1 Trail Commission: 0.25% (paid on monthly basis effective at 13th month)
1 Includes 0.25% service fee 2 Subject to one-year contingent deferred sales charge of 1.00% 3 Subject to one-year contingent deferred sales charge of 0.50%
Annual 12b-1 Trail Commission: 1.00% (paid on monthly basis effective at 13th month)
4 Subject to one-year contingent deferred sales charge of 0.25% 5 Maximum investment of $99,999.99 with any single purchase 6 Maximum investment of $999,999.99 with any single purchase
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Performance numbers are at net asset value and do not reflect the payment of any sales charges. For complete performance information, please refer to the individual fund highlight sheets in this booklet.
10Year Cumulative TR as of 9/30/12 5Year Cumulative TR as of 9/30/12 YTD Cumulative TR as of 9/30/12
2002
2003
2004
2005
2006
2007
2008
2009
2010
18.19% 18.71% 18.71% 6.37% 6.66%1 6.66%1 20.11% 20.94% 20.94% 14.89% 37.83% 38.31% 38.31% 26.16% 27.13% 27.13% 44.33% 44.67% 44.67% 12.63%
18.21% 17.42% 17.42% 36.25% 35.36% 35.36% 25.19% 23.90% 23.90% 36.13% 23.29% 22.42% 22.42% 16.33%1 16.03%1 16.03%1 33.88% 32.15% 32.15% 48.91% 47.77% 47.77% 33.16%
6.78% 6.05% 6.04% 14.28% 13.44% 13.44% 15.35% 14.17% 14.17% 20.30% 4.14% 3.36% 3.36% 12.06% 11.56% 11.56% 11.60% 10.15% 10.15% 12.86% 12.05% 12.05% 19.26%
13.36% 12.59% 12.59% 8.81% 7.99% 7.99% 10.13% 8.99% 8.99% 9.76% 16.26% 15.36% 15.36% 16.85% 16.31% 16.31% 11.61% 10.16% 10.16% 8.23% 7.46% 7.46% 17.28%1 16.78%1 16.78%1 4.58%
24.30% 23.36% 23.36% 35.80% 34.85% 34.88% 26.05% 24.81% 24.81% 40.53% 33.73% 32.69% 32.71% 48.07% 47.10% 46.98% 31.68% 30.62% 30.72% 47.98% 46.76% 46.80% 67.87% 66.15% 66.50% 23.88%
11.15% 10.33% 10.41% 16.06% 15.09% 15.17% 12.78% 11.75% 11.75% 22.84% 14.20% 13.30% 13.35%
3.23% 3.89% 3.88% 6.83% 7.51% 7.51% 0.00% 0.79% 0.71% 0.32% 8.30%1 5.46%1 5.68%1 9.03% 9.71% 9.71%
2011
16.54% 14.20% 46.55% 15.68% 14.80% 46.97% 15.64% 14.80% 47.00% 19.02% 17.80% 17.80% 16.56% 20.22% 19.32% 19.32% 5.29% 4.72% 4.72% 7.24% 5.85% 5.85% 6.84% 6.13% 6.13% 28.99% 28.20% 28.20% 20.39% 3.89% 33.46% 2.81% 34.17% 2.81% 34.17% 4.91% 32.63%
11.65% 24.16% 11.05% 26.93% 11.05% 26.90% 18.09% 17.43% 17.41% 13.22% 18.46% 17.36% 17.93% 18.74% 18.10% 18.05%
A Shares B Shares C Shares A Shares C Shares A Shares C Shares A Shares C Shares A Shares C Shares
LARGE CAP EQUITY FUND
33.77% 36.82% 32.78% 37.25% 32.78% 37.29% 15.70% 44.60% 14.81% 45.01% 14.97% 44.95% 20.57% 43.89% 19.01% 44.45% 19.01% 44.49% 1.43% 44.33% 0.67% 44.72% 0.67% 44.67% 9.91% 58.50% 9.13% 58.76% 9.13% 58.76% 0.35% 28.63%
21.31% 12.24% 20.56% 12.92% 20.52% 12.90% 16.59% 15.78% 15.73% 33.07% 32.20% 32.14% 4.45% 5.22% 5.23% 7.63% 8.25% 8.25%
9.30% 8.13% 8.75% 11.27% 8.74% 11.19% 16.33% 15.64% 15.65% 14.10% 13.51% 13.50%
3.69% 120.25% 7.67% 97.81% 7.72% 97.72% 5.31% 142.55% 1.56% 128.96% 1.62% 126.02%
A Shares
5.00% 132.40%
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YTD Cumulative TR as of 9/30/12
I 2012
10Year Cumulative TR as of 9/30/12
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
6.44%1 6.37%1 6.38%1 4.31%1 4.24%1 4.24%1 1.91%1 1.83%1 1.76%1 5.28%1 5.21%1 5.21%1 3.17%1 3.02%1 3.10%1
14.96% 14.12% 14.20% 12.16% 11.30% 11.46% 7.81% 6.97% 6.97% 13.02% 12.24% 12.20% 9.80% 8.97% 8.96%
8.00% 42.40% 7.23% 42.84% 7.21% 42.79% 5.90% 31.63% 5.02% 32.22% 5.10% 32.19% 4.89% 15.41% 4.11% 16.04% 4.22% 16.03% 6.96% 36.89% 6.14% 37.35% 6.19% 37.33% 4.78% 23.88% 3.97% 24.56% 4.05% 24.44%
36.04% 35.09% 35.09% 32.87% 31.99% 32.08% 22.53% 21.46% 21.58% 34.54% 33.53% 33.63% 27.88% 26.91% 27.00%
15.50% 14.61% 14.61% 13.13% 12.23% 12.34% 9.96% 9.16% 9.28% 14.77% 13.81% 13.93% 11.85% 11.05% 11.15%
7.09% 7.83% 7.76% 2.62% 3.30% 3.29% 2.75% 2.01% 1.95% 5.30% 5.91% 5.90% 0.73% 0.08% 0.05%
13.10% 7.54% 12.53% 10.90% 12.53% 10.77% 11.58% 10.92% 10.92% 8.57% 7.99% 8.02% 12.63% 12.00% 12.01% 10.12% 9.54% 9.56% 10.07% 5.88% 6.17% 28.02% 23.20% 23.56% 1.83% 1.90% 1.69% 20.14% 15.47% 15.94%
A Shares C Shares
GLOBAL OPPORTUNITIES FUND
18.87%1 51.62% 33.05% 50.91% 32.46% 51.29% 32.46% 51.29% 7.23%1 30.49% 6.68%1 31.07% 6.68%1 30.97%
23.00% 25.42% 30.77% 31.89% 29.72% 32.42% 29.87% 32.34% 11.82% 11.15% 11.15% 5.33% 4.46% 4.46%
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5.48%
36.57%
22.56%
70.34% 69.15% 69.15% 0.10%1 0.10%1 0.10%1 24.14% 23.36% 23.39% 21.31%1 20.98%1 20.88%1 25.65%
48.11% 52.87% 47.10% 53.19% 46.99% 53.20% 9.60% 45.17% 8.61% 45.58% 8.71% 45.53% 10.97% 39.21% 10.11% 39.65% 10.08% 39.65% 11.83% 37.48% 10.91% 37.97% 10.92% 37.96% 6.30% 43.63%
58.38% 57.09% 57.14% 37.62% 36.91% 36.65% 18.20% 17.35% 17.40% 21.08% 20.25% 20.20% 38.29%
11.51% 22.91% 10.70% 23.47% 10.65% 23.49% 13.29% 14.61% 12.41% 15.20% 12.55% 15.18% 9.11% 10.52% 8.36% 11.14% 8.32% 11.14% 13.23% 12.31% 12.33% 8.61% 9.24% 9.35%
10.13% 31.69% 9.38% 34.24% 9.45% 34.25% 9.22% 21.97% 8.68% 24.67% 8.52% 24.67% 7.20% 27.20% 6.60% 29.74% 6.64% 29.73% 13.52% 12.57% 12.87% 15.82% 12.96% 15.88%
14.40% 13.29%
41.01% 40.00% 25.81% 24.97% 24.97% 55.61% 6.96% 6.22% 6.30% 8.30%1
A Shares
FINANCIAL INDUSTRIES FUND
39.02% 50.49%
14.35% 20.45% 14.95% 11.46% 14.11% 12.12% 14.10% 12.09% 4.43% 16.50%
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2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
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Q3
YTD Cumulative TR as of 9/30/12
I 2012
10Year Cumulative TR as of 9/30/12
7.36% 6.61% 6.61% 10.26% 9.45% 9.45% 0.44% 0.32% 0.32% 7.30% 6.55% 6.55% 9.61% 8.80% 8.79%
7.62% 6.87% 6.87% 1.09% 0.33% 0.33% 39.91% 38.90% 38.90% 16.88% 16.07% 16.07% 4.62% 3.84% 3.84%
4.53% 3.80% 3.80% 2.70% 1.93% 1.94% 9.00% 8.20% 8.19% 8.75% 7.99% 7.99% 3.60% 2.82% 2.82%
2.38% 1.66% 1.66% 1.73% 0.97% 0.97% 3.59% 2.83% 2.81% 2.28% 1.57% 1.57% 1.59% 0.83% 0.83%
4.45% 3.73% 3.73% 3.70% 2.93% 2.93% 20.25% 19.37% 19.36% 4.48% 3.79% 3.75% 4.37% 3.59% 3.59% 2.06%1 1.10%1
28.43% 27.64% 27.55% 25.73%1 41.26% 40.03% 40.25% 4.73% 3.95% 3.96% 69.57% 68.37% 68.37% 29.46% 28.57% 28.57% 19.16% 18.28% 18.29% 30.20% 28.40%
12.84% 11.98% 12.06% 20.82% 9.59% 8.88% 8.78% 5.84% 4.94% 5.06%
4.86% 4.20% 4.20% 6.74% 1.82% 1.05% 1.20% 6.22% 5.54% 5.43%
9.61% 9.04% 8.97% 12.73% 7.55% 6.95% 6.94% 4.50% 3.85% 3.85% 18.00% 17.34% 17.35% 8.97% 8.40% 8.40% 7.73% 7.13% 7.13% 8.94% 8.37%
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
1.21% 48.45% 1.95% 48.84% 1.95% 48.84% 5.57% 10.85% 4.83% 11.48% 4.84% 11.48% 5.33% 4.55% 4.55% 6.63% 7.32% 7.32%
24.85% 13.15% 24.25% 14.03% 23.63% 13.58% 14.91% 14.11% 14.12% 10.08% 9.26% 9.26% 14.96% 14.11% 1.68% 0.98% 0.98% 5.51% 4.72% 4.73% 1.53% 0.82%
6.51% 122.07% 2.61% 109.95% 2.63% 106.21% 48.70% 119.05% 43.60% 107.26% 43.60% 104.30% 42.57% 37.35% 37.36% 51.37% 43.82% 72.63% 62.63% 60.22%
1.38% 11.87% 0.52% 12.62% 0.52% 12.62% 0.78% 15.34% 1.52% 15.98% 1.52% 15.98% 2.57% 1.85% 1.85% 4.58% 5.24% 5.24%
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TAX-FREE INCOME FUNDS (PERCENTAGE RETURN) NEW YORK TAX-FREE INCOME FUND
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2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
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YTD Cumulative TR as of 9/30/12
I 2012
10Year Cumulative TR as of 9/30/12
15.01%
NASDAQ COMPOSITE INDEX
31.26% 10.25%
MSCI EAFE INDEX
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
15.94%
S&P 500 INDEX
22.10% Dow Jones Industrial Average Barclays Capital U.S. Aggregate Index MSCI EAFE Index Nasdaq Composite Index Standard & Poors 500 Index
A price-weighted average of 30 blue-chip stocks that are generally the leaders in their industry. It is the oldest and most widely quoted of all the market indicators. An index comprised of government securities, mortgage-backed securities, asset-backed securities and corporate securities to simulate the universe of bonds in the market. A large-capitalization international stock index that measures market performance in Europe, Australasia and the Far East. A market value-weighted index that measures all domestic and non-U.S.-based securities, more than 4,700 companies, listed on the Nasdaq Stock Market. An unmanaged index of 500 stocks commonly used as a broad measure of stock performance.
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Notes
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1-800-225-5291
TDD
1-800-554-6713
EASI-Line
1-800-338-8080
Literature
1-800-892-9552
1-800-843-0090
Current net asset values Portfolio strategies Fund performance data Fund prices and yields
1-800-257-3336
Client account balances/information Fund exchanges Phone redemptions Change dividend/capital gain options
Sales support
1-800-225-6020
Sales ideas Portfolio strategies Fund performance data Fund prices and yields
Please note that certain funds contained within this book may not be approved for sale by the firm of all financial professionals.
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SIPC
RM0HS 10/12
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